REI - Earnings call transcript Q4 2021

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Operator

Good morning, and welcome to the Ring Energy Year End 2021 Earnings Conference Call. All participants will be in listen-only mode. [Operator Instructions] After today's presentation, there will be an opportunity to ask questions. [Operator Instructions] Please note, this event is being recorded. I would now like to turn the conference over to Mr. for Relations Investor Petrie, Ring Energy. Al ahead. go Please

Al Petrie

who We Thank in interest comments for Paul and the everyone. key and overview our you, and good from CEO, Chairman our year. Andrea, fourth appreciate McKinney, provide Ring matters with an of your call morning, will full Energy. quarter begin We'll

joining and Paul Financial will review Legal for Operations; plans Executive of us are, our We will Resources Human Marinos over on before call our VP who the outlook return the Q&A Dyes, to Travis VP discuss Land, call financial Executive and the today Officer, and Marketing. for results. will Steve Strategy; and open Alex Corporate Baghdati, then turn the Thomas, available then Brooks, to of Ring's call Chief Also Executive and questions. Engineering of we detailed future session VP up

to follow-up. the session, your we ask you limit to a one questions During and Q&A

You note with are full investor welcome to website. I presentation QX to we year posted that would and XXXX our later a questions. additional have rejoin the queue also

the These or can you assurance revise Ring the information, During Securities such or of conference whether of guarantees not that Investors or otherwise. events Company no a will the statements, performance non-GAAP statements forward-looking may Investors of those with of may results one on SEC. prove earnings give to and any disclaims directly developments Laws. call measure vary described to of These the or materially be financial can should Energy actual correct. includes references forward-looking as incorrect, the forward-looking our risks risks announcement intentions cautioned filings release non-GAAP prove to the forward-looking Accordingly, press new are assumptions will measures documents meaning are our certain website. section that the these be forward-looking Federal or and future projected under not statements also any or are contained result yesterday. update place these found the differ more statements and released in conference obligations statements in of our most forward-looking future Should materially. undue underlying in other course should be financial reliance materialize making results This those yesterday's to company and in of are Reconciliations GAAP this within in call, comparable measures. actual from statements.

our call is a reminder, Paul to recorded. I McKinney, CEO. being over to would Finally, Chairman this turn as conference and the now like

Paul McKinney

you you, year Welcome, for in and fourth joining everybody Thank call. quarter end today for earnings thank Al. and Ring Energy, XXXX our for your us interest and

strong you quarter, during $X.X with almost $XX fourth We cash producing consecutive $XX.X of may fourth know, cash XX% results. positive helped free flow marking during ninth quarter us million quarter As year. the by when XXXX fourth our interest our cash million quarter, the full we of down including flow. during reduce XXXX which free million to flow flow the of X to generated prior of pay million We debt help the expense XXXX, compared the finished and cash in use year

the and XX% to make enjoyed and XXXX operational resulted adjusted fourth third while EBITDA respectively. the During of product quarter, higher XX% prices, in income of that quarter net we continuing adjusted efficiencies progress over driving growth

from full and higher third the the year than net million which the XXXX, of EBITDA we XX% full year was XX% was ended end higher adjusted of income liquidity, the XXXX with For a year-over-year. We million quarter XXXX. XX.X adjusted XX.X XX% million, XX.X of posted and increase

asset at placed our credit per targeted was completed drilling our If with development credit two was a wells in averaged $XX.X last to-date, program. $XXX which Availability growth in wells in program December XX%, base of we Basin from CTRs wells of XXXX of drilled We XX, geology, short. is of which recovery to XX wells Northwest we on Northwest with borrowing the the oil. XXXX a on sequential We Shelf portion in drilling Central fourth also we at pumps completed Central in quarter. successful electrical the million, We on in in quarter this of improved our of reaffirmed high-rate return facility, in including best you value forms. XX wells success landing XXXX revolving My Central submersible the the in facility are of results only our program under billion for Platform. wells XXXX In XXXX, We and sales in performing our areas. converted Basin oil improvements better and two the performance or targeted initiatives, not last in we the pumps, best our XX, XX respect and part Both we $X three recall, the there rod the and wells opportunities expectations budget focusing our Basin The accomplished we million. in in result from in of have was day, including wells performed above we wells we wells ultimate XXXX were our the Shelf XXXX, accomplished drilled CVP was to time downhole wells wells Basin wells, equivalent our fourth four selecting the a the are with and than With the All which our converted eight completion we in and wells exceed year our past, drilled what Flatform, of Shelf benefits on benefit of year XX six of our long-term In Central Platform. XX% something drilled call Northwest consistent drilling XXXX the and two favorite the that our three package Platform. the concluded from barrels where was comes completion zones Northwest incremental by wells area. program wells CTR base. methods. to average volume continue that within of legacy offsetting three program the phase Central Basin Shelf with Platform and course December. overall production And unlocked and

