Matador Resources (MTDR) 24 Jul 242024 Q2 Earnings call transcript

Company Profile

Participants

Mac Schmitz	executive
Joseph Wm. Foran	executive
Gabriel Daoud	analyst
Brian Willey	executive
Christopher Calvert	executive
Scott Hanold	analyst
W. Elsener	executive
Glenn Stetson	executive
Justin Hosp	executive
Zachary Parham	analyst
Neal Dingmann	analyst
Gregg Krug	executive
Leo Mariani	analyst
John Freeman	analyst
Phillips Johnston	analyst
Kevin MacCurdy	analyst
Edmund Frost	executive

Call transcript

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Operator

Good morning, ladies and gentlemen. Welcome to the Second Quarter 2024 Matador Resources Company Earnings Conference Call. My name is Marvin Rivas, and I'll 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'll now turn the call over to Mr. President, for Vice Senior Schmitz, Investor Matador. Relations Mac Mr. you may proceed. Schmitz,

Mac Schmitz

and Marvin. Quarter for Call. Good you, thank XXXX morning, Conference Second Thank Matador's everyone, you for joining Earnings us

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

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

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

our earnings I slide presentation press to Relations a with second the website. In release, connection corporate under find to XXXX the our quarter would remind that tab Investor can in addition earnings release everyone you on like

Foran, turn CEO. And would I now Mr. like Founder Joe? Chairman, call with over to to Joe that, our and the

Joseph Wm. Foran

and time to Thank to you, Mac, appreciate the We welcome tune the you taking call. in.

and can do see the results. to hard, their come to them We everybody teamwork hear are worked that you how good and us think excited these like the teamwork, in or as come I'd produced part the come excited quarters invite team, behind ahead. about and even work year together to teams has that's with really all the We're a numbers which amount has sometime this really to of and quarter. want to they have about lunch these you The have I breakfast done more of see emphasize

our a at on I connect the have website really take like press to are some and In release slides look that would -- those. just to itself and particular, I that you encourage

the we particular. day. about When think help we're public XX,XXX. X,XXX out XXXX, fill I were they in story, making over barrels a And we in today, went

and getting consistent lot and and weather, still teamwork growth of in a out across in extra by it's it of then done. want them, our kept that past people. lot very And time the the hot been and who a they're guys effort lot and quarter everything So field a to thank there weather, going July this particularly I have cold of

be proved we that that The difficult of that without with help Matador carrying only. we So through, it'd to reserves boosted now that approvals, and contingencies will customary the is reporting government Ameredev, $XXX about over have be million closes of right this. net And to then over million. sustain if we're result $XXX

you So a confident But right the I'm on here quarters good had. telling have they again XX in these the work We track. if anticipate X teams working what things been, be we be done. lot as a quarter I'll are keep of days to next there's

to come you one, to job. people, the important, welcome. and questions how to people comes capital your it I I visit think And If know way requires, be you down try again, that, us. all all us the with should that and we think to of I the person But this get you meet technology are like all think I last want let just all I phone and caliber want welcome tell me this course, to and And next try do want to for open you still to want better. to to meeting in know don't to the it's you business a that help. feel with do you're and the one but this -- of for things to I

Mac Schmitz

Marvin, we're ready for Thanks. Q&A.

Operator

[Operator Gabe TD of Instructions] comes the Our Daoud from Cowen. line question of first

Gabriel Daoud

can the XX% Joe here. team stand-alone, is Matador the with maybe second first or Maybe half. start XX% half in the trajectory from so it looks or just for the done and We in more activity like other and less

maybe the better volumes? XQ expectations So outperformance? base just of maybe big declines? curious on big curious what's Just in it step-up XQ? Or maybe what's well driving in behind Is the kind step-up

Brian Willey

on. think Gabe, am team. and we Executive from work mean, I Vice and about Officer. hit the talked it's appreciate it I really Brian Willey, the started that really the you I that President of Financial And beginning. question. Chief Joe

schedule the really it's how the a optimize it schedule with so and Tom trying and great works to doing that great teamwork the make does and constantly out. schedule. better drill job And

really step exactly right, and second had and future, Joe a quarter. And forward quarter, fourth as we that you're to up it great quarter, third in increased and said to in quarter. So the we fourth look increase we the third quarter expect into as earlier, have then we the continue

And that's even before Ameredev.

