Matador Resources (MTDR) 25 Oct 232023 Q3 Earnings call transcript

Company Profile

Participants

Mac Schmitz	executive
Joseph Wm. Foran	executive
Scott Hanold	analyst
Gregg Krug	executive
Glenn Stetson	executive
Gabriel Daoud	analyst
Brian Willey	executive
Zachary Parham	analyst
W. Elsener	executive
Neal Dingmann	analyst
Christopher Calvert	executive
Timothy Rezvan	analyst
Leo Mariani	analyst
Robert Macalik	executive
Van Singleton	executive
Trafford Lamar	analyst
Kevin MacCurdy	analyst
Shelley Appel	executive
Hsu-Lei Huang	analyst

Call transcript

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Operator

Good morning, ladies and gentlemen. Welcome to the Third Quarter 2023 Matador Resources Company Earnings Conference Call. My name is Latif, and I will all be serving as the operator for today. [Operator Instructions] As a reminder, this conference is being recorded for replay purposes, and the replay will be available on the company's website for 1 year as discussed in the company's earnings press release issued yesterday.I will now turn the call over to Mr. Mac Schmitz, Vice President, Investor Relations for Matador. Mr. proceed. may you Schmitz,

Mac Schmitz

and for everyone, Earnings Matador's Latif, for Conference thank joining us Third good you, and morning, you Call. Thank Quarter XXXX

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

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

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

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

Joseph Wm. Foran

ended to And pleased going or addition that our year XXX,XXX to expected plans down, feel the year the to down, to in It's better. was are the than said year and inventory, more year are questions, We outlook Thank for today terms. debt BOE I more this but we're you be to pleasure that we're a up also report you, the and Mac. expected. XXXX finish to And XXX,XXX. we very production thank you proceeding options equivalent, even that the simplest XXX,XXX. we've you look all give to beginning your we are put for as And report pleasure we be is the think we're better and listening and place and in. our going at with here of report opportunities excited in It's we into being this costs at to up, at a began the XXXX for is wrong.

outperformed as we one we've strong is X that made is, had to peers as we've against is would the slides I we've which And ideas When the together. year the years as X As in shows we The are our since today, over market him team but has like grow. performance and think to materials, And the went selected. good me this they one should up really along. this about continued but B, be cap People year public, We've realized.I confident working projections, at around the they are with we was somewhere come Xx. Slide some prepared that goes credit. better more I first XXXX repeat second our billion, million. we And you, -- give the will strides. our $X.X given done on better.I performance last get is were They've I shows well interesting as Matador feel them. all IPO. great is has $XXX performed, but the point struck

to what us. We have announced deals were very meaningful

recognize when the the wells. we these bought it, and thought but we did one of up, it would first And a BLM the leases, then to potential big was go which went down, the immediately again, HEYCO -- surprise us. announcing anticipated The market the deal we things was thought easily

from of things X XX stabilize, close mile to the than to went we paid wells wells these more, of And that.Right going miles them, things the XX% we this again, wells instead out COVID up, some it into things Stateline in it were deal, or we and $XX X a and to drilled besides and production as plunged went wells us you our these leases as laterals after in of to We go dramatic but effect at the year start paying XX% our wells plunged. from happening but on turned out have see of on the being and being less that, now even barrel. XX -- enabled and wells

You that's higher taking much where can levels. us see to

instead down the again -- announced going the and we went deal up, the and of it we charm, Advance again. Now -- but was third time

things us. for but -- good then, So since have been going

then our years again, We pleasure. started As XXXX. emphasize the have public employees we of Slide at that in the shareholders later, see, and employees wells. the brief had cap when wells. plan our of of right And in And XXX,XXX just XXX,XXX history X are it's over a pretty large increased dividends Delaware year, dividend. At like I position, we X all and we've year, our the This with is We're we're as XX% like you to as here. to, purchase end our we increased wells. participating first that. production, headed the XXXX, would went the math, mentioned, including XXX all market stock. of in other in we And in it the XXX got can XXXX, the direction.Now we've has had simple C. of I now time, important categories

again, we've now you as and So of from raises dividend, $X.XX.The deliver. X that to I the going of at other vote into it. We're progress we're the appreciate the get confidence had But staff. to try pleased

production got So up. we've

better are than our ever million. selection and We is inventory think is down. $XXX costs down debt Our

we're So at $XXX million.

of almost bank our $X We group. have under with billion RBL our availability

to just you better a on in But opportunities than trying we're to only we're ready simply the in for that, with we're but along the be to count might questions. plans we open in that the stating I'm has lot not uncertainty And any perform the everything, confident come up we're to and year you I world other whichever you the in that but in all even way this it -- and again, want think address XXXX So have answer we volatility goes, think things that us side, progress.So Congress will make because operations and of good happened the ready XXXX. for that in and making or concerns have. accordingly on a for plan can have floor I'd

