OAS - Earnings call transcript Q2 2019 | Chord Energy Corporation

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Operator

Good morning. My name is Ben, and I will be your conference operator today. At this time, I’d like to welcome everyone to the Second Quarter 2019 Earnings Release and Operations Update for Oasis Petroleum. All participants will be in listen-only mode. [Operator Instructions] After today’s presentation, there will be an opportunity to ask questions. this being note Please Instructions] event recorded. is [Operator

call Michael the Lou, will Thank now Petroleum’s to the turn begin I Oasis over CFO, you. conference. to

You your may begin conference.

Michael Lou

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

have the our call. to team. Tommy today I’m as well on Reid, Taylor and as you other delighted joined by We’re Nusz members of

calls. materially statements our Oasis to Private from advised with our include, obligation annual including These that and in meaning remarks we on any our our statements. include to Midstream your could to in earnings risks subject our quarterly different disclaim matters we including be as conference update Oasis the and statements and on Form well the forward-looking Form be report Please filings as Petroleum reports Securities those to XX-Q. on and releases uncertainties cause answers Partners, the in have questions, within We be Act. Those that forward-looking that forward-looking that believe disclosed our these results both Securities actual are risks earnings described Litigation XX-K statements Reform the others, of and among Commission, to currently Exchange releases

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

presentation, reference which on investor can our website. also current We will you our find

over turn With call the to Tommy. that, I’ll

Tommy Nusz

our Good morning thanks call. joining for and

at Williston to generate development team of excluding cash harvesting execute from The free the the free the level and continues impact our plan, Permian E&P OMP. to Oasis cash flow on fund flow

volume corporate we attractive per well cash which relative budget or drivers drive to level. of should project performance continue cash and to returns, investment, on share As the whether flow, value capital budget our all on efficiency, organization, targets, an margins, return of focus at

in detail highlight points want into a to minute, key but more our a Taylor operational few strategy. will get about and I performance

execute to major program current to E&P free continues expects level development Oasis cash XXXX and in prices. strong First, oil its flow at at the generate

Williston, the executed getting of on Second, weighted second part side, spite quarter, challenging XX conditions, on line well the in to weather of the we D&C during flooding wells and the in the some albeit border. latter

three significant the Third, in efficiencies, surface. drive services and get across sub secure Wolfcamp and been in on our the on position capacity, we’ve to B takeaway make testing able operational and position. A, the progress Delaware, understanding visibility wells we continue and C delineating brought We to our

our the Wolfcamp also second These latter Sugarloaf three on quarter July. came concept We A spacing three our fracked the during unit, in completed other upper and testing spacing early and in were production wells the lower. quarter wells in

mind So, was July that the up CapEx show keep while the in our spent completion in in they'll second quarter, count.

created able we were a small that do unit. Additionally, acquisition Ward X,XXX a County acre in bolt-on spacing to

this mode. now in move to fact, position puts towards all development of In us a

can be This in netbacks flow Fourth, advantage. and seen assurance. provide our cost to continue assets our Midstream an structure

be performing better two we proven years to the the ago, one our for the of said, managing of been side us partnerships IPOed very market. important a for time, some we As risk big component and of a Basin, the it's the win Oasis business business has and Partners focused was a over difficult as in Midstream several on Midstream of Wild all years last drilling almost

ways asset. to enhance look continue We ownership at the value of this to our in

production The the by the net Boes reduced second Basin quarterly Wild experience impact complex. During we in quarter. per did the in quarter, X,XXX some approximately downtime gas day

up averaging been captured production about our second also in day July. in the from us complex impact XX,XXX and running production and last the in start now, some few quarter mid-July have that’s really total with That, July early weeks. seeing Boes guidance. since coupled Oasis will per well completions We has to our had over up The show

incorporate and of guidance, views our well our current We updated per continue range XX,XXX performance, our any to constraints infrastructure account timing, for XX,XXX Boes our to views. completion to have and to into full-year day

are between range oil volumes per We of XX.X%. an XX,XXX to now with quarter day Boes estimating XX,XXX and around third cut

out XXXX. down flat flushing total to generation quarter to little our rate, moving be early fourth But, flow totally things price, to trend bit begin depending continue cash XX%. and our a operations here, oil fourth cut We around exit quarter bit relative to With it’s about and expect oil a the both us expect we volumes to roughly to plan. oil would to up on on