closing Ameredev, I integrate have assets. we're closing but extremely think about excited the that opportunity subject excited of regulatory to to and other that, and approvals Joe which to conditions, course, those customary do mentioned

those off really bringing on in quarter of South and those which is good the Dagger doing the very one even well, doing and job than to stories minute, Chris a assets. Lake efficiently bit little a great it pass and I'll this talk a but think second to and on we the advanced I sooner of integrating quarter it's about expected

integrating over be we'll I assets that same the with to in that. looking program we And assets thing forward think do time. to be we Ameredev those able expect into and are and it integrate to integrate that the consistent being those how and our the able shows consistent and

of it bit have the Chris. some Lake to and So with Dagger over we pass efficiencies a well can little those. He the I'll talk about South

Christopher Calvert

Chief this Operating Gabe, President Yes. Calvert, Vice is Officer. Chris and Executive

small I But those underlying while we this the foot. about kind are discuss South in everybody sure really think I story those of things of D&C great can is their doing people results, per call, think Lake example kind manners. And OFS ask and the think think just in Dagger I'm I the just the on of And the I rock culmination of kind respective on might cost Brian is teamwork. all highlighted the pushing reduced of prime things. pricing.

was an a a that had operational look to savings You about where trimul-frac $XXX,XXX yielded perfect example pilot for -- our process. South pad well. from our that completion per we talked about Lake test perspective, And a of Dagger had X-well we first at

But to with A things teamwork once groups team the been of water, and really lot the done the team well. working could $XXX,XXX again, with have planning savings that land team, had use operations for the of to facilities recycled not that group yield agreements. that come right-of-way without surface production the together and the per

of a doing that, getting yields top well. due trimul-frac trimul-frac, benefit days just in on production added forward, the those on on to of about well. it accelerated completion XX% time The pull reduction you're reduce the And and efficiencies that simul-frac

have wells or those to I so being the want online the faster, forget think, results that understate result we end processes. teamwork into And don't think we but I goes the of

Operator

of RBC Capital the from comes Hanold question next of Scott Markets. line Our

Scott Hanold

success large good you Margarita the the pretty some had Advance with acquisition, with did pads Dagger both and the you've well, Lake. X with the Obviously,

But that of of some forward assets. the your One, you curious on you think you us that to it's kind set of larger path really, that if give something X-part that Just Is can you like cube do number apply a strategy? a position? on could color question development acreage portion here. two,

W. Elsener

you Tom question. is for Scott, the this Elsener. Thank

the have very Margarita been all expectations. and South properties. have Lake our Dagger proud -- excellent results of and the of have we're Obviously, been exceeded The

wells so expect we wells with like to were of back another and midstream of getting We at to in have rigs really quarter year. Stetson. nice there Advance third out these the properties laterals. the drill some But closely very that working kind in this half with of -- We our the couple drill on the X.X-mile-long dozen same all a definitely We'll these heading time. or Glenn drilled team

all to expected Bone get to kind Spring these knowledge drill would targets, hats the coordination Advance definitely this wells team we geoscience and This mentioned, my wells batch have transferred identifying to different Frost properties. Third teamwork that online. we've very development. of carbonate for are give be prolific next these that is throughout we part and the groups, like the definitely targets Chris the These As in all and off the of to between of this something Ned

in online of mentioned most half I will be that XXXX. wells Those the first likely

the the again, IPs But type strong do. water-to-oil exactly cuts with So next and mid-XXs the oil more very of and kind results see of batch those to great the come to of wells. consistent South, on expect And ratios. on in same results we've Lake we seen expect the Dagger how this low on we

Glenn Stetson

the pretty to just development go from plans When we're said. about out South good down system Pronto goes year having to Advance Glenn. and is Pronto a cube going of assets consider we then to build this Dagger to want careful was of with kind And South when Mateo. put from is planning. that immediately into it over and purchased again, Lake we a coordination example I when to Scott, the Pronto properties factors on we that Tom pile different connector -- connector the the to all the San what Lake and and think into and Dagger the ago, place

the San of XX where plant, we day a that send and turned San that went were all Bcf of XX we utilized exemplified exceeding close to those that cubic to in capacity gas wells, gross this was gas. and All gas. All processing Pronto connector And we there a the million the that resulted volumes to value around feet as were days close plant, Mateo really, Mateo. those and and day of X.X we were the were to to of Marlan days making quarter that on

of team And be the planned developing are close has we a job that a of the on queue so to things, think making a XX,XXX project when these day, our done not so scale. coordination to fantastic that I you're barrels were thousands barrels is also with meticulously. of a and able water to ignored careful barrels oil between -- oil on to need of of be groups and be to XX,XXX basis that all execute that And out and

