Matador Resources (MTDR) 26 Oct 222022 Q3 Earnings call transcript

Company Profile

Participants

Mac Schmitz	VP, IR
Joseph Foran	Founder, Chairman & CEO
Christopher Calvert	SVP, Operations
Thomas Elsener	SVP
Billy Goodwin	President of Operations
Robert Macalik	SVP & CAO
Michael Frenzel	EVP and Treasurer
Glenn Stetson	EVP, Production
Gregg Krug	EVP, Marketing and Midstream Strategy
Scott Hanold	RBC Capital Markets
Neal Dingmann	Truist Securities
Zach Parham	JPMorgan
Leo Mariani	MKM Partners
John Freeman	Raymond James

Call transcript

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good morning, ladies and gentlemen. Welcome to the Third Quarter 2022 Matador Resources Company Earnings Conference Call. My name is Justin and I'll be serving as 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.

in conference will recorded company's be one as this and replay website reminder, press year, replay earning the available discussed a is yesterday. for being purposes, for release As issued company's the on the to I over to the Mr. would turn call now like Mac President, for Investor Matador. Schmitz, Vice relations Mr. Schmitz, you may begin.

Mac Schmitz

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

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

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

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

our to remind on find release, with call I their under the over call on website. Founder, I earnings would tab our everyone the can in Chairman would like Foran, And CEO, turn our a Joe? that, XXXX that to you connection and to presentation to release earnings press the slide now with addition quarter In Mr. third Joe Investor like Relations

Joseph Foran

you, Mac. Thank

perspective, the fourth We're year can And increase dividend it been developed. excited but working this to production full fixed way support. begin year the our of off a quarter feel of value in of effort and that improve looking and has and to has made reserves improvement areas whole through numbers we ago year that public increase of the midstream point the on have have just us. to contribution today all was as we market we've and little reduce XX to to years and made in a over we we're results, put at assets the real debt value we've this you for and forward see the we very Notably, finishing balance more than everything interest and kind and time. Matador about and As went sheet your cash call, during the couple a appreciate this

the have more sheet than balance for. first We cash also on Matador sold

a field our we the we of So and the rock, helping to support to in out measured making on among profit at think individual of here as ways decisions, us a work we great has open lot the questions. people from there decision growth pushing and staff the grow outlook our come for lot great by and improvement that board a continue tend in positive And pace. with is in I'm forward say, Mac, make

Mac Schmitz

Great, start some questions. Justin, with we'll

Operator

question from from Capital RBC first Hanold our Markets. And instructions] [Operator comes Scott

now open. Your line is

Scott Hanold

question is, first growing going that looks year. like it made pretty of good referring that and the you a you Thanks. building My to even actually trajectory balance comment the next is Good about through you've it be on congrats cash and have, to morning got quarter. directly potentially Joe

that quarter, some a to to add going as of color best if want ways had activity And just like cash? you well. how that acquisition you position this, Where -- I it to bit in you feel I'm with use you on allocate it if that comfortable do little when think like did how guess a So going notably, the you looks tail do the little in about you to forward? and

Joseph Foran

for acquisition you'll opportunities. it'll the plenty about And stabilize and then And be as question. good of provides. you your to costs of options What long have at generally we thinking have a we they somewhere of do cash XX opportunities and and drilling that can those, don't number and And like that to nice want It's should you got we lower, targets. we are we've of to through costs term prices do because them if but operating only now playing and have A-plus consistent, And Scott. you opportunities not more we locations. Well kind you that the years the not you're are with that and thank cash opportunities opportunity most thing, have in look fall you will process opportunity. time. turbulent at the that same having different then tend get and Alright, for like we opportunity, immediate in think is alternatives the we're but in -- or different years do if terms is of do and A-plus the when opportune at some the acquisition locations more as assure between XX time, times,

we And been Navy we mentioned a Waha question oil -- and a to consistent would has may like on see someone may turning [ph] so prices. and of part have gas it.

