LPI - Earnings call transcript Q4 2021

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Operator

00:03 Good day, ladies and gentlemen, and welcome to Laredo Petroleum, Inc’s. Fourth Quarter 2021 Earnings Conference Call. My name is Shannon and I will be your operator for today. At this time, all participants are in listen-only mode.

We will be conducting a question-and-answer session after the financial and operations report.

conference recorded this replay reminder, a is for being purposes. As to is now It introduce my XX:XX pleasure Mr. Vice Hagood, Ron President, Investor Relations.

You sir. may proceed

Ron Hagood

you, morning. and Thank XX:XX good

Executive as Vice forecast team. today our Karen and Senior forward-looking making are Officer; During of our Vice me today's are management Litigation Chief Pigott, XX:XX beliefs, other Lemmerman, These and including covered goals, Joining Financial those will Reform additional expectations, and Harbor the be Officer, of call, to Jason and Bryan Chandler, statements. as describing and President Chief Safe provisions Senior President Chief well Operations President Officer; assumptions statements, intended be Act the Private we by XXXX. of members Securities

these reasons, press our I the financial the variety from to fourth our over measures. yesterday and that XXXX, our at to for quarter as Pigott, well and and capital Our and our accessed and GAAP XX:XX turn be Executive for are budget as we be beyond financial measures may forward-looking many on in These can presentation XX:XX which reference Chief are www.laredopetro.com. actual of XXXX press two President operating presentation will outlook. releases now In addition, full-year detail website results we Jason call Officer. making Reconciliations issued releases financial control. and will differ a of non-GAAP statements to results included

Jason Pigott

improve acquisitions sheet. safely our balance We a the life of you, that exceptionally Thank second XX:XX Good XXXX important strides making thanks great inventory pandemic, us morning Ron. navigating extended capturing to and global performed joining our and well in for today. year

XXXX flow adjusted future our we top our were million. were free of defined cash results results million above production generated strategy is EBITDA and quarter the outstanding. and XX:XX track. to strong XXX well Our Our total Both XX oil value fourth of quite and to create and on end shareholders of were guidance,

our capital oil gas XX% by and and is increased billion. SEC of through margins million improved We During were to XX,XXX of increased and fit PV-XX issued of through the ATM and counties. two liquidity. we At to $XX locations. We the capture and acres now notes our our of assets Third, estimate billion able structure, current a accretive value. sale were WTI makes XX:XX XXX% of than to full-year PV-XX reserve XXX deals drilling raised the almost improved issuance adding deleveraging. initially common million approximately that value rate Howard locations, These oil-weighted of additional we attractive in increased deals of out at added first, time identify acquisition. Glasscock $X.X increase drilling program. ascribe would runway no stock western areas more perfectly senior reduction XX:XX and Howard an locations $X leverage acquisitions significantly These oil of from XXXX, shareholders at $XXX our we we reserves a of and have materially us nearly the nearly Second, oil weighted benefits high eight Glasscock total with our reserves. of about paired return importantly, but and reflective XX:XX margin high by lower the years oil the recent success of environment, weighted our grew reserves margin inventory counties. an XX% has and $XX where in we XXX more We of value in apparent increase across up the The now SEC price western significant the

to we emissions, net to targets established year-end methane the and and to a us Lastly, issued data XXXX, to routine aligned expectations team, and as leading our continue to Board other to me. ESG Board, X.Xx a ago. employees comprehensive have gas We the with responsibilities compared reduce management Our our greenhouse risk Sustainability a in reporting reports XX:XX debt-to-adjusted shareholder are as our commitment elimination through Chief XXXX. our well meaningful ratio annualized year Officer climate reduce We allowing to year-end for XX:XX of ESG industry and for XQ EBITDA X.Xx XXXX. ESG We clearing understand and appointed committed directly oversight to investments been by demonstrate disciplined, way. the at

data diversity Additionally, our providing XXXX ESG clarity into our workforce. of in EEO-X report we the included

aligns capital Our Our XXXX leverage cash which outlook of XXXX, continued achievements XXXX. investments, months for and balance reduction on with of flow a commodity generation provide strong this focus our XX:XX prices. our free six the the expectations is from strengthening year-end previous foundation benefiting efficient ahead Yesterday, year, sheet. issued our of we for of higher

be when We will moving cash we are shareholders. quickly to a able toward time return to significant

we excited financial of and see are in XXXX the us. front that We about operating opportunities and

