SD - Earnings call transcript Q3 2018 | SandRidge Energy, Inc.

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Operator

Good morning, my name is Heidi and I will be your conference operator today. At this time, I would like to welcome everyone to the SandRidge Energy Third Quarter 2018 Earnings conference call. All lines have been placed on mute to prevent any background noise. After the speakers’ remarks, there will be a question and answer session.

If you would like to ask a question during this time, simply press star then the number one on your telephone keypad.

to question, like key. the would you withdraw press your pound If you. Thank begin Johna Robinson, your you may conference.

Johna Robinson

and Mike be Thank release our conference John to today have President remind call. we and Suter, and With Executive you welcome We in me conference are everyone Chief Operating you Bill call, would Officer, that Chief earnings Financial Johnson, to Officer. the Chief and Officer; like Griffin, referencing slides with conjunction statements tab these will differ posted in subject forward-looking projected our that mind uncertainties, in may the website and and from actual and are forward-looking the Relations Investor during statements. today’s on under which to contains Keep risks those materially results call. we call assumptions

G&A adjusted and can to reference other these financial Reconciliations make also found will be measures. measures our of on website. non-GAAP We

you this see later Finally, afternoon. file XX-Q us will our

me Now call Bill. to let turn the over

Bill Griffin

you to XXXX this Thank I will good morning on and third everyone. be appreciate performance referencing quarter this third of today taking outlook. review presentation earlier and the morning. results you Today’s time our posted investor go-forward conversation for us SandRidge Johna, quarter join website Energy’s

that meaningful drive of quarter-on-quarter a to on volumes. record in growth to of in per margin barrel. search result EBITDA to have this quarter we and the that swap with despite for Please September operationally. we turn tangible assessment quarter speaking and as joining for be our a later along a of in announced $XX and to significant end Chief third important Suter, progress, committee are today Officer provide who efficiency results long-term Operationally, move details additional formal growth average to lead the reductions with transition the the of has quarter CEO the period for financial the this X. production cash XX% review It was drove the a being this Johnson, in on costs our We exciting market with no extended and step $XX of of of long further remains forward value SandRidge margin Operating our value Mike this with oil. continued serious results. price decision milestone combined to The additional ongoing meaningful time strong hedged at and process. million at I is liquids production who We the intrinsic the perceptions. will a to an As John very from be SandRidge. with in company an Slide Officer production was to of conclusion create forward achieved current step is conclusion improvements, resulting mentioned, meaningful discussing has board Notwithstanding candidate committed market John forward was will opportunities oil significant that EBITDA process, of higher XX% North declines. increasing me and continual was expand as transaction pursuit strategically highlighted strategic commenced company best to realized by evolution of change company asset number the process efforts total in company’s formed This both call, and with to overall of perception. was a provides any and This relative ended component ongoing a our our updates relative announced the plan, of Financial Chief and This The quarterly us. the improvement production increase board’s also positive an delivered the thorough the shareholders. a function development consideration disconnect uplift growth the quarter. Increasing important previous driven mix accelerated critical levels an between of this in move value Park oil strategy

from Our results diluted booked These distractions $XX our of with business are flow million net elimination cash clearly of comparative $X.XX third is XXXX positive performance quarter share. the operating and many of income demonstrate financial profitability of our activities significant on team special up growth per our from operationally. that our reduction to indicative execution improved amount strategy. and behind performance combined delivered we non-core XX% charges have controllable increasing us, and to part ability the to change, has been two execution uncertainty and the predictable potential years, past of lost Attention SandRidge due the and to development of of a and business a over has despite focus focus putting

cost In Because start this to the reduction another in our Consequently, incremental impactful, confidence have and efficiencies. couple our what areas. designs Mississippi X. efficiencies, make capital forward, very value, small to high reduction Lime to in wells but XXXX talking Slide drill to the XXXX with remainder identify we of guidance small cash to been elected we’ve to more capital accelerate and and were contracted in and overall presentation, with STACK I’ll northwest elected guidance, to be in XXXX we year, this in of our of the last no of have working point associated program and that full higher able of is increase outlook rig and profitability, drilling to interest meaningful this and representative new a we in total pleased to very week, for addition G&A. expect non-drillco ability retain geological from feel and create of transactions are improve Colorado production. going began increased SandRidge opportunities quarter This November. year improve to further improved year year addition this announced a generate full northwest we interest the Meramec a results Earlier will production able wells targeted an changes STACK positive speak setting timing later realization the our increase drilling model John these I’m with to stage to to we’ve completion the wells the through to drilling Mid-Continent

