Matador Resources (MTDR) 1 Aug 192019 Q2 Earnings call transcript

Company Profile

Participants

Mac Schmitz	Capital Markets Coordinator
Joe Foran	Chairman and CEO
David Lancaster	EVP and Chief Financial Officer
Matt Hairford	President
Brad Robinson	EVP, Reservoir Engineering and Chief Technology Officer
Billy Goodwin	EVP and Chief Operating Officer of Drilling, Completions and Production
Scott Hanold	RBC Capital Markets
John Freeman	Raymond James
Neal Dingmann	SunTrust
Sameer Panjwani	Tudor, Pickering, Holt
Irene Haas	Imperial Capital
Tim Rezvan	Oppenheimer
Gabe Daoud	Cowen

Call transcript

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Operator

Good morning ladies and gentlemen. Welcome to the Second Quarter 2019 Matador Resources Company Earnings Conference Call. My name is Sheeree and I'll be serving as your 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 conference will recorded company's be August 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

like now call the Capital turn Mac Schmitz, you over Matador. Coordinator for to Mr. Mr. may Schmitz, would I to Markets proceed.

Mac Schmitz

everyone. XXXX joining us second quarter earnings Thank call. for you, for you Sheeree. And thank Good conference morning, Matador's

regularly measures by will performance. reference certain in Some the Matador of the measuring financial Resources presenters today non-GAAP used company's financial

measures non-GAAP in at Reconciliations measures company's of such financial of end with with earnings contained comparable are financial release. calculated GAAP press the accordance the

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

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

earnings our to earnings on like short Finally, Presentations and can Investor our tab. presentation on the a Relations to highlights call that press on XXXX our release, you find I in slide the the Events summarizing remind second addition quarter everyone of would the website, release page under

turn Joe? like call to Foran, over to now the CEO. I chairman would and Mr. Joe our

Joe Foran

Chief this to the the attention. appreciate for and the Matador time responsible good quarter who in ones morning I'd Legal has in EVP and are Officer executive Hairford, Operating of and Completions Mac. for and Craig Administration; And Officer; -- Vice EVP Land, Technology on feel committee Lancaster, EVP Drilling, been We and Brad Officer Singleton, Robinson, Adams, line Reservoir much Production; and Chief thank Thank Strategy. everyone EVP of your also these and and Krug, Operating and very Goodwin, so Chief Van participating we are you, results. Land; Executive for the are David Midstream They Chief Marketing strong Gregg and and today’s appreciate of us call. exceptional Engineering of a EVP to really you President; staff interest of Matt with who President Officer; your Financial Billy introduce like very

these And of the to appreciation earnings release pleased and worked our in really hands. operational I financial with performance each achieve teams in work entire fun I it skills yesterday, personally see all team Matador operating these It their and truly but many the with achieving results had staff outlined working very a and to and challenges As the put my The but applied extra sounds for -- in I it half not really effort really, had rose and little the everybody their to to we're corny wish the there's way is really together. is XXXX. know was issued acknowledge during the the execution -- that's express effort. occasion. staff We way hard words to I and other and dedication. first to everybody pitched wish a the corny all

in on time, track come too. is to is and in pleased as -- like in Mateo done we've project. on And to working stellar to Midstream San in this would Second, on recent X results on certainly All budget our Mateo on also achieve age right this San San project continuing recognize has most X. to X Mateo They're time, coming well fourth say represents one our of Midstream. most be with budget now as particular, I'm our recent now

in cooperation Midstream us in help there partner great look to to a more point. I this have quarter. We and Fire next forward on appreciate getting their the with and reporting point

clear of interested effort it we're working beginning us was efficiency on and achieving? the cost to were but of working same operational. the without you -- was the efficiency is way the production to reflect year, help really market some -- thing in our number worked the with the I that the at upgrading less projected pumps rigs think that on efficiency thing these actually, say are degradation with cooperation. the time, appreciate Halliburton results of going the team than is more lot budget. was on a the as to top was and the sand, again, the then kind good the because with that the or the and local X I CapEx One worked we're reflected wells for to of us. in At we of apparent would increasing [joining] part the [ph] Patterson reserves. there have or bring on rig And when And same Finally, what example that able was sand, using capital road each and down out company in efficiencies drive And was X bring our drill they

and them we've to those waiting the production we're give ready our when there type [ph] efficiency. Midstream between and with so with third The and to the been other the wells same [pop] online, to groups of parties come services pleased was are cooperation able Midstream that render

the that really everything engineers finally, operational and all was the various And just and a organization, discipline. work have, by there groups within clicked. special effort the to just we the our within teams geologists the and The

quarter better half to received continue and get next and know please to time that and year into for XXXX. you this But it get work. of this means unless quarter going the the we're happened we get for efforts try and the time. kind to this know, to we it busy -- appreciate all you we happens That next also So, really next words the

with our that, And the call so we to open questions. to like and I'd like chances

Operator

[Operator Our Capital Hanold comes you. question Instructions] Thank from RBC with first Scott Markets.

