WPX - Earnings call transcript Q2 2018

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Operator

Good morning. My name is Jody and I will be your conference operator today. At this time, I would like to welcome everyone to the WPX Energy Second Quarter Webcast. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session. you. Thank of may Director your Relations, Investor Sullivan, begin you conference. David

David Sullivan

On after Energy. available to the Good at Kevin, find appreciate the and Energy WPX our of the CEO; CFO, review morning, press slide Kevin so you. statement are and Please our the the this end will COO; today's presentation important the release for Gaspar, your that today. wpxenergy.com, you our Muncrief, reserves remarks, team the our Clay forward-looking website, management everybody. will yesterday. in will We Thank Clay the Q and Vann, disclaimer was market our later They presentation. call. morning. to of Welcome the the WPX them. please issued Along presentation. other and Rick, our integral questions Also, on members earnings second interest filed after are oil prepared review be Rick presentation review and quarter with gas closed and

So, turn to it with I'll you. over Rick, that,

Richard E. Muncrief

morning quarterly David. glad today to you've we us on most On behalf the Good of team, our joined you, Thank as our review we're results. webcast. entire recent WPX everyone

men our come our This we've that equity WPX, As not investors. enterprise and the value. $XX but the in only all our company we This to we'll also of has another this at value said billion continue. wonderful here morning, seen women hardworking is approximately many has in total due milestone and growth for

the nails. expectations. why and and other to results It's and checkered to quarter-to-quarter. recognize ask positive. show It's energy creates recognize and why this value. assets how pleased I work, point part To my they stuff doing what together, innovate we such time. fulfill our makes we've increased leasehold, In industry, a a of oil what so importance our quarter chase product. dressing, execute know corporate our constantly It's mere is XX,XXX simply they exceeded is window the story forward-looking much the but I'm flag how outlook growth Our people former accomplished barrels quarter. super from work proud to some, this compelling have and thoughtful, ways our of do why as decisive, critical people like but as those things. our tough I'm day It's it's why We're each volume the our look with from last as they have end defined champion they unbelievably we be sound of with also have goals, and rightly what responsibility the your their crisply you in geology since culture challenge right by of how performance may so the difference to as is view. team as that market short we the to business, our a a of

to turn page X. Let's

skis. tremendous place well we're to trajectory. on though very that get poised there's remain to create shareholders. of a going well our Even WPX we're reason keep company, disciplined our hallmarks teams a And Permian ahead Our to to value. delivering opportunistic no are are and and These Williston approach our in exciting seeing spending basins, for results in our both with as of

growth because ensure These we that they closer also Our takeaway infrastructure our to step build-outs contract. have facilities vital capacity our as moving in us pace of profile on to This well. realized. to development capabilities us are under is Gathering the lines critical compression marketplace. are us one connect product the strategic to equipment truly is focused stay and serving such our helps

in big, lot day of a big get basins. before, importantly, I've seeing short complex fairly barrels day taken in XX,XXX moving we're creative illustrates grit That's where of oil a comes of is with where strong from XX,XXX parts results per our barrels growth favorable As slide at It's a today, a deal. time. execution a we're both lot bold and chart thinking over business and a to but said we're This the most of to to moves, our this headed. from

X. Let's page turn to

page. strategic this spend. what natural not the is every see Internally, every will sake. annual we've drill put margins our growth on this better the actions we bottom growth oil barrel. shows white, day value-driven From and the dollar a we I we've in They're we move spell roll center and do volume employees. the higher really what we In always price increased what on said like. looks for incremental our story. is part profitability improved Our The lower year there like We've that cost, of gas. only black slide crude with grow transformation on of and both the half imperatives than revenues that front and growth and financially we needle each may arrive, for commodity well you we not out achieved were a environment and to be scorecard of out And for returns

our low-margin on a feel following a gives the over You underlying as strength several focus, how prices of view our the much picture our oil market on we the truest decreased total and a years to us business EBITDA better of Today, by basis our chart how saw company's narrowed The company. climbed the gas BOE volumes adjusted unhedged of shows of sale due EBITDA can natural than our We forces non-strategic reduced transformation. point or more is unhedged assets. exponentially adjusted dramatically the production BOE clearly our see unhedged half. weighted production basis cut our

matter as margin measure. output. much Inherent by all we this in financial of example, For XXX% that how is our that improved Permian higher since obvious has fueled focus cost in entered up XXXX, targeted has It's pace cleaner, we leaner the of the in we're our matters. isn't top some business In peers. our about be of Wall sector. against and energy with growth companies. Street's attractive This just this margins value faring matters, any Growth any competes transformation how mind, my performing we're sustainable that for real would

Now let's turn to page X.

oil our We we very success. down quarter pleased volumes of just is As results, our numbers the X,XXX guide revenues our a That's which us. day. impressive million. of drill barrels of progress XXX,XXX total second for increase I'm made year-over-year. oil shy XX% by into continued a second by accounted that barrels $XXX and XX% our slate of per product and highlight day, volumes record per for were Those NGL possible meet Total quarter by new

also was then We've next XXX% flow This start year flow because cash. year cash ago. quarterly capacity is higher followed a EBITDA so stacking on important neutrality measure it $XXX through and again million. our most shows That's up leverage than Our reach is cash to done to our year-over-year. lower our our unhedged XXX% and pledge adjusted we've And once fairly importantly, quickly.

operations. talk Let's here's our Gaspar to Clay turn page and to X about

Clay M. Gaspar

operational team as give the and is everyone. partners. bearer our of credit in It's you, and of strong the the performance work result always must of again alignment industry evident news, a due, the be basins. to the Delaware the both great of I The and but where once Thank greater good credit WPX performance Williston hard is nice Rick, morning, our

production blew per XX,XXX with As we Juan the I production in the sold call, the by day. XX,XXX quarter. Gallup proud barrels goal oil San divesture grew we on replace past mentioned second quarter right the goal to we first barrels I'm to this growth day and that the the a a set we say in actually quarter production from

quarter execution will It's upstream a competency pack the pay for to numbers, of being just up The temporary strategy lead in to forward-thinking opportunistic mindset. core and show This marketing are Delaware. our an and our Our organization. but this work this a come. as of dividends forward-thinking the strategy wasn't in we continue early years to benefits who continues second

and keep competitive future. opportunities, we'll into well out those out our seek to edge continue We the

with infrastructure and our In addition, we this flaring larger get water reduce well recycling, the other We're build, of and pad development. currently because Basin up handle larger entities out-of-the-box by rates well scale approached ideas. generally expanding Delaware to and reputation we forward-thinking

so inflation sand. electric like and with pleased very partner so, had pumping line, and effective alignment. We said, we've to cost fuel. like and tubing Last we've services, in doing That us. also continue we find land fills every strategic to the a ticket for often, hard well in bolt-on big make that acquisition in rigs, And items We worked trades. very were water very items lock been our in steel, gap coil effective some land year, a we very