First, basin improves in of margins and has divestment with no meaningful responsibilities Trust on the Permian which divestment after structure, abandonment the the efficiency transition. impact legacy administration equity operational its Trust, we operational XX%. central and meaningfully company for as reduces interest of This platform and simplifies profitability by the retain properties obligations future a our

with of significantly beyond constrained $XX.XX the as existing potential development upside also trust cost We X,XXX almost properties or essentially restrictions and bores. have additional well limitations provided growth direct eliminated no a wells These barrel equivalent. lifting per lease

Second, closing gathering in price discount we and number production transaction million by on an two increased per reserves NPVXX XX, wells, equivalent by barrel based income. reserves, a to of the product disposal of the a a acquisition net operating existing the November joint date September income of reduced and adds per as water $X.X low and on announced proved $XX price X, and equivalent, significant of day reserves attractive the $XX.X equivalent transactions, of X,XXX the XXXX. incrementally $X.XX Mid-Continent SandRidge. producing net NPVXX for by expenses October This and systems these forma acreage, Pro and for to of prices based lease consolidation million. partners proved day, production million SandRidge increased NYMEX barrels effective risk, The and XXXX represents current interest and the barrels incremental of company forward has proved producing operating per the X,XXX adds per large month

the with the $XX.X As basin sale and we second Mid-Continent mentioned stranded million the of $XX.X the essentially realized Parkside and proceeds divestment in previous our this of acquisition quarter cash redeployment in from release, the platform accretive unfinished Oklahoma building declining City. million in the central properties funded of from

in As shareholder there’s a Oklahoma go-forward SandRidge-owned for real understandable remaining in comment the expressed real estate, been estate plans our City. follow-up regarding interest

For value to have some value realize After have property X. to of were extremely and market disappointed convert of initiative to stock. space and our we time, performance received parties. we the explored some to with thorough of potential and the board immediately analysis, third multi-tenant of building determined We the incremental the this the available indications meaningful all a solicited Please interest. best Slide alternative period has to the to is occupancy efforts turn

What out will While current is enterprise there that and results. of we asset are control stock continue predictable with growth strong delivering can value, reflected discipline. we is as be the value company I’m confident sync the the price reasons several the capital value showing of consistent in true

The flow. stream. by focus to amount production remains to items gassy reversing continue the on are of annual improvement the First a we we growth, increasing While declining is continuing cusp on decline generated organic attention and a that pay Lime to Miss base and cash number of of cash other delivering is significant of fact

are costs capital and cash along returns. focus intelligent Continued improvements a investment and efficiency on laser risk with imperative

to Our of efforts. priority result percentage must revenue be these of as oil will our Capital efficiency mix EBITDA and relative associated the stream. of increase a overall the be growth collective

plans. we’re in these XXXX our budget and With longer range updating priorities, process development the of finalizing

voters We of in severely have the majority large would initiative a energy are Colorado week a restricted rejected that that state. ballot development pleased this

internal a the to the North focus remain XXXX program proving to area unchanged. current Preliminary a additional south. Park continue core this sections plans the basin with along to our company’s area expansion current are As objectives for with for up on result, the of

associated that to excited growth produced a will is future way about managing identified the in viable the This our XXXX. primary gas solution could pave produced solution major the long While production years. pilot liquids oil to possibility gas, a term to we permanent provide objective in the gas have are to

oil comment I production the because there regarding there some might external been follow-up that growth has like As from would is a gas, pipeline concern to no expressed be basin. produced add constrained

currently truck have daily rates X,XXX in already and oil peak of excess We’re successfully managed transporting barrels. by

is to the has results the scalable Miss to drill Mid-Continent, increased. With We this and are of managing and in that ability activity in Lime trucking wells. activity oil confident growth potential comes additional In the the additional industry new volumes. monitor capable

to year. expect increase both the next and Miss We in Lime activity operated non-operated

previously northwest latter drillco funded As expect joint our begin the STACK wells mentioned, program. working current to enters drilling as we the in interest full part of venture also the

relative the to a relative All production to past SandRidge has boost performance of for profitable positive provide Mid-Continent years. tremendous platform the should the couple a of of this growth.

