- Earnings call transcript Q3 2022

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Operator

Good day, everyone and welcome to the Chord Energy Third Quarter 2022 Earnings Conference Call. All participants will be in a listen-only mode. [Operator Instructions] After today's presentation, there will be an opportunity to ask questions. [Operator Instructions] Please also note, today's event is being recorded. At this time, I'd like to turn the floor over to Michael Lou, Chief Financial Officer. ahead. go Please

Michael Lou

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

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

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

Danny Brown

our to and as full quarter you, Energy as Well, peer-leading you financial joining as return call. first results now morning, operating of and be we've with completed Chord Good Thank our capital operations Thanks discussing for everyone. I'm pleased our well Michael. program. of our

integration ESG year. of progress, we're to and merger expectations for updates balance give you strategy, the the our our going on Additionally, some

Compared for volume a expectations. jumping lowering third our strong that, the we beat, So cash consensus. the guidance, half, quarter, right with exceeded of line had say also for Street that, us here can up in for in flow which above second sets delivery think with be We us second XXXX. which which were volume performance large free nicely that half should delivery the capital with I our positions into I consensus

Given strong sheet framework, this alignment capital August, our of we generated we and performance anticipate announced flow combined in with of XX% balance our operational and delivering even free return cash our Most well we in address we the some very I'll quarter discuss in moment. see a as to to back items continue the in importantly, shareholders. that field, strong performance with

So, strong by a our see our Slide on digging just well third exceeded guidance versus production the latest our of XX our presentation. you quarter, in in on performance, guide, results largely which more little can driven

on the some completion However, the shifting of few for right. a timing has the our our issues with on wells, schedules mechanical to new the frac wells casing extended those

disruption We've expected. due fourth impact revised ESPs incident. Sanish area the our included also originally down completion associated of fourth waiting surrounding result, longer wells, for was quarter to the timing new than a many being of in quarter a are of as expectations, to the operations in as reflect impact power offline this As which volume updated vehicle conclude leaving by to our completions well offline a production caused

slightly update and above, account half to items also production given the third quarter the we aggregate, total but capital. into August performance oil, strong was taking expect our slightly volumes second to deliver in less less So favorable our in

guidance schedule the to is to a in conservatism quarter, third performing we around which versus bit our frac we into too we expect I XXXX, very year note, previous reflecting program. XXX the Importantly, shift in August nature, about full continue built mentioned, anticipate estimates. is we to performance timing much lowered view in these and I'll our impact same as update. and wells our no perhaps as update, On good items as related and XXXX capital the field our transient capital, our well August the

fracs total into turning while taking below the year. are the same, TL However, total of our about will TLs number XXX be for a full or lines down pushed our XXXX, estimate

million of Now the the in Chord Recall we that exceptional turning discussed, when flow or leverage. cash given free more flow peer-leading an performance of quarter of returns to framework program, delivered of our return we low August, a previously during generated capital XX% announced free $XXX strong quarterly for cash return capital that adjusted quarter. has

We share repurchases. return variable opportunistic through capital and a this expect approach dividends, balanced dividends, base to of

Our dividend of and share two has $X less years. increase represents X.X% a XXX% a annualized base per of in than yield

of cycles. Our stock opportunity On the took $XXX.XX. average close base additional designed is repurchases, $XXX at be we over portion an of million prices importantly share of dividend July, of $XXX return non-base of capital is our commodity through to in return company, authorization to the and to This we worth a sustainable million of represented at today. have core of price repurchase and strategy, XX% dividend an to be part our the repurchase of X% program, resilient low and

