OAS - Earnings call transcript Q1 2018 | Chord Energy Corporation

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Operator

Good morning. My name is Brian. I will be your conference operator today. At this time, I'd like to welcome everyone to the First Quarter 2018 Earnings Release and Operations Update for Oasis Petroleum. All participants will be in a listen-only mode. will opportunity there ask presentation, today's be to an questions. After recorded. this event note is Please being I the now CFO, will turn to Oasis Michael begin Petroleum's Lou, the conference. call over to you. Thank

begin conference. may You the

Michael H. Lou

in We cause update Reform to statements releases Act. earnings our morning, remarks Commission, that others, filings include everyone. our Exchange our disclosed both team. the in Reid by forward-looking be Please delighted Tommy joined and reporting our we uncertainties XXXX that well the meaning Those as to Report Thank you, be with and from you quarter well Brian. include, obligation we currently our This and Michael any actual calls. Form our we release as These statements. Private to first and our Litigation our the results. Lou. other Midstream those Oasis believe of within are results as operational of Oasis and Taylor that earnings Petroleum members risks risks today Securities on subject conference be matters the Nusz different answers materially on XX-Q. Form Report among advised in to as XX-K is statements Securities to financial on Quarterly Partners, including have Annual and the statements your are Today, forward-looking on We're I'm questions, that these Good and forward-looking call. disclaim to including described have could

in GAAP websites. and make measures non-GAAP and on applicable our reconciliations be call, our conference During releases we measures will to earnings this can be found to reference

can our investor I'll We presentation, With current over call which our that, will to find Tommy. also on you turn the website. reference

Thomas B. Nusz

continuing in Boes conditions. stated pace provided positive to execute on on great and operating day volumes that XX at being to closed world-class for in taken call. and flow in the Forge our acquisition asset reduced over top-tier of in while abnormally and operations plan Boes into of the producing second year winter our resulted we quarter solid as quarter to rate costs our ratio. spite per liquid you completed the February difficult a Internally projection integrate began the to Boes We assurance, per combination and cash downtime of exit outlined February. morning, Oasis We costs, year, another infrastructure resulting capital day. business and on XX% flow per continue day XX% our while to efficiency, E&P through access thank OMS to XXXX Good and This joining marketing portfolio. the we for combined XX,XXX XX,XXX barrel off controlled focusing our are maintained supported XX,XXX quarter free on year-over-year. XX,XXX We maintaining first the grow reduced start to we to on cash to ranging between and remain Boes margins XXXX recycle exceed We're have points. per

we've Additionally, capital several team and per gains to XX,XXX guidance a the increased did efficiency Boes Boes over job costs delivering managing full-year to quarter. XX,XXX our capital of day. tremendous The

wells drive OWS completed to Our well efficiency two-thirds the and services on about frac business and during our wells continues our Williston down costs quarter. increase of

year. spite been costs well. good very higher frac well In with where prices, they of entered as third-party performance our the in has line Our remain oil

transferring with the lower expertise especially we as for relationships Basin Delaware. look deliver up to high challenges Oasis margins in or limited market where of Delaware highest, that competitive current at cost ramp see see we tightness our which in us forward costs we streamline to can X if and both and service Delaware. to Delaware. operations long-term our Williston or ratios in Williston, to in secured model. partners of our in returns, Williston on with results the continuing page with early future there, to We the inflation Oasis our Oasis to the critical Williston peers continue and service service field the employ small, has to among with We're our and our we've developed in full that on large two-year as planning cash the are not We learned with focused we operations prices continues Due partner detailed and use address services that grow forward plan in to we've great as dealing what the development want highest, the many recycle one providers, described the on presentation. operators

through WTI positive We expect Taylor. continue in E&P XX% growth flow were be we as the over to cash XXXX call $XX $XX neutral a to that, world. I'll in to quarter to turn of to production XXXX to with XX% first With the

Taylor L. Reid

team asset within Thanks, as G&A acquisition guidance Tommy. our for for we closed XXXX into strong the to It and portfolio. with the our acquisition, began but a expect little the to was Forge the associated due was than the to start normal costs higher year. Oasis a remain to integrate the

