Matador Resources (MTDR) 2 May 192019 Q1 Earnings call transcript

Company Profile

Participants

Mac Schmitz	Capital Markets Coordinator
Joe Foran	Chairman and CEO
Matt Hairford	President
David Lancaster	Executive Vice President and Chief Financial Officer
Craig Adams	Executive Vice President and Chief Operating Officer of Land, Legal and Administration
Billy Goodwin	Executive Vice President and Chief Operating Officer of Drilling, Completions and Production
Van Singleton	Executive Vice President of Land
Brad Robinson	Executive Vice President, Reservoir Engineering and Chief Technology Officer
Gregg Krug	Executive Vice President, Marketing and Midstream Strategy
Ned Frost	Vice President of Geoscience
Scott Hanold	RBC Capital Markets
Gabe Daoud	Cowen
Neal Dingmann	SunTrust
Tim Rezvan	Oppenheimer
Noel Parks	Coker & Palmer
John Freeman	Raymond James
Sameer Panjwani	Tudor, Pickering, Holt
Irene Haas	Imperial Capital
Richard Tullis	CapitalOne Securities

Call transcript

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Operator

Good morning, ladies and gentlemen. Welcome to the First Quarter 2019 Matador Resources Company Earnings Conference Call. My name is Dalen [ph], 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.

discussed call will recorded company's be May 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 [ph]. XXXX call. earnings everyone, for us thank Dalen Thanks, morning, for joining conference you Good Matador's quarter first

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

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

our to XXXX addition Investors a to remind on Mr. Joe? summarizing Foran, on find tab. highlights I'd presentation report like Joe first short earnings that to CEO. website Presentations the and the you and over call efficiency in Finally, Chairman I the like can page press under Events turn would everyone a our of the now earnings slide our release, our and quarter release, to capital

Joe Foran

are And Matador especially number Dallas today's And meet call. who had we have our invite the words and your in and the good today. to staffers, appreciate on to you each that line, in increasing and the like you come and reports we the young very to thank kind the for time especially see professionals us making morning of contributions Mac, complements. participating appreciate good much. everyone you, interest in of a of many Thank We the and us you for

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

And phase is as efforts financial want outlined We record many and emphasized team as and this capital field office, oil million the a million to barrels X into Matador members – gas barrels getting our field, of XXX We acknowledge amount over it staff the over where promising. out I of executive in exceeded approved yesterday, making is. back barrels -- been who delivered that leads the pleasing questions. One the the our this from a Matador made XX and is turn straight growing the we of working, ones the reserves to work. our staff mean, of forward if improve not oil questions. from me to to are and really as a a reserves I'm total contributions happy the guidance. our off for work to in is, our times, the public take As see its come point reserves capital before XXX to good like of very a had million XXXX operational of really met just at this in barrels And for it total the appreciate and that, effort, great of approved staff X.X but or start. seeing I moment, work to gas the and achievements. efficiencies your I going has take quarters comparable outlook And time just work their And to is I release hard equivalent, business a of also a With is dedication, earnings great efficiency already we’ve I’d And just issued is efforts three or oil have development. went hadn't that and teams personally done, all every which all again, enough their very operator. well to a

Operator

Instructions] [Operator Our go Capital sir. question Hanold first ahead. you, Thank Scott Markets. Please from comes from RBC

Scott Hanold

a stands Permian. is your the improving. out that capital seems be efficiency in of to It things bit One little the

I next can you looks things think quite you’ll some But Could think and are of and you’re to lining progression mean to doing no of like kind between give time, doing expanding and see your up. that to what lengths that into to talk year. this I some tension and all laterals same they some seeing losing you at us you’re expense? expanding year of the continue there bit that execute is It are of efficiency. kind the that? lateral on I a color

David Lancaster

on that was us by us was the we’ve we just initially Yes, to It start us that, trying than get thing to for in think, over aversion of I’ll of under our I XX% comments efficiencies. advantage an I about first the the longer reflected land may were over we laterals. put in mile prudent production a hi And one-mile out it's opportunities more prudent more is think out longer take little our capital explained next what And the begin laterals for teams a think these and the XX% longer we'll felt year, I our to to thing that to that year, more It's Matt our Scott. it, the year. lateral to resource company, given think to make at whereas held think for been certainly, XX% But executed But, get as for better us some of we’ve some with take the David. It’s a to I situation. do the we'll and together that it put could to real was had we year, laterals. past well like that as get for focus it past some well. that particulars to particularly Good we greater I shot -- it morning. last not -- also. very but just in a of this so want of

in I the not probably to ago XX%, And which acreage the flush added we because currently for think about as laterals. longer what some out two of go lease sales. BLM kind we're our just projecting seen continued than that that's little plans of months only to in about higher to XXXX. we is more opportunities the even we've talked We've

two-mile the also do now to laterals long. But we’re going mile drilling X.X knew all were routinely always Wolf that. here to We're to able mean we laterals Area area. in X.X going mile up Breaks Stebbins its to it's be the area. are begin asset Greater mile X all very in the drilling before in We're the Rustler the time more drilling asset across areas. laterals in the just We range I asset