took gone generated minus including $XXX the declared per in and determining flow return of return and of have in free of flow Crestwood the Since cash have approximately closed we we at monetized above will X.X%. the flow Gross payout, an or XX% payment million of for annualized represent base proceeds between share were our and repurchases. were quarter quarter an discount and $XX variable third cash free to successfully of third cash other expecting approximate of quarter, XX% $XXX September, of above, The amount And units merger XX%. roughly the dividend $XXX $XXX million our a The million of November as $X.XX we Chord, $XX opportunity million which about highlights of sale, approximately free these and million capital deal variable mix of fairly us about at for will is million million company our of of minus the currently Chord value cash million around variable a the difference given aggregate million $XX million share holds Crestwood XX% modest of allowed conditions, the monetize to this attractive the the in dividend XX% taxes $XXX market $XXX After discount. this to an of quarter the X unlock around million. to $XX Given units. dividend. of units

have stakeholders website, along may robust metrics recently complete. our the also about commitment providing our merger, very a Onto with mutual technologies frac GHG which substantial saving systems X generated we you a on the this ESG, noticed to forma combined going transparency the of ESG improving posted in to pro make maintaining to reduced to corporate turning in we In integration impacts Highlights integration of freshwater we Now and is have continued resume the and our disclosure trend remind We for to our continue the engines currently also on to using and prospects interest are forward. emissions contractors the and provided fuel we a excited plan employees beneficial costs. diesel safety progress companies. letter markets publishing power. reduced and a for on battery our on intensity, of Tier full dual include XXXX, for after dedicated fleet rigs, intensity, strong is our These reducing and performance. sustainability while information need to Chord remain improved governance. report

over leadership make having continue progress summer We in further progress and quarter. to staff on staffing solidified managers third the the on the with side,

we've integrate per year our over $XXX a original of across processes on million. of verticals We continue and total synergies to million as expectations software $XX all identified reminder, versus

implementing as as On We're new implementing we're drilling our to completions the practices. construction. capital facility side, rigs best and are practices and well design optimize optimizing also

the later side, create see lift to the artificial initial On and that the to we benefits we're reduce rate of in start in near-term, should XXXX. the failure groundwork to operating expecting investments

of while operations and further Additionally, track routes consolidating side, $XX on efficiencies. pre-merger million driving remain savings the we're And and we for cash approximately the on centralizing maintenance G&A other versus with the and and people making for I have it I'm team progress identified. this happen. can't our All-in-all, making the enough opportunities pleased we're progress new very driving the thank baseline.

Your efforts turn now with I'll Michael those sincerely financial updates. And highlights, are over some recognized it to for and appreciated.

Michael Lou

Thanks, Danny. I'll highlight the operating items for a key handful third of quarter.

expect just converted to want Converting Crude As a will this realizations three-stream spent and undertaking accounting, ton major premium was this Chord teams WTI, which to into you team to I in we Thank hard marketing, work a our fourth acknowledge reserves IR the see combined on materials, happen. the for the the at remain you. in company. for their reporting quarter. of continue a front. hours we making three-stream planning to

disclosure gas the quarter, a on and BOE provide are averaged realizations, reflecting Additionally, spending. for we NGL fees. net marketing per higher of certain third work-over $X.XX LOE new which

BOE of As the to the approximately fourth provided were midpoint quarter. gas this in in range oil trend Cash we revenues down $X.XX production and the was And our with guidance taxes below implies, expect in GPT X.X% per of line guidance. August.

