OAS - Earnings call transcript Q3 2018 | Chord Energy Corporation

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Operator

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

Michael H. Lou

reporting financial Danielle. third you, Good everyone. we Thank morning, quarter operational and are XXXX results. Today, our

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

make non-GAAP websites. can measures financial our may to and the references and we in found be measures call, our applicable to conference GAAP this earnings During on reconciliations release

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

Thomas B. Nusz

continue our position. continue performance and execute solid Separately, efficiently joining cornerstone develop deep basin. the for our Performance set inventory on with asset in as quarter you core our our thank Delaware as Oasis be call. and we happier of the plan strong for completed remained could morning Williston across XXXX. we to our up not XXXX another to we Good

deliberate progressing is nicely. measured Our and development program

well on our remained strong, been able target six out The in we've year end partners necessary and quarter. knowledge track to the subsurface growing first laid the completed performance rapidly. secure cadence by completion quality of the we the As eight-well is at services with of to five have as right is of for the year the our where reflected third we plan

have just six total brings currently that three an we have on well currently frac. additional to We brought and wells waiting our on

far. remain a engineer this a points few impressed to highlight strategy long-term I want and this asset you with world-class continue we seen key for we've Additionally, very for to so development everything morning.

efficiency with capital Delaware peers. recycle in our second range well an County, but still and the to updated peer up our guidance our timing done Williston. continue acreage, group, of our in continue as do X% our eastern strong maintaining to stand mid-teens. our in to original net to business of our Ward to also current Williston to exit while we've and reflects our of XXXX, position to approximate continuing flow costs. both XX,XXX productivity and plant, volume We're our year this accretive adjusting We see and capital manner bolt-ons XX and continues rate Boes with a top increase our quarter our through County X,XXX opportunities year ratios net reflecting guidance gas generate to XX,XXX cash mix guidance to Our day. fourth added XXXX the we'll said, rates per XX,XXX acres, volumes to the are highlights position of our tier add Loving among remained within to which Permian. just our modestly to and our investor We're healthy over build bringing E&P presentation fourth strong our out current the a Page successively That CapEx being expect quarter expect free from similar budget acquisitions exit full XX%. previous acres and the growing blocks in totaling adjacent to consolidated we scale Operational in in and execution trades reflect

Our and barrel to to expectations, efficiency oil optimization. equivalent operations, monitoring lease per below operating expenses remote continues including testament the of trend our of a

to exposure market. barrels marketing quoted is to well commonly Our we're strategy team avoiding the as daily and performing premium Clearbrook moving markets

is December Unusually differential Our we WTI. an be Williston but and $X it next early refining expect impact is October maintenance having on the weeks. in as to this has resolved high pricing, November off few of average over been around transitory

XXXX, into markets. refinery significantly our normalize will look they're indicated have rail coastal should coastal fleets, our customers we and which As increase Midwest their expanding demand access further that to

Partners margins and continues Midstream grow allowing risk. to be asset capture volumes, better Oasis business Lastly, manage strategic for to us an important us,

the but third-party job and that Our move processing tightness anticipating as in so well. bring impending great production, market team gas through can it our did the addressing only we volumes not a

soon the plant position a producer in in grow second to stands capture strong gas largest puts Our gas OMP Williston to By will be second end, and ramping through the be Basin. increasingly year regulations. up Oasis stringent gas

its XX% participate growing in a units of reminder, shareholders the own OMP and As Oasis' success. LP

approximately and quarter. a Basin to Wild reflecting in in acquisitions for the quarter Boes expectations, and we volumes increased third barrels production, guidance Oil XX,XXX of third X,XXX below were outage experienced were the Oil I. day Plant at volumes per up per sequentially, brief were all-time approximately over company. the day above the the Gas quarter, an X% XX% the divestitures. midpoint of for Oasis impact produced year-over-year volumes adjusting Gas for high Turning

fourth adjusted online our end Boes by plant, which per is XX,XXX we which our have of of but day, expect the it be to timing second target We reflects our slightly the to guidance largely XX,XXX to quarter gas behind date, month.

intact. major production XX,XXX remains mentioned driver our to day continues rates our with CapEx I earlier, this a Our be year last Williston of And unchanged The announced previously XXXX update. development to the is as the Hills, account from of on exit Boes per of across XX,XXX Basin, Painted XX% drilling side. and completion Bank in budget. basin on for Woods the over Indian and These Wild total our east west and projects side Red Alger

driving growth we're Importantly, capital while maintaining discipline.