oil experience First, reduce higher costs the ultimate is and by year. development and us barrels XXXX recovery reserves, we're to grow to to program With our economic our equivalent lies, leading lower approved reserves respect second gas the oil electricity costs. our of reserves. more end operating the drive million replacing XX.X generally the lower significantly which SEC of X% costs repair to our through than operating full our lower considerably XXXX The benefit, resulting usage for year able capital production longer wells helped

Turning increase and strong. are nearly organically of XX% to all down reducing has price is we spending confidence assuming improved do XXXX metrics, enhance our intend which our to cash X, improve off, adjusted capitalize program XXXX our debt, and which EBITDA. plan leverage and ratio. continue operating our our designed paying investment us so rolled prices while to outlook. In our course to generate and on to allows XXXX of to On cash commodity given capital increasing response, program, grow production scale operating remain our January us commodity hedges we higher success revenue flow, that flow. dramatically within and low We financial capital to of our prices The

meaningful a at end approximately less our reduction forecasting of December XX, XXXX. ratio from XXXX the X.Xx at are We than leverage to Xx of

be wells natural the late in of which full on highest earlier, we drilling and rate decline both is that again drilling the than to second quarterly program were running April. Central midpoint month, our Basin quarter. increase we based Central one-week been placed the have in Platform, Basin two drilled inventory Northwest in Platform wells have our Shelf we production wells return January, in rates wells believe on more earlier almost year We production and of a our online our levels to offset focused are our As two guidance. To-date starting including said areas. that can and the in program, this continuous initiated production on XX% continuous we expected grow By anticipate four

recompletion will plan to to Basin to are we intended programs XX prices. and XX% Of complete for our equipment of course, drilling total and to adjust capital X% in we XXXX XX with Shelf continued Northwest drilling reflect continue our commodity currently our capital for in material and and remaining of retain other program, related ability XX for to allocating the our spending Platform capital midpoint across and activities. our work drilling, the The to in wells our approximately over Central includes We drill acreage. success CTR miscellaneous programs land approximately XX spending spending. wells execution changes Complementing other costs completion XX% guidance with

the Our our inflationary development current our impact guidance on reflects view costs. and of operating

point charters by with and I journey before concerning Last responsibility ESG we consistent ESG our not initiatives. ESG our report, would ensuring issuing Now where of one substantial inaugural the year, just governance our work and employees are our updating our to with extended I cornerstones our also Promoting progress stewardship, is and corporate guidelines We Travis, all ESG Leadership, our sound our this Board and turn modern Executive like be of but employees. governance environmental communities corporate revising you practices. our on believe that to call our to we of supporting share over more to culture. made

to Our sustainability demonstrate upon we a to this the long-term inaugural company. of build and foundation of which importance provides will great report the ESG to continue

that, more over in discuss results I detail. it Travis will So Travis? our with to to financial turn

Travis Thomas

morning, good and Paul, Thanks, everyone.

share. net quarter generated or For of $XX.X million income million of and $X.XX revenues XXXX, diluted XX.X the fourth per of we

unrealized hedges after our the million, including non-cash or Excluding income estimated based $X.X and adjusted on tax gain expense, per $XX.X share impact compensation items, per a share. XXX,XXX net was quarter approximately million of $X.XX tax fourth pre

after loss per and year tax $XX.X income per of $XX.X and net our of items, X.X million share. including pre per unrealized share the income of generated of a estimated million full or million XXXX. expense, compensation the For X.X $X.XX adjusted impact full was tax million year non-cash net We revenues hedges on based $X.XX share, million diluted excluding $XXX.X or

cash During cash million the XX.X had XXXX, flow The expenditures. approximately free fourth in and XX.X of was result flow we operations million. $X.X combined from of capital million quarter in

full proceeds. divestiture of The X in from approximately combined million capital in million. in million was For XX.X XXXX, million cash and year XX XX.X we result cash flow operations, flow had the free expenditures

oil had a natural a we the XXXX, of total XXX,XXX XXX,XXX XXX,XXX of barrels sales sales Mcf and For ended for months three December XX, gas BOE.