And confident so clearly of our to least you're And I will I just to wells far XX% the about we going very that the vast majority to well. X I have by the done our in at that mile ability X.X up are it with, wells now very And the going be year, we think think to do start so popping over to in to area. get be this feel next gone we've all think we time X-mile. think, see

of very with better said we previous steering. our we're of kind we've targeting, as terms most to and of in -- We've inform that acreages days, think calls. feel over our using I in gotten now seismic confident we these

these important. particularly So farther with -- longer drill the we is we're the steer farther the steering, seismic I wells we think the the having think I

in the think wells terrific up. their all sort of to sacrifice to side, think actually that to the our reduce the size, drilling of marvelous be just rates get And in and of able costs And to faster. completion And a guys are of drill I some cleaned and profit the on want we terms our know, having have some in cases, have profit a making terms room little the cost you XX/X to even ability in. the and done stay in them that fluid really very As way out in terms job of links within making to size but the bigger doing volumes, job maximum is these wells really that terms a efficiency. I a these targeted completion we're MAXCOM daily not continuing difference to been and and we've of bright able in narrow intervals jobs ways, get stay the completed big guys

as on you I I really to the year. think And So that we're kick-in and I begin that the year unfolds, that think see we're next into -- right think path.

And so excited that we're path we're on quite here. about the

Joe Foran

more our And along. and was in. dollars XXX% on thing, much drill more you improve look thousands area want to increase looks doing recycled even It jumped two-mile laterals of to Matt, is group. other and another to Matt? innovative forward them as also before doing that. the goes the with think did just year That more frac we that I be their more. and saved One They efficient. completion like likely of to promising appreciate I opportunity careful water, hundreds which first to comment

Matt Hairford

jump I’ll here in Yes, too.

even XXX% think The of example, on were efficiency. capital On We top more wells, We of the we zipper-frac's. did efficiencies as in drilling, the And Posner down towards very is into I water. achieved program things. David recycle used as longer putting laterals. the and here our Joe batch one drill longer said we’re Joe of were an so that that our is just we’re moving laterals in about the already getting more have Howard They Wolf. kind and we’ve excited combining said, sand. basin all things of and different what guys, capital the hit

So very, XX% better it that. we’re because think for for to way efficient the price very we it -- And companies get the that and works too. little service we was laterals That Billy's it’s do us, efficient, longer works a to here we do We to future. for talking a preparation us want about. and more David a be the continue get still in I thunder for will And in that.

happy very of Patterson. in have improve them and very, hand with the working rigs. hand with we’re And in to We’re rigs efficiencies partnership even we with those

third in a with additional well additional torque, So form longer the month laterals, about. horsepower hydraulic capabilities maybe as pump the with talked higher as the we’ve higher top of horsepower rotating guys, as

We’re talking with can faster. guys these about Patterson go really making so those even improvements,

Joe Foran

the last website, capital Scott, overwhelming you. our night, And the we’re know earnings have release we I maybe and in But, efficiency.

encourage we’re thousand that tells costs. show at the you couple how It efficiency. to a driving look growing would a take have words. say picture a really And of a slides down capital that, We people

number to direction. the going laterals longer the right in steps increasing taking things We’re of and keep other

Scott Hanold

below of some that, two like I should sounds to And see puts get you it this are starting know you to and through year? could your budget continue have all budget quarter. to keep I better. add as the and some XX% quarters? Can those but Can over that were your and to in savings are takes little progresses the you below we expect you what we a three savings through, talk So there next good the bit sustainable know

Joe Foran

working go sand, we’re a before. up your with – we’ll you a lot a them your mentioned it said Yes, are next further and the recycle better But continue like We from equipment down, basin faster, quarter drilling give we on believe and areas, those facilities, percentage the and wait is to there to in of report. raise But central water, market achieving zipper-frac's, capital don’t improvement improving but till the We is that on. things the areas they drilling, rig, think seeking. mentioned those we’d -- of batch we’ve capital we promise are on efficiencies is think the improving I all showing likely have that. to Scott, the capital that sustainable costs the and specific the to that ready number not that improve what more and

Operator

Thank you.

