WLL - Earnings call transcript Q1 2021 | Chord Energy Corporation

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good morning. My name is Ian, and I'll be your conference facilitator today. Welcome to Whiting Petroleum's First Quarter 2021 Conference Call. The call will be limited to 45 minutes including Q&A. All lines have been placed on mute to prevent any background noise. there a remarks, period. and speakers' the will question be answer After instructions] the Relations Whiting's turn will Manager. over [Operator now Day, call I to Brandon Investors Please proceed.

Brandon Day

availability is Relations Thank CEO, Day, Whiting's Lynn the is XX, and Securities are cause from first the forward-looking Q&A environmental are others Litigation commodity Reform joining incorporated Henderson; everyone. forward-looking Also of technology, session XXXX. include which be Good for risks you, to discuss This Peterson. results ended obligation Ian. questions us to within available materially to Whiting's prices, Stockton. We with in Jimmy Rimer; Those Thank Manager. answer statements Act. include subject by Commission, that to our could risks to your and our Whiting's relating that Private period today, Ann described statements COO, and Investor reference. competition, quarter forward-looking actual Jo during uncertainties you With for disclaim results currently anticipated. and Securities different morning Chip Exchange be today advised Brandon the meaning statements. those these March filings our VP to Commercial, any compliance, the CFO, the and questions, to update These be including regulatory midstream of will Please remarks me answers

whiting.com earnings information which in non-GAAP at section. this may definitions certain addition, The on financial found GAAP in be Relations found Investor our can we release, provide may our In reconciliations and the call. be website in relevant

at would questions. available the a everyone this that webcast to Peterson. turn replay to company's page open Following Lynn whiting.com. be the the we'll remind I'd time now prepared Petroleum, to call Mr. like over the the like Relations of will call for CEO audio Investor of Whiting the via remarks, I permitting,

Lynn Peterson

at We be remarks much quarter today. detailed achieved yesterday I planned you joining the everyone prepared work was thanks as pretty winter and progress the was our our North well year we field in it budgeting morning adverse late despite short constant working that our and Bringing each wanted and Good year. last followed the executed Brandon. can will our difficult the work during refer relatively planning for top by and and weather. process as went the return of that the us morning's Thanks for put This have our quarter to XX-Q the success through into expectations The staff team our for conditions across for to first our done caused the that very today. board. levels and One is Dakota their by thank were information. for production will acknowledged company winter of guidance our remainder sets year. up continued quarter

back industry increased As the look quickly it's as eight past significantly. months, how on prices have has I changed oil striking the

in this barrel that expect and conditions to Whiting crude for XXXX, per board. reset that Using in we change reflect the approximately conservative $XXX upon our the at are over quarter million emergence prices. put current the $XX for $XXX on $XX cash risen have of bunny. flow oil that been out million our $XXX price in obviously price oil, current for we generate approximately that to loss year outlook. million results in now full cash context EBITDAX flow free the mind of around of has million Keep company, XX% across range first to of a and numbers, execute the those some financial impact we per To Now hedging chose $XX To our reported project the we we're hedges trading approximate in the oil is after in free an now that required cap yield. choosing market this barrel, effect

of and expect hedge since zero free down XXXX environment have previous flow the to million the at quarter barrel, of emerging cash million settlements. of the $XX $XX With towards quarter debt. of from again, gone we in a exemplifies first flow $XXX quarter, effect free oil our its bankruptcy The the this RBL on XXXX balance outstanding of year. The generated has paying strong The first of per compared above cash price company in approximately asset generated prices the to net end clearly Whiting base.

GAAP compared as quarter, adjusted we compared a previous we per $X.XX million was hedging basis or or to to the had quarter. certain loss of in million for $XX loss million for instruments to price a relatively our primarily Looking per Adjusting previous quarter. share had compared net or results, but of during share closer for net to $XXX million or million production items, primarily of per per of consistent. changes the Notably EBITDAX million the the income a $XXX $X.XX $X.XX share, our the mark-to-market as due $X $XXX on share with $X.XX previous at financial quarter the $X.X