cash and expect be flow XXXX on this business year into free We to our E&P positive beyond. and

not knowledge flow tight liquid and we've avoided measured a our by putting In develop into of to this grow marketing Additionally, long-term that above will limited where showing course us. type learning premium assurance strategy and takeaway as performance and net capacity. wells, by to continues ourselves subsurface activity I through continue environment curve. to the asset. operational position internally-controlled pricing direct continues typical in to of access accelerating from remarks approach and with Delaware, to costs market, provide saying in development Well of conclude markets. to a but remains production We're providing the access around tremendous updated processing we're what's third-party front infrastructure my well reducing from has proven volumes the in right weak OMP our as virtue industry our points a and our our partnerships about we are strong curves just we and excited

and year cash focus. margins Taylor. a higher in continue full-field have acreage, years come. Capital Delaware getting to growth be core turn and positive, flow add remains value-added our to position The to execution great and cash we asset great remains to returns. be delivering I'll a XXXX. development major to while E&P growth deliver Then, this to With executed solid well to continues discipline over driver, delineate that, and and We've capital while call in delivered on Williston a results. closer we're cornerstone the company to for our able Our

Taylor L. Reid

plan. strong even this Thanks, to divested we taking the Tommy. volumes. into remains our Performance raised guidance We continue twice of and year, loss production account execute

a In completed primarily wells six During XXXX. at the added still the expect late remain the second Williston, stay in the quarter, around rig and completed previous year. our in guide and in gross wells with core May the we net complete for XXX we in track We eight gross Delaware. on and expect we to to focused our to two wells operated

experienced at day OMP's per outage plant foot million temporary failure. August, gas a cubic XX compressor During due we to a

were the efficiency. impacted. and approximately September million prevent risk third to outage, the similar implemented gas of plant future day August the associated while with cubic October Lost over since X During The averaged design feet at volumes running been the per outage not changes smoothly July Downtime affected were nature. downtime a XX-day has quarter. volumes in record

by total month, OMP's gas gas of cubic With plant providing capacity the refrigeration XXX coming operational from stands Oasis per benefit provided Basin this efficiency and to units, plants and day. second feet later flexibility Wild online two million processing mechanical

the a development remains Turning focus our core Basin, us. lion's to Williston XXXX performance, for comprise and Hills of Alger Indian program. share the well Wild

completed encouraging. and we recently, completion were enhanced our in Just results well Painted early first Woods

the in wells six year. Basin, Central wells Woods to of to continue in we Painted the plan As three we complete Red and this Bank

other Bighorn enhanced addition extended the type the the and wells industry are naturally activity, the play potential fairway two Boe results Delaware, the with to acreage. after early our our completion on continue our All still continue still to well flowing watch In across positive excited core In production. outperform flowing and operators than time our implement implications more about we years wells to X.X curve. million for techniques own and are

use In spacing completing the be in two returns we'll of techniques. We expect optimizing in improve January, lower laterals Wolfcamp upper the to continue one the interval. a and through test completion with three-well to longer and A

you'll the work the seen continue full-field the the ours across wells about and operators' have While Spring our third delineation C results drill other we in Bone towards zones development. primary Wolfcamp We're from still see in and focus will intervals. these Wolfcamp excited A to XXXX, the us the as in different be we

Spring not excited this the and with provides and have we value and so tested are included our was in Remember, example, Bone upside. the results. wells two acquisition far For on significant drilled second interval

job to coming year. in are differentials, front, team the reduced summarizing half On the done differentials second the continues team years LOE averaged LOE will online We've guidance we this job come. of believe Williston. the $X.XX the Boe. for operational alleviate significant has long-haul $X fantastic in great for Boe volatile, of did coming towards the execute Tommy Delaware, per but to our $X time well. per guidance of In crude On bottleneck end third XXXX a our range the the the cost marketing to low pipelines

Gray in XXXX. XX,XXX to quarter expected is a we've which pipeline, online committed As a of reminder, come barrels fourth Oak to day the the

XX% slightly deliver along should we exit growth. QX XXXX, As programs issue But year-over-year our some XXXX, and look update formal steady Williston and thoughts. to with here over about guidance In are CapEx we plan the rate averaged on to the rigs our preliminary the four in Bakken in Delaware. February. volume Permian We side, one-and-a-half in

complete In we around to end our the for crew gross and this soon Delaware, our XXXX year. track In dedicate in this plan around We we slightly wells a towards in And rig In operated XXXX, thereafter. count completions. half to in rig second to on of higher. Williston completions fifth the seven complete Delaware, currently track gross XX on XXXX, to this we're third are Williston, XX expect the completion operated wells of year. XXX add adding expect the And to the year. be the the approximately we're we full-time

Given Delaware. more by pickup is increase spending activity driven E&P Delaware, to moderate pronounced in the and activity the expected in increase Williston year-over-year, in primarily the

move As about we can to basins, XXXX solid are results you out our our into Williston Permian see, we close programs and across XXXX. excited both and be continue and as

the a is on give of and will you Our more over big I part that will Michael that, now program next. call color Midstream turn Michael. to