on well these Although we to of to costs intently, significantly none the are watching detrimental items the pressure we're inflation. and these work economics, mitigate

we'll turn to from The results slide about zones in Delaware. to area impressive let's for drilled chart XXXX. this XXXX well Stateline shows slide Now results the on and X, our all talk

prior for mark we well should XXXX XXXX. average the step another longer cheaper steady make that industry This is stated, that this, on understates greatest for. average look of the of that length. routinely that well foot it continue see, normalized the future at effect foot for can be few you be the the combined the results This entire also noted This basis, that at looking next of believe is a to on a on we're As the good change. a exactly the just It we note per This of I lateral progress It's being with per in the illustrated is pack. is challenge materially WPX success. and ahead substantially productivity. productivity going plot to bottom a is success are to WPX but the strictly up slide. a returns. for that quo to higher To drill impact basis, to on the steps generally prevent Simply important returns. enemy status this compounding causes is completions way look for above evolution can results productivity, laterals much

testing and cluster started XX% on feet. mesh the we're XXX% also up to what iterate and XX to XXX third the testing look and in aspects XXX call. in longer feet, spacing July, which continue those of sharing sand, early results to tighter we forward stages we approach quarter well On construction the critical right in We're to completing is at down several time, same development. Lindsay our pads, We field

let's Now turn X. to slide

oil As see has of Tucker mile-and-a-half first seven-well, oil driven equivalent an Draws. to oil our almost day. slam opening Delaware but barrels the heating on the fundamental we're hear mentioned second days, quarter to We capital into option by pad IP cumulative believe as first as XX-hour production production X/Y growth of of our WPX. days, precious is oil Sunday the our pad average in of Lindsay grand our XXXX. benefit are Island deep my This even barrels our kind This time, This XX%. in per thus, mid-July, barrels quarter of IP at takeaway XXXX the opportunity Williston near- can portfolio. XXX%, exercised rich in produced I drilling willing recent to to next a X II day. oil of results a Oryx up grown is just a the investment. you critical impressive story. million of oil them, Lindsay bar is XX our like such chart, can second wells the barrels of mentioned investments ownership And increase the internal our a over has our This oil invest have challenges has long-term our from call, competition when team. of to preview, these have X,XXX full this with XX,XXX of we'll a already on XX-hour just in In – well And it's its I over remarks. North and exactly with we X part I and first we same team Lindsay X,XXX that the XX

XXX Midland to first day barrels second from the barrels XXX,XXX In that to Delaware XXX,XXX up deliver announced deep capacity the will JV day During has will II quarter, Basin Howard, our expansion of the Crane. the in of gas XXX,XXX on to Oryx barrels and the Oryx train oil per system WPX with a day. month. regards this start processing million per from project

continues milestone The for plant XXX our to scheduled day second the provide is major original service per start-up in to the million mid-XXXX. And train upside be partnership expectations. a JV. of is The this beyond

our Basin. I'll turn of results you'll if X, the Now to in some Williston strong slide discuss

We flat continue in a program Boe North results The helped two-rig production XX% of XXXX Sunday pad us have after of during second And XXX to of we're there Arikara the Mandaree growth be first wells. XXX,XXX deliver days. the productivity Island quarter of impressed that second area XXX quarter XX-XXHB to and in strong first the cumulative with seeing oil the days mostly Arikara has X.X period. the with produced The million seven-well production. has Boe the XXXX,

Our the Island will of be pads. Hidatsa the pads scheduled seven-well year. to The of and Because scheduled is towards come the sales, timing remaining the production Raptor latter Williston to profile pad the the the pad online mid-October. well online of is Raptor of part for come North mid-September, Sunday pads weighted first nature are Hidatsa prolific three-well the these and and

the be the should coming Williston strong timing will a the steady fairly quarter. Sunday growth for fourth North Island While Permian up in very for well set quarters,

Now I'll turn Kevin, it update. CFO, our over for the to financial

J. Kevin Vann

today Thank are apparent, results showcases It receiving. the certainly worthy value is improving discipline is The well we're capital and today than that's attention WPX and you, is execution. capable both and the business growth, The and seeing. upon results of generating. company they're themes are the more This sustaining our Clay. the why before. healthy worth is very ever of a This

is Permian were Williston have. takeaway approach have to our emphasis mentioned, said our love growth and some results. as optionality for our adeptly a Clay flexibility because by we solid going also believe spot we Being and harmony maintaining delivering we'd in peers are our the Our the is in just We cost, adeptly like placing between of our very just the success WPX ahead many lowering in that like when getting as our the as way on as us We're strategic right of much prioritized been our reducing decisions issues, smart the Permian – experiencing of building a high-margin our today. play and others position prioritized recipe debt, financial pure do. success. on, operational others would multi-basin two financial great a our gives

of us levers luxury for we continue shareholders. the All that this being the us to of gives are of available to able value weigh to as variety enhance

review Now quarter driven of per our let's production day versus by the XX,XXX turn results. barrels to represents slide Oil XX Basin. increase and second XX% second a of the quarter is XXXX Delaware and

this Delaware and when represents our facing to all compared our As are peers first increase indicated, Clay This that the levels the XX% growth working the is extremely a basin. activity sequential manage that in Delaware first the in pressures hard This to team cost operational team results year quarter both of drove financial grew XX% quarter year. and basins versus this for strong quarter. Williston production performance has the versus what XX% The by of this from year. the last quarter

million, quarter, is higher second second Yes, than which adjusted year, quarter million reporting an $XXX improvement. increase. of $XXX impressive an the we represents EBITDAX which are XXX% prior that's the For

fact pleased developed were by However, strategy two our our direction worked our employees the I'm strategic We we've over partners, we the years we and that ago. communicated embraced our most headed. with plan, that

point, of where about this As being anticipated I schedule. are ahead we at think we

the percentage spot more throughout year, capture down, grows production allowing comes us prices. thus, to our as quarter, last at mentioned I As our hedge barrels

just margin producing. important as produced every improvement barrels the barrel continued of we number Our on is as are

storyline. per higher margin Again, driving our second LOE on improvement compared and the barrel production our when decreases is equivalent quarter, seen our of quarter expense the have For financial XXXX. to G&A

are was factors net of net we For versus adjusted adjusted loss The XXXX. a million income $XX by same quarter, million of $XX the EBITDAX. in impacting reporting improvement driven the

last However, our year our DD&A increase, driven per volumes. increased this DD&A $X by was $XX than improved barrel. absolute Despite million nearly higher by our rate and production

costs, better improve. wells better drill to continue we rate As continues to at this

second transactions In increase million where with were a debt. a per that a reduction used debt in coupled over to second has Gallup the result the retire portion $X by bond new in issuance and Juan our addition, outstanding barrel. during during a our is This decreased production, proceeds $XXX of interest the San large quarter completed management expense of we nearly BOE

expenditures versus second capital totaled Our million $XXX $XXX the quarter incurred for last year. million