getting might -- then and basin that things takeaways takeaways are those if the fixed you firm towards happen, you so from bills. other And look

money prices want game, prices high, are a is it one at you spend are decision to the once. and isn't and it resource all So don't low,

keep for dry the changes. to want some powder You

to business a and prices problems. We very chain environmental low high supply and changes rapidly prices problems and years recent from that have

out with us It's the helps and If and we on of we just We deliver, with in proven and been value most core time. recent feel we we're were advantage difficult we what to you. It business been of to such a I grow day center. be going like, do, added, that it want opportunities a may environment. options of bigger sake sound integrated that are example is we that able So special I way. on wells environment know in value think And our be advantage a keeping it now. depends that really answer but market have -- us tell timing. what added cash to And insurance the example these midstream think it helps bigger such And helps that's reputation going gives with the to the for to sake be to from of the one to gives each pricing a the proper and you it not us want it as growth. take and really plus during that's the part we profit And of for producing more recycling. that's we take becoming

B orderly want So whatever helps us make those well advantage for to environments very those is, for the other a we opportunities low cash generate. medium, situation as price have and and for and high C plan in that we the circumstances the prices, different transitions plan plan way prices take that A have bank to the in as of

as technology I want turn so comes know, because don't we out. to planning as it new it an I make we're So it can isn't, adjustment needed, for be, and depends we're, anyway, it

completions lot for two coming that of that For completions a innovations differently example, cost. in or say helped to with group ago than have the made did efficient a give credit our we're mitigate our operating up And year completions, doing a what producer. those we this increased the I more

is told I the XX our have of you we we groups Scott, that's So to I've watch -- a we but scenarios. for -- all don't me question plans, kind simple here build culture different know asked and talking you the and are but have together plans different how different that's have

more we -- the operating that's helps quickly work changes. us environment So think as it move

Billy Goodwin

is Frost has and do of free from me cash down that Goodwin what this flow. we Billy Dr. Scott, table with some ideas could the here

Joseph Foran

geologist, is Yeah, we put that. hey, let me Ned [ph]

Christopher Calvert

on always options wide with definitely I asked is a excess cash, options really of a do into Matador adding acreage, we're this front of Matador, new kind of just of all in going good these year what of of environment, have new sustainable range but, ideas testing developing you this But, think to good I Joe prices. said topic across are efficiently reiterate operations know I a to that but think think through a through lot lot We optimizing position the about. our and stuff zones commodity good come color what value and kind But, I really there's in really adding of on is run to on.

Billy Goodwin

many -- and has horsepower of to the more able is Bill again. there add much to different that geologists rock, look Scott, because A-plus get the all to some look to to zones the there's this at I having people because we so have all to Ned He was at of Hey department targets for now. so noticed it. be

right now. So, it's really exciting times

Joseph Foran

a fully you have quarter. asked Well, question active didn't past drilling. in the acquisition where and That's example. been an transaction another It's and area bolt-on an this answer I we're about

the themselves. risk been to was we'd those And we much present like add-on because those there's, as is the just great building the operations way our Ned's real, of up work seamless. as together group, and up very a has group opportunities less an in And so and has are geoscience the built properties of do job they just then done Billy and more

staff. the So good job all to

Scott Hanold

just more appreciate visible something few in have and All Joe, obviously product, to worry Waha going actually on No, make price all bit right. with color But did a the to environment. and in little about plan also ask did we and yesterday. negative commodity I going the higher and prominent point last it's a B days A hopefully become was the I the medium plan that you

production. I this -- a need people do want for that is gas that down one point, pipeline which that's terms Can to impacting firm a but you and us of little of transitory that as color us Do I GCX, think seeing we're but give give to you can you don't maintenance a in? think some your means growth be all of call you? like flare wells some going need maintenance, means the lot what specifically also on. is operations Permian how of you of we'll in pipelines is have that at it well. for to sense what of just, on because shut But,

Joseph Foran

Greg four-day I'll to Scott, give try deal. a up, but in can first and it's it do a or Glen follow somebody right or Oh, jump a

So especially going be material. not it's to

even we of a planned on the be this reduced, still weighted average for around four-day still the price we production taking our likely work worked to we we But will be be some and of reduced. steps for $X will to it maintenance second and we The that knew period still I confident some summer between think had so will somewhere going get that that $X you did ahead during We'll was we're some the getting basis. the during be that are there gas.