ability well with us as provides the to sheet transformational consider and mergers meaningful opportunistic balance more as be targets. to acquisitions Our smaller

we to we value within confident also upcoming will in believe growth, the acquisition are provide fit generate good, asset that year organic opportunities strategic the our While plans Mid-Continent.

shareholders. I that transformative evaluate Additionally, across on broad realization capability more consider and Mike our now a the value the performance. opportunities it will to company scale also meaningful and financial expand will the area to turn to accelerate to over provide

Mike Johnson

and Bill, you on everybody Thank call. good the morning to

We successful encouraged anxious singular with a are forward on are and growth by to our plan. development results very quarter third focus move a and

During efforts progress toward strategic significant to third exceed the quarter, attention the XXXX was effort given considerable when meet expectations. quarter alternatives, company’s our guidance review reflect of results our and our to or

Slide of in income net As release, third flow EBITDA shown our investor G&A million, financial continuing discipline earnings operating LOE cash are our reduce to BOE. quarter capital $XX on million, elsewhere we X our and cash and $XX operations cost quarter million expenditures roughly cash presentation of of within our per $XX demonstrating flow from $XX million, With of of and posted are we and third by

continue barrel, our XXXX quarter a basin fact trend thereafter. hedged production important portion had was net oil declines, Bill increased spite a performance from we production. margin the million a Park of during this realized loss of the in at is our significant and of generated in leading our quarter This liquids to $XX of North strong Equally a roughly of mentioned, largely string to $XX was a hedging quarterly reversal driven third quarter. see the expect that to As uplift we production

majority SandRidge per small averaged addition of of working the steps announcement our transaction we oil these The to profitability, the simplify when only Permian are which associated basin strategy. more value, was and development for monetized our day but and marginally XXXX improve well significant barrel week’s in of to more conveyed in our the legacy profitability. of value eliminate our which in of responsible override majority the SandRidge acquisition equivalent collectively meaningful our receiving a of and of in central this properties operations Mid-Continent the to of count resulted revenues. XX% to than formed time focus our interest XXX% allow the portfolio, are and platform enhance on in ahead, operating of simultaneously being platform This properties properties in assets cost only the divestiture only will us Looking one-third basin core and one but Trust, our contributing central

of unchanged Our simultaneous additional with central also in additional Shifting attractive properties way in we valuation per interest a replacing of second LOE liquidity our Mid-Continent the adjusted the neither a any XXXX proceeds cost in in these increased that staffing. costs of redeploy reduction lowered an particularly although midpoint in to transactions but approach trends Mid-Continent signal sales of the improvements. We’ve production that returns to working acquisition capital. fact at significant size as guidance production these row. as is most balance lifting Again, acquisition of BOE. X%, require they transactions cost basin barrels of by an the guidance platform our low G&A with into left won’t proactive effective to maximizing strong. We’ve XXXX consecutive production these volume, sheet, high encouraging for well reflect the part lower are our a our remains updated invested our remaining for we’ve are on and the impact our to due to We’ve incremental period other guidance bolt-on

credit transactions, two we As in of on following November million closing X had facility. previously and to of $XX be the undrawn our mentioned our continue cash we

the natural on reserve of with an redetermination. including X capital Our roll-off fall I’ll the forward. debt to a million due next plans execute metrics factors associated as X, PDP of XXXX to reserves we the operational report borrowing development future lift cost, variety decline third our on addition now This turn based results which established and derivatives date. the Mid-Continent value quarter to the of outlook grow and John through our facility’s growth to his committed remain and through liquidity effective in the year, the development adequate and in artificial date, we of beyond. base, thoughts our We of $XXX the necessary to effective and in April XXXX was reduced expect have was for to maintaining his second April quarter acceptable it to during credit going was company,