We are some year revising of in give further a full our capital which guidance, clarification I'll on couple slides.

a here folks a Basin turning years differentials. I this slide ago. the to basis few widening believe we credit you've times give depict particular Midland-Cushing slide Now, heard marketing the way we into made XX, entry protection against three together after the hedging decisions it our we is now our that basis oil to have great the with that Delaware

As $XX The the to EBITDA modeled what peer see compared at and you would the can differentials especially our this set is insignificant, to of peers. averages some one WPX slide, the that impact impact the banks to has be of XXXX our from results utilized. of and they $XX for

sales Our with done together hedges, agreements of widening to the non-Midland portfolio was ahead of our pricing, that basis of the way exposes spread.

pressure. We these to five place in the necessary years pipelines of for have relieve until installation contracts the to that three

Now, slide updating full several turning guidance our for XX, we items. to year are

our year oil. raising guidance, production with starting are we full First,

XX,XXX Our feet million production XXX per guidance to is full year raising NGLs XX,XXX XX,XXX now between cubic barrels to and barrels to oil and day oil anticipated XXX XX,XXX to per gas full year day. also to per of be million day. We're

raising guidance we're year. year have through full the capital halfway we that knowledge in production also With our the to better reflect increase the guidance,

project would requests project the there. are reflected where of capital obviously to million. the wells of for phenomenal more optimize other to performance from capital received these in the heard lot we Clay continues our and projects these increase, $XX in we performance we a non-operator represent as There Of need approximately As $XX infrastructure projected great wells. million. Also, continue the down participate the calibrate is have proposals you be necessary Delaware. mentioned, to in totaling facilities of facilities the the the larger The Delaware, peers and

million showed Williston budgeting results themselves, in these larger Basin. Clay jobs for completions speak also as The are larger the another We earlier. $XX of for

billion Given the to year, to we $X.X we range the $X.X also have throughout are halfway tightened billion up over overall. guidance

price average gas We also oil the improved our and natural increased expectations. differentials slightly

On of a expenses lowered which Boe per increase. GP&T, expense most the except side, have the for expected we shows slight

increase geography a this more to However, due higher the nothing is provisions. than is adoption realized of this certain statement offset The increase on commodity prices. issue income in to the accounting

So, ago almost all like I has us, that have people years about financial remember record, but broken I well, is you a do transformation telling two to sound the talked we happened. execute. now

to Some that the will say, returns years be others believe the and going skeptical. team we would the power pleased portfolio that remains for come. WPX I'm of always is generate executed, to to

turn comments. closing Rick for it to back some Now, I'll

Richard E. Muncrief

excited. value Basin to help feel made and our us of but others Thank be decision still one. the goes remained now, the tremendous areas. and But to it then, the though position smart you've Adrenaline. a got for saw value, unique I each this were is that line that It And sure There's Williston and our And approach, market tongue-in-cheek WPX WPX a the have opportunities we we'll to time, to But of lapse. our simply being we're intentional our right Delaware you, The all these this. results like every I And on answer heard is time. been too night? well not like to capacity proving and tools trendsetter. plan, at think Sure, we go can't Well, even it looks we our on when really need it. might the the CEOs time at relaunch conscious, to passing pure-play being we've you the opportunities horizon, a easy. our with track where two basins with route. of we wisdom quality about keep I generate question our assets, operator. I'm the and just of better I hot. quality brings world-class We entered in the for day few in our when stick up pressured turn get say and at, rather that don't me, we Kevin. the back have defining Permian retain execute, people the the a our be in the What have sharpen a We open day. our And up now, keeps than days of to there. each for reset to better were before questions create

Operator

for a pause moment We'll roster. Q&A you. the to Thank just compile

the Your first Kevin Heikkinen comes from of question Energy. of Maccurdy line

is line Your open.

Kevin Moreland Maccurdy

well Good expected hinted Can on results morning. this In half you maybe elaborate you timing. cadence depending there? volumes second quarter. Great release, the the on Williston

Clay M. Gaspar

Yeah.

they kind pads I when we've on of come of up line really cadence think these and quarter. about the the that shown beginning big

you that here. quarter first think quarter saw to second I from

I to similar fourth. think third have we'll something

Now, background, we Permian substantially and remember, very in much that's steadier. – growing have the

seven-rig program there. a have You

more the and bit the these up so is they're those with because oily, You a so of have volumes. a Williston benefit getting pads three-rig large, the timing of you lumpier cadence. end are normalized much – little program,

to give want just that. you I a heads-up So, on

Kevin Moreland Maccurdy

like you're Great. Delaware, pad? doing and Lindsay the And there it in Is that really model. the on performance new the our a drove well specifically anything follow-up, as looks versus beat the Tucker

Clay M. Gaspar

Kevin, we're always changing things.

one I the call, a mistake I promise of never and would calling I made it again. do that X, on Generation think I

beyond a about from designs, Remember, it's we say tried vertical illustrate we're that some these spacing, evolution. feel in we unique them reservoir both Permian So, tucked thinking completion anything seeing thinking completions, with What we're steps beside XX I some can't – have right as and that of in completions I well high that to is well-to-well drilling know at reservoir I communication, one but We bottom of kind our points generation and team. our ahead engineers the development in many we're don't of about XX, model. the really iterating we're excited on, slide, on horizontal. peers but we're XX, on normal about now conjunction continue the there's think or the what evolution like

And into so rather the very really other and we've development has moving benefiting wells been interactions, some as positively full and in understanding a we're mode zone-to-zone negative of really many than interference seen times, exciting, which the basins.

Kevin Moreland Maccurdy

Thanks, guys. Good quarter.

Clay M. Gaspar

Thanks.

Richard E. Muncrief

Thanks, Kevin.

Operator

Your next question Heffern RBC comes from Brad the line Capital. of of

line Your is open.

Brad Heffern

Hey. Good morning, everyone.

Richard E. Muncrief

morning. Good

Brad Heffern

Rick, comments, cash in mentioned XXXX. stacking in your you prepared

Just the bit a wondering dividend? far about how you that if on cash about the sheet sort versus you you as could improving or talk Can that accelerating of some think elaborate little of as versus go. balance repurchase potential just uses

Richard E. Muncrief

Yes.

sheet, our with going at balance look it's continued continue growth. you to As our

but it see point those time, to in returns, know lower. some lower don't metrics say, a and at in even going But diminishing leverage as it's You're point of point meaningful months was, get not – ago. at I it's let's some as time XX

XX illustrate I we we it's in the months we'll still time that positive flow know capital. we have whether sheet, return thing think still means means that the to to the what the leave what whether illustrate it bit, at just used to the we it reason the to some drill term we is just capabilities to that cash want see of that way. the I look it the uses ahead, I cash, best out. and on do – it But shareholders cash whether we means think wanted is, we of our that capabilities redeploy balance stacking the really strength think we'll portfolio have. we we're I And

some have we the to optionality. think that's And make. we want point I key

Brad Heffern

And Okay. then, on it. questions Got a the of couple Bakken.

up Can you these those Island guys you two are So, Island? they Sunday remaining the talk how better there? And pads are that traditional North as secondly, mentioned for left. a Obviously, also you Do well prolific North all you wells. verify than Sunday can the curves any then worse, on about goes decline that have locations same color Bakken the they hold or work? very are time or those

Clay M. Gaspar

Yes.

