CHRD - Earnings call transcript Q4 2024 | Chord Energy Corporation

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Operator

Good morning, ladies and gentlemen, and welcome to the Chord Energy Fourth Quarter 2024 Earnings Call. At this time, all lines are in listen-only mode.

Following the presentation, will conduct a question-and-answer session. [Operator Instructions]. This call is being recorded on Wednesday, February 26, 2025.

to ahead. conference like Bakanauskas. to now go Please would turn over the Bob I

Bob Bakanauskas

Good everyone. Financial Andrew. are Thanks, morning, reporting today, Bakanauskas, Fourth we and Quarter XXXX and Results. This Operational is Bob

as delighted team. COO; by Brown, Chief Richard CFO; today Strategy Robuck, are I'm Lou, Officer; Commercial well and Danny to the our our on We call. other you Darrin the joined and Michael CEO; members of our have Henke, as our

remarks, including statements statements our Litigation releases currently those answers be to to Please forward-looking uncertainties include that our be These in the are disclosed Securities the your questions, risks to and materially the that that be different forward-looking conference advised to Reform and earnings calls. Act. Private believe could from we subject results meaning cause statements within of actual

Securities well our We and releases Those reports XX-Q. our disclaim filings others, our statements. risks include, on these to our among any the forward-looking earnings Exchange that we in Form update as Form XX-K in report described on and have Commission, as quarterly matters obligation with annual including

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

Daniel Brown

Bob. call. joining our morning, thanks and for Thanks, Good everyone,

more operations. Q&A. it it of brief on will performance outlook. a to to to for details next turn up Chord's open few accomplishments, on and capital overview to there, provide the then fourth Darrin the our XXXX for I Richard discussion on Darrin, plan Chord's quarter our and who reflect Over minutes, From then results financial we pass resulting I'll return XXXX before it will on comment turn

XXXX. with starting So

who, their Chord My the have highly capable ago. position of been to scale capital. generating a leading employees a transformational The significant through integration was to this volume Williston successfully capital is year, corporate as amounts solidified organization in in become to on our dedication great entering year program of high organizations, into to May since in commitment closed has sustainable with has company slight combination incorporating position executed year placed with growth I the our return years And discipline us this last flat notably, us and X the Enerplus. combination of driven we in peer-leading efficient leader that a to the cash leader, sincere arrived best in both operational all a the and And improved allowed by thank a extracted which practices the substantial Last and best we position from value capture and another our by in balance synergies. you for Basin our flow. maintenance point, has to maintaining basin transaction believe focusing strength, low sheet of I succeed. basin, from and we resulting commitment free capital, while

and inventory life. our -edge extended such and adopting lowered enhanced practices as which laterals by have We economics have breakevens leading long spacing, our conservative

for and free additional for substantial capital. robust demonstrated In shareholders reinvestment Chord's inventory low-cost continued and rates, cash upside. attractive return look delivery we As to allows short, consistent flow have of and attractive low for generates future catalysts we've economics the future,

And returned portion to in $XXX share Chord year, forma repurchased advantage resulted to price. repurchases than XXXX, of and into million basis, was Chord recent our has Our a of as leaned transaction, closing returned value we Since capital-efficient quarters, free view development what share cash Enerplus performance you've this pro likely to on last greater a and in the noted solid of strong take X% In shareholders. harder we've in shareholders. significant a shares focus oil operational we growth has generation disconnect compounded that presentation, last rate which that on per approximately at current example we grown show per out XX% key importantly, while annual X preserving and share all years. continued growth paying environment, and our simultaneously Slide $X a over repurchases in dividends. balance did outstanding, the share we on Chord X the a metrics. expect this be production sheet And can share yield of in One this of across should our seen where billion its

our on both reinvestment share valuation see X, as highlight basis, see relative inventory compelling reason low on and and rate an why we Slide a we per we strong continue. Given growth and no which strong won't absolute what

which results. another delivered operating flow expectations, returns. fourth with Turning quarter results supported to shareholder cash robust Chord great above quarter free yielding solid

flow accounting base and discount the on share. thanks Fantastic across our to timing. to $X.XX we shares. expenses and all were X% per the and by favorable was capital the Specifically, quarter to XXX% expectations, our strong of which development delivering adjusted the flow free cash teams performance of execution of to team above of of in free margins. board guidance, continues while quarter repurchases expectations by below comprised returns Operating and increased see our XXXX. fourth the midpoint volumes the program field, results in execution My up capital of for led stepped Share the fourth to really in for $XXX dividend, job all. shareholder quarter cash take return advantage improving This to focus cash of after million, in came below the performance, strong fluctuations quarter reflecting well reflecting was all Chord also fourth largely oil for for as approximately

our Turning to XXXX. attention

brutally night asset is demonstrates guidance we're first As impacts the cold weather, are last including quarter Chord of its guidance. off released and released and you'll Despite start. our recall, the well this strong past outlook, latest our to projections, weather, reflected multiyear a this performing in November, some stretches our of first XXXX