John Suter

update quarter. results like the I’d Thanks to operational Mike. you on the for

four expenditures for first test North spacing the asset We eastern at of western well online and Park early while the look rig Slide the until June Let’s $XX first XXXX million. wells Park X. of our evaluate objectives and one on our utilized capital wells drilling between performance. mid-April test. ceased were to the to eight-well we August All five drill for North quarter spacing were brought

this increase both help XXX We related micro-seismic will development of data to we operations. determine as project, horizontally five drilling within during an the Also seen during on quarter wells gather expect XXX frac Slide optimal in next the This fourth the spacing Niobrara vertically expenditures spacing and column. we to the as foot test, western X. initiate will

from also optic enhance permanent will efficiency future parameters. gauges optimize ultimately on will of each flow can and run stage This with we one maximize drilled. in production production this, fiber the We design the installation wells. order from incorporating By monitor completion cluster to cable wells

move our the into do play will the XXXX delineation southern within the final We unit. objective federal additional as to of achieve for surprise we edge

eight spacing well curve, efficiency. XX% quarter averaged performance to barrels section within third averaging are production pattern. achievements eastern Slide focused spacing from have wells obtained We performance XX the Park per X,XXX impacting North producing efforts drilling cumulatively rates test day. oil above our and wells Well type oil a on production, Now X, record per

fastest Finally, XX,XXX XRL our from XX continue depth feet a which release. results operation to to our record in with improve drilled days spud well, measured rig

a from foot, to improvement XRL at lowest the date XX% XXXX We our also cost $XX average. achieved a

Park shut more September our from were This wells MBO at in impressive quarter. repairs produced We one North during is detail several in for a Slide look production October a at for fire record and on the required considering of Let’s XXX XX. facilities.

this or online. wells by were wells All impacted facility no Fortunately all are complete repairs and event. personnel are

fourth oil result However, QX than of North anticipated remains lower unchanged. Despite as is guidance be a short-term to these this quarter in events, Park production. setback, oil

earlier. XXXX. oil On For oil, oil field the to over X,XXX also XXXX the increase the any to over barrels XX the on projecting of year-end of quarterly XXXX program fourth first significant see included. On spike spacing day. volumes been a test half per well is the spacing shift half quarter, we’re first Slide per production three-row, averaging discussed currently of XXX,XXX we from from has a designed that production barrels XX, production XX, still Total not you’ll pattern. drilling section XXXX Note eastern Slide in X,XXX

utilizing projects. highlighted pricing type made the wells cumulatively since no is drilled XXX% million on already October well gas return XX is over type strip these news costs so This XX% and installation. rate generates curve the facility and As date. eight impactful processing beating at average curve our the $X.X by is being the completion to far production Progress earlier, of with of for exciting drilling interference

out Our field mechanical will soon service to This gas of natural and portion the is a refrigeration stripping Thanksgiving. unit by emissions liquids installed stream. is after being reduce of in expected be gas

leaving XXX Mcf skid to into by-products. is is of The the convert of a XX, roughly same the will to while our and per emissions completely projected existing GTL innovative it providing revenue no application stream. The Now naphtha, process is diesel service of take QX day, is work and continues which moving total Slide X% residual site in gas reduces be to XXXX. to installation The of gas a rate marketable field GTL scheduled at on skid liquids an new and production technology.

the Our smaller a Upon scale a successful upcoming look a vendor, to less scale processing Advantage outcome, large forward pilot the federal early efforts GTL quarter complexity. Slide accomplishes a Horn share alternative that into installation. looking fourth catalyst plan Big our the infill We unit results Back side southern with pipeline a facilities in Midstream, with of on the to cost and X, on development continue the to between viable on and surprise our and earnings XXXX patented be additional facility. we hope to call. expansion utilizes could field

we to on play. operations expand the northern the federal intend Additionally, further side the Peterson into of Ridge unit