Sunday So we was have North – XX let's wells. Island There confirm. first

this yes, remaining So, is the inventory.

Just complications of been over the knew, give around on disagreements little some bit geology we that. We only land through was ownership, We've best developed the group This, some a that. of basin. The wells. to-date some history entire gotten to was hasn't this particular that. reason through of in because worked it

Our land team has then, sitting ourselves job. of done we rock an some find basin. on undrilled And whole best now the the in amazing

that uniqueness ready spacing three these we kind had the of why was this go. and drilling So, of units particular to

So, that was your first question.

The is some second at question of which looking you wells. as around start the see you'll longer decline, the

We're Williston are We some in continuing putting Man, of rock. it they outperform is have to completions about the state-of-the-art remarkable they're Basin. of wells. way out well's curve the above into curve just and life. a and year of oldest hanging This that way the to type for balance the the

Brad Heffern

Okay. Thanks.

Clay M. Gaspar

bet. You

Operator

question next of Dingmann Neal comes Your the SunTrust. of from line

open. is line Your

Neal D. Dingmann

then, noticed well that of you thing restricted lack Bakken, came moving question sort mean, on Mandan, gentlemen. over mentioned for you the on at of, the X,XXX, Rick, despite morning, Good there. obviously, of And I same that flow. the Clay. I on equipment the a it, rate to with fantastic Tucker or back there. call kind Draw,

these on some still IPs at some of these other some for all areas, for takeaway of as be but just look having things there guess, of some both you're I how these – Clay, both long-winded the Permian, best again, restricted just back guess of is, if I'm my known of are you what I I or – choking ahead obviously, is, time, would the question are chokes wondering, of you did areas? wouldn't with the on much So, it real, these well, question in

Clay M. Gaspar

of answer so you And at question well a many things. there's doing question zone kind point where like negative is a doing we aggressively to really that the not want back of any negative very damage? how One, We there which to We of flow flow-back. that's tough a reservoir right. it All strongly damage we're – would are you're but that's aggressively, productivity. Neal, so to because on spot sweet rock. feel definitively in comfort these back? flow the well Ultimately,

You this. mentioned forward we and we have are thinkers that embraced

constraints. to ahead about all We of selling the think on the way internationally. Coast. about and oil We getting takeaway to are think oil it getting We Gulf ships the

of So, your why to flow-back and how well have constrained time. maybe the have you're equipment, the a things XX disposal much water put right-of-way to line, like a size get the of ability a can and before even Well, we about that on on Tucker steps at the it's particular that, in you do constraint Draw? water separator, amount

outperform on is five-month How very, The with great that As upsize a these do big one. and essentially better short-term wells news four-month, you all an is so flat value we performance. well? bring And that lines, cost strong Is about, interesting good seeing build our do just And continue for the we the loop very Or we a that pads, much are to three-month, internal it's benefit the much environment? do do gain? you well how it's obviously these is much very facilities, the we debate facilities? which expectations How associated build creation? debate. from

We're more completions. you larger money have that, be to to up. facility on able investing the accommodate that we do As come the completions has money, size these more spending

that infrastructure. greater we're pipe, that third pads, these Last many a for the think about we're it these a but compressors, comes building. big and the disposal into Well, underutilized. term, going months, looking XXth of some to we're long a system and a times continue have another ultimate always peak, create going pad. We're value do to building this fourth as that point, six-well we're say, six-well the on through direction. what's six-well the again, pad we're how six migrate these And think As how about when we'll some maybe building pad facilities we that focus, a investing we That investment? pad return and from facility through pipes, these same same that six-well because – and for, and think the uniqueness and to maybe the then certainly bring of is Basin say now this water coming reuse Delaware and infrastructure remember, for and I has

So really greater making to today development the the cost investments of really, amazing beneficial this we're asset. are that

Neal D. Dingmann

fracs? on? as doing think of size does as doing the far you of with doing now. zipper XX sort or play will six, the one eight and You're the as do great would out into that said economics? and out these up getting those point wells with the an continue to pads? change that size Instead that key of And you Or that same your as plans of the a you you factor best might end Clay, you later just not just the build build takeaway future, of answer. think follow-up and all you everything type that will all out With as just for pads, the right six hit. that still far in on Or those will that

Clay M. Gaspar

Great question, Neal.

we So days, larger couple for We've there on very about within I the that. internal of argument very, pads. as this. had as there's is you smaller last And debates pads recent, can just talk tell much

As you is the time four-well about the and of start that now timing thinking – pads, cycle enhanced. pad three-

is advantage the is reduced. That lumpiness material to So us. Okay? a profile of that

to. sizing about you think the how facilities and the also do of You peak big need to a of build

more would I – several the it's As well, you could things you way development. pointed into out, other pads, say come play. as argue bigger

the as years, have are And place? facilities secondly, seven-rig the a pad? Is up line scaling then existing bigger to a that we're of already it in Do about you than think XX-rig important relatively solution allows company, an coming you most the an might cheap, say, facilities. rigs over when different some existing extension of Some be you the company. that a clearly build a it of

there's goes a that And so lot it. into

in-depth just Sorry and bit the kind of time. are we on convoluted about but thinking how thinking to – be evolve a answer, this over we that's about it little

Neal D. Dingmann

guys. Great. Thanks so much,

Operator

comes of question the Derrick Whitfield from Stifel. of next Your line

open. is line Your

Derrick Whitfield

Good one the on morning, all, quarters season. and printed earnings this congrats of strongest

Richard E. Muncrief

Derrick. Thanks,

Clay M. Gaspar

Thanks.