Mac Schmitz

will into Latif, Thanks. Q&A. jump

Operator

from first line the Our Instructions] RBC Hanold Scott question of Markets. of comes [Operator Capital

Scott Hanold

Joe, early those of performance give on late starting of think, expectation that the record some of I had acquisitions and of of Could the Advance, at and August, continue September. first batch of highlighted the kind bringing in recent I over quarter. any the one with time to kind you just and to, of in guess, context they terms initial you you've can some add Congrats Matador. on some sometime hitting provide. data respect your wells, importance you And been in of some to I you where you're these all mean, volumes made with most tangible this have value any

Joseph Wm. Foran

XXX,XXX. we Scott, first to XXX,XXX the the is said going question. at were XX,XXX, of at we really year, the were you the we to thing end Good point go that year, and to I'd of

than bit expected the that and it's better maybe have in here rest a group acquisition. come our the early expected. we But that been are it money Obviously, in so better to at and little on active as looks And but Tom a the of bit projections or area we're times And XXX,XXX. yet, the had little promising we've been to prior maybe.

So it just we fit on about also on as adjoining perfect was we've acquisition rock what good and the we was knew leases just an that as had had. like area, to

been as no So surprises. midstream. in pretty real our much It's is no which nice has with big projected, fit has and surprises, nice

So was magnitude, into little something when that have the acquisition we of out. always working appears wariness to you bit the of it done. but -- go ever a that There's be biggest

Scott Hanold

Is those you a online, get assumption? more of we'll I of And the of wells performance. that some typical kind would point, well at that see kind update on Okay. assume reasonable as

Joseph Wm. Foran

We all curves we glad and I feel did production a was decline for history. but it's think, do is just reasonable. we milestone Everybody important more we well-established a it. well-established it little Yes, that And think Matador. time. -- And looking here need good. then very We that's, really another

working they're private we've So [ and ] was equity done and transactions and Merida operating sponsors. have small, who large enjoyed with

it's think I type a So deal. of win-win-win

Scott Hanold

you that to And be production. could means know the the obviously I XXXX a on and have need where that that. whether think per first about you rig as of production you day And year indicated Xth follow-up on on you it? you with if CapEx any for color talk a potentially think at you rate plus XXX gave midstream are context Okay. what And you question, year. finding specifically, that And number going about really all part partner quarter now appreciate a we you're And last what I Pronto provided? and next you in adding for some to.

Joseph Wm. Foran

to going is add really new to we $X.X billion the -- it's Well, small for a back the that $XXX is paid we one to in first, can really small million. and that come a question. I'm take Advance. comparison if good That's very plant, that about then one we that's a other

RBL. up, So increasing. we billion available have on flow close production is Cash is to $X our

staff win, a to and But with bring opportunity strong the deal. Pronto same San clearly, to just It's close ourselves. it's to It's some good has Mateo somebody. come growing capacity. it. good experienced in So the deal.We've way. a win, staff, a it enhancement for that partner, we're And go operated didn't production to the on the the to going table bringing it's what if is we fashion because field the we're handle of ahead they a But EBITDA proven do it if had and group,

can to short-term what some capacity some if We firm that's do. want have we where switch we're to assured that capacity we

along there. plant, -- moving economics we'll we're optionality to it's we look just like if to So there's but ourselves. very this will to keep are as going think we're somebody we We to listen, we're it very, the us, such, with happy get be it think involved, would

it win-win, interested. very unless talking I and do anything add it's Gregg about we're as to that? Gregg, not just you to were want So

Gregg Krug

that's Gregg EVP Joe to direction hit of we No, and looking Strategy. of This as you said out and want again, that's only I we well. with comfortable that like the comes a to head on said, think think Krug, us. on And we it going here a -- as we're being our possible doing way We're Midstream Scott, so. partner, for And and gas what there it to we this the do potential third-party. the looking the for. to amount growth own, is do the that's I the go. Joe that's situation is win-win for when work with -- that and think drilling we're the I feel Marketing something if but it But definitely could also able

there's gas earlier, of I that you've plant -- we're be with with there able to also and being a on at are mentioned definitely do that to as a position opportunity expansion well. as able to good connector, lot we third-party we the take think really out for feel looking And the third-party.

out So like we're -- there. we opportunities our

Joseph Wm. Foran

optionality. that you glad just give and miles will swing we've and this I'm will mentioned San the the there, ] out Gregg connect us Mateo extent because and up through plant that around of the connectors XXX got pipeline Hey, coming more Pronto much [

question an and inviting rig better, hopefully and in the your we're So going there. have adding control as here, and particular, economics the appear a full particularly to from Scott, I are on economics answered XXX that having getting Xth

So I'll your first answer repeat quickly. if to you'll try question, it

Scott Hanold

it that? XXX Yes. that kind on appreciate Yes. plus And a relative of where your rig, comment with day into that how I prior -- rig does Xth that. to No. was Xth XXXX, that fit does