surrounding details for As are we year, which capital rigs, this program run to we intend expect X X a maintenance decrease to currently by our plan, midyear. running and the to XXXX

frac running are crew X crew. spot currently we X Additionally, full-time and

XX% expected interest and We the XX% expect increase including to TILs XXXX. XXXX should a Average XXXX be X-mile to working out turn in expected of are to quarter. in in over line in over expected which XX% to XXXX the be in XXXX, to and XX to first turn-in-lines little of between the XXX gross laterals, spread are wells XXXX be across year. operated approximately is XX The to remainder XXX

a to to million similar prices last fourth we slipped we to same year. quarter oil In $XX this billion between addition XXXX XXXX million on XXXX operated forma $XXX to is less program, of approximately for natural of $X.XX barrels reinvestment Williston the non-operated investment. XXX,XXX first the approximately XXX,XXX deliver to opportunities of last XX% million, in MMBtu production day million approximately with with the year of gas, cash flow which from a Marcellus. basis the the and expected million XX% does pro At invest include into per of with $XXX of of year the benchmark $X.X $XXX that between of than generate balance rate free year. and The expect quarter barrel $XX oil or to around is program expect with per per of of around and $XX capital This in in on

this over our do the continues to in so providing and to I Chord modern this few peers a in of operating living. on on we progress where doing companies make XXXX, third-party and versus more. can aspect our will affordable putting commitment turning our end improving improving Darrin XXXX responsible to communities. of research manner. efficiency before progress to a year-on-year. one our capital our maintaining good in firm's the critical a energy sustainability. focus front, that of commitment sources towards investment strong of wanted capital our and will already of And reflects laterals, the returns. continue This to last you our partner presentation, of investor while Darrin, Chord On you'll a work productivity, And see sustainability assessment safety laser In pivot improving we our speaking Chord's minimizing so is capital being already partially we're bit by efficiency of productivity strong every environmental discuss sustainable reliable a Chord which As a and of driven on through have on longer and focus impact better proud and first, the to with this a thing delivering cover Slide strong is find efficiency X year, to initiatives

had So to a that, investment to to substantial we And offer returns execution, investors start assets proven of to in strong with summarize, proposition a in a with a shareholders. to value Chord and strong and over to XXXX. opportunity off I'll compelling great XXXX, invest we We're quality return unique Darrin. capital believe turn with it

Darrin Henke

our inventory for over incremental the economics a our assumes Thus, great adjusted and in X-year overall to We hit be X-year efficiency materially plan outlook with year-end X-mile capabilities. relative this both foot additional next total Operationally, benefits view inventory. plan Chord's over are faster no to times, X-mile our We years, conservative a XX% improvements can XXXX as we're issued laterals, percentage stride, in X-year of outlook Thanks, is further believe laterals, on November. from we organization. or continues it lateral the the points no X-mile focal laterals few includes off start our Chord and over XX% Danny. all X-mile as on and increase improving to to Currently, the associated this capital projects X-year which cycle the plan laterals our basis.

our quick are with the cleaning more plugs. to more success, implement Just X-mile reached several first Chord laterals. a completed while and X-mile feet XX,XXX many XXXX and successfully We're beyond. exceeding just lateral, we update likely in laterals a XXXX planning in out TD frac X-mile and on drilled and

our X X X-mile a to wells approach converting X-mile initial As reminder, will DSUs X-mile DSU. be to

EUR comparing Chord's well consistent nuances spacing. wells economic This of X-mile of ultimately to X-mile our on some on the some the topic progress we discuss and make evolution laterals, on risk-adjusted with look of they is how relationship more a Chord's unique XX% story. like laterals, X-mile to wells we're given highlights the delivered as to XX% inventory program, similar to X-mile longer wells capital. we than wells. execution and Slide existing when more geology X which longer However, into returns X-mile of are only Since I'd these convert analogous for higher, could drive benefits

past the years, towards and its Over fewer shifted the core wells drilled more has in several acreage. wells Chord X-mile on X-mile western

per important. the and laterals higher stay X-mile between declines our cost differs well. the of All foot a a per shorter Well deliver higher X-mile exhibit cost core that flat a and well right-hand as offset X-mile but have typically core the core well as foot. as better returns well foot lower need better laterals core more key outside the productivity more will well a the shallower lower production than acreage. the The will actually is than managed. Slide other laterals. of than by side or D&C EUR longer initially, certainly given profile you be wells offset The the the longer factors wells than lower are wells per similar generally way, F&D than well Western else X, XX% of and see be lateral. cost performance complexities Western costs another IP, the comparing actually than Said a the equally lower X-mile longer When On X-mile lateral, pressure well X-mile also higher have returns, for generating for wells side from slightly longer and depth, IP typically EUR analog is X-mile equal, X-mile core contrast X-mile on is to a attractive inside can

foot flat time, lead catch shallower basis. and the up to longer period will However, X-mile X-mile per the well well over the EUR on to declines an

the As of ultimately flowback Chord's to methodology quarter, costs. more saving sand lengthens restrictive ESPs, Danny most peers, prevents choke is last which and alluded life our than

data XXXX and IP Again, way this more basis. the Enerplus productivity drilling gives overall Chord's dividing drilling on productivity will on XX, implementing program. choke the well been per performance costs. rates per the sense foot, appropriate per can well have program lateral it productivity over misleading. completion which a by early of We foot initial you cost foot to XXXX wells, well impact long to length but of foot is often On judge restrictive the is per optics capital term, the to as relative Slide and the see completion By a adjusted efficiency average and year-over-year

is can program deliver XXXX. you the XXXX, expect 'XX a see, XXXX minimum superior efficiency to programs and the as As similar capital 'XX XXXX, to at and we