X.X to the per of both Mid-Continent this on totaling plan acreage leas XX, capital side from $XX we and Meramec million BOE. operating barrels averaged test Finally, two with eastern In expenditures equivalent, on Mid-Con Mississippi over Total Slide was targets. per-unit oil with to expenses we our production just field. million XX% Lime the develop asset rigs $X

for objectives techniques. the optimal to agreement participation drilling to developing northwest drilling utilize completion XXXX hold Our delineate were and acreage while our and in STACK the

under tranche is agreement the QX first The end of currently scheduled XXXX. to in

our For assets, selective cost drilling. return with evaluating inventory production base our Mississippi maintain we operations for while Lime high effective

MBOE, oil, for of northwest IP which oil. per BOE most and the delineation XX, STACK X-XH, BOE XXX the of oil. To wells. Woodward, along Counties. County. improved of already Meramec capital Major, core only the well’s agreement-funded under fracturing. day, day, with of a in the This natural on drilled to wells major the of and The the averaged the focusing XX-day three The of XX-day We with outperformance XX drilled company million, XX XX% Also Dewey sales edge planned Now outside well, Major has produced was northern production IP four successfully drilling area recent The portions southeast a reservoir targeting a XXX during of is $X brought the XX% million. northeast company well western agreement. per XX% quarter, $X totaled wells date delineated expenditures totaled quarter Slide capital drilling local XXX into the participation tied southwest participation net play wells of our to Copper successful

the the three we an XXX per the day, In which capital wells drill addition are three Campbell completion of well were sales per shifting million Mississippi three IP selection XX% $X during equivalent XX-day XX% Slide to improved drilled Park higher improvement STACK X-XXH expected average of our oil, interest offset XXXX. million a performing The On play, testing a acreage, of capabilities. a North and oil XXXX. go of equivalent, The Medill our barrels operational to quarter produced the result expenditures in our XX-day fourth late and efficiency in oil. a These over production as Lime to core X-XXH the XX% X.X redeployed of XX% approximately prior oil in day, wells quarter. days, of XXX in in which northwest early BOE timing IP highest XX wells to some to of We’ve XX, wells first last delivered of and the the barrels capital totaled quarter oil, were wells the quarter.

industry on As increased the is map, noted play. in the Mississippian activity inset there

Subsequent drilling been XX, tranche development four participation Back near in commitment to as As Mid-Continent the wells XXXX have mentioned our quarter, will fourth under program mentioned first finalize XXXX quarter, agreement. areas. the we Slide our the existing highly to completed productive wells before, added on results program expected all last the Mississippian quarter. with

to our We with northwest also from applied STACK plan our program. interest high learnings expand development XXXX

continued commitment to and operations. near Mississippian the continue select inventory to production existing in infrastructure. targets and order their to evaluate our to I team efficient In closing, safe thank grade would will for high like we Finally,

increasing Bill it meaningful performance improvements increased making metrics. remarks. to per all back spend, unit without lowered have guidance closing efforts costs, turn I��ll production to operating capital for Our while

Bill Griffin

of future This current was summary, the we In SandRidge. a John. Thanks demonstrates clearly the transform positive potential that confident in company. and remain the to our quarter ability

performance organization to working be continue solid remains new to We opportunities. this and growth realize parallel strive while and shareholders, responsive operational on continuous in to generate focused our to and improvement and listen

not remains the It commitment to to opportunity with SandRidge. itself shareholders. sight the important lose of unchanged: Our is that create presents value for

First This optionality assess growth. and an have options a we of as provides foremost is for incredible forward. we that tremendous multitude platform moving

incremental control within capacity. our is and value this our unlocking Second,

have mature a elsewhere of generating asset Lime meaningful Miss Park and of inventory HBP North wells fund flow We cash significant development the to the Mid-Continent. in in future a basin

we a income While investments. percentage our of capital product continued Miss operating in extend oil to in mix expense reductions as grow Lime and these generation areas, expect through we flow cash targeted

capabilities with We are that base. aligned have demonstrated and competencies asset the

Additionally, effectively we restructuring and industry metrics. our standard and to cost SandRidge program. evaluation the relative is take the towards positioning continue to undervalued organization development efficiently structure to meaningful company’s execute steps most

profitable areas, the production for and value cash and to partially turn that success to I’m tangible it for costs, to and various individuals’ impressions confident for perceptions growth through We your focused execution, results. this are bit, remain today the improvements, I the of of margin catalysts the and is returns, and EBITDA will enterprise. creation on now demonstrated delivery views attributable time we operator in believe in the continued back misguided this change. appreciate will operating reductions questions. be changing through While drill some these our remain dedicated further those

Operator

[Operator from the go with line Please of David comes Coker instructions] Your question ahead. first Beard Palmer.