Our next Gabe question Cowen. go from Daoud Please comes ahead. from

Gabe Daoud

I you update. if hit San a just gears just curious Mateo. Nice maybe on capital and little efficiency was guys can switch

EBITDA I think significantly around the run lower of rate million, curious the bit through stuff rest number, would full think from that a hit year of $XX you on basis be here XQ that year. a to little just that kind if

of Just wondering, again, helpful? color any would kind there be

David Lancaster

Gabe, Hi, about I this we in year, San calls surprisingly expectations it with I that of modeled the on at right actually sort million Well, in previous well we've estimated a have it's first EBITDA got for this for ramp. kind pretty guidance, line as midpoint have have Mateo Mateo. we what said of for we the And quarter our think David. $XX was of were. think that our San Not

think projections for think of Mateo, pick of like that first we I during will comfortable both and continue third-party to Matador's see are quarter as and line. the what through been up we the felt that production in you still course have the year. year So the kind with very And I improve volumes was San rather our

So line the really of San were what guess top we in came was right I Mateo on expecting. bottom

was I good it we So think thought a quarter.

Gabe Daoud

or like front, just asset just the Mateo then potentially an any San a you us on the update And on X updates Eagle and give just Haynesville, there? remaining maybe initiatives Ford, follow-up what's there sale can

David Lancaster

Sure.

think to we're progress will really that quite for continue with optimistic the so and that as I pleased the made goes year progress that we we've make on.

that more of time Eagle has Haynesville been I assets like intention in out that assets certainly across think we little in offsetting we the interested that's those people at where in have, and areas. Ford primarily that that are we be. know success number interested the the have we've pieces the a maybe kind are there operators anyone there a is probably the said But in assets there our concerned those would don’t selling off that may we are felt that often there that that and the because of play we know particular assets,

to their that that Ford properties. And teams we've the we're expressed so think some interest. are still that get and our number Filbert about inquires I we -- of are Jon encouraged the and by with Eagle constant in continuing Van the know have of I communications folks that

said will to I'm if will. the so, business think to And we but we that do Joe this we're But we up not make quote, that release, going I come it as to we optimistic transactions and acceptable give in we earnings deals, that. away. certainly as satisfactory can, -- continue with continuing to And we're can in look optimistic

Joe Foran

mean, tried fertile remains still doing. of that operators I the interest make guess in other I and in they feel as units, with area area our we're an transaction. that another both trades the that to good have have units about. we these active area improves their sides been win-win a Gabe, and for deal they And interest that very of that's us for that we and

Our transactions also mineral have good. been

oil hope -- bits easier. deal time very add we to active is I of dollars, the - anytime continue -- of think -- that so deal, X,XXX and in that our up a several that minerals, of minerals and growing. you And two thirds the pieces BOE so off some encouraged. it been brought they party Of you seems that that have about barrels to leased We’re next oil. millions we've currently X,XXX of have we and it's has do The will

a and So those the year are of number as works that hope goes the in along. we to increase Matt?

Matt Hairford

to up underscore what Yes. your capital These started are a how I drill relates times, lot want for comment to it set to there of us just to longer you efficiency. laterals. with able trades, be and

Van these team you're making mile by lateral John the X X.X job nice and that and have just trades potentials a And and about. in converting talking done to mile so, one-mile really

Operator

Thank from you. next Dingmann SunTrust. comes from go Please question Our [Operator Neal ahead. Instructions]

Neal Dingmann

giving me brief. keep to that mine sir Yes, try I'll warning Joe,

Joe Foran

all be – and a it's appreciate tuned like choice you into. a airline we know know have We have and say. And all we you choice to

Neal Dingmann

really to these quandary obviously It’s if sort to in run question cut you My you the really do about your far what’s is efficiencies. how what the you thoughts ahead, Would earlier nice think activity and talked about are based you running efficiencies. down? you have. of so a ahead just spending that, Or it? guys notably And And on continue of ahead. keep

most going You and the more that there. cetera of guys CapEx be in than simply you case, et activity continues wondering if out at running how the about to think ahead I’m the just for end year?

Joe Foran

a that’s what's and great and those a what shareholders where creates that’s that the value question best approach from other focused Neal, for we’re lot question discussing what’s is one we best values. on in share our

thing So value and the needle in thinking also of the thread what and and us. do opportunity to opportunity we’re the being is say set to the look but without money trying will increasing more and that And, overspending. we what selective do about second, the at first for

working the current ready tracks best, so the in so interest can opportunities where or And take in your never like we are comes probably, drill, buy won't because you this. get you at priority it, you if available don't trade units, ever see will work sort. it some up at Those where assets acreage, that our acreage about that we’re that to we acquiring was our bolster

do not. So you’ve got or to it either

a don't the to related trends. prospect just told trends. that we’ve that in the think And value and included, helped time. the sort. just we the to in we gap acreage in buy practices and we’re creating achieve this then quarter. We’re over It's in of be to to more And And to you pursuing it narrow some same pursue way, us determined selective quarter this achieve do we market, just -- pragmatic that balancing got that

more do We follow Ford. dropped said parts continue in It's just We do Eagle like we of Haynesville we and to we be capital saw and and importantly, the And did rig selective and in have. and efficiency, the we perhaps we think our to the improve ways that have. they we that, do, we that we in what have, most Eagle And say. we'd what and said said selling and set. we we that the Ford, have. We right we

validated and held more so get we miles, acreage have by convert time leverage and into one-mile to First two the you production, those and have.