$XXX our debt in XX:XX today. XXX half to generate in cap flow down is at shareholder that friendly to deliver opportunity the the $XX the this our about see most We We to XX:XX initiative the that years, over commodity market was can that we expect million one-quarter understand is share. two cash the about believe And about million flow paying per free to of gap. importance market current perspective, flow Put of prices. current XXXX free deliver free in today. cash equivalent of We next we equivalent reduction, of leverage cash

leverage of Xx We their XXXX. third mid-year X.Xx be expect have line to for the we by will ratio quarter sight and

capital opportunities. oil have to return and projects to portfolio strong best oil XX:XX are a Our basin. our the allocated of fortunate and are [indiscernible] high being are We investments disciplined

shareholders. the from to our XX:XX QX operations for approximately XXXX results people for now over update. We build delivering are discipline office, maintaining our to activity the will our Karen production an oil the I our turn are levels rate. dedicated flat will capital keeping flat from exit From XXXX, field that to value keeping call

Karen Chandler

Thank Jason. XX:XX you,

teams operations extremely in well XXXX. executed Our

Wolfcamp recent to As the in additional Western deck with approximately went current the among or said, and County appraisal XX:XX oil oil in integrated we well Howard further results County, fact many slides that extended of XXXX X in each County from fourth we the wells well In optimized drill Howard from previous contiguous the XX X best XX,XXX all our of packages, in our in These the County, XX:XX County. runway projects end to and oil on our benefiting acreage years we high-end and inventory in our underpin [indiscernible] Howard Returns package efficient [ph] levels completed in western laterals, closed two capital breakeven These with understand the Counties, are and we XX western achievements to acquisitions County, Results we two fourth extended inventory and of details are and and package help XXXX in capital have B our our hosted [Sabalo formations lower had foot our the wells new that and our by is Energy] weighted work the today XX%. highest activity we for subsequent oil-weighted allocates of at Jason quality The our to in and at approximately of Howard our the of seamlessly the our lateral below. areas Glasscock inventory and appraisal XX:XX $XX XX:XX of activities Glasscock you of acquisitions, forward production As above strong design return areas. efficiencies development driving drill completed quarter. can to Glasscock strategy prices quarter. Howard in plan. the and depth In development operating extended benefited our the wells guidance our formations. plan of A completion outperforming are wells the performing Sprayberry XXXX.

and in in half plan half corporate will be second much To of turn for XX:XX accomplish the cost on and flat oil working casing to frac relatively free this of budget activity quarter. of by into additional cost. services, our and one service and optimize rigs of as completion rest impacted three focused currently we from flows. are the are further we and through quarter to capital approximately From this, through In our we the of inventory services we service crews, factored end generate and year, first drilling and an will Our our crew and have are After for release that, capital update. two inflation we the keep end rig cash our XX% our contracts crew continues now one two year fourth call of XXXX. the sand, XX:XX Like pricing management production and optimize budget to synchronize our completions Bryan are de-risk locked pressures. inflationary extend the XXXX we currently to maintain crews, flat the for first to our a the the efficiency including XX:XX financial had I over operating order full-year capital levels industry, rigs to leverage XXXX actuals, and strong one maintaining drilling year, inflation. any into the strategy reduction. We XX:XX by

Bryan Lemmerman

confidence have us the to and operationally. Karen. enter with Both and position made us shareholders you, We've near momentum to future. to financially and cash to leverage, progress XXXX the cash in free return our ability generate flow, exceptional Thank over strong XX:XX last accomplishments year. These allowed reduce in

by expect this five costs, levels cash plan oilfield will our towards to when XXXX higher activity flow we Turning to investment and million is XXX non-operated industry-wide commodity and be leverage XXXX, cash at activity to budget, compared the free capital flat of This inflationary approximately our For million. levels. XX:XX current reduction. service XXXX, pressures tells generate prices, XXX offset program about flow directed in