Joseph Wm. Foran

this they to ready were that just water go and our and I'd ready properly the though like Midstream credit and -- because approaching I work, has there the they business lot is it get and Joe. add disposed were Justin a all processing. wells nameplate really when to just that to of enabled sold gas them, of to go they to and even and were others capacity oil, give made

want you during what all were period? doing that say to you Justin,

Justin Hosp

Yes, sir. of Midstream, Senior President Vice Justin. Operations

So that facility. Marlan of up or Glenn and consistently exceeded are so, XX we've said, nameplate as days we for the filling last

about we're over the utilized that the So well. line as the River very excited and to swing connector gas Black to then

we on as to And number as line and we've and the to of -- also wells of number on water a plans well development record gathering a quarter. look those the this side then facilities of Mateo forward approaching records the in setting so both rest the nameplate turned in San year

Operator

Parham Zach [Operator from of Our line question Instructions] of JPM. next comes the

Zachary Parham

split foot per of foot in decline You Can cost guidance the down to versus That's year-over-year. took drivers gains? midpoint. efficiency the of D&C prior you that over your X% $XXX versus talk cost? the XX% about D&C and down guidance about at the -- per versus deflation What's just

Christopher Calvert

Thank year noticing. the this half of that is Yes. Zach, the down number second that. extremely take again. you proud revision talking in I'll kind down to through. Chris we're the Obviously, $XXX the Calvert of for we're that of

few we've behind and to that, sustainable as As quarters. processes. of it's in efficiencies the think far I last the the spoken that improved It's drivers still story kind

drilling days improvements process of on that OFS we look on we sustainable U-Turn pricing that environments. forward regardless savings, of at things can are focused simul-frac, carry wells, trimul-frac, less As we spending like,

feel a have services moving a bit the like Now pricing do into half year, been become standpoint. from There in have we OFS a more some second competitive of are more little that we competitive market. this

between However, ourselves that push and situations vendors. a are have that efficiencies that drivers lot our the we of win-win and

or able trimul-frac, is trimul-frac stages and something wells, for Halliburton look to to You a win-win service truly Patterson XX, out simul-frac go providers, and day. when vis-a-vis getting at we're like us simul-frac this where XX whether our we next and year or per it's are

for our providers. on of same drilling the average just both first it less X. providers. And spending that And where that of drilled U-Turns and these story, so drilled, story our kind both we well time us we third XX% win-win for the time efficiency continues of that's we're U-Turn a in really that are wells the the about as service

while pulled And of a work look really identifying by kind are majority market without believe at And second we really of land the different subsurface Once forward it efficiencies. OFS And are couldn't is by team. costs what of the the efficiencies so again, we down. geology you in driven drivers pushing targets. teams, operations of that team those possible those that be a year, half of this these the are, in the deflationary the

story we that's but of isn't pushing foot process. work of the really possible the so it's -- without really the to cost D&C else everybody tell it on per And good of get going the kind

Joseph Wm. Foran

go you're and part that And that working good well, time it there to Chris, set I things about of they're you day, to flow online, the online is you of that's assurance of XXX a There that Midstream days a every and ready save the MAXCOM go your to teamwork between the and saving records. helping are what work save is on lot down money. drilling a joint, when second year, is, beat enabled you efficiencies, you not a ensure wells, is on the help again, vendors want answer. They've you that, we the saving emphasize have talk X next that other Patterson more with your we're to them, set when mentioned, as on there's and we a room is is to trying -- is price. them ready time lot

to We they're doing. looking are ways for work and that make more time save effective whatever

hope there's so which to real we And collaboration, expanding. keep

Christopher Calvert

Yes.

perfect think color. that's I

they're Slide I you to think refer to out the me, training of X, we and are not from talked that, engineers only we to MAXCOM our -- as the the inception talk tool when working X, on, to well if and Zach, since we you potentially if working and to excuse side-by-side off, young MAXCOM, Slide to the X of the to benefits well -- where these room not days just ultimately kicked that But reduce off records make productivity, from that a XXXX, ultimately and coming have college, X better on better room. was only days drilling wells MAXCOM come which recoveries, improve processes have better geologists these that through days that working in planning, that through steering lead better yields that, company recoveries. improved wells to the well targeting target

engineers those And then join or geologists and asset those after a asset year, year excuse X -- teams. me,

just efficiencies and X continues communications a years. It between And the have of in improve or to the so working they for side-by-side teams. built camaraderie year the

Operator

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

Neal Dingmann

Joe, one. quick important

we that be if breakfast. wanted paying come you all to to of first. the I for you'll out mention up way didn't see You get there if

Joseph Wm. Foran

that again, Say please.

