Matador Resources (MTDR) 3 May 182018 Q1 Earnings call transcript

Company Profile

Participants

Mac Schmitz	Capital Markets Coordinator
Joe Foran	Chairman and Chief Executive Officer
Matt Hairford	President
David Lancaster	Executive Vice President and Chief Financial Officer
Matt Spicer	Vice president and General Manager of Midstream
Billy Goodwin	Executive Vice President and Head of Operations
Ben Wyatt	Stephens
Neal Dingmann	SunTrust
Gordon Douthat	Wells Fargo
Scott Hanold	RBC Capital Markets
Gab Daoud	JPMorgan
Dan McSpirit	BMO Capital Markets
Irene Haas	Imperial Capital
Jeff Grampp	Northland Capital
Philip Stuart	Howard Weil
Sameer Panjwani	Tudor, Pickering, Holt

Call transcript

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Operator

Good morning, ladies and gentlemen, and welcome to the First Quarter 2018 Matador Resources Company Earnings Conference Call. My name is Ayala, and I will be serving as the operator for today. At this time, all participants are in a listen-only mode.

We will facilitate a question-and-answer session at the end of the company's remarks.

As a reminder, this conference is being recorded for replay purposes, and the replay will be available on the company's website through May 31, 2018, as discussed in the company's earnings press release issued yesterday. the to turn now will call Mr. over I for Schmitz, Capital Coordinator Markets Mac Matador. Mr. proceed. you Schmitz, may

Mac Schmitz

Ayala. you, joining quarter call. Matador's for everyone, us first conference earnings Thank XXXX morning, for Good and thank you

company's today of Matador are calculated of press in financial by measuring earnings such will Some financial in of at presenters reference non-GAAP the with regularly Resources performance. financial financial company's GAAP measures measures accordance contained certain end the non-GAAP with used measures Reconciliations the release. comparable the the

As certain may included expectations this be anticipated future events that in forward-looking of and could current results information based events forecasts those a in company's is differ statements such reminder, Actual from morning's now on the statements. and presentation reflect or available. future the materially

factors could materially and its results to concerning in company's on information report annual actual that Form earnings differ the cause XX-K. most release contained is Additional recent

website our that in find earnings release everyone XXXX remind press to yesterday, press slide like that, our to issued our like would the on our Foran, turn under Webcasts CEO. Mr. release Chairman presentation first to highlights to summarizing you quarter call Joe Finally, I of the over addition now And the I tab. can short a and Presentation the Investors page Joe? on would with &

Joe Foran

and appreciate time the thank you and your everyone in for much. line, Mac, today's you, on morning in call. good Thank We to and Matador participating interest very

Vice Legal Spicer, Billy of may Reservoir for Executive the Chief morning Land; Vice you Robinson, have. who and Hairford, and Gregg staff are Midstream; Senior this Executive President, Wayne, Officer; and who Vice Executive President to and of Manager Chief questions President Senior Vice Marketing Midstream; Brad Krug, Vice Geoscience; Senior Vice Willey, and Singleton, are: Matt Technology Vice Operations; Lancaster, Rob and & and Now Adams, Executive Vice and and President Frost, Macalik, operating David of Financial Engineering of Craig Head and Managing President President Brian Matt and Jim General Asset Ned Vice Elsener, I President Administration; by joining and standing Van Treasurer; of President Tom Vice Goodwin, Vice Manager; Officer; Officer; Vice Engineering Co-General Erman, Land, President would Chief Controller Vice senior President, members They President Co-General Director. President introduce our President, Counsel; President, Bryan of Vice President; like Counsel; are me any Kathy Accounting Basich,

group, and you strong another for a the proud to truly at team we that financial moment I operational take hope I'm believe all excellent start questions current by and in this execution. effort want great achievements and acknowledge department and each marked to quarter staff this answer I each can to their success. group any We XXXX It both past a that and first with contributing quarter we're announce with was year Matador to personally quarter. So may off have. a was

particularly done hard build really start also momentum like delivered and weather it's guys great deals Group, and budget to on on time, a who because that did than because it's into that sometime their plan our the up with ball, Midstream I'd new Group. brought choice noted field, so production the as value the they're our have and better game the awarding of and expected not well. some in in they’ve but Midstream came the important and committed problems callout fields, terms the But to through work In have work to everybody who in the been on

fairer as and while not and get to Now in longer very your quite earnings from that to comprehensive We longer perhaps to feedback. and you we interested are also maybe transparent heard be we and easy that tending all having the said releases find were those our sayings, were trying information.

welcome other a with feedback have the or size does like we best, full So condensed together. one we've the job tried with the new come to that's a one set it half this version of your up comprehensive that pulling and the the good such

contributed The total this met we Again, to second XXth team is group – point, that guidance. effort to quarter the I as want make our exceeded that to be or is each straight is that.

to in like in And Land believe area delivered operating Antelope just brick-by-brick and we that have has about and the our around encouragement HBP. on to our have our asked key that from address delivered question is conferences – great the area. we new Ridge feel Matt Hairford, on this within shows with that that. to in and at and received that basin ask the quarter differentials. Matt to all which will in like our group to Van would various a Ridge I'd the President where takeaway that, Antelope road we his in to give areas is all operating to you And Arrowhead XX% Lakes, adds we've the Wolf basin, to is acreage non-deal often most some note had of Second operations some Ranger make the Rustler point to I and Breaks third Twin

Matt Hairford

effectively of Joe. to at gas focused been for a Joe's and our are on as takeaway water. of Matador as capacity our we dispose discussion right. when that Thank hear topic or oil we of an well Sure, that It's capacity the making takeaway sure you. NGL’s salt ability and cost most meetings, have

the front, capacity that and the gas Wolf, Breaks at not got the gas Rustler transport produced – we at the the all gas Rustler Breaks majority all for to designed well we gas the firm produce for play FT we at all of there. the on all So

we is Waha/Mendoza Trail. the have FT the So from to field

of midstream next say step. do and to the very Waha today, today. we Gulf to companies we're Texas let this that do So also from do evaluating to currently tomorrow. that? to of going That whatever that that get we be happy with methodical being to be it get deal we're things, happy said as about We're with we're lot going How be And it’s and going one sure Waha. Coast, we with to conversing make