full-year production inflation field highest to that growth $XX is to also announced This recent focus cost expected the no of to run level. flat investments with There's company's at allocated capital our doubt the to will ESG includes has is XX% to fourth levels. industry-wide budget of the quarter XXXX hold towards higher work about led targets. return being generate oil million and our production projects XXXX XX%. of price Our oil XX:XX our emissions achievement Our and

the and of cost We mitigating year working XX:XX Our innovation To through the locked portion of we on to cost underpin into and people the first higher XXXX. focus on gains. price and budget significant cost Karen hedging. for have focused extending half efficiency in of our this capital new goals, are a are half towards deleveraging continue has and certainty noted, second our

current our strong mitigating and about ensuring by a leverage XX:XX for have our in hedge our cash oil projections XX% covering free risk production We capital positions, flow returns strong projected of record investments. and are ratio track of XXXX. Our supported

complement achieving Since We of our facilitate heavily minor returning expect front collars and high on begun production half XXXX, year, us adding prices have as focus to oil to Laredo XXXX. we our near in margin leverage with XXXX, acquisitions XXXX to transformed position ahead our accretive would have previously what opportunities previously have For reduction to turn transactions otherwise adjustments a put accelerated deleveraging to to in economies operations do. goals improvement. shareholders of our this shareholders in oil-weighted necessary deliver leverage and now ultimately We our timelines XX:XX year return to locations These current XX:XX position I value closing a through drive our strategy leverage weighted to hedge the XX:XX and flow will to should to will free to and in margin volatility continue strategy capital expect comments. the reduce acquisitions performance. is our any of would scale be continues and with lock the cuts. we for by wells the back position future been sheet balance defined giving using The for are equity well we to has and higher sustainable to further over to us. shareholders possible been lined able our well the goals. continuing shareholders significant that volumes shareholders seek made XX:XX us achieve our hedge oil As discussed, goals were A&D and cash Our towards we grow floors high to more in building to our cash term Jason in XX:XX to call throughout inventory messaged. confidence for of

Jason Pigott

With our XXXX This sum Before we your XX:XX sustainable XXXX in accomplishments long-term would we eight oil-weighted back with cash inventory are in free [indiscernible]. position for our to I a flow shareholders like believe generation. years XX:XX pursue. at leverage now can and that of meet take and margin XXXX questions, to really we up high of will transactions X.Xx patient begin we by we and in we to to return look means XXXX. can we be target continue capital what opportunistic acquisitions, to mid-year in While

We the value work right the day strategy. team, the to questions. creation open our are every XX:XX have right come on and deliver to assets, Operator, excited and line for please

Operator

XX:XX Thank question Our first [Operator comes Blunden with you. Sachs. Karl Instructions] from Goldman

open. is line Your

Karl Blunden

time. XX:XX Good morning. the Thanks so much for

if built for kind were you what acquisitions be patch. but with word, top has of when thoughts some layer the you interested certainly activity more debt to a different in perhaps historically, about that? of prudent used on around pursue you comfortable M&A, this as high you've regard you oil you've looking balance Be any think mention your think now you you'd had equity you're And that that, position? may in you've with continue that funding, to I in generally on transition, inventory thoughts been the of to use a interested sheet funding, be how that, some relatively then used just work

Jason Pigott

XX:XX Great question.

our I do shareholders, a would future time, to deals we just be accretive need in accelerate we've the past. the with and deleveraging to again transaction any done similar amount would the be standards deleveraging. think held to would the short we to They acquisitions of be anticipate in

packages year. one the of this for to key will there's that's out it. There's there several going be XX:XX principles that – be So,

as I urgency think isn’t though have we what is today of that because for we've up tried to highlight inventory. high the deals built doing, kind

pay focused are again, We debt. cash flows on, using down our to

to to, nature we how on, sheet we to wouldn't balance turn With the know have flow we to we that anything position be if really cash are Bryan. do in you pay done XX:XX quickly. before, the and we've we've of today done – similar this would us to I’ll those be acquisitions in it type delever more hadn't So, deliver to that fund would what allowed respect done over and to