Neal Dingmann

sure I important get going you, thought first. would paying the up want way to breakfast out just be to when that we for to an to make you're of visit be one come I

Joseph Wm. Foran

ask. you on how questions That many depends

Neal Dingmann

all got position do guys the far around the I you've Piñon, area? of how sort in Mateo need now as you've that the is now complete build-out that and question that think hear you does Advance, you my It's love Joe, had San as full in much takeaway Midstream that Piñon to added take you've position. more would product area you

Joseph Wm. Foran

properties No, and just whatever to our another that we'll makes where to in lone money fold be I we so. open one something think make options County give going and expect We're mean, that Chaves to from have. offload system us to be near. or the sense already be connectors I think makes It ability don't the anything this you makes we like more put these have to enhances up effective. where that plant in pipeline much will we system a or can near don't to and don't that I more

we has We're Gregg a what and on going I be magnificent Krug to think, do careful done, job.

everywhere were remember, public, Eagle But Neal, the of time. road in Ford we and If any time we we back the question. was takeaway the went, we when primarily going you asked were the on got show at asked that we all haven't problems, that

and So come do to if in not he big others are the and together go XX/X seems did was and problem. do was we're having also in great in room for us, with for and Midstream friend of accounts made helps what to others and put over out what long measurement the And we We problems. and who's a that business, just that the dinner. at contributor that? finding again like said, the a meant we him group been that said, not get it the Gregg And team respects. show It having lost and we he's are run audit time -- run were part measurement barrels, a many talk various of about can and but to suggestion see going we

the and possibly and in that again, through the the Midstream save before, he's saves And the having wells we days Chris connection. drilling, then us this put depending on days for team comes like with that's Board and like says on him, executive that, to size, just -- been recommend position strategic it and wait guy a not

we pipeline enough We at to team area he's a don't presence. to you're situation, say drill enhance go and we'll area, and and going we think following bit, right, and I great it. we're drill can So and that's the and Gregg, a expect we have where I put where open very Gregg, said that the do new all any we like, ever get, look and have if together the a I limits we think that drilling, that. hope to that is we're midstream open

Gregg Krug

question. that's I Neal, Yes. good Yes, Joe. a Thanks, --

to good and going think It's up the keep I growth grow continue to we're I every and -- our out with growing that's to year, mean, assurance that to on order adequate goal in of presence stay there. primary is midstream the bit, have drill to to with have that, takeaway so order it, to of up the in in actually. that we're top to flow front keep is going always continually stay

so going focusing looking what -- to And is be opportunities. continually that's we're on at

Joseph Wm. Foran

one I other Well, thing. have

really Our participants continued has third-party to grow.

them And drill properly. just bit, made drilled likely where bit, not their they're but it that's be to where more want it's our we're drill servicing sure we so

Gregg Krug

And the them for this. is type us. stay a and of -- curtailing we going what want just with that's that emphasize that want far We to we're -- well, the that of get of when front mentality. absolutely. one be as and to That's benefit We not not that, is benefit an production they'll there that well do. as as to is Well, off third the party it to as we -- as thing third producer mentality comes so in is because try well shutting we production have to to to parties for option

Glenn Stetson

getting last gathering new of the to continue things. would XX to for to I on to production built focused pile and on on a Piñon. to I new XXX compressor of miles have of commend over that gathering gas themselves, remains to highlighted continuing you this XXX feet million of X they Stetson, of in teams pipe from Matador and we they've wells also, day online and on not quarter. And and Marlan lot which building far a pipeline that year, efforts similar processing mentioned time first just do Ameredev what these the was infield of processing. plant overlooked, say facility turned release forward is and to Glenn the said we're That -- that lot project year, thus and just next cryogenic a be the in it's cubic Gregg the stations philosophy this that One Joe Neal, and budget at the half of the looking wanted that have be themselves and a Yes, accommodate approximately on were then in miles built controlling plant.