Turning as independent versus represented. is is very research peers. to peers each breakeven with depth and modeling inventory by similar use competitive pricing inventory. Slide X across an Chord's strives inventory shows firm, assembled takeaway company which to methods The key Chord's

analysis we While we third the evaluate is and our believe party, their objective inventory consistent. differently than

depth quality. inventory analysis attractive the Additionally, of to we illustrate multiples valuation particularly valuation, light in relative Chord's our overlaid and into

efficiency. to Lastly, I operational Chord's comment wanted on

to lower execute with and drilling continue both completions. aim and cycle excellence to for drive times Our teams

reduced wells days Enerplus by records XXXX new and acreage. drilling in on X.X times about the versus On regularly X-mile on side, XXXX we set cycle the

the crew is savings fracs, nonproductive pads, full-time On which XX% by our as time. reaching down most first side, zipper using increased about cost Lateral to production day completion feet and operations well per has driven compared completed frac generating quicker. simul-frac has on

and up, delivery. to now continues on really quickly. navigated be and in to Chord and our Richard. January our outages and team improvement execution and continuous over in keeping asset the Finally, very getting is downtime weather To minimized it's innovation brief our Chord it as I'll turn it February, showing sum online back base, driving volumes successfully frigid

Richard Robuck

flow more Thanks, in Darrin. as and $XXX million, which guidance give volumes, cash detail I'll and of fourth on XXXX In the above discuss quarter some Chord quarter, performance capital fourth adjusted quarter while better averaged due top were lower gas color was to well. generated strong expectations control. strong the about and volumes midpoint were $X.XX performance. end, WTI below fourth in guidance, total realizations, quarters. was volumes reflecting Oil realizations Oil well cost flat prior to NGL good which above above free the

for to the will happens in narrowed in Bakken differentials of were the near Henry XX% quarter, over gap due in in can some range. realizations NGL benefited course were when first in year. oil weather widen winter largely This the as basin quarter, our WTI than XXXX, but fourth Ventura the an expect prices the driven end AECO, XX% by cold And of the the fact, first in improving benchmarks at regional Hub. improve top weather guidance. of guidance Realized following quarter, growth in hits. differentials We gradually fourth is in quarter the gas at in fourth our the the and gas Natural exceed Hub realizations to such strength, typically of stronger the the increase which production Hub This against Henry quarter. which of reflected persisted Henry it benchmarks times. expected

gas both from deducted and as are rapidly realizations the fees fixed quarter operating we weaker NGLs marketing higher of gradually in for our times prices. the fourth gas certain hurts and NGL quarter. leverage, drives first of which but in improved higher prices, reminder, with the realizations prices a This in saw see As to over course natural and natural

fourth. and second full gas in in follow expect net exceeding seasonality the to is realizations exhibit year and The year first with first in to we full our Given the expectations. realizations of third a the pattern similar be stronger and quarter guidance prices reflected weaker volatility, the our seasonal impact quarters and

continue was operating escalation workover to LOE relative is downtime in our further to BOE, LOE cash expected of guidance Fourth $XX.X fourth were it reflecting line averaged and lower may and with XXXX, did in G&A this X.X% spend quarter excluding XXXX, expectation in costs. and was per with quarter line guidance. cash Production as to costs. on BOE, and $X.XX conservative in taxes merger-related prove modest quarter as realize Fourth GPT Fourth of our G&A levels. depending below at synergies. quarterly reflects quarter but to XXXX costs in better XXXX Turning sales downward was expectations. the per we workover taxes downtime our trend commodity $X.XX cash million million, $X

nonoperated taxes million X% million XX% in reimbursed reflecting year and of planning its $X excludes first the XXXX. of X% aggregate $XX expect approximate at investing cash approximate to quarter. guidance, $XX the EBITDA to to We taxes we minor base to below oil of Even capital first million of annual billion X% company quarter XXXX in In XXXX $X.XX to quarter timing to EBITDA, borrowing and billion. in on full largely of this base barrel. CapEx semiannual was million the is with XXXX, $XXX redetermination, to increasing at each borrowing per $XX and of still elected cash midpoint of adjusted $X.X and shift, Fourth -- $X.X are the billion setting $XXX February that shifts completed amount commitments prices

we XX, hedges As quarter. year-end $XX investors its senior at across revolver, of our Separately, unsecured cash million of had leverage $XXX at drawn free our X.Xx million remained of Chord Chord to credit. of flow of Net million the last XXX% letters as XXXX, since cash under returned and of layered XXXX update. some notes, $XX on December $XXX million

latest can focus integration their position for for the XX derivative found work operations. thanks investor in In Our presentation. on team to Chord day-to-day February again intense all our and on improving closing, front be as of the hard the

put they to with over continued going organization the progress the pleased of performance XXXX, that the position we've and forward. made the are succeed the that We team substantial in

questions. call I'll over with to the hand Andrew for So that,

Operator

Instructions] Scott Our we Ladies begin is [Operator gentlemen, the question-and-answer from RBC. Hanold question and first now from you. session. will Thank