and the year, I units in about threading around that exactly advantage want think, sustainable. either the through it's two continue to And not believe it's right we're situation say going things. myself we’ll But discussions areas acreage but do And I to how we and we this and quarter, to miles. or corner acquire doing a we're, first think I to special to in the needle of are, one can convert take do don't lively here it mile that. done, getting paint where we to So

we're a that but on very very it that last that that these gotten see to we're And -- do You And growth. a growth, you in earnings for just did. is just our not outstand be pleased this of issues shareholders guys answer finally, your a I and had sometime what we we I lot closely. terms money think monitoring quarter. question? hope increase. you're everything we that, production an of that earnings that And year, but doubled but going this to finally, Does in of little and have value profitable spend had value we've

Neal Dingmann

Matador? you It filling And X and you look, love then great are if to your ownership. my follow-up, all great all all buy Joe, to cheap, And second and Facebook stock more some Slide My your Tesla to I answer. continues question, my in Joe, was did. that this your here on their stock thoughts, keep guys -- be that going selling a just encouraged

Joe Foran

good I Tesla. hope has chance our staff not [Laughs] enough to buy

Matt Hairford

electric many in the garage. not There’s cars

Joe Foran

over have and a great directors barrels comment it's to and share noticed, the move board And barrels. nobody want staff. XXX from and we X shares, a do staff the the among staff you’ve I held when in think buyers. our million opportunity been sell we as any million Nobody's hold you six executive years of of

value. in believe grown is, of lot we our think business. we've evidently And acreage I right the basin and is in best what one XXX,XXX country. change that's achievement. And of acres, position That's best other the to that I our the think a of companies and great believe the

this point But a ignore of value. that guys and we great we it's I It's by our lot some acknowledge think already. we've carrier great opportunities. life tell think to -- cycle we last flow be clear add towards how other over to you're we have it this be them, turned the set. a the don’t have hear that increasing is free and And moving sure few market, them the at we years, And and our want I addressing up want cash will I because year, are doing there. are. made just in next opportunity progress

ones appreciate lay-off. can who and had So it. save I've because new a our that I they XX years, never shareholders appreciated

people So let and years go. had been financially good in call we've never We in XX the to to point. them disciplined

So neighbors, through XX but financial We care through, market lot practice year and you we it, $XXX,XXX billion instance, a cap. that private not started assure financial coming record, discipline with to for discipline. $X.X can up about equity, I

that itself, individual we a in damage for achieve good way to the doesn’t are of path speaks on And and value care a share. hopefully we about we road but it. the is feel Matador think I it

of focus spent we've it. a lot So on

been standard. look the last you to I business think flow free -- And steady has cash the achieving the quarters, plan is over the methodical if I and few good.

Operator

Rezvan question ahead. go Our Oppenheimer. of Please comes from next Tim

Tim Rezvan

Gabe, some lines. on hit

I you. one for just So have

in strong on Antelope laterals. and well mentioned You IPs results Ridge foot the Charles Ling pad, XX-hour X,XXX the very

area have you horizon If that mentioned the understand well. an people pretty You drilled in and simultaneously. completed

I we to if going any the pad pad move about can as you of or this forward, drilling to state especially could that think just was kind of So on purpose you line learning applying talk kind wonder you what at how the area? all

Matt Hairford

Yes, to you at And, is just morning. to we've do time I about into here be Tim, -- been it. same to do It's think this kind able way a Matt. detailed of this what talking these efficient all very the four is wells

I are nice. good think are the very wells. well results They very

them We they expected to are. be, and

One that of We touched food barrels foot. pumped profit XX we've amount same. bit wells, these per increased gone so things on just actually kept the the the other we've the on of about is upwards that little we've we of

So just us efficiency. try to a really things to it was nice for different all number relate of that

Tim Rezvan

pad? have you say just rigs different Did on unique simultaneously. follow-up completed that fracs? to and that is drilled you and And multiple And plan a just

Joe Foran

Just zipper-fracs, at Tim. done all they were rig, with one one well

Operator

next comes Noel ahead. Parks Palmer. & Coker go Please from from Our question

Noel Parks

that to talked in X-year now and inventory opposed is about of lengths, the let's we’re to that footprint either the mentioned, that through over on to year, on expand your progress trade-offs or making lot on productivity or as inventory right you're the the inventory Well, focus and as formations different the in When threading the you’ve looking adding terms given you at spending. more needle wells that growth across a strategically, say fair is ways the within on, next of location? total that the say, lateral

David Lancaster

Hi, Noel, it’s David.