Michael H. Lou

Production in are capital efficient growth growing a manner. remains Taylor. we strong and Thanks,

being Delaware. the strong. graded and this base year business our we and divestitures high project We a we Liquidity the free in new on of E&P bolt-ons recently cash Additionally, through fall our positive flow completed Also beyond. in asset XXXX series redetermination. remains

X.X $X.X Oasis years to was times at had the committed net billion a base $XXX third only billion of five quarter $XXX debt Oasis Maturity drawn $X.XX total to annualized to as EBITDA in of XX. XXXX EBITDA Our with million with from third adjusted closing the extended September of quarter. million remains date. borrowing with multiple attributable

We As which for Taylor remain reflecting increased Access range use slightly realizations. costs led to Pipeline reduced this gathering better the our expenses, the the end in guidance the we Dakota a noted, time third of operating quarter, towards increased year. and third and marketing, guidance bottom of transportation

differential another end slightly quarter-over-quarter. about Our was impact, costs guidance all-in per $X.XX third than our way, WTI differentials this off of low oil flat of sequentially. DAPL increased oil per barrel of quarter better the barrel $X.XX And range. Said were essentially including

Just hedges program, our to to hedging update you continue on we on XXXX. for layer

with $XX capital This collars upside program and plus. capture an price environments. We allowing average while also protects of floor XXXX to in $XX our of have in added price more strategy lower environments us in higher ceiling

commodities. general most into the have our forward approximately capitalize two-thirds we market at with end, and to to build by attractive look to there. year update, Oasis assurance multiples, year deeper Midstream, last opportunities and production agreements a rule, different Since our Diving we're for business. third-party additional across we flow our As like to continue we hedged base and asset additional of continue ensure secured develop of we've way on

continue As processing effect remains detail gas this be below elaborate work requirement a state into OMP's the Midstream kicks of OMP XXX also success front. to OMP indicating call press to and through on month. data should continued we day over by to XXXX month. more many months, plans, this in the rate second I color our for the our We'll reminder, of XX% several more million talking a a opportunities XX% only the would on the the past the on direct release available well To tight, be the Midstream on capture with that end line us. on plant Williston in shortly, you

Midstream As it reflecting gathering. Gas would drop and XX%, associated significantly Plant CapEx of year-over-year the steady-state II stands, around completion

All we're Delaware track the the which deals, exceptional currently However, to that potential year will of the Williston continues well increasing capital including an in execute infrastructure and XXXX. made in tightest provide to investments. growth, the for in third-party market additional financing decisions XXXX resulting in productivity our best-in-class to basin. targets The and has be months this growth forward Final opportunities look differentials year. increases the delivering lowering we there pursue the efficient incredibly across are many puts and play on on Oasis. to team throughout projects evaluating and the updating been coming some to costs, production early us

with outlook While With plant the for a Danielle questions. minor over the we're intact tweaks making back with to to fourth hand the XX% that, few quarter for gas cash flow. timing, growth remains I'll the robust positive call XXXX

Operator

will now We session. question-and-answer the begin

Please comes first Heffern ahead. from go of The RBC Capital. question Brad

Brad Heffern

Good Hey. morning, everyone.

Michael H. Lou

Hey, Brad.

Brad Heffern

stay XXXX, more would you if recently? your can the you have commitment on those, front, about seen or relatively in your talk On crude traveling traveling how been takeaway volumes to expansions And Have you a uncommitted then are pipeline volume? rail? consider of would making Bakken them on Oasis there

Michael H. Lou

a on of things the couple side. differentials Yeah,

incredibly does keeping of basin. team, in of where some strong we the to we differentials Our job the think, us get best an marketing

You've seen that quarter-over-quarter.

the that see quarter. again, fourth You'll we in think,

whether that this, we and markets. of a Clearbrook seen, You've of part, in some the mentioned or refinery lot so and you've some But out it, that volumes and Clearbrook to of those it's rail. gap seen bypassing Tommy pipelines don't local most because the turnarounds of we're the dislocation move for kind market through

So, you've you'll spot pretty some even in seen differentials our market. continued stay see that tight, dislocation to that though

coming bit early of this are and seeing late additional you a next rail into in an So, year. year quite

provide and you get at makes about the comes time will mentioned time. and Historically, more whether heard we're yeah, at increases, it see we'll those available that to it, have a increasing that not done of potentially coastal we lot term it the or of people basin And availability, looking it lot we look continue always to of a think if pipeline having each pipeline continue markets. should space. but access or certainly to kind long haven't sense we So, some and, at

Brad Heffern

the And there's might sort program, see when of you then you the sale sort that. on asset give of we for this then $XXX if level done under or can still under update processes guys talk thanks a about if at can And way? are to little you million first drop any Thanks. on Okay, OMP?