Bryan Lemmerman

to we've done would the past. just deleveraging cash that and will that's XX:XX Thanks, be of Jason. equity combination both being I and add to facilitate being that to Yes, need and a accretive it the shareholders, to way in

As grow in within our would way be to those we two still these the and us Jason used transactions said, have business for a financing fits that still frameworks.

approach last like would I balanced forward. the going So, a we've done two expect on

Karl Blunden

XX:XX It's very helpful.

going as a mention go as you but tougher of overall, first you'd into hedges much forward longer-term hedged? on more to Appreciate of this XXXX. your expensive to will, be you how approach of hedging looking that you like the much more, leverage, Just be or hedging to delever your right? looking half And for Is of would production You've change? gets will think the bit, you going if color substantially you out, you volume and zone pretty as that hedged the change about helpful? to any new and further is you're have did that delevered how move

Jason Pigott

gives allows Yes. mean, which next I downside, us but us the first which the it upside. put XX:XX collars also protect to we’ve in early again allows to the to for – us year, quarter, exposure

deliver going get is that's hedged the we've you're to be shareholders, delivering and we or allowing focused to fluctuations correct. we got So, the and that but wouldn't will in to those don't those as would levels want that shareholders. why ability we past. As cash but price we the We we're return things, But there on we we consider the that not in today hedges and be are to the hedging look can confident mitigate so we XX:XX do achieve [imply] hedged that do need cash delever those a we now our to and [ph]. to position milestones, a levels we same dividend as milestones, at all be do feel have us start we to those achieve to right need as at to

Karl Blunden

XX:XX Thanks Jason. Thanks Brian. Appreciate it.

Jason Pigott

Thank XX:XX you.

Operator

with comes Whitfield from question Derrick next Our Stifel. XX:XX

line Your open. is

Derrick Whitfield

Thanks. XX:XX morning good And all.

Jason Pigott

XX:XX Good morning.

Derrick Whitfield

Page wanted you and price your of preference first cash if on For outlined a focus specifically, I couple seems it should And of allocation repurchases? as we PDP share XX:XX just on the it years, stock as capital your assuming flow question, your remains and for depressed to leverage like buying than free at my can how and your of between next targets reduction about a dividends valuation there's think lower for remarkable purchase over the return X value? opportunity preference your noted,

Bryan Lemmerman

That's to reason XX:XX on options obviously would table. both the have like you Sure. a great why

that we the think from deleveraging using as both is the where too will where below in we where our would of think we articulate we we the prices those I at be are and sight, and highly early would of sit get share table that our to much will get we but it clearly. approach X.X on market and X.X have today, a balance for both. say time clearly to us more It targets, I plan be those in

Derrick Whitfield

Great. XX:XX

Karen, you speak I'd the within follow-up, for when to XX,XXX and completing to and drilling targeting plan, first you're my over like plan? of for in operating For in laterals XXXX the your XXXX on [indiscernible] shift your side, technical comment light perhaps could

Karen Chandler

XX:XX Yeah, sure.

got we've in really Howard for lengths overall at extended the since wells, all Holland us past, year, years the So, position significantly. XX:XX lateral laterals mentioned drilled for of economics. perfectly us In this cost Central foot County. extending that plan our in as in we transition the for efficiencies XX,XXX laterals. XX those Howard well actually couple acreage North we in laid program the to although looking give to we We and drilled a area, that quite been have just out foot It's and XX,XXX

So, extended overall Howard, laterals, be moving that’s were now XXXX, North are XX,XXX in have able in come we're in but XX:XX final We Those drilling to we completed in Howard recent out. drilled, County. been in the what from those and developing we're package Currently, economics. foot first of seeing stages have those don’t a impact to we wells development. a finishing our laterals and

So overall, results and in appropriate on similar the County. seen well is operation expecting in going what standpoint, Howard an from basis those everything we're packages, just an to we've

Derrick Whitfield

Thanks update. Great XX:XX for time. your

Jason Pigott

XX:XX Thank you.

Operator

XX:XX Nicholas Our from Seaport Pope with next Research. question

Your open. line is

Nicholas Pope

Good morning, XX:XX everyone.

Jason Pigott

XX:XX Good morning, Nick.