Derrick Whitfield

Perhaps Clay. for

and should longer be results X.X be of add? well fair I to-date, in State slide thumb long-lateral referencing X.X multiplier your laterals, on based may it to that conservative we've results would the Draw with So for development Tucker rule X, observed say to data

Clay M. Gaspar

remember you glad I'm X.X question. to X.X my rule. Great

That we to that there's we're the lateral, a and give that, I based even we twice lateral of trying talking We to bit referenced, we lateral in that we that's these maximize in double of as experience, to as can a up there. maximize lateral For start laterals I and like. X are location X.X allows footage to don't even lateral, foot a X a or you program really us, half sauce the of EURs you the when the perforating the or question, to just generating rest building even as there often is catching mile production little – just right general the that twice several is much ratio long of laterals, sections. that. a off My please folks a Fine the about simple that length. between mile can. longer get and X on you when secret get X.X are surface facility that early every right and a legally of basin, maybe going can that means maximize in drill into longer so able to the tell If as a about getting math because to are do greater. the we're

works in favor. our that So

footage gets flowing technology, X,XXX- think interval perspective, other tend the sand simple perspective. clusters, to that how that But drawdown mean, the cleanout there's it. the terms, we back, thing, a completions. of think sure you much feet about the the making a I I'll foot, per thousand about I to from XX,XXX-foot go these talk perforating to We and wells in cleanout from couple the get to that are so back evolution those. benefits first that

do, to on are We we're your peers doing don't hard our exceptionally that. part. something some are And that we're seeing but secret observation about. correlation time. different you working to anything any have And X.X all evolve than working real nice teams Good often certainly on that hard up think we Our over the sauce. is of I'm there. not telling could

Derrick Whitfield

perhaps Clay, assuming Lindsay across are area some success of guys the variables what are to in as designs regarding implement you those And could Stateline refined about the and similar your XX-XB-XH? fast you you assessing? the my completion Yeah. how you thinking area, the now follow-up, doing optimization Could outline key pilots.

Clay M. Gaspar

Yes.

particular, we're about it the mesh. in about we what's but way our of Lindsay, to not some the the little peers. XXX talk some maybe than new here's about thinking different a be anything that's a again bit different So And industry, and of may it,

or calculus rather source, $XX regional sand or $XX barrels and versus changes think which I thinking $XX all important. benefit size, of of do that about now you chasing how dynamic analysis, a cost the sand, $XX is hugely could in living we we're a But, in these think realm essentially quality well tweaks imported sand, bit. than of of we're sand, local the the cost, about the world man, that in some well that quite that improve barrels, today performance, the

They're pressure and value. what? create on our when so these these pressure the contracts, had this the businesspeople And guys do right This kind at kind how if and about of was means, know we And pumping we much more agreements, thinking you are of answer kind heart. that of forward we months, think months. XX look last the think Maybe the to differently six the need to softening need that next XX a that, we're we Maybe little of pumping about some world seeing than market. that to did boy, we we because, maybe pressure price. something there's in over

it. perforations aggressively parts per how the the out, every goes the for value. quickly this everything the perforating to artificial back pounds clean how to are gallons equation that. do that can, in that that from lot we solve means are, opportunity? opportunity the a do of greater we not flow not amazing There's what design, well that per put evolution. close that those do back, foot, we an that how – lift, is we how lift, end value – Certainly, equation. metric How or the this artificial into facilities is question, do goes the how we of it's create give foot, we produce IP. do on all cheapest, So, well It's But It's we those get

Derrick Whitfield

again, Thanks, Clay. Great quarter guys.

Richard E. Muncrief

Thank you.

Operator

Leo of of NatAlliance Your next question Securities. comes line from Mariani the

line Your open. is

Leo P. Mariani

guys. Hi,

well more. impressive to the very Obviously, wanted Just into little right, performance dig there, Sunday on Island. bit North a Bakken

average get type these of just sort Are attempt to maybe You a of you EUR talked substantially to maybe and Bakken of that sense being us little about a I Xx sort average Can this wells bit? above what is? those give curve. guys quantify basin wells

Clay M. Gaspar

question, Great Yeah. Leo.

couple being. these North the held for like But me So Williston now. it we look big wells, face time above at and that's million we Island, Rick we've in step thinking in areas and Island reality – And of barrel curve the we're type North average Sunday sandbaggers we're accuses away the about going a known, some always clear, Sunday of And of million X the type be performance. in that X looks amazing barrel the let's as have tried-and-true step to very when you're of next the for curve, that put years below mark. from some out we that some you

good really the Here's news.

South, of While in of wells of our North on the some probably really been wells. some right especially peers, now working that extension area Island, actually we've the Sunday completing have to phenomenal southern drilled We're our spot really back put some kind wells type is we pressure sweet about. outside probably some curve. super to going in of our wells positive general flowing very We're that excited that the these other are on area

do you for barrel about the few what and so, what direction hold expect over challenges. tough team really as good Williston, some very They have. and the I'm the way remarkable about the really results very, kind Very in we those not That's of think couldn't some years. to enough harsh job the say environmental of the do you about should it. And million guys we next think proud winters X things you how of the encouraged other the development as it still and a about the fight curve that those puts three-rig values well do I'll our of us model and just face up that but guys, the

Richard E. Muncrief

we're add I making Rick. North of may there. is unique, amazing that, also this and I couple think, and seeing is observed are that Island permeability somewhat things the there's that porosity Leo, some Sunday

somewhat conservative about that in that there we've start out, think is good chance, spacing but Clay and how thinking so, you the plays our think, well in that decline. well I the is plays how is likelihood, it earlier been going got we'll And all I question that time, when a Over see assumption. to

this But the actually two-year other phenomenal up thing It's a really we it. didn't at strong taken And a mud just the some look six only spacing performance, days, seeing let's have had a weighted we so, That's not the pad, we've look. stab on pressures. to IPs, look but months, XXX mention performance at them let's some and great mud but at assumptions, on a area, year you're one earlier. and the Hidatsa

lot pressure So, there's there. of a

throughout that see time. from Williston time the to You

So, you some the on very south I area. at the wells. tell have But nice of leg can very, strong, Mandaree area, side we a got strong

the you over like out and years, the good numbers. be inventory more we depth, to had deliver have. Williston you see next have. And the it's we look we some going little up to that love nice really if but a what Obviously, So, several you're we put team continue if

Leo P. Mariani

Permian just here Okay. That's quick. the helpful. jumping And over to maybe real

the a you've the activity the on of if some might well to kind XX a see of some that sort over been testing give the trying next has pretty the A. on I planning landscape XX are of pay the sense months. the level know Just zones focused the more Can different months? guess of lot a column I in Wolfcamp you guys recent you high good. get of X/Y test you of us next got looks just stacked

Clay M. Gaspar

was a then early, Sure, those completion actually shape curve, I'll on different reflect to an it that how We We do single important to give back That eight of benches. on the these compete. time really state-of-the-art well want wells get a landed put XXXX. test understand and in, Leo. in for do us.

can circle I how A is the position compete with standard draw would X/Y A. because see the A. as it and it's that's we're gold bigger X/Y, everyday of portion and on Wolfcamp for the they probably Wolfcamp acreage it large and Lindsay, a developing say you a with around the our Now, our returns the the Wolfcamp

Second to these What zones kind that as that areas to Bone, for we standard, vie capital. seeing what really we're give B,C, is gold want So, D of some Third do for being Bone, the Wolfcamps some do of in opportunities capital. compete

have as You'll start Sand competition maybe the and especially these developing of in for units. that'll kind flow Lakes see B's, Third capital we'll feather our in more some us area, Bone, more bigger more

we're we this continue doing so, acquisition. the we'll We're changing, at that on high-class is you and don't said A on Bs several looked round even new quarters. we more learning And that test, Wolfcamp little bit we zone. probably XX% maybe when this This stumbled didn't breakthroughs, don't across everybody to that's landing to of a would lot find us. a and some year, and think but as how own. the a see capital from repeat into Wolfcamp And out, XXXX, so feather a with contemplate materially neighborhood And Third I around X/Y. again, make we zones we're the XX% these neighbors, to amazing landing I'll the what that we've I original I've investment say, of Bone high-class and in fence looking that our new

that knew We and why got benefit to really there from and be that. material starting So we're that's continue we embrace upside – but into it. was going to

Leo P. Mariani

guys. Thanks,

Richard E. Muncrief

Leo. you, Thank

Operator

of Your the John next from Sachs. Goldman line comes question from Nelson

open. Your is line

John Nelson

Good morning.