fall by in $XX.XX a the is the In oil expected and increased was This of if I'll capital G&A of approximately levels million third program. took cash year, to which moving and cash Crestwood from with of million $X focus back cost third well the a the of in $XX on have below this guidance quarter. pricing, in bit occur recently above borrowing quarter the months. expect initial billion taxes the great to X.X% the $XXX.X well billion latest base. an as half are back in on closing, level. paid taxes. reflected $X.XX you significantly the expected expenses. of June for recent the XXXX is no thank months. the Jamie million barrel guidance. merger-related in of largely North excellent to trigger as merger-related the September fourth in $XX.X full update. to remainder Chord to effective set third to a averages $XX November. on of a call leads rate WTI commitments, expectations and That's to return about WTI per was first us vast And approximately continued relates million $XX the cash Chord to has base. averaging the quarter, huge was the cash quarter, $XXX $XXX increase our expected units. a team With that timing, for million expenses plus In performance based million and range third consecutive delta fourth approximately are million CapEx Overall, taxes recently in we taxes The led fourth And Chord associated expense that, Chord these divestment a to delivering in of into now quarter. excludes its the XXXX, return the is borrowing September to $XX.XX per Chord XX. $XX.X In XXXX capital below cash our the to half first seen up this XXXX majority back items in of million from quarter, pricing The $XX which in for we hand for quarter, a and of drawn our additional three reset August over on a three Dakota million X.X% expectations consecutive $XX reflecting strong for the As up tax billion capital quarter of result to to questions. year, be $X Cash from sets is barrel WTI half down production control, second half from for elected the up lower expectations. relates reminder, nothing in the third increase million peer-leading

Operator

from our Please RBC today ahead Hanold from question. Capital with And comes your Markets. [Operator go question Scott first Instructions]

Scott Hanold

shareholder with can about think on July morning. the it being give Good what all. you if like you were us obviously And the kind context its I curious in from going some on looks point. that was forward. and returns thoughts but buybacks, you mix shutdown fairly of Thanks aggressive

context stock that versus And more versus do around something see, when find when some that’s you are as the prices down more be buybacks great. – So, opportunistic go price goes sustainable? that’d just you

Danny Brown

Scott, Scott. Thanks it’s question. Yes. for – the hear you question, good good hear to And asking to you a

quarter, we program, So sort we’ve yes, program. of I’ll at return got it of the you our of what the discretionary return look course the call of represented what over – did XX% on capital over as about

are portion that within did of strategy, avenue the of that share return non-based represented and meaningful think XQ. and and our so part we capital meaningful – that’s repurchases a overall that program of dividend So certainly certainly that a

As anticipate those of return continue a we of be look forward, will part meaningful I capital to a strategy.

look quarter for do you and this opportunity represented As look opportunistically, we the not we at at note to though, do programmatically in us that. clearly early great this a –

also hard And so we think the of a opportunity around of but think result relative our inherent is that sort trading to leaned that element where really our we about value just not performance. in that – And our when we of saw. are, as opportunity, it shares we

our going we both as we a of that, it’s to think move so of of forward. capital and we And anticipate take we be when into account part do about return meaningful strategy now but lots factors

Scott Hanold

Thanks I identified and it. question from, is I the holistically. is And as looking that. you to in. context give for Obviously can some $XXX-plus on my obviously next guess, and us the outside synergies here more everybody on guess, sitting target integration, Got million target, just you going identified the

see give because, be there’s would lot the of inflationary us a free we else. everything it like, ultimately Just things sense pressures as cash I into, kind evolve obviously should going of how guess such on and of synergies a

yes, straightforward. to here perspective, like step synergies, like be investor G&A obviously pretty think is look, and the where which we’re an the back you saying, So of and do are to able from going outside analyst

Danny Brown

a see to news overall against better standalone inflation been much Yes. your is synergies point, good move that bit of of than the overall inflationary Unfortunately we’ve backdrop sort up. identifying as is, change and a – weather organization changing to Scott, in either got The sort position cost these this of we organization we’re would’ve environment.

are ourselves deliberately synergies we’re so through seeing – we’re we’re hold with And trying that synergies to thinking identified got. the cost the how accountable very and we’ve

think capital But I – otherwise. perspective it perspective, of see this been cost what as you’ll perspective, lower, and our from well. so a perspective both LOE overall inflation course, have operating we And than into G&A is structure would’ve an an the being factor a those

level. sort of so at is same-same And synergies the $XXX a million in really cost

much but we those do you had would’ve to as not it increase, been so some cost And see able this. of will erode, that been worse

due cash the so we’re hard generally sure a to with on about that be see the honest do mentioned these be hold though backdrop CapEx accountable can side. And the But work lower day. understand and an the at trying intellectually realizing is this flow, internally as What a OpEx to of we’re it quantify both of little you structure should our free end to impact lot and cost a to ourselves the to make got within for moving, actually it. streams organization synergies. We’ve

