OAS - Earnings call transcript Q1 2022 | Chord Energy Corporation

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Operator

Good day and welcome to the Oasis Petroleum First Quarter Earnings Results Conference Call. All participants will be in a listen-only mode. [Operator instructions] Please note this event is being recorded. I would now like to turn the conference over to Michael Lou, Chief Financial Officer. Please go ahead sir.

Michael Lou

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

make our also you earnings also and We that, over I'll call, non-GAAP applicable reference investor turn this to to the our the call to website. which our we measures releases in measures can reconciliations During can found current find With may GAAP Danny. on will reference website. on our be and conference presentation,

Daniel Brown

companies accomplishments people I've thanks organization proud with made be many with two everyone, first the like months be together. Today got give Whiting operating and address to that to and those update their your Good you board. a employees and possible. visit two also we'll across dedication. talented pending which and financial and of and first But for of the of quarter employees for stronger morning, our organizations the XXXX joining discuss had work and this impressed our on to moment an Whiting results past for Petroleum. with merger will our strong call. merger both take I'd All the and been acknowledge should our opportunity hard of over course had the We've

as and strong to position by excellent performance absolute cost operational future number good the the put exceeded are back the trended an company Volumes from forward. and performance of were With uptime cost a X% strong reflecting that, quarter wells per Indian report moving we Hills the appreciated that turning both and offline lowered group an of combined most and we've price exhibited the brought in Simultaneously, for first last modeled on very much unit I'm late continued volume perspective. will guidance were differentials of around that efforts to pleased the both success Your high-end from basis. better than wells quarter, year. and online strong

As first early a result, standpoint, first Basin in over the with South free at Wild million the the we we and two South quarter. flow expected completed Antelope additional shortly. wells area wells be to From seven Nesson and of and $XXX approximately cash out cleaned completed quarter, wells organic encouraging. of tail between end a development performances These the generated were

remainder but As in work of the additional to wells. our scheduled through end return our has the and which June crew XX year departed complete completion expected, about program, is is to

attention late so snow to mid effort. unfortunately, infrastructure, came damage affected our many have significant in And moment with Dakota which to Turning event. storms winter to winds an the spend heavy which I in discussing the was quarter, power extraordinary along to a hampered This severe the and North has second truly recovery want April. the

the month. second have to generally expected XX% essentially still production we are about currently impact standalone this of remainder end half of second storm, basis. reflects outlook the impact, the unchanged as a the have or result, and the from we our been with guidance back XXXX be our at not and but quarter the process by a backup expectations we reflect Again, are in As believe bringing of February to appropriately adjusting previous of volumes excluding We're our of trending adjusting full-year our volumes the guidance online better pre-storm planned. on is online than

As we do service look availability forward, remain pricing challenged. and

Oasis steady rig with to has our program work required equipment our and Fortunately, proactively been providers plan. a running secure execute consumables and X to

and Whiting, current quarter discussing as estimate. you time, items, subsequent work going in is being development toward is the basis inflation pervasive on merger we the putting the value of year. to quarters, to pending Oasis As combined most the are from guidance and from budgeted operational financial which believe plan and confident operating a a with see Whiting we due outlook, capital Oasis will capital other cycles. our commodity deal across on scale, the heard expected of will look of in the at enhanced on full-year likely weighted second across and XXXX. E&Ps, We pressure the half still merger. efficiency, upward the remain closes. believe I at And benefits speaking Oasis a company after the better increased conservative fourth significant pricing. reminder, and we’ll this deliver our our for we on standalone excited forward result strength, to recognizing guidance strategic, combination Frankly, financial Based and But XX% as budgets the of quarter was inflation spending first a while

standalone the superior shareholders, road Over our the we're on for will many the is appreciative shareholders. past We're our company with value been of and of confident and very than that of combined we've long-term couple heard. meeting deliver we've support months, either entity stronger

strength a We forward and third currently filed was proxies ended you the new effective, look announcing the of is around with progress period capital, very April XX. the to it We time. pleased and results to XX, Once mail aware, expect organization. and the and up special I'm for S-X revolves which core that return In committed summary, on quarter. operator. sustainable meetings to ticker set made operating and was April on our our strive cycle. financial sometime HSR companies sheet to company the the transforming short, are close In now approve some through be we've waiting strong strategy, it and Michael the the quarter, transaction. and to I'll will allocators for in capital on we many dates our updates. over great stewards our S-X being name As balance and at turn to responsible remain a

Michael Lou

Danny. Thanks

mentioned, for reflects the the 'XX winter Oasis storms. Danny of we're sometime bases, for in merger with We're quarter. the a standalone second impact which expecting quarter close the the of guidance As Whiting providing to third on

comparable BOE plan downtime. guidance. company we peers. at averaged three per As upon do to to operational E&P financial for of to a the make reporting reminder, move continues low Oasis stream do metrics team and $XX.XX to great first LOE more the and below closing, quarter a minimizing in job LOE The to combined our the managing our end