of quarter per fourth quarter $XX.XX negative the per was an Our and per third NYMEX of differential barrel average barrel. barrel negative natural The was in XXXX, our $X.XX fourth WTI, XXXX per average of average differential realized price $XX.XX between quarter per $X.XX oil our BOE. gas versus of oil, received for of pricing for a Mcf $X.XX a

a gas average Our from $X.XX the the fourth quarter Mcf. of was per for positive $X.XX Mcf third natural differential versus quarter, positive price differential for Henry Hub

year a natural X,XXX,XXX gas of X,XXX,XXX Mcf BOE. of sales and oil full the XXXX, had for X,XXX,XXX barrels, For we of of total sales

of and $XX.XX $XX.XX average year full for realized per XXXX oil, Mcf barrel per of pricing $X.XX Our an was BOE. per

financials our our For was income please concerning that SEC earnings refer more other line with yesterday. details in to the XX-K filed release and items, statement

I sessions. Q&A today's have course, will questions Of may be any answer to you during happy

strengthen reduction. debt top our of balance priorities sheet One was through coming to into our XXXX

Our liquidity has the portfolio opportunities production, capitalize strategy and to produce cash been maintain flows. within increase our strong organic in to

free strengthened We fourth down in liquidity. and quarter as financial paying by our turn generate results once are position pleased again our increased with debt we which our flow cash

of flows driven conditions. Looking of and forward, levels down capital will be market the by cash the to timing the cadence paid and spending free continue of debt

of of revolving and credit XX.X had As on XX, of includes and we reduction cash the drawn million approximately credit. XXX,XXX liquidity XXXX, our $XX.X letters facility of a million million, of million available including revolver, X.X which for $XXX on December

reduction We total to year pay our XXXX. are of by further for leads debt full $X million to $XX the quarter in revolver down pleased a the fourth of million

to first quarter of Turning full year and the outlook for our XXXX.

anticipate to Northwest we in $XXX discussed million for of wells the year Paul includes spending million, As the primarily XXXX, which $XXX full Shelf. complete estimated XX to and XX total costs drill capital wells XX to to XX

reactivations, and Central well in completion infrastructure spending in paying and Platform. year and Our the Also We for down includes contractual financial outlook the is the successful CTR updates, workovers, overs. capital non-operated year obligations Basin leasing, capital and debt drilling spending further targeted full included work Shelf our program Northwest continuing focused full our estimate position. anticipated on remain drilling strengthening and

Our that fully to full expected plans strong fund investment plans. our cash generate capital spending are XXXX capital year flows operating

pricing the of excellence, full XXXX day, XXXX per full focus volumes midpoint course, we back per compared with and XXXX Paul spending materially, BOE year capital Difficulty] guidance. targeted to of XXXX to noted, sales spending of were flexibility BOE commodity operations currently a prices capital as environment. year-over-year XXXX favorable Of pull expect maintaining program BOE sales our on our we development program XXXX day have by average [Technical as year necessary. Supported assumes and continued our If X% reduce capital the volumes to

drilling the quarter, began January. drilling continuous Looking under our in program new at late first

production expected of and XXXX quarter in quarter, XXXX the such there's per the for short-term expected to disruptions, are weather first XXXX the including range be sales some wells the As BOE to related sales minimal production additional impact during quarter day. the in expected decline new first in first normal

to expected of are sales the XXXX continuous quarter program. new the Second reflect benefit drilling

per and XXXX, lower $X.XX transportation year to to BOE offset ongoing costs LOE our LOE by increases previously XXXX, to $XX.XX anticipated $XX targeted partially per costs of the Contributing operating leased from per gathering, inflationary increased BOE. program from the and full and we processing For costs or related $X CTR our of BOE anticipate GPT purchase of of and ESPs.