Scott Hanold

Yes. if lot is early as guess and different to it’s color about be give think a peers items that CapEx, to line Yes, relative line bit can all given on I and I’d started assume much big I guess little picture savings interesting XXXX those you hold synergy of But thinking it potentials. that. too. But the we more you a hear too does to I hit

Danny Brown

we to in more guidance say toward of Scott. the year. question, probably great year. XXXX we beginning the delays to inflation of a To some feel some will part forward, likely full we’re ability a generically system think of to both we’re that about That’s of just numbers we refining full next of next ready things it’s that’s Yes, not on next we a and we’re around But XXXX, sort through your weather show we our But after saw activity and the for really saw the give to we’re around sort with year-over-year essentially XXXX give about going that the the are year, for latter of through given detailed detailed expecting impacts point, growth I something where we’ve year. When we the XX% the little as increase to cost yet. now seen April relative guidance going toward XXXX. a think going till move we’re similar capital beginning to good these and level. across that given think those I deliver And of maybe to run happen date

Scott Hanold

that. all you. Thank Appreciate

Operator

And comes our ahead Derrick go next question. question your Whitfield with from from Please Stifel.

Derrick Whitfield

all. and morning, Thanks good

Danny Brown

Derrick. morning, Good

Derrick Whitfield

touch earnings topic Danny for throughout a focus inventory, of wanted or thus certainly Perhaps Michael, to on far.

in about inventory inventory. As overvalues and undervalue market we it talked Permian past, the generally the Williston

increasingly any capital the could resiliency your As will of inventory, of depth investors next general offer returns there and you the three the X as comparable high focused ability your the efficiency laterals to years? on out are you look are and impact over on comments sustain to on five level quality mile have

Danny Brown

I I and since love recently, conversation I comments the that him the conversation so in thought had mentioned and Derrick, I with question you you, I you had this and some him. So, Michael tell had about a great

this, to I go ask color to So forward. with weigh we and comments I’m as respond in some may going to him

Michael Lou

the would couple great it’s question. of things I framed say Derrick Look, way it. I like Yes, a you and

talked see through the I well, synergies capital think as the that that will over with program hold through, about years. our efficiency X and pretty that coming with strong we more few mile just you laterals next

of very we is actually think efficiency, So that capital strong. the sustainability

We are in that Permian. magnitude might cost you the seeing same pressures of maybe the like not see

that we the as well on pressures then And seeing versus piece other touched seeing is in you additional kind I necessarily of be quite that other general. predictability other some might inventory be that companies And the much. not of our think so basins maybe where might as important there are

strong I our We more inventory. with mature the child A that little and we they’re parent spacing bit basins are other of think good have things into challenged degradation. are a being as very predictability basin, and less

just bit think more the things a little are I understood in Bakken.

very predictability, piece. the efficiency, but at that the looking not resiliency capital So the a and only I and as consideration predictability also strong length, think is the you’re

Derrick Whitfield

wanted Terrific. return question. first capital my to I follow-up, of build And on as Scott’s

have and would it for that your you While to you clearly clearly increasing foreseeable over allow and could that assessment? that XX% short positions sheet of to you sustain payout Is cash the stopped strong messaging, that appear balance in future. the a a XX% fair

Danny Brown

got pluses think we’ve balance we’ve sheet. strong a to that’s program, capital have of think those. got If some lean at that and allows we which We appropriate thing Derrick, plan the end great do. into to a the us return does

So for flow reinvestment low the we’re capital. that got we’ve balance free our given position think return a sheet, cash the rate in great of generation, I in

Derrick Whitfield

your Terrific. Thanks time for this morning.