they So gas gas crude, is gas water and gathering miles XXX high-pressure for lift. pipelines -- and that

Ameredev further it the nature and the a business So chunk good of of I has strategic too. exemplifies it think just midstream

Gregg Krug

this Yes, is again. Gregg

that's as we've been unnoticed I pile serious, we just that do that companies of of I have. checks our stayed reputation of top the that let mentioned something and want and have what Joe to been audit it probably the measurement. millions comes don't of as month, something throughout and when audit would we've that our all group lost get every balance that dollars business because measurement we've we think do industry on to find to always by And to a us. have, kind we far anything the able just on systems, got we don't over That's taken some very and years

lot a take that. in pride I So of

Operator

the question of from line comes Our of next Leo ROTH. Mariani

Leo Mariani

into to say current give that dive Can kind hoping asset? they to a us maybe on And more maybe rig. a here. the of is bit was I production want Ameredev you an update where running I are little on there

assume in to the you're I post on it once here the on you're to So some that running replaced wanted you've close. for they're know Just rig I get past. and to deal kind closes? properties just replacement drill the rigs that wanted a might you're that rig I to going of sense a how approaching of be asset. bringing the confirm continue rig other ninth

any So that be color on would great.

Brian Willey

question. appreciate that one I I'll Happy Yes, to take start, this really on. Brian the then is just pass Willey. it to and

great team have we work that Advance folks we and did with. the Ameredev the acquisition. It's been when worked same with just professional The to very

And job. so that And are doing job they Advance rig a continue do as we they a rig to go did a we forward and ran just fantastic they that excited acquired here they and decisions as of it. coordinating running but before control they're We're the move now with Ameredev really good And approval, course, towards regulatory job a make closing team. with as subject good the here, that, in right we'll earlier. a of forward mentioned they're to

they -- job. so a just fantastic And but do

teams coordinating and that and Our folks we down the closely. know with Austin I are ready transaction. theirs. we I'm had just a diligence due group forward getting in them as of very with our on do move working the

a very rock. acreage. is with and It over really then more rock it what the the about starts rock little to a the Ameredev about and is doing. maybe I'll bit Tom this pass talk So excited And to about fantastic

W. Elsener

properties we're they're Thanks, again, Sure. the Ameredev question. job and acquisitions. Brian. good doing again. of nice We're and excited Yes, role, This very Elsener about an And clearly Brian that's kind clearly a is as mentioned. observation very Tom Leo, in a

online. that kind -- X half but first of laterals. process They're the at of groups a We they're they're uncompleted time noted. XX the letting announcement, performance expect running drilled those in same there's job down and as getting process brought are of and was the the had They of -- the getting those kind one They finished the are not out doing of rig, of in there. great also,

get excited production per in for work there. the we're at XX,XXX a and release, federal third quarter day estimated these noted to very oil we the have over to prior XXX to is XX% to excited BOE work good cut. We're the on out As properties. get permits, They approximately

rig the I Spring we well. very targets can, as as to ninth will be ready to we'll nice Wolfbone soon Bone be and as wells some drilling work think that put some and

the Piñon As working that so -- very and expected we you to quarter, we can't to XXX about give we net to third to group just we from work late look update midstream our We get forward more the we're and then then. excited gross, that wait and working to get It's we'll noted, close and in going. that XXX put work once to happen talking with deal. had with locations with an

Operator

question Freeman comes from John of James. of Our Raymond line next the

John Freeman

Topic I on reduced cycle to the earlier about was wanted updated guidance what the just on trying of improvement. the maybe well kind to just I'm on of some term Chris follow up ninth just reconcile was with talking days rig.

So it you are gross wells XQ X like online bring you gross get operated on. that alone, looks addition were you in incremental of all an planned that X And operated the to able saying more rig. ninth with wells you had

So to year were these those have of kind how kind issue guide bias you incremental think to much kind maybe was earlier, XQ understand about I'm necessarily might just an if due of to trying what cycle Chris, kind times an of of talking and maybe of it sort timing time a about in of wells just cycle improvements that just full how of continue? upward versus

Brian Willey

the is -- question. to Brian. But Chris for Well, this Yes, pass John, in thanks just a minute. I'll it

wells beat about it's QX, to go efficiencies. think able X that you're be rig forward, And as than I had we we're ninth excited might we right, gross additional rig And looking the That's to always expected. And Chris additional fantastic had. that that. question. talk we that do about wells. think of brought X we to part we on a likes add

levels because the will turned production about late online much in those be we are not year so just And December, that excited but in rig.

of that And it will rig Chris and produce can talk a the some little about bit efficiencies for the ninth more us.