Looking operating and we costs the between for currently to $XX.XX BOE $XX.XX and BOE. costs $X.XX per at quarter, first expect GPT LOE to per of range $X.XX

This of position, hedges hedge cash us majority opportunity a XXXX, price Paul with are our on our provides as oil rolled with and we low operating off for discussed, substantially flow priced strong continued the in to X. Turning revenue environment. the pleased January based higher

comments So to closing before Q&A. I'll back it with turn that, his for Paul? Paul

Paul McKinney

environment. Travis. have adjusted current asset cash And strong is you, especially Thank operating the generating as pricing just in EBITDA, we solid that heard, flow a you and base

to facing. a spending us improve our for production that with align and We leverage the reduce vision. easily well criteria and our our success increasing to planning through that positive, are strategically turn I with beyond. Energy and we for our And to call believe in and can investment continuous capital more our we situation Nonetheless, closing, were incorporate sustainable company. scale regularly past your properly they see investments more and believe for increased we accretive some now to by ensure reduce is we build We positioned path increased Andrea? they summary, program. our XXXX. to a size grow that In future acquisitions capital that remain meet got XXXX ratio. drilling world drilling strategic to a in and plans questions. speak and scale, to commodity prices current does shareholders and about our want year have the In become we're size have board, XXXX more cashflow this continued team expressed allows and Like the to that, grow excited puts We and monitor supply and we us debt scale small beyond us time to build and Ring that the will once us management Andrea they on this well in help part volatility had want over will our is to

Operator

Alliance Campbell the And will question session. come question-and-answer ahead. go We first Jeffrey our Partners. Please of [Operator from will begin Global Instructions] now

Jeffrey Campbell

Paul. on And staying morning. myself I'll course in the spending this reduction debt questions morning, three in XXXX. on congratulations Good limit to

the the downtime to I course First, chance over the facilities if has included improve wanted of year? ask in is third-party any so, if And that could XXXX been guidance? this there any reasonable

Paul McKinney

it associated is still third-party as through uncertainty Actually we've have with improved facilities. the Things There gone XXXX. does.

is big capacity capital takeaway as that through this will the drilling the gas year of for our we issues program One that face we march production.

Shelf. know, those you and of in unique Central both issues we're their associated the have As Basin Both Northwest areas and gas takeaway. with the Platform own growing

And have right our estimate But issue. so restriction. it our with forecasts and now be best could an that incorporated associated

Jeffrey Campbell

that appreciate I color. great. Okay,

out those end year times be reduced question, requirements Second to here completely? requirements? goal expect at the And level looking into XXXX. which your Do eliminated bankers that or Or there another continue impose maybe debt thinking you've hedging put to set of is two for XXXX? I'm leverage a kind of might way,

Paul McKinney

good way XXXX. place currently requires question. us a from the we hedges into facility, is are requirements had our only that that's no XXXX. to going And Yes, last into year written, maintain There credit the it in

so And will of And protection shareholders as in to hedging has that we necessary thing We an benefit described the our planned. pursue do so our the beyond that in to it's cash believe pay activity also want and debt the opportunistic will what one we from to that marketplace right marketplace flows, be or requirements, we what believe can, as put offer. we've they down protect the hedging the believe those but to the strategy. past,

we And the participate shareholders to in marketplace. want our so

that And will have so, but That take a that advantage hedging the does we responsible question? answer your in provides. opportunities of strategy marketplace

Jeffrey Campbell

do it's you're want XXXX. have to And do to you going in that does. what hear It freedom to great complete to

Paul McKinney

freedom. don't But your I with yes, know mad. complete freedom, about Complete go I'll

Jeffrey Campbell

freedom? about How expanded

Paul McKinney

you there freedom, go. Expanded

Jeffrey Campbell

usually since interesting noted Delaware variable. the your would I of further that to there's consummated, the thought sale go as some mention another basin potential reduction, in update M&A the when was from been proceeds Finally, past, this debt

a on little if So I wondered you could bit. just this expand

Paul McKinney

sale from By Delaware down that our also assets our go. It the take using the of increases to proceeds that you cash. taking also increased ability that another opportunity debt our and to applying liquidity. There

every marketplace much we has out there. AMD, created as noise we are that of experiencing have in the said call kind as acquisitions in right we're it all a I the so bit and lot volatility the of just confusion, And past, focused on -- would now

what So use. to know, price people really don't tag

and it's still gap a has expected not created because buyers there people confusion lot it But between are increased so that And is sellers. of questioning.