Richard E. Muncrief

John. morning, Good

Clay M. Gaspar

John. Hey,

John Nelson

And sense you use term? execution. be Ambien, in portfolio the in friend. EBITDA levels about annual outstanding sounds How the think pipelines? the make Agua potential Oryx your do held ownership can should it an and like Blanca Rick, my on to longer we current ownership Congratulations II And, contribution the your from

Richard E. Muncrief

Kevin, go ahead.

J. Kevin Vann

that how I'd in. of be some as an we'll level, to we're determined pipes one some firm getting EBITDA Yeah. see the start each They're start to that and if still much shippers come of from still pipelines on out say to get these yet building up shippers, additional that. And start they to those of out. of

a don't number really So EBITDA for XXXX. have good

get the see I many they us they they how signed get out, coupled think with we how need built that which for that – end with shippers just to up. pace

Richard E. Muncrief

been we say equity when will John, transparent I here. fairly we've talk our ownership that about

be opportunities, an things. are we was in looked just at a point monetization and capacity sorts of these the investments, some it retain have a but great a certainly the of and But those. of time, couple great company investment teams. will We'll great capabilities, in our We there great with those E&P at a mind, opportunity –

Williston that's of we that record And and done that. when early, so, Basins recall, make call have past. and track the Juan doing our work, We the benefits both We've monetize. in capital that we the we of the plan. And you in to reap a historically San we then put

some see going down road. think And I think the benefits are so, shareholders expect to much we very I be to thing see rewarded the same you'll and And nice here.

Clay M. Gaspar

we John. that, to bit to because a We up takeaway opportunities got firm add these just strategy. our I'll needed in

E&P and company. Rick foremost, mentioned, as First an we're

early is benefit to being of an the assets ownership. great having manifests being and equity opportunistic itself it mover, Now, these

equity I maybe – the flow is at you've I cash point. ownership, the out, the think that think There as about lines, essentially exit it's sold an and essentially you and there's marketed got fill a valuation, theoretical Now, you've capacity, two once valuations. point,

that the you in The cash are right there's the when is priority, know move nice incredible these sitting takeaway the from amazing making both. is capacity, resource. as and of opportunity, which right growing still flow. Rick commodities through this that They're now. retain start sure we're to our we'll These options. the was kind for we our point financials we highly able come first assets. When account marketable thing and exercisable second are actual foremost The markets But to mentioned, bank

J. Kevin Vann

Yeah. what I first you get quality And an shippers getting much think to and to EBITDA see as – idea how back and John, as grow I – how the what of start that your you they're us question, many or you from see you'd what start and think that value you paying on there that really really cash see think out when I you to get the expect pipeline, on to curve that is come optimize flows to in. start

John Nelson

of you the I'm Clay's ultimately box kind to pipes in of and marketed XXXX, of That's trying really for. kind what sized are and for less helpful. point kind but more to to

do like net So, to whenever cash it? think kind WPX of reach – it's you they look $XX the could of those help who of when to what potentially or knows million filled? something flow in EBITDA the But you million can about the $XX ballpark, from assets neighborhood us get to in just

J. Kevin Vann

us. you the to, grow Blanca, pipes feet When a both Yeah. to cubic I those XXX day think about got you've capacity of to going they're just and going mean, of Agua million the where it's to

to WhiteWater, both the million, of could five really being comes those next well years. over growing (XX:XX:XX), pipeline generated to out works you So see EBITDA see could back say, so of and four assets, you $XXX in the that

John Nelson

built both And That's That's in natural of of at materially your helpful. position SMID the for caps currency it in really really my you to and kind while equity recently. alluded differentiated XXXX question, amongst struggle might then a you the your your remark, helpful. takeaway gas, peers looks second oil some has guys firm improved really Rick, like same time. opening have

potential just you consolidation speak the to how within opportunities you think could Permian? So, about

Richard E. Muncrief

take that. time, place. some But guess over will The more in – transaction, it some understand I opportunity, why the we point RSP happened, consolidation been it Well, transaction Concho probably far. think be time in I appreciated about at think consolidation one will market think has I'd say what that thus I

have it place. we perspective, to have such think need great – great assets we these take From two always a we probably – would we have, have inventory. our I

WPX we applies think to We a have to high that bar. and have the very how

You but, gosh, a such bar. never say we never my have high in this business,

lot cash appeals inventory, do of time. about and Certainly, personally thoughtful this what be out a to point know arena. at we that that that not in buy don't It's have We generating to a currently. leasehold. a would me of of lot in go I lot to

many So, of be just some – those we attractive. asset would current base. very to to there's our not there But very, compare we it have out

love You be with have I your a take we to in have we pretty but what critical assets, here falling careful eye think about with in-house.

so, very very, once simply high put, it's again, bar. And a just

John Nelson

Great answer. else on. the Congrats hop execution. I'll again somebody on let

Richard E. Muncrief

Okay. Thanks, John.

Clay M. Gaspar

John. Thanks,

Operator

comes Your the next Brian of line question Johnson from of Rice. Corales

open. is line Your

Brian Corales

you morning, do thinking answered, looking of kind – allocation? on to just kind are guys. but and you rig have Good Most of rig been count XXXX. now right How I'm what all

Richard E. Muncrief

and you count. our and stages. case growth base in day. we're the we're I – profile the our three discipline that Right just is flat case employing, our getting capital Permian we're rig And think seven a Brian, we look probably start in if in our now, I Bakken, from early every would base say at better

sensitivities more – to those year Obviously, year, XX some run they or an flow we're probably want wells talked cash do neutrality, rigs to But so, there's – same so crank on year that. than what out element. next they we we've year. that, next this And close did be will than what this about going

Next doing certainly. year, what see commodity we'll are prices

percentage year hedge lower. is for next Our

higher. are volumes Our

cash to pretty flow nice capability. generating So, going have we're some

So, it, we'll watch watch prices. commodity

assumptions, unless a the our always have a will plan, business thing there. and case we in strategy annual they sorts mid-September. probably But range, say – is the we'll armor, see the pressure session go We prices, we from base of session chinks for in I get but in other base those our case our this complete look kind is We do bottom our that's collapse think thing. commodity with test where board. we have. our strategy our that holes, of It's I'll

November roll by of earnings be we'll And out. we call, ready so, it the to sort to get time

Brian Corales

you. had. you. Got all I That's Thank

Richard E. Muncrief

Thanks.

