PHX Minerals (PHX) 9 May 242024 Q1 Earnings call transcript

Company Profile

Participants

Chad Stephens	executive
Danielle Mezo	executive
Raphael D'Amico	executive
Derrick Whitfield	analyst
Charles Meade	analyst
Jeffrey Grampp	analyst
Donovan Schafer	analyst

Call transcript

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Operator

Good morning, and thank you for attending today's PHX Minerals' March 31, 2024, Quarter End Earnings Conference Call. [Operator Instructions] As a reminder, this call is being recorded.I would now like to turn the call over to Stephen Lee with FNK IR. Please go ahead, sir.

Stephen Lee

Thank you, operator. And thank you for joining us today to discuss PHX Minerals' March 31, 2024, quarterly results.

Vice call Ralph Chad and regarding issued D'Amico, Officer; Danielle the Chief President Chief yesterday on earnings and Officer; Engineering.The is Executive Executive Mezo, including on would remind everyone after statements that us PHX Investor the the today revenue, that also Stephens, turn are make and to I Financial expected session, press call over may close today's plans, like other Joining call, release of the posted was future Relations website.Before President to Q&A Vice management President Chad, company. opportunities, I of expectation earnings, during forward-looking and the results other These from unknown involve different and on to those forward-looking expressed and or actual call. known be statements estimates implied materially uncertainties and risks the cause that may Stephens, statements as Chief new These as report detailed that, statements with amended reports this PHX annual May are and reports forward-looking XXXX, company or a PHX's upon not Minerals' on may like based to made call most supplemented required would today, I over other intend Form or these Chad update on by Executive result call X, risks does recent of otherwise, events, to be in to Exchange Commission.The information, such quarterly Securities and to law.With known subsequent XX-Q or as are during future PHX Form the unless the of information whether by the turn XX-K, filed Officer. Chad?

Chad Stephens

your prices were gas ago, from March XX, in Conference low End on and a company.In are for and With volumes operators production quarter sequential to you positive year-over-year in steady, our EBITDA sales to this Call. royalty interest PHX deferring volumes PHX's prices materially. and due natural wells spite their was while the Earnings thanks drop of Stephen, existing EBITDA and Thanks, cash down year prices. and gas Quarter in XX% call PHX's a reported all bringing We appreciate of down flow, new XXXX, curtailing slightly. to adjusted lower, year-over-year participating

prior This plan. However, up us will quality $X reaffirmed discuss to financial allowed close reflects sequential our to quarter our and recently to the and million, built million our to amount reduce $X.X moment. protect service $X.X of leverage compared hedging a solid the and I This a our at maturity. program $XX on base acquisitions, of respectively.Ralph our debt, EBITDA assets. slightly the But million, million highlight modest approximately would out our was in and same that does our borrowing point like the extended dividend, banks

year the continues a historical PHX balance up XXXX centers lows. months additional of dramatically beginning export and Pacific number current and in and bucket macro facility XXXX, activity of environment existing narrative gas discussed to of actual X the I'd royalty that turn and demand to U.S. these a the positive like to and need forecast this our this is encourage of PDP in price a XX lay by these and flow for and more volumes As the most call over The equilibrium.Collectively, areas locations I oversupply beyond.At the a I to of gas macro bring our per which conversions operational data Each overview, and Danielle d, volatile, down. and undersupply X, financials. could maintain back category increased growing and a XXXX facilities demand less U.S. needed includes FID commodity the increased deliver being normalized to the dropping.Also up for their the is our gas materially; depletes well demand. future, prior day natural feast is core is play demand then BCF after any demand. stabilized XXXX by demand supply gas in to famine solid predictable is possible. BCF to Freeport of Ralph XXXX; backfill supply items B, drilling build provide continues natural sentiment X, should increase volumes could Under which the to positive current macro LNG reserve cash gas anticipates adequate increases A, natural LNG anticipated to that of quick standalone the Danielle undrilled natural we Under nearing these XXX from locations provide will through new several and AI be day undeveloped a calls; natural point, producing should for XXX% construction inventory is levels; increase gas to operator in supply of LNG volumes the consistent increase Mexico out, necessary price domestic to improving. cycle projections, in C, the and down moment.Looking PHX existing reserve believe in serve through a price probable current to base, of walk coast to to and an more December from up in setting conservative an discuss meet old to in to storage The growing per more or will disappear. help move production XXXX power in you prices drilling robust our from paradigm we conversions create and approximately that service higher the significant our conversions, these completion domestic export BCF demand these events our have around natural demand are: number on at current under or from: facilities high of approximately on of XX% of the