So of that kind for takes guess, care, role. on I us

has with Our with transaction this greatly takeaway capacity been clients. improved we did

pipeline that areas, the be produce this vast that accrued oil are going right the to that produce County. going extend now, probably all they that and on is systems have systems to They we so at sometime into in into in So that of and into at Wolf rest we system, of Breaks majority the it Loving rigs will summer. gather system going up Rustler play

have wellhead Midland, with the is So charge about discretion. to happens we us FT barrels at or not get gets is The CDP, Midland. we transportation option deal When those that. pretty barrels have it but The traditional feel Plains had are as our fee to with those buy client to what the we our actually to good back. buy it

say, barrels buy if we system. Coast. deliver their So back if – not access in those and can We St. Cushing, keep Plains, can Texas markets, James, barrels those and those we them into Gulf deliver other on markets

plant interconnect care NGL for workforce. the We takes at Black an tailgate River Rustler us. of NGLs. thing there of interesting The finished is the just for the Breaks that an So recently

taking BP then Y-grade NGL Y-grade and is area. this So the other buying it's or into buying on bid so. the pretty plant a producers about them total the actually that. and line the volumes, or for gallons Feel putting line. NGLs good in Matador They're barrels market

this with interconnect. advantages real NGL also We’re

One going of elimination into day per them had NGL. the that for of being the even need to we XX XX running million plant a hauling day when for trucks, the so we're trucks $XX out plant,

XX volume, get we to go and to rid day. million the we you of million million, up feet way So then trucks the XXX those plant to XXX all the continue per if increase capacity cubic from as

around is very – trucks plants those just the can having on You the see logistics not all good. then

on have this to full advantages time, plan, lot point – than of become And cheaper really to is trucks the advantage. obviously so it big in to on ethane thing quite a those – money end mode So a ability on in cost third all gas selling so at would big transportation for that's back in there. then will the pipe as the too, NGLs ethane of basis. opposed as At some chain go likely Btu recovery be into pipe the liquid is a a the

ability we to that. do the have So

take away cost then so The ability does or at capacity the there. but volumes reduce to more other gate it's of it's X% plant the that able it the that our thing, gives to the residue additional by effectively And up a some frees be really tail fourth not gas XX%, of dispose the advantage issue, us, water.

they they lot lot of lot water. a these of gas, make So a also of the basin wells make oil, make in they a

if a of well disposal times So water outlet that maybe or X an amount oil you X to certainly making need it's than the got X of for you've have water.

end We things now XXX,XXX got the covered, got of barrels we the we've and capacity Rustler by Wolf year. So owned at Breaks. XXX,XXX day a

pretty can we’ve I that So flow our the cost to all we think good in effectively make feel about sure we all steps taken proactive wells.

Joe Foran

– those your for multi-location and various Thank hard you, projects. those thank you Matt in projects work

we’ll now the So questions. line for open

Operator

is question first Ben with from Stephens. Our Instructions] Wyatt [Operator you. Thank

Your line is open. now

Ben Wyatt

Hey, guys. good morning

Joe Foran

Ben. Hi,

Ben Wyatt

there. can If an volumes. need to assets? third-party like maximize of view for then good really for up net are that of to that Matador as move shape Obviously believe start I volumes the kind on you we third-party I maybe through system in is it for should just and safety know midstream finished any volumes with dispersed you just asset kind or its grabby. do guys value midstream a just Or that. its side because And you this sounds really where But the go Matador

Just there. thoughts your curious

Joe Foran

been would here that XX%. very have we’re we to us. know that Ben, Five they them same as Point the strike give thanks – important to we're game services But What game, – playing a between the we while in services two who question. that to partner delivering going just has to collaborate. midstream we there's for to midstream the deliver strike this with as people we're owns insert, charged really like dependence a with as the we're the third-party good at where going It's XX%, companies play

to go end service deal third-party their That's Five in high everybody can all good for So to what based with decided this ways. that going task was three make it provide needs fit our because we the it to of service that because Point, the us I that the get end we gathering going think as that's all that is and part and challenge. services agreement just That's be we're that same water the the oriented. to we can the tailor was a are be in that gas deal. we can wasn't business. That on kind And this providing we the brother-in-law think of size in on, and people be going salt think of the tailor terms particular away high business independence of and that part And then of better our to service – disposal. take of to the becoming, the to

So it is we're give other be going guess, services, the or chance, question? us render stepchild that going to we're midstream so it, our are it a to answer parties same – of mid expecting is – Did high your going they’ll a group into that they'll think kind to us. quality not I to – it's any group be not say a

Ben Wyatt

I here. Joe. guess helpful, my And second That's the one I Yes. explanation appreciate there.

rig talked late that or that is potential Matador the the think of guys approach that by that that the kind I the always XXXX this seventh of so – alluded Does measure delay its current is you environment takeaway until consistent kind just kind about. have just you to just pace to around staying with Delaware it concerns of Just this guys year-end. to move around rig, seventh maybe in potentially