Additionally, projections. we've flow cash updated our to our presentation slide seven reflect free latest of

our We updated have capital assumptions.

related the As price the you crude improved to in to expectations Delaware resulting saw a the assumptions, Basin, in well parts primarily times of working operated our with Williston budget our Basin. the in lower of as highest press adjustment the with as reflects increased return spuds in cycle higher deflation wells increase non-op an number increased program, release, and the two interest rig spending in

covered increase cash an that's All free generation. of but this our CapEx, flow than results by in in more

forecast $XX E&P adjusted pricing. pricing at NGL we've to and a to our business On $XXX natural XXXX at expect now $XX to the year-to-date, free volume million WTI of tweaks We price. million $XX lowered gas to cash the and flow in EBITDA for made side, generate

talked the our revolver, Our intent we've be to point at would cash this in past. excess take about to as

Despite cash and includes business asset to deliver strategic our strong. And underlying a advance flow strong remains to size objectives, E&P we The headwinds, free portfolio scale, which year. continue financial diversity, stands strength. this and Oasis few quality,

call With to over Taylor turn that, the I'll

Taylor Reid

Tommy. Thanks,

the in of We with execute operating preparing well on top remains full continue pack. Oasis XXXX program Williston Williston and for to the focus efficient development. in the our the Delaware field productivity

number XX average cumulative step-out the XX-month were versus As delineation oil deck, areas. of for our by two on to be equivalent continue Separately, slide we seen results our peer. ranked we investor from encouraged

select reflect Williston. to latest updated emerging been data the from have nine the in and eight areas Slides

to see Painted show Cottonwood rest continue outstanding these are basin. which that with North We of in areas the Woods, and the Alger, Bank, Red competitive South results

additional Woods, with production which we area economic view Painted productive breakeven. In validates our low provided the highly history, that the is

these lead current Our for remaining and a the performance end economics Current million, unit. between we the When great these the averages the by about play. spacing costs, work to to well million $X combined well X $X.X and of inventory wells see these in well path costs areas numbers XX average across Bakken per down year. with to

with Switching entire strong cumulative oil Wolfcamp wells certain barrels Wolfcamp foot recently column Delaware, B production lateral. brought Wolfcamp performance of B, seeing to the X,XXX we’re per C a X,XXX in across line and one performing A. We the on Rattlesnake the XH month with with

A X,XXX recent the foot Kerwin delivered XH oil lateral. A cumulative well, X,XXX three-month barrels Wolfcamp Sales per production of

brought three-well spacing test early we a A in July. Additionally, Wolfcamp on

As to we’ll be conducting a eight-well bring reminder, drilling, we’re in a larger XXXX. expect line which spacing on test, currently

volatile and the pricing. execute effective command navigate pricing to early secure reasonable amount tremendous learned a XXXX. on closing at cost, We’ve on develop through We’ve services strategy, attractive a an marketing basis able Forge in well which been asset a since program, will

information is subsurface rapidly third-party non-operated activity, through sources. and partners data with trading Oasis wells, other growing knowledge Our

well. rapidly improving are times Cycle as

to Williston we significant range X-mile days last reducing that wells As with to in our in discuss This strides our were year our Basin quarter, more versus recent originally began being wells the this to XX-day range. we’ve drilled than planned. made first drill most XX-plus-day us in drilling allowed XX lateral has the

We expect the for wells to completions XX to continue of X year.

optimizing capital always, As remains focus our on efficiency.

additional means will in larger we keeping moving rig an well important. the fact associated to development we drop or we mode carry crew forego is with that a little drill-out could are more spending and efficient XXXX, drilling well wells than continuing were testing The we a were three one cost that the these what pad. when we While a together DSU lower backlog in DUC in into

free benefits additional times having Said efficient the for way, Company. less positive program generated funding a slightly are wells cycle in manageable flow with we're these free E&P cash of will Additionally, be net an this the with but cash flow another XXXX. year,

speed as should to we expect optimize development we mode, And times continue million design we’re of In $XX.X approximately four-well development. well, which pad improve as compares be to pad, would to Drilling in targeting cost in well $X.X to to and for drill low-XXs. shift million XXXX. well mid the

asset learned to integrating remains lower since been a this about and cost significantly. XX ago. great We’ve world able we’ve performance deal Well exceptional, class months

potentially or best will Williston. as the continue We the as believe economics parts be to better of than good

in expertise, on our program plan, execute we efficient to well benefits Delaware. the as our from marketing Oasis as operational into experience continue move top-notch close, To around subsurface depth, our we team. a development as focused Williston XXXX inventory