Michael H. Lou

Yeah.

good where On year generation, side, where out been side. where with has I pretty said difficult. call sales on from the of asset really about divestitures feel sale we've the We We the is what are asset feel on that year, the the increased the sheet through flow good market think we the cash balance our we oil our is. last price about come beginning incredibly

So the Williston. right not now, we're on anything additional side in that at looking

continues attractive right yeah, Oasis change, drop, on but the for side that OMP the now. no we that for future, be On on it timing side the something raw to update no is still of think and as side both the

Operator

next of Energy. Please from go comes The question Ryan Simmons Todd ahead.

Ryan Todd

obviously spend, flow? that funded? spend Thanks. year, funding how the capital think a OMP should of side, to regard the on would on – you about talked CapEx Midstream – on the – is And maybe from in relative spending, cash a up to relative Great. be Midstream to potential about Maybe with that side E&P Midstream how just being that drop E&P terms potential cash flow we the positive or next would be the would free follow

Thomas B. Nusz

Yeah.

Midstream on out Altogether, was year, when back $XXX spent there OMP, this we Midstream So by we had about million $XXX-ish the side. amount about the million.

XX% rate a less it, is than what run we're that year, call basis. that it's, Next saying on

$XXX be looking what when spent the MLP in the or neighborhood. Oasis's portion the as side the type million million less somewhere you about by $XXX at range. So in think be will to $XX-ish And OMP, million million to $XXX will somewhere it Midstream's start

exactly So, you're right.

really overspend that by OMP. next this funded to and year be expect We to drop a

again, a we expect have update do that don't time drop-down once we over funded to on by that of all but So any yet, timing be process.

Ryan Todd

if some should funding And how potential additional for that? we the the of think showed side the on Midstream about growth opportunities up,

Taylor L. Reid

But said best is is does that growth evaluate continuing in the fund we've where eventually building this is. it building to dropping it it's fund past a We're can created don't continued still evaluating going down the MLP we've MLP parent true. mean forward. done What figure lot out, We of to Yeah. the We're we'll in and and that that Certainly it future at so out directly? that. know figure to this at it hold we've place point. what that the or

Ryan Todd

put Great. Thanks. of on your data But that on there? well production the some Painted to definitive have to your I strong mean don't follow-up Woods, you a bit seeing little Maybe have inventory data could and comments talk on results on what one and out only flows enough relative what early wells expectations about realized – can you there. yet you're

Thomas B. Nusz

Sure.

one so. our flow from it's of for wells had older it frac. that what So, outperformed months, been Painted we of continues we've seen conventional only on the But only or have and couple a this months production Woods two-and-a-half it's more on wells to maybe at point and

currently frac a doing. style we're was slickwater larger this like So,

And completed on where say that in then year. and we'll it of offset presentation, to suffice So, the it's we've there's seen But area top operators that map historically. the then next if that just other our you slide we've that, well look more shows it outperforming really a about to us. what at talk

that on reinforcement with the all wells. the enhanced Woods that line to our those this And wells really core are of move. area. Painted for in cover expanded the completions that other so, in we It's was well third-party area. is of basis part really And And it those just performing

late to our a couple and like And in this on the that really have wells core probably that some of So, going of it to bring acreage. we'll quarter. that of production with moved we supports we're said, other own complete

of able new next into those So, we'll year. we as all to be wells talk three go about

Ryan Todd

you. Thank Great.

Michael H. Lou

Thanks.

Operator

The go Stanley. next Morgan question of Venker comes from Drew Please ahead.

Drew Venker

new And us everyone. that follow to Hi, sense if your just of takeaway, Are into activity Bakken Is additional it coming want play you around? on cars can in your pricing how I differentials up Bakken that from. rail cars, or sensitive moved is XXXX? activity the being to basin? then plans where the capacity a is plans somewhat do give those the in the in

Michael H. Lou

Yeah, Drew.

side, a basin of areas. transferred rail But takeaway the understanding a yeah, a that that certainly the be there's from Obviously, But coming are new in. arbitrage, today. additional will, combination. railcars our there's if on would will So, being what lot there other is also things in are you the be higher

in So more is to more and going direction. that move

tight next plans remain for is throughout commodity number of that's in we even well remain But So, our throughout we keep that kind the our changes Bakken differentials side of like different year. and the future. With the come prices we the pricing, think with of in Bakken in generally flexible a for pretty the Bakken exactly kind do to now, that, rail year. foreseeable as on think additions laid next the as basins. is within will plan program out, going right in differentials and up side how of our we pipeline We tight kind pretty

Drew Venker

Thanks that, for Michael.