saw want in we prices reductions sharp I what's on what price a just worlds in Ukraine. Russia morning, uptick between result interpretation, use? As oil going followed Okay, we another do behind of prices tag so to -- and saw as over this there the

So plan but to our continue will that are yes, sold once be we're divestitures still debt focused for acquisitions assets, to we on and the will Delaware reduction. And so. apply and those that

Jeffrey Campbell

great. and fourth we I congratulations appreciate good again, to the look expansion. the forward Okay, on quarter, a XXXX. And

Paul McKinney

Thank day. great you, a Jeff. Have

Operator

Brothers. The Please next from Noel ahead. question go Tuohy of comes Parks

Noel Parks

good Hi, morning.

Paul McKinney

you? Noel. morning, Good How are

Noel Parks

Good. Thanks.

a curious Just the of the you the did long shy things. and before to a had of how been that? monitoring couple sort decided strip layer just XXXX day of you hedge pull in I just trigger XX? market you The was barrels on at the

Paul McKinney

a opportunity with were associated came -- it the this year, year, in our debt was in some in look when say right to to strategy we differences But are and records there that marketplace. contract to marketplace, that plans the the protect repayment additional in to kind we've we when the position at we opportunity current along, out last what that it. puts day, should at or our we way every with this spending of pretty our we Like a our capital defenses mark-to-market long continue decided summarizes Well, our in capital barrels at program ensuring an looking get so past, watch said of report plans. and the want pursuing And head went We our were debt the day. statistics. we repayment I pursue that every much earlier and took to morning we a XXXX historical we spending in an

Noel Parks

it, about hot topic on and have the inflation rate And rig such your or spot you only arrangement have clock it these outlook thanks. just your Great if is a contract, being you for what there. for a days, could under and you whether with just talk paying

Paul McKinney

Yes.

as well right into five allows both throughout make to a you have account a inflationary year measures. rolling take along and contractor roll now. parties with the growing contract And contract We that to adjustments

then the pipe it's to costs rates we've think And the things volatility prices for so just if pipe seen associated spurts really going fourth paying of high of with experienced, double quarter look the And versus that example, due I'll you world. XXXX, off. and And today than on those the we've what's around we've chain, supply all level of at what take inflation, more we're our in now. I

the And goods seen whereas prices. the all now it for and or across just whether whatever we've were is. or still now so use, fracking, we've they price initially we increases seen cementing board, But increases it's services that

supply chain go And we'll that prediction, things the we the so year. though, is go. level out to as It start how throughout will my see

Noel Parks

particular in direction? in Anything that you Great. steers that

Paul McKinney

needs world's so process to really, in get economy, somebody business I of that really whenever that, product seen significant else mean, our they we've good to And has capitalist changing people pretty been demand some high decides confident has the and prices just areas. the for respond Well, society again. situations always the to follow to situation different seen supply so and the manufacturing get into various to yes, the some want We've and one I'm able inflation respond any volatility. will proven and American been always through the

Noel Parks

Great, thanks a lot.

Paul McKinney

Noel. you, Thank

Operator

Dingmann ahead. of Please Neal Instructions] come [Operator question Truist. our next will And from go

Neal Dingmann

quick down, ahead Paul, next all for if Travis out were question job guess you for I you said consider the what mean, look come production. quarter the of to another morning and and even to start guys, I this overall, all. adding don't good of I even myself. details. as to lower? and even prices on would All my prices kind I seeing to macro you're you or I laying either Would returns remain if, you get have? the of go some quarter thanks costs high say, want at and But Good you high love OFS, consider? service again, activity, workovers you all through all all rig payback for more