We’re excited and driving these forward about XXXX beyond. into assets

over now call With that, turn I’ll to Michael. the

Michael Lou

Thanks, Taylor.

Oasis realizations remains oil remain strong. costs in and focused our delivering program. on check Operating are XXXX

cash in XXXX. on We deliver significant flow are the to trajectory free

liquidity million the Oasis as times XX, $XXX $X.X million annualized the second adjusted multiple second billion $XXX June X.X only continue with of We Oasis to drawn with attributable borrowing levels enjoy had quarter. the EBITDA quarter net XXXX. with a approximating strong to EBITDA total in debt of of base in

Midstream. to Turning

certain work would Delaware to Xst. We to final agreement continue executing this of acreage OMP for via be DevCo. expect the dedication to We finalized September Panther towards

coming with gas infrastructure to provide the in Delaware continues outcome selection and months parties an the Additionally, process. to work of update on the Oasis expects for the third in

XXXX expected OMP on OMP construction adjusted incremental shortly, Net and detail million direct more the reflects We’ll million and in to was would to on $XXX you CapEx business, Oasis our $XX Partners. to additional $XX release range range $XXX for interest from retained our Midstream I color the infrastructure This acceleration continued more be attributable Total to cost, XXXX. Midstream its gathering an is and and press spending million. of third-party million. to talking on between success cost to CapEx largely plant into to

remainder We have approximately a per floor XXXX hedged production $XX average oil at estimated XX% price of of barrel. weighted the

For added details and the the of of presentation. our additional in investor be collars swaps, can we’ve appendix XXXX, which found

of expected, our the differentials versus strong narrowed done crude great has to as remained crude last new improve haul range, long $X Boe getting realization. have marketing in XXXX. expecting considerably superior the of down Oasis opportunistic end through several In year a pipes Delaware, of the team in continue Williston and on being differentials to a as and took job We to guidance top our differential back per line coming $X.XX half realization. XXXX we’re

parties third aware, Midstream early market our benefits with Oasis was peer mover towards is May. This gas pricing to of significantly since keep securing group. our and its the our everyone deteriorated prices process an from should end have NGLs. and natural strong As relatively in and NGL assets contracts top

we’ve and absolute down NGL come [ph] However, for on purposes, basis. an And significantly. modeling providing differential gas began guidance have on basis, two-stream realizations

Oasis beyond. To to up, we're sum in strong continues execute deliver and things well, position XXXX to in and

hand over I'll the for that, back With call Ben to questions.

Operator

you. Thank

now Our question We the Please will with Whitfield session. [Operator Stifel. Instructions] from first question-and-answer go begin ahead. comes Derrick

Derrick Whitfield

and Thanks, good morning all.

Tommy Nusz

Good morning, Derrick.

Derrick Whitfield

seven your material Referencing conversations recall, upstream of slide this you cash million just flow other and Could CapEx. XXXX assessment? possibly based versus walk potential If $XX for QX for of your announced on that, Perhaps on QX through increase $XX on million in views past outcomes the slide, I any for us changes free confirm presentation. contemplated your Michael.

Michael Lou

right. It’s I Derrick. Yes. great Absolutely appreciate really that. a question,

talked the So, for we oil beginning we were year, year. mid-$XX the of remember, budgeted about a the when price what at we in