Danny Brown

Derrick. Thanks,

Operator

Our Truist go your next Dingmann from with Securities. question comes from Please ahead Neal question.

Patrick Enright

This in is Hi, Dingmann Patrick Enright for here. everyone. stepping Neal

start operational a the due I the presentation, casing mentioned in your issue. third of to at delays you the see, quarter, is believe Let’s

question second Is what what my to in you anticipate timeframe provide? a that whether the is, there seen the is the occur – of of you’ve is can is this part the typical impact the part the First wells? the downtime – something casing off may a then issue surrounding guess, that to you And one was I that future. that or

Danny Brown

of then we discrete Rimer this. Chip quickly are and to in operational one-off Thanks in as speaking, on a for for specifics. event might involved Generally I this a set weigh Patrick. that lead wells the ask some see off more question,

would or think repeatable associated nothing sort systemic be And this. so what with we of –

It is and And to But I’m frustrating. so – going ask weigh detail. more let to that’s news. provide Chip I’m some to going in good

Chip Rimer

tomorrow, later is this done issue. And wells We second one-off these Rimer. have here. be question. Danny, of repaired month fracking for We’ve had will those Chip Patrick, we the set later to to and you already you’re around. depends hit the probably. impact wells one one Anticipate wells Yes. today of you right, have right. of sometime fourth and on push Thanks that. those in have it the a it’s or quarter, you end the a then some end third going of the how exactly but And many it that’s for these have quarter, When prior we’re wells, to

frac do have the and down. You to protect those shut

at going that but probably frac associated it, – is And our event. event, it’s be keep so we’re feel the to to probably to, going. XX% it able guidance with we when you good what real adjusted look and I a this one-time that

Patrick Enright

Terrific. Thanks very much.

Chip Rimer

back, so there. have had down. – had the white we’re in down Yes. extending didn’t and a We just a this little further. really, just time so period we running, pushing We And we have didn’t completions it’s a it of space it a it’s

Patrick Enright

Thanks. Great.

Operator

comes Johnston from question. from your Our ahead go next Please Capital question Phillips with One.

Phillips Johnston

sense Hey a in Maybe it’s and you given question variable follow-up just formula return. your capital on guys. get on buyback sort Scott know to dividend, aggressive got July, sort stock of target. to uses of but Thanks. guys you makes I where Derrick’s total the plug It on to was the the

So XX%? XX% why rather plugged to just you wondering than

Michael Lou

Phillips the question. So, appreciate

intentionally us As out, you that to we with put at we put framework that some the end out know, flexibility. pluses give some when framework

a harder performance, an a that where thing sheet, if we for to our position given were to in lean like performance in sheet sits and little capital, had felt to an we balance the land little opportunity think in quarterly this where so we that’s into to was that. And we could in XX%. lean strategy. appropriate And why the into on capital do quarter we harder we a It given currently. we do And return us given balance of return saw

Phillips Johnston

just, you sold. be plan I you little just for might X ultimately than units the guess about wondering then, in got higher a you’ve Okay. believe And I the that, million that. if monetize then remaining would units guess just that And did leakage be bit tax Crestwood, Makes sense. I what the

potential implications remind the would can be? tax you So what us

Michael Lou

Great Phillips. Sure. question

have sale a million of that chance we great pretty What at is X did helping a well we discount, the some remaining the share by We the shares. One, a I’d yes, opportunistic. units that things. monetizing good the units overhang. in September few of Crestwood say was saw as trading removing really So of doing and

of know, monetizations. always kind are those As tricky you

is a system. so came we largest have really fantastic quickly provider way we’re but Crestwood’s happy We elegant came been I’d as talking great doing. shareholders. well to for we’re we’ve opportunistic. very feel very and that us a a job. They’re was a the their midstream pretty that. our love this And what We largest you pretty and solution, productivity confident the also the together very doing, at and note in are of customer it what see discount It well. They’re on about strength that doing

we So, really really strong like like paying – shares. a distribution those They’re we well. as

like as we that So side well. of it

mentioned on the have perspective But you intentions of. to tax that we the current tax, side no speak that. on So

if them. actually that we you’ll Crestwood’s at current to XX% would did with leakage trading shares. September what And a share at. on remaining about the let’s on have with It large say is the be negative units we those tax that’ll XX% tax But very monetized, price basis notice the So comes that today lead to units. remaining that in associated leakage the a sale little

prices. today’s So little on or units. of down prices up like that kind bit you look Obviously, gives changes of those a a that that move band if in what might