Nicholas Pope

I you the that guess end kind locked versus how XX:XX of of already kind the kind give inflationary seeing, all rigs at and guess spectrum? whole one quarter, could of three understand dropping guess a we of of activity, in more kind where if was is, with much in? the seen on How currently have little on, with those well costs? kind the going kind well curious to much what's of detail anticipatory you're I are pressure the [indiscernible] I you I of trying

Karen Chandler

XX:XX Yeah, sure.

hard where got as through So, as The casing. that we in comments talked includes move first of XXXX. really larger about, as potentially locked mentioned we half that our the through frac components team significant includes inventory either through of in and where pressures we just pressures we has exposed what our in, in I inflationary that worked now locked additional all all XX:XX we're fixed supply services, at some still forward. fixed seeing really is my chain or to contracts we've are our defining XQ we're cost versus fairly move early

sand many we in operated own third-party our sand mentioned As are mine. providing we've own from past, times our

year, we deliver us now right half locked sand, across the very this we're of planned in about when basically there. take a in can budget got pretty contract place that much capital additional in on the we've market. in, helps pressures look overall, as we quite locked inflationary rest that got cost we've XX:XX are which board at everything that on first and through the feel So, offset good which significantly the high in So,

second trying pushed up As out fourth we quarter. we're in really And to get half, continue tighten really quarter everything further. work the to third and

such year. doing just we'll through we're casing that tubing the the and for as to and currently areas So, that work program with continue

Nicholas Pope

for on XX:XX very how it. quick, Got front? kind That's Howard between real just do of County year Glasscock the the And anticipate helpful. you and the, split activity the

Karen Chandler

Yes. XX:XX

of County and expectation we’ve in So, as detail showed up XQ. Howard all the you our a we wells, finished and came the to at run XXXX. is on we second of western for North package Glasscock referred deck. XXXX, Howard County of Central transitioned County, which remaining bought or our completions, We've Those to the through XXXX, wells, Howard right both end and know in some

Jason Pigott

just our XX:XX right, if have all the a On online, to a from. deck, access Page put where coming we've that there's XX in top shows that in are you graph [indiscernible]

all So, we've got it Howard, then to coming some Central but in North from wells transitions Howard.

Nicholas Pope

it. Got guys. Thanks I helpful. have. That's very That's all XX:XX

Jason Pigott

you. Thank XX:XX

Operator

from comes question Seeve with next GoldenTree. Our XX:XX Eric

Your is open. line

Eric Seeve

could and little Hey call, the do bit thanks good and guys CapEx. We land the hoping On your give facilities you of They and upper the more a you left color corporate transparency. CapEx I by for slide. the you category, XX, that. a showed us hand appreciate in was guys the XX:XX quadrant guys, on CapEx Slide lot to

corporate are on of you're CapEx are sort appreciated? If these they year? or normal any what or you if reason forward for a going be XXXX, – of this versus they for categories out could both color bit elevated in break is spending that Thanks. the would amount and us you if rough could land, And could us that you would be sense give facilities more a little give

Bryan Lemmerman

Okay. XX:XX

see you work comment we’re which facilities components. And out in can and to know then non-op starting So, there, well. a we’ll point land as I on you the will also split that activity, out

on detail. land, a and that we facilities is So, report from out this the category

of much out the got spend we I did We in and for the – in on about a our release. spend is our DC&E and on think that. million for deck Pretty doing work [indiscernible]. the with have that for $XX that retrofit highlighted on all in in-line release XXXX that land just XQ the ESG. pretty So, we're split we've XX% XX:XX call facilities, facilities we've earlier run much out this we them

So that also component. would be that in

Jason Pigott

it's traditionally budget, around XX:XX that's And And much representing called DC&E side, and that's the capitalized DC&E then the at of the with on gave on look this allocated corporate past a bit budget breakout. predominantly and total other, interest perspective, time that approximately just if to you very with percent kind of granularity much G&A. XX% in-line. years is of more the a very historical just this in and in-line of We then little what we've

Eric Seeve

Okay, the XX:XX strong Appreciate Thanks, and on guys. terrific. congratulations results. presentation

Jason Pigott

Thanks XX:XX Eric.