takeaway you it's whether to can additional about you capacity, follow-up, pipeline? of or a to As some whether commit that interested talk rail would be

Michael H. Lou

we stayed done Yeah. Historically, some away and into but that available and of those the time. still there's some of long-term we deals we've lock have deals from medium-term long, all that's some

some are longer was look going of not constrained mix We're stuff. will there a if light availability of opportunities. seeing some some take at really of kind be yet, a longer out term. but and thought pipelines with that coming We'd little certainly We're those look and Basin term. that the our to are we we we it on the medium-term certainly bit obligations a at out so And kind ladder of keep

Drew Venker

Okay.

one for me. more Just

XXXX, you it or activity want between you how longer beyond As beyond and the spending you term program and however the see the do XXXX Bakken? about mix Permian or in rigs think the of to define

Thomas B. Nusz

early really were Williston something like exactly delineation full a seeing that out is is, for of to talking the that in talk look because to Delaware the about But to would increase I the we're the be slight a to trend subsurface XXXX mode XXXX the going more from and question analytics pronounced this not It's in really in the you're think increase like. XXXX we Permian what in where going really understand and expect phase to development in and XXXX. XXXX

you're a be clip, said go. uptick we XXXX like rigs most Williston then we'll likely, So, likely higher and going to but again in I in see at four slight a as

Drew Venker

all the color. Thanks Okay. for

Operator

comes John go of Raymond James. question from next ahead. The Freeman Please

John A. Freeman

guys. Hi,

Michael H. Lou

John. Hey,

John A. Freeman

activity at the look XXXX in. completion at the relatively appreciate basically plan, point all is and which I added and When the locked drilling XXXX I looks color like this on it

service all before appear budget remaining consider would out with is only items inflation. non-op you it So, the of and kind February activity formal to come in basically cost XXXX to the

Just are perspective, a about from you level high maybe all thinking how those?

Thomas B. Nusz

Sure.

down. bump respect service things up. we've seen pumping flat pockets that at to going not a costs. side this the at small move lot pressure to least costs, with we're is overall the We're be seeing optimistic service First, what on that of to in point There's of it's

continue big we're but that. costs monitor not service to for in a anticipating XXXX, And move so we'll

are are going is have we're their a to other engage do, with think within to programs, do like we kind the is get just focused that operators our to non-op, But based Everybody on going respect on grow we of of partners which size bit. all working spending interest with and flow. programs Now, their to of we cash budgets. normally

amount. both you're in up may think in more in an You least huge the but of not activity see see than little of them increase Williston, but at going be I bit, a to terms a would probably Delaware a would

John A. Freeman

appear slide kind five A/B previous recent outperformance looking in relative was A on the that it of Great. the to type shows XX And same presentation, of location, something level then Wolfcamp different regarding last those lines. five did. materially at eight the kind recent if if the of aren't maybe anything And the most along Wolfcamp either Delaware, I'm just does outperformance the curve completion there's still design, I wells those wondering showing but it in the wells

Taylor L. Reid

Hey, prior one still just could it that John, flow. overall graph is an well of that wells. some that out sampling about put the in by well. continues to That have time well performer. had was in well it's impacting wells you outperform outstanding bigger continues one type you lot dominated more we've just you And we we as out in you and that curve, to the see because not showed really The just the of that when talked a that Bighorn original a time, outperformance of got was

of news, doing good grouping a they're seeing well. You're and all wells

over some we're So, you wells maybe we're get type some go, bit curve there. under still excited that overall about want seeing your you be know performance. while to outperformed, the And how and results programs little you a they

John A. Freeman

guys. it. appreciate Thanks, I Great.

Michael H. Lou

Thanks, John.

Thomas B. Nusz

Thanks.

Operator

Parks & question ahead. go from next Coker Noel The o comes Please Palmer.

Noel Parks

Good morning.

Thomas B. Nusz

Noel. Hey,

Noel Parks

what the Bone I about is for second your wondering the and encouraged Spring, there and sand. just thickness a of acreage was about it's said you I you'd How basics far. you're some learn prospective by so that much seen assume

Thomas B. Nusz

expand footprint the there. continue second what's prospective hopefully for to to got And of the we've Actually, is terms drill Bone a it, to Yes. in shale. Springs

some early across a Two if but it really and it wells, could potentially, not time, be they all got acreage, nice of a do both broader add So, more if bit the quite drilling. of to incremental over good inventory look it, area. works but

Wolfcamp just focus it's depending in and we above of the on thick Springs, then do of it the the where on the about with hope the to column inventory. more testing haven't prepared just most you in A, thing I we B are. got So, and in that comments, in the talked you've the been then indication a really and drilling of of below C kind more and bring And as as there's the been and Bone