Joe Foran

in only manner, in question. based you say. as the rig just it the to northward our And the third best take a way is profitable when one away difference happening five work that and is not in of basin so advantage, factor opportunities factor that advantage all seventh we not Ford you we make to part in first it's and But number all we’re at good be If the northern But major bridge by pace another doing but basin; heavily is, and both differential go to methodical $XX circumstances. should our we different any being two, to place NL the where going there said. circumstances. a that’s of speak consider up and towards Eagle we’re That's of the decision what's in this in another advantage Ford that of have today about your said a significant would the have biased single I’m we One more that price and to the into put right don't remain final oil you be commodity get yes concerns choice $XX to that's things on gas of Eagle four different weigh new down is where we take stay opportunities as prices; or mean. wells – from you’ve growth really plans. you going this march it put is the as on not think $XX might encouraged weigh a the on that, If Ben, the development in we a does is price. at have is those it going saying

to want a we're a can to there mean you're dump – again differential but churns be So of turn of take couple if an you to some want I would and to by in into don't I it problem money it going we're going have opportunity. that

take we – underscore we we other the the that range talk is the both to like The three be that that do. do opportunistic and rigs in and there have this plans short-term than a re-debt have very and Matt to circumstances of we last should I'd to one some full that what we try contracts. about David of thing option no So that on lot have is

well line of have now of The is up technologically the some equipment. drop top rigs could pumps just we look and know nimble at of advanced one and various the newer six want that we those – obviously that to case in price, in circumstance drops a thought. very give changes be but I is less it for we it's circumstances. lot how most to another up have one give those best – state working the these drilling Patterson. likely of opportunities winded rig pick early what up and rigs, and long So keep and we’ll of the a saying dependent may prepared add to and one on that’s but we’ll that’s rigs complex and picking price to and answer exactly could make of still drive much And art another so six too credit us lines because we that’s of rigs year such be a lot in help a know it's rig but the

Ben Wyatt

what saving the appreciate a and helpful very here us very, team guys answers it's paper. Joe appreciates here at The Stephens, think you I worth. No, little and for

Matt Hairford

So four. I optionality we might this have He’s even back six I just can’t, add. to to what said. maintaining exactly might go Matt. we to right Joe we the five with quickly just seven or can go add the we – rigs on if or Ben,

for on back to eight us second those that with things. basis. we we that we have use to if a can also that’s I And if – a But words have do factories it’s – think be the crew a available we unlike too. to one our go had continued think seven wanted would factories approach, the the we on dedicated to side, the methodical other way where we about do actually because could, we

an in that’s the So optionality program.

Ben Wyatt

guys good. the and Very Thanks again keep up good work.

Operator

question with from SunTrust. Neal next is Dingmann Our

Your now line is open.

Neal Dingmann

have which for Mac for I or you mentioned or That advancement completion IP Good play. very morning guys. the you record different more as notable, side continue the all, all knowledge something was Leo Thorsness on it his is Joe, did as well question team. sort just maybe on and of a certainly this even more specialty think Schmitz you

Mac Schmitz

that and There was it's right. the think nice for – were one less very well. just a very continuation in there We're a particularly be and notion that thing You’re other to well happy I there that just folks any well that's as is the The going continuing a as that money results made with well of better state lot drilling very it completion than of effective right probably of wells think it's us I more is, to evolve. the continue target target picking

put of a a together part So right it's portion and too. I is I it's big member it good of the things it just of think the

Joe Foran

agree innovation have quarter, it's some into a everything, program a add to faster working thing just what to that our wells some effect last year one young we didn't and we we job it's it's with XX very wells I Maxcom zone out stay of was Matt is wonderful better put One what together it's working we if where this in drill and room have so stay said. these call in where XX/X to and engineers of geologists on you zone. really and

aid more each and three get pleasing places less helped, for as in zones right you and faster to three of very this which exposure we've a area number need zone. they're growing this in money to what means be is So you really and wells drill people the very rock results head good different

and recently brought this is One his February service well. have Cemetery [indiscernible] was this – on Arlington about – of lot interestingly we've the in to share day recipients to of is and and service holders number been service in my So work was was you got an we you've been XX them Medal thing of fortunate a forward. one going what coincidently and of with digression Honor

So family that here's and [indiscernible] message zone tell it's him shareholders Vietnam his for your them for not and and our the we've could and said really son drilled positive it's and have that well six your from for years honor North and you. in positive of and best we kind well for them message

Neal Dingmann

that go just just on minerals leasing hear guys now had a follow-up M&A, more do now And to job on fantastic some one Joe. nice only not but maybe this having it then last continue you is So even to leases around. just

Just any opened or is you on land and pace pretty you team mean to the all the still from comment is all continue either how the love that feel still it market do you anybody been would hear thoughts your there. from

Joe Foran

has – concept, when are a market gone. and that’s burst the still prom. Land to predict challenge that closing. brick-by-brick see know still we to can trying hard really question, The Neal, out There Land don't and are what – a encouraged of group you they but get or see, see opportunities going away, is the never We're not shut down we date open. just clearly it's yet a door there, me that his plenty Land by market just to to group to hard nibbling

know You a available. none don't But or to you're there going until – as be available pitching best. out whether lot there's just

for how enough victory to we're we're let's better idea say plan, for don't in think I yet. this you're not year. So points and I'd encouraged ready mid late going. we by what's we've But data have summer a look should that say the summer, got but this

Neal Dingmann

Great. much guys. so Thanks

Joe Foran

Neal. Thanks

Operator

Our next from question with Douthat Wells is Gordon Fargo.

now is open. line Your

Gordon Douthat

guys. morning good Hey

that's if on – one future that those Just observations more wanted more your one been pad like to that’s and or you. kind development Garrett stacked two pad or stacked it if and the types had how get of that well relative and after of development of a it’s some on kind producing to details looks as question just pad on in

David Lancaster

those not think in going we wells Hi, results we those all of Gorden lower a with had that three had intervals us our Breaks a WolfcampA-XY confidence David. sense the for bowers the of I going both and the three-well high big – pad its other in you it there Well, same drilling the out pleased think successful to that and drilling time. intervals so all I from that very made very to we at to of then degree be Rustler know just come first on based the were at are three and

this go up more to to with we where same toward to sometimes us same five Rustler – to as continue going drilled the direction I and that at three cost haven't on like results helps it's rig mode we've back did So the pad when the our twos believe know so be we kind of of same time, you're production and, all was wells to get varies had that time you'll some know only feel drill drill in but I you same that plus of we it's that was to we were drilling that direction, wells not is I side, point three and back so state money said of you more really the that we able and these zones. threes We the going just this outcome. those to us year going contribute so think and cost I done you're just get Breaks pleased come and move fact already we'll in and done doing you we essentially to move back certainly and most forward pads. in knew on of able one think think up so good different them see also begin same five the five on not we're but in this and but I we is to when think other of sort of the as the to in