a just work disabling to proud pretty not plans and little gotten more less that to it's for of half don't down our we've our work more We're So X% we Glenn. our And on one little emissions, or admissions in marketing on thereabouts. flare. have a than group there

spoil record. to want don't that we So

So you add? to Glenn, what want

Glenn Stetson

you nailed is Joe Glenn it. Scott, Yeah, is Stetson This this said.

pricing. helped so back to to commend which firm has Waha exposure our years reduce marketing I our us, on get team yeah, And GCX, that

know month As going of we'll shoulder four a bit price Joe gas a days, price. those mentioned just of days team, for for good monthly a see job selling at lower fixed a the and into did the the marketing four

the has if And are in to as ways that there for and the gas price. are There similar market, you getting see always we're to marketing helped XXXX, regard also help differential. that selling Waha that in contact other with ways in tightening that mitigate on fixed so to future,

Operator

Securities. from comes And Truist question our from next Neal Dingmann

Your now open line is

Neal Dingmann

when you op going and all great about dividend. wife's be on talked -- continue focus don't base Another of in having XX the six, Rodney probably the you was dividend. that Joe, I but they're my same there happy see increased yet continue do It's to on have to Joe, side, do the any success. be the would around will that guys on what some plan the with your the I Robbins it to XX But, work give have or rigs know road, you and on with question's the can you a give to fantastic seven you 'XX? those guys out areas Russell, think question yet, be early nice zones around and quarter you my idea ideas, could

Joseph Foran

lot he's a -- us. have as six working more Billy want be we're work we new as those in his teams, working to going finding Tom, and Tom Ned we the Yeah, new for and are some They'll of good They you to teams. well to trying same plus be all talked about elaborate? areas do zones that ideas. got We're same

Thomas Elsener

think -- online early have right. of Yeah, that's talked QX, Neil, we've come as QX, next kind Robbins new sometime of Rodney spreading got going And eight the late Joe, part be the We'll I think I to ball to expected year. in we're part of about around. we've

targets. lot operators the as around Ned in you're Delaware of basin, there out the part of other particularly that us think the all a great basin I all trying different ideas they've new of mentioned, got and sorts good seeing northern and

a mix and put a that here. wood be And big on in optionality lot got emphasis Joe so really Stateline as of is mentioned still as something well. chop We to we will the

very to next we're we but look our the plans for announcing year. So future, excited forward early

Neal Dingmann

Yeah, Go ahead the all forward look Joe. to sorry. activity. I'm

Joseph Foran

are seems Yeah, best is what this and the Neil, don't I'd like to our going at they're the be but it is just costs stabilizing. kind what We guess big radical into other and be they it just is to that commodity of goes expect what looking point, about factor price change are, say now.

group, oil at finding hope example, going So our because I while can pertains these this that to taking We're make costs mitigate we and money marketing $XX ways up. and for it when up maintenance, came on during this was. worked it make compared the to able so situation prices the mitigate we've and been that to the minimal fixed where impact summer

So, think positive is chances. outlook and like the I very still we will our

Neal Dingmann

the certainly Mike you would the be, you with the on guys growth. guys, I soon think any really you themselves. if program for like your like you're stay the of others on you My or speak in want comment to certainly maybe closer growth close what there, for that, to operations Joe speak agencies. about to just getting Yes I'm one investment I no steady Inching getting guys themselves, how me, for to from upgrade question got maybe just grade, all should last wondering, think that versus and to look think you appears September sir, Moody's investment again, grade? financial I or have

Joseph Foran

XXX,XXX up we'd emphasis the I the way now is we've it -- but be a rationale, on if size a complain a at but XXX,XXX, even there's if was agencies were there to was leverage a and point. Well, X.X X.X that course Neil, us, an tomorrow, it put we if me, or ratio day, doesn't be and than to the of be it got candidate make as is our know we'd two barrels they they've better

they do And so of they seem the to, pay size than sheet. strength balance the the more attention actual

who's I most for that -- situation own that what do the a to we'll too the very them -- further the on pleased in we to pace. we're much. umpire upgrades question first of think real good this and and next They're and were things do if They're conservative, much good candidates get doing. So, was it their going year it's we arbitrary. we think keep we're they doing Moody's, But little greatest doesn't