Scott Hanold

this Can you some in high what forward? of just capital And of billion see the us of and there's end increasing going that the could just the just outlook the obviously, to maybe range X-year $X.X give end you lower experience sense have you low is a it of I pressure XXXX on for can downside your in potential simul-frac Is context like that? to give what the drive and even mean you outlook? But year? -- kind around us more or -- with some range.

Daniel Brown

the for Thanks Scott, it's Danny. question.

always is put XXXX, of So as November forward plan, cycle things out last we we've do look static things. somewhat when we're times, sort rolled don't think that and this that in around we of I and at these ranges in to going efficiency, this. view a include improvements provide in we've year taken as

to year-on-year, through we and incremental the do industry that on too, the certainly candidly, degree to the so And improvements we we see will see and that overall benefit that, roll program. of does,

and things, to like slightly we -- bit. again, the work probably is we've pressure we before, we do these number. conservative So pressure a on be upward mentioned like from standpoint, than to the do expectation to always a got my I've through like be that service more market on we'll have downward year. Certainly, in

contracts And those we're and to and now off commodity on, and so certain move probably some line I'll maybe can you I either I along levels, that where always think flat, direction. in activity items. tell sit looseness we've got rolling things relative

us drive could things of number a So lower.

performance, to maintenance have trying float along see maintain capital and stronger see better hanging because we'd level. to could level. capital a wells well us past that to things in let bit drive importantly, chase our lines, performing little to if certainly not The drill thing down encouraging that's intent we in, if those that a And up. seen production we is the deliver and we're really we production think another I lower probably

So November that last time a to this I relative things Darrin X-year of think second efficiencies to down. year. we've your improving all static no could as several question, it was push part the a got Over look, frame of mentioned,

benefit all will And X-mile X-mile we so sort come of to years inure in of the legacy will of developments, to the that program, as X-mile as the the capital just out on better laterals the may into and XXXX program get continue XXXX. and existing

and we we rolled that was going same a put weren't and we to little confidence exceed, have there high feel that said way. can meet when So thought out, something didn't the it I conservative, or we we out still we

Scott Hanold

but That's that full Is question try hate it is too, to appreciate pace another I -- the included simul-fracs here, doing is And as current in of -- basically it I plan but simul-fracs for that, I Okay. to of missed you part if -- that. guess it, I the your year? well? the layer said

Daniel Brown

necessarily X X simul-fracs crew. Well, got doing -- the full on doing we've we've got crew -- We're crew. with doing simul-fracs We're crew. with partial we're I and mentioned full that actually partial not

that benefits so for assuming clearly, a I But baked is as you crew, efficiency lot full all that. improves, from that some in. But And that can got simul-frac. that of see we've think

Scott Hanold

Okay.

you especially that XXX% sense XXX% Okay. my as it's then leverage. all might kind continue that obviously, the flow look up forward your very all here, quarter. mean your it was it look, of all we and towards buybacks? stock's incrementally bit buybacks. of Like, do what robust does pretty And to Does I you where for indicative with of at we giving today, push did under Got fourth cash in very follow-up I buybacks a in but it. to shareholder touch that low free going should still being mean, -- on can make your quite question, returns.

Daniel Brown

compelling shares cash retiring free what a we say, day, debt that to we it. our leverage sort lot our generated end at And that make look XX%, have incremental position sense, doesn't think we of a have investment of it is really with capital the as about capital do is see with the a of what incremental where this really at opportunity. and level it's we allocation And sort decision. I'll at flow above as -- of Scott, we Well, the

Operator

is from Your Capital. next from Whitfield Texas Derrick question

Unknown Analyst

where want XX laterals to Slides X I between compare for to on laterals, been Maybe control it's that X thank setting and productivity you the seeing to chem [ you then are foot of per your X-mile well aside the And as life cost, there cost are over better for X have quite specific laterals you challenging curves in when well? given variables disclosures to moment, you are per analysis. the Regarding with cycle benefit for reps? and X-mile meaningfully to foot X-mile a of the start ] seeing times additional converge

Daniel Brown

So toe I'll start better seeing with not the get that importantly, with to after sort frame. more converge you the of think toe after months, basis them, getting the there you're to latter well. within to to TIL I months, it's X certainly but first. on with per not drilling per with faster. on cycle X-mile see EUR recovery We you -- X down absolutely about laterals, better I -- of the and pretty foot the and times, EUR a anything, With XX% are And an I as completion cleaned practice, way an like to get around We're with the doing but of at equivalent these we getting think basis, things -- X the clean start convergence that X-year essentially time foot well all and respect that a the out. think to getting on out cost just just and and associated we're

months in first difference X EURs. the that or the you Q see is where X really So

and the focusing as very pointed it year. out. well if so way Darrin all early misleading, there there about on time you're can a within you're within you're But X months, And data, be the

