Matador Resources (MTDR) 1 Nov 182018 Q3 Earnings call transcript

Company Profile

Participants

Mac Schmitz	Capital Markets Coordinator
Joe Foran	Chairman and CEO
Matt Hairford	President
David Lancaster	EVP and CFO
Craig Adams	EVP, Land Legal and Administration
Billy Goodwin	EVP and Head of Operations
Van Singleton	EVP, Land
Brad Robinson	EVP, Reservoir Engineering and Chief Technology Officer
Ned Frost	VP of Geoscience
Gregg Krug	SVP, Marketing and Midstream
Scott Hanold	RBC Capital Markets
Tim Rezvan	Oppenheimer
Gordon Douthat	Wells Fargo
Neal Dingmann	SunTrust
Noel Parks	Coker & Palmer
Irene Haas	Imperial Capital
Richard Tullis	Capital One Securities
Dan McSpirit	BMO Capital Markets
Mike Scialla	Stifel
Sameer Panjwani	Tudor, Pickering, Holt
Jeff Grampp	Northland Capital Markets

Call transcript

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Operator

Good morning, ladies and gentlemen. Welcome to the Third Quarter 2018 Matador Resources Company Earnings Conference Call. My name is Daniel 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 company's remarks.

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

Mac Schmitz

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

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

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

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

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

Joe Foran

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

Vice along and Vice me Billy and Technology members for President; all Vice executive is Executive Vice joining introduce David Executive and Head Hairford, with Land; team staff Singleton, Executive our Lancaster, your President, President President Legal who Executive Executive would Officer; committee management by Financial Chief I this like Van Goodwin to Land of They Vice Chief questions. Matt of standing senior and the President are; Reservoir other and Administration; are Now Operations; of who Robinson, Engineering President Craig Adams, Officer. Brad morning

our an quarter above and in issued the record all third outlined Matador quarter outstanding for moment and yesterday, in the that want which and a some was entire original exceeded beyond. groups staff projections. XXXX for of release to note earnings really us and As to take went their achievements acknowledge I particular our

brought of difference, reduced Rustler to They leave Breaks completions a on [aiming] got and facilities. new in the The goals First the is group just services, I great goes securing some the guys bonds. capacity through out And E&P, have this our plant, if plant whole have of set this record in we transportation the want substation zones, agreement Auooga, and normal shall Also plant midstream in number decisions refinanced they've They what given mitigated a some third-party midstream ambitious some in getting fractionation rain, the they've hedges that them marketing to and which those really including us the help much and of of our done. the achieve off very problems and have marketing; accomplished for double bonds, demand They've has an there to made they results of shout and And getting our and appreciate contracts our performance. goals got differentials place their kept our a get drilling, group. for in finally midstream. land after time, when commend. our they fought they on just on these the to financial that turned some Also added a had for going, great budget, a just quarter costs agreement, don't have and the made innovations want around redid wells. for production the production as have on to office got what And came all bank the were wouldn't hadn't we been quarter And guys we to they out throughout field busy Auooga relentless they they XXX% period. kind work. who work. truck to the traffics, the

I this total all letting And momentum. words. team hard to wouldn't also mentioning And so we up their bit the a them. to keep many up today effort. to for And a feel you I reassure of right analysts I it's want not on want been kind without thank are working

let me Daniel to the it and questions. So back turn

Operator

first Instructions] Markets. is with Hanold [Operator Our Scott question RBC from Capital

Your line is now open.

Scott Hanold

you XX% talking full mid-stream your progressing in with release want about your that think nicely. to are across XXXX? recent you about Where big Joe asset see you and position? of over you press kind you being development how Can where your take the acreage further plant talked contracts. that's I assets talk And about the processing pretty when gas look to do midstream the really in opportunities you

Joe Foran

to the will ongoing most we with acreage likely and getting results what are we our work are encouraged is well we seems steadily the at production. Delaware. improving. water as is to is there our as that's saltwater disposal me thing there movement, the be the are acquired that wells additional to want an of probably which to to locating talk are in feel in look gas. reach of the there underserved up north areas Scott, we And the close going BLM Northern day. have where And feasibility some we of think lines kind candidates North that you're and capacity the every that of we by oil continuing the about Where to we you extend first this? where some gathering that do want obvious literally you go question your And we And now for so

those a And into agreement have take will is so with central and to disposal and the follow-up your third oil on makes station. area begin you that to gather pipelines with developing so Plains, strategic And bring in future what you the further options more to in with our processing sense it areas saltwater gas to the potentially the want markets oil.

kind to So, of and anything that kind in you layering add or Greg, Matt that would of that? fashion.

Matt Hairford

me think midstream the team Joe, Scott, it you well. I thus that had is really To the I success far. is think important what said has

at will you for add continue the foundation Rustler us, like sixth where things, said, at I And six down got being you Breaks. as plant that think we saltwater here be Breaks you have got the three Wolf. Rustler what at Joe We've of well that at the drilled add mentioned, does the XX% this just at end it With wells disposal that gets year. to

You're able to an plant. at add the aiming trader

to the you really things business You're additional it out midstream can as takes things. risk you where able get these tack of compression the build on And on.

you've is get you forward. deal. As are you going bigger saltwater that that so another adding adding usually And disposal committed when volumes got not and a big bigger well,

to think Matador. the So done and and make at job, and both for that going for San just continue we're right doing thing base Mateo opportunity to what has we're the sure team great look I the is analysis a