Christopher Calvert

time on efficiencies been question. it's said, that we've many through and less spending a Calvert. I The Chris story John, now. Good is, quarters wells for talking like

that But did trimul-frac when when the our Wells. a Dagger that trimul-frac. do be think coming a wells looking is timing, increased use Ameredev test we've which this will I kind of there specifically But truly We're we third lot at on at quarter. our closes. the remote utilization with to quarter. with they And especially of integration of straddle be South I had of the excited if able test would look mentioned, efficiencies, the potentially actually potentially ninth later Lake so identified the once to to of is one first they're to the quarterly push/pull the X really we're We a pilot second Tom trimul-frac, point and now, that things always rig right on, trimul-frac trimul-frac of like

reducing times. be will And so think those efficiencies or, I cycle those are I that really guess, pushing

we've factored savings drilling we really trimul-frac that is from in but the incremental And year. at to really from reduced of beginning that something didn't the guide from simul-frac days seeing so simul-frac, we're the

I definitely you improved equipment, us with to on but ability so look X.X the at it's to from get better so drilling high stems U-Turn that it's kind equipment our days look these times ability just rig torque on setback it increased pumps, that have back better before with lengths of which that improve whether top And upgraded in side or we getting does, at to processes well, to completion drill the it laterals, north the longer allows upsized vendors reduction drives, Patterson, side, the wells, one of said of. X, is miles, push lateral ninth us partnerships allowed cycle when

of reduced cycle really so that times. these with together kind And all comes

efficiency, that the at we're a X forward. so hard program looking these just to continually it's it's put to something quick kind are wells throughout and -- but And of pushing this looking

Operator

from Phillips question Johnston the next One Securities. line comes of of Our Capital

Phillips Johnston

XX,XXX as to third day Leo's just the flat regarding on stand-alone follow-up the little laterals, versus Ameredev given is would QX, out think a to the track production there? still properties. question volumes expect in for of expect be a to Or bit uncompleted on But directionally you realize I the XX,XXX we quarter? you would QX. Ameredev growth Just the a

W. Elsener

Phil, this Elsener. is Tom

we forward are that. on drilled uncompleted would commenting the look deal but of after think X groups more I there closes, laterals. to Again,

comment once a that uncertain on think the little be on probably it'd going group first more us is close. to and just now The timing. bit the I appropriate more exact to as And we for second

Operator

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

Kevin MacCurdy

production your the This really year. X.X year, program throughout Obviously, rigs legacy get material your And in a XXXX, you resulted the sufficient those with then in little production that program growth rigs too when pretty hold X to think you XXXX. just the flat be will volumes Without in or Ameredev X-rig for much contributing detail about asking that a is will maintenance levels to do bit? grow volumes increase. even

Joseph Wm. Foran

become important Joe, guess, to that is I you reduce Chris your is ask the and more existing and to, rig kick can if wells. well, and days I'm this off on and days on This many But is then can comment. that drill where it wells Tom going Brian back fleet

become more techniques Chris equipment, out, reduce should coming And hope well. the as So also efficient. that new rigs we days on pointed will that new with they're

So that's an many many important plan by how to going factor how are as to we're out we wells drill XXXX, we and effective be. they rigs going need

better and that game as that the to there. are spend it where just plan goes going never help to a go and we'll part a growth's this but for that's We've it's quarters So right a us situate team understand is sources. does been these so -- capital company grown sake, us of our next X from

years But to where and be vulnerable a the flow hook have put we have into How didn't today? of or be midstream wouldn't quick have grown we ups have some if the didn't capacity could and Some disposal water the lot the we we we necessarily like. assurance, we situations, we'd look would a the midstream. wouldn't and if

deal was And CapEx right teams long we rock, want think a same term, we the as best flexibility a could've far to keep was rock challenge we lot their for we drilling, their they our Ameredev or with don't diverting strategy. to like we drilling rigs business. growth comes opportunity that because good midstream our at come keep for we when themselves. the or the to some And spend were Advance But up as up won't that time. on where a time, expect planning -- So for people of sell a an fully

you that. we chance did be really come to rock, So you quality a like we had when at where sure them wanted up had acquiring opportunities

could where careful the we or slow but our this count to rig with So year rig we've on grow done things. depending count steps the lessen

up of down current and our our we paid were ready we RBL Ameredev completely. our off RBL line when like Fortunately, credit paid came -- has