Michael Frenzel

Treasurer. pile and what I EVP said. Frenzel, onto Joe Michael is this Neal, And Yeah. want to

to that very The we really think size. agencies do I focus upgrades rating we got. pleased were get on the

in made done continuing shown to probably record through credit that strengthening that little and really in also think great on but Matador we emphasized mattered our really the to drive the they factors see that However, financial focus the to It they the value considered committees. balance in there. the that cases weighed in work shown and And discussions their those our to and well really record prudence they to corner. are track because track small how has Matador has relative I us improving bit Matador's was really rating, the a those much sheet

Operator

from question KeyBanc And from next our DeMuth Capital. Slate comes

now open. is Your line

UnidentifiedAnalyst

Key. is in guys. on Tim Good wanted [ph] comments to Revan up the San This on Joe, time. morning your Mateo follow from quarter. Appreciate I the

a But kind and I presence? your it. of about can in cash million was for options sheet you big the opportunity talk know there. the of Pronto that. for to revenue a record the $XXX in on of how at We how the know driver lot So M&A appetite balance is look set Delaware midstream on is your really big increase and there's

Joseph Foran

target. about avoid What will you will targets, just question get to opportunity sometimes Tim, again, But try patient that And is opportunities because great the day come you a at here. every overpay virtually a on be and a target. you along. look we talk when into we Well it's if

as and see A into Spicer Matt we year. of worth recent anchor we tenant modern leaky see I'd see $XXX opportunities, in and put replaced, of just old people we infrastructure buy in adding the makes we and we lot them, well talk see well was good, what's room group big still Willy's that as as or to or whatever we're was way to, everybody's look when are one's the of the all president, done first for it, shareholders. So needed don't for as opportunities our million other it way this consider do to looking board ensure we where is there where you to go our everybody's empire but one came a you'd and something. it's box be say, the opportunities here what best this, prepare job best adding those others see and about going -- builder and meet where We already make wells, it drilling. on say Greg better where trying we we're look and as and Billy been Billy? to our Matador. we don't as there Brian at the there is some have there's drilling look we're Billy's that the and a clear. per work. that we'll not could And together, or out aren't to together act, And that in We saying if for opportunity of an but no of same areas and it great aspects as it, be the we midstream most pipelines it's replaced. likes drilling provide the so for doing to of we're also for profitability that's can Craig

Billy Goodwin

operating like ready, and the Yes, sir. side, at the in the we there's powder operations, parts at. on different Joe looking of other we lots opportunities. that dry look lot going And we're President, different to we of things and things options. said, that of things all we're a have There's where the weigh midstream keeping on basin do time all the and -- against

staying just, it. So exciting time after and it everybody's

we winning the keep few So game, but smiles now. a more see

UnidentifiedAnalyst

that that million sheet. the One to number I balance related more cash color that $XXX again, Okay. a is on appreciate front. big tuned stay we'll and question on

meaningful quarters, be price, frank, moment your relative not is You've but really in doing with it's what peers. a quadrupled yield the lot at doing, this share of a this is dividend to class high problem to the recent

of matures, you is the more as relative point, some at yield right peers? that do there's it think given or now in to how you about dividend sort SMPXXX minimus, a de with do the think line company So

Joseph Foran

of different large big is board of and all I thing of lot all owns companies shares. all our are VPs, one staff about lot that our our Tim, am, shareholders. shareholders, We're us Well, that's a a

that that reward we shareholders checks are believe, think like company mistake that's same your Make treated benefits is send its way a fairer based own. not the that a to buy is and the think So shareholder really many way dividends the a for cash they group on seem to dividends. all the no they to can't happy of we that back. back them. because back And It fairest small if that their do directly -- of that. you cash part just We from shares pay we everybody