Delaware. gross in the one well with completed we quarter, working interest the During XXX%

total In the completions to spread the wells with XXXX to to the expect currently complete back more in being still quarters throughout consistent primarily XXXX. in of to rig expected little a the core, the in next May. second in start step be eight in is in running and are of We pretty with a as this the the the XXX wells complete look activity end. should second quarter weighted to Delaware XXX in pretty being with couple the the remaining Completion operated fourth one up remaining focused evenly gross quarters to quarter generally we year are six late Williston, activity we across

completions. and we capital the million cost about that of some budgeted $XXX that mind guidance between $XXX XX% have divestiture been drilling We expect spend to on have our of on of to all which and update our midyear. of about with spending interest expenditures before in encouraging. hope upstream is a and program, impact million E&P Williston capital formal inflation Early still the our into targeted has sometime on capital to production in we on and full-year assets estimates XX% the in Keep

with in million and of the pounds As the for the million we the you to budgeted Forks. Williston our well wells in showed and in in X can new type for performance, XX perform core far Bakken see curves as proppant expectations Three We presentation, line our February. with pounds of continue as the

We our continue to enhance optimize will design our returns. to further frac

seen have in our completed performance area Spratley During strong well and recently the Alger our performing in wells type Basin with Wild quarter, Alger our curve. line we with

you type on core areas, as curve. presentation, see Indian above our updates continue as the far other our As wells can Hills perform in the to

still X.X production. industry wells years continue Bighorn the still our our core recently after our in the enhanced addition, to are naturally flowing plan Woods operators. well outperforming by In Boe flowing, into expectations, to area wells offset seen in on of performance spacing Painted second the moved exceed curve. In million strong Woods type due we our with tests the the almost Wolfcamp conducting significantly completions Delaware, half Painted We All year. two and on

improve continue to completion returns expect optimizing of the laterals techniques. We through and use to longer

to our in between On operational per did our Boe low below the during tremendous of success, the the the In expected of Boe. to the team of end $X.XX costs on coming per $X.XX job front, the $X.XX LOE LOE we operational $X.XX, year the on $X year of Boe per costs guidance with with a to are lifting our reducing to Boe. quarter $X.XX guidance of light changing per full be range

our realize within per We price $X tight our of also on guidance to year. with continue quarter being first oil $X.XX to remarkably barrel, $X.XX average range the differentials

that continue forward, oil expect within see Going to range. we differentials to

by The we coincides eliminate timing increased being sufficient second Permian. acceleration differentials half activity the the While for capacity long-haul right of with see our high are now, to program pipelines gap. Permian in the XXXX built of the

differentials Basin. a exciting Williston very of now the though, tight in For experiencing XX% Oasis. our close, is the it we're at time To enjoy production

we turn the now encouraged start greatly the the are progress I'll of over Michael. by make to on objectives. as to continue year We call goals and XXXX our

Michael H. Lou

Taylor. the the to strength we positive free again Thanks, business flow cash Thanks of were upstream on our quarter. operations, on our

quarter. first base with multiple We XX, with facility enjoy of $X.X than liquidity our strong of has $XXX continue less in of to million borrowing EBITDA annualized first times March and billion quarter half exceeding credit debt a net XXXX as XXXX. total drawn a the Oasis of EBITDA X.X to levels

we We the maturities by April. process offering pushing price notes $XXX have tightest stack due our our debt no of funded significant million near-term plan be announced back since going on and which has tender public. the level Oasis senior The debt through recent in seen out at XXXX, process will tender

in given secure, program estimated volatile have prices. hedged, management our XX% risk of financial and XXXX prudent success, remains production oil program approximately ensuring XXXX high spite hedges commodity prices, XXXX added Our with we of at

also Oasis' or strong Oasis Williston development critical the a assets on have On our third-party returns positive robust OMS' Partners margins Oasis continue Oasis to benefit both financial and has our accretive Oasis that capabilities. to pursue we ability OMS, OMS world-class impact with midstream could Midstream continues to The ability to Midstream been which opportunities, Services, third-party field to on in and front, leverage successful by strong success. project-level And bring full and improve operating complement will footprint. OMS are operations. projects

gas against and in production is Basin increase to core the starting Williston push capacity. processing of As know, up you to the existing continues