$XX. cash we at we talked that of about came you in with you out about As a a environment, that deflation $XX a number. would in flow with budget chart through we out $XX budget, many others, And the a in and came that you wouldn't CapEx see and with February see environment. type And with same discussions talked we in

level pace that you’ve oil XX, that deflation, we year, costs Where prices more, remained have in in the $XX seen this in level bit for flow, higher. free been And would chart enjoyed of of did saw but the the far flow $XX thankfully, free $XX has we've pricing, environment. at lack same a cash million so at level. in essentially, service we activity we've so, been cash a to that And have really terms that more closer

that that. across to scenario, we're hold can as progress $XX Now, you're but seeing lot a of if seeing not quickly quite making, you're both And cost well continue we come at basins. think as we down

just guided it’s a off You're starting bit service now, of little those newly seeing numbers different. assumptions we’ve taken CapEx just to. this we've deflation that costs the but And out

So, you're what differences. we gas also side. on talked of on flow side. and free the probably lower million free where adjustments seeing before Obviously cash cash pricing those We kind on natural some that NGL the about today. of significantly had are $XX realizations is of kind that difference in versus and There's flow differentials the side, from about

seeing you're as well. So, that that impact, number

Derrick Whitfield

confirmation. there Thanks has yourself perhaps That's your investor the for strategic Tommy, And great. then, discussion community Midstream the been to growing fit regarding or business. within long-term of

your infrastructure. quarter, from derived has businesses last Oasis, comments upstream As of I the tremendous the recall control benefit from having

and in addition you half the strategic Bakken that that think to do view importance guys business? progress about you would of Delaware the the the a did note in date, importance However, how gas picture, of Big second your evolving. you in if amount expected in strategic the process currently is

Tommy Nusz

Yes.

and Let and us a to we the me to comment asset we But, important able was volumes. downturn, into that really in it I’ll contracted move Derrick, be really, activity went make Taylor. as kind Wild to to Basin, our to over turn of

a came a a As plant on, was Bcf then to up basin X gas until Bcf in X Bcf the plant know, gas came that X.X on, and processing plant our production that capacity X.X bumped and day, you day. day,

more move in future volumes, been which we've we -- us. start early been little absent we’ve been last been drilling our That in and as so, our blip in had we you of results. out which of move able able July, the to fortunate Wild those to of the to outside tremendously here activity And has based important to the of we've that at look slide years can But, a presentation, lot the areas few have very over activity June, Basin, and Wild on of the really see areas Basin. and more terms will improved

So, won’t in been quite that forward has a strategic the Taylor? basis past. as be go it asset us to as on

Taylor Reid

that you a off dollars, getting you around very find for in the free it Yes. for the we those remember as we spending more in a to feet. was gas that if different very fund very And obviously, side, sure was just the XXXX, with good fast-forward in it downturn, you’ll the lot cash developing is gas materialized, we're of back on infrastructure the What growing, us. in doing in wanted coverage a we're was capture and considering flow very is businesses basin, building spending business out the make when open all it we today, building is, really ahead flows on is time the because value at still first-mover the -- if said, And being of in is infrastructure. a a us, time, we on I’d for alternatives that, investments. its those to the add that guys especially nascent a cautious had was ways building that, infrastructure where and a business strategic that look of positive, and had important were we little being with that and and Wild was gas to to of terms are you Basin the cash conversations place. And Tommy about dollars XXXX, out at really It about challenging to news Midstream spend lot up our differential the plants, dollars the great the as substantial focus

the really big that there's news in value it. is that so, around And great

place you important set still how think do wanted at that very about serves and point piece to is biggest But, Tommy's strategically get us. it about in the of to point. been get up it strategic And we to has this it

you And those anything open As go Company. in ever forward consider say maximize we’re value about consider about and again, hey, would like we’ll think to to ‘XX, doing things. and we alternatives people investment it and for value ‘XX all that in we we’ve and been the the that want ask, and with open it,

about we’ll be so, going thinking things forward. And

Tommy Nusz

it’s assets. coveted lot to asset coveted this build asset end But, be day, assets. we the one for is been do I And would what us of try to At of - other and a our for them. of certainly we this portfolio build it think we think coveted try is coveted And has people well. as what that’s entire across

Operator

go next Our from Heikkinen question Michael Energy comes Please with Advisors. Hall ahead.