Scott Hanold

So, was where CapEx, very I was good. quarter mean, seeing it this

of $X a below where seeing well and look to at can some expectations expect XXXX? go give of you where -- of you don't to well a some well of how on if know in know, I some lateral enter us we we average we give or progressed XXXX? if savings like relative figure through can there's the context it quantifications maybe where end or of cost foot length and an we that's -- today are you completed typical XXXX, where and today kind as ultimately per be You we where were you're could the us but can

David Lancaster

Yes. It's Scott. Hey, David.

I in -- we think this had deck quarter. that put we out last investor hit the the

had that said how on terms kind would of could recall we XX% that slide I we foot XX% of So thought that as to improve down ability And or to thought XXXX of $X a go over had course the be efficiency. that our think our I that talked basis, this in per we capital that year.

ahead we're again that think So think that far, I next another we'd bit to I down projected a year. and XX% that this year had of XX% be probably little

inflation were to any Of and own course, we there an trying wasn't give of remain flat could assume idea that our capital because Those service be. that would what costs. efficiencies

the give running of expectations. And their abilities Group to that. little do a lot our probably ahead we're that think a credit, of course, I I for Operations to So of

in think I accomplished been the probably as the well. on side drilling stimulation that's both and particular side on

we've of it's do effort of first in And good think what I the just so laterals the while year Wolf the think, do -- been of with although year. laterals, longer of sort we're some as at probably lot much but Ford we kind point it's Delaware was we're this associated still the just, been important in -- that. in done to the a longer beginning in note half that the really the of to we hasn't I a it stages Eagle

little even as go more. kick see that year, XXXX of we And of up into I go the think then we'll as So second the more. will that through a half we course,

think that transition make we'll So terms to per of as dollars happens we're pretty progress in foot. I optimistic that continue

Scott Hanold

question the how as a into own you spend your maybe where sense up little it look that do Okay, accommodate expectations all to of a growing is XXXX, Shifting to my give [indiscernible], you and for that's enhance Mateo, investment? like to spend what good looks us you third and needed Matador much based to XXXX -- to in like even to more hear. party you follow Appreciate think bit Midstream San third and on for you're seeing Can continue party growth that that. there. potential

Matt Hairford

depends the have good opportunities. on what going good a kind question. Scott, Matador answer this is we Matt. do. that, on just And way a think I'll And it And to of I handle really is it's the

need the to on So current we know do expansion what assets. we

it's parties, a year. third we're back CapEx about talking That's thing demand increasing The been for related. as been the of the half the good

the for that Eddie So the expand looking is We've We're there the XXth really thing to disposal nice We've in completing County. a got base lot saltwater we disposal of our processing have a saltwater so take comfort facilities. gas asset. on. that got we at got in well, we the footprint

the for deal of about San just efficiency Five X. getting with back So do that we've continue have to think and on. get carry that way to we'll this that's kind I Point capital We Mateo the got

The first build-out -- XXX X. San Mateo first of million of $XXX

Scott Hanold

for Okay, that. thanks

Operator

Thank you.

with from comes Raymond James. question Freeman next John Our

John Freeman

Good morning, guys.

more to the we additional sort on. breakout on I'm Just you mentioned going could if Mateo, because to projects be Scott's see additional of San on these following are bit to on addition a in just detail working questions the y'all get that of maybe up expenditures little trying

You commercial a also SWD more acquisition were sort well, few of some an to sort agreement oriented. that into acreage make permit, entered of a

-- that. maybe composition of Just the the sort of

David Lancaster

Hi John, it's David.

I in saying and half. was it I be half think about probably would correct

CapEx. was able up what think and come area. think of to I for call acquire going had had We was up Greater so. working -- anyway. there as that and The -- and opportunity in well to special was be an -- we so finished I think to And a terms to And that that thought that just and Stebbins surface probably existing with we seller something a the that additional up us were we the I get well. the facility in commercial we're particularly we drill probably opportunity good for a some acreage associated also

And putting that third or made business party trying compression to pick It the is do convey. finding a doing a customers building additional decision securing then out system think such So business. that and because other sometimes good little I commitments of just well. out we I fact that trying our the requires what extra terms them just development of we extra we job in pot team, just worked that course, And that's to that the to Midstream what to were to it. think to on little were that's up we get -- want on

John Freeman

cost then well lower good saltwater you decrease a seen] bit that a That's driven completed addition very cost. disposal mentioned LOE all improvement the helpful. [you in in the was all nice And to pretty [ph] you had by

more If rough just those you the of upfront, sort cost pipe. running on of is on maybe truck? moved of to could of you versus now put of about you percentage volumes what -- to And pipe the me room improving the saltwater try that of additional I from sort got your kind have numbers give on had think as truck