Operator

Your of comes the next J.P. line Glick Michael of question Morgan. from

is line open. Your

Michael A. Glick

My guys. answered, questions been have

Thank doing. what Just good quarter and you. keep you're doing

Richard E. Muncrief

Hey. Thanks, Michael.

Clay M. Gaspar

Thanks, Michael. you later. catch We'll

Operator

Matt Your the comes next from line question Portillo TPH. of of

line is Your open.

Matthew Merrel Portillo

guys. morning, Good

Richard E. Muncrief

Matt. Morning,

Matthew Merrel Portillo

I some your to might to how color of be to remains most XXXX your on expect your vast term. Eddy over see you if in in medium capital highest-return able majority fit might some Permian. updated of we the better know provide might capital assets the was assets to delineation on get and and focus into long curious Culberson in I capital-efficient But when a those program around understanding the the

Clay M. Gaspar

see. let's Yeah,

So our Wolfcamp how capital, A and of and would term? Wolfcamp essentially I medium mentioned – X/Y. we think long So I have about about that a XX%

work turning in parts other And crank, is landing what some so zones. of of the of long the I development, business. we're laterals, in basin. We're other multi-pad CDC that consider tank the wells, our put kind doing the part in oil The still XX%,

good bit there's news with a lesser-known kind Permian of Basin delineating of The is and testing a are areas. little We lot the activity.

if you in we confidence dedicating see area, may so others that dollars in essentially because we us. area And delineating high to the us see it geographic have even be it a for don't specific

think the area. Stepping to asked you and in infrastructure part that particular it's And I have you're that? out it As share because – Culberson about dollars. north, away? it's Does need cost We Eddy, standard option. our really case there. going about, most some not this of exceed results That's frank, a the our of that's is It exciting. still that area. lower gold Wolfcamp to I our think the that be cheap an By is Lea far, that going results. to A where It's just was standard. It's time, benefit – as extremely Stateline. knew capital see into divert of amazing gassier into gold it. we We the we again, to return. see disproportionate certainly going we those Do to of weigh and have that is good certainly the We'd exploration

dollars in hold to little But the activity that us out to continue that a in going to area is direction expect hopes start shift We out the that's the that to going more. don't up yet. just – firming bit future foreseeable

Richard E. Muncrief

the in One Rick. about may It's add, talked pad, that Matt. Draw I Hey, is Southern Tucker thing actually Eddy County. the we

I surprised excited so And results to that. can tell you, about those the upside, and real

things. you'll As in hear you a into farther get testing the up year, us about little probably some Rustler later that Breaks, bit talk

Matthew Merrel Portillo

items items speak As Great. But takes some And been then just and specific budget. high-level regional up you're question, perspective, the steel in mentioned, higher. just to adopting process pressure on your tailwinds a Permian? you inflation like the views may as you've the some trued cost from follow-up Could of puts there capital you and have moving on pricing pumping. and be in additional sand line also a

So get as might a costs some if those to any potentially forward? mitigate risks? that into back you're you tailwinds just viewing of going And sense, year, inflation there's move the cost how trying the half of

Clay M. Gaspar

cost Yeah. seen We've pressure. definitely

that to on of mentioned pumping, we the work. pressure system. look and easier everybody at rigs, I I those. look now, gotten to sand, There's some to items got very things We at a like the back on early – can those, lot and relatively big mean, the identify obvious you pressure water, down, rig XXXX you As very count. lock ticket has forward XXXX are

and tune is well. up. dollar are That's years $XX,XXX relatively it's kind market steel, really out down, and one. or hit. items, that Guess to like things look, from about smaller to that that. price that Some on six-month those hard oil things $XX,XXX, is months fine. the costing harder but other some more we go one. items. that kind XX to we lock a at I'll mean, look take Fuel is a of another of of I I'll what, Fuel us two take of

on coil contract it's on longer we an ones, like to hard items typically just things units, term dollar the The that are some other that services smaller basis. basis, units, a wireline intermediate have of tubing

you You unit when you you when do, don't tubing don't. kind coil and of a need

and on is effective. XX-hour really standby have lock it to not so And down one cost typically

long-term, elected those So not we've to, onto guys. grab

mentioned pressure you're overall, well cost as some $X that These I And seeing to probably we're if from were $X.X on would million in advantages we last lateral X $X where are year, cost million. Wolfcamps. million Stateline at we Now mile late that. look have those the movement, some I Stateline, varies wells. we say, probably

out. step You

more to little need build infrastructure. a You

approach our You're $X and million, drilling of out of single-wells. into kind that's may Those wells XXXX balance even XXXX. range I but think for

trying faster. our translates could mentioned, do that to better. XXXX. As of how cost into increase, be from we're we're as lower are working wells the on that. move conservative the we It say That drill some but working that breaking numbers we side, things mitigate mentioned, and things well. would in are to Rick you about to continuing often those some We're into thinking mitigate I as could out do through, figure still favor there

Matthew Merrel Portillo

guys. Thanks,

Richard E. Muncrief

Thanks, Matt.

Operator

Seaport next Global. comes Your Mike question from the of Kelly from line

Your open. line is

Michael Dugan Kelly

on I coming hand. and this macro-level uniquely And Permian. kind differentials to trunk could And is less with get capacity. opportunity of Great. ultimately think of see capacity, storm playing it. That's peers. WPX an to the out described with does if nearing always really, you you of Thanks. just Clay, as it the really was out really advantage how positioned and of the the curious was now quarters WPX dynamics I on appreciate observations your maybe provide deal kind it And I'm line take ago, Thanks. a obviously some happened couple prepared

Clay M. Gaspar

for that. Thanks

steady They forward-thinking partner with alignment and it with need to. efficient speak us, can these the at be offer I people going companies of One, about one and need think industry we're the two kind think sales and us to partners, symbiotically is, companies. this fashions. related we I your that be we to as and Essentially what there meaning of is service my peer companies, think them, strategic what your them our think about resources. pitch to a that that's I of our in them, I

a safer and companies, those And the negotiating of better And is, so bit do us agreements. better returns hopefully, them benefit wells. in that edge allows an what we crews, gives from on ultimately, better quality, little to it

thinking chase, of past ahead from storm stay of started about kind we for to business. need long of? the continue to what's what As a do I things the way macro environment, midstream us We're the next few the to

And companies really many, many, us, to - lot don't if a I to so the hate how to they size about embrace as lives that peer are market. casual sit I a really team And from I you can see oil, meetings. well, it's as and tell everywhere the come and day, us takeaway. a watch. to gas, the would I end the to the in the of lot breathes every way invite that fascinating observer a NGL still I marketing it, that's that's know these us and times all And say many think midstream this our – but way table because

Richard E. Muncrief

Thought leader.