Michael Hall

better moving bit a as was what from of, have I that just mean, I efficiency big the really size sounds about count guys. the I completion kind alluded just of to program, a look do XXXX? understanding incremental pad -- I How up, some of is a little really potential building versus curious, little of you’ve And on providing kind sort an guess guess, head more there you changed the for I in kind will like year? the it, backlog out the it like Thanks. standpoint. future as improve of that you Delaware does bit bit. that appreciate little optimizing of pieces think you’re a of like, DUC changing capital drawdown potential a of How function

Taylor Reid

Michael, a of it’s really probably bit both. little

to three-well backlog that As we’re we’re pads. point, we’ve and talked drilling drilling few we’ve going. to with natural about keeping having about, of And rigs increased was this that really a been kind backlog single-digit cycle times -- talking the the up one DUC with

next to likely -- to might low to build You’re low be mid-teens year.

One well. is, be to somewhere one things. now, behind in it on the we’re of range that pad two that’s right likely kind does as so, And eight-well is it a

DUC another bit of to drill you’re and a And follow if little backlog, with need eight you before going one. so, them frac going wells more to then you’re

more pad. build-up is you’re flexibility things next some to here down additional of So, just there that But, a drill that bit year a seeing little us are depending on the going a bit. gives how

we capital XXXX, from And we’ll like about. it those if bit standpoint, into at get level, right so, -- down you pull you that we’ll talked a as be more a looking what’s all efficiency options,

Michael Hall

XXXX? me like in Okay. activity required levels you standpoint what in the remind the look can lease kind And Delaware from a of capture

Taylor Reid

it and -- holding we’ve about X.X to been kind and is most kind jumping got is a [ph] is It’s the and Delaware mode X.X Yes. our be that acres, and -- so pool on of And of development it talked requirement. And in land to it’s really on land -- a all great that it the from the meet helps standpoint. rig efficiency depends that we of of don’t us XX% cadence, about, drill agreement have holds around. there allows to can of you on

Michael Hall

one potential was that to And that then, is, on Is half. the Williston cost something the last to half into room I think, that's updated year? I tailwind that would see, remarks the my in in guess back take you the you back played already $X that in prepared -- mentioned potential Basin end Michael, closer of down you well the million be or budget it

Michael Lou

point, Michael. of range about, factored this talking we’ve that the at we're kind X cost in the that we Really, -- X, Yes.

depending of could a a bit how bit that on a of so we well And tailwind, do. provide

Operator

Johnson Please ahead. with next Rice. comes go Ron from question Our Mills

Ron Mills

guys. A follow quick question morning, to on the Good Delaware.

to the upper the Is you then, that spacing you little You spacing not July. also test said What I second a bit an kind test talked just think you in was lower on move done I on and came know, is -- eight-well just designed test and And that on? when it C spacing of the and spacing same maybe B but doing -- did, the the now. A you're path? test about

Taylor Reid

good Yes. Ron, question.

all test, in Wolfcamp A. test, the The first was three-well it

was spacing, had wells so, the it A back above right feet apart, XXX Wolfcamp upper lower two were we then, well. them. mean, the actually feet Wolfcamp between The in was upper about them. I well lower and And one XXX wells and two A

So, wine rack. like

was in that You -- lower A; wells. feet and had them XXX from one feet middle those then, horizontally, right upper but the above XXX it Wolfcamp Wolfcamp

test, going the in Spring Spring in be four Wolfcamp the to but And wells A. and coming then in four that's Bone have it's a we’ll Bone test of wells terms eight-well the sand, lower Third combination, up, Wolfcamp and A

forward. in at point, tests we're got attractive incorporated about, So, B a about. have We B we've But that number talked as of really C it's -- this and not, looking and multi-well going that test. at the C we we're excited don't

down more So, come we’re the as we looking to go road. at incorporating and

Ron Mills

on Okay, the the then, new new for just Michael, I CapEx. updates seven great. you And the for chart. slide presentation know,

have based kind an prices. still $XX You of oil on number EBITDA

make that seem kind What you CapEx sure an in it is have delta higher burdening from million try just of the the on be EBITDA million even with have delta it does simple of level. to higher $XX kind benefit want that right? the So, -- you to that as $XX $XX does do Because CapEx spending. impact impact prices, far EBITDA? as understand shown associated the I to though I the as

Michael Lou

that way look of The this point. the to right, now Ron. that higher assuming it levels a year. numbers good That's have same is free at throughout No. capital at And Correct. the cost really flow kind cash

free the flow in there. XX think midpoint way we’re And deflation of the start of a -- of But, right midpoint could kind XXX. longer to for and closer there the possibility cash now, all bring less about the you to XX period is with time, of that strip if this XX kind that differences difference today So, to the down, at and you impact has is of the hedges that is line, case it a possibly. in

is $XX the you’re referencing between that number those So, million differential scenarios.