Matt Hairford

on we answered San We side. over the Mateo John, that got [indiscernible] there.

the the XX% towards [ph] little we're we're so then to the goal year, to on XXX%. or the that. get closer -- On we again the end to with with is going Lee our on XXX% almost [pod a of get County, XX% pop water on we've adding volumes X] close So or to or maybe to just to probably -- projecting begun recently get in and these that over to there all got better where about volumes XX%

-- as And is off out. point just and we sustainable the you Number to of of that's the team's side, mean want those and the to get about like be a volumes these cost feel LOE duration absolutely the savings the when for done there's you things I pipe a want talked contract. really job. that So we on X, saltwater nice disposal trucks on couple I

that. And so we're happy very about

we that this of component other The cost. is workover mentioned

having nice in has the And gas task to artificial it the workovers to do and ways lot So workover ties you lift make better cost. that, reducing that’s we've a run how addition and on mitigate actually the team even done in longer a job ESP, to got lift operations. to of install lift looking really at times force so artificial back you how a

on execution not of doing the but So lot really team a workovers better only eliminating focused is on also them. these

John Freeman

on Congratulations guys. really great. That's a quarter, nice

Operator

you. Thank

Our next Neal with from comes question Dingmann SunTrust.

Neal Dingmann

Morning, plays. so congrats. tell of guys to be seemed nice Slide where breaking slide so My on out a more do always your these question a these guys than somebody even days is job lot to able you it's nice X and on days that be quarter into different ever to there about great talk

you could Permian. spacing I'm talk I'm that you little going guys, how this forward in and of you at some haven't just that. changed there's of your the and a Joe about in now bit. belief assumptions spacing where investors getting if talk or to in if parts maybe David, to you while maybe Just could is seem the wondering a now -- Matt, question And have any

David Lancaster

It's Neal. hi, David. Yes,

one on where at or we've particularly our are of acre a fairly location, I unchanged. the well XXX But that for was think three Camp kind most targets, we consistently a assumptions of any plain Wolf pretty been saying remain drill based spacing thick in We part apart. B spacing. we're XXX the that zones locations rack maybe on We, have kind spaced where kind spacing that our at and things do think, inventory, that in stratigraphic some identified or pretty wine still the sort are one we that two of different at consistent wells of again, in that XX. any acres I like have landing have

feel that's that -- we us think I well point. that served this like to

closer a non-op interest Clearly, operators tests in of are and doing had that at program, we fairly spacing we've in in to the opportunities small other some our the -- have working interested very participate done in the our of so. some times of certainly some

that I said right is we reserve thing always we've think that one Matador at the get smarter. here to

we're way probably always think, point, optimal this but out figure to is do so And things, I the continue. at trying we'll to what

that wells remember weren't years You the we several few that when closer probably little ago and a a satisfied particularly with to results. drilled

little had more coming kind some of I us And Delaware. experience of into our made Eagle the Ford think cautious a

think the continued ourselves reasons, of keep stratigraphic spaced acres. So that interval I for least well to all XXX to those we've at pretty regardless

Matt Hairford

Neal, this is Matt.

Just reserve to to is add David that slicing would to on the what wells non-off have of participating the have one right smarter. the be saying what do that we pleasure is And there. and get into then closer we things doing We drilling. comfortable of

or it's be be to get to spacing how for able nice baker percentage to something and maybe even data the able participate that. it's those and react, in see those whether So wells than Whine single-digit closer Rack a

Neal Dingmann

topic it don't seems in guy before East you I you've on or in some than these the from looking your matter, hear. -- far you're change just down thoughts Breaks day the is what BLM. of see others. just better as you Maybe Now, And have I'll West, I thinking Rustler how that your about GOR; if of and Maybe to held sort maybe when the hot other if of the as I'm again, lay you newer some hit that's great comment could just GR any if know, days? it

David Lancaster

that just I at all sometimes and of cuts along. come we transparent area And speaking low and within gas of a stratigraphic different Orca. a to terms have you if our cuts. talked most in different I think asset Ridge, like particular the intervals different -- about about been with it's associated we've areas pretty pretty lot been different think Neal, seems gas in it look Oak over there XXs it the clear even the basin of tend that have generally that them wells

look things You are XX. and XX, more at wharf the like down

the go Antelope wells some and XX%, XY and and XX% breaks XX% up XX%, go from the Ridge up those to Wolfcamp into or which Wolfcamp it's You B be get are those to area regular plus. and then the up may you more of

in So of seems what we I particular expect of these in that to oil have -- never it's from -- of it thing, that good wells. it's gas I terms and drill consistent to one -- be think just just we the when just it's some the we we've think think been -- a pretty cuts fairly when wells, I idea

did you things a cuttings ago, and a the always geochemical said, when the seen Was bunch I this remember, ever got team know, we -- one that at and brought as I actually just drill bottom that and credit they get thing one table in be basically that talked went these coolest what I'd really thought did to out we time. ground. long in and of years of about was it's them the geologic what progressively these analysis exactly several science the chart exactly that it I ton spread that's we the we had on and some ones go now drill went at good happened, that's to always wells are going and a to the gas and give the it up hearings, first for stuck going [indiscernible]; in before earlier But of

hope adapted -- basin change it's helpful just think them. just of again, an the I across we've to but all you things not so where that's just And know area it's I and