So, it's we ahead a good that for indicator us. can of kind think things of be

Noel Parks

Great. on might touched this. think you I have And

missed on and also little Sorry, Bakken give enhanced about I improvement, results Red you're it what the nature talking if before of completion from being Painted in at a the but Woods bit up detail of when seeing? could Bank, the just wells the positive the you're

Taylor L. Reid

Yeah.

the So, and the at back. time is of point this one it's think indicators way really early good the I are flowing wells

the in is is Woods. Well Painted Florence that this So

a for three I and historically it's months. The As to pretty amount quick. under shorter a areas said, flow. continues time pump little on those of Wells in been flow would go well on

are more So higher these like seeing seeing bigger for lot wells longer you're – times enhanced rates. have at we of completions seen periods flow – other areas, a in you're

in in on WTI. is return so below core And XX% done has is or of so at that the what $XX The provides in terms was now an $XX, what of we between is – extended you what in it's core those – as wells. gives I that results, previously the core a said that, And the returns bucket. moved extended done into before, core of and of improvement rate we $XX idea terms define how

Noel Parks

And Great. quick I had housekeeping one just thing.

I Delaware I And $XX that that was that up Basin. a like Just on might acquisitions financials, just a was was I to? Thanks. saw bit. cash saw I'm the ticked million of expense exploration wondering assuming the also, what item flow. have pertained kind Delaware if looking of – wondering at the

Thomas B. Nusz

that on in And the acquisitions anymore, are earlier wells some couldn't so. ones that pre-worked the about the are on deferring. wells costs write-offs the activity up ended of then we exploration we we carry and some that those Noel, talked Delaware

Noel Parks

Got it.

Okay. Thanks a lot.

Thomas B. Nusz

was the the the stuff, all Yeah. Delaware, That was costs. exploration in predominantly Williston, All land stuff in exploration in Williston. the acquisition

Thomas B. Nusz

You bet.

Noel Parks

a lot. Thanks Great.

Operator

question of Tudor, next The Please from go Holt. comes Lambujon Jeoffrey ahead. Pickering,

Jeoffrey Restituto Lambujon

Good morning, everybody.

about thinking a XXXX Delaware-specific for horizons how there might talked you the the so the on about capital timing think across how program, rough sense we strong the about I'm how far. wells, any As defining Spring different Bone thinking set. and just trying to allocate you're you opportunity the thoughts get that about

Taylor L. Reid

Yeah.

be wells to don't to in I a and to Bone breakout still incorporated in in but between still in those be intervals said, and We're majority We going testing XXXX. spacing the tested, it Spring then the but the program C. XXXX the also seven going will in specific going of we'll not A to be, be only it's intervals we're wells like – of B more So XX XX tests. additional some from will have have

program. we're for up setting XXXX ourselves So our development

the other set is what So it's to it up going we're bit mix exact development. to and up you a than tell the a ourselves step little early XXXX for

Jeoffrey Restituto Lambujon

on on Got thoughts far as make infrastructure more so level it. you coming there? what in sense well then high early on side, detail is the this potential I But know And most might as XXXX. products any evaluate the the

Thomas B. Nusz

assume about you're Delaware? Jeoffrey, I talking

Jeoffrey Restituto Lambujon

Delaware, right. that's In

Thomas B. Nusz

gas. really looking kind We're Yeah. oil products and water, in it across the all of

probably the dollars gas side There's the too. that across on evaluations gone crude water all making But potential even we there's have to some we're it. least and of and from – side. think so, opportunity competition the And

So we're of look taking a at it. all

Jeoffrey Restituto Lambujon

Got Appreciate it. it.

Operator

comes question ahead. from go of next Please Advisors. Heikkinen Energy The Michael Hall

Michael Anthony Hall

morning. Good Thanks.

Thomas B. Nusz

Good morning.

Michael Anthony Hall

guess, I pad guess. are talked you're a I in first spaced you pattern? a or three-well get on And working. do the Wolfcamp follow-ups those What's the results Just tightly the that? you Like wells? we three might from how Permian, about when think that Permian A few currently

Taylor L. Reid

got (XX:XX), a in wine to rack and is in top minute. upper, spacing head So get Wolfcamp it my second, here off that Michael, of to A upper, don't tell the the exact a lower the know pattern you I so lower, we'll try of sort one drilling lower two lower. and two you

Michael Anthony Hall

up as a I Okay. any saw in the That's in it then, guided and fine. just differentials bit flowing were little have the you in specifics looks takeaway I was And you the do kind XXXX on of Williston, part on how DAPL how thinking about much that. like on on the MT&G and line that seems and

handle to financials think on about just So, trying much in flowing how just are XXXX? a I'm and that get how to impacting

Thomas B. Nusz

Yeah.

of I think a third Michael, quarter, was little abnormality. the an the in MT&G bit

that's spot of it us the MT&G in a essentially extra more Think volumes talk line. is and we increase as decrease And tried on other offset in moving to the basis about each about through basically that that so, differentials what some marketers and DAPL down.

got bit and you played just a of kind third we're And still you you so, giving out. details a of it little the how that second of It basically just and held transfer differentials little quarter-over-quarter. very strong flat bit to from

differentials like just first at like range. to looks MT&G you the range think I of look way more guidance going best the forward, and – forward look is our guidance our half Going

quarter not – was it's this think of true kind So, third going forward. I that's But don't there anomaly.