Turning to operations; back been it's industry in through drilling completing get and great activity. oil the to

a drilling more completion of first up a goal. started has XXXX. to As great you recall, first our The XXXX our in job while active maintaining a done we team back of brought safety unit rig returning February late in level in and operations,

operating of $X.XX quarter average for high representing guidance. of quarter Lease expenses oil, completed of the planned. which XXXX wells of first throughout the at wells onto in was expenditures gross on to barrels to is first $XX million our BOE XXXX. rate We XX% thousand wells as Field operated XX six million completion and operated capital for drilling during drilled We and $XX production, be the uncompleted quarter our drilled oil crude both XX.X were quarter corporate activity or in December flat ended year. our XX the Dakota equivalent completed line wells. that bring will this Currently exit of spent with our a the North production end Sanish Our and was XX per

Dakota As expected program quarter. to did for work the and winter well we over increased return maintenance our during North

want appreciation a working in express to operations manner. the I safe for challenging my always, conditions As to through the such team

to differentials; in our Turning have of been at oil the first guidance end quarter lower oil the range. differentials our

its not pipeline continuing encroachments, take Engineers As has EIS access the to on regards to while Dakota monitor policy of bindings. the operational Army action Corps the remained with enforcement to with ongoing electing

even we outcome, of full fall As we look average ahead price that and with estimate a differentials XXXX will the possibility pending range. district oil court term ruling, negative guidance within the await our the near

we DAPL as During the transportation secured scenario. price quarter and in and a arrangements additional that assurance protection shutdown crude serve sales flow

In value, believe are addition we regardless term longer to positioned the of we well outcome. supporting

minimum As a hedge coming forecasted gas. we XX% our PDP for have reminder, to those production, XXXX about We of and year. the exceeded under have our certain and of crude in currently levels oil XX% credit our natural approximately we're total facility of required levels have our

detailed the the price quarter appreciate XXX our drawn, We We use continued On resolving We facility. swaps cash have utilized our million group. free facility with $XXX Whiting's focused cash while and $XXX from unrestricted of lenders support reaffirmed cash declines. XX-Q. a credit Xth of combination consent ended by April million of generating at and our on the In remain in will mitigating of callers, the continued impact which unanimous million total strategy our was lending flow, in liquidity. liquidity facility revolving of The fixed in of we ensure RBL are million. paying the near-term down credit with to of to the continue and free production debt flow $XX accordance company

dividends any continues buybacks facility conscious stock year for and in environmentally including to Whiting. focus intend continue commitment later to board are this all to priority accretive and and us manner Last operating at least, making safe from returning an layout capital and management of to acquisitions. to our not a payments Currently restricted before September plans be back we evaluating our precludes options to and Our on our pursuing shareholders, credit all but we want

ESG our us of elements the have tied we including ESG best on human capital Further practices. compensation, focused capture. we have Directors is of an that to meeting Committee established in safety, oversight under management gas of efforts Towards Board and

sustainability up is to that We that reporting our establish progress. index Thank work and it transparent demonstrate towards open you. I'll that back to continue turn for questions. can frameworks to With Lynn it

Operator

proceed. from Deckelbaum David comes Please Cowen. of first Instructions] [Operator Our question

David Deckelbaum

Good morning, for and Lynn taking questions. my everyone. Thanks

Lynn Peterson

David. Hi,

David Deckelbaum

guys earning kind get the five M&A. by several of this strip today, at feedback that you types with most entire changed of you you What looking look years? value versus the vis-à-vis are bucket sort when the the you're The over Obviously enterprise sort looking going have the last company? opportunities we the what there's took you would should square you do secret going of obviously The deals you been as higher. out comment as of of of been sort you at probably How transaction year. or has recipe moving here and values sauce to in be be debt-free guys to mentioned end in your on

Lynn Peterson

think a David, maybe I and with things eight had some changed a have opportunities $XX, there whereas back Yes. think in so months improve to sheets, without dramatically. been seen ago were balance you've our there. sheet moved I several you environment and think when was debt mean, doubt people I somebody a have we to up, balance their combine clean prices able change $XX

continue acquisition will but some what only really to bring look not also for is transformational PDP type think we I production, of that inventory.

are Bakken this think more what most kind to continue part facing out so this is was one the all focus companies players on. our there. attention and And think, the mature I we the of of for I

is this that interesting, me. earlier when transaction was the that for what think announced through thing and I equity, we this think interesting to I I read was think was week

upside you over times the that of from the inventory, greater at a and was runway Q, oil, As significant price. compare you cash much see share X production oil current certainly barrels equivalent, implied can yet from have our price paid to X barrel of most our a to our times that you recent when see look market-cap, of from a we can in a

of through some work are here. these that we we're to mean, trying as opportunities things the look I at So,

David Deckelbaum

for you me offered the the telling picked-up and company phone So up sale?