Operator

XX:XX Brody from next with comes America. Our Gregg question Bank of

Your line is open.

Gregg Brody

well are XX:XX and helpful, Eric's very Hey, done. I’ll side good comments on morning presentation second very guys.

Jason Pigott

XX:XX Thank you.

Gregg Brody

and some why going the breakeven X was to mentioned on out approach I – – how Page environment? and think near this today, looking going development your are on this looks at is to release, be the focus the your you what to Just, when you be do to call to XX:XX $XX in XX about very that press term you we're are that environment? still in inventory, your XX And in now not do in good to today's stepping $XX of the opportunities

Jason Pigott

if best mean the Yeah, I first. is your question. I put It's wells We, spreadsheet, again, biggest guess through great you drilling XX:XX your a benefit

look looks of it if that So, at – more County lowest is is you see Howard we'll that western bucket, Glasscock. than in it you

lot flow stuff our generating those, plan versus Howard environment. rate highest strong. drill there risk got at allows are wells we've now, so those delever to right to the because for XX:XX there if mentioned able the get but higher what is cushion. to most wells the a That's that is is not you the cash that's may are to on prices So, collapse, as a price us buckets, of best the delever us we're So, in you

the we stuff best how So, that's allocate drill, this first.

profile to [indiscernible] most more delineation is done prove about are and are highlighted barrels wells far. new can Spraberry the of that help later, a Middle open new, wells but for County. which excited Howard both wells up efficient are there we in opportunity they're XX We wells they're XX:XX of either so PV, right build have or to, the tests facilities when decline XXX back to it feet kind And the those option separated flatter believe see County. achieved us. be may us that be for Spraberry, facilities in come far. or that reuse of We rock, at XX:XX that to the so we and kind wells development wells So we and really further an those those day up Spraberry allows strong almost develop Middle additional co-develop for those the It's Middle so most not so have Middle so much are Howard them by also have in Spraberry

you start Glasscock, we've a presentation in we to do. but built it. inventory at accelerate out of in you those, that including things value environment, price or XX:XX that schedule at of almost the a the of I'd the Howard, We’ve well less. there then those into as think say So, how that like the whole for team point years’ to work don't drill through might this get Eastern wells are again, worth that's them new of some has require lot XX Western are drill groups something really broken again that Those something three and this breakeven And looked as we Eastern focus at fund ready. $XX and

gives there's accelerates is lot character, some our it's best really it. how think you So, we a about our stuff words, but drilling deleveraging of first but

Gregg Brody

And there. you, have additional of helpful. covered very I kind questions that's And XX:XX some

The the there think there. maybe, becomes is just that can legacy Eastern higher could the lower or – year? stuff those You also that that. in And go you add that. inventory I a then hope mentioned can some year I … this actually then and is cost I'll So, you capital allocated drill of probably to There is was and as longer going areas see about you you potentially this is, heard that something ask say I to some drill [indiscernible],

Jason Pigott

foot really just these about a ways there, you create XX,XXX things, to we there. of through it, as foot could wells, and laterals. lot something schedule capital and but of or own option, highlight to like not to – them, some schedule, we working XX:XX higher get you include to We out or think you've you XX% deal X,XXX to more else haven't go. of debate you. deals think cost XX% We are in something to because a really getting accelerate we but a the we're not I own at them the well, inverse what's require them ready think signed lot it's do but it's here, value they there farm Howard that, on, than even a about do a are County inventory into back those interesting X,XXX there's – it It's or wells talked get XX,XXX more if and XX:XX to it foot rig even or do have those the an prepped got go, we just include out because of they those but So, that somebody more, sell like report that on

Gregg Brody

for just XX:XX mind. two if don't And you more [indiscernible],

that some – revenues your You a sheet, of and And year? balance royalties flow expect negative your over you've previous capital should CapEx accrued is undistributed is this balance your on given? quarter, in – bit the increased the a in guidance that working noticed there we and

Bryan Lemmerman

as we would expect and I Yes. mean, XX:XX go yes. to up, it fluctuate I prices would capitalize,