Scott Hanold

some XQ a point do looked look ones. of might follow-up, bit Is result And time that it like flat. what quarter production could sense my be? in a like you as about as at to like it we quarters, a drilling through also us And a is of that how And being when little XQ wells you we but looked this is more give some go the happen there as in this nearby more? - Can little new some something talked impact for most bit producing it maybe it that be by going in XXXX? with

David Lancaster

I think like than little it's It higher happens happens It all just seems bit this time. that a the most. it quarter. just

like do, is some little was just this be was just We to But those the it just we’re better. in get a have think felt I things able like which just always through this of to If that going more a bit shut time - wells get we I was felt strive - mentioning from higher. quarter looked back might it little completions to time. But we then a online, forecast be to quickly worth wells the like what time. at little looking

maybe need to operators it it's only shut caused us completions our from other getting recent our completed to in that we wells offsetting completing, some that sometimes of wells too. And that are not are

happens. and those things that bit we of of it, mentioned little one quarter, it a just stuck but always So out that's why this kind

Operator

you. Thank

Joe Foran

sure when hand X% Gregg where executive and great the question, turn out next and of because the work the to you rolls note ready thank their the coordination effect planning production formed Matt, and like ready the wells to a all gas we've does they've pipeline and less on does of are that over. when for the with them production them Gregg marketing primarily the and are go would between us results, making Matt is to they our committee the that we and group, operational our can And And a together. want that than leaders see and just the and execution, Before planning I waiting on to to had the smoothly. we midstream they've on been team with production

not are So I don't want to admit they smart hard-working guys; just guys. they're

Operator

Rezvan question next from of our Tim comes Oppenheimer. And

Your line is now open.

Tim Rezvan

noticed picked a the balance like on sheet. bit. that to I of first I'd leverage start kind up

think with the I expected that acquisition. people

most kind price is as given kind level two year. people it of at You managing the organic thinking now about I leverage think and highest next that are in How commodity is about since are the XXXX you and of see modest which deleveraging volatility? times

Joe Foran

the may in time. some number up. that that at first we've asked David land That are them to I are after the $XX sound of this just at things brick receive and transactions for we offer We've a will or doesn't start careful already $XX property emphasis time a at the of in for have a a up brick picked time up. and and are still we that on million for added property a Delaware we that. and of a little like Tim countywide and BLM doing made But the million. serious this but around deleveraging going neighborhood give collecting a consideration. about then like continue the a or open or a are deal clean balance the receivable frame much, sheet making a retired do we renewed trades we accounts if bat put last or Say here - Whether collecting all at month the we we whole our tract the to it's and being out those will it Eagle over acreage our do brick way, on Ford serious same Haynesville nibbling it's off

the eye But for to a sure. pretty also on pleased this last we also improvement to saw David? hope matter and - for in We big back well an with that out XXXX. so is and see get our it are year keeping into year goes working address year we with pretty you from we us further E&P as are the on EBITDA and jump are continuing you to trend.

David Lancaster

concerning. bit about think we've the may the And correctly don’t highest as you out, since early think little It - is And quarter we level. much look things But Joe, than finished Tim We at of it but don't to not tried expect up summarized much I always have we you part it think it either. a into is go X.X go we to well. XXXX. very pointed that might the it's down next averaged. I higher that which year, keep I Yes don't

the chose do, through at commodity something We So I just to take we we if cash even consider. We've the entirely it's in issue to alarm. like But think we our down we level that some it that That's for it time. never any I the two, the put can road, can. we need begun certainly non-core kind flows for some equity in price. constant we said of of year would as downturn think well. to don't not a think stay next this any believe will try and we fairly to hedges to And I we significant go will Joe be something as continue at and maintain monetize nicer that XXXX need the do also to we as certainly protect to ability feel absent would be assets

that hope I helps. So

Tim Rezvan

a to quarter Mateo. $XX for context of and On some to I Yes gave Can million I year you talked XXXX. stand Day specifically, high there. high versus your topics a EBITDA quarter. year If you to earlier talk have appreciate EBITDA about kind to change of know segment the follow-up date I maybe case? you setting case ramp Analyst at that could this does. million big million And have the you XQ there's and the base parameters the of your about $XX on about the a stage XX million kind where case segment $XX for San kind

Mateo? Thanks. EBITDA color any on just So how the is at going ramp San

David Lancaster

pretty San I'm quarter. maybe I'm think of all, for just a the believe Mateo above I million that XX EBITDA well. in first was the little EBITDA Well is very the correct, third number ramp around we sure going

so, we right are headed in the certainly direction. And

I think be we XX don't close we were not if spitting in in be and there QX. distance will But quite in it there. the quarter. will QX get million get there of that the we I'm will think we in to I we if sure get fourth

matter I of it think if a might So anything little be timing. just a

I feel by that will and we think we confident will range; be quite it in - exceed hit QX. probably that that I

will anticipated we But we we anticipated. to reason the end the towards come the XX XX somewhere that out going close probably fourth probably for awful it quarter. on will as to Some the the of up were if to get still are year, get of in year. quickly would we being of as counting whole, gathering the had the we to end come revenues that biggest had in the XX And quite probably as I old to say don't we Tim. on a didn't And year million that for middle the

Joe Foran

capacity is Tim look long-term say flow. into bode capacity. third some out at gotten I'd thing, there that their long-term contracts has XXXX on gives The out the thing secured stability well to cash other The beyond and when - processing. same XX% to you third-party and group gas base It's the