Additionally, three The capture tremendous and operational North and set the our quarters. forward foresight, funded time front major the maintain fully through though scheduled the to already capacity getting is processing plant running has new We Dakota on meet first use is Basin online a a budget over and to in the by day requirements. in job MMscfpd] new tighter, to both Wild our Oasis spending our on in has regulations are come at with is and XXX team [XXX OMP, of capture equipment of of done the year place, million all end ensuring XX% these getting regulatory and planning gas bulk processing plan with rates. plant gas being complete that requirements to in gas capture

questions. Oasis With provide best-in-class to our call great be turn to Going forward, remains is OMP through continue track a growing over time. OMP XX% capital Midstream while production to drops by expected Brian to growth. flow off annually. to we funded for start positive on the to to to capital-efficient on be I'll free over expect is cash business, XX% and XXXX in that, back upstream

Operator

And the ahead. now We'll Please comes begin question-and-answer with from session. question today go Brad our RBC. Heffern first

Brad Heffern

Good Hey. morning, everyone.

Thomas B. Nusz

morning, Brad. Good

Brad Heffern

soon. of saw you are on coming the your with activity I the the in Delaware, ramp And adding you the On second pipes comment is guys also that the going coincide to rig in long-haul made some Delaware.

this going So, implication the of XXXX? is middle the be until of that two-rig to what's program, run sort there

Taylor L. Reid

add So, relative is like completion rigs. we for to amount continue more you look wells to drilled eight going range. we'll wells to to in to be this you as rig be And May. of to the the XX a plan run the then, at that few wells quite six – of into are be going When get the said, cadence drilled, kind two it's XXXX, completed, year, are is that'll

to in rig, the wells. up as year, more add the we complete and then, pick we'd and likely another of somewhere have back the pace ability the half And said,

Brad Heffern

first Oasis And any we Delaware? it. well in give see the Got location designs the online this to well was that also, of you Okay. going when completed selected then, results quarter results? from And placed can the are sort

Taylor L. Reid

on Yeah. only well, The came online for Spring's XX it's that well but about is one Bone been days.

wells are early we're six-months-plus to an but of opinion of going what to So, seeing, it's need looking we're data like. time. kind We're what by the of encouraged very form

more that that the far things number the on. and the so as about modifications well. number So, amounts techniques, have of started the higher operator was we've modify that wells, so completion as been on and to have little loadings And other cluster what you'll far size, that. bit prior more fluid the as doing in a one get then in spacing talk higher about into made we've working increase hear Then a as we later taken we're of stages and And program. we'll of proppant

Brad Heffern

all. Thanks, Okay.

Operator

Kistler Dave ahead. from Simmons question Jaffray. next The comes with today Piper Please go

David Kistler

Good morning, guys.

Taylor L. Reid

Hey, Dave.

David Kistler

commodity us about divestiture commentary it's were little go uplift hard a know targeted? give on garnering still the briefly selling a the a Can of looking the you since You just ongoing, ahead doing. size mentioned had at I received process whether it. to you'd on aggregate But first originally you $XXX touched in updates, lot and what nice you color, with or what pretty you bit of prices talk potentially and less at an that generally you increase impact i.e., sell, everything if the might sell million, cash looking

Michael H. Lou

time it's a sell to along of So, Dave, XXX,XXX we what was of to X,XXX we barrels in $XXX that XX,XXX non-op, was And what at the about get we've acres to our we kind barrels have and to some it's day about all acreage million. talked we're we what at, about talked production. presentation, the it the fairway looking think don't all that of of with about said

still I think that's true.

it, We've of going evaluate, figure interest. going don't less we'll give to and proceeds. mentioned like call or assets have certainly could million that It an update we're – selling same So, summer. we'll evaluate. to in We're of amount more getting and strong formal had be $XXX that. the selling out. We to answer And assets more middle earlier, the an Taylor update,

David Kistler

it commentary bit an think in looking sheet be first, that indifference target a to clarification. coming get of to and Great. that balance I of perspective on and a what by to balance just expectation drop-down divestiture then at you're OMP, should thinking of appreciate terms the about And kind the of a maybe first, little trying about drop-down to the we coming on hoping year-end? sheet whether front on more

Michael H. Lou

fund talked side said on OMP. question. Obviously, the about we're through Good we got infrastructure drop-downs. to we've year some Yeah. that We this outspend going

you will I year. along. be to on to that. so, Obviously, see But going get And update think exact the half – of timing going we back don't I'm we'll that's that you have an we as the guess

David Kistler

Okay.