Joseph Wm. Foran

Glenn. Well, year it of [ ] the view Glenn? to we'll reflected increase Xth being My to in the I it turn in rig is our think is I and to and add that's more reason the number, confident XXXX. present from we're why numbers XXX,XXX part that

Glenn Stetson

the when is of this EVP We bit we it a for X to rewind Production, and -- little we Advance rig hit there or right. about months just Glenn up too, to Yes. rig. the just did X.X a we we it properties, months -- Xth Joe before did operate Yes, dropped Scott, picked Stetson,

release this in really timing what's just so And rig. is on new that Xth

abstract. so piece That an soft XXX,XXX. rig, was to did of but your timing we Xth was XXXX what inclusive was And the for the point, guide at

So up XXX-plus. QX and pick anyway, we to production in growing rig to that are look that going to Xth forward

Operator

Our Gabe next Cowen. question Daoud comes from the TD line of of

Gabriel Daoud

midstream the timing in San the back. the be ] [ Maybe at Advance the in that next on to the Mateo, back the you go of full San batch of And that wells kind Marlan could like? following some wells this if I Mateo impact you back just lines up eluded will angle know divert we could flowed and just to those XX capacity, Joe, gas how [ flow guess the how but of Scott's us being you is But lay and And is are way response. maybe does Plant curious would ] the current how plant? and question. be the what full down

Joseph Wm. Foran

we we think people gas for part on another a that's some score you taking All are not that full there minimum that minimum their in so I'd it's for some simply again, has an Right delivery and that room it volume are, of volume interruptible out production gas, questions. now, of we're can that production can that confident one firm What at whole basis, that's, deals that a extend attractive. on we We a it flow but more that customers. what market Well, sentence of bunch be assurance. reason is is tell capacity. see

flexibility a did that we're the on basis.Gregg, up option right? leaving leaving to meantime, by it ourselves in that on us I or bring third firm to basis. take optional In parties the an say space keeping interruptible So the

Gregg Krug

right It Yes. -- an going now that, was million mean, yes. plant I some of $XX as now. It's said, into approximately looks is that [ But Yes, like ] contracts. we interruptible -- basis. Joe have short-term on right

could on do that also the -- interruptible by it which a the for first room done we push those gas capacity that And are capacity we we're bringing connector, out. push additional have of the year, Mateo having far San terms next have and flexibility we us we into out will So firm or then additional system. over quarter which give the once could up, anticipating as basis so the as

Gabriel Daoud

of CapEx how question volumes. helpful. about impacts 'XX Okay. the my Xth would And on then That's follow-up rig be and instead maybe asking

a Just does midstream, curious the to Xth for some how and 'XX of moving XXXX? the rig pieces on how that budget translate relative to

Brian Willey

Chief and Willey, Brian Thanks Officer. the is that. for This appreciate Financial we question,

commodity year, progress and day up the the sets which XX that year per I think great we're that And look as look in it's mentioned the of to into or earlier to something I normally, early. and the we're in for that thinking a next expect we call. I'd tensions our those we'll the next the think in hit the about with pretty better in market and go in quarter. I nicely do up I mean that obviously, environment February details Middle as year.So into in that CapEx, it's East mean, at the quarter, we XXXX. at are have evaluate the XXX,XXX fourth growth wells we set Joe otherwise. XXX,XXX us future being production first we well and continuing net world the in BOE BOE the also end volatile at

ahead our to plan. want so And in we get don't of ourselves

be still talk in able and of left to And more golf before about planning that detail. to a be played we so there's lot to done were

more expect year. that early on detail I'd So next

Joseph Wm. Foran

and if whether a to for there's got to piece or all options. if different East, scenario, whatever expands we've in -- ] [ war Congress Middle plan just the in A, trying together, build unable add, working would come the C is comes whatever, B a I the we're

And days have direction and within prepared if XX to go so a the move we're it. to in flexibility necessitate circumstances different

Brian Willey

midstream that an be the think and piece. optionality such many talked right, us. for exactly advantage that for about having I you're The Joe, years we've

C think looking well, piece upstream just as as look ahead support the the look A, that very help at having and having and critical different we B, that we at future, think side I option can it the Joe midstream the I towards future. is said opportunities

Joseph Wm. Foran

around in being say as being I is keyword rest to Yes. come one direction these our nimble, here another. move would to compared things or

Operator

Our next question JPMorgan. the Parham from comes line of of Zach

Zachary Parham

bit if state First, could XXXX updated that looking bit seeing if of at expectations? productivity productivity you with public the a in you're internal give in its has seems data, just average. down thoughts us what data productivity internally is the just I your some curious And But Just on general? delayed. or on and well versus is a kind line well that's data know issues