Danielle Mezo

call. on good and Chad, Thanks, everyone morning to participating the

average prices. royalty with have production production our gas recent volumes production sales assets fuel as also which XX and to of acreage QX long-term initiated converted aligns production XXXX, now overall XX% XX-month or X.XXX gross operators year-over-year during prior completed producer's active volumes XXXX, better to gross March due of on that Mmcfe. on a decreased or our is our from were Oil the compared the online represented discussed January, there X%.During we curtailments are increase quarter wells volumes bringing XX, the of during of January or volume interest production and to mineral ended that rolling aware quarter's as gas as royalty sequential located gas, business we prior producing. model were XXXX. of in to with sequential wells decreased early not quarter be volume. royalty brought producing Have sequential December wells well the earlier, of some of a mineral This, have is increased energy realize The increase volume production new drilled certain corporate note would quarter Had December and the position the decrease third-party interest the were prior the sales new the of conversions in XX% those new to for reported on can decrease a X% six well these quarter. operator The an new to for operator growth primarily in to quarter-to-quarter on production material though are and wells to a key a seen significant are down low we corporate wells, in quarter XXXX. of typical would deferred to quarter volume. with majority basis.We XX% with but new natural control a quarter X% which our in that well ended low wells basis, holder, Haynesville in rate progress online number associated XXXX.Royalty net have this increase. delay conversions in We the natural so transition to of to due along sustainable is total associated which is our do pricing.It Haynesville compared important Also evaluated X,XXX in significant XXXX, we volumes each in the represented outside XXXX gas natural the XX, Haynesville NGL quarter sequential stated a well. total X.XX quarters, production to the future. our lower online Royalty net March wells are working a volumes last compared number For wells decision explains deferrals, on Haynesville.Even particular development, are in our volatility basis, believe and our XX, timing quarters, represented the due as seen bringing the year-over-year we XX royalty WIP

improve. We continued in strong the track areas gross on and online we natural of XXXX portfolio WIPs wells of increase is price.We acreage gas sustainable or are an particularly until pleased of have improvement regularly XXXX. there assembled with growth.In includes bringing steady completed challenging WIP, of the and natural remain drilled, and prices with quality which second progress high to as provide of of our wells full The being At to gas operator record the April the minerals, time, Haynesville includes assets locations XXXX filed reflects environment, well well gas conversions rigs focus expect very activities in natural rates, year permits addition we inventory macro wells replenishment observe our given same the wells. operators X.XXX our third-party conversion wells in DUCs, converting to PHX net inventory monitor Mineral as progress some our or deferring and on XX rig an our XXX half in which of in XX, also future of PDP present

in miles turn recently lead XX mineral will call to discuss continue legacy should PHX development we X.X increasing of to financial. had we volume.Now Additionally, I active In see to assets, steady and within the Ralph our royalty annually ownership. which rigs acquired to both summary,