And in us so, that really they've of you're - worked provided into planned. is - blown not way But has so much beyond as working not months get gone as some them their to the everything is their gone right and and were pretty were done, that the everything by And of issues everything control. other much you was hard area people so are but days behind. behind, delays

Matt Hairford

Mateo do some of recovery. aiming is about trigger that out amounts run ethane what that's and the full Mateo on HXS the COX that on it And is allow for the to oil gas talking there. San allow small and sand oil and that of run to facilities. and substation HXS And regards In said going budget to plant, time in order on run on go process us more that recovery. we we plan to assets, ethane some time, electrical are reliable done to regards some also how power we crude disposal to infrastructure to amounts to us when been of that San up got small ready The the us the finally is we've that of going we've on us the substation what to what Obviously get too. also David better and handling are quality, gives for have that gas was that's also in line place full we out and plan the Joe COX to process so do the the gathering, to

the San thing; that's So that's can thing. of recover ethane as great Mateo a Matador as We a better possible. for even much

be And will contracted for have up. for plant. back that the volumes NGL So entire done the we that the to

to guaranteed produced that are NGLs So all fractionated those and transported. are be

really now. good right feel is that where asset So about

Joe Foran

first its sold thing we one that to like Tim we is about proportion. down million. in EnLink things Wolf to in built other XX there And plant In put was I capacity that the

choices up we options so promising times are the consider are double projects lot but that's the good considering train that that capacity to are consider things Rustler Now We've to at XXX from something perhaps would Breaks XXX something we Wolf. looking seven at that Breaks and be million is optionality. got those is guaranteed including are million is had ultimately we that nice And approaching to of what good some is six able million. that That's capacity XXX there down to Rustler and and a up I'm at building possible third a not saying. to to up some nice

Tim Rezvan

there's Just on seems lot like at of Antelope given happening it midstream. the Ridge options everything a

for will So your I leave it Thanks there. time.

Operator

And Wells our with Douthat Gordon next question comes Fargo. from

Your line is now open.

Gordon Douthat

Antelope actually. to But you obviously your and to wanted look there different Ridge front good results are if on to about other Just The a that have anything parts basin? the you wanted of there strong, inquire pretty ask just relative area. doing see completion designs well the about

Matt Hairford

is Matt. this Gordon,

of volumes completion continuing We've our in on We profit and are fluid to kind tweak design. volumes. settled

We pumping also more We've slick been and water with been designs. more tinkering a looking have more regional and bit sand.

took we more we've and As to more with the pretty business but into getting getting are talked of that methodical a before about comfortable approach we part it.

test the and cluster completion design. different just spacing We optimizing just continuing to overall are

wells better the We've been The a utilize seismic area to completions rock. steer in. targeting. and operations max in zones doing the to find so it's to great some better just that other And drill got we good we've plus with able our thing them related are is that's area, to not time

Gordon Douthat

the Matt to you that? your that to have do specific apply your get on seismic, other various comment is then that that something should areas or areas that you across could And

Ned Frost

We seismic have and over Rustler the Breaks Ned Gordon do this is Ridge. Frost. Antelope

now We northern shoot have in group in with data much the up a pretty the basin. Fairfield the whole are house Ranger half in and some Delaware participating we area across of

XXXX So out is we data and targets our in a acreage our of want our the and I moving what seismic that And that forward out targeting, XD far said asset we've asset the we really, of basin. will over we also lot have so coverage value do have of Delaware Matt seen under really bulk reiterate to of that Jackson identification is Trust the left the I results. are helping seeing well too. Wolf the and into

So that into our increasingly to we're going be workflow. folding

Operator

with And Dingmann our Neal next comes question SunTrust. from

line Your open. now is

Neal Dingmann

Joe, just guys. and all you a for question the

from - the with You be so to there, that D&C had My question is special setting or such a D&C your on record there continued obviously, note side that to one good? is, new exceptionally one tremendous that caused that that just on improvement well or XXXXS. strong was anything

David Lancaster

Neal, it's David.

rock. mentioned team. I a it's to like It's also think, our as Matt geoscience I'd good But good there, complement clearly area.

steered again, we the a team good about thing the back-flips we X,XXX I a said really, we sort in the well. importance Max that that good this follow Joe staying was where group attributable geoscience little sure team We on a thought do the chosen the these impact And had be. XD, to this of a well this to on length of on well right of, I But was the say, And the had in well. that up able adjusted think. help just and the about to Comm well. likes the turning be a the target And think need Ned I good, quality that were really think wells Matt and nice the it targeting but particular the precisely in target were think double we because entire to that XXxX bit to day about of, said think they for kind an that, the fact Boe other but think And was, Thorsness that job a of great of target working also I that. can't did I exceptionally are what of we clearly sort had, Thorsness, and job to made what downstairs of lateral. I use we on lot the a that's as

Joe Foran

seven are give days on, XXxX, seven shout to zone staying they to a out go Max off, I'd They our Comm. like days better. in and the

Head that a an you in to drilling. They out Billy making got together and a it's disciplinary was are work and Board I we reserves. I If idea, of have is your they've and this stay well that - the - they real of engineers extra Goodwin's our with was XX% to to to was use because And think zone, room televisions adds at as enter of reservations admit they that time And contributions. a Operations, I had or the room. I XXX feet directional geologists wanted lot in mix really there first, and to go to have the going

we get to are zone. But on Max the Board so room. well room; because they single didn't we fee saving got and they're in And they're Comm every staying net pay, adding money the

And so it's...