Michael H. Lou

obviously now we're And from But to with we a see and look X without when dependent along any drop-down. where debt we even we'll happen. actually divestitures balance obviously, EBITDA the But at those with times those under sheet standpoint, drop-down obviously, going EBITDA improve size come done. or two pretty naturally, upon we'll things delevering to, divestitures out. the growing, then are what And sheet it'll significantly balance be and get

David Kistler

sneak I appreciate Okay. one that. last Can I one in here?

Michael H. Lou

Please.

David Kistler

mix, So, just little gas obviously, ticked looking level bit. at a the hydrocarbon up

the How about per kind can so commentary million that But processing sure in looking have make growth. the inhibit oil that of coming we're it the be doesn't made just facility right going forward? heading we're mix day] XX,XXX [Boes to Obviously, exit. great You when and we XXX should model online. about access, we so that out at direction thinking

Michael H. Lou

Yeah.

of we throughout of I year. about of think at year, thinking beginning guidance kind the were when we out the the put kind XX%

quarter kind we line where right the of be. to expected it of with XX.X% first in at So, the is beginning

XXX that that fill million that what you'll see But that I in will think we'll operations Wild is plant, have think online I help day and some Basin come a plant. XX% kind of that call too, is we'll of neighborhood. the you about XX% in should exit that in I that think kind stay that's And neighborhood. think rate how it, –

David Kistler

the appreciate clarifications, so Thanks guys. much. I Perfect.

Michael H. Lou

you. Thank

Thomas B. Nusz

Thanks, Dave.

Operator

with & Jeoffrey go Company. from next The Holt ahead. question Please Lambujon comes Tudor, Pickering,

Jeoffrey Restituto Lambujon

questions. for morning. Good Thanks taking my

one's First Delaware. the on

to Are you around take-out the standpoints mentioned? the half great And is current be of operations you start gathering are there what and systems it scheduled XXXX that on are capacity that the looking from as back the wondering up for would of water midstream hear Just timeframe plans also the to side to approaching the there. some what approach stands.

Michael H. Lou

Yeah.

the basin I XXXX. it, side, acquisition, So that was midstream in to kind on XX everybody tight be the really we the of call the saw the I half very for as it, months did second midstream until, think call going of next, think

acceleration So we seeing plans any didn't into get big that. really until

up one of to we're in crude NGL in half the perspective, of XXXX. of for as pipe the gathering so why we've there's Williston. the a We'll there. lot a and talked wait that drilling come was reasons the differentials side Great big there. well as the side It that. about From And gas in second on actually opportunities

continuing there's Obviously, third-parties we're continue to opportunities to we lot gathering well. lot are OMP So for evaluate A we'll to. opportunities. the out there of think great a that of talk as that

we'll So to that. evaluate continue

did the the things. points, multiple put look us in think, of of will to thoughtfulness the we're about in long-term some for can we're marketing to place. Waha, looking in very in crude very in We because what way the as I We is set You our when be position, the think the Williston to the gas which were, of to Williston. It Wink, markets. because as we agreements enjoy close we very the on And a we're well gathering we Delaware. team, the to our very and Williston that hub, liquid got really which best close as up hub. differentials That's well thoughtful what

side. both Delaware crude the you to two hubs, side perspective, very sit from location-wise largest on the So close the the gas and

perspective. longer-term that the feel a on side and pipe, imagine mentioned in can on lot long-haul better of It Williston maybe the And comfort of us transportation. advantaged kind the you So similar are or to securing well. of differentials we that then on Delaware being as strong gives in as long-term you the a some differentials even

Jeoffrey Restituto Lambujon

plant the the the first, year closest? detail on? of also, capture we you how Appreciate gas I maybe the the the can what just of until get course you a you're can coming you're are watching regulations changes that second mentioned. And are over one's guess, regarding positioned there. reminder talk second that the about Great. that main And then comes on Williston, then

Michael H. Lou

Yeah.