we share like we like that. So

slow, likes us are out is and dividend in look a that and year-to-year observers that's they We working could long as we I and hair and and to paying that we sure. look where next at with having things and a glad little that $XX cost the a Matador reserve we're at oil it but come. stay doing tortoise that'll we do guaranteeing of still are point feeling and return a that to the the the at and that were year better that so smarter, look feeling many things increase if to other range again, sustainable all it and up Annual want first pay our looking Better also but it's to years fixed and we the year that I'm companies it And every cost want of want anybody build better but matters. livable it the and clearly year works inflection of our right hope the were with slow, the areas to that could the so prices some up always way look one happy what's that's we're if on be Meeting, increase of I'm it's start And to going be I at to and business We'll we we is the you term to they're enable goes get sustainable be, to recognized are methods do? to the right be we've we bit at hopefully and now be very paying present, these a to it don't a and hopeful dividend think one group. do those vote comfortably will as you're and the dividend dividend we that. results sometime. good. And continue think had that be sure fairest companies always public and like would then that they for each the but shareholder We to way that. volatile is at dividend shareholder in now been

UnidentifiedAnalyst

Okay. all Yeah, that makes sense.

think dividend going the long I simple base is the winner. term to be

your So comments that. everybody. I Thanks appreciate on

Operator

And question from Zach our next comes Parham from JPMorgan.

line not is Your open.

Zach Parham

one question. Hey And to guys, end kind taking X% cash for and how and that thanks that I Was some of Can In of 'XX? you on you the just expected we XQ. us trend quarter, during reported continue taxes through XQ level all on guess just related? around year. my the first you pretty minimal were taxes cash XQ to half of you had expect taxes cash number? do at the that timing give color maybe first

Robert Macalik

Hey Zach, Accounting this Officer. Chief is Rob Macalik,

The it was reduced reasons. QX zero XX $XX and hard right. to expectations price tax really for taxes expense for for the tax and other to June in teams basically It the year really million. to was XX two and on. planning our strategies some you're close So our really that decrease around from worked September also current strip

pay really the outside We're taxes that million my we're our it share thing, we focus. sure of We expect fair right the with therefore cash $XX making right, our been team's working so. really to or get working that's about sure hard. and taxes, advisors, QX doing be But making

Zach Parham

how color And cash then trim access Got on can in any it. 'XX?

Robert Macalik

income It CapEx of is Well, very looking dependent we we're have. of just that. the upon that amount and the at amount

definitely of cash are taxes at So, at of go as look into that, we in we point the XX% somewhere neighborhood next well. for this as continue February, looking but we'll at year under to

Joseph Foran

class so I It's worked guys right sure our and it's because audited, our that the all make queen to to do that that we get arguing we've to it's sure high it make I audited taxes bill do, We've want think applies. audit now, my it try the paying health. we're a get on always them. that have Zach, problem sure Whatever had be they if a been haven't generally number check start out. will and state right make way taxation really to done it, we a of on is right they we same to numbers hard That's you don't and instructions but it's of times that

Zach Parham

Certainly follow a high up And any Scott's then volumes production question, one I class just acquisition, were earlier with Got problem. it. guess on the associated acquisition? there on that

Thomas Elsener

is Elsener. purchases. bolt-on this this Tom Yeah, We're always looking is at

bit Our together. of probably with job to think little deals accounting geology and teams have of great exact bit, the and working with number, land little do a know that Those kind May put most a production a I of Michael ton. but these but associated them, not a

Michael Frenzel

that we guidance were Yes, in last bit, we but gave our in when quarter, Michael. that transaction. little there right. anticipating we is a This had factored That's was the

Operator

Partners. And question moment Mariani Thank from And you. next one question. next comes from our Leo MKM for our

now open. Your line is

Leo Mariani

general, might a Do guys, you Gulf on know some side, guys you of and be the you quarter strategy little Hey today bit any in on more going Express, why number do 'XX. rough some the firm feel some look to that Waha? where take some pipes is offer Waha. I I the the firm. Coast that's to like what do firm Did had to don't firm help us prices out when looking but there your fact elect mitigating of to up fourth exposure you of you're might kind for at you follow XX% that can open more on And 'XX? come be gas alluded then know your to you offered done kind of production you a kind sloppy some that guys talk these at of Any us? have Waha just percentage? just you about throw more like you additional exposed also seasons in guys maybe in on could and