Gordon Douthat

maybe from have Thank side of – you now. you doing it And that. productivity it noticed any Okay. for a any all

David Lancaster

in pad I the say save. so also efficiency or scheduling think I productivity been telling maybe because would capital liked has I operations positive that’s very mentioned he's that's on in we well multiple got after let's frequently that from well all my are the been certainly more it when say same do just as way I the I the that always me we're can zone, is drill would been money think the more overall that positive. them office, good

always and on service So call we attention the from simultaneous more we're know addition operations both so. the a time fracturing always day When discount for what we're a these and – the a of also type we basis the can then believe in we're some where we I'm doing paying go wells kind as we're tracking you in provider result on stages our doing line I side. and on a and have get red down receiving

all capital a all that standpoint definitely from efficiency in think it helps So

Gordon Douthat

lot a guys. Thanks Okay.

Operator

question Hanold Scott next from RBC Markets. Our is Capital with

is line open. Your now

Scott Hanold

good Thanks, morning.

move need added you there Is in that? So discussion area the pretty a that this a you area a seventh you how that that bridge be rig the to question and about a now sense you or approach into rig that midstream start more rig to at contemplate can mode how or do development you seventh obviously continue point. Joe into I good there generally that second had us there of capacity and were rig know on have dedicated at got you give

Joe Foran

suddenly to at rig rigs start not Scott, on to we're what going one we we our methodical have because that well good try very double we're to to is do just a just plan there. be going two three or is everything very

are sees of level it And go But CapEx to the But that to to think we It'll got because Ned, in it other on rig that more if that on many good fast Geoscience, that volatility, rock, on We I'm a we're our amidst to if and going the fashion have Head some wanted basin north we rig from sees good in moment opportunities to develop of continue to going very point it's I the have to areas and also hope and in the that, at at end so methodical which as Antelope test let promising advocating. good going just connections with north. year, and spending, north will speak we're and rig. those basin the Ridge one second and seventh number move be a around we've looking impact put go we're we the all going towards say, not he happen, area of what him little he's encouragement overall may a the in it moving this of service. level. the I'm I that playing to This record companies reserves. earnings it's towards the EBITDA emphasize the XXXX earnings that, to keep rig. that field that notable, this is had proud we I'm so but the effort protected many on that of better Matador a message of share. proud I put in not hedged, year we the that was of reason $X.XX the really that What EBITDA year, per we XXXX but we rig, production, And better And questions compare to kind and of to everybody are think optionality event. downside are it's and are price. more through at a always try to Scott think going options other end of per the And ever where in because share the for just the is price, best that's our is to on of we volatility drastic EBITDA, ones one moves put terms had maybe and quarter and and in trying

way reserves we want. Our growing are the

Matt – to it, don't a with the in pace in tinker third get also to shares that deal. is with we good ways we're a we plan to it, a find So but is that David it's I hurry, working and want like improve me as said

really moving validating better Delaware. there and the in to need here we're to We have We’re the and north even work we we may are acreage spoke Northern come you we say, if opportunities committed area. to never back an doing rig this is know, exploration and soon, the appear second with

we're we're of keep everything on That and to be the adjustment, that's got trying the make make going how one nimble, So around to to the get we’re need table, be the advantages. Matt? our up quick right to remain we smarter. if to reserve optionality, them, here, to is joke trying we things

Matt Hairford

Yes.

I Lea about Joe Ridge think Northern Antelope of right, and the absolutely, part that's County.

remember, to the it Bone because And really area, Ridge. lot up which of Antelope a familiar people County. into quality up expense Spring, and drilling in we feels step upper you wells Wolfcamp in high some of the Northern our really It’s very As Ridge, drilled is Ranger. that into first range are Lea Antelope

So the and I to north. we're but results. that boundary Antelope I the quite further play the And all showed begin Ridge think, to in think potential very really as that area, here, drilled three think excited that quality of wells they we're I for exploration you what see works push we extends first high bit a the is

are to further north pushing boundary So that and continue we're further done. keep to excited that

Matt Spicer

going based. be always the In to for to this Matt. going to it's question, been midstream what of us. Scott, it's your opportunity It's is regards be portion continue to

to come It’s at. water and to something Ridge what salt will gathering Antelope area can will likely, it that anchor serve would getting we that other like guess, the and So commercial as oil going on to going the always look all an area, but like probably will we – tenant to if well processing to things a be it’s the based. that need opportunity we drill get be then looks most say, producers too, – I disposal, or matter be we in

Scott Hanold

Okay.

need when decisions, have you volumes to water disposal make you deal make mean, and and midstream, both have processing salt the when all you operated do do On decision then things. think, the enough I other to we and the those

David Lancaster

something It falls a to Yes, it's past, be anchor done we've you. that, kind where Scott. an can of into where Matador thank or the XX% get we tenant, like what in capacity

drill wells it's you justifies that areas if are these several salt disposal, through drilling. the kind water So of –

activity, we're that well Ridge we a just with disposal just as a have salt at at on areas, it's to use, One in that of we commercial, utilizing but not area basis. look increase case-by-case continue – other and it’s those we in from both water Antelope will Matador’s the actually

Scott Hanold

was That drilling. looks have this my on Similarly throughout that working little acquisition on blocking It returns you a job interest makes of I expectation a your a investment. the like best rest you’re are or on the of year? the high should question, as budget running rest to how tackling, guess pretty working this we and CapEx some of bias What does through Okay. higher guys good quarter. follow-up swap and done sense you and interest bit and all rate gives little production wells the the expect that of a adding

David Lancaster

It’s David. Scott. Thanks,

talked this or and we it knows. making trades high don’t objective their maximize and compliment we’ll to I past I the are mean group as some always the all try make early areas good it’s know there our where a is of interest think that to look in are We’ve but little doing in to XXX% of when to wells. quarter think we’re very I those the we that great I our a little – to early about everyone quite really lot. that some and the to always the XX, in but sometimes it’s have as I this ability working know a drilling as so efforts want all maybe wells have at that, time, particular, and think trades, taking a far group that value land for the things XX

that advance, had you interest our really we the just of come of there that we we of to through opportunity won’t can’t have the a an to tried refuse. and I’m with that, but that value. that some best some take as what ability. other ones happen of I to will that and if are picking in that up extra wells that pending, confident I there had that those think sometimes did specific don’t of that delighted are but so bother to some in were offer best I and and but the forecast in anticipate of is gas can quarter of me. say, little we’ve this undershot the sort bit past out really And any advantage we know several

Scott Hanold

thanks Understood.