W. Elsener

is We're this our well Zach, proud results. of Reservoir. for Elsener, Tom EVP

think of. Basin I the great time, the have very them as basin the they a things the the water Delaware Many oil that of talked role we've years, proud really we've ESPs with wells online for some of other would done for that. lateral cuts anticipating our as and job and over will has made great these our much we're Basin, I And gas of in quite of Northern targeting. artificial has high we've Certainly, behave. in a wells team and But been all are and types they think a us, to don't the some come Delaware in way cuts low -- part so I the play our the Northern nice had really think lift. of great lengths MAXCOM operations I or strides think of

how really a nice job wells done Reservoir I Engineering the have in -- perform. think would our these departments anticipating

nice that think we've really I department. job a in so And done

Joseph Wm. Foran

reservoir job. good and we've think real on ahead. XX% Tanner Netherland bank all money. consultant, X the hadn't right group that, -- money -- engineers been has by a It's second had that everybody's done There And Sewell, been the groups same outside thing. the add, right been right on just on I been led I'd when we've a they've our and the been do

we figuring them profile MAXCOM has better like back ways completing we're kept that we be then feel good we're even And like than in seem and may were that drilling on really So well, have out the today room to we're zone. I longer, on our the see mean in XXX,XXX feel that some to we like well. can come and confidence. wells X can feel better haven't the And how room and but barrel that know more million visitors us I seen, more in XX% zone people staying barrels. a improve

think to we're we more by So there's well and glad for looking improvements, increments. -- do the better to we're each see ways

Zachary Parham

And Got follow-up. it. one just then

little the acquired color On statement was us give production Could flow maybe for quantify in the from those impact what on cash acquisitions. million the a there acquisitions? quarter, $XX you was and

Joseph Wm. Foran

is You're down. in to getting difficult probably the sum that break

just Some go things Brian? mix are in items that steep of to at it, a small, a you hand are kind where ] in. want larger. of But [ whole part It's some a take

Brian Willey

Sure, Joe. well. Joe very did Brian. say I'd This is

operated it's of of mix. non-op our acreage. it's it, think we And a at broad got those. it's interest I as It's new in It's got dozens deals. look a mix and just, it's increasing wells included,

this does this this organic approach years, group, for talked growth. company the tremendous about job. kind land this building many We've brick-by-brick of and our so And a of

and the And to Bryan and doing in set ] our continuing Jon Basin. such a team deals Erman the Van these good and in job just Delaware to brick-by-brick does out position that Filbert so to build rest [ of the and

wells over shows see back that increased acres, years. be reviewed talked to on I we've the front. the about we're and also had over XXXX, XXX,XXX how it's earlier And to and that able Joe number we how of the growth in around think It increase right acres. great and now acreage net the and that X,XXX slide

And so land a the great job to team.

Operator

of the line question Neal of Our comes Dingmann from Truist.Va next

Neal Dingmann

all if your would how to various know nice maybe Joe, I a suggesting I prices plans boost would you reasons? all year you an change love very way, a activity about my few plan minutes other -- Or question to just are view create and I'm mean, curious decision maintenance comments you it. do add production broad ask first what ago. another I on on production you planned the doing could are just what to And many by fell capital value. next E&Ps. your thinking wondering, maybe for another Xth you if Congrats and quarter. limited I'm all just and how rig question,

Joseph Wm. Foran

you've the pretty all Well, guys met people. and here, minded Neal, they're strong

But [ the change pretty to opinion, I'd hesitate it important how best or to around to We acreage. my say prices our what what's even there's our some to way on -- change, firm. $X coming are if they So say I overall have that reflects specific everybody Xth $X changes think some and ], do I because else's pretty even is to it's in discussion be rig, think, that this evaluating to active the that is is go. going that rig not wells consider drill where much material you'd commodity

this and thinking, in we're it I going our rig to this on don't We're so little well, we're rigs. go. bit, take then a point, at And on may let for think seriously laddered we

event.And have endeavors say we doing they've also rig has us. and And swan worked and in done optionality, pretty that a with well partner unless darn but Patterson like the of to together adding the same do more I'd good, it been efficient Xth improving us has black so see looks thank economics So great in these to drilling can't we've been want I were cost Chris help I Chris, our Patterson supplies. this happening fall was Patterson and on the thing worked be dramatically. good really the had prices that to structure and if see year, you -- out that? us

Christopher Calvert

Co-Chief Operating Neal, this is EVP, Chris Yes, Officer. Yes. Calvert,

value is the Xth with it add we to on the is The to important idea obviously, relationship of well, that talking the time extremely I rig. that were something the Patterson us. in. about We think Joe right said place that

or we're days foundation of way has in of been an very things only of cost-efficient in competent comes not reducing a built a a a think we XXXX, high-tech expectations faster allow well continue that also in can costs -- for to what with to and drilling It manner.And exceptional a more that our is to us so rig with Patterson goes the this that execute with are, lot come know that a understanding Patterson super-spec plan how you decision I execution to is but what things way, foundation continue wells help that back decades, the comes knows. our and And at with execute relationship look comes it drill like of it something It of these that. crew. reducing rig. us really under

that's high-tech us it's but obviously to know the like understanding us, continue be rig. to front. operational we're important going a drill expect, that we longer allow that and so is what to to that, improve on wells the able optionality super-spec the very U-turns things to like to laterals, also And going It's