Glenn Stetson

think, answer. what and I third through just the as what Yeah. are base being Hey, that always moving And out amount Mateo's give before, just it. it volumes depends. produced are again. and it Glenn evaluating of I party really to the depends again, then volumes you volumes we're Yeah, facility what But of this is certainly said San that

is we on And pricing variable. can GCX, all we have, $XXX and the has of and to, Waha, the then volumes, those to the so, have be but the both million again structures remainder potential that fixed exposed

yes. So,

Gregg Krug

Yeah.

Marketing. So this EVP Greg is of Krug

Glen GCX what has as the piece. far As as that said, as far is correct

seasonality Southern Cow transport have on also to We SoCal.

on we So, to, fixed of last what for than there like on that a that's the allows our that, it's a kind on as Ship far gas And the pinpoint that years, mitigating of little already did, you to allows, committed kind ways selling do Houston better instance, exposure transport a XX us basis taking we of deal timing for and going have that based and to for years. Channel. to may have be Waha, but out summer, as actually are XX --

transport those up look all that far are that, at time opportunities. each as we to deals as those come things the that So have one of

Leo Mariani

Okay.

are take guys left to that some firm So of it the quarter just of you to 'XX. on not did clear any sounds on pipes new that, be the on like have coming fourth

Gregg Krug

No, We not. did not. did We

Okay.

So,

Leo Mariani

dent program talk bucks did like bought bit your you you more bonds looks just folks another kind here about appetite of those? tiny those And of bonds little gears of Obviously Can to sort just buyback debt kind right. shifting bit to is point? bond you bit can in you just at it's kind so take recently. little the a meaningful of edges October. that more there's many back think a to far of in a going All about speak number of around million be You to quite And think of this your what going $X you've pieces forward available little buy

Joseph Foran

to goal this we'll we sudden, the on with is the we're all be of, we Now, that at again. to entering reach we'll a open that we books. keep that, be And we probability And that in what in had we year, market willing some Leo, the open probability high looking like a were we're opportunistic on market. buying were the buying do, might and disclose debt as goal we opportunities, set

because in and buy don't, the So the fall them. if increase and professional has manner. below We the we're And we're bond stock, own buy to cash that know get bonds but our expense the the to have bond and par to debt buy stock sent redemption buy interest of handling to us. the in who likely bought we that and to us prices bonds say and who because trust on when and we that we agencies we advantages partners flow bonds that develop we to rating much found money And know people continue mutual the save bonds out. that we confidence the the came because came allows ultimate us the People a confidence. the some,

some have to water the in toe our continue keep we'll think and bonds. we So

with of during now. needed conditions, bond On the bonds some we a holders it. very the was we redeem provided bond think the as And our situation. to well would who shareholders. other continue relation a the We more our year I to holders things appropriate way our build as win-win with just try pleased hand to work. we'll that liquidity And And under

that do the keep want we feelings we So regard whatever built in up to can we've think up already. we good

Leo Mariani

kind at, of And of done the have to that's here lot several in there Okay. deals and just small. I deals Matador's kind slightly hundreds out anything one I m really there guys the you for noticed recently, of of is been, a last is look appreciate that response. millions? Just one What guess appetite me. larger

something? anything So up, on million, every can packages you the there kind there? a bit availability kind just of million, $XX think little is continue do you curious to other $XX And deals, bigger on million as an of that, quarter or for appetite $XX small of of put out

Joseph Foran

deals, done proportionate size. we've to yeah, our Well, big

treated saying that big was we $XXX BLM line right. we value. and nobody's wells $XXX market that when us example, for For didn't the our a state buying when percentage spent spent market the those now which that we've that results But about have, pretty million, BLM I, drilled But the do of very roughly. we deal, on then million had we leases XX

when $XX restricted our put acreage. usually not just they that. have buying We u areas. that the they're not like in all find to those in least $XXX company it's deals. we're, dollar operational So million deals selling, a concentration or if million find they're to a risk And, choice we're hard It's have bigger that a

are we going tracks So that these we, selectivity the joining. like for of ad

deals but reduced in we've are them we the staying of some can have like, and we've and it, tried appreciate bid that point debt. operations are risk on trades we, be have if bigger incorporate or the the cautious we Our, neatly but inflection again, to of and because outta center we and

volatile, double go on $XX of or here you and you're right at a debt digit now We're growth into are If when $XX those lot high up million taking prices growing risks. taking million it's without risk.