excellent of will staff little targets staff, but exploration bit in always I we goescience often of I identifying terms want that think test. does, and new an a be targets think our it both, job to

results. drilled an First talking around that think, have we’ve over a two a we thinking drilled basin, probably about. those just think past quite were years pleased not think, of Spring Bone I ago I those in I the have the number places target year, I with wells example, and or various been side, And as that a that’s much and

I identifying and I look frequently new continue zones, that to targets that So think know new like staff after. to for Ned we’ll that would are they -- go the

just more saying. we that the focused batch on to and efforts be balance drillings certainly, as and going we’re kind to development longer think been with And that have development, of try we we’ve in I place. laterals very

multi-well don’t a so to in little a still strong see what And clearly more – mix next? back that batches. this -- development I you. through we go only I And guess, answer it? have of we’re as become more I'll apparent but your and will that lose on think into Did Operator, that longer we we’ll I exploration we continue year laterals, bit it get doing, or did to focus in turn

Operator

Please go Our next question Raymond ahead. comes from from James. John Freeman

John Freeman

XQ? by that did where sand. that And anticipate XX% drivers the do lower to the noted the utilizing Where of well in Delaware about impart in of end? – know were One I you you year one that that of in regional use in basin XQ main completions costs your being sort increased the sand the quarter of of of was due the sand.

Matt Hairford

Matt. this John, is

basin are XXX% towards in We more the QX, sand, moving basin in more of just and fact in about sand. those were in wells

changes. we’ve make methodical it’s past, So things in we very about the way how as are we do talked the

but we going happy very so formation formations. through And as two seeing basin the a of so it looking we’re methodical, we’re be and can with may in will in -- the talked that sand very things we at look said be about far. the we've I continue all still into we’re gone most at comfortable to past and getting and or There these results we're processes Like the future. the

Joe Foran

study, any Matt, you’ve in it in increasingly comfortable particular, any a while zone-by-zone make isn't of there on getting it. degradation your that but sure monitoring Yes, we're those. or degradation there's done we're no still And advantage, methodical there's just class

Matt Hairford

we'll to and won't XX-days, it for to continue not, IPs, difference any don't continue for Joe the things make degradation, John. And but which make these things-- talked XX-days, we about, sure don't that have we’ll the see it. to really these years monitor, Right, watch probably we

John Freeman

my want thinking sure to the right I'm question, make way. just production guidance then And that second the I follow-up about natural just gas quarter

sort which declines say to gas sort Like, So that then from due X% any the just the quantify guidance? the built moment. to is dynamic normal is much of of and expected gas you'll is of X% into there in that how is due Is the sort of to given production some much larger shut-ins price partly due possible how shut-ins? than the decrease, at possible way QX, to that to

David Lancaster

Yes, it's just know John. how don't and I sort of of David. half thing. that know up I wrapped I much my is, half it head kind that think maybe that Hi,

I we wells producing like was I traditionally of B, in recall big lateral number our at gas part a the was David expected a gas are it we of had And the if is Wolfcamp out Edelstein higher Rustler well, correctly. zone, in which first Break. called production that that at which in wells that higher came the than think fairly quarter that X-mile

to its it million XX in earliest day. a that think XX making I was days,

couple then the Howard out of a of And clearly our just Grove exceeded of of was terms rates. set gas drilled contributor in Elm we're have they Wolf contributed nice to in nice really it flow we really Chesapeake called that a that that, of operates our that. did wells not and wells couple op report that their Posner the So to really at wells early expectations part we asset in that Haynesville a the

off. trend will things those So

here in I second schedule of the recall, on much in have completion the kind B of As quarter. way the Wolfcamp we any don't

in LA those wells. So be had a very one and are because these to our predominately additional an quarter the kind We already We good, spikes the And XX% We we area Chesapeake and gas again happens scheduled second have will wells, year interest reasons. from time there's us part drilled I the also will working to actually it this gas fourth of time. two that by the we to area wells. year. expect natural And see those in quarter wells about very, production. into have of third expect XX%, call be quarter last wildlife we'll where we late that non-op in in same think for

I third days So the I higher fourth wells the again we quarters. regards temporary GOR did I And our think temporary be up think correct back with And that on shut-ins, the you'll we're it flowing. we a that a now that and all situation. have temporarily where basis. two that few see some shut-in. there just wells of or that are shut-in of one still back are believe in monitoring spikes to did April that But and in saying sort I'm in might

are anything it's to, quarter prices gas the keep production. I if impact to -- see in best plan to our we they that our might well second how don't pretty than we different wells just on that trying would doing think But, just we now right do we estimate producing. were

Joe Foran

yes, the on job. XX% our has Belvieu And done the about factors, who good takeaway BP, uplift was and gases uplift, an gas is They've get were a they're we responsible from of that we our Waha. that the our that other I processing of then process Ford, situation and Haynesville from to Eagle came processed plant, is for and saying. and agree that transportation one, of the XX% you was; with the mitigate as taken David when Mont have NGLs fractionization. of in NGLs. a And couple with everything John, which second by couple have gas But factors unaffected that the