David Lancaster

to down drilling on a there. together. And they're geo-steering, sitting perfect they're it's example shoulder We've working geologists next working got engineers on to but think only shoulder working performance. I of not

there the of got be engineers reason slow, you've So faster about things happening. geologists why talking geological a when drilling very they might having next it's drilling drilling to start good sitting it's are advantage why why

are better they wells. So and drilling saving money

So us. that's not

Joe Foran

comes a do I'd job pumped are it this a away, is fracking Neal, good, They put pumped makes wells improve doing there. constantly always always also still I big these makes And - successfully away trying matter got stages wells sometimes guys are but together. getting that terrific quickly where it the I've you makes And And completion and think one good a just fracked. bad we it all what thing they all that And think great. known also wells, difference. innovate and on these where just I to get to of no fracking out say is makes just case

of And those where is it made it and a so one good think took cases well this I great.

Neal Dingmann

just follow-up. one then And

you then broad think Stateline of and see were in earlier. guys could. how buildout I necessarily year, if hitting of in just progressing? this XXXX about you just terms, maybe talk Matt on but over for the this you and some sort Antelope of Not remainder Can more you infrastructure

Matt Hairford

advantage the obviously think the of blockiness that minimal be there is to we we're and acreage number of I have able service the from number wells a of drill to locations.

are we At that pads all look. production team where to the where whether do we whether want we companies pads, infrastructure internal another what those want are as put do or to to they it together, midstream So are speak to putting they the into have is ourselves. and going of do they locally can actively infrastructure one finding the tie out decide going we how want drilling with we somebody point volumes, want to that it we going to with or whether to

So and getting to about it's electrical add substation going and electricity. it working be this the box We've but not thing we're now on just big a been right on too. talking that gas, water, also important and enough is oil

plan. part of it So will our be and that's development ongoing

Operator

comes question & Noel next our And Palmer. Parks with Coker from

open. Your line is now

Noel Parks

LLS as and the might see curious Finally, premium pulled far I staying of put costs working it What decision? sort the returns you what was peer's the back rates, interest over you from day place, there. then hearing also was wells? we to that a turn in in making to service decision and that to XX and Eagle the wanted also the out well and Ford were making cost thinking read line as I in interested other

Joe Foran

we considerations start exactly I'm the of various I'll but in consensus we off sure the end came of we that and that and right same all the not all this you in the that are when way. those some to I weighted different But mind, And a mentioned, pitch was do. were thing will those

a you took little price had You differential a of got. oil you so advantage that better

have but exploration also XXXX. would Most have our you XX% approximately to with already, these validating a until we of are You else and wells was lot. - HBP didn't any will acreage nothing get

the it economics. drill. to that thought in established thought we first it well record thing time details. we was And So pleased was look a And good the to Matt to to it positive new turn it a and for I'll further I'm out-of-the-box took also at say over

Matt Hairford

and Yes, acreage we a we - these Martin all XK drilled rigs and well Ford ground Noel and of year the it's drilling brought When the have I of rigs running. up we think, came drilled it - their on it's we on that and Ranch. the XK on rigs up started Eagle the Patterson all back ever great We rig rigs. new picked last like fastest that and this X drilling picked we the a Again rig. story. rig, Patterson their high-tech hit down We one of started Patterson

fastest really well nice well first few Joe second been we the working hours that. was drilled, slower the it And the was So only not well said a with than had like just has Patterson.

this wells in drilled So the we out-of-the-box the two Ford Eagle new fastest right with rig.

very So that. happy about all

other The to to I thing are wells. think these do anxious complete is we

really, completions. bought wells the on we well advanced new One with Eagle when those completion happened wells and that these really that these put did them the Delaware technology we things in and last Ford drilled the year we of

towards the the ones be look So forward are end here completing to year we turn of will and first out. the to going how those

David Lancaster

David. is this Noel,

interest a be maybe working we I the and we X these X-mile wells of will and interest a tell in have question we order I you almost asked cost can about imagine to on all Matador. minus plus You to for of XXX% X.X or Probably that essentially X - are get well $X probably one-mile million, probably closer well. the working if

longer these laterals. some of wells be - longer will will And be

longer the XX think X will So about be I laterals. of

Noel Parks

wells the would as noticed Chalk in I well mentioned Eagle targets that be Does something or mean the primarily also Ford. be else? Austin other doing as the targeting press you that you'll release

Joe Foran

is that Yes, what that means.

we announced we earlier Chalk We've do any think the we'll so to or that rig a in two. areas I to Austin or give and as a tests. two We so that for the and probably with think one prospective on Chalk that's acreage noted are tests Austin our probably the when in are actually something not the we do this going certain program. one plan shot of Chalk here we done

Operator

Irene Capital. question next Imperial our from with Haas comes And

is now open. Your line

Irene Haas

third-party really second understanding a considering up oil the gas of it processing my Wolf color? did differential. and what daunting things for and is am gas has you how just worst. kind Elsewhere then looks So the is which Any when a try I is end the have to how question flare you you secure pretty tough question do Delaware was to precisely of difficult gas great. Mid-Cush at Breaks getting curious Rustler be plant basin October like the with been? And X% It really can you challenging, and and going out is