Neal Dingmann

helpful. ahead that's Yes, man. Go

Brad Robinson

more specifically. BLM basin And part thing just to because because Brad. less gets get the in what that And mentioned more said higher, to acreage David to is you This add pressure deepest the good with the hole that, want in is the drive adds gas the you oil. a it as or I energy comes of more deeper, you out. which the and and is

see expect thing around mentioned but that terms the do GORs rock. be a can of oil as driving of to we different big in David real So the basin out

Neal Dingmann

much guys. so Thanks good. Very

Operator

you. Thank

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

Sameer Panjwani

morning. Good

next I about and along So that early low both improvements capital strategic activity oil -- oil negative potentially times you a talk next efficiency just you the given thoughts going allocation? goals know bit capital continued for the think macro on the how cost you've just updated into into about macro Could side with and it's backdrop seen year. cycle heading also levels XXXX but sharing on to year still

Joe Foran

Well, shot Sameer, the give let David these various efficiency. I the capital started and we're particularly And earlier, their very at getting me it. first that and Matt But there's perspective take can too. is chime efficiencies first part the now mentioned on just in

advantage mile, the we're of in rigs. to longer coming the So the but just ever several of here, I rig effectiveness Otherwise the the efficiency we working mean the getting drilling the more more and and -- early are on we're on realize two very plans started laterals. on together really taking other benches groups, various increasing ways the of were our they're

so and it to more trying happen. we're stay industry and of the freckle efficiency, things big future commonplace faster, sort improve and and to with drilling the to the part that of we're is those the trend are becoming more Matador going continuing is that And make all a wells to see We drilling, faster, that. pad trying continue of on

we house next We a a worried about time seventh sixth rig. not in to XXXX rig adding for long us be the out very -- XXXX seventh we're seems The making a market we try do is pointed That rig. the and a weren't what definitely want so what didn't the to definitely rig. see do of to tackling and going say to the tackling until was. were lay could clearly we the say land more We we we're

future Billy's necessary. others We've our something We point at They And and credit And so that and future more not the need some been won't any horizon. targets and are going in is you say wells don't and outlook just reach less. with to we clear so people it's XX Have won't. on the XXXX give hopefully, see I it with now now oil Sameer, don't the reaching with our out we're targets. some left foreseeable it we income operation comfortable that Matt? or and to but be need faster we've the for the group so drilled there

Matt Hairford

in just bit It's what a of say there. you Yes.

are lot I good Sameer things value about so a the just a about of we like think going these into want mile we rigs. rigs. and with of With that to three that half we going We're XXXX got on have XX% how rigs pricing, that's done about we're his adding more contracts. we've we've talking about are seventh miles. got every and but more optionality getting a frac optionality lot were Halliburton Billy We've be happened year that that we feel to think this six and XX% talk got quarter team And We and and shorter our we term rig things, we and as laterals or on that. were a going And XXXX, about done real maintain nice on with talk efficiencies. with term you rigs and our a of three these in are two agreement the put contracts, talk indicating with things it and as going optionality. about longer Matador just on into then

line, they about really the to two this anticipation guys these rigs. have faster the and that. same and at happy preparing faster. boots, hard just laterals. two-mile the go third a mile in the gone a with are faster and just and and rigs rigs in push a so adding the we've and We're a team nice his half more we're type made to job drilling in speak high-tech of very with to The already operations we very and happy have laterals we Billy talk more that two-mile even state envelope some laterals, and done here drives to the has Patterson second got team Patterson We've done modifications rigs, drilling continue and upgrades engineers well him for [indiscernible] and have and just on our but ask our

you talk to answer to So want that the Billy, rigs. might about

Billy Goodwin

Okay. -- we of Matt and in half give like Hi and Sameer. and start saying, the like it was drilling is kind This the stepped mile Bill and laterals a into I let's two-mile Goodwin one on a and completions.