So that got mitigated But the other the day-to-day. it's we've but not we of primarily because effect mitigations processing us, a those and flaring, and are going. have factors helped have

we'll -- Gulf in the Express. participate Coast belong also We

vast the be Eagle be So have our by October, Coast Express or the and either Ford of majority in Gulf the firm transportation. Haynesville where on we gas would the and pipeline on

David Lancaster

that talking time Joe the It's as was about for with residue not fractionation business transportation NGL a but too process capacity nice the capacity the midstream the and well. to as is have the only

to thing So have. very nice us it's a for

Operator

Thank you.

from go from ahead. Holt. next Pickering, Our Sameer question comes Tudor, Panjwani Please

Sameer Panjwani

key fair development a length X.X land So mile And possible larger opportunity it Is the quantify projects? laterals on you X now is assume laterals? extending shift first off of to to as the side to for to of set you goal things. is that existing the it for lateral team

David Lancaster

of partners the proposals and have are goal it's we X it's I to of forward. think a asset as XX% our for had there I anything lateral in next or the I'm think I about few. we them at But quarter that is and is laterals. XXXX, could get that going teams out February, we And to confident there. a estimating the greater take the land think Obviously, not -- XX% to the of had year. has call question. when a a absolutely are talked the as that certainly teams, mile anymore were mile Yes, of than pace. land many decreasing make schedule, out think the laterals XXXX there we about can we part in in to be department our single sure last us rapid certainly It made perspective try many say of to estimated XX% can XX% we're still we that to dare we've department we well as into past I X.X just efforts every the look mile sending that would that I that this and

several every I months. approaching make wells to that progress But these that teams last the the are to can So confident in we've just opportunity even that very able laterals. longer am been they

Sameer Panjwani

X.X of And question, on laterals? to one existing mile the of the opportunity part first set X the of the

David Lancaster

sure to entirely or Can by more trying at what not be you’re specific asking that. mean you there? you a I'm what's Well, little

Sameer Panjwani

going how X,XXX in guess average that’s wells sits to How when position sustainable I’m acreage is Well, have I many lateral today? lateral you do your trying in understand forward. foot that at think over your you inventory

David Lancaster

just to Well, that being so specific. I think --

X,XXX guess X our I in that something clear X,XXX, wells that we have been or based that lateral we’ve estimates. on gross all inventory, was of that effect so X,XXX mile past net or think in I the it is our in

we’ve to one but time many lateral, plan that’s we’ve at extending into to maybe the mile those us try a of as that other those and of make intend I units think more laterals, those look to go the as we longer And all sometimes being locations, to zone ones that would combining But luxury come different locations into of our think mentioned X more so single together held over by convert and couple putting for existing it mile and those that is our a of acreage a years. as maybe production drill of sometimes back a that lateral. given it in before -- for of in laterals got back two zones into I X mile

And improve and this months we for be not to will even able us we’ll as so I pan, forward something that be going XX on sustain go or just going think will year perhaps on that forward. one the guess be that of flash after sustainable the its’ that life not be it I to

Matt Hairford

laterals David mile saying are mile or there, and more. Just a these two to that tag on wells lot a of half now or what

one job done in The first New mile are, of this the the team mile X.X half sections the and where to fantastic two you've say now your mile got is works has in a X direction typically so those and to they one. the moving let's is way there Mexico. one laterals. two And to And get a hardest combining

get addressed you agreement in in usually trade to advantage team. done which come once already back and subsequent you a or or regard So formation wells, operating drill they're joint that by in

to So forward it's move faster. easy them

Joe Foran

while sustainability. Sameer, this there is one still other is thing on you’re

and Street been have each reasons companies of of article mile them commended that’s And in XX sustainability closer our for when we one always or that that the fact some that the runs as have were mile were in the XXX X.X in we whose what naming us, or people fact and part on mile. gotten other were X projections. locations, do the is a we We that a protection, deep The into -- laterals that acres. we few of parallel to convert spacing concerned one the was result exceeded potential some under didn’t the to spacing our actual spacing didn’t will production main Wall original that

lease X And mile working program you so have fashion, MAXCOM also so on lease number acreage convert ability at that again, and been not where sustainability having the you but property sustainability more. ability itself staying All laterals, some And to convert up trades acreage the curves, of lends curve can laterals mile and buying that the is and X.X miles. So and by zone the in of pool the one to and to or better force then stay the mile in X into additional have zone only by have we’ve you X reserves adjourning line acquisitions curve, pickup don't well. two you to line. pick the in

trying chances, to say is So, going like that that, our on chances and to continue I'm our what I like steady forward. is we're making progress

David Lancaster

comment, that are horizons some it last that locations could returns make actually to we actually some that maybe that the And in laterals because lateral. areas number at the the just one find Sameer. increase, just better can I'll may that that we quick if skinny fact little longer one a And mile have is get maybe of much

be that'll visit we there So will that well. as something

Sameer Panjwani

to you quarters, wells. got these I XY question, The second be update Wolfcamp Arrowhead my For guys Ranger at But the we've active on specifically. testing. past the zones think an and in over continue don't few

talked work land you've that's been about previously, outstanding. some think I

completing we that you of how on the to So sense just close to are can color land trying before get more get some work a results.