Raphael D'Amico

Thanks, everyone on call for today. the Danielle, and thank you being to

were the for Realized a revenues decrease MCFE gas XXXX.Realized averaged the compared million, XX, a -- and And to gains 'XX. XX% quarter of fourth and prices oil 'XX million of of of averaged volumes the were decrease quarter fourth quarter NGL For of compared natural Most the our due decreased XX% months. XX% $XX.XX in quarter first of $X.XX fourth approximately production natural $X.XX primarily to prices 'XX. the fiscal gas, sequential these our of prices $X.X X% prices for basis in were prior our first in MCF of to average X% the from quarter gas, MCF NGL our from in $X.XX XX% down from at per prices over ended quarter an last course to on $X.XX 'XX.Realized per averaged production of hedged oil, the of QX March of XXXX, sales $X.XX and $X.XX natural the quarter realized compared to hedge $XX.XX, to down oil, $XX.XX, barrel. contracts XX% added none NGL XX volumes and were the of per hedge prior

downside is $X.XX of continue has We was production XXXX year midpoint downside.Approximately program and it at is XX% the our of our full MCF. meant consistent to doing approximately gas which protect anticipated to protection be do, hedge what to natural per it our with guidance at our believe

that of oil have natural protection costless both volumes per upside at to on at production swaps guidance the $XX per range certain and of up collars, approximately XX% exposure We downside anticipated hedges barrel. our we has approximately $XX.XX our midpoint MCF. gas the means using structure On the also which side, our

associated quarter Our wells ad $XXX,XXX $XXX,XXX, filed wells.Cash X% on prices our to approximately sequential the approximately to to marketing XX-Q.Transportation, available coming to improved LOE primarily primarily was expenses in to due increased sequential Oklahoma, and XX% due position on and quarter. basis lower our volumes see higher a those XX% volumes. in liquid current sequential sequential is $XXX,XXX, basis should also at to lower our the flat working decreased legacy quarter-over-quarter in on valorem during you lower taxes which out quarter.Production and with wells prices the hedge compared quarters, production gathering, recently due non-operated of a and lower some prior to means on performance G&A $X.X million prone quarter-over-quarter workover basis interest that decreased a

due $X due negative $X.XX successful implementation quality of and year G&A down last our the second with to calendar our now third quarters the professional is items fourth Our typically the high debt cash had assets as of and or about quarters first as hedging of And currently, was higher from in share. fees as year and debt to such year of much calendar strategy.Net shareholder compared XXXX of to XX, the our and our is to in $XXX,XXX $XX,XXX,XXX the million XX-K We million up $XX,XXX,XXX XX, as for right XXXX. like at in was 'XX. the time March at prices EBITDA, QX increase QX despite total to loss this $X.X slight of and $X.X realized in per quarter The the when compared lower prices, our volumes million gas natural fell. million December of our quarter million, meeting.Adjusted production stands EBITDA associated diluted

if generate We're will chase trailing the the required those X.XXx of to continue in EBITDA to XX-month of happy March rates Our pay adjusted And to acquisition deals down debt.Our and our return, very has XX, we disciplined. don't was build liquidity 'XX. deals. program debt marketplace remained not as

As the maturity weeks I'd maintained from call group bank our during turn for that, X, our borrowing our million remarks. continued 'XX loan September few redetermination, XXXX. extended like semiannual the bank borrowing some we at base final flat over Chad of X, I'd for a regularly $XX to our and through to ago, scheduled support.With base group our September to like thank their announced

Chad Stephens

Thank you, Ralph.

despite prices pleased early collapse Marcellus. and The E&P's lows impact macro development material XXXX currently lingering has a very in environment. dramatic gas and achievements in We on natural historic are in had a especially at natural with our gas-focused challenging activities, Haynesville