with doing of better there, a a while lot MAXCOM as it, that more the engineers of we're some the and and we've grab different kind things top get look geologist time hard You'll work room too us really for the -- we on in parts more having going doing us these get working for we getting there a at the helped us good a we're and the so in keep seen different time XX% and techniques, and end days and to equipment done shave target preferred really the stating the so, look and two-mile XXX% efficient better well. lot think guys studies laterals things and toward and get of that three year that off of lot wells get of next found on really as XX% and we and we've help quicker target

faster, on drilling same better and So we're getting wells time. the at better, CapEx saving the

records last we also the room, that we've and we So since started XX year. we started look MAXCOM approximately continue that to since with set forward

for a been deal great us. So it's

Joe Foran

they what area I'd the think around it's all to have XX but there's Yes. things of in XX/X of activity. of of but lot to across runs and both it, fully and they're because the it one each they they're our geologists it's and and learning the to where just a not one working across would are kind in always with It the come I of -- you to it not out appreciate a so it one whole XX/X just is of just other. appreciate basin have spectrum everybody all bit that rig like you they're records working Billy that's a and isn't it, and said at and it's mean, and together room, it. see areas, always category add around across the one we but set Also properties rotation from to days the I is, engineers see that there, little have all engineers cooperation one have attributes in have MAXCOM invite drilling

been but says, And I you little a big being Steve real people part bit track [ph] the extra Austin big, zone Collier it extra take Matt takes than you geologists contributed, to him. parts in and of within be have of to great work it's together, taken a in you that's really And Not taking able better of mentioned making now zone. part Billy's proud to decisions young a Billy but engineers, make Clark work Wright preferred delays and at drill stay but others. advantage fast and how learning exchange lot as and those zone is to in it all and in up are what just people because in not in hundred stay those horizon as to schedule, usually deleverage and horizon, are some So and decisions, Rogers real of that there's it. waking they're part to young and working and night David you're us. Haskins and could several that's and earlier. and work And boost feet that they're time And on

Billy Goodwin

year in continue and mile side a and of including of really on hard two on other a laterals. land done together stick got X% effective laterals a and discussion, the land you've to and to get that half us That's operating are It's joint lot of on together. job go see mile guys of and very those agreements because next XX% line making There's point nice last number Sameer with work have it a that work to has legal half We year. to happen where really you too. just to the longer and a the league lot to of hockey trades, why to and the and for putting working operators and from a

Sameer Panjwani

on That's I and my color question. really appreciate the answer really there. I second great to guess comprehensive

mineral looks acquire in like side you the interests in of remain to things, building continuing the active portfolio. On

if efficiency further keep of to wondering So determination I’m like if road. to business some that to just proceeds source down or it capital enhance making look ideal whether a the structure at could your internally be the it a you've for of at towards and point started economics you'd

Joe Foran

lot say variables to a would yet day. thinking talk the is on and it just direction about rode right studied is on We or in basis I to early every regular don't optimal smarter try number We a know of we're and invoking to Sameer, depends like to the it's it a get almost get think ours. that best and this what you're direction actively go our we is move which situation.

long-term. We will long-term values. sustainable doing. most and we think we're some to sure the there that assets what We're not just to short-term, So want enhance company's deliver valuable going the already that something have can we enhances some the value do which over one be

progress, making early the we're so And in just still process.

Sameer Panjwani

Okay, fair Thank you. enough.

Operator

you. Thank

question comes Our Imperial with Capital. Haas next from Irene

Irene Haas

have San on can that? performance Mateo a X for me goals macro. It's And and want XXXX exceeding XXXX a really Hello. XX/X, actually, quarter, you you quarter a especially that do challenging for against your these my incentives quite congratulate update really just achievement. and give little for question an guys on and and I X David after if you schedule to hitting have

David Lancaster

Well, -- earned five from the XXXX you and and in point. that performance think I XXXX Irene, know we XXXX incentives is as

both the And so then those the XXXX. of were XXXX paid first quarter quarter in and first of

quarter paid to be So million And to believe in on would company the I $XX.X X. XXXX track regard won with the that Mateo San the the paid. that in incentives Mateo earn San were which first incentives, of XXXX is anticipates

XX.X if we and successful be to would another that be. we're expect So as

there they and a of we kick before X, are base, drill to Mateo incentives incentives a to that require I us If little begin you certain their do to us different those believe in. wells. at wells about drilling look the XX they is there threshold drilled require bit San

those of before we'd And so earning XXXX early in quarter going in those be exhausted. of until it be sure of may for XXXX forward paid would would quarter or on some be probably a begin so by estimate end to period actually which incentives would Those a that think time quarterly the basis by XXXX of incentives. in we toward they realize were will -- we the each I first we the that

Irene Haas

you if said I that, don't And you well, expect divestiture did mind, Great. about you this to during earlier think quick roughly. sell quarter and is you $XX question some million

XXXX second in And net some So expect half? divestitures? of I divestiture more That's we guidance the also should that your is have. all

David Lancaster

some we'll able additional be be regard the to we're able to in year. deals. optimistic we'll do that of to what get done with Well, Certainly, the half second

the and that we'll to very half assume think in of in different. the forecast, we're the some happen in it our that proactive making land until I year. we have able optimistic the of that year been us know we terms -- half do these Irene, deals second belongs be typically to guys more certainly the in terms of some in of of Usually, first

include the this exactly what But year. don't potentially half could at So our guidance point, second that know those don't are. -- any so be divested volumes of those I the of over I would

do, we included. that's until until So would definite be they more

Irene Haas

much. Thank so you

Operator

Thank you.