Joseph Wm. Foran

times there Chris, first drilled that that Patterson with back have One XX my Patterson, really or subsequently that most have is the don't tough guys when out well always other look we progress. prices have make we history our if predecessors we've what history you I'd feel done, we go we either down, when Patterson the drilling. their and a going add to, long at that stop and have That's been years drilled wells. get times that is And

down, Patterson means, just got wish knows a drill start we going their wells any Each sequence location. like planned flies. a we've of for on not and rigs them prices by prices fit time dropping their don't go that I ever So equipment for to to bad but as rig, the take we're

feel that so And rigs think us the And keep we going the see most go we're that's Chris? prices running. even -- times if we down, progress. make I to you'll

Christopher Calvert

did these operational Stateline seen XXX%. Yes, frac. during were something best of, in, is was the X we times. simul mile commodity it length cycle some things a oil that achievements, these those function we've are into pricing very a whether where We in That of that All down of proud price. and wells, laterals, COVID work down dips was extensions of X-plus some lateral environments say, the when done make

we that maintained of And today. of wouldn't prowess we be about have so level activity, if didn't that have the talking we some operational

Neal Dingmann

maybe don't 'XX And all for the that No, goalposts some makes just Noting but issues guys question. the wondering, capital Joe, around about to a And Do just some maybe in I'm better look just or have you add expenditures. I'm higher are question I'll my Brian, guidance, that you, release, just the broader maybe like next that spend you potential year second production, sense. given able you talked details. a production. then, you the have expected. than higher specific give but mentioned AX. wondering, the around you you might see any what expenditures and if midstream

Joseph Wm. Foran

that be if Neal, comes it it share giving And we'll we'll Well, we've earlier, you. with announced February, together detail. you be this I'd say, to just in happy

Neal Dingmann

Okay.

Okay. C, was just how I sounds given and good it's curious go. D, the E continuing like to

Operator

by of which question, Please of our the Rezvan KeyBanc comes from Capital stand Tim Markets. line for next

Timothy Rezvan

in on gas point time marketplace. it's back one a of a and bow XXXX the big circle to tie to debate processing wanted sort more issue on because the for I try

in wells with year You're ending XX the progress.

to plant and don't rigs, XXXX. X a expect to operational committed new You've before we see

or that well that as trying you're build the to a going you do be constraint in-house next So to program you out you year. will have your either every have drill level what single bring confidence processing? of will Just schedule, online, understand on third-party

Glenn Stetson

Production. Tim, EVP, say Stetson, is would confident. this Glenn I very

to X these looking X now plans have other sure make our businesses of its for with development the talking capacity. midstream future to and Pronto, well way and that worked we each We businesses are have the looking into about -- adequate side the between we have -- business, together, the that constantly upstream the

obviously there's variables of is The that. how processing and for get The do basin. -- one. And is the that another. account So gas out then gathering multiple we

we And having and out We different comes ourselves optionality. our and basin multiple pride in having ourselves of gathering options on having pride for to processing. gas so when getting the options it

that we have our so Joe some of more for earlier, at connection where -- we Ranger the in something to XXXX, swing into cases and prolific actually from have Mateo our over this Gregg gas.And to down go will lot to And redundancy Advance look there. as so then a it is properties of and some -- provide options for San to we us highlighted in we more gas facilities can capacity Pronto Southern

are we in midstream on for that's businesses that basin, the many ourselves your possible. as as flow all of nature the and are assurance different preparing scenarios provide the for of So activity But again, again, our the strategic that of Matador. going having really confidence I out. execute it of is as we again, upstream me on in the And to a gives in business, certainly, put ability plans lot unique production, and to think, somebody comfort, who's charge aware

Timothy Rezvan

rigs think management as cuts Ranger, of as you in the terms given possible in across really the in the but rig do a gathering it footprint. follow-up, year a appreciate around XXXX, answer as talked related in spread high remember your I XXXX, oil ball being comprehensive the had there. allocation the How about I about then And it pass to Yes. past, question. to

W. Elsener

very the of. asset Tom way we've think again. guess it today, We've little all as talked is areas Ranger a very way. I certainly the seems bit it we have about Elsener is a this meaningful contributed proud in the about different wells, -- Tim,

a of wells in Wolf laterals many, proud for the some the These over been creating where of drilling infrastructure making several under wells in has of years. online X same been Antelope and very and some many big are strides and the fourth have We of the some we've Arrowhead those. our shallower in here Ridge quarter, in Rustler Breaks the great reusing last out teams years. horseshoe targets pads new actual coming area mile

around. all certainly, contributing to early of a today. into are them our think in meaningful do I very really too But spread so all get it's And those But way. we'll details teams probably