Clay M. Gaspar

I leader. huge us. an appreciate as I from. that opportunity it thought a I folks. A the that from for compliment mean as I also see some input somebody really these of as take

can the think you're trades. when in built that take position, handle I we always There's creating good so your with great your we works value. take got we we're into beneficially have more we've leverage we how that those equipped gas, often hey, this, negotiation to about name very our marketing an And great Howard, relationships, this negotiations understanding, land have we opportunity strategy. that can essentially contracts, relationship the do to Once barrels, again, doing

in on material discussion, folds of couple township a sections thinking that a part kind start more a acquisitions of I are we think of about As well.

not our today. start I the proud thinking could so It's the that think that it's forward could fairly on you and tell we and thinking peers, recreate our of to of piece available. the is build we think it's philosophy. question do of I XXXX think M&A of one I it and really have is to I is contracts and something that embracing and any kind the picture, apply innovative whole same back built that you culture bigger scalable But can we're a about stuff, you think to just another you we culture if business, Rick wish into I I extrapolate in can't recognized.

Michael Dugan Kelly

Thanks, guys. Great answer. Great that. Appreciate quarter.

Richard E. Muncrief

Mike. Thanks,

Operator

Piper of from question next Your Kashy of Simmons line / Jaffray. Harrison comes the

open. Your line is

Kashy Harrison

me of morning, and everyone, Good sliding thanks end the for here at call. in the

one color Are have gas full do me. we this super what and any midstream the saying both one today, effectively really on these you oil your for utilization currently pipelines Just Permian in the status on of the actual are on quick equation? Clay, of at partners side point? the

Clay M. Gaspar

now. is right II Oryx So, extended getting

piece The I, comes big so, this Oryx essentially later online that full. year. that's And of a

that coming be will which WhiteWater, to now, look I full. right is online essentially contractually essentially As

up is got for. have So, a don't but capacity day to basis, essentially gas it we and that X.X some really Bcf report on molecule a spoken signed full happy that it's of partners, – we've good about

Kashy Harrison

on any terms in And on haul out the a of utilization those long of pipes? bigger thoughts of basin, scale the just

Richard E. Muncrief

are is tight. little it's but of maybe are and a course, our they're that there's capacity pretty think markets actually dictating. got plenty But full. sense, I the than of our room, capacity couple whether a a sense full fine, of seen what think may we've our barrels pretty of There I notes small Well, the be I've – speculating analysts amount of were more

Kashy Harrison

That's Thanks right. what my Have All question. I for. day. looking Okay. was for a of the good taking rest

Richard E. Muncrief

Okay. Thank you very much.

Clay M. Gaspar

Kashy. Thanks,

Operator

of comes KLR the question Group. next of line Your Nicholson from Gail

Your line is open.

Gail Nicholson

about just ownership of Good some first of provides August. versus to half you talk morning. in train, I'm in peers benefits and don't that Can the supposed processing what that the gas you XXXX at have of second just looking online the maybe gas processing it's that? of that be and the

Clay M. Gaspar

– in can our processing processor, that WPX. plant the my for big, gas it's you, Right prepared that tell JV, big a west where area, the our for it's you, to deal the a travels most Stateline of area, terms remarks, we Stateline for I of greater west with big gas tell can interruptible. of it's to deal that deal I now, have And because a there.

one – it blip ones first in a is it's the We the happens. to can any the because as are, the not operation, of blip, get to soon as lowest, what if reality They if a you in of valve shut. a that customers. translates hour, about kicked out. And we're what lowest-paying disruption have massive is think slam they And us tell into I

By open. the in, compressors our up, wells that on We're way pop wells. pressure working to go say, lines it and in then shuts All Valves they off its back shut now, high to the Our just time pressure. discharge starts good again. okay. gets

than have even course. We That to reverse hours, weekly. take possibly that maybe And can happens that XX, routinely, wells longer XX back maybe out. get to those line

first Now contrast that, we in are when open line. we plant, our

We are XX% owners.

of reliability just piece. if that'll We the section what to pressure not existing just this I line, you're add of Hey, had more we looped find lower man, will you've little got there. going debottleneck the you've one fully going the wells, capacity this if but here, expect and compressor And hey, we're is, have one to differential, now flow much I higher of existing ability, know reliability. the

too. it'll you'll into see buried kind When the that think barrels. ability and in a And along to oil shut flow, I gas improve you shut production, of in, is, gas so, you'll rate continue have of what, well you lack of the because what base but oil be the see guess that the draws

this that projects that'll be not going time need add think And exciting for capital you will to us. massive is these you day, question. see to see to by really production. And flip do it's six we X some base the for over part infrastructure per doing way, impacts of materially our that the increase spelled the we've us the that of extra bottlenecking months, so you'll have an next anticipating that'll the of out an production. switch, on the barrels but is Thanks that some things I the It's day base

Gail Nicholson

out Sunday outperformance mark. a outperforming that XXXX execution, in wells phenomenal those way, especially looking curve, type the of are XXXX execution but XXXX that of post-XX And just Absolutely. just kind the what's blowing days curve? that, the decline the water, going And type back exhibiting of the driver is North mean, post – the Williston, a I because versus XX-day curve then out also but shallow at exhibiting well or the that type into that Island of is – area, you're

Clay M. Gaspar

IP play is. That could in step can gamesmanship So rock. a you're different you how on and manipulate side that million on XXs, peering into the of table. that opportunity teams you, the ways. XX, the we the executed they that's just XXXs, tell the And well the beyond a how reservoir had rock is can one XX-hour good this the I

all that the XXXX And well that on to results from but doing production so, making in flatter back and the as phenomenal sure good equip goes geology exceptionally execution operations, drill complete from some you're the then of noting, field engineering how we way that place, bottlenecking, and the the the beginning. lift, and that decline, thinking artificial about that's and everything's it

Gail Nicholson

Okay, great. you. Thank

Richard E. Muncrief

Thanks, Gail.

Operator

over this call. back concludes turn Rick so, to the call of And and Q&A Chairman portion today's Muncrief, CEO. the I'll

Richard E. Muncrief

the always great opportunity I We a went analysts. thoughts long, know discussion. our did but the lot Well, thank investment we lot for little this to with much very a you today. a joining we community of have of questions, enjoy and us share

And so Thank WPX. Have with a your very great that, we day. And much. interest we'll in meeting. conclude you the appreciate

Operator

conference today's concludes call. This

You now may disconnect.

WPX Energy (WPX) 2 Aug 182018 Q2 Earnings call transcript