Lynn Peterson

share. said said our that. I you can implied ups, right the No. see to Didn't

David Deckelbaum

to including, There's everything do you pretty now hood or testing concepts, secondary at right organically this point? like more either perhaps is at feel some the have you looking an we are pick-up arbitrage zones about more, guys for under well-fed commodity this you inventory the what bit mentioned I causing of you a kind magnifying Is glass environment, sure. guess, as well.

Lynn Peterson

think Well, you tier areas are in comment? things. doing maybe of not I jump one of quite our maybe with top looking like things those Chip, the me, one longer laterals here one in as want but the we're some of different our of things anchorage, to type we're two or some that

Chip Rimer

looking Lynn. especially does three-mile We're two your water. so miles. and out some Yes. how what some year. completions seeing at Butte additional We'll sand for our of areas this us Foreman tweaking see our turn in and That’s those that those versus in We're the and areas laterals typical of some

in a few things upside, especially these some tweaking hopefully we're get So prices. and

David Deckelbaum

answers of luck, Lynn. Thanks guys. for Best the

Lynn Peterson

Thanks, Yes. David.

again. think reiterate to I want we

here we've lot Our discussions. totally is focused Board had where a of

buyback be combination we with I Again, will exit a trying both year comply here. tuned you'll but or the dividend pleased. there think our stay we're to stock – look to a I'd think of say, be the just I as revolver,

David Deckelbaum

you, Thank Lynn.

Lynn Peterson

Thank you.

Operator

proceed. from of please comes Neal, Dingmann Neal question next Truist. Your

Neal Dingmann

inventory Knowing have could I'm through It about your you that as wondering, talk a walk including long ducts I'm inventory, sits like you just today? it current you the still again? runway. just could seems wondering,

Lynn Peterson

Yes.

three if Chip, think but conservative a you think to range, as area? presentation on I next we focused that? locations you it's back XXX kind I keep $XX anything the see show do the at website, $XX the Sanish we can look you look in at highly that years, at of add we level. over our again, to And want

Chip Rimer

best view area. and Quarter past. of well, correct. we've that's that. think stuff Sanish the from great We've are to those than there And areas at point looking results area, level that that's what the those very is our got area three area. know No, quarters in forward we'll getting We down three quarters, then on seeing are and to [indiscernible] that some also we that so probably those to that we're of of get seen focus continue Bakken the make better areas in

We're think tweaking before, areas the looking we before I our explored some at we And value great past. that I completions. of so in regret some some those out three-mile, said have of of like we're

Neal Dingmann

that forward, you Sanish I Great What going or Are details, mentioned brought some and of guess obviously going co-development Chip Lynn, was saying up kind for chip? follow-up. that. besides I a just my you lot don’t zones more you forward of and other know you either Bakken doing, have

So or you'd is be about we're today future the that? co-development doing in more thinking

Lynn Peterson

I mean, more Bakken chasing we're it's – of majority and now. our that's that right

Neal Dingmann

could the last today, on North? just Lynn one any take and Okay. up And in service one if yet costs I inflation

Lynn Peterson

the about much the to second talked down. been see bay to I right this. we've if at some of half we think starting We're pressures. We've look to But them year, hold able pretty

surprised wouldn't you know. I you a think I see X% see over can be time, X% to to and increase

Jimmy Henderson

really I side. may and locked quarters has done lot like providers. done, operations We've pretty upside folks, to the strategic stay said, our the Lynn seal team on first our three contracts pressure our of to a back appreciate constant, in allow prices chain through or Yes, supply what service they've partnership

a little fuel on bit seeing side. You're

We've You're It a digit. but locked on little on I you're Lynn. seeing will single bit side. bit right, be a steel labor, steel the the our think little in

Lynn Peterson

these been through try I but to think doing thought never But this you're clearly. spread, team's were pretty mean, the when we've built-in. that to budgeting, I perfect a I we through on we things, lot I of actually mean, actually think has think our this

have go down we'll big think don't year the I as any So surprises we here.