David Lancaster

pretty now. close say I'd

we're things at working near on and I think been planned been at to drilling got we've to the that that certainly, together. trades future. back least that well and various for we've So very Wolfcamp think we've pretty all another the And close getting sevens, put here I

bit I -- a a before a Sameer. it. it's know think about about I there's to of don't long so be it'll And talk little I lot think that, more curiosity able

Sameer Panjwani

guess? is good call a quarters' next So

David Lancaster

don't want comment for and probably I say -- on cry to Well, two ever there wolf I the want already. I months don't

will. So that I'll a let me deal? I How's as tell soon just as say they you, for

Sameer Panjwani

a to had take I shot. Well,

it. So, appreciate

Operator

Thank you.

Our Please Capital. next Imperial Irene ahead. Haas question comes from from go

Irene Haas

cadence, the growing oil oil XX% XXXX sure. on earlier make at production gas XX%? the and to follow at just still good want growing A to question up with Is guidance

David Lancaster

Irene, updates this for our we any guidance didn't to make quarter.

So I a think that's you assume that yes. can

a still that the But for for first year So We've only any us what quarter to bit feel didn't -- was than we been of we like we out a didn't looks to too early good pretty it thought. with little in guess. couple I it's us. make And just -- better months, changes.

Irene Haas

drilling state line really second the that nice you start guys area. question, would land? When And central

David Lancaster

we're to plan had that. our there And task as out first we do plan right of around our release right Well, about when now was on and to activity on XXXX. talked begin we guidance be to put able the

onsite feel permits those the submitted the to they're to BLM. have attracting of now board the of visits teams We start go properties, Ridge, all like with BLM. our laid some what first hoping We that to able like We've how this we the and Western of Antelope fall forward on with saying out also. drilling for have with to with be had approval the would we're terms in which on development

case, I be Xst there on hopefully, we'll And if be to appears year. the think of the the by that's drilling Irene. track, everything

Irene Haas

would And all guys you may time and close on completing? set-up follow-up presumably if I that start have your infrastructure that

David Lancaster

think the side. western certainly And plan expect there, on side the is. that's would one run two one I rigs Well, to on said have our we what and eastern we

side, eastern mile the X laterals. On planning we're

take least on all to each we're planning will course, take begin laterals. us get -- going months at five, it with that several us even it X.X to mile pad, On to we four the done. of will and western are And wells those drill side, so perhaps

those think you sometime see So until XXXX. in first I production from quarter expect would the third to pads of probably

Rustler be then, and the state there and the to from Breaks we course Black roads down will So and up be line and large to And area, certainly, place. the a all and the facilities processing between we'll the down pipes, that extending River in line getting now acreage. of plant truck

team soon be by his be that gas back is that build starting those we of the and finished the will that on flowing Spicer to to Matt the to So are XXXX. and plant wells on as as track summer turn new

that. And moving be the hopefully call about So third I we'll think time all plan. talking all conference those on we're are doing XXXX together the by things or in second quarter

Operator

you. Thank

Our comes question Please last from Tullis Richard Capital from go One Securities. ahead.

Richard Tullis

line I suddenly own We've operator guess to already some state start Spring some border solid Matt. and drilling that including be recently reported area. second question Eddy Matt, But heard operator, the offset your off planned Bone know to has with in area? really Bone that Matador anything Spring in from wells. that the you And you to county might down from use drilled I pick-up that have able wells, been able strong second operations,

Matt Hairford

just look results, one of looks learn we stuff. are good all and doing. not things proposals, non-op how that’s to that a the And non-op they well try stuff maybe doing, continues Richard, this evolve. the We we But We've the It's at at so focus stuff at look will all good got are that on. all of from what team people that. to the of

the guys with is. they producing where together, of, is along do of team his out what the and wells steered, these look what --Ned we completions what are, that things the results zones artificial how of One the are are are type put MAXCOM

So of as talking people about stuff, insight just like of into we making. public well number things partners, non-op and are understanding about lot the at looking as have a that there to how a you and thinking things folks are is

a actively and very lot progress other lot with on identifying of a success his One doing seismic and of really that Ned? Ned We've the the of targets, to things in XD team seismic. are those. had steering XD making work continuing is