Joseph Wm. Foran

the want for the detail year. today. of I volatility come do going to so fall you. as I that on like but timing And these interest It's all our are, come you have as in options just and to would have but it's them just all an Congress that may the with to But see together, not best add Yes. to by agreement. numbers we'll have things it end the you'd them today, to understand didn't the in We

you'd You the think you rather are, they like thing. it but see -- to don't same happen in

plan growth, plan what's they're a you're sure going going You'd may and like the not something, problems the you, feel that do meet announced in is we get XXXX But shaping necessitate to probably going as bit to better to circumstances have off to even fixed little the resolved that we like going that change.So targets or outlook a the and or resolve not we've XXXX know to do XXX,XXX. very plan is, Mid in them the until is East. that that But them truss already to do XXXX see better we're a to happen, positive. And is and to to be [ to ] up. those we're plan things prudent and as is good beyond

got the cash of we're the flow year we've going plenty free debt, to We're that to we're So best the going forest to and and growth. production I trees -- its have as reduce use that have plenty and continue to suggests of whatever wouldn't get we use. lost happening, going to optionality in realize for is have

you to just a that encourage we for strides of I ready made So at for we've times, bad record in that times environment look and and of and look in all good and great see performance lot the our be picture have. we'll at whichever

is so, we'll a see less are do And buying as in the opportunity than so ratio X. this -- headed good leverage things and I those right direction.Our to think

you plenty dramatically. And financial we better about out, costs on that but down falling you there's whatever strength between of prices decision come could So talk have make rigs.

did year. even we So on what you this improve

how to prudent the show of team is give time most opportunity us and So and the I times. we'll think uncertain some itself make these

Operator

Mariani MKM. comes of Roth from the Our Leo of next line question

Leo Mariani

on numbers I wanted touch to base couple of here. a

guys quarter You higher fourth of kind are to guiding LOE.

that? what of Advance your Just of kind the a and of midstream of driving properties. finish guys are sort trying was sense wanted to that you get I'm some thinking maybe connections some finish to replumbing with

XXXX. had that wanted when if on get you sense a work to taxes, wanted 'XX? of ballpark I in cash that you'll X% finished. And get sense guys down for talk comes on to is pretax that I estimate So a to if of income kind a just

Glenn Stetson

one take Glenn. cash and is I'll I'll Rob take first second Leo, one, on this the the taxes. let

on OpEx, in mostly the the to has LOE, of Really, into assets XXXX. for efficiencies isn't. Leo order did some kind really Lea we of do complete. to general guide We yes, it's integrate work going we higher expect slightly Advance because the is did QX. San effectively County in Mateo So where bulk higher see that those Really,

And so had higher fact that costs. the also then -- some Advance and LOE really

So to we basis XXXX. guidance on the down shake prices about costs with good the to we'll ] see how a of flattened X.XX unit ]. [ service really to X X.XX feel last on [ and changing LOE really, out quarter, per a has that things into unit have And it and but reducing -- commodity XXXX, seen kind from oil and per those basis really X.XX the field

that QX. our Advance those were we those anyhow, to realizing have reduce able we after the last enough projections even savings seen quarter, over same and So, kept for taking

Robert Macalik

Accounting the I'm Macalik, Rob is EVP this Leo, and And Chief Officer.

of things the quarter. moved in favor our X since So last kind

because those, estimates cost revenue, the we operating for both One XXXX and of capital estimated had year. lower higher we of production price, and and

estimate a everything year. we can that tax for the we'll payments. our that bit income led tax our taxable little that deduction payment work obviously income and to We're thus, estimated doing that to about our of cash X% for make and to on higher minimize we a So can plan to

we and a alternative the We're studying to which that waiting there think for guidance analyzing would we're be be XXXX, that things also than several on the going for in a XX% few things tax, IRS are waiting plans still tax. to able guidance addition For in that for we're that. minimum But book we're year. the there to the corporate better do are

Leo Mariani

could hoping little on M&A. some bit deals in here There's a done Okay. guys you That's been was Permian XXXX. significant up also I And the guys. helpful, follow obviously if in

is think could think did brick-by-brick obviously Advance some with are forward? you you guys involved larger be of the kind focus about You may be kind Or thinking of one going you there kind ground those approach Do of deals of more here? eventually game the do in? deal, how that that it Matador

Joseph Wm. Foran

pay a enhanced Well, do in but we of down the trying it's flow our we that to emphasize production opportunistic. sure do enough all this year increase, game. lot, and try that I'd don't being going run when our you to the can a game what is cash be side, more? and things history in essentials. Are on we're have Joe. to to free a you going the been that to those growth deals, make how opportunities And debt, we're on done pass just we've We game. hit to depends they've acquisition every all has see like and Are ground more? tend We football increase ground And -- going to go. It you cash accretive

better seller acquirer so but So we're -- very wanted trying in as we're that to get make to midstream. more We're our people open acquire -- buying open positions to but we to of an or much or existing something fit from we and a client. wells like a are acreage as and than bigger to interest get to a something, we're to We're to sense. and trying has our not

guy And a so we're for Van, open on comment, deals. you can lead you are this. always