LOE a We course pickup. expect over as the work year the per over unit of bit increase to expenses

strong line E&P course was E&P CapEx Second expectations. the quarter million, as or $XX.X was the was back of an March but has markets and Williston. elected G&A facility of capital XX, quarter consistent We're $XX.X previously to first our of and shareholders with the $XX million. normal and $XXX to we our a are above initial be million in get approximately with was LOE of on to $XXX -- borrowing share million. timing commitments our we the of will be updated similar below base credit the with year. drawn Both quarter $X quality. base Currently, record post gas million Delta quarter, from get conditions in plan to debt expect expected a to payable largely exceeding wells we approximately the $XX.X million the related crude around projections, tight May billion the G&A size and quarter credit over cash E&P announced Separately, June be $X.XXX storm. million in in per of on expense cash Terms other declared as levels we excluding cash to commitments elected transaction Oasis realizations Oasis of shareholders, million facility companies items, lenders to are XX. on expect online working accommodate base were $XXX first line The still of Oasis little work $XXX and the standalone $XXX fairly X its to relates borrowing in per with long-term with be with to original return close zero the as million. dividend as

said Oasis shortly we record plans the of an declared a a Oasis shares with continues to financial merger questions. I'll back standpoint XX June Oasis $X.XX special X. is over before announcement, which In for Also share from we XX cash position operational June February and merger of to hand close, shareholders at well Oasis payment a with and share on us and record payable closing. million closing, side in to call during OMP sustainable to variable the consistent in generate between the dividend to over dividend special what quarter, on the the Additionally, a merger X, that, dividend executing Also date as of flow. puts team the the enviable resulting for declare still With $XX Oasis substantial prior Crestwood free cash -- million per $XXX retain will the of to closed per Matt be to this units. Crestwood

Operator

Thank you.

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

Derrick Whitfield

on and all morning congrats Good quarter. your

Daniel Brown

Thanks, Derrick.

Derrick Whitfield

question, first plan on to my capital for XXXX. I With the focus want

CapEx wanted to increases if self-help you cases that to of or XX%, you those of greater could are pursuing ask is some the the sector than offset some to messaging speak As has the in majority initiatives I operational firmly pressures? pressures, announced you inflationary or guys,

Daniel Brown

being of the question, and the budget with put figure set great in ask Derrick. this tried to our the year, it's We best to numbers to that XX%, you And out Taylor operational the on it. in well as we I looked as as were can number. I going. was we tell really looked we aggregate in a as conservative What -- and earlier we pretty Yes, could ball side. is I'll thought weigh course we is, appreciate probably in inflation use where crystal we

items higher that. line than certain got are You've that

we To your February. is relative realistic, an now a conservative. were expectations, continuous focus which But to were to in are point, again, seem at improvement than line in we we're are pretty for thought as back, probably big the XQ where us. seeing and balance and getting with trending generally in But what we're on our we're bids lower that. the getting that Some from a XQ projections organization,

We our capital both trying from to at get are side an always perspective. from operational a better and for expenses

we've some And ask to talk out efforts so field. I'll the about of Taylor on in going got maybe those

Taylor Reid

which side Danny, just run on capping to and has business, program example takes, up. of and given Yes, a you block lock tubular add to side, One but the some chain is year. us portions the of protection the that good pricing about were to things, able I our some one, of bid from input what for think of the program, in the on for of a when we able supply you in the look couple said

just find area services ton to take-off. very in really where teams kind in work the some seeing of So you're of where products seeing helpful really hard or a And alternatives inflation. some an cases, we're then

work I And what efficiency through on an a the the year from to in that getting downturn projected works last as job good can lot place. we year. standpoint, really off really XX% front. efficiencies said help. Danny then in to our a on so well, paying sure Make done deliver a good And we've this good we of think on that And that earlier

we're So in shape. we feel good like

Derrick Whitfield

great. That's ops I follow-up, with And then stand you on Taylor. wanted to focus as my

the have you if this Bakken higher present. you noted scheduled the exceptional this comment years at peers on of associated for your workovers And those than pass? that amount if Wanted of to One economics could year. ask it's morning differentially with

Taylor Reid

talking You're about workovers?

Derrick Whitfield

Right.

Taylor Reid

combination late the into would we've wells year. coming was weather to than the offline both that have of and due having crudes offline we of the availability Yes, got and talk more -- in we about, normally year

low work cost production to back economics. talked down we've that Danny cost pretty very those his a about that able start those As expect and economics wells remarks, in projects just just would been at impact in all are really tremendous. and fantastic backlog that They're as to on to the get low you

Derrick Whitfield

time. Very helpful. Thanks for your

Taylor Reid

Thanks, Derrick.