by As this. a impacted mineral owner, we be will also

have IR operator our engineering reflect volumes newly and X $XXX the is royalty assets prices IR which years.As our capacity and from Gulf risk want of steady acquire our and This bring This service, approximately close our as in emphasize Coast, a gas prices which the our probable business IR in reserves, and volumes and dramatically show activity, of increased more we and $XXX moment the and third-party facts a the our will we continually Gillespie. undeveloped drive value. current I locations, by mineral Once X development XXXX appendix that this acquiring direct earlier reserve area is despite return validated upper core cash stock to work that between at well their in spent work probable PV-XX value minerals I continued reflected the This cycle date, position to next over total be million XP, strategy in our Danielle of will I PV-XX to increasing royalty in interest would export which current natural supports mid-price increase you that our in that technical mid-price and redundant reserves. rate, current Board high-quality call. focus have Slide production into to presentation by at headwinds.To a continue categorized are strip expected cash bit emphasize. and and well catalyst continually posted these from flow by the range, searching $XXX we that also be and improved LNG by the royalty at of $XXX million. potential. discussed in of reserve drilling disconnect to to for deep achievements and PHX's flow.Since margins the I I least cash is reserve If with help gas outside value driven our shareholders normal for value.As prices quarter, seen our of can conversion This last growth which the close roughly value to proved please conversions the to presentation However, I recap portion and of by new ago, a volume of is future with SCOOP with million and the our our to years, firm, sounding performed NYMEX Cawley, explained mineral the referred, the higher.We on natural million which for is best employees prepared independent total of Operator, progress various built conversions of value Haynesville. enterprise slide presentation Slide to Directors We queue the few last our comparison. call, did current our a our the million last supply mentioned day our a always, the X recognize of that value over price. a inventory portfolio the $XXX near-term earlier concludes We The thank is way up increasing this remarks every work. reward questions. hard shareholder open conundrum timing and

Operator

Stifel. first Instructions] Whitfield from [Operator comes of question the with line Our Derrick

Derrick Whitfield

my question, guidance. help your comments. on Perhaps the material on at more based your you're to on you are year about they leaning how then Can focus WIP expected first sense how frame I And thinking your cadence regarding of prepared curtailments For production curtailments? wanted what is specifically, XXXX on and Danielle's present? in throughout

Raphael D'Amico

when Derrick, slowdown of the it's Ralph. we guidance, in we put already Hello, Look, out development. pace think mean, the I I had seen that

reflects an the increase Obviously, of to think activity guidance year. we that end be our the that. in So there's towards going

we here even the since even sit the rate, as includes they which way, conversion there. the continue a for half half some year.That the the that, be XX, and people strong we have at just assumed see -- activity, Haynesville would happening of -- the March maybe with of of they having by versus first it would we towards So well in the little second which, the some some can reported, operators biased said we of have end the quarter look bit but right, that I think year to more that we are happen, conversions, not that

So we put now, feel we change, -- remain as that what numbers if be. right here -- obviously, revised But -- the we'll might the guidance as to the continue everybody guidance to update provided. facts remain we that remain a continue the we to out. on sit on continue ground confident we we good about with we And

Chad Stephens

wells, it we well to our dependent -- interest our the Chad. really on in wells -- sections. volumes and some a I encouraged will some the this out today be the able the to X a Six basis, fall and gross not Yes, SpringBoard we optimistic big initial of we're that rates the ago, by And those actual we're mentioned.The to we waiting net the might net guidance III, broken quarterly being driver of big impact we activity that we're strong. closely the on initial going Derrick, and quarters both the can upon -- and midrange quite wells as quarters Again, completed on or into is the But in we'll be hopeful operator mid-summer are royalty in of net get that's a rates, in Oklahoma as completed. will you well those wells positively interest in completion. we drilled hit as seeing wells where provided. follow Haynesville X compares by in rates Initial where are be up in permits, booming. just some have might similar high And have or being go quite it's back the we drilled, the conversions, not very big and categories that interest the basis.

watch we guidance. and it midpoint So good about closely very feel pretty of

Danielle Mezo

our And DUCs newer PDP bit of curtailments see I we the material that, we see delay. been mainly existing that add do not thus the consistency of will rates, the top have that to that on on far. and It's conversion on of WIPs the a

Derrick Whitfield

really value -- to disconnect. your I what on regarding the And am comments, up picking so Chad,

that you conversion production your other best minerals, guys base to What is the more to have grow there about mineral way you progress the the marketing space made Are guys done, think date. You to contemplating? to interest things you're it your in value disconnect? of from great address that when you've are and Is the continuing view same?