Phillips Johnston

much, Thanks color. good Appreciate very That’s Michael. very it. Great.

Michael Lou

Absolutely.

Operator

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

David Deckelbaum

Michael, Chip, you the today. time Danny, Thanks, appreciate taking

Danny Brown

Absolutely.

Michael Lou

No problem.

David Deckelbaum

generative. of project balance be you quite the just Obviously, and about you the monetization. on Crestwood talk have to $XXX Wanted to cash now cash sheet, free million almost

capital in right bit anyway, elevated But You do like doesn’t on cash on the in and about going capital. seem you how return to have balance is or a the appears terms think pretty Crestwood of a considered be generous It necessarily being monetization program. return now?

next that more about wondering heading it year? maybe there’s thinking So how but – into philosophical, you’re it’s just

Danny Brown

David. question the for thanks Yes,

always, things So decisions thoughts it’s frame about from use continue so opportunities transparent organic briefly to really great type our repayment And I here. and inorganic we We got – those a growth evaluate say obviously, as opportunities, we’ve plans We a been mentioned, I’d debt four great think and and we allocation our opportunities, four we here. being XXXX. question. share a around talked I capital capital our framework capital is think we’ve sheet share plans of about and And as around proceeds – I’d then return pretty M&A our different buckets, spot. in our a returns. for say you robust perspective. balance the

repayment we’re on. isn’t So debt really that something very focused

And so, I pretty framework, think, return we have got is feel we we’ve that given this robust.

participate before how important with way We an mentioned is also need we’re consolidation another. do industry. us, that one we’ve think about to And or that in positioned an theme for and we that

bit to presents the little sheet on if the be for a opportunistic thing of having is itself if a opportunity think us. we time, balance so, firepower the And good

– so about prudent very but And going that. be we’re to

we’re capital and alligators cycle as it currently, that. we be the very a on sense probably positioned we’ve at things. But our and to of that given passed sorts say we’re to just discerning where are sheet balance and I’ll a on the think and have these seen use that’s our I really capital makes well a and the end across around allocation the think, I framework firepower few the goal really to really the consolidator And to a evaluate day be little banks to for and opportunities earlier. And is we’ll but of at great us. little continue important all proceeds – of this, us mentioned

David Deckelbaum

one with say if guide ask XXX would If benchmarks most – Thanks, an goal guidance, XXXX is implied activity be inflation could response. think we And or and next basis average was little now, not I more thinking the it to you to outstanding you’re cost Danny. explicit of of quarter, year? give frac still fourth then and guess know XXX have posts, in One or a explicit the crews It fair on RFPs guide, bit I drilling a run sort just to rate performed seeing for fullsome about with nice fair the XXXX, about we’re what is do than I but say? perhaps work prepared to top see on to just that includes two, about we of rigs?

Danny Brown

the think of third the So the got year, sort RFP side, next of through through the timeframe. full of on better part through contracted kind year, through not but we’ve rigs completely better parts quarter

any I particularly And so nice. are from cost, these with of lot that’s our on through there’s some say of standpoint, completions at nature. will these costs of a rig pass a things,