So of for capturing kind of XX% the in the at regulations above and We're XX% end while. to rate we change year the November timeframe. a capture been XX%, from have

And in The our position helpful lot in very basically have that of day rate to be we obviously XX% XXX us keep because plant that a will a range. us, so million strong keeps gas to activity plant in capture Wild quite go a continues the as that also and that a opportunities active on tight. that capacity But third-party in OMS/OMP of area, in area for well, bit is to of Basin. a see processing we we lot definitely know producers

Jeoffrey Restituto Lambujon

Thanks Great. a lot.

Michael H. Lou

Thanks.

Operator

from Next comes Seaport Mike Kelly ahead. go with Global. Please question

Michael Dugan Kelly

morning. guys. Hey, Good

Thomas B. Nusz

Good morning.

Michael Dugan Kelly

In of to is how sense, wanted remind sense held? middle here the you of get program just face the of to this maybe acreage potentially stressed through percentage get on being committed these Thanks. to in a you to differentials can next your two-rig are what year. Delaware, wanted if us And a going

Taylor L. Reid

needed So order times, drill the activity. This in bit. rigs terms program. At so it's on of you it's modest acreage, the of forward, of terms as year, current hold to little the up a steps that in or X.X a program go

steps a get it's little of huge XXXX, XXXX a X X.X So then and it but to maybe you that, the up not beyond to rigs amount. as order in on

towards level, to XXXX. a It us, really that XXXX it's of testing optimize and increase loaded really allows from gets we end coincides program. and – about, standpoint. activity for talking what a So kind which us, up, also more loaded spacing And it's way back a the really with set in were manageable it

agreement optimize have around remember, to if don't this and on the got and lot to drill where program we drilling acreage, wells don't it. of the unit University that hold hold. spacing majority jump we can we've And to wells We and of have that – land. in drill Lands, satisfy same So to an a you'll obligations is

development and to some in being go basin. to than benefit compared other gives it things us to really to you otherwise, full the So, going of sooner field the of would able test be the able on

Michael Dugan Kelly

Delaware, continued you touch if trades in could set Sticking bolt-on you. think it. acquisitions? the the we maybe Thank your for play. appetite opportunity for Appreciate in that. here And about should how swaps neighbors the on Got acreage your with

Taylor L. Reid

footprint of acres compared thickness of Yeah, can surface XX,XXX we've here, got consider acres the Williston, And about with of thicker to X getting about it core times surface inventory what think you we kind think as X the is section, current Williston. what this the amount the with in you we about with times you're for to section, the from position. as a

the got focused a locations, of acreage. the to runway position. And up we're now with very we've new right XXX core big on over continuing So, core

acreage, even trades, drill long in of set it's long though then trying for this up of at So, put and most it the smaller deals, to a to laterals continue more up really block ourselves together. point, to this laterals, is position block more

don't So, supporting a large-scale big have we really need position. do to acquisition. a go this It's

continue time, When adding unlike the over highly Williston, that seven-year not yeah, a position period, accrete over we've done skill to our love we'd Williston. to set. focused it. add built at the really on in what look positions Now, we've to you that to It's

we're and that look will benefit has allow opportunities services our both to, time, add acreage of and going business. chunky high get so, well infrastructure same going the We're here. to for control us the thing to more And do to over

Michael Dugan Kelly

Great. Thanks, guys.

Taylor L. Reid

Thanks.

Operator

The & go with Rice next Ron Please comes question Company. Mills Johnson from ahead.