to of risk we're drilling time value risk have, are hey, we're, value so a whose without it's currently we we it. into a we and opportunity, risk. program. Matador lot to If And but go But no or for make adding we'll acquisition what the a comes more want there our than a fit that it larger factors creating

it to to incorporate We a in needs So plans We integrate need our buy in we program. able area. Wyoming, able our drilling to It to don't be want it. if into operational price. it's need good some be even to at be to and

a the to quality chances if but as So the growth. of we'll bigger lot enough, price want after unless us doesn't that to of the want We very is our just do And the build to into don't the go got on we take deals. go we bother has debt. emphasize for big average deal to willingness end did effect really in more deal of deal size the

well quality smaller quality the to bigger in quality game fits our that and straight to overall a compress be easier properties very It's if own in we'll operating with and high. for it go the there want plants. here the our You is a fits and deal, but deal play we

really there, wish we out they'd And a deal so got see come good anybody's us. if

Leo Mariani

Joe. Thank very you. That All answer. was thorough right. I a appreciate really that,

Joseph Foran

tell mean creating we we grow how in most thanks, didn't a Leo. give how but watch, I'm, thought Well, value way. again, to to you to I build that day do the every

Operator

Freeman our question And comes James. next from from John Raymond

is now open. line Your

John Freeman

are you XXXX realize all through the working plan. I still

years Can of a a the kind of all things, stood the you side level maybe equipment, chain that, how have the, you that's you some locked past probably lock process? oil and you supply maybe would've etcetera? terms sort and just, in the that? of base where in you, and you, that and tightness of those of all from of you the than sooner that it equipment give dealing of you'd Just in sense necessary maybe a activity go in sort everybody's where with about it to already kind versus just lot Just like the, service in through given past. with process issues of go about especially going where today of stand how globally, ancillary Do have are in, certain services all those steel, lot services you of secure, years seems

Christopher Calvert

regards John. we supply relationships with with since to do Hi steel, that that the seven we performance transparency for, other those been of we're that we've the one upon have both liking rigs we one staffing have, on to and another in steel, we've that that, from service due the XX really plan it logistics to that to happy with on chain the to history and, any form we that we're whether and trust have, with that with well, rigs of It the the SVP with had and business. side is operations. cultivated drilling the of no, and we and well. standpoint, we or or it's going results have And the are has them since, drilling have Chris in and Co Matador year a speak, rigs in Yeah, side, seven do, seven downtime, sand, that with to and then working provider really say, years built it's And starts they us This that kind we and our down XX as comes Calvert, had them fuel. that operational with steel, constraint, planning vendors to have, with that so have

have as securing on side side, this Halliburton, such location. been sand as into sand of and far XXXX, services service with making these the And name Matador's we've we sure year happy the we providers On that into, casing with casing Universal the with on on it's quarter working which have on, it. as fourth

line it's that of be. side, service of seven fleets our and sand will the amount our the and that with those providers them, into On working frack sight giving activity them our with into rigs giving and plan

that confident, operate we're execute have where Obviously that price going we kind We're plan we a goes, operationally to we've that plan of so the we're our again, confident continue forward. what in position of and And in into high have. once we at and forward set confident we're to have the set XXXX. push on forward regardless to and level

John Freeman

typically you forward, been sheet. I of years curve also balance just strength appreciate XX% But years we when all of should question I Thanks, play into protect follow that hedging all then in all that my and basically obviously a given the XX%, that in leverage Cam's just strategy, more backwardated Chris. been to the that. hedged a in this you the be past expect point, just almost And up you than at much then going hedge given the philosophy's like forward, enter hedging, the of maybe going year, would've been all at just kind just roughly And you are pass, zero sheet. assume less you balance does lot kind that? how