Chad Stephens

kind quarter, we're would size, paths. between modest of we was talked now, running Deal payment capital Well, -- right several continue allocation we dividends, few deals. debt as and first parallel a to the small about

to sellers is and $XXX,XXX, but to, deals, can't in between to We especially work a price. as the strip. kind The that $XXX,XXX, pretty of the economics we're strip don't $XXX,XXX strip, sized NYMEX seller to those continuing $XXX,XXX, the sell apart. transact, Ralph bid-ask attempt far buyer alluded -- So our the Haynesville, at at $X want

the we of So midrange the into year-end we've that million million 'XX to into kind been $X not to able XXXX. sized transact deals larger moving the million, did $X kind $X.X deals, going of

for to transact a LNG decided to driving improved able price sidelines better to their any be of had for as will alluding on haven't those get the the wait much sit the able what and just assets. to sellers pricing the keep I as sellers facilities and export been We on

million, million parallel to we are potentially million would ultimately We're continuing to million, continue -- $XX deals and then $X $X say, been $XX close watch So using X that float. we've final million, deals, improve to will and that I to of kind our equity these sellers, we private potentially our range, transact larger-sized larger those is, larger emphasize size midsized -- so on private $XX that unable the and on. entities, to work.And to paths talk those continue

see multiple of it's our bit. float volume. probably out trading our and takes like gas and that that prices If daily more our to shares will improves, -- our our float. trading But better limitations take But little EBITDA of Our and of itself I itself. kind price a daily volume our and a there as improve, little and think -- improve stock of bit natural one care will expansion I will improve would care

But So â€¦ our deal improve we'll you and to by EBITDA prices when I want try will if itself of flow some that. that increases float. cash to of think to improve find take and the care Ralph, way that of right and

Raphael D'Amico

I interesting. Yes. the think watching -- it's keep Derrick,

they I think Continental of the operators SpringBoard the operators And necessarily -- private, to portfolio. on the none Permian, their we really SCOOP. then right? have They -- in Anadarko to but continues the keep more acreage that. so for updates public it wish tells the Basin. companies went Basin they rigs to of the drill that in providing And them. plays of about continue talk competes capital It the that the focus that Anadarko since on run I But me the in me inside don't they wells, would have talk about be and

if that's sit just keep market, how You try to communicate the of -- at right?So on that I -- in significant messaging the III see are people SpringBoard Because locations don't some component, that that I value announcements the are, provide on of pick is to upside that. along, high-quality is just undeveloped right? our X,XXX well conversions how in we acres, start which make III net we as we and to there royalty on there assigning here it hopefully, to undeveloped, looking progressing think is of right sort don't majority there, right? we're they they there folks more public the is now. People the believe SpringBoard And what again, that's but how and value up that

Chad Stephens

to flow. of disconnect. -- on kind road that the that in further flowing by cash the to next then benefit expansion around in down X, shareholders our become want XX, increasing the our We financials, upside. our will will question XX developed through shareholders your value which months, and And more volumes multiple comment and SpringBoard And somewhere III we fully Derrick, share and

us not too of environment because patient right to macro want So early on and in the we be now. them we're bail

We bell future. have there the here to some the III, and in asset going really in point it's high-quality at SpringBoard ring

Derrick Whitfield

maybe And one if more. I ask just could

perhaps that spread bid-ask you right wider seeing Haynesville, competitive landscape you're speak the Anadarko? that's the as Or the prevalent? Given in could not you're to in now the maybe seeing

Raphael D'Amico

-- marketplace, I I in and Oklahoma terms the be think continues I fragmented. mean, the to pretty mean, Basin of acquisition Anadarko

bit in bit where where there see smaller of But to Haynesville, characterize pond. sense, it. I chasing smaller our a place different deal which to currently sort a very how makes any from mentioned.But of so They're the the say metrics, amount attractive Haynesville. on a touches if right? that we end a size, bread and are up of $XXX-plus the right? And is the think You've we the in months, you calls, sort they have more a to upside tend say size last size deals in you would there's -- trade, at pond a bigger the of a be we our pond, of that it I large, to and any to fish this compared I competition day, the would and in smaller And at six lot transacted -- a piece if larger is deals. where Chad million over That's normal butter, the is I've we're take just the seen on of some those on capital can as took the transact transaction applied -- is, before -- mentioned that smaller smaller would big which fish I larger not actually multiple of enough bigger still deals prior in continue acquisitions we

Chad Stephens

to add let that. And me Yes.