Neal Dingmann

guys. Thanks

Lynn Peterson

Neal. Thanks,

Operator

Parks And Tuohy question comes our next from of Noel Please Brothers. proceed.

Noel Parks

Good morning.

Lynn Peterson

Noel. morning, Good

Jimmy Henderson

Noel. Good morning,

Noel Parks

course, that – you half kind guess sort to look has – and smaller at and your and of running offer still if basin parts basin lot smaller the more, early operator what match. developed empty, deal of a – whole Sanish the to there unevenness out is being guess you're it's seems forth. you an with wanted half glass bit just full that room activity of talk think be seems And of the like at parts scale could some just It so I area. a you their about get like little on of I there. in it's And been I just at, basin the might glass, with could out a able thoughts left, just look like a maybe be revisited as not advantage it maturing your drilling from inventory more other not that vintage there might a you a consolidator early or different

Lynn Peterson

companies, inventories at remaining say, a I basin, of look the would majors. the are as of the in Yes, you the the bigger lot hands

that's our pace of the what growth, were over as think years industry, XX the everybody think driven for I activity back of last wanted. companies

a I different where took think, So was drilling lot majors, pace. by there independents the a of the

and over I can the We These there see remaining We we I inventory. time. a today don't knee want we we're of guess do, where what things but lot that's aware. patient means. to So it. think sit change know any when jerk have a by be here look And doing to we we

areas we're pushing off I where just find really those inventory. some peel and keep some of we here try got in to good to forward And think can shape. we

So…

Noel Parks

I am sorry. And just to follow up,

Lynn Peterson

regard? just any I'm have No, you going Chip, in got thoughts other ask to that

Chip Rimer

No, I right. think you're

spun-on. you're think I right,

Noel Parks

equation. midstream the of a sort kind And, issues, with part explain federal and discussion pipeline of sort of – include that's the midstream assets. consider investment and I the different up the – further just into We the to of mix. the well, versus on consolidate your uncertainty guess, is off the in it But or consider spinning trying to spectrum introduced of

thoughts do do the where – you days Just into to midstream in hands play does where about you think And your these be for consolidation? that best the would say? the operations

Lynn Peterson

I in at look good shape. we when basin, think infrastructure, think I the the pretty we're

set out it to of stuff on side plants some think continue to you'll midstream. it. that operators gas do the stayed side E&P have like and and of be consolidation We of I ourselves We've think some that the see consolidation of up evaluate that to it's I any have additional through operate. we'll whole But industry and thoughts Ann, continue midstream, going go you the that upstream whether or here. our anything? do on that to in some it's hearing Jo field or you're always

Jo Ann Stockton

on our plans to as of going that. a it basis Hearing plants alluded differently, you mean, what on I and it think situational as evaluate top the are for we're I relates anything example, layered to, specific to

Lynn Peterson

Jimmy, any comments? you got

Jimmy Henderson

initial your – a this. the that's empty matured about basin half half glass think in or question I No, full is like

that as production levels I you good that positive the could infrastructure you especially basin is say of We're place, a think really currently do have that's one experiencing. in at things good in shape.

before see As gathering, talked And work level put the ground – service how partners we're the to levels that to out good shape. on this we've part, but got generally, turns of providers with where in based most we've with in that has production our I that and a basin, good in continue about down – for the got and there. pretty up we side Jo operations, Ann on you'll we service are DAPL think in some good

Noel Parks

Great. lot for Thanks the a perspective.

Lynn Peterson

you. thank Well,

Operator

I'll Thank no floor Thank you. the you, questions ladies to remarks. and for turn back further management gentlemen. this at There time. closing are

Lynn Peterson

in morning soon Petroleum. thank meeting virtual to and attending Thank we events. those everyone for in forward over coming and joining the in All Whiting We'll look this you seeing like be person. conferences look quarter some to many you. us right. Again, forward interest I'd of to And your

your very a for you day. great much Have time. thank So

Brandon Day	Investors Relations Manager
Lynn Peterson	President and Chief Executive Officer
Jimmy Henderson	Executive Vice President-Finance and Chief Financial Officer
Chip Rimer	Executive Vice President-Operations and Chief Operating Officer
Jo Ann Stockton	Vice President-Commercial
David Deckelbaum	Cowen
Neal Dingmann	Truist
Noel Parks	Tuohy Brothers

Chord Energy (WLLBW) 6 May 212021 Q1 Earnings call transcript