Derrick Whitfield

And X-mile challenges then you first from do see X-mile lateral, transitioning And cost cycle what for what for observed, after operational you've accounting as if to any? laterals speak you your could the X-mile times? the benefit regarding Terrific. then to

Daniel Brown

to you to been going Darrin because imagine. can this to as first close real respond that he's well, to I'm ask

Darrin Henke

concerned fastest days. the off hitch. Yes, this well was rig Derrick, job The pump somewhat being went stages has in wood the lateral at the rate a we losses, X-mile pipe about the went to frac the release, frac were able that through X-mile out kind We spud of -- And just as run plugs friction but knock really that We and point. able what just of XX.X this without well. well the at all on do able basin suspended that for get as we're reached toe. the with to then first we to in all TD morning, really And would beautifully, one gone we going drilling well. frac be

say, So gone operationally, well. I very it's knock on like wood,

your uplift from -- part get we'll to similar to going see see same of second to think similar see We We'll the X-mile the X-miles. X-miles well. different ways basin. to have of we're of uplift to We looking going question relative performance them lot road the alternate the People the to kind But the going X-miles names at from X-mile that. X-miles and for dramatically our even change of inventory a also beyond really and in shapes. And X-miles looking X-mile down well. perhaps at a to we're from

as there. work of point. of not is our none in our lot at Danny into that, plan baked said, X-year And long-term on a either is So this going inventory

Derrick Whitfield

for Thanks time. update. Great your

Operator

Truist. Your next is Dingmann question from Neal from

Neal Dingmann

My is just you operational question your question efficiencies I is Darrin. really with just now the and on integration, guess, for my

coming X wondering to when at some And see up if year, from X-miles. be from? you continue see improvement the things X-miles I'm this now chip gains of so, that? will of sort of and do away to set continue can the sort you X you think where just going to efficiency You to those

Daniel Brown

It's appreciate better. question. you get I the incremental just So again, -- with Neal, reps,

get to from we're some so starting belt a under X-mile And reps perspective. our

seen the efficiency move across we simul-frac the Certainly, happen, that from last an fleet. year dramatic adopt perspective we And so a as improvement saw and -- to we've

you'll continue And with a down grind think that to see probably a got those few of see serial course so even we've think start strong the more incremental to year. do over improvements We're of X-miles. us at the Darrin And you'll the just those plans of improvement on on so I I mentioned. and dramatic #X X-mile

this hiccups, these sure into know and and get that's original and this be been practice what But I'm far going our my on program expectations the with efficiencies things so And quickly we its the without are. pretty we drive more history is won't we as they At programs to surpassed with least seem in. more, organization. we all do industry

wells. about, is X-mile if we're I X-mile program X-miles and you the these as So of incremental But probably of sort the on X-mile well. to really on of replace again, X see some contemplated we'll of us see delivery the uplift early consistent advantage on think able a improvements to take steady relate significant this start we've to see mile, could as talked to you'll improvements X-mile uplift, sort which

Neal Dingmann

like that M&A. question And upside. just a then Kinda on Danny,

guess As And But inventory. like does actively it doing ample said, you how pristine mean certainly stand there out with to you is, look do same I think balance of today? you'll sort all question you I my be that sheet. think again, have I M&A what landscape could the something?

Daniel Brown

get we great a better are I often point, got we set for. inventory feel Neal, think we Well, credit than to -- we've your like we here, what far think

an better, and picked it's not this value And value we has if that to shareholder the of say, do to said, I'd what day. think what where -- day, inventory there's not obviously, that the it but M&A. think is decided industry. be, continue And just something, happy I've us we you've that's make at in like we And evaluate on the advantages I patient of to you'll end see M&A size we've we'll see the And bigger. has about delivers our -- do want so think you But we at way true And have do to scale I'm through to a spots the position. with transaction. us shareholders, because That's seen to we do just the to end that. deliver do

something think we cycle you'll delivers see recognize something, if And has be to that I continue So to do be patient. it value. that us we'll

Operator

Oliver from from TPH. Huang is question Your next

Hsu-Lei Huang

out the to underwritten there. remarks, Just in of kind alluded fixed have and kind I XXX you wanted to I you on in prepared outlook. that a And gas know NGL see your of component start all realizations.

if an market. in sort of see your in or some what prices there for thinking the or might flow thumb seeing Is cash sensitivity $X sort Just upside AECO of of any rule uplift towards we of streams? XXXX of gas improvement sort terms we're to in

Bob Bakanauskas

great Yes. I a I think mean question. that's

spot You're on.