We on it. have borrowing zero

have we so And that and or midstream, building line to of that's helpful. Ameredev go of towards credit out some been the

each having just in year to -- lot for to surprise build people. right that as there financially strategy, So every we and be we many as flexibility on the are as surprises well equipment because as want of we our try each right occur can is options year, is year a and a the some direct,

really and I act situation that, keep Not to job hope we teams balancing COVID. open. a -- have you adjustments for get things over a, years. but through options your and we just a strategy tried And as try sound to it's our I that prepare mean the good you like that So found try happened. we been that, but and along. that may good couldn't go and all think, flexibility know flexibility, predict that's another contingencies maintain making we like platitudes, a XX that I I done

know, those -- as to as we you many better with in pivot a in. done We to XXX,XXX try ready job on have change. good teams As options the out year, XXXX. have started you get didn't And Each we circumstances real that.

he's that So what -- my is planning. to Officer I'll Chief that hope coincides Financial ask with say

Brian Willey

That's sir, I -- agree. Joe. Yes, fully

able XX summer. great the we this banks relationship Ameredev things a today. that they've Ameredev starts they proved offices now as very with have employees. their year, our I think to and this note the we side our X business. people we on program and It employees. have thank people supportive a I And and about with maybe to been would a those and we this talk We the of is visited it just relationships And banks great those about the times of few each earlier -- talked develop in just the fruitful relationships the a at that and banks relationship wanted our really And been. often were one support being intern have a acquisition. then the And

participation getting think stock normally, opportunity interns, purchase employee stock and purchase XX%. That's XX%, they've is in the better And in bringing at the our shares company. I best keep plan, We just can an a where been in brightest and probably employees buy XX employee and them fantastic. and look rate good our plan. I

I people think which had actually last our participate, where of. in period participation, we have is we unheard can almost XX%

working a teams the same rowing And it's we're be so Everybody it the business people down it direction. to really just is business. really fun together. to just a It's comes the and shows in. And that all great and

Joseph Wm. Foran

public. to midstream, was and One importance Susan when other thing Board was to Financial I their many to who went Ward our Shell was the add and of at show the Officer Chief the integral for want we've -- Pipeline added nature our Shell years

it the eyes pair that advantage. us we're we're that in its headed right So to another best of and gives using direction,

the results on done are that list third-party as and also team And growth know we of as the our have blue-chip midstream relationships have just companies them a a just it's real great put right together any their that And and built has what out deals. Gregg treat that important our teams with his that and and partners. of I we

for a of us lot but that chop company. is I a there, attention still there's better to making wood us So think

Operator

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

Joseph Wm. Foran

work for just much, to have assure some zones want everybody because there. amount talk breakfast I to And get were breakfast. if working an that didn't where last it Well, that team's you about when happy the come will with we about comment very that and quite here, I X us, gone to not I've we do and want came that Truist's have thing I attention. out to now out think of have you close buy from you the to to we want turned we the Ned, amazing And had on We'll you participation. thank pay. be had thank The you after time have about breakfast, and,

Edmund Frost

Ned XX targeted, Sure, This XX zones Thank had the Joe Joe. around we referring Basin, discrete the map And to is regionally when zones Frost, Spring, different the can the we with Bone and target of we the in Delaware out and X we started are Wolfcamp Geosciences intervals EVP is we A-XY B. Second you. Wolfcamp discrete of out basin. today, producing that that

from of to many their So to all other together. working lot hands complete able parts requires do reservoir to to drilling operations like so it's Matador. land, teams people It that engineers of this, and on A from have these being the wells.

we're really -- we ball very to come. more advanced confident a we're lot we've there's over the the of So proud how years, that and

we'll do do. your to we So and we continue what appreciate support,

Joseph Wm. Foran

really appreciate right. but it. through, All relationship. in thank for that, time. all listening valuable, appreciate I'm We and your We the With you know and it's

Operator

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

disconnect. may now You

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