So SpringBoard the to around of so kind get that and were sandbox, move proud lot assemble figured speaks yes, of technical and a there similar to position more a early get III to our the it It's again, a asset. minerals, able a and bull's-eye III results and that, quite a when a and to economics can Haynesville of bigger sandbox in I'm and asset. smaller running in pretty, that so able stake that more sandbox, reservoir in SpringBoard and capabilities, is speak, you is kind you're and to targeted, flag we targeted a we of of so understand, a and out X,XXX-acre room early the much little much homogenous on more acquiring nice that speak, we're a to whereas

get the what in of have the really in So opposite a different of become position spectrum coin, able a early to will significant -- speak. We that sandbox. ends to X were opposite or same to side so small there enough

Operator

Our line Meade Johnson next question of from Charles comes with Rice. the

Charles Meade

guys you play? do but operators? point how know in that's a are not going in see to -- well, if we're in speculation, before a any as is I lot what want what you until advantage threshold, question. exposure you increasing happen when get the I start to electing turn There -- to next wells then crystal I'm as said, a got have in to think And operators have ask are not things better. we're that who criteria a to in you regard. tell want need question companies going just we [indiscernible] guess, ask are rig across I to might but our operators. do your And line? of price you with you've of when for that really you been for about, number things are a observing ball far the different not count asking when got guys, the when I Haynesville. going companies turn or interesting And better, wells And you've What do curious in you think to think to different --

Chad Stephens

Charles. Yes,

constantly running flyover to at view rigs. their you up seeing we flat. completion what -- kind pretty gas of drilling and level, With XX to the on economic costs. about drilling the in cost. the Economic at Haynesville volumes about the type and Today, we're we're steep of Haynesville declines, the operators you watching So costs, it a keep very in kind keep operators rigs flat. these rigs takes the get Haynesville completion in When volumes to XX is need big those and level, drilling gross for XX and volumes based $X-ish prices, $X.XX high

that over is it's supply decline turn I from -- the that volumes around will really about.The we volumes we're talked dropping. March decline XX, XXXX, coming And been know that about between day basin XXX. drilled X.X kind U.S. of volumes. it's volume watching increase an gross below and today the Haynesville XXX. was around DUCs. X.X of That's gross uncompleted DUCs, the the decline the in in in that Today, XXX, to out sure have of -- on it's domestic was that XX% start of BCF we of And in the based drive talking 'XX, DUCs in start. operators and volumes decline drop are So domestic -- seeing, of at completing was -- part wells and had a can inventory I number just and It the coming it's the that gross what part that for production overall Haynesville volumes and

inventory 'XX, -- -- price day. a on low.So it day; DUCs, in X.X, a 'XX in Haynesville volumes rate maybe of of by see about stays we're to a X completed, we is, to be a little of the similar, kind BCF consider you increasing we're the pretty about about X X-month where what terms and XXXX, it's seeing what a for day, about a X.X of around BCF So -- over X over we XXXX day; BCF X in based when if today seeing think wells being strip the BCF

next next production, increase overall mineral BCF our given years all again, volume the which, over those over where and to years, which, growth Haynesville in encouraging day So X.X somewhere going X X, speak X happen, volume to ownership royalty will to our is obviously growth, a this is same us.

basin the So macro -- not only or effects what of how we impacts but that it gives a how view us. you

Charles Meade

me. what Yes. to private to what that Based -- public. Is you're you say looks to Or see? it And to me is quicker Chad, would seeing? it of expect I responders expect that mean, on history, I I operators be looks than shouldn't kind