Van Singleton

you're I lookout sure we make we're so good I Yes, heard is what this decade balance think you keep We're on and deals. that feel present We're be we're we're are for give I expanding to themselves to hard we'll existing right. it. take And into think or the from that Joe, if And guys going enhancement, saying opportunities for going right, or always Joe when that at sheet the strong us always is buyers. going have acreage a we new a whether do it. it look units deal right. in like to position think looking. units, But is our the And

Operator

of from the Trafford comes Lamar Our question of James. next line Raymond

Trafford Lamar

have, to standard any circles horseshoe compare laterals? X-mile on these did would it one Just your color the wells. first How wells times I that The around be great. more cycle on the

Christopher Calvert

Co-COO. Yes. Trafford, this Calvert, is Chris EVP, again,

in people, a think back point, X-well Wolfcamp -- previous look when a were horseshoe for our these, remind X example, I larger we drilling of I at cycle to want record X-mile part a reference A wells. a times, But to for previous our Wolf from always looking area. these batch these asset

XX% record to about One spud beat TD. by of that from a these horseshoes actually

it, drilling within cycle the highly times, it's a batch. to quantity think it's just So hard completion times, comparable just to put the because they're on dependent But times, very you from about lateral. wells X-mile when straight on number a of

U-turn we kind new like the to new I know. with necessarily of bit technologies, joke drill technologies. whether think bid It's it's the just on motor a doesn't technologies, drilling new

those a times. perform, about to always the just put we're this continue whether to We year. X did continuing cycle out drill miles, other we and X.X and to X.X in looking It's well or like that here go next it's fast and U-turn on reduce online even

Trafford Lamar

is later one happening this And you already secured here, Chris. Perfect. then signed 'XX? rig the to have the and XQ, clarify, quick just additional Or that, just that I appreciate for contract quarter? a Xth

Christopher Calvert

happen weeks, to likely rig in the whatever be, X, once of short now, that that highly of super-spec wells few leaning the capabilities the sure with or here and quarter to. could It's we to will -- be we here year, obviously, predicated -- on a an again. the -- Chris first make have it into in in next grown that right it's valuing week It's the understanding manner a this next drilling in is we've adding used is term relationship Patterson. It the again, rig

And there. so that's kind storyline of the

Operator

line MacCurdy from of comes Pickering of Energy the Partners. Our next Kevin question

Kevin MacCurdy

has one noticed through prices WTI, quarter guidance gone being for quarters the over to first back what Just you the if and there couple fourth today. year. realized improved quarter. of talk question you're third this for earlier have wonder that and actuals above about both seeing me We could oil I

Brian Willey

I Gregg just Brian, think role I as chime [ is of But think and calculated the at ], can part well. in to it's just the looked how at the we've price historically this is looking realized I think This pricing. and in Yes. proximal feel free as the

so to And second that's quarter saw and second looking that something third impact or at first quarter. we quarter an even quarter from

oil in as forward that's just we of our the lot one is into I realized the I in how a a plays big pricing.Also, look much pipe. effect think the we I'll so team is think future, benefits think it And very the piece the in going role of have a getting just of say, job of that on I big good has done marketing

don't And add? that's higher able significant are there really Gregg, think incur cost anything to But getting want because I save we know have to be to if you able and realized those savings, I else thereby you so a price.

Gregg Krug

think being more on streamline helps pipe amount lot trucked. It's that. I also of far as operations yes, as versus Well, the efficient. a helps as oil It well,

big to be have a we that's as as so And on do. to benefit pipe able oil much

Joseph Wm. Foran

I together. that put ] just team that I'd drill to [ report. that give out add yesterday, our sustainability credit we the

I a good reference think make and it's materials. sure reading good in good nighttime shape,

to a and put that, and and So reduce we've more hard XX%. to on top admissions at worked look our by more take

Shelley Appel

XXXX, XX%. is Sure. our oil our very, I'm we I very operated gas Director of pleased that former XX% XXXX pipe. Joe's that XXXX, had And intensity Coordinator. to produced point, we're Shelley greenhouse reduced we ESG Appel, on And will by in from This and say to

in half X-year it period. cutting almost that So over

Operator

question of Company. Oliver from comes & next TPH Huang Our

Hsu-Lei Huang

wells short be trying there's but Mexico I in QX program area. My respect the New your to there. first order, question, Arrowhead just know was I coming from I of these a online should with of assume in pretty just significant portion similar kind online. on we get area staggered understanding the plans the saw out getting last to something better in Advance of nature for quarter? Is that the wells those there wells a thinking is Margarita to