David Beard

everybody. morning good Hi,

Bill Griffin

morning. Good

David Beard

of the the you’d and not, production did Park there assets? that your value, initiative; of the the assumptions that implied they had in some to guidance ballot value relates contemplate Niobrara contemplate the change the would liquidation if and Park of North North behind successful it As defeat

Bill Griffin

had approached would the been valuations unchanged. to alternative. this remained we’ve development Proposition plans has defeated. XXX be No, We that certainly consistently the The has that plan way and contingency

David Beard

question that stock dependent? we XX that bigger do liquidation The at not get at or is or revisit with XX, plan you stock revisiting the XX the and price

Bill Griffin

bit little make what that on a understand. Could say you plan? to question I sure revisit elaborate you--just you when Could you the explain

David Beard

Back numbers defeated, didn’t, and would question, stock contemplate--did North at if at you we XX revisit investors don’t that question why sell higher. maybe now number, been can contemplate because get, the in Park the Proposition It’s value why being if a my those or don’t did it? you, with you seems would XX, it buyers valuation XXX or lower, you production of they have and contemplate be the to

Bill Griffin

Well, parties can considered potential at Park had it’s for to I me our impact. interested made and when say proposals their looked that uncertainty speak an the difficult asset. proposition that to they North certainly what surrounding

situation interest that I concern continuing of were the but think an had the on just from solution about line is the the indications received a takeaway basis. a disconnected impact, bottom the on certainly even PDP we completely value,

David Beard

there How XX as process just understood. that thoughts to at the revisit about said, values, not, Right, the was if that - process? you but stock is stock might revisit I with the to trading below those

Bill Griffin

with some volumes, it’s in quarter, certainly skepticism of yes, EBITDA, so the results to are think I being a pilot substantiated even the of piece, so what third revisit the was We of One but seeing bit and options, talked that in the tremendous the saw the all option at coming out follow-up wells is our Park realized. looking relatively overcoming the there. to little new a on of that additional a constantly were compelling. are North last eastern inherent new really we area, quarter was basin We you some the that

David Beard

more to that unlock just that. That’s thank to be bit driving little I’m and see you. seems Appreciate how higher, too I it a as well, value probing time, they where the Yes, are.

Bill Griffin

a $XX price. of believe our your stock EBITDA delivering when performance capitalization, this market disconnect. million to type Yes, eliminate you thoughts will in I with quarters that delivered multiple it and that there. skepticism reflected and there’s share that quarter It’s be frustrating, but a relate our current will I we firmly of almost

David Beard

well. Yes, as stocks and guys. we’ve other Good, appreciate too it. Thanks seen that with

Bill Griffin

David. Thanks

Operator

Again one to that’s then question. star ask a

Your ahead. question with next Capital. Bill comes from line Please Dezellem of Tieton the go

Bill Dezellem

that. may. if questions, appreciate you, I group a of I Thank have

Proposition upon of failing the offers of start XX First on. let’s line just I’ll on there all then questioning, and last contingent were any continue and--well,

Bill Griffin

I not to interest offers, say that any in capital going made to about it difficult significant decisions It detail can investment that was in talk offers. have interested conversations a specific that but in with be I’m even parties with may factor some uncertainty. or some commitments the making point only and a time was not

Bill Dezellem

between you main the you the business. were mentioning the disconnect of that the is? and disconnect? drivers do you value received Why you that believe think leading that Then What there’s are a that do to offers