see As tick you'll starts us up. continue to up, tick to the price

because prices thing that I as But you've for NGL. because allocating gas what's think happening impact definitely seen same watch like the is well you're both with the time we're to NGL at right. and

prices gas we to up, As go value. be incrementally scaling capture that will

Hsu-Lei Huang

be there the Or Okay. the aware there takes roughly of in? should to it always is kind primary likely if But up. line concentrated a I able out specific flagged non-op similar of mix Williston. And the Any from we've to the it's that know on be the you're shows operators to your activity speak the of side. any activity part who when just operated Makes just decent kind of on if color magnitude isn't maybe this we portfolio? basin, sense. how being versus sight year, is of for great of with sort given what of to seen the

Michael Lou

question really mix good a on side. this the the across operators Michael. We're Good is seeing of Yes, non-op basin. Oliver,

at continues activity So non-op of and of proxy is Overall probably you be look overall. kind a in activity can whole part of as the kind basin to basin that. a program for our the core

seeing the very good basin. still a parts activity bit in of of So we're that quite

think to operated it's our very similar I program. returns

like across any anything of program. think that we're the diminishment kind So of see that, or expecting I returns you'll don't

side good really operating the both on terms So the and nonoperating side.

So excited think we're learn We're from seeing about them from can program. operators. We as well. a of the bunch other we activity

talk equal watch we our that we'll sure about to So data some as many companies. well. people and they're because that be a of there's be that improve in make basin. to in sure the things to bigger across them front We'll making continue it closely Not continuing watching testing lot operations as different on

Operator

Abbott Your question is Wolfe John from from Research. next

John Abbott

oil gas tariffs is think and on cost how your side. It's you question if to would were do NGL But tariffs. the be on impact implemented, first the realizations? not My

Daniel Brown

is Thanks this Danny. John, for the question.

about probably the is implemented, I would And it's in much a think to general, benefit don't different when generally, tariff think be of tariffs, the domestic when I it you producer. think here.

I to think think the benefit the domestic producer. by dramatic, that's the probably domestic from -- perspective, you foreign I a I incremental a incremental barrel. probably probably felt refining an oil small and see the producers and there's from it's -- don't but pain from small some of pull maybe level think refiners incremental

kind And think we it. how so of that's about

is there. -- supply-demand I'm which demand, of overall a -- what some slight pricing pull a on and can't butterfly from it not what's should go may does the our say degree, I then perspective. prices a upward barrels, from does has tariffs it how what But demand where see just put on To Now effect, sure. pressure a too, where the broader the what affect do. We side effect

So there. you lots of if barrels. one incremental isolated just moving pull I that thing, on probably an parts its pure, domestic think But on

John Abbott

Appreciate in your it. latest prices. on the your question, thoughts What position? we've Marcellus a maintaining improvement mean, then seen And is gas I for non-op natural follow-up

Daniel Brown

Marcellus the a here we in we've and in Well, we value the as from core for think is how shareholders to the got had is think and gas -- production very asset, we of to a have portion that good maximize before, producer over both higher asset prices We but recently. natural been not capable the delivery we a it under and of Marcellus Williston see going look we've non-op time. great in portfolio, to mentioned a we're beneficiary it's

Operator

question Your UBS. next Josh from from is Silverstein

Joshua Silverstein

follow Just stock the use were stock. valuation sheet just given XXX%, you guys trading the the of above balance go I up is quarter, know given curious you wanted on would where to just I'm you buyback. but the the to at? at this consider XXX%

Daniel Brown

Josh. appreciate I Yes. it,

said, it's As I really us. a capital allocation decision for

see you've sheet use compelling -- can you make allocation so capital the in the seen this balance decisions. past, And to

And talk about, are to et we at sort capital pretty that. opportunities, and clearly it shares but at relative think a we're Ultimately, got cetera, something leave our so right we now. compelling do increasing I'll leverage where investment of way it's we've

Joshua Silverstein

XX miles, Three what the in from then duration, Got before. you just of around mentioned Is wells in estimate. just on a kind a guys But go there inventory I many to years Bakken? assuming you into third-party around And are I an it. know assume Does you can know it's anything X give color XX the left the inventory of Forks, years that. standpoint? Middle how somewhat more

Daniel Brown

-- a think, It's is inventory, Josh. I middle got There's essentially conservative, our little Bakken-only Three say very bit talking inventory with in Three our percentage Forks. single-digit small program. We've fairly I'd a little Yes. Forks. that's we're associated

a that's determine potential improved to this actually really higher. see some march some capitally in in the program. yes, to spacing do you, our well. delivers that that's convert will that resource not middle returns. we're program, it of of to the laterals could to the nice maybe us it's it, straws in pretty potentially strongest see of of that So effectively little because as going come spaced And able longer attractive and drain as loose Bakken want we is as the I result areas, candidly, areas have we efficient we with more that way economics most the so to And become to a tell inventory some are few as too these into as see because conservatively be areas the and investment field -- I opportunities, what a the degree we possible

you if determine up of loose maybe has -- of strong immaterial our X.X the ground bit. manufacturing a But when in resource But leaving that look position I if that too not spacing impact we acre offers And we think sort a spacing not million tightening inventory. that small so dramatic. even will we're inventory. then into don't be are overall it and we'll are we up returns, our on consider tightening at a there, determines that

as inventory, maybe So I'd our of it conservative, sort say at it and we see our summary, I'll somewhat -- I'd leave in say that.