Matt Hairford

Rustler Breaks coverage regards NGLs to the out, is there the oil getting getting what gas Irene, we've We've getting you out, good In are right. this gas on got at process, Matt. getting out. very got

goes price they can products. will call a kind for of say, are go able out get able becomes The solid been to Ranger Gregg Arrowhead we Twin and there. and and rock this do and will been on his Lakes Gregg Ridge and secure capacity then term. And has team and and hey it at firm? say, to about negotiation And firm Antelope yes. Krug's our discussion We And they've where marketing

wood on had getting knocking far here much of an that but So have issue not we done. Irene so

severely Mcf - flaring. the limiting we So, how we that's and are of number that

As company the about beautiful in hall E&P midstream which need says one the the the [indiscernible]. said stuff are San Joe And the Breaks on Wolf less waiting and company walks single-digit midstream being and interconnects get percent time that's X% is that were we that of things in just the than to earlier, Rustler other. to the we get and Mateo, to down business

Gregg Krug

is like add I'd Yes, Greg. And little this a to yes, bit.

may comes production It to back of curtailed. up been on had curtailed downstream far well. We've with when the only been from our As because as nothing markets. that just cut being timing have hooking It markets. any do to had never it we've

that. we really feel about good So,

Operator

And from our comes Tullis Securities. with next Richard One Capital question

is now open. line Your

Richard Tullis

do there. are Congrats landscape how bigger view this questions. very picture Joe and transactions already stock sit the three as all now? team, And it as Two industry larger How acquisition? you the as you and - tougher makes Eagle for now M&A at at we Matador, maybe a little seen to we on potentially of look deals. it nice a bigger mostly a those all to Ford should were rest a the But week if the do least the quarter I landscape and environment Joe? the you monetize easier E&P it view time, at same guess do We've chooses Haynesville? right

Joe Foran

we company question Matador first Five we Rustler public trust game. one of we way and question public - the a in with and about part EnLink or part XXXX. to has good we a us shown sold to we other. XXXX/XXXX. every in and talk realize principle sold sells Point. great plant day a Breaks to itself play We a another working guiding Richard Haynesville our way Chesapeake there straight in the We almost in sold of it's is for back are The processing that position that's our a it to our

the Delaware. the that wisdom right of has more is time in, serious to comes are multi-basin. important now. basin company serious and whatever most consideration. a as There strategy ourselves a are that basins companies going good are important. we're the being down talking So, reduce several leads see for we when But a options. now There not to to be shown going most diversification you we says several to themselves company can give are being single about basin is some it a in And Clearly, are really and that we said offer we're have to

to I If you the economics company midstream have makes same try that you or the so the much to are best game. think time, that would talk the more of it than buy matter best and sorry. sense JV them a know, is something that important to play always it - doesn't and to us. we're multi-basin; don't say, can to a At whatever basin so that's the is they me, So, and is. sense - our focus people or its in ready come with or trade we straight a I that they rock make as are whether want we gas get or feels to point into will what to whether asset and oil Usually primary single we an to us - they to said, -

Haynesville. with You burdened are

We we down to want will or you South don't PDP the have Texas. at to buy go here

buy stronger that's your on a strong Ford, So things. we trying to do you the cheap. to particularly has one That things sheet. of with that will sheet, buy it is have a that have have work, balance Eagle they're you and And won't company the you don't that when balance

play that, We pull full straight that, that, very here. to offer to open better on look to want we to we to the value are makes it's be everybody know open trade. when game a But trigger got it. in very And or will and we're sense, some but something

thing Now M&A would that goose. the second question we here I a of the the is hope how group that feel is answered I the transactions? is do first this your say golden And part about

Matador together. you of barrels know I work to methodology. return. from first years, a day how has XXX about delivered, to quarter XX% went forward. getting They the improvement or now to is I public, keep over are its better, continue iteration XX,XXX think as hope the developed straight hard as a and has second guys the don't barrels return we We've a These day in And we've been. and kill the XXth the can I either want industry that us a move rate consistency that long XX see has met and that gone these to beat consensus. continuing or day And this For one this consistently, see earn rate because better it's think where group delivered to to guys all since the because that they goose, and of generating golden

almost I - should all lower make naturally grown you higher return to So that's can return organically back rate of you a organically, generally closer do think XX%. we've virtually that organically, and of primarily and a when acquisition rate roll when you

sense what So done. I think made we've it's

our at profitable a principle outspend. spent at growth for. careful we've Matt, of measured the guys were pace. some a had that spending I But We very money. articulated want He about think is look outspend, guiding principle. guiding kind what And the we've we the it to grow. want

think value with know rig the yet, everybody we've goes up because one borrow full don't at here think and discipline, a and have of shareholders greatly business. double have I good gotten I we count. that's our got covered skis our from we It and But over good if outspend, really you benefited it XX% return, X% we looks when to don't or rate XX% get the X.XXX% rig financial at so get prospects. our

out to acreage want don't we tracks of but balance if chance bit So are operationally, and you tension it profitable. or presence another them And in bolt-on measured midstream them, And we come but that I takeaways, it every questioned, a now that interest, and there creating when along increase see our want it the you'll same we the have at why on like midstream. to be the improved - would your we do can grow, to as improved pace, you that people then, to help take said want opportunities are opportunities working it's that thing hedging. first don't never sheet, want that. to These did we doing and take you it watch financially, been it's kind you worked if