Operator

Capital Heffern Markets. Our Please next question go from RBC comes with Brad ahead.

Brad Heffern

like million be XQ it is be are around things looks the production there guide expected a to I Just what guide expected little new $XXX does down two and looking implies momentum is to in it about for just the if only and what XXXX. wondering CapEx. into was and XQ, those the at related

Tommy Nusz

So, in look quarter, down together coming to fourth And going taper little production it quarter. the we at like and look said is, from it's every we our at bit a everything everything we base on look it when you you is bit we us PDP well number, wells that up to capital capital sets a as coming into look of And year, performance. while line XQ this really, down think to that for really XXXX.

that of at raise, here Wild the really we’ve in we is for number us But, to that one is unit the dial Basin, fully forward. the from stuff and spacing, over factored this XX you The in. would volumes, a say One very we as right to well continue things spacing. look a spacing point. have pre-‘XX spacing. factored to have Everything And a in wells first go of we as PDP our plays we little focused tighter. back kind tended about we we to this tire about ‘XX and When XQ everything the -- XX past think going if we’re the of we is in XX standpoint, really made and behind impacts in ‘XX, about And things I the going parts shift. bit into really look all forward at time. that we talked at is of we as and that there, and is, the this forward drilled it walked think down talked of XX-well per of that were be this But spaced our we kind wells in

little I last on, and XX% remaining for in be say to the to still XQ, in in when a capital, we going of XQ then have capital the weighted it’s XQ. balance you be will touched probably the XX% to our with more look when cadence, then, would be thing about of XQ in you terms which bit that’s And and going year, you

the people XQ are evenly just few and just will more going thinking, will be when XQ fracked and those quarters walls we’ll So, between it to then hey, it’s -- probably because we on. bring a get in work on split

Brad Heffern

you like was question, Michael. the look on approximately it. weighted? looks then, does just a more administrative production it what gas downtime Basin Okay, and got Wild maybe or a Do Wild have like mix And an mix for for commodity Basin it

Michael Lou

little more That weighted, know is how oil don’t don’t a specifically bit much. Brad. number was we impacted gas but exactly that We -- we the know

X,XXX of oil side, that that going way a be in of we the bit but with it thought could day, that. be so, And too higher terms the the that’s more in a to of side about on gas

Brad Heffern

Okay. Thanks.

Michael Lou

back the that July But, now. very plant gas production side downtime on did the plant of part up, is that with is you’re numbers running And that your potentially as efficiently impact right, number that trying and oil well. what we’re the to show is

Operator

comes ahead. Management. Daniel question Please next go Asset Pickering from Our with TPH

Daniel Pickering

to much about spend Michael how you hold do how or sort Taylor, XXXX XXXX, of volumes flat Tommy or money need think capital, roughly? maintenance you versus to

Taylor Reid

volume close And it then, pretty a year can down add this with we what’s start is add that Michael, on flat -- and side? is think about there program in perspective the is And point. probably probably what slightly I at out and -- -- this, from guidance to to just this it’s what what think fact, it to Michael probably to going can capital will and to the talk to going So, for look from but forward, XXXX. like

Michael Lou

Yes.

come is XXX. Dan, And think as year that should So, Taylor I that consolidated that consolidated you’ll number right number see for of around mentioned, guidance XXXX kind next down.

thinking a quarter in be fourth XXX ballpark, I a Tommy think, should consensus that’s consolidated think out on and about position comments, I to talked keep program volumes, bit. in a that oil full then, XXXX about scoped it. have we the his under And growing basis. that good yet, and to And that has I but think is little and that’s things probably just don’t on, depends there we’re that’s for of we a flat how obviously a lot