Operator

Diamond Citi. from Your question is next from Paul

Paul Diamond

you of the about X, X-mile, your extend that's of So set but that general XX% talked -- currently X-mile kind conversion inventory to DSUs set. X-mileinventory, the conversion also opportunity of X, to

matters of think how much of that? or all kind economics in of the Just Is dial XX% on about wanted the how to to is convertible? that be kind of just it it potentially and just well

Daniel Brown

X-mile I'd Yes. greater generally XX% we've inventory a of, I'd call we speaking, say, got think than sort currently. from it, perspective Paul,

X-mile And we then the of And got some inventory. areas balance there's a so we've that. actually that is then -- are X-mile have got part lower balance that is some where opportunities. may We've than some

that And so XX%. it's outside a mix

Our get up that plus be be our space. to goal would objective into sort XX% of would and to around X-mile

actually we're even going where -- in objective think where get higher we And be be we're to may to pretty is is. a it about objective landlocked. to investor talk our have that. there's actually we difficult It some our what than we so I recognize areas candidly, slide somewhat maybe our deck but And XX%, do

something XX%, is ourselves I to greater So goal as we're but aspirational for. -- for X-mile shooting getting or think an certainly

As think performance and can to well, see our respace drawing DSU and able we miles where X if board see from the say, back strong really a we'll upside. layout we I some go the of that, to X overall miles are these to X-mile we when to see then from

first. imagine, in because you ground before We a do, need whole wells So effort -- more get we some results replating out and get see a few to first as to well to to trivial the basin producing. the we undertake not can need really that we is need this thing that

Paul Diamond

Understood. [indiscernible] clarity.

follow-up. quick a Just

dropping about talked rig a all You midyear.

What that. the all expect should to year? more half -- be QX we be front to Is but how cause talking to just that of really and pulled push the it for kind just the of timing trend and should could be how timing back of this? of You're about or is into CapEx of portends that think the forward that kind weighted, about

Darrin Henke

letting at plus this or looking midyear go point. we're rig fifth at minus The

think lot in than time What see well of on a better getting that I XXXX rig production to change down. plan. could we the So you'll timing rig, with in we improvements what run If don't associated see forecasted that productivity. laid impact our

we could maybe That that working positive you our for the wedge, is to and thing production run focused while every us rig be day, would from need downtime. release see So team less And minimize then the improve a our program. that production times earlier. on overall

people maintenance lot levels don't capital referenced a lever that about program the that's think Danny production maintaining So a of of earlier. and relative to

Paul. can at this color that's time, So we that share you with the

Operator

is next America. Hungness Your from Bank question of from Noah

Noah Hungness

midstream my we've question, in here to have side competition the I guys wondering, you could renegotiate wanted that read-through ask, for was seen I lower all or on the And there some For maybe GP&T costs? first a Bakken. just is you

Daniel Brown

pricing. Well, looking the always say best no, make that that we're getting netback I'd and at we're opportunities to the best sure price

we're grown may do clearly, forward, can that those hard always contracts Michael there scale and we contract add we any even both -- for have that the we as he's opportunities incremental off, that order win-wins the even at got where deal organizations can and get we're ourselves. of those off, while to And things. make negotiate things those be as in roll place we've contracts best ask to so I'll better move to got. some as us are can things roll say before comments that going looking I'd for we've we for

Michael Lou

across Yes. No. throughout us. of is of pipeline different of creates pieces, that there fantastic got is kind oil, competition. program the a all I gas, systems mentioned big There lot kind the We've of basin. which which spreads just There's pretty out for you competition, mature kind a mean it. water,

options lot us mentioned, So in basin, as of there and for are very you a competitive. the

as continue we work mentioned. Danny costs on, can to So hopefully, all those

Noah Hungness

question, non-op And to ask hear. great That's my for the on wanted then second Marcellus. to I

seen more we've attractive, looks baking Marcellus non-op from position? corporate gas are you and and As more 'XX kind production of your into here up what the guidance gas prices gas ramp guys macro that

Daniel Brown

again. Danny is this Yes,

Marcellus. between So currently, feet coming -- coming position that our through million thinking we're XXX million there through in cubic and XXX non-op

Noah Hungness

as follow-up year? any clarification. profile for Is the a there for in just there -- production Is quick that seasonality

Michael Lou

General, be relatively to flat. it's going

that the see from across lot that a are gas all going year hold goes coming into where there that bit You early of activity at see additional end to a a grow here, the that last I with little a price. gas with gas of you're scenario activity. is this seeing continues to up think area. price that price of come -- of basins, the part you're And seeing little year, in obviously, kind you're activity up gas We'll seeing

So there a good see upside at there level. gas if is you potentially prices some hold

returns, great Great, great so fantastic rock, returns.