And it the and concept, is we when good growing public. I very so a view very, here that I have think Matador we size when done job in well been taken point think the from guys your all went

room got for You how still than were, years of delivering but but long I'm beginnings these remember of progress how looks making results. consistency will we in a like, encouraging lot it over our And it's returns. that know today very expected touching wood, now are better improvement humble we it last, don't four consistent steadily and with have on

improve. and the finding where know the but end explained, complete I to of to don't with keep just program. cost Our each finding is reducing as target, guys Maxcom are better ways ways better Matt like groups that of his ways to the

So that will group further rest the - can as make me supportive telling executive improvements plans I'll they and keep long case be my on we that. of as to David? they

David Lancaster

to it well I I do that Yes, add know think I to summarized you would anything that. Joe. have

landscape improve several week. we've think as I should done public the a M&A to difficult right. if I we obviously Joe you are will we company goes to look our seen are company we know and do is think for as We opportunities And far in offer I get and consider this said, of all but them it. we the officers transactions an just Richard all get those time. think But as

Richard Tullis

response it Appreciate you for leave your that's from will Thank Thank me. you. there. and and David that I Joe. all

Joe Foran

all thank thanks and Well, time that. you me giving for the say to

Operator

question McSpirit Our Instructions] next Markets. Capital comes Dan from with BMO [Operator

Your line is now open.

Dan McSpirit

little hit here I rate reinvestment hoping a could. just harder a we directly, the was could if little company's we on just more

there still explicit separate Will when company the its to is still laying very independents. lifecycle? in neutral growing able may can today. know be free a respect state guide? what Those of be themselves outspend remains out with field think given expected you crowded expectation in where cash to on flow its be an cash I sits an achieve free more flow should in capital a state this achieving Company the Or was generation the markets as producers that that's XXXX

Joe Foran

just outspend for it outspend. Dan, some didn't discussed it understand - the I'm And short then David be outspend over to to going isn't that something have results, is further do to we are vitally I'm it. whenever wouldn't you your this two variables is think opportunities. sheet; to going involved, what exceptional spending the getting But say relation are weren't in There tell detail. much turn to really real you outspend I'd you or I and how it's important is second, and getting out we balance if good for

flow. Having do ahead. slowdown. So and in right whatever we our got perhaps we've and are basis - very this now the that the right I about, about value. talk kind And we've as second, closing would talks of robust And are they And and fit free are point thing. that, as go on we is clearly, in think to so. decision a we think thing. would how on it doing very opportunities to the first then its outspend that want pleased cash won't some Board And you select made in. seen to is the a I'm that you question see grown really our said opportunities narrowing we we At is That's on really has the we've you've be

started $XXX,XXX. I get that are in aiming balance. to with better for things We But

to to this get to to grow this to I've had grow point. to outspend and point So

think can't I fast practice you've still got financial never in throw with like your can't So layoff capital you run and they people, and the very had who and be And would for to But the has long everybody just you you do to No around practiced And market on can't football But in on come same you two a time a what is that's up different in We've have XX the select this conservative. but styles. have got got basis. a know and ball have anybody all it's to be we to years. we different discipline. once. we that. that teams with if team something middle you the spend go money

basis So it's two a variables. very select it and is

turn So that he to David. it me over say how let him thinks. let with And

David Lancaster

Hi its David again. Dan

discuss XXXX we add I may Joe just about what after our guidance our first it. likely for of I summarizing job question the outspend. be XXXX. expect will your plans nice of Certainly with to we the a the when did might way and put we which of I have regard think in out year would

lifecycle. I that be regard an would comments in with we your about to there will outspend expect think XXXX

it think best or at yet in is next the a Company we to lifecycle, matter we of the of are are quite doesn't fact year. where our flow I we we do that cash itself of the scale could think But free the like still feel I lend model. the

to I particularly think choice and it the But terms couple I in going And that. year think make it done to of And a narrowing going certainly achieve side. BLM will on maybe we've recently be on I by I will we've we'd be that. be point every think E&P year of to that it we acquisition what because do might are if before able are years on. said we from earlier. that still acreage do next that of continued the some more little fourth in think out we will outspend quarter that That to into a can a going Joe things to get an big we again going the as also I the would difference will certainly see will matter to able in we is a after And out we I want in are the the years. next adding get of of year to on something are optimistic portfolio. the new be even that able get imagine

year midstream good I On outspend side. currently our We uses have cash think be money our those have the we additional we to decided within well flow again order value on spending that that in next from again investments to expand of created footprint that may for demonstrated operations decide little good have. we But and on could depending what been that shareholders. we've side, the that also to the a as bit midstream do

helps. So I that hope

Daniel McSpirit

David, up productivity it challenges more what in efficient or just well-rounded big is then are I a plateauing helps to It on of it or inflation does. beyond. just capital do; cost such whether periods And XXXX, appreciate I the answers. a putting as framing the variables? gains follow-up, other XXXX year, and

David Lancaster

get asking were Ask there. didn't Dan. again that quite you what I me

Daniel McSpirit

you next What cost capital see whether up year to it’s year, in side are just the production the that or efficient putting field? inflation productivity more plateauing a gains challenges of the on

David Lancaster

the am improve some XXXX a next our of BLM we although upon go not or as we we mix that fold only in of I actually And couple of a the think productivity perhaps hit I I profitability drill. continue footprint begin the certainly just mix optimistic think wells Certainly, pretty some by can mix in to you on longer our probably mix ways that them. into but this efficiency some acreage we year the latter part the and in capital that and that into with into laterals, to work of as existing can acreage improve.