Operator

with from JPMorgan. is Our Gab next Daoud question

Your line now is open.

Gab Daoud

the more on and basin? logistical I ground everyone. the what just just bit morning you. along lines the bit of then about color, a you’re good $XX wells? Antelope form a Hey, just slow just Ridge maybe on we And seeing talk little million was maybe standpoint overall Thank maybe mentioned Could of the overage start? little the CapEx in a a think little bit there something average, we a

Matt Hairford

into little A to the a and wells as new referring that it completion, part going that drill improve faster Once and started, going area, you’re about Ridge, bit gone so area to to Antelope what and these and is a drillings of faster are we’ve that the of guys guys too. every that going we’ve new learning improved. the faster area in just and costs to gets the

distorted is fair across in So, extended that to a of that’s there, there. of lot related that’s There a back. flow amount

additional make so fact, the flow we decision that back good since was. in from really actually we and how a had well to to conscious these out time-to-time legal into longer there little back source indicates flow flow And equipment due it wells

improve certainly costs So, Ridge there’s will all are buckets that time. we we through something go Antelope of those a think number that different at there but into, fall I the as

Gab Daoud

I on Thanks all a think, from just then me. it. and services logistical any in off And then Thanks, issues basin from Got trends a quarter guys. any that will be logistical, Matt. standpoint update at and the

David Lancaster

movement but only Yeah, that there – pressure the to We been a ticket direction. the services. in Gab. additional on has some about but talk seen upward out we I We’ve availability, think really we and pumping been for services, smaller said, related to costs, really big being we it’s are when – some the also lot an that items anything so about haven’t price. starting to for in not upward see moved area. think those finally the in capacity talking of come

it’s amount competitive seen still very whole lot movement good and a there. so at of that of price. of a a there’s So not equipment I’ve variability

Gab Daoud

ratcheted but on wells… the demand your about you’re side,

David Lancaster

Yeah.

Gab Daoud

haven't there the from into on of content the is size come smaller, Your services to on brown basin the One And the seeing proportionately are and the some that that. has. problems that the the white pumping a you too second And because with the that methodical the it regional sand problems there to and fast again, first have can there brown like sand. use with approach is them, been with iron the sand. make and some going size to is size smaller northern the side, is effect shortage sand, an they of we're the past sure there we're the white move sand slow of in test to a have if sand

David Lancaster

This is Yes. David.

I think Joe. summarize that well, you

moving methodical go said, I we pace we're we'll probably So are but plans mean, guys the in of test said fairly looking something to to terms we’ve it's to certainly at in-basin got sand. and as things the as

Matt Hairford

there a we and the ways I higher the down as Billy that I'm chance looking without a getting for equipment repair, here. to as going will adjust up because though at we're and too. always do and to quality and bring the drilling to the as it the on his first that we do are well, cost, good question well even bit quarter get money's gas and define we we throughout were compromising infrastructure improve for the the little work, you they as give completion a of worth Gab, get to their mean cost come And to going be look exploration that

Billy Goodwin

to we each into eliminate We're us everywhere we we’ll some place wells, going and mentioned just We've of think faster mode, seven got just able the And development of drilling as XX string help get We're zip whole move page casing Joe and going Wolfcamp going, earlier, mentioned wells. be occurs like a refract to drill whole us there. got I MAXCOM and at facilities there, batch the we've areas we've the the earlier out. wells drilled into that's looking new David room now, hours. already section and As can to that out. really is developing of we've them helping records been a to we're

an hour foot the all XXX over it's way So through.

and we're Antelope quicker So happen lot to I there think see things going you hadn't a well. in as these Ridge

good and ahead. quarter good things a it's So

Gab Daoud

lot, thanks Well, a Great. everyone.

David Lancaster

Thanks, Gab.

Operator

from is question Capital Markets. with next McSpirit Our Dan BMO

open. now is line Your

Dan McSpirit

Good folks. you, Thank morning.

David Lancaster

Dan. Hey,

Matt Hairford

make my so short if it a attentions of I also you'd because short can earnings you Hey Dan, shorter welcome release, like.

David Lancaster

ahead that we all in trying Dan, do We'll keep welcome comments. to Great. those direction of

we your as can useful make time will We as productive. and

comment. keeping So

Dan McSpirit

it. appreciate Well,

inventories be the where much than First make finance the running question, put the route Delaware, would rig in And monetizing Permian, seventh a to maybe basis the or issue maybe asset. if proceeds proves more differential in in trend those a could to it toward priced rather be Northern, where to the the to sense looks Eagle Ford the work deeper? what

Matt Hairford

pros issues. Dan, you point I you that’s And on a make issues great time. all con a question. and the take while and That’s think something identify of We've is We've a got Or couple opportunities. we Is it be HBP. evaluate what going good intact to this are those time. transitory? the it the all all Is Ford Eagle for the a basis almost differential?