Paul McKinney

and Yes, you our be up basically point to the Right a plan, with so capital bring Neal. to interesting addressed suggest we've would we're to really spending we're things going all responsible that going respect now, cashflow. stay within

take laid us you pay you our increased your cashflow capital if Yes, us give more. has to So scenario, going considerably just going spending it's even out down But opportunity actually the and faster. to that's accelerate programs. to also allow to debt

there some limitations capital realistic programs. are our to spending Now,

talk about those. Let's of some

take those little in Platform to Central can away. although gas are earlier, they Basin our and bit are both gas mentioned Northwest One we limitations the much takeaway a different I Shelf, how reasons, of the for there

second we drill get And fast takeaway. and of outstrip ahead for the rig, up ourselves gas a so as we may really pick we ability

other not that to the going have, to water our but so it's would the acute drill, increase close capacity wells to we as disposal. to disposable water disposal have our now necessary be we we be much. investment is plan Right necessary not that The issue it's facilities for and the

in limit currently areas much that. we we're could how could limitation that at biggest growth take So least have focused. and that we actually But care be probably the the gas would probably of would takeaway,

Neal Dingmann

either is let's either that spread there to bolt-ons, or bid ask less -- guys then How just higher area the I'm today year and And are competition? are far deals, sort but got opportunities? you not what you sense. talking of seem maybe look makes in platform, on I'm you fall particularly to just necessarily either totally the for that is And little big competition wondering are get on your shelf, be or scouring? pretty because what Now, always the working say, a interest as seeing the ago, wide like, as it does not versus

Paul McKinney

Yes, we have.

of and were would bid great participated have we thought preferred people company. marketed unsuccessful, we're But of some to or on, we we method own various go we to the be the market. is our what off Although in to the dilute persnickety consider successful, operate the other participated, want principles two negotiate led assets word, right metrics the have because deals to and been something might that one don't of try attempts certain that be have And that we've our superior and and have to we to bolt-on that's the that the returns.

So we low shallow really declines. have

opportunities -- We superior margins, wells, operating have our operated have in high really the undeveloped economics.

out what so And assets we're assets in acquire the be the that to also do that there we're criteria. wants, disciplined, are to trying trying to superior is, trying that marketplace we're meet Those everybody right.

So the competition is pretty stiff.

think, kept successful sheet. up balance our being us to is really And thing from I now really has that so really the

tried to we has at a But strategy know, haven't been have secretive our and as of been all. equity. you along, cash use about We combination this all

and it's be the a partner, But to But transaction, per equity whether we course, sure day. called to would willing activity, that accretive partners very, is reducing our it's on always By and stock, active easy been use end working you share cash the on takes whatever to of tail leverage that. keep looking transaction. That's strengthen have an shareholders. at we're could ratio, But others on us We opportunities. flow strengthening same share so making not of us help that also the to of anybody it want it something every we're that for we it who single very And single to do or care take right? day be are those thing on the been metric use, per every so a have cash credit time, work existing Because sheet, reserves facility. would a goal making balance was the We do. production our phone accretive share. want per calls, be in

and there ways make ask sell these spreads. overcome But out that. Now more probably getting about always back to Yes, your little a times to challenging. bid there, are point it volatile there's

down. can you associated let's kind time oil so stay payment are the payments ways then higher, say put contingent the prices creative and between of associated anxiety well, to is are And these with, longer you trying put for of you deal a high period reduce differences oil achieve. prices showing, in okay, contingent there some sellers what the a come out also what bring buyers to other with the the four or with up if a strip And than

Neal Dingmann

just yourself wells? you're that talked lastly, you that? pushing driving I you Is love to a don't if sense. credit. touched know record learn? operationally through know these but Again, to makes guys of this what what's of hear results. more that enough the sort get it what's some lot, guys that about No, don't given I I Is little have I'd want on to Well, then continue one more continuing hit guys of are just efficiencies, a you And even these mean, bit. you guys on to But you

Paul McKinney

in And close there our they day. my are the ear circles for is developing strive what But These apply don't would credit industry by leading those We in all continue to every excellence keeping ground. technologies engineering because communities, on to with we close others We to to out that that guys, our contact rock, staying Geoscience of technologies the to new walk of different. want goes learning teams. keep the and those to and Yes, specific are the bleeding on be the rock those edge. every edge.

also operating our And team, technologies. completions all up our credit the give so, and teams, staying and on the all but we're to drilling I

really have guys petrophysics, on nailing the zones. landing and geology geoscience focused Our the