Joseph Foran

down and on or coming crosswise John, a with so debt lot been need of really always notion a good you having you philosophy question. of when the been don't get that that's philosophy's you our that debt. to I've your prices Most, grounded hedge the protect in yourself

your So the have so things. banks tripping debt, you at or a need up debt calling when amount not hedge of of you're you certain protection, you risk in

a each been our in we've maintain So time to And we've group. that. debt bank always situation we our tried have, on never with

We always renewed and without us And part a I they've back. in one any never credit have and generally our have that. bank great had cut hedging played group change think

region. Greg have we we still which you don't Now is hedge, last in have did what where There's effect that to summer do won it debt, opportunities a don't to.

Anton So subject Waha. thought had. to clever that at very and we on group his stratum that not problems Greg selling a was I and were a price and fixed

it as summer we you it, did you this on shouldn't you just him it, different of sometimes of reasons will business, and won't do native but don't and either added way the hedge do facets than is that cost ways there's There's and we one our we'll too to need it on we do contract. price So, in if is lots in did buy the, it other yourself, an fixed afford that you or it protect go another. scenario. price different why But to

doing We a of our to So course, you you use of, a to useful we're of charge want reflex John. make But question, or as it it be it. are your that in Yeah, area. think the to to we really we really. We'll won't, and about hit I in other just more Michael, effort. support Mattor, and we but but think a a out? obviously, matter to, that tied main backwardation needs obviously we're, thing your difficult a of And use did the want we it want about What to sure Well, to it sheet. for little opportunistic I as to tool. is activity. want want be it's charge kind it to how Joe, We right leave you we good a Greg in to think of like balance team hedge just things. be, makes bit good it protect do we we

and few and community, Greg I the a it's EVP them together of discuss that committee, are good as of that tell Coard whole Chief and committee and, and Elsner of we Glenn on have section all because who's participate, and, the that and available EBP decisions. cross participate Billy Tom of the and think a Bellinger Ryan, Staff and myself and Adams, Ryan Yeah, Chris gets I, We Craig Chris Joe well. obviously, the President obviously to makeup the and all Well and, hedges company. the Goodwin come to participate. a we've

So we've got a good cross we to be it. section about and try really strategic

John Freeman

answers. Thanks I the appreciate guys.

Operator

no And thank closing I And call I like back further would Joe showing the over to am questions. for you. now to remarks. turn

Joseph Foran

to these want Thank is lunch we'll on you substantive you. have your but important and sure sometime us everybody's we've I calls. come just on notes? once have see is hope more appreciate contributing with effort talk what was, not better our we, team with and in vendors than that the various this want for not us thank a these all And to in the is it and in your part we to just fairly transparent develop and real and and or to you to succinct you meet that see you is XX appreciate point I think ever got the And And this analysts invite that. kind and meet years relationships and with that new I'm gotten on we us aim all better quarter questions. we, breakfast and all come sharper like have our want shareholders challenges all. to run supply your we And all takes whatever and make we you continue Would each again but be dinner that and train about. of think is we're to want extend ESG what time. the make of We I'm time, invitation and we that so discussions more the chain. we to with, listening one, same doing or again, the to

we you. know, to please So appreciate want you invite all and

us and their getting but that's handle planning us why you that of prepared big feel all you that it minute, of and hope and planning you think example very think Waha last and, effect a gas here. when of to kind We worked it is It's weren't that way of work planning for on get you And new a time. minimal. ready. on on ahead up board hard the and of on and for think they taxes when, circumstance when long, were comes was the and an all Thanks it And a we're and and everybody. done I for sense professional reacting and and they that experiencing a for to our ready at a I it, We the the started the planned in everything welcome lot supply months always prepared. years pitching chain this and groups the areas, staff out. about that and in time good give We're effort is that. thought ground other else And the of staff You're thanks here for at part. credit our that being at

Operator

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

We use cookies on this site to provide a more responsive and personalized service. Continuing to browse, clicking I Agree, or closing this banner indicates agreement. See our Cookie Policy for more information.