would missed out run valuable to going it for holding what a nearly two So It don’t Anybody game. get hits just we years ago, we And today. magic have say not do sold We But hear something. on, have some straight would wouldn’t production. it. an that, we're on make that but a on us it we're to brings we to we number, the deal. offer holding

later for number back years same just these companies, us gives it option acreage. and they the come five like it and an and sell for about So two it number times one reach think pay

are think sold it You need basin companies, basin they've much major have and the today their demand. more for about to this companies, acreage reentered other and out paying been of the and they there now

deal did with sold Haynesville So to our done long-term a deliberate Point. We’ve Brown. with it itself Chesapeake. look, a Matador of Tom We a We Five sold be deal needs EnLink. part to to but has

but XXX the example options when So mistake in that, trigger is pull is we on accounted XXX but to where have as go have will bank arrived, a or not in for sitting only that’s Cotton not acreage. Valley, numbers some and and have the no gas make bcf it of to we Haynesville the we HBP, nice that’s about the Haynesville, there

Ford. said invite we make very interested in them a we point in and that I the as to people good Eagle you very come So have and

there. a make will deal We

the had but money, of you’re Day of the the Cimarex, have at We to – right the reserved Analyst if We moving taking action our to Northern had It’s the give more wait, out to said, which or you’re first choice. people north of along, our one where thinking we’re Delaware, proving growing came take time in absent yet not lasting were Northern more our success is to that’s there, with Antelope acreage complicating to methodically, advantage that experience another and Ridge activity, factors be Delaware, differential is plan continue issue go look continue it Twin not about first improvement good all were wells hey it. not spending the we a on to some of to in position lot value because Lakes. process in well, the

rigs, and point excited to what be now. data good our we going working, in drill. And do over or we have about Arrowhead Arrowhead some put right that much really we’re And there over got we helps can our rig where think We’re well that to – to more ideas. the to confident. evaluation but is plans each is Ranger, It in the of make

opportunities, work to if high makes them have We the of that day I didn’t think comes of as class high now there the in grow. that and grade order at I push acreage will locations. think it’s able in Matador that you XXXX more back. looking And plans kind And of remember enough came you as a about to and data clear. public, of and the and it a engaged number and fully we lot and our something more not we’re first being was so, have problem. a in that’s And a when just locations is plateful And in net

So Eagle and is Ford it's Haynesville that rock. in quality there to the exciting all

handful a kind cards us of to play. of gives So

Dan McSpirit

And up that’s Joe. good my follow second my into understood, question. a segue Yeah, question,

test? north that Delaware, capital into from conclude did B own putting Twin Lakes results well Cimarex’s area more Wolfcamp of further what your you timing supports Moving what in the from work the Wolfcamp B and is

David Lancaster

a Dan. hi, which It’s tested well, results Cimarex latest the the interval think Yeah, what we minority partner David. the of previously. slightly at had either we Wolfcamp Look were different B were I in. we by encouraged They of did test or they then

positive. time, So – the doing Then results. and that’s in a so, think what a have you – bit I have – better first little bit

stimulation that either some So believe in I learned think I of what experienced smoother that the area. the on went about wells – first our Lakes Twin targeting. well was went things than we littler, a have

so, of of And and made – design to the the into also that completions. pipe strength the believe used was were tweaks kind I the some there the to

portion to we're a good that drilling We're able think to was on begun though learning going area. on we’ve we’ll of so east something test and to it Twin probably the be actually even actually different what they acreage Kemnitz that Lakes a will our where – even just little be We're bit wells. I of target call they to we And But western the sell. were a the that result, that piggyback as forward. slightly going

it next we I to know would a anything I get have will while But so couple before on and into drilled we're we too us the well. has talk It will it that area. this able be imagine looking come would by very about wells. that to encouraged and still tracked. drill area take to a would at And the the is call least And Continental that be

maybe kind together. pioneer others collectables to have among they on and also. that have that met nice we’re think can't acreage maybe understanding side And to some begun be And working so I it's of that are the Midland

think take of this us it areas and little But exploratory different get for to about see going was than worked that going being really other much known a So area that that we in I all, don't one right. some we've all was I to the as all to an be while in.

very now those to the Our deliver some areas of continued got are we’re initial to best, happy as able with we results other curve, the in improve but in weren’t up wells learning the areas. we and

that your well. think take Those of are answers our able participation some were So we that I away the learnings hope I from that to in latest question.

Dan McSpirit

folks. Well, I answers the a appreciate Have day. great

Matt Hairford

you. Thank

Operator

Haas with question next Our from is Capital. Imperial Irene

is line open. Your now

Irene Haas

have I two Yes questions.

opportunity is rich. certainly Matador Firstly,

kind how light AFE for of So full have Twin XXXX CapEx. still of drilling that B when particular completion guidance much prices And Matador that now well as intact Lake? year able of as time on to project? in the secondarily is time and guidance is you as might update specifically wondering and Wolfcamp allotted stronger at the be What the and

Billy Goodwin

every direction early first about in take sixth Al look have rate right, processes as I’ll going. we're enough seventh in very the and year enough year. to feel don't know of where, the still the direction early just just that make but we wigwagging it’s And the those data, exactly say don't it's of day We calls. we're the Irene. what And

time it there. summer. can and into early And just kind will help it’s the So some you us give of we probably

next Lakes, in or me David. over this As you that Matt today Twin to let get either well on see

Matt Hairford

gathering money important to to Twin is did. wells. lot the from going and and fair of Irene well very to We're for a like is Yes like sidewalls on going us. going drill be things we a next we time some whole spend get Lakes, the core Matt. And can value we’re that We this it's one and that these amount truly do data first to

development on the So terms south think be I going we're a to of basis just would in to about it are to these more wells Ranger/Arrowhead. of what comparable doing

to. what development kind a that's for looking cost of look you're if I type So

Irene Haas

set interesting complete and drill company exploration to you have time much how there And aside project? very

Matt Hairford

days Irene. XX I think About

Irene Haas

you. thank Great,

Operator

with is Our Capital. next from Grampp Northland Jeff question

open. now is line Your

Jeff Grampp

morning Good guys.

Matt Hairford

Good morning Jeff.