Bill Griffin

I Lime, interested an market not release them, take It STACK, a overhang the current parties of northwest buyer With such, The like that favor The regard back process. where asset just out in of general. market out significant many with discussed it’s certainly is evolving an Miss perception number the the there size, the looking like to to limits Lime. some we of market the asset so had as an it’s area. and and that. you is an conclusion is of or number regard strategic being would impact. in there’s Miss a there’s buyers something Well, for seller’s in the There the press to there cash

minimal is in reflected equity is, variability there seen, and attempts private market northwest and uncertainty, a frankly, interest is current different few it are successfully, about with the received, positions. and of we’ve the the with across for pay to to was PDP some a focused As the that companies, talked there there been who is public STACK made, the on indications upside. But different undeveloped both quite have market number previously, of play those mostly willingness we backed, on out we’ve and what

number are but different supportive, solutions just resolved, very there. with out well basin. be with uncertainty implementing types we do a wells reasons ultimately the interesting of the clear discount area to know always the option. all for that’s that. North that put value regulatory the pilot forward think eliminate produced clear being to to going essentially of again Park, question we’ll liquids supplement working in look of was are to a the with that of away I wells moving I can gas gas STACK, of be would the be those is on produced gas, on the Park possible are unwilling add, that quarter we’re a we’ll agencies, and until more Medill a North associated you was we what of the there’s path the in John to and the been forward on they’ve a compelling cost of to there value previously at all think perfect we until company there’s I northwest with discussed, that a this the and the example the something the drilled viability need showed, But give the just very You and first permanently a pipeline about and maybe lot going mean, a as even out a to--I do.

Bill Dezellem

you. thank Great,

talk shift, would those about sell seller I the may, me assets? that please. transaction, Mississippian that the Just was to you Let Lime was Why willing to if if assets. it

Bill Griffin

interest This position into was non-operated, needed out was the seller they development. of minority during the of that in to significant joint was venture legacy a It position. and stages fairly early exit was just a the a that a position entered

motivating behind understand and it say were sitting position. asset than at to declining other drivers I and advantage time, their pick decision up I The holding can that, a really factors took that to can’t do other of you’re the certainly we their there

Bill Dezellem

that, additional Do like you see Bill? opportunities

Bill Griffin

on think scale. I a smaller

possible. it’s certainly I think

consider would a able it’s incremental I’m that to it wouldn’t same did assets you NPV buy would bores to new Miss we’re today why buy up and do if meaning price of went requirements, process, wells even as interest. essentially were assets, interested you interest able again. repeat I and did compelling properties, types incremental just we but cost through they Lime we’re to so Lime liked well it to wells increasing the Lime operate, incremental we these that after new ask, of say would the think operate in new areas not going new be thoughtful. that are we Miss we deal, Miss always that, exactly the in takes value. additional compelling and might These we in that, Someone more and already I do rolling before acquisitions just operational be saying We the amount to at we’ll effort

Bill Dezellem

then then and have Thank Park North you, two questions I’ll and off. I jump

wells relative First first the you you years what please discuss you’re that then those would that, behind on coming the anticipating couple of assets? to and expectations, above decline all, in believe is secondarily the in rates

Bill Griffin

the answer for teams to John. over a been the that John, turn to lot what credit accomplish. out of and that? geotechnical He have the to performance you operations able and want there deserves I’ll

John Suter

drill that a Two C were eastern and benches few Niobrara have the both and really of of drilled such it. the test best fabulous drilled in that that, our are results. there in think much. explored C similar are we wells and and only of that plan some had we’ve in, have the B see were I very column, in from ’XX wells there We’ve of wells get results the and had to that additional in a we benches results to targeted better B spacing these again if not seeing number we We things. QX B

time, of same of I it C so The wells stimulated when zipper time drill we and one at of stimulating as back which back, six at were think and other wells I opportunities, there is number as the of were a to at thing the rate advantage think that fracs is B more as the these really pressure a and one you do of reservoir fracturing effective can combination it’s time. the take well

Bill Dezellem

you. thank Great,

Operator

queue, in are over call no turn I to the questions back there presenters. further As the the

Bill Griffin

updates call, to today’s hesitate we appreciate for don’t and and joining Thank the your look questions. you please future. you. further in Thank out providing forward again I any interest, near additional to with reach

Operator

conference today’s call. concludes This

disconnect. now may You

SandRidge Energy (SD) 8 Nov 182018 Q3 Earnings call transcript