of a manner. us, and being behind have our Rustler we well bit Breaks. back longer at to think done of still than spent we lot doing these getting results have able on Even little the lot was more more always acreage well drill a that XXXX, have - business. areas doing started with our laterals get it production. properties I we you our now and it the that us by and that's like next productivity of couple Dan fatten on And to and part of So last because capture way of look footprint that one-mile the best to a in in have go foot. held now we those years a you a I the focus laterals into of do the But just that efficient a lateral amount year pretty I to that declines allowed time feel and wells when in luxury fair certainly we've we've I as of this round per next But think the really at held

in We're we now, are get longer Sevens. up to the acreage. have plans X.X-mile consistently will we to put making two from When that drilling and Stebbins. doing the already laterals a rig laterals we on acreage be We BLM up Wolf year it at in and

years. to And so terms several to that pretty improving efficiency I things next over some forward look in think of we have capital the our positive actually

Daniel McSpirit

a you Superb. great gentlemen. Thank Appreciate it. Have day.

Joe Foran

we sign I'd acreage I you just for don't as David acquired capital from the XX,XXX XX,XXX saying more Dan or we that off, of asset brick-by-brick that. have recognized was appreciated acres adding average I $XX,XXX. as we is of whole our a is our always this acres what little these XXX,XXX strategy bought mentioned weighted realizing And that is is like base bit more efficiencies add a on cash before think last to that little than one that to year our base strategy brick-by-brick is - well

same that little costs make that The brick-by-brick there. add strategy we producers average or the bid we strongly country. for little up. acreage are those where average small because the this they the it one in So, we other rock efficient highly favors, out yes, in while have the big below transactions best BLM that weighted consider But brick-by-brick thing will gave the trade well also are weighted instance deal capital not a any

that of that mineral If but brick-by-brick $XXXXX XXXXX that the month, acre approach. position. you be our quite includes acquired guys XXXX-XXXX acres you've on an And a acquired can have end year the done acres to expensive, our XXXXX

fully but our been cash with of effort further and and same efficiencies either necessarily or working the So I of having operating on think efficiencies, midstream. us appreciated highly or carries kind thing then that's gotten a not kind efficient, That's by that that. has -

indirect an the your overall. line So adds improving that's to up it but of efficiency, bottom

one to kind guerrilla and speak call out that our getting of of campaign we or there getting it So way so another.

got to learn ways with the We prices remains us And additional in on to guys; Matador And challenge $XXXXXX the you and that so you show can look capital much which think you with don't drilling vendors because I work to that one I stepped we just create express efficiently. frac Forrester Schlumberger And and in more vendors and culture just is have or when pipe say is have to don't of to these really use you way. it in up coming we show they want to restrain capital do efficient cut of Billy they've you try perspective for services instead it. to to have appreciation to myself. start I or very that; in things I want or Champion's more Halliburton they've my stage want helped our And and how them. saying well ways is guys today. us helped a all us you've lower whether couldn't Patterson prices And had ways - your their us. to

Operator

next our comes Scialla And question with from Stifel. Mike

is now open. Your line

Mike Scialla

you I there? just all in is Can Ford. production now? go the drilling there Eagle the what And where if first on say that the where to a few like want you might half ask expect looks to wells XX questions of you XXXX? And inventory do

David Lancaster

drilled always drilled. Eagle then said, as we a parts part on have be still position the that the as and our we of in only lower far have tested I locations Ford mentioned the we've acreage only Ford. think we past into Eagle of can latter goes, the in as acreage course of we And still lower the think couple various Well part the on hundred

of which and Texas Austin worked acreage. upper operators haven't the Eagle we in some we have areas on so Ford our think other with prospective the And also South or that are the other tested down Chalk

could So higher. be that inventory

were production of As our past I - that we goes it this think production far the quarter. X% I about think was as

So about to Boe of it's think a a X,XXX X,XXX oil was day it I close think I barrels pretty day. and

double our of for would the a I that out from quite expect will get production program on on I Ford XX average in as to day on result this maybe this up So of X,XXX XXXX a this rates program But be early might We'd the that Eagle the With certainly get better. expect well even would that, think Boe I from better X,XXX up. they imagine probably little XX% don't we'd I project. probably not would our average. a

Mike Scialla

out net to you've Delaware? year this date number know Thanks number part your in there Joe, for handy it's average got XX,XXX XX,XXX on, David. acre - which is I have mentioned acquisition. for the acreage I in number BLM Delaware you added wanted Do I ask big acres a you you And wondered the a to for this per a of but believe the year's had just the if you've

Joe Foran

No, I don't Mike.

most done You just acquired. that number. have acreage overall into a acreage fair from But to the mineral, including factor some mineral at that was levels that amount we of other that lower BLN of

that been think and efficient a real for to us capital way I guys So our a grow. has good real done have job

Operator

with Tudor, And Pickering, our next question comes Holt. from Panjwani Sameer

line is now open. Your

Sameer Panjwani

things provide press So at how completed one color you that have on there quarter the there XY of watching the the wells is was release. are far? this in Is so for much we it been can Wolfcamp but test detail any looks Arrowhead. not It like looking

David Lancaster

that additional this not time. information at David. any its we provide say Sameer, I well on would prefer to that would

completed well - silent well. remain We that have work some would right and done we're now. I we until doing up in and area from on the have prefer land we drilled think just the And to that's results that that

got the on because I we of that gone. probably finishing just how satisfied on are with results. be get just would better of But done we to, a deals we we report think it it's work we've - So are before couple