Ronald E. Mills

Good morning, guys.

crew, dedicated does year, and and to that you infrastructure. also you rig talk equation in fit a plan access Just bit, terms good how to to rigs little you two of third fold on this or forth? the as two But so rigs month stick crews into potentially completion need how from to to would Delaware a go and in when look on you job OWS rigs about next the a

Taylor L. Reid

the with a are the in we fortunately, as Permian in are rigs West Williston, far relationships developed Texas. concerned, in As providers lot of the same the

the ample frac rig side the and so, crew business. opportunities, that's led really to of both on the us And

been think rig we up said, this, second to a rig without that and third when do able that point, as we'll we May, we year, problem. do of crews What in frac to our the of this next quite We've frac be the bit get picking So availability. actually of work. a we've agreement on seen year reached to has in an terms balance

point we schedule Now, a we've can dedicated got where where full have a crew. we're a at not

a year. which So, we we've today. time. working got the little than we'll going this we'll originally is little we spots the thought, a fracked. way some quarter, the is but and of later the problem don't right along think that the arrangement we're wells thing example planning good on with we're crew fracking fracking well balance see where this getting with wells any A And the get quarter, on to a probably get frac earlier the our we're provider we've reached, same expect with We fracked for now, we're a

the half frac we As a we're probably when to XXXX justify talking get dedicated ramping you crew XXXX, time where second up. again, look to is the forward point to can of period early in about

we're looking really of right whether In probably and So, decision. evaluation we're make crews at we've into just it our event, for it build bring us one rest forward but the to that actually additional sense an this going the year got basin. that evaluate spread, we'd makes continuing to own now of and under to

talk time. we'll that So, about later in

Ronald E. Mills

expected with cost inflation? more all? prices, susceptible in to expectations your the oil even at much Williston to original I what of – If items or any inflation the increased you on you the the guess, what – are and in seeing kind Delaware up any are corollary, so, relative been what have a

Taylor L. Reid

to so that them eye to the we flat, the keeping haven't XQ well items. is continue go on. where XQ, see tight, There's Really, cost big-ticket one look will a Labor good Ron, to We'll going the through increases and we about point. if this well pretty the Permian of an seen feel really we're on we pretty of and you up. well-behaved. as number cost end flat, – Steel those. but we really fairly quarter-over-quarter, fairly we're been items track XXXX be at at in year it's the

our about we incorporated prepared inflation our have As comments, we talked numbers. budgeted in in

as Fortunately, and that seen of point, update hadn't we'll really we you go. to this much

Ronald E. Mills

since your you provide Basin core inventory current you And anticipate you've now moved Alger, some Woods do activity other maybe levels? fill to an et to cetera? Basin, at more, core Painted the rigs once can outside Wild this just starting in Wild Williston, Great. one areas around plant, to And over updated account the you of move

Taylor L. Reid

that Ron, can – and drilling to inclusion, page Wood. that in Painted you area. to half to the we're our in into of Painted of expansion nice you turn with locations from the that move going rig you're complete Wood. terms XXX actually actually XXX we core, core the it's see But core the in right, there could presentation, so on We're if in see went we'll inventory incorporating – Painted Williston, wells X better the second one yeah, Wood for look you locations page in XX net and

be, drilling about think pilots Painted in going Wild in in rigs is run Indian you I we're Alger, to year Basin, going this activity to Hills the when Painted as to Woods Now, said, do where Woods. the and,

places the as out As additional internal into you then Painted and about going at throttle running rig end them year have one plant in five-rig going for the rigs, and Basin. program and gas Wild want forward keep least going talking two at Hills, we'll think Bank. about, like into we volumes. the where The one volumes Woods next comes year, are going Red of to be the and to East we've been to our to branching the rigs be still Indian on Alger, It's

Ronald E. Mills

Thank Great. you.

Operator

comes ahead. Please KLR Group. from Nicholson Next Gail question with go

Gail Nicholson

considered go differential. then much markets? the that volumes shift Brent? contracts premium to in to continue Williston morning, just Clearbrook? think to oil to have And directly then hedging and to you you of Good And markets maybe that premium locked everyone. can versus going at looking the How I'm the is something that any

Michael H. Lou

Yeah.

been you watch of Our that our to-date hedge. but to terms barrels in hedging all WTI, has to continuing Most where markets. premium of we're to get

of get or the to Gulf more Coast are either of most kind Brent-type of so pricing. And that East Coast, that able them the being to at both

you're that one to the to of you very markets Williston is opportunities strong stronger getting those reasons overall. that's get in differentials So have the

Gail Nicholson

February curves new The the the previous type the Bakken on And the actual areas there. the performance. average looking above at just then presentation above driver just looking other curve. presentation, at core what the presentation, I the May versus that is versus of curve recently wells released I'm it was the presentation the type the was cumulative production was wondering in well

Taylor L. Reid

– then other curve and just the And type additional point. of Hills time. some in at at these Basin, as Hills core it's seeing Alger this that wells we'll in core Wild area areas that over areas. time, Indian Indian Hills, It's the outside Indian That's look of we for those that add just you're information is all versus other over the of wells the performance

jobs. have We these outside Basin haven't with data of drilling been Wild more enough to long bigger frac

that as have we So go of we'll more forward.