Jeff Northland Our next question [ph] with comes Capital. Grant from

Unidentified Analyst

kind pads. morning of and complete you us on just do Good or wells Antelope Ridge. release plan approach three do [indiscernible] side. six two a guys operational sense guys you wells back that or Is the of three of do the you're little of to flowing of strategically zones there. to to your in three any the just Can the on would color it? more or in the well, the and bit These was mentioned Western referred kind you plan that hoping terms curious kind you you give all A first I how well kind on approaching before guys. six

Joe Foran

from all, permits I'm -- that, plan correct believe of receipt the we assuming to first that I of we and do the will. Jeff, approval the the Yes. BLM,

We [ph] onto tracks. will plan each Rodney to plan those the We with drill onto move a initially. couple Robinson wells -- to of rig three rigs

be drilled I'm sales. before so that be will be stratigraphic all a They'll we any and then we'll So there'll separate will turn it completion to three get Yes, we I each package. of believe rig. begin six wells the six bones and drill before correct them some well in intervals the some completions completions all operations. with Wolfcamp completed in

started if to them, would And from probably quarter first get anticipate so stay on early first say and the the XXXX. in would we're right would probably fall, late that track then kind in we them, I production come of on of able now,

Unidentified Analyst

I great. on my those just right, appreciate side. land up All follow details. And the

sizable how you it that you update the little NRI bit son. the of had You guys seventh sense well can recall, average Can mentioned kind nice block that you area. And acreage give remind trades, Wolfcamp kind recent is some XX%? the a us standard Obviously with the as doing was us around the guys for a of I a trades that if above guys you all?

Matt Hairford

team mile there. that I we Yes, And, I where we block X,XXX-acre ago mile that's of year immediately X in the targets and Bone are that I have sort going laterals Bone project drilling of be AXY. Wolf turned that's mostly or but X the XX ago imagine the Spring, other now. begun of think maybe continue multiple because there going Spring a -- we'll right a going have and be forward. just on, to a it's the our targets to laterals first that was months the a Camp drilling were couple the hopefully, the I'm first Bone there really AXY we thinking us a that that the two-mile as least, Camp to and for mile they half good longer before sort think is into our There's Spring, scheduled of nice and going work to complete second taken that that laterals I currently. there. it to But going getting second will the pretty at Bone land improve a and and have think year. other at kind would laterals And Wolf to correct want potential time And is third much We've it's X,XXX There on. this range be we of the will Spring thing the -- time, too, that of goes third second have end it's

to block So we develop for I where particular to we a look one that going think, it's we keep quite think can feel out. forward that it and time lot like we as some it -- I in can

Joe Foran

if bit. deals build here in work Is do land the do but deals Jeff, to want we on relationships. -- practice. jump to our just I to We a can again, little that is want it's

some acreage, are favorite win-win that give deals. So that of had these we're our we some up of to tracks. -- this get To

early is naming to in number and tracks the by place He released going call track gotten are are allows satisfied was It you -- little have As or now to traded map. not I've you been and to you after XYZ may that pushback. whose you When lateral. and site-local shareholders. Company wells the of person can it's block say as here some know, a order follow traded trading. And longer you up a do our been these that of since he's be well. we're the from a drilling been to

an it's -- major or feel But me and know and these business told felt help the moved in called get industry the the with basin have their sign ponds cooperate on build of players how really is some cooperation deal it trading increased you And Mike trades. about have so around league they these encouraging that. aim relationship. on win-win if real And names when see guys the retention back to I to and kidded there information in sharing or I've

are those we and Ensure that better So to trends the help glad up. -- without both -- we keep think miles healthy hope happens, get sides all win. to all when that us that will -- X do

Matt Hairford

is Joe. Jeff, Yes. the way Thanks too, Matt. By this

your there. One other And laterals. mile drill that this together Its related putting half to we've of a relationships a where can two-mile that years efficiency we've been size back thing of got rig, park the in way or can come instead about asset march parent-child block things and block is to the a it where and we allows just of the months. this regards do talking kind to through just and the drill other well, and at looking it's a a just having you're you so down you subsequent weeks and you

So develop it's to a that. block a very like way large efficient

Unidentified Analyst

nothing Joe, in with a while. a point, sacrifice your nice Matt. Yes. to but good A wrong And, once point very