Joe Foran

make you data seem try We thing we've you XX-day to so instant a tried One something. great can that data And change to of noticed it before would all people didn't a know. before little more give moved IPs getting to our as there we've wells come IP doing history to practice also - we out. saying probably like like little in be history more you a these

make just to that more I have positive, are we before area. we want confirming the we but we been more commit an capital So encouraged, and that, before be to today will results say announcement

Sameer Panjwani

being different flow operated a And intervals B? did anything which do or Wolfcamp initial you had by you've in on are Lake the Maybe operators there or D tested here Twin guys the the that versus of then interest? you've then any the the wells in outside non-op region

David Lancaster

helping I'm targeting, anyway it We the select the the the ago B took interval again, better been bit in some is in the anything to mean, have been hole first not but being this the - our on there additional frac of that With little did tested the of Olivine We This ESSO in zone over had and last targets. Culbertson. knowledge not I Strawn to did that mean, that might we would With in think there. regards run-up tried and best to and well. before. any aware Sameer. a experienced was worked us mechanical do in that there's I OBO by the for did question, have is that different, the the anything either to we'd number we answer to that David we the I previous proper, than or not what I B. that That tested, our I you've thought the historically only the D West proper. had even than the people Wolfcamp say area several and also we different But well. the years testing well to Wolfcamp for core well we a different also a has first out And is in one target think regards has the Continental that the

I think that happened. absolutely

results yet, to we much it it's lot just think about a back And on just treated of started talk we don't but soon. I better. well as and the should So whole have flowing fairly

Sameer Panjwani

that the different anything front well? on there completion Was on

David Lancaster

to want you Matt, clear over there.

Matt Hairford

what Matt. doing real are Sameer, terms of And in areas. this is outside nothing of significant other we in

looking sure all a along design things had good important went hole find in the well. target. we core it the deal we I was at, making the think did that and looking spent the David We completion way. that said time a most pretty target right they’re off of at And stayed that guys the

probably did coated stages production think haven't some drilled fracked other others actually well haven't better tail better resin the so I than actually and than end, of we the it’s of is some back. here We the we've the flowed sand early in on the the in area. sand we that pump drilled

So like to just still tell. little early a David it's said

Operator

Grampp Markets. our Capital from Northland next with And question comes Jeff

line Your is open. now

Jeff Grampp

- I will hopefully. I here that's a figure it one quick one leave at

to for there? Just likely to guys which Antelope any it Eagle facility-related of pad I up really when planning Or maybe accelerating the rig goes given think might is And any you building then are get where at Antelope buildouts stack positive, fair ahead be that's off as you need just there? there it at there type guys midstream or curious tests that continue are Ridge Ford that before that be over bias to anything well? the wraps results guess

Joe Foran

Antelope get we out it right more looks saltwater more that's have say, I’d like early, looks a there and data Well, having but little get The you And get question in to it process have a a - we same your point the disposal control. permits in beginning decision. more getting way But not to in. how one And changed is to entirely That's to is the certainly get a early yes Ridge things looks trouble. are the people in as quickly data little regulatory as declare that now too good. it that's is there's coming before to can we encouraging. that can all It's them, about you you them. a say of state very data, more out make victory, emerging of the the the

first to we can get we them them. So have drill before

vice come Antelope back the may drill that drill well and order disposal two, to or a exact then versa. or Antelope some so saltwater rig - go And Ridge, Ridge

the talked. in end up have drill planning and all that the and being all air all of the the at And has you your that's of gas Does answer But disposal first question? year we year oil So on effect something. they the of drill to saltwater part process. as your won't David that's at an tend because your equal, wells production. things the

David Lancaster

point thing going that, rigs - next we only just before I'm especially with for you the acquired. is certainly by area very the do I with And third rig to the to on - Bone that second I the pretty reported Spring, Antelope happy say Stebbins want the we at very testing last will well we've up wells going the Jeff back will Ridge I way say we to recent is to or the But wells that acreage excited it and are also BLM in recently XXX% quarter. would Arrowhead. long out. add compete additional that the it's we've results been seen we're while SST

an is period there do rig go terms can time. for acre So thousand strong team in nice a parked I the several well. area, as in just area of there a statement same of and we right block some it a having longer for right pretty I will good where fact have rig we vicinity the the that in given leaving area that that efficient that making laterals, say capital in drilling and think up is And another in

in is something So decision that rig we considering making well. are allocation seriously the as

Operator

is from Oppenheimer. Rezvan question next our And you. Thank with Tim

line now is open. Your

Tim Rezvan

so I'm hoping Thanks. I for guys. good you here. Twin color sorry all and Lakes some, was on I'm gave

Joe Foran

That's and from all like have come incentive. meeting some we've that is to gain we'll and in we'd been helping with taking guys breakfast the the or we'd invite and all dinner a adding staffers value make meet That's think you a your you here further and something touting young those a see open different us. who same by you really I and suits we or always to thank to of come see us and an in us by as Tim, all person. And questions. meeting and you like are person lot listeners these invitation difference you and really lunch or And of buy thing ways. in whatever

Operator

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

Joe Foran

see We'd to please better As get too. I said know you to come us. like

of words that you with you many again had. I'm So thank off. kind And for the

forward to as work continuing next quarter. are and you as ever to reporting We look just hard

Operator

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

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