Daniel Pickering

dancing -- Thanks. or I’m a isn’t sit And the you undervalued stock guess, you’re forward? market’s more a treating it’s you’ve isn’t kind pull doesn’t and doing changes where I about time question, today. spending I for some can aggressive, kind my wonder, given penalizing think program clearly little OMP spending, guess, conceptually, capital or at of Company I if not market that of just about the something looking then, little rewarding the a that guys isn’t on how you you assets something the it’s call got isn’t there heard equity, the how now, we something, of if whether future And rewarding I it’s obviously -- clearly a working bit OMP. the what it monetization, the now, and going levers around for a

Tommy Nusz

water Yes. there say it the of thing Dan, in move we but Williston, ultimately, place, options provide have feel entire news easiest outside in about, that sense. as activity of I we and you is it what talked the there's look coveted as at we makes we drilling When -- as the like the E&P, Wild coveted whether optionality. asset somebody like, start we about good and outside else's side in in a assets, joint that on kind is for assets also of we've is, -- activity what Delaware, there talked that of in portfolio I think what that Wild do a is have have assets we move got the footprint that got on or we in about it It Williston. our it's the But Midstream, we thinking earlier. touches Basin complex, I the that, lot focus coveted probably our And mean, us. Basin if to our a a coveted way whether increases we've -- a

Daniel Pickering

I I it increases optionality, mean, Yes. I guess, understand Tommy.

in that next months comes action that the pretend or Let's so. six front on sometime

nervous down spend leverage? sort is from about leverage? lot the some How You'd handle of E&P? about which cash, external your debt? it are the that? you have on asset paying you nervous your monetization Would non-operational of would for a more you market what is Would cash is priorities debt, seems you like Are that down pay of

Tommy Nusz

Yes.

say the drag. maybe X is as in in think, you've the does X that do as we metric get us And a we’ve even of screened, today's talked world, when you what I X.X. below look metric, bit a about I heard think and Dan, provide is, old past, that at

as on to so, don't which anytime this or to first I place about, the talked right to needs anything we've that? get Michael, you --and in that's to cash, cash that it that's have change market, going free available soon. do And in think sized add go flow

Michael Lou

No.

I that's think paying thing. debt, foremost and exactly is down right. Prioritization first

Operator

ahead. Deckelbaum Our Please go next question Cowen. from comes with David

David Deckelbaum

provided a areas areas, more these had. I Butte South answers that over just one, these kind the you opportunities and really some lot You these add start like towards you're evaluating the do extended opportunities delineate have you these Cottonwood. that of to allocating of like comprehensive as Alger, going you're some at I really of But, to Foreman I looked guys looking a wanted would guess into to see do sell you questions or I just see to as to in tests expanding, of lot to core time? rigs outside, on guess,

Taylor Reid

at very remember things that you We we deal, we bigger results just $XXX with test long-lived million Forge completions a of the time really when these after across you best what at at talked far the was you million originally both. and that now. stretched good saw about we have $XXX they about point So, probably was to the looking -- time the But, as go elected some went sold process, at did around at while weren’t basin, thought And divestiture through they in right they look assets. something that just of one newer, there value. with and some hadn’t was as back

pulled is, So, what's testing testing things. One point. into inventory third-party and of they’ve the economic more it this -- a our both, low price at done core and by

up attractive us program drilling So, Q. of this our as further acreage go But really to it in in really out that makes for we it the was that continued some sets addition forward.

are if to in more lot in those excited open helps about, leverage them, we on or our it’s those then will of assets both. tough we we're And push see value to the out into to tests just tail debt inventory and as placing so, be that of some about we us right And our talk get at having down are things time, out, looking but the sees of acreage. a who those hand

David Deckelbaum

right in interest significant public haven't ton we I changed have seen that guess, be kind I Is stuff like quarter, seen the a that -- for buyers or that are Bakken I outside more I same the the appreciate of transactions you're out I obvious any deals are in on mix there now of or now? private has of of guess there? guess, especially reasons, it guess, still the seeing out side I you that. arena. you guess, some equity of private around side players it on the would seeing kind first

Tommy Nusz

Yes. David, especially Obviously, capital kind broadly, as seen challenged, they think the as that A&D mentioned, you the shrink. capital bit you there public you about access markets a private A&D in Where have buyers transactions with see really you done of on is extremely where has should more more are, company little been market the market side.

seen recent so, some the more And where is that you’ve of deals.