Joe Foran

basketball taxes. it. he you professional got straight Yes. was into Milwaukee bullet up. player traded to Grevey X And because well AMT use called traded He his understand -- Bucks. the to says a Kevin him one it's Lawyers I'm mean box. going dismayed him the the okay, I friend, that from I [ph]. to

so it cooperation. and efforts as ideas the used said else good a that open pipelines, to atmosphere there. he of and seems there's that everyone help And to a but as not he's them. processes looking everybody for so on is providers -- of to relationships But times sometimes all are strategic they're of out and When be or some like tough everybody service happened it degree good it's this greater I'm

and appreciate these some staff is silver the cloud challenges. lining we appreciate happened our way every a so has the way and meeting And of that

So positive. trends I to don't a are we net want But go --overall, on. the

Unidentified Analyst

Yes.

thoughts all the and appreciate Now agree XXX% the time, and guys.

Joe Foran

you. Thank

Operator

Thank you.

Rezvan with from Tim Oppenheimer. comes next Our question

Tim Rezvan

folks. projects results XXXX The for notice I question. additional sequential I $XX Mateo San have EBITDA taking back attainable. morning, in Thanks for the to quickly. strong Good growth. yet guide And circle the XQ X% my then increasingly of million looks works. you want kind to of

Or segment? level? about that term growth growth at get we modeling tied ramp for kind of longer view earnings more attainable there? about do So Or as point we of think X% Is projects lumpy and how has in? from how growth should think been

Joe Foran

line thoughts. have a don't much real they will Matt think say to to bowl going just data how but something, occur. I'm enough I going to I have is some firm points Tim, on draw think, growth and we

what few just there's think And it to know don't say Matt? reputation. We staking I more data we're could yet. do do or more. scenarios a I just be be we less need where to points we could before I we want think it our and going

Matt Hairford

been I that. it's quarter. great a Tim, agree And with

good. was quarter First

Second even better. is quarter

your guess I want forward you, of which balance Matador. move tell I'm going you to is anchor we tenant, a As

into us, particularly they're visibility what great say do we going we're I'm to got what You've for say mean, we to And do. do. going proud I to

pulse. you on that have really your So finger

Wednesday Monday and The down third-party they that start a I difficult. you are commitments and months can there or people the line. don't is up stuff maybe stop. mean, coming on till more be can little And think show

right. Thank So there's freedom. degrees more is word David. lot there of That's of ambiguity to a hesitate -- but that exactly you, more use I the

news. is work that guys rock. So for say, the as we've think a indicative lot and I continuing push to quarter mean, had the of it's hard they're Mateo I good San on and great we it's

David Lancaster

lot to a have really don't I Tim. add, Yes.

the quarter. don't on during not a third for that through bottom did And I feel progressing line think good nice be the guidance to off up in out it year. every to Highlighted it's X% thought. some And to their think going -- in revenues I'd up and increases continue they mass improvements the would are that showed but some nevertheless, quarter team was reluctant as to given we made I have work that things They strong se think this a per too costs we've I I the there. but be definitely some about very San say too. quarter shout quarter it by only Mateo. party we

just that they but we continue see quarter. nice can that had particularly hopeful we're think I a So

Joe Foran

will all based am $XX in to increasingly I talking I trying the and be words is that million attainable. we put but think about on your Matt see not mouth been you've we're confident what

Unidentified Company Representative

Spicer not on I hit this Matt nail And the to Joe. head. think the [ph], so, is here I'm

really got mix contracts. think there. of of a nice mix have quality out we a really And I blue-chip nice we've customers

them are interoperable Some stuff it firm; some and them of some of have doesn't. interoperable up when it looks shows of that nice sometimes And agreements. real

have estimate to we we're what to be think on going So great careful but a quarter. had I we

Tim Rezvan

And for details. the a just thanks Okay, follow-up. as

value in on delineation, capital and performance add allocate term of up provided tough really the about sevens capital north from the of strong over We've kind well You that term longer could medium how of Ranger proving that market do the a there the area that up for up if resource? you of that but up in acreage? prove well you any to And in to running opportunity to sort results you're more Arrowhead. seen possibly really kind is risk X think

Joe Foran

revenue reason on and make barrel. Tim, to and to a $XXX, and spend to keep don't you want and this in the all new do dollar and and a keep intuitiveness but the could And technology I'd other you with how the a XX% the all goes -- and week prices the there cost true you or money together drilling And go that processes fast up of say one how gaining say we the when keep more each way of allocate we getting line. -- X% you But put And were for calculus in XX% you balance just you it goes $XXX to But severance to money track another efficiency make And whole going a royalty too a wells like your more of on just we and and others and well sometimes than bottom single variables get. you new cost, teams go the to slow. areas. bit of really you'd -- much we're oil money for when Yes, and that you're too up the but areas. jigsaw the much We're aspect did you pace. about on in drilling it's tax that make that on variable want that is that a there's revenue possible puzzle low-cost than yes, groups to on generally that is that lot how that there good better there's making counter stress you either to these of up the go feel is is but governments more deal. little environment a you the if they're And together.