W. Elsener

question. the Elsener Oliver, This is thanks This is again. -- Tom for

we large we some do sort of usually with As batches them wells, in of bring online staggered would fashion. typically

batches whether wells. are the Mateo an use of throughout could building up or many that very wells been other of of San Stateline ready, up artificial and lift other is sure historically it's to making area again, excited We're something wells. there. these This Some getting targets that team for we've for the large the done or years, these that's all varying kind basin, -- at times. Rodney we've But we've or any

so know up And and I Glenn running. team wells excited to and these get are the

Glenn Stetson

and different this the they're add different that to XX to going and is times, are Oliver, development I'd Glenn. actually on at come delivered just wells units facilities. in different Yes.

bolster facility. to And so they're to just water, accurate. delivering But X volumes going help so situation what you Advance different where We'll at Tom said them a time. few and exactly than had little San bit all XX wells Mateo, is Tom, the then And gas a a will bring there. on oil,

Hsu-Lei Huang

paths for have certain just And question, out or you incremental a in called know second the downtime helpful. might past, even that all require That's activity Awesome. or I shut-ins.

we be is next that to deemed XX or in to Are backdrop minimal. in early year. as far Ranger the really the Not trying to I But on recently kind wells some enter to Advance curtailed or so sure tighter shut impacts area either wells if of online come relatively guess, about just XXXX. proximity understand next the being of of, thinking infrastructure. as wells, such set of we going Margarita where might of next the batch within those just well dynamic see in I'm in enough need So when online this

Glenn Stetson

the Lake the answer Glenn is Margarita South this XX are proximity The Oliver, development short wells. -- not Dagger no. further -- the those the -- is to of in additional wells We again.

that the for of nature offset protection this so frac a wells shutting in development. And be particular situation on won't

Operator

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

Joseph Wm. Foran

Well, growth. And thanks We're fundamentals. year We XXX,XXX I attention already. the to to the said in would end to at going the everyone once for like their barrels. I and emphasize it XXX,XXX barrels. and this. time started online. XX%, $XXX those keeping this were XX% those at we reduced just rigs we a over not meanwhile, bring busy from XXX,XXX, year And wells while the debt million but That's

continued stock trading, LOE In drilling I've reduced ESG.So time, service foot expenses. to that rising build addition, XX in this the good of improved off sold per years my during to public. we've a and good opportunities, out reduced of the think we I been it's really year is cost. point stock been cost opportunity. we've our a really midstream I a never it's Glenn and quarter during buying as And a single Through share the admit, And but a time

most which And and officers. -- participation staff. you buyers the stock if have And our great and sellers at so not have and look it, of from other of we're

nor have is that unless think furnishes have you tell with be cotton ]. in are to going to on cotton to farmer going real the I part I We you exactly same understand outcome.And a often that the to going gin this itself. a sheet deal. County, of keep need X I going us like to We're to year's road, us assurance.And as be, time growing final to you're think that not point keep to the less it profitable. strong, in to leverage is at anybody coming who a production, going prudent numbers than as be long-term the people things to some we because thing right costs said buys be of that think continued ratio balance if but pleased midstream enhances But We execution. can we're that's good such is down assures you [ volatility. spectacular of can shows would The do opportunity and midstream Dawson every flow opportunity moment own that our

the And If you cotton part to that your want efficiencies own predictability we think deliver ]. gin in to doing. of and process we're midstream get [ cotton has to come what properly,

up for time settle we another see invite play full look answered us. us. we're with So can that at a come and had that the you your until and We strength of sure you, would set the just our fundamentals with to go straight missed want we things you happy bit.Taking to We'll further know a down make game, you a a you anything. questions do it people in that's -- and come SEC we get leave and with all to confidence areas. allowed rules. detail here on see see coming, we're discussion We But if your under have your have all like questions haven't We it more on to more in can you better. if you all but detail little make to thorough senior can't think you, I and but

better. getting Our properties are

number get better.So Group, speak acreage work our contribute we are getting years good like in and grow, personal come the Our the to for is inventory and invitation the the of that's a Ned, staying that on I'd Geoscience locations to see have, see I XX, out them with people continues with of end all today and their XX that better, our get continues and outlook these to we Head didn't to to Who working and outlook on the coming us. XX, that results. what zone,

look wouldn't reserves your plenty we're the of from if have to saw be flexibility because they getting direction have unless maintain with you was to thought one strengths forward and to like you, time, base of still options changing Too occurs. but our did more time we advantage thank banks to dividends again loans going we're is our and trying And weak. that as they financially.So in and take raised and served detail, come well you us to reserve nimble And we size, headed trying that we'll we had much for our gotten So of future our we tell have with the we our circumstances. wouldn't is next at to enough we to in opportunities change the increase we to attention. that, than outlook. right the the give inventory, rather think able up being what adapt And a I'd X-year

So into This is come a team see great properties, and us. go we'll great greater Thanks. and depth.

Operator

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

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