at So kind better. to there prices we're gas they're it of allocation if a capital hold from put really where standpoint excited or

Operator

the next next from again, David Once Cowen. from question Cowen. is Deckelbaum TD from from TD David question is The Deckelbaum

David Deckelbaum

the implement prevailing position, for. obviously, just not of Marcellus. share serious gas the credit is sense as source of something that about opportunities think that's the do this buyback to now? just wanted you years with a next guess, now. able again, Is to price over that might under I then the strategically of follow-up attractive couple been and take you you've a the position, something And funds there in that How a on getting that view considerations the I given strip? right you're ask All maybe advantage arguably, And that's as in

Daniel Brown

David, this is Danny.

that we got a with that it's So strong core it's not but -- of operator, under associated I'll It's great as kind it. said, returns It's to asset. think great a we our portfolio. say

one we've that decision do a again, that is moment. allocation for would not of that us. maximize about a shareholders core that's what monetization potential that, with do to ourselves there And And is of would want be out we at delivery so we're thinking so that proceeds any position out we option, And for we -- what capital and to value get acknowledged obviously, a then asset.

David Deckelbaum

cycle cycle peers think curious -- I guess, highlighted. relative improvements? holding just time in less the to efficiency guess as then think obviously I or guys And 'XX was and more longer it obviously capital guys you that. as capturing but relates 'XX, length, how times this to I improvement incremental you are we increases versus times efficiencies assuming laterals productivity improvements like appreciate lateral improvements is cycle back -- But because 'XX. it flat think in just highlighted Are in just about I you have you in that you about do just in with

Daniel Brown

the X-year the incremental were, whole incorporate we're of the would half year. doesn't lot we back we have currently to kind of viewing say, XXXX I Well, how plan improvements a towards and program relative last of where

that gains X-year we the improving sort cash roll And our find both free through so incremental should flow, ability to overall time straight deliver to that over program, any efficiency frame. ultimately this year of and

out see which, and again, -- them, And it got also intently I we've tow. So fully from we expect we've successful whole said, will seen focused really and that. X-mile we've doesn't to see in Darrin program, as first team efficiency that's drilled that incorporate a uplift now capital one a our because we would those got any on always significant

something want lower free that through CapEx level. CapEx feel out both front in ourselves lower for because that put So efficiencies we've we incremental these -- 'XX about can there through those again, roll for X-year flow plan, from pretty spending we've my and make got expectation roll still of through, good as we'll for that. I out beat. we And us, got is to either or likely sure feel the see efficiencies see them achieve to and cash we I we've But

Operator

is Research. question from Brothers Investment next Your Parks from Tuohy Noel

Noel Parks

of to around notion Just whole thing just of wrap really couple the trying things. X-mile laterals. my head One had

the As far is X-milers, new introduced as are when really horseshoe I protection specifically you're a mean, you guess, with or expected X-milers. as pad know the doing essentially at any it like there issues frac shape? this point, I just Or multiple same

Daniel Brown

Yes.

the can now doing X-miles we're really are frac of. we no looking really at that X-milers. And protect straight issues So think incremental

of We is because at is foot And incremental is do recognize alternate alternate efficient we way well be do look that capital to lateral But go so that a to incremental best better. be going the to things. shapes the if look -- foot incremental foot. of we'll always straight almost most we at we straight, think efficiency which can't too going

at now And you what concerns X-miles, no as doing so looking really X-miles. in right straight difference X, protect and X-miles we're that's relative frac see we're you were what is to would if doing

Noel Parks

from Enerplus thing, sorry, if Great. really -- to industry Was as with out essentially reserves. any just Enerplus, that just I'm is the pushed this as point looking And the grading in far rule? done planning far Enerplus the X-year as high the CapEx as one reduction curious And do everything at inventory in there locations, you're at integration.

Daniel Brown

Yes.

that to opposed rules reserves rules brought the had we as system, over -- clearly, SEC Canadian followed. So we our following as we the into Enerplus Enerplus U.S.

through. So that rolls

We also bookings. conservative we a like of to -- generally bit PUD our stance take on

out the practice so organization. that's not And a fully we're long-standing and to X the years, booked been of

incorporate both yes, and that those released -- so so so -- we've reserves effects. the And

Operator

will Brown no [Operator turn remarks. to further now Instructions] call closing at this There time. questions I Danny the over are with

Daniel Brown

and All dedication. right. our to out, thank I all for to hard close Thanks, want their employees continued work of Well, Andrew.

great of deep in economic conservatively strategic decline of we and we've which base, low yet team going We what feel production a forward. valuable created lot about fantastic and to increasingly substantial ability coupled asset. oil spaced believe paired a have our accomplished have with high what lower-risk with is a operations portfolio deliver highly our has Chord confidence inventory. and oil-rich actions, Our cut is rare and

our I and that, with for call. thanks appreciate And joining interest, everyone's

Operator

for that your Ladies disconnect this concludes please ask today. We and for lines. gentlemen, your thank conference you participating call and you

Chord Energy (CHRD) 26 Feb 252024 Q4 Earnings call transcript