Michael Anthony Hall

shippers moved have this you is top that being or committed And third-party capacity Okay. at do through on point? all

Thomas B. Nusz

We've can through to do DAPL we point got how small production with moves it's all is. portion other day and pricing of coastal a still markets. the parties this on coastal XX,XXX that through flow our a you Basically, DAPL, along see but rail bit a strong in markets at it Yeah. our we so think quite almost to

Michael Anthony Hall

a that more there? coming volumes Okay. the the That one about year. timing in had guess, the the likely any on the the pipes is to I of assuming Is then, Permian way that the the usual even-loaded And back-loaded the makes with – it cadence that ramp in the part seasonality of is I with to see of we kind Is Williston? other fair and there back on of nuance sense. that next year, was timing just up I'm pretty a think only

Thomas B. Nusz

activity a cetera. always little winter of Williston, the bit see because breakup, et a Yeah. weather slower first in half of and you'll

on going And always then you I really, really said want be bad we and think backend-loaded. to don't backend-loaded and is to I to bit about strong little little the But differentials more Williston right around XXXX into a end should the incredibly bit going the XXXX. exactly like market. a of you so a think think are it's be into you're that more going And you pipelines, into constrained Permian think overload volumes side,

Michael Anthony Hall

Okay.

Taylor L. Reid

the on same Wolfcamp, the And, in it's well three-well interval. the within the Michael, back test spacing,

the lower spacing the interval, that's Wolfcamp in two XXX-foot A So that between those wells are wells.

Michael Anthony Hall

Okay.

Taylor L. Reid

A look A between two, those so Wolfcamp between and lower between the it'd XXX Wolfcamp well, it's two upper be you If the right wells. well in the

Michael Anthony Hall

Perfect. That's helpful. Thanks, guys. Appreciate all the color.

Taylor L. Reid

All right, Michael. Thanks.

Operator

Mills Rice. next ahead. comes Johnson question The Ron Please of go from

Ronald E. Mills

Good morning.

Bank to activity since as you Hills today fold how of mentioned you've about Wild move you Williston Indian areas had Just recent Red and Basin, and it area relates back? activity, of Taylor, in those do shift think you Alger, Bank outside Woods your well. the Woods as focus Red and activity in that And or you most or do incremental the three Painted Painted talked into

Taylor L. Reid

Yeah.

the and Wild a Ron, going Alger. the dominated program then Alger, shift kind to of north is be really although So to Indian still of by Basin, Hills part

until little more delayed North following said next going And so going the in next set and us you're these and but activity, to you're would probably Woods, to to rig going going Alger, a then up longer the that then over the and probably to you're run there two-rig results, we a in be Wild one the with during rigs have like activity. range, to year Painted Basin, Hills year. I mostly two continue you're then into we get well year for Bank with year, Indian late bit in have of Red may and

Ronald E. Mills

be And talk the each what standpoint, in it you Williston but Great. more count up CapEx a could in in will you bit clarify would spending year infrastructure given go Delaware high into side? be or in you spending either a Mike, again, you Michael, can XX%, you as little somewhere out then the evaluate as standpoint, from E&P that any didn't and read from If about it opportunities or area increased that down that talking the build about rig when more just you're incremental of maybe But growth Okay. initial between? this increase could the area. an infrastructure clarify on as spend infrastructure your would

Michael H. Lou

Yeah.

based – capital think to you about and spend Taylor's the if $XXX-ish activity around $XXX of of E&P $XXX So Tommy million believe, I on million, comments million levels.

on D&C the mainly You side, see activity. that the Permian could of obviously up because

So $XXX don't as, think million. about know, million, $XXX that I

of of side, MLP is Midstream consolidated said is we've year you capital $XXX by we've little the the million spent or we've the the And the from in of saw a number the year, $XXX And of what doubled on million, what number kind – what So million and and right, Oasis, Midstream which this is XXXX. completions. is Permian then that line kind was by said $XXX million with right or in this $XXX parent. of the over to

be Next year, it, million XX%. basically down we think that call by, could $XXX

spending the both So and MLP up the end parent less.