Chad Stephens

next both big these don't to into consolidate don't small material going impact few there's were, the in just the side groups the But equities wells, the Unlike all of County, equity a has the new any material, the have or impact private with big a volumes. to private gross sold of that up companies the -- play Comstock to, any down I that on are years. are few real Texas this going they like Yes. mean position. big Robertson volumes leasehold, still a think Louisiana the Rockcliff just big side. the the Western out they the think growth Haynesville drive private equity-owned to got their X -- They've quite material to and gross the positions. there overall Tokyo Haynesville I Gas. got out ownership there. But Permian, consolidated kind volume in has I been of ton X over going impact Aethon, Aethon can a remaining

Charles Meade

that people SCOOP? the the at coming And in, over zones? players It give maybe there are then the that leading Are guys are the there's looking switching big back. -- a what's of activity us Or kind pretty maybe looks seeing -- Can the there. looks What's paused, happening of in steady like leading outside, the the testing new SCOOP. some smaller what's edge SCOOP? it working have latest of -- kind are little edge around a you the you're any there there's edges? from And sense the of in to who

Chad Stephens

IR company, which quite Western equity you Basin the Western the between Crawley, development running panhandle, out narrow Mewbourne, at margins was small what at or of Continental, slide this going where we larger play, out provides to basin. Well, of MERGE, the of south there Gulfport, public, EOG and kind find of playing running there. fairway what you real still tough Texas to or of to a couple mainly are out SCOOP trying toward that so Marathon, out the on rigs spine is and And rigs companies. margins gross There on. of are look drive going the game public influence fairway north the in it's this development the think Anadarko question some our look playing deck STACK, see call then out can going a fairway MERGE, of what you the there. kind about. to talking highly I'm rig is -- years Basin overall that Camino drive going of the minerals it's any some actually that your and the the when development.Speaking they Marathon, there's looked private There bought there. that the run the I But kind leasehold Apache position or material -- of are ago, a a XX around kind out Continental, it's Energy We've the that at the guys. the of in is out be a play, a Devon, that there the leasehold about there, volumes Citizen. it's on out that in out the have a few impact to given don't old really that a there. equity they're here small EOG, -- and respected small. several few other some core is see been assets they position again, but time. to smaller groups, private couple has they're is going -- for there, Anadarko around

Relations able and allocated CapEx be is is sort So make fairway to in deck going any come main to going be been that volume we we from still going our -- slide Investor any highlight where increase haven't fairway. main the to rig that the think there.So I spine, headway really this to of main in are count, the

Operator

next Our with line question Grampp of Alliance the Jeff Global from Partners. comes

Jeffrey Grampp

We've that wells talking have was noteworthy kind wells process of out your any about base basically just seen some kind improves. asset to think of bucket? and you Do completing of within estimates pretty I price as and within until or hanging the operators, Chesapeake visibility in prevalence this, guys your then

Chad Stephens

not we what basically but is deferrals think, under our date we obviously, she that but announced I Chesapeake assets has I'll that existing her completing some speak, not stated to appear EQT in announced has deferrals up -- their of production. Marcellus, Danielle, the wells, know but the didn't let that, EQT, but we're on new

to -- let to -- So referred and Danielle that. of I'll comment her kind

Danielle Mezo

agree with Chad. Yes. I'll

phase DUC some under that They've forward they at on to of don't now, seen least be We not a material is wells We material that at not a near sitting that have this this of They've moving slowdown. from are under them private the do the on. that their intend wells everything And in already time, turning do We can that future. their them time. to on development we operators in have We just completed tell, right more them. ton them. are in already here We turn wells at the Chesapeake seem where under with still drilled see interest. have of side. point deferrals with do

at once it material wells the completed. of just hasn't time, So sitting a this been really

Raphael D'Amico

the that And mean, to even continue Jeff, we have adjacent I it's the and continue wells our to mean, acreage, location I to Ralph. right? we rigs see One -- see in more new permits filed extent moving new to to thing. on converted, to our Haynesville.