-- take Matt? to you just got lot You consideration. into a

Matt Hairford

get return. you but a keep now on to We've third moving to like second I that Bone Mrs. nice Spring talking well. we've Wolf you and agree, farther think mix Camp rate farther able do been and And with said that done farther wells to Stevens, we're north you're what Wolf the mixing that Joe. great the and time north And I of that while and going Camp have north. for in a quite Tim some just

-- should So donation as more easier, the about little to bit a becomes going is more these we're guess, say. we reservoirs, I I learn and what

David Lancaster

not that of it, Tim. all through but there, have that, that years lot a do on [ph] mean I that with comment acreage Heiko one ago. -- of up lot add our just we came a merger might I number I think of a

so we are teams up area time of bit again, of done addition, in now I that job is to in -- now Stebbins. little trades we've lot better, think kind really, nice units to that think also like positive. reformulate of really very that HPP, the using this a Then is do things and doing And which I a it in and understand a

that's going these to kind lot this development going time up units of longer and to the But on on because feel work going position. good taking in our that's a I there get of there place. I other not like acreage we try laterals to places in to only that important into know of very across reformulate -- too Some to think be but all there's

Joe Foran

Well, to paying easy you occasionally, XD a be that away year for Jeff and time up like again, we got of all But for to homers, we decision. seismic seismic pretty to in following but have. concern XD from about to that to wells been among recommended sum down there's all it, We on it's would work confirm do. he's in it last the variables. said earlier abstain the as a single money notion new information sometimes move. the One conference, And to to -- that that doubles, all was more but capital authorized the hard spending good his With we but been a pay honored good still made request. Ned have the off we'd process that and the time. triples hidden is sacrifice that or been geology process and lay give delineation just

new this data our this timing, new little and there's understanding incorporating So of these information into areas. overall

And so taking that's, decisions, -- account. first again, just you there's more that appears start an then into generally, complex it's example as everything

Tim Rezvan

all Thanks for the that makes details, sense. folks. Sure,

Joe Foran

Well, thanks, Tim.

Operator

will question come Cowen. our Thank you. with from And Gabe final Daoud

Gabe Daoud

rate to excuse a think Joe, activity good if Matt, everyone. And we're next program thinking XXXX. we on a XXXX. we about a -- me. one, flat Thanks, impact year, Hey, into as relative David, flat the just morning, -- guess about I to pro quick capital back if

Joe Foran

to it new going the of your He's the even of higher these is Gabe, get to that the a of equipped, partly the footage get increase going the same amount up with of hidden and in jump that's in the real working crews the and flat. XX% that areas same we're number beeps a ways I expecting think combined. the you big able rigs think expectations rigs you -- point thing as Is to came in with and for interest, is, because form then -- said just to and miles dig things better same Billy big the hour and or going a same we hard a in and have as And then group can then technology to rigs. the and year, me because give there. of drilled XX% to the quick he recoveries, from finding -- and time. rigs. you're is move we of a these just save He year two-mile keeping boost next final And note in footage lateral Let other We Bill doesn't faster to his understanding have all hour is with you're your better built percentage drill number amount just a you to achieved achieve guys more that. there, flat, we're mean we've have high footage be X here, and getting rigs move you're us drilled recoveries XX%, is our better that they've the that's amount this able recovery.

my and thinking kind just to the good in of wanted then that [ph]. So test put colleague, to perspective turn David I for patient

David Lancaster

case, Joe, can this Obviously, your I I improve believe answer. upon in

too. decline I'll So

would what -- have and said better. I so you So probably I said think

Joe Foran

recording. get helped. that on Gabe, Let's a that I hope

Gabe Daoud

Yes.

helpful. that's Now

a that's I guys. lot. for it Okay, Well, thanks guess me,

Joe Foran

Thank you, Gabe.

Operator

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

Joe Foran

you even or and invite small, that sometime biggest The I remarks come of prospecting. larger, call you. have us shareholder to closing by is see on the Thank to all

making difference makes like the happen. the Just some things I through the a meet think by, a doing and management show And can you Max a job around you and you come of that few are that person. in good Cameron. really meet what to for like to we'd We'd such of staff see

business Our but we train the much complex time. on execution that enough run and not is grand it's making so feel strategy

person enjoy will So and hope on and all come everybody you having we meet that yourself in that. you take by

And many and and time and to you on one us. team. is executive y'all months best And thank that of kind and we are and think quarters So our words attention. the light big the staff so have we to to us. It's last time late had always the appreciate still really your for been see Come the speak. years all ahead out and shout

thanks come So and see us.

Operator

your call. program. thank gentlemen, the in This you and Ladies participation today's for concludes

and all disconnect may a day. have You wonderful

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