so that projects. is upstream – about all So then million then XX-XX Delaware the $XXX company. it's And parent of additional we've Williston forward. it larger the by going if of outspend XX%, the down what about going and be MLP said split and as think company or And total funded and between that's drop-downs – is kind by deal to without the

dropped the that funded or call. and bit MLP on Both so at our down that and do Those that. of give figure to Delaware, we'll there's still so in capital deals. come a things color going got and that little still capital we're are We've efficient. parent potentially We done good eventually the over February continuing to out some And to is just some be possibilities, them and time We'll super level. we're be once going the evaluating. are at evaluate straight think out good efficient third-party to is more again in

Ronald E. Mills

that also add a Taylor Okay. the Delaware, you'd Great. third in area. move And rig I the – probably a mentioned spread once frac think dedicated you to in

to is a spread frac that market, expansion on state additional started that's to of you Given be going have contemplate the more likely third-party side? it OWS or the that all

Taylor L. Reid

to parties we're and in business of incremental supplying the a activity option to is our third regular downturn, XX%, point, as in of of And the activity. out this going have we're the the in are looking the build part we We'd our there. at to at then certainly down that provide all third-party. that about talked one thinking we've approached capacity. it But piece, like XX% we've of to a a way and be as want say market, past, – spread So, own and have about

– that well. So decision factor all we into stuff do that it as whether when we we'll make

Ronald E. Mills

else Everything Great. Thank has you, guys. been asked.

Taylor L. Reid

Thanks.

Thomas B. Nusz

thanks. right, All Ron,

Operator

The of Please John Seaport Global. ahead. next Aschenbeck question comes from go

John W. Aschenbeck

questions. my morning thanks Good for and taking

capital how cash just one, to it Is preliminary incremental within or that wondering potential first was my simple if there spending the that I year, the now was business would should added acceleration previously to next I more E&P And I on Thanks. I then keeping to and with that's XXXX up as believe to Permian? flow, to Williston. be you'd add For if you've the still case the as be said wondering about commentary. E&P we follow be was scenarios. was toward hoping inclined the directed think if

Taylor L. Reid

well flow. around fairly in the we've drilling the XXXX, price deck of excess that flow, cash we're to options think ability deck. more program we the a on year. spend And We've there. event got as about and a spend and talked the to about dollars go the conservative with a necessarily into lot So, we've price a the capital going cash that, need excess like generate done isn't this establishing lot program program's above runs It's

to debt, can times And it below continue net focusing get on to debt-to-EBITDA. that down from range – really paying accelerate so, move X

As on additional then there's always acreage talked Michael if well at quarter. on But have about and X.X front. pick that already to side continue cash we've mentioned, focus to on flow this we'll so way times, the ability up we like that excess we're our

really not have we necessarily want lay We strong to to execution that program that the sure no, going program. out. on increasing the make with So, focus we

John W. Aschenbeck

color the there. Okay. Great. Appreciate

get acre acquisition. I follow-up, my to relative for transaction. like the little detail solid recent more a was like to an hoping so, And pretty on XX,XXX price seems It seems Delaware a

of I Loving if wondering where of so able terms multiple curious an existing get production? existing So, ascribed in more production was better finally, And operated to County. also was more if acreage a increase so value your I was how a if working just gross to footprint? the hoping it to located, in you're was idea or interest this was And of I was Ward increase much or units, on in was

Thomas B. Nusz

Yeah.

is basically gross think XX,XXX it'll not operated. – sorry, increase flowing I probably of that acre PDP. PDP to position. a to barrel, There's producing lot but It's And about perspective. contiguous think of about a So think an our good the there's way XX,XXX from number when to

John W. Aschenbeck

Great. Okay.

located, the fair even just Loving. is of it was terms In split to between and Ward of where acreage think like a

Thomas B. Nusz

a little of a pretty kind in basically within It's even bit in a bit Yeah. little and Ward. Loving It's split.

John W. Aschenbeck

That's Great. Okay. Thanks. it for me.

Operator

the closing over This to Nusz concludes Tommy now remarks. our question-and-answer turn session. like for back to conference I would

Thomas B. Nusz

low-cost up, deep grow execute inventory opportunity to the the up. our Oasis continue to footprint long-term Great. position to Williston come. on with driving Thanks, In Delaware, we and for in delineate open as accretively our our windows efficient plan growth years it of To sum Danielle. our capital continues

joining for confident development extremely moves well and in that our industry Delaware. the Thanks across Permian, note, the operating right to begin as As Williston experience that we I'm ramp the have the On differentiator ability. be we an decade-plus place will call. developing important us serve again in will the towards and team up our

Operator

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

now may disconnect. You

Chord Energy (CHRD) 6 Nov 182018 Q3 Earnings call transcript