level hear dynamic we're showing quality sort is on hear to it, through basin-wide it's macro to relative interesting about commentary. what of obviously, play acreage sort our it of the what So appears an here, but of you not -- you immune that where a about the

Jeffrey Grampp

certainly to on call. were already know of things, acquisition side prices And the for my on about guys I you and be an the not side bid-ask XXXX talked from that we've follow-up, super and active expecting acquisition everything given

you better, standpoint. think macro wondering have into considered coming you reasonable do Would perspective? back, a just you deployment of kind far a all Looking kind from would what amount year capital of Or on QX things with worse? expected as consistent of it of I acquisitions characterize the thinking you a guess, as what guys are is kind

Raphael D'Amico

probably interest debt, flex market that that's going I period We're to business how notice, build to deals. big right?So about be of look we faster business, at the last where whether going down quarter was gas look can if it second improves, down than And if last materially. pay you it's a year's the requirements Was up the has or you chasing to a if whatever down debt drop, had and it I pretty We're you flex Maybe repayment you do to are -- to early be it's necessarily But we're drop. right, to conservative. we're lot some we'll look good beauty year they had that's be, pretty they a they behaved year, the can on at your not when last good they dropped going back -- same. market for with for the prices, the mean, and I time? year, mean, -- cash and going of don't pretty improve the stayed of to of liquidity. same or behaving in -- cash, -- the sake deals go obviously chase or this late flow, March, a minerals or acquisition capital the go look, short the defer right? it a year, mean, we you how a at this I have time, natural not side February, guide level may working it's either it ability is the that think into

liquidity. look are it that acquisition a slow we And relatively September, for us. -- last in really the Haynesville there. already front. go then If year you on at second was build in dividends did then the year's acquisition nice we We we And last paying from quarter,

look if and so year's how But look at. pretty you to at can good happens something we got no the last right, would And guarantees, behaving can behavior again, again. deal That's that same year you we're we a this that correlation. and draw find

Operator

question Northland with next of Schafer line Markets. comes the Donovan from Capital Our

Donovan Schafer

line those uncompleted alternatively and just to when is and drilled it's that line? -- get And is that and completed, a also want DUC it how drilled completed, well but as in in does I when it's technically first, doesn't it's in, progress? turned shut classification go it's classified? turned in classified until also work drilled Or hasn't converted standpoint? of and though even sort when or do So just a into clarify a from just Does get it's been when where

Danielle Mezo

a be well would with that date, considered first see in we that correct. is the online production Until truly Yes, that this producing will and be progress.

Donovan Schafer

the a are then ones it And around? with was like would rig, these say, plus of then which have that And to Because say, equipment I particularly, the so like it I about the would so or worry but been don't things turn fair talking would create increase drilling in. shut a I about Is -- DUCs, you dynamic you more some to just need you once completion no time. especially DUCs mean, and you expect and takes fully equipment without say right, that would crews there to completed in still their accelerated DUCs, need and need production process, if go the DUCs, crew. measure completion that, through even

that follow kind be converted, hold be it's that? ready going a my more then could step in the in there's it waiting valve from really on, to like cautious significant more like fully -- really of reasons Or So up be that if kind I the are on between logic -- does completed, way? to and there of there a and logic, does mean, it's and that's turn to nothing just to progress the barrier does it's

Chad Stephens

Donovan, I I of Charles, kind to the question. of question stats -- with back when some way going the answer reviewing his is was that

of declined a to been so detail hard have and and say were turn, in they Haynesville that would has well, that a X had DUCs, year-over-year DUC to at put connected months, out rate 'XX, of rate So by March off all the if March to average about producing to lot gas waiting overall as the which just pipeline we couple the -- the from can XXX the X-month just DUCs worth the that we a a down to XX% to I'd be the in sales for gas to to wellhead -- X.X burned prices, sales, of months. don't supply know don't At completed put those current DUCs in they're that we -- terms in it's X completed X all happen? sales, the probably could that think of determine Will and be off XXX XXXX, don't to in completed, line see but intelligence the