Operator

[Operator Instructions].

go Dingmann from ahead. Our Securities. next Please Neal with come Truist will question

Jordan Levy

for morning It's Neal Jordan Dingmann. Good Levy all. on

spoke if on versus three still still second, to wanted First any should still I'm to on? I sort a this to reserves. quarter, put. increase of as then just laterals there? at just for wondering holds working been anticipate I'm first true, been incremental of you to and you And laterals all a just turn if in three ask summer. XX% mile I if move the through miler, And There's three ratio first, mile and we on dynamic last XX% that XX% increase climate we think you sale curious, year, have changes see those that cost

Daniel Brown

add comments may question. for Thanks Danny, is the back Taylor thanks. I'll So start and the on end. maybe This some off

mile some online. three the we see those fall, like think more where seeing anticipating not we're those are maybe come quite laterals will I

so we're performance excited your XX% about point seeing a the can production about uplift. have To those. we -- of And modeled we

if look just so lateral And at you'd this. you a expect little on We've conservative XX%. length, been increased the

And about and in EUR XX% wells production modeled CapEx. ultimate those in a for so a increase XX% uplift or a we've XX% from

for be date. seeing good to capital say going efficiency those on the drilling is results. to forward been to the the that for been I'll has program we're And better us. for So obviously has performance looking much

add? And forward those you've else I online. to got if anything don't so we getting look to Taylor, know

Taylor Reid

those I caught things accurate. it, No, Danny, all think are you

Jordan Levy

that. leave I'll so it much. at Thanks And you. Got

Taylor Reid

you. Thank

Operator

next will Brothers. from question Please ahead. Parks Our Noel Tuohy with go come

Noel Parks

morning. good Hi,

Daniel Brown

Good morning.

Noel Parks

transaction? touch some we about benefit of you look under bit fruit be could acquisition a to lowest you if to ahead operationally integration. maybe expect Could the wonder bit the on I talk little as might the hanging from the a what you

Daniel Brown

and question, looked hands. reshape the the well as And as On get need we move to forward. moving teams come I employ differences it's both early how we think together very fashion, with we at And the around to development failure workover a really on a exciting and noticed clearly after there's an through opportunities notable picking drill really work practices the best But think the those how the expense. organizations has up which organizations, for -- get -- there's forward. for rates us. what Noel. from few we'll difference between If have together we we thanks In notable to in days, after where. which both may operate, reshape on plan, a we and significant and in able will we deal, close rod we systematic there, be timing two pretty implications and long-term I LOE dig

company The results. can good around they to areas, that And stimulating so work pretty drilled seems think combined can bear practices in wells, best which that's which how -- exciting, thing to that look particularly and practices. benefit in those exciting the got some at is pretty densely from whiting's

I the things number we're that the capital a the these across to are extract sort in standard really practice we sure dig best be transaction, the both sign think board and for to they're and on in new able there going And and expense organization. of once of so make these practices close

Noel Parks

of little a on early also, obvious might any thinking combined. the if real going to deal, be also you detailed are or that could, be if priorities post on, Great. thoughts but handle course that to just a And side, this have just infrastructure

new further to represent the going further, the is a compared west to footprint? combined Now to Spanish mix, of addition Oasis

Daniel Brown

got larger are at closed -- certainly fully player. that But as get basin. at overall a the that a and look there's to bit opportunities little contracts whole we on the marketing entity on a combined side looking Yes, gathering the fully in great be integrated integrated. more post-closing. We'll just as We've obviously side, will we more long-term we'll lot of covers look the once

Noel Parks

And in don't be to might might any, time Great. that rolling do sense horizon there position be of You a know I a you to the are revisit? clarify, anything off? have of just

Taylor Reid

kind Yes, were Noel, of basin think in kind XXXX. timeframe. bit contracts and contracts mean, in are of bloom a a in some of as than signed XXXX good later We're that's kind maybe lot basin whole XX-year that of bit started a that of to into, and a up entered first I little if XXXX, -- the about the on when you lot and question. just that instances longer little a

you about up from seeing bit XX-year coming renegotiated. are quite the think contract throughout of you as and basin kind So that timeframe, a a being

are there that side. certainly that once on Once lot a on again think I companies integrate and be close the we can together So that opportunities some talk front. about to fully going we'll more

Noel Parks

Great, thanks a lot.

Taylor Reid

Thanks Noel.

Operator

session. question-and-answer over Executive Officer closing Chief turn I back to would our like Brown, concludes for This remarks. the conference any to Danny

Daniel Brown

Matt. like accomplishments proud time company year. about future We're thank look I'd to for Well, made and the that our other their today. to shareholders, for the forward call. you, call Thank the And the you this we thank employees, everyone of I'm for on excited opportunities later also communities, new and joining stakeholders. our leading

Operator

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

now may You disconnect.

Chord Energy (CHRD) 5 May 222022 Q1 Earnings call transcript