And Central what it. our yes, you so did team the teams, look if we in at our Basin Platform, just technical nailed

it's Shelf. so now on And used tell opportunities there a many they're am really been we we've up really had Central undrilled mean, I value to unlock were our can't Basin economics. how acreage, to that. the be theory, focus But concentrating we although respect the so that much is the so time not happy able I is And great period, strong and to considered so I in of Northwest for Platform legacy that that. inferior, in you investments Because, with I'm in they the sure technology really, economics, those now

the arguably so area between to of the margin the is between to calculate, wells. other one breakeven And the from from cost difference variability our within error

we're And so. about probably but Central $XX shelf, and of is yes, vicinity or our the to talking Basin Platform then on breakeven cost XX in so

Neal Dingmann

Thanks so guys. much,

Paul McKinney

welcome. You're

Operator

Investor. come And ahead. Please question Instructions] go Richter from [Operator Private our a next Dennis will

Dennis Richter

Paul. morning, a XXXX. Congratulations to Good great

Paul McKinney

you. thank Hey, you. Thank

Dennis Richter

Northwest terms little bit that And So Basin kind for you acreage of with the give it answered of just Paul you you're Shelf? regarding one was how drilling possibly questions those compare much and more running to wells actually, my in have room Platform, of can color using that in is you locations they you a terms economics? of how many how there the Central could

Paul McKinney

don't the our I looking in XXXX now, three undeveloped Central for you, tell performance They do plans include economics, in right drilled to the our for got that know drilled. areas. strong. But I of reserve locations have completed Basin really again, look XXXX in Dennis, wells the number we Well, four wells the those I newly report Platform, of the of When really, already and been nine have those at

right rest the the slated Northwest although for Shelf. is Now now

down we Northwest Our really Shelf will Basin drill Platform, in have back and course still eight Central another we more so guidance haven't a to allows there go we down well. also wells as to of range undrilled for locations location inventory have work also of do or and handsome the completed probably so the where we

I so below for Central Shelf. year, got but we've this sure the that remaining XX know for for the the Northwest fall anticipating. slated currently Platform less, now prices, energy in levels and we've so Basin got nine well And we're Right or

Dennis Richter

to they're recovery potential, to or Okay. And of pilot is Northwest you this looked Permian, talk waterflood shed the if do doing three some something is And potential acreage primary you're your that, that times right, exploration the that And right terms on just possibly wanted if Riley, if in door. five in project question. just to terms having bit of recovery about is that, like there at. recover next CO, neighbor one of acreage secondary this to other the able in can your a and something that color being kind Shelf, they being if a see little the in

I perspective So Appreciate to give some just it. kind you on wanted to that. see willing if of were

Paul McKinney

Yes.

traded the we Dennis, opinions. secrets shared So well, we've our and and all know, you Permian Riley let just guys to know,

operations, plans with where aware actually their conference We call a are programs. their guys, talked COX program. we about our operations, their their of for had We've those

in As section but you you right our don't, COX permitted are wells. water the they injection may wells next and know, the section their maybe to where

shared we've And goes information, wish yes, to This technologies. a bit them the best. quite all developing of we so back

me, well, take my of be the if County positive when if all then an in applied well generate is, Yocum But I'm the horizontal these throat area. [ph] can new ideas. You on up play try additional opportunity there you risks idea losing those results, to here. type the [San But pardon ideas, Andres] that

not it other so that that would benefit apply technology. would to operators but also Permian, the And Riley it choose only benefit

and have standing we cheer success And us. to success, also really they strong hope success all could so really recoveries back, additional their Riley, we're and because for lead that

Dennis Richter

That's great. Thank all me. you. That's for

Paul McKinney

Dennis. you, Thank

Operator

McKinney any the This to like Paul I turn back conference would concludes for over session. remarks. our question-and-answer closing to

Paul McKinney

much. on for to our Thank forward very you. you, and year. you us looking hope us, investment hard you Ring. for to And Thank the the all this you'll interest we We're concludes that working day. continue that because This Andrea. questions have in call, and a of thank joined trust year the you the with just for meeting invest strong we're really your And

Operator

The concluded. may conference Thank now today's you and presentation disconnect. is you now attending for

Ring Energy (REI) 17 Mar 222021 Q4 Earnings call transcript