And move adjustments can and we rigs, on we and fuel but we so some services much move so up up, of with the our not that of as the labor stuff, see other sort costs costs have. see

you not average a probably to contract. course fourth we’ve we’ve quarter. your what respect With the rates than it a the we think on I of movement But XXXX. more on those currently fourth for for balance it program. of point, secure some of activity, to your services do drilling the got the got some some probably feel the lot availability as So helps quarter activity well run cost helps basis, the under of on but over currently services, of contracts of great would in It’s we’ve see lock as as can little services got side, as about in, Certainly rate with you. your cost the even us a on

is a marker My So respect if it. better to about thinking to how it to with our project of about may not comments we’re XXXX looks what best XXXX like. use think program out way you’re to probably earlier kind be the trying

So over hiccups We some with with over production so year-over-year. we these inflation course earlier I year. growth this the had in likely think basis. year recognize that delays, slight probably for weather slight the then an adjusted through year-over-year on And till growth production of came in the

probably up, I think cost, similar maybe something inflation’s in but that. factoring XX% like

David Deckelbaum

answers. the Appreciate

Operator

Please [Operator Citi. Instructions] from comes go ahead question. from with Diamond question Paul next your Our

Paul Diamond

simplicity guys you wanted have all pretty quickly Thanks three-mile unexpected there all. call. base of it mill? you more or kind taking to the my pain laterals, progressed of towards touch run points unexpected just encountered? has has morning, Good as Or been that for guys been any on, I

Danny Brown

easy one certainly great these all say pretty It’s the the that easy. And shipped well. that’s pretty seen away drilling things there. I’d we’ve Yes, but with laterals, very, Bakken very gone it’s three-mile about of program’s more, up is in

Chip Rimer

knock gone it’s wood, very on I’ll and well, Paul. Yes,

appreciate So and outs. drill question the the

all real these all us it’s about because and the when save Plus had feel have a or one the had XX there to miles. and the unit go always now. said on that’s outs, toe end. coil able – we our three almost to of that out we able forward. clean we right to So, and these plugs, way go we’ve been been we so to of good We’ve outs We’ve use actually the dissolvable of go, going eight done, plant and that’s going have two out near some challenges clean

So I see forward. there big a going savings

Paul Diamond

then And one Understood. just quick follow-up. Thanks.

about pass a deals. Was couple was it You what have for a in passing is and an that and you kind on or selectable of makes, of kind talked or or spot rationale acquisitions, to be guys what any on of more deal? what the and of potential, very you pricing a your about bolt-ons said mind wanting acreage, sweet

Danny Brown

those you I in. all things factor Yes, think,

you make and be cost those it’s so production. sure of And to do that quality against think quality one weigh in It may you’re how which inventory things – existing I – acreage is we and another. appropriate, of want and

whole a think into currently. within our based very But do own we are sensible that of And inventory it. got We’ve in there’s a consolidator. a a We think great go we so, position we’re position. deep lot factors

we’re so to make participate be through these to to actions, not market, And going the but opportunistic better organization look and these actions. also just through bigger need we recognize that that in

them the very if want So when they’re right thing. – to selective, act we’ll but opportunities be be will on the be able themselves, present we to

Paul Diamond

clarity. Thanks Understood. for

Danny Brown

Thanks Paul.

Operator

back we’ll And closing over session. to the today’s ladies question-and-answer floor and gentlemen, for any Brown turn to I’d remarks. Danny that, with conclude like

Danny Brown

company and strategy, Thanks, happy the we revolves creating Well, to differentiated of a to excellent think our value. is for time out, an strong significant are very integration to shareholders. I’m opportunity financial thank flexibility, amounts which capital progressing everyone with Jamie. close with around very today. capital core and We to committed returning to create like I’d remain how being retaining allocators, their

on with this sustainability focus every across aspect a improvement doing We’re and for drive further our of business.

forward other call. We’re Thanks stakeholders. our excited going our joining and for employees, opportunities the communities, for shareholders, about

Operator

presentation. conclude gentlemen, for thank that conference with you do We will and today’s we joining. call Ladies and

may You lines. disconnect your now

Chord Energy (CHRD) 3 Nov 222022 Q3 Earnings call transcript