Operator

Palmer. ahead. Please comes from go and Coker with question Parks next Noel Our

Noel Parks

the on more bit I of in apologize at you if whether about event already. the you’ve or was of and thing? of something little foreseeable was touched just downtime precipitating Wild more what could hindsight, it's a Basin, nature talk But, kind random this

Michael Lou

basin. to it's Bcf a with forward didn’t capacity constrained. our but Today, gas couple for of would that plant in place, processing about a the building downtime X.X got basin second we Bcf a all, Yes. one you’ve be the Look, that X.X good our say We in need basin that moved things specifically plant, to question. saw going talk was knowing I We the the is huge in the and of years back gas processing capacity.

So, that all really out played well.

safety budget nice you we online and of with that it doing which we that making and did get for other while the is safely, on team. can kind sure thing is phenomenal we for the were success stressed systems that. The And time on your and plan, us

have of of plants We some because like You success I the season, would just build of downtime, number had of very throughout ours knocking other the type a getting short just did. of on up what some online, of didn’t Basin seen, kind it the kind I’d have Wild weather did plant. of broader it. And that some fluctuations that’s some start-up that just kind of months out up to plant same impact in getting concentration six But, and of call, our of line, speaking, in team, a feat phase a huge got December just what was that start-up kind of of us of kind initial that kinks. on that because this gas we for call of as into time the

it. we and it past think we’re through we’re Now,

Taylor Reid

Yes.

they complex cutter to But, that. and on think more you are that like You perfectly. bit all these and than work a them little they’re things cookie turn

to going months bit correctly and always know trying whether to get a you not surprise. three and wild these of -- months out that So, six it’s have a and efficiently operating or things little lined you’re

surprise. You rather not have that, but it’s not a wild

Noel Parks

was how tell what how long down, the And us you just plant -- actually, many can days? the

Michael Lou

or that. days, XX about was something plus like minus, It

Taylor Reid

Two ballpark. weeks,

Noel Parks

I’ve the Okay, minute. forth be being to or comment be accomplished. any operators from among and much about that in Delaware window other -- that having weaker been of then, great. do oil with acreage just And where closing. curious, out not a still But can going turning for meaningful window there a partners so that a around little on acreage, opportunity heard I of and swaps your might you your or is quest anymore? if was competitors just on there have urgency like, so just a sense

Taylor Reid

in drill front. -- that has was trades on and resulted to done Yes. just of assets, we’ve the We’ve a really been blocking smaller some and we’ve up done since new part bolt-on We’ve and number that successful big of number focused got acquisitions on we’ve focus the of kind the X-mile we been was -- of that XX%, the and to exchanging can move And numbers, acreage, XX% already acreage. moving And that around a successful. up. it’s consolidating That then, we’re got the places continue lateral. in of high

an sell this people assets it in good be cooperation willingness core trades seen and So, may may exact that for to that be to position, and do aren’t to not concentrated their we’ve fit both where not or area. make sense

like that we're going been looks pleased we've going those to on forward. continue have So, it And to front. opportunities

Noel Parks

that what something process we're in the sense kind your that clarify, to it's Just final of going… kind is innings of or just of keep

Tommy Nusz

anything, if anything, of and a activity Yes. maybe trade Noel, bit. look, picked it's actually, a bolt-on if up kind is,

terms different the As instance, very very their you're clauses optimize projects, it’s on Williston their Basin, lease familiar everybody to starts with, capital leases. Delaware especially these with focus the that that with different for have very, and in than spend in operated you

leases people anything, form operated if to focused need didn't trade made it. those it. mean, say we picked is some on a people mean, get I of their -- being I CapEx, as and clauses easy, that mentioned, least it feeling combination the we focused with their at would programs before. and X,XXX but I are never as does I that the and So, consolidate, up well optimizing doing have people it where acreage But to allowed a to tend which just on it's us

Operator

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

Tommy Nusz

flow on committed Oasis closing, for as long-term shareholders. prudent Again, neutral a have continues XXXX. its volatile But, We're to free I decisions program. In remain our in being clear. making environment to cash thanks since XXXX focused oil our price to Thanks. we joining to for be positive We execute want call. value

Operator

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

You may now disconnect.

Chord Energy (CHRD) 7 Aug 192019 Q2 Earnings call transcript