Gail Nicholson

Thank Great. Okay. you.

Operator

Please KeyBanc. with Deckelbaum David from comes go ahead. question next The

David A. Deckelbaum

Morning, guys.

Thomas B. Nusz

Hey, Dave.

David A. Deckelbaum

of assuming or gains? the the in year schedule the efficiency in on comments to the some some you of of kind you of not of the if And I Are that guess, smooth that original up that of so are kind ahead you of kind weather time the things that quarter, the was in just Just your you out. guided converge where already, plan? rest this back – of release you timing first commented considering savings Bakken seeing the saw year been looking you you'd press the sure but this far,

Thomas B. Nusz

Yeah. what you you really a where in of more did quarter Taylor and There's But some a planned reduction don't that capital job performance to color. have of I had trucks. got infrastructure the or think modeled downtime. group well just But originally. on couple helps the first can it was place, managing things, with a give to we've good the That in in downtime lot Plus a and we move lot. relative

Taylor L. Reid

accurate. Yeah. That's

year, total the were the or the activity of look XX. wells quarter you in levels As the completed at Williston remainder for

out XXX quarter. for to year, if projection, XXX XX about of the you a the wells rest that's the that smooth With

activity. And in so step-up it's a big

Now, terms quarter. the actually we DUC built this fracked, look if at of you wells DUCs, backlog in a

get from XXs, around it that's breakup, up being the cleaned which in get slows or road point. where weather these down good able which this We're much with quarter, and that runway of of that now I go a a a better a of We're during didn't got you're wells then frac bit reflection number up XXs, to So out And a high and can activity. outside weather that sets we bans. we wells weather think, We've past and frac us so. the conditions of bump XX breakups. more winter we also pretty We from us of a at online. to

eight to you're in a the then Delaware, wells, the So, and when for we end little of about balance a see to the for said, quarter year. around going expect, well look XX one that the and quarters, this the at in And you of few did higher six the we probably activity like of pace year next Williston. then we quarter

David A. Deckelbaum

you just or that. one the your the the as appreciate is the on of into either you last color the area Delaware water rig, sourcing going are then you own how program to just versus sort for third-party about And on spend in the for thinking services the about think ramping handling disposal? XXXX for in I with me available second

Taylor L. Reid

time So, is of certainly the a those water addition we've projections rig, at of production, important Delaware. and things that's early one in on the the looking with been

future, an to operated disposal drilling also the well we're where in some well, our SWD can this some additional party. at well. be year. this add And will SWD second we third We'll internal not-too-distant We've capacity likely as agreements We capacity looking got offload quarter.

and Longer of our the next holistic we'll really couple OMP and what term, terms us we've development we're a bigger profile taking But beyond really – So, view of Michael we're a about over go the got services this cover which lot production as year, business. that. years, where water of gives for barrels. this coming a those that and, to looks incorporate have earlier, year midstream the we'll we plan potentially, more we approach of development into of flexibility taking of in send talked

David A. Deckelbaum

guys. Understood. Thanks, Taylor. Thanks,

Thomas B. Nusz

Thanks.

Operator

the back At now to to Tommy this like conference question-and-answer Nusz the I'd time, session over this will remarks. conclude today. for closing turn any for

Thomas B. Nusz

maintaining Brian. in improving again the but and market planning start for And processes and has while top-tier Thank and Thanks, the to our capital cash an in place Oasis uncertain efficiency expectations call. resources team you exceed margins. is great off to joining another

Operator

presentation. conference now Thank attending has for concluded. The today's you

your You lines. disconnect may now

Chord Energy (CHRD) 8 May 182018 Q1 Earnings call transcript