Ned Frost

we’re own ring results relate rock exactly are Antelope And the that in Ridge. think the in that. on follow that and I’ll doing wellbore and learning completions they’re operators places handing then accelerate our our able great XD curve. to that. able I accelerating see it helping guys been to targeted seismic off for and were the great offset the The mean, a mean I on with wells I right beneficial targeting rock you and recent like the to acreage. that’s on a really And is and job see very to being that’s what

it’s on all here. cylinders So firing really

that operators to looking back and our So are offset at own we are acreage. relate to trying definitely

Richard Tullis

maybe closer Delaware play. Joe, then picture out And Basin as lastly close Matador just to pure just moves call, a the big to for, question

a operationally, landscape Just see on going company forward Joe, want do risk the size very larger companies to for Delaware be in and a large competitive execute view up the going you medium to get with small your playing role. significantly forward? ramping activity consistently and any able the to

Joe Foran

first you, into that’s giving Exxon the basin with Thank Richard I And oil and asking thing you’re and think those us and -- and really very is on I a other process. ramp bullish first thoughtful question. is appreciate the bigger Chevron it companies

capture. in thought really what be at there the they I the we’ve that losing always Basin wouldn’t it basin think country. is best didn’t in if good Delaware They level was reaffirms think the that Second, it

at And year the and a job out in companies They’re and more we we're production vendors makes I in like I dedicate some I XX have don’t that to where history just to great and want relationship us them a predecessors going drill diversity acres or clientele our say, everything they've six discussed they enhances rigs lot downs size that and their for here they out with this it have too. have seven their drilled. ex-owner been those that and So Patterson through well long in is I nearly come we’ve every internally that much XXX,XXX there is they’re to doing see that Chevron, think Those think or a valuable. and our and there. ups

where or in as it other going much they'd as that vendors think to The that basin it the because like other much not to is. in that’s move, also I be that are as yet are the thing business means

put and yes, those different going their want business look to to like among some Exxon their basket, business. Chevron don’t pick vendors ours. Chevron's of So, up business spread they’re ace of to companies other want going Exxon and to one in and all But vendors to going they’re from

in say is projects thing construction better on have a going just than a to So, this cities no you’re I’d like lot of projects. construction off good

So of a that bring and really facilitates, lot in the workers and of I think lot progress a innovation.

you’re out if is in that I year you it spot And more XX more pretty say long think in good more labor in good really I'd take for in crews, help to there the advantage positive. frac services. And and they that good So drillers, competitions services. actually more run in is you pretty will a a and the know top good have there field

worry me. doesn't it So

and us say and Exxon between of compete guys Chevron. competition it's Our lot, a different but time a

drilling faster. money. it track of is like recycling we're innovating fast we’re custom homes, a quicker building drilling, where both guys we're more faster Our the these for wells but They're And are builder job. still both being home. doing more we're bunch we're after and we’re well doing somewhat and into water. to try a less it We're practice custom and -- and every every their after to turn completion manufacturing But

think don't innovate than rate change theirs. our we're to change that just of doing. advantage I anything not after every have the we're and they're doing We able and So that well is higher

I negative impact. positive. a it’s think seen I any haven't you, Matt? So Have

Matt Hairford

you're agree with what saying, I Joe.

you're nobody with work their anything, qualified if to and it think basket, that to but with right I bill. And do wants want eggs the in they think one I partner that really put service fit helps a companies. all we

Patterson one, we over work think being have now. relationships frac got I Halliburton our our established that right years, partners with another, the

think I enjoy working they us. with

table I they the that think continue. think innovation enjoy will we that I to the and bring

it a I So positive. more see as

Joe Foran

there. Billy is operations our head Billy? of

Billy Goodwin

mean attention do. with anyone each made And the and We're us, of lot best not waiting else doing. is our and geology things out stay We the there what in and together motors. good. people scientists really go develop the new help that for everybody's getting and the good a seismic working lead the there. and or bring to new together more working and guys design us with other new we what the and to That's come that for pay hopefully technology. to all We're do each other out to agree. all into And meet having doing got getting I in, group bids us. way help and tell I No, in all majors we're

Operator

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

Matt Hairford

capital to help their a hopefully I for forward our time other you on your that yet and again the now come see thoughtful nearing spending right meet and good have want that path their really time the We’ll Thank see thank and time, give thoughtful more will longer everybody production same to moving of you much. laterals sincerely time to I with to very We efficient you building up projects. invite We inventory thought interest. the want I it. depths answer your want make visits the and we're questions. those growth towards and to appreciate and you us any attention we're emphasize staff worth we'll for, the of And it specific you to and and questions. welcome gap, really

either or been it. sharing And continue conferences. progress with far. to details want look you at We it's here enhance to forward a our So so to good plan of

we're so will anytime doing. come we see and complete or And sure get feel us, to of get make free please David together call what review you a and

again. So next And to visit. you. look Good to thanks to talk forward our

Operator

today's program. This Thank for you, gentlemen, ladies concludes attending the conference. and

may day. disconnect. all Good You

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