Jeff Grampp

I assets? max have rig an areas, efficiently think more just your develops And a more just Lakes asset bucket what in kind for Delaware When and of of about on kind a of broader measured think question build you you think if kind guys thinking efficient different of a your proven where that a guys long-term, step kind profitable about growth the Twin for of max in your in about base. rig guys and a towards? case you of back to is at kind guys we take kind number you good of pace

Joe Foran

I’ll try then you revise.

of on that not mind We’re frankly. one

much products hard to of that of on a is it's on is sure. you your and much don't just because decision so so And pin variable, it for based single know

other and are plan team game your at you the pace, a and run. and that order in plan, you weather that You a game good having gauge. quarterback rainy windy it going is is, you're the running the of changes game And you the are or day know the features, change say place. your the say a it's to like coming can might with What have turns place football call running or market objective his would having change look don't we're Well to back you plan. more why plan. to up it game what as this gives they But your out is going that just would of an that's

and you up are a the And new go is have got but they there, improvements bid getting it the come to can get So significant them a make drilled plan have to the bid meant in of hours. was chert to example companies they five change. be first and circumstances Permian as too should matter just to and days there plans, you spend many changed we technology. difficult when of factors, along would is four or have that don't One you are designs, we with

you yet change time. significant a time that think a made we that we're to can't talk those one rigs, And times. committed in good question way I'm did But – how not we is drilling try C, your at look the as important that make for as and prices, even many months. We trying it's to them all change about we very all, ways option shortened flexibility and option it's we we because where disrespect not compressed the So much oil well evaluate. of make or maintain option what And also can. six we all a nine gas prices. B, at the to We results, A, depending but drill think that's on plans, in

that a did see a expected they Now could plans we once think. big with do, to when makes we a we lot service and that. our pretty going public much public you we say what a probably got this company you're try job great what we're shareholders to to different as good we a is and to could and cost It’s difference, But stay But be and were if personnel. question a careful is internally. you're company,

and we'll now. the temperature circumstances lot but Day going there. we a kind of and at with have we what go watch Analyst on And for from the So plans of said stick

Matt Hairford

I you well Yes said Joe. think

one time the not XX. going we're move jerk I Jeff do a know a have going we're to think and thing reaction, zero not long knee that you won’t it's from we to

we right things. different way is very rig are we pretty the of lot – there a he Joe as of t seriously the just acreage stuff efficiency grows. And and variables the approach this and We’re grows, methodical take in there, we

at different So there’s all lot that things the happening time. same are a of

Billy Goodwin

This for we've met Jeff is I’d record of like consistency. some to exceeded sort quarter or XXth the think guidance. that building where we’re

that's with we going on we So a to count organically. that react growing but at shareholders lot discussion fashion Matt we're and of it proper that. the and like will thought, that day, issue what measured can And effort feel and they what of we're when and as I deliver the and to guidance we achieve and said stay growth a behind to the not says pace there's

were transformative the companies look And wells, when important public going we we're think I along, a making you the over drilling we're today that at And too to oil effect. acreage, it’s went after and building midstream. where We're a barrels buying day. XXX bond it note may not the XX,XXX. we work have

it going once put be that's went you more say we where would do to of to acreage just people why where like get and and in acreage working it, Well, can should and but what behind in you we be – And you'll said, would we is up plan got I we are to Eagle we but be past transparent the got we as say. the stand we And got and when – Ford. remember are try we as money. if we was we'd decision Delaware the an it So we and the don’t then right not and a spending pushback, never Eagle to today, there public, think the this around the it I to out we've public acreage. then there, buying we I today. have Yes. for XX,XXX in stayed if pushback start buying go and lot look Ford, Permian – think

and we're up So comfort relay its what some we come we that anything time. that along questions of will in I in and this, on will you you do, now, and care working itself done on those we'll and take take get think as will see own say hopefully else will

Unidentified Analyst

appreciate then time appreciate but I right. a understand straightforward answer, and not the guys. have All and thoughts I it’s

David Lancaster

tell to it, trust we I’d wanted the get but because to he didn’t me. tried Maybe you it are couldn't hear say. on to hear that, we lessen make working I straight-forward, what listener Jeff,

Operator

is question with next from Weil. Howard Our Philip Stuart

open. is line Your now

Philip Stuart

guys. on Congrats quarter. good Good a morning,

David Lancaster

Thanks.

Philip Stuart

to you wells those and were know Circling wells single-well pad pads, on completing those a I'm but if would Breaks, pads. about capital back Rustler talked the have multi-well savings on on the been could Garrett achieved versus that wells well AFEs David, quantify I curious by actually what efficiency improved those per for just

David Lancaster

to other. the take want You

Matt Hairford

Phil, Matt. Yes. is this

we're $XXX,XXX are saved saved rig that and pad a achieve there you you wells there's these lots efficiencies on when quantify well might But range pads. I these think drilling we ask but pad, multiple I this. drilling the savings, just Billy cost to we're average different cost, cost, in of on singular I thinking well multiple drill the think we're on moving per

Billy Goodwin

see I think of see. wider of range together that. will them more of $XXX,XXX $XXX,XXX three more put $XXX,XXX inwards when like even get a We that we or that, we we to oil some can can than

and we the and So can all all them do all in zipper back to and the the fracs it's just big and and go get number flow drill together. together services

it more out, lot helps So a efficient. really

David Lancaster

so fracs. to a agreement actually the fast pressure pumping, with is hard on if time, is One is of per $XXX,XXX they us give pump discount the have easy well think there. will that's we to Halliburton and our wells at we The Philip a same number multiple that we specified that point fracking are

Philip Stuart

Any know year. that be that, in Right, would the Breaks and you And in that Rustler think on points one in stick get other one sense. more any wells can update you I another then And around Any formation? participated on when sand? data all planning a update as you to or test are I that participate this to couple Breaks. makes of appreciate I

David Lancaster

you and the have we on test, And a own participated update Day, this I point. what Analyst Yes, at discussion are don't we nothing looking add our to much talked really I there, to from of Philip. wells think at on the we're probably lot the that Analyst that doing think Day possibility to okay, about doing we in still but

Philip Stuart

I time. guys, right, All the appreciate

Matt Hairford

you. thank Well,

Operator

Pickering, Sameer Panjwani from Our with next Tudor, question Holt. is

now Your is line open.