Gregg Brody

but do XX:XX I'm current dedicate And you're last an just then down my there for [indiscernible]? talked thinking reduce or flow may it would that today clearly, would if maybe facility, worried, if just but paying debt, last you something one, your you is maybe free total maybe cash that what to reduction – doing is excess just question are? that, I'm this your year, consider And of something – flow quantum curious you is about the is about all M&A, [indiscernible] senior [indiscernible] change think you cash I thoughts your is obviously, just some at out credit pay debt have you you

Bryan Lemmerman

Yeah, liability this be so throughout at am I extending it and than constantly on it. focused I next am XX:XX year all looking paying we'll year, well off options. management more

the so now. it's is we'll it A our half at really of So, one rate. just some If get lot something January the on cash a of are. to year. clearly back would notes sense callable that back next those XX:XX able cash is have we as a do. see the and stack to things lower in the it's of company, At this I'm goal where And It is accretive have outstanding. and to balance callable at rate sheet not year to rate build makes my senior

to month this ways everything And that. managing best So, change process. from through can it's that on next the month do to just XX:XX

that constantly through something year. evaluating it's this different that have, focus options and but is we monitoring but our the So, we're

Gregg Brody

very Thank Great. much guys. XX:XX

Bryan Lemmerman

you. Thank XX:XX

Operator

is follow-up question Eric from Next Seeve XX:XX GoldenTree. a with

line open. Your is

Eric Seeve

to in some, maybe just thinking you parameters on hedging, sounds to did guys, just some can is, final me as of the sort just as Hey one make for question. XX:XX to it in believe balance The you don't hedge XXXX, of much progress you give or what have Gregg like sense you're on XXXX you about? ask given sheet, my ballpark you us expect

Jason Pigott

Yeah. XX% we year, of again, again we like layer enter some Again, we hedges, traditionally a this on to we are hedged kind been year. XX:XX will have as continue

favored because with just spreads if we wider and again So, fall we've price we've us collars oil protects it don't gained. these we're bigger should Again, progress commodity prices. the watching lose that

So, half favoring the we'll XXXX first versus look XX:XX those. we continue full-year. are of Again, to at the

want points, of hedges more once yet. we parameters see hedged, get likely there continue So, to gained it's XX:XX those we – so don't monitor we're than say, so it's But reduction be XX% to at in, look we're we we will, not leverage XX% about. that on the don't prices, go, specific put more to we're but X.X, we to just things kind again be haven't yet. hedged we We just to We a and the XX%. lose going how we've talk decision to again, but and ground have that give those I'd flexibility, and going achieved

got X.X So, to the reducing is about guess of mark get we the to think start, it. kind before activity, we can our hedging way I

Eric Seeve

barrel have setting on at problems like And what at to respect do the eye in balance? target with an oil prudent the this like environment Thanks. you're in cycle leverage a is look keeping point, price point the that might you leverage $XX with XX:XX not leverage metrics prudent a guess might another leverage cycle, one look target other I your of

Bryan Lemmerman

$XX I'd such [X.X] because on target to there's get be in to would where heading. below done [ph] down, to ideal, we've $XX Xx, range substantially type forward – range year if that not. $XX got get goal get environment smaller of a say have Until [X.X] [X.X] [ph] we we're took. said [X.X] we’re [indiscernible] we a us, to to be price for to say, we to in heads our look price we're and [X.X] there, of easy got than but that because I of get [ph] but there that's keep we're It's we've but the to and first. environment us Like our long-term XX:XX steps a until in $XX and that’s were a price price our [ph], a XX:XX this at [X.X] easier but below in we is be a [ph] said, would [ph] obviously and our than That's ago like focus. Jason to we of place this company, different think

Eric Seeve

XX:XX the Thanks, call. guys. Appreciate

Operator

question-and-answer XX:XX now concludes the over call I Ron you. turn Hagood remarks. Thank back for session. would And to this closing the

Ron Hagood

in call. you. the We And Thank morning. interest this Thanks concludes our Laredo. joining for appreciate this for call us XX:XX your

Jason Pigott

you. Thank XX:XX

Operator

concludes This XX:XX today's conference call. Thank participating. you for

now disconnect. You may

Vital Energy (VTLE) 23 Feb 222021 Q4 Earnings call transcript