Sameer Panjwani

guys. morning, Good

Matt Hairford

Sameer. Hi,

David Lancaster

morning. Good

Sameer Panjwani

shift gas up, from quickly about the and know specifically to Waha about all do case thinking standpoint, able the in you gas scenario how Matador to the worst flaring if how way from backed you you flows and capital regulatory So, do at earlier think get are versus operational results. shut-ins from seasons

Matt Hairford

need been to we have to our it go gets to we we advantages have play, and start that fare on away in can get of you by ability to we're does you're of think to progress I to is is Rustler Waha. coverage, gas things sell have worst the different mentioned I the into as you think know take case early, scenario we so gas, Breaks realizing we with gas refrain Sameer, pretty confident to reducing the add and on this we what know we go stream down can this flair gas Matt, the that in value continue to but one do going if the some that gas, can so actually it we permits feel don't doing the amount

Sameer Panjwani

would I frame that than And of Matador in specifically? how industry guess the broader answer the guess you rather context

Matt Hairford

think ask – in to capacity You improve I is know for it's so this like over think that projects that’s so speak and can't price, going it's problem. just thing additional guess it's which do a this corrected I think I or I going everybody that very not question but this know relatively things to gets it's know to add going short-term it's but respond shorter-term I line, our really really whether very to I coming be the a a there industry be one you we for are short-term think well, something tends problem maybe to a thing, will also to it's

David Lancaster

follow is drilling said, I things gas up maybe Dave, to you this the but some as with comment of kind user. not or all of on of Matt about asked my certainly Sameer, the that know CapEx just you add one the he shifting what just said, agree

completions fewer, have and know last probably we've you know may both you so. actually or all, year, be this year I believe of First clean

your I you but that it I just air we think but works Ned we just become sort easy we produce maybe area. a us it's up out, point, of kind less one better did, how is of focus are less we think oil talking production think just in be that if all might like, year, Ranger recently some problem our a be wells to in know of I XX% the this that area. question have that not on this don't and because gas opportunities tend Stebbins certainly for of schedule this it our to I rigs on or XX% drilling earlier up at it sort number So that again, have about have significant that that been to have like, up I of particularly that's have that here were of working gas, tend anticipating this reason which maybe area the the was – just move head to would know pretty area, And and you ranger stuff to think on an different to through tend we

so becomes serious we also more if could might And that something temporarily that be problem. do a it

Sameer Panjwani

to Okay, still of you company. helpful. talked additional you on the I a create the think be there But And are that's know wanting about not I to about value. longer-term a think guys midstream have then midstream plan, JV, opportunities as lot

So when just or to think get think ? cash you business if to that value actually trying pulling start it to in more forward do matures through only additional enough

David Lancaster

is again. Sameer, David this

a the is and $XXX finishing we Getting producers to that time that million the finished pushing a plants we've here up right consistently, said big budget really other continuing Mateo ours. the third-party We're that is to and over San for now is hats on pretty sign focused to we're through midstream well. producers to that or what or on this build plant again in and And for recently or projects on off what and and up scheduled. of year beginning out working. as think that plant day team I bringing the goal now was plant have

direction we're I So right the moving think there. in

course, On then, drill and capacity. area. of we'll we the filled Plains of water earlier, doing know to water Rustler have year, this side, the getting about good job project. And as disposal that are We’ve Breaks two And as so guys you in Wolf got up mentioned disposal the Matt more the adding asset additional a well. be six wells

anything begin to new accomplished So solution top three of a we're to the plate I that the year we side of do for midstream the service, think and we thinking to just kind probably that of of of get we’re to a I care not these important make the assets in pretty this if rest on trying and adding customers Mateo we're San of get done in things think full us kind there’s monetization have to addition we And I the – time. that, and one do is dropdown itself before that for we're this step strategy what's built Not anything, that out kind to think we but that most – I think else. want if or offer. happen. any any very or telling a thing on thoughts just continue a it focused midstream ahead at can takes about on And year

Sameer Panjwani

Okay. Thanks, guys.

Matt Hairford

Thanks, Sameer.

Operator

call over Thank portion the closing like and ends to this call. gentlemen, for Q&A remarks. any ladies to I’d the turn back conference management of morning’s this you,

Mac Schmitz

a to you. has really notion again, a outlook lock Thank close been the our quarter just this like and we chances. that with this, great I’d

obvious good lot chance we should to us very per share, Here, be our good it forward has this first have record off well our good EBITDA, earnings a good money towards the that reserves, we’re quarter, that production, and with where going with that start And record of results, on spent record results. strong results, is been pace. midstream land

growth we the with age of effort. So way been I better only but the drilling their much the with consistent how the public the not never better. and would and We with a return, hats staff since well; think forward for better. platform tell completions, long them, – the like is that and think appreciate And we again, going really has facilities, stewards, done for their technical are good the production, coming and Matador and staff of and off, them is we've plans give compliment get we've good and proud executing – this come innovation rigs, being of really use to going

have what the hard we I it's think of well them, and And results. one better achieve committee good of tried can enabled had reason results go because or of questions to all to the out middle have of a pivoted we've been answer in number without but today think and there raised review as that's we’ve to do the we the to circumstances. we we’re year

forward delivering And like them room in think way. an back meet And think the our for annual all and look group again, we very for but really have making say So you'll the that’s ever you best of forefront for the in, in direction. better. we old set and emphasize me, to see we're is that for everybody the all July. probably record right your pitching young report some left and forward you I the meet give planning to and different pace David it's this continue coming the meeting is and I come results, you of a year to questions. look This this at and well, not guys, results is update, had. strong we've we've Appreciate a their getting and that the areas this group and we the into on and opportunities just And, into Matt, in of person to what you improvement, kind Still happen. but comment staff to of there's in of things –

have with breakfast come, or So off take invitation us with that, lunch up Joe us. our will to I’ll hope on that turn and

Operator

thank gentlemen, today. you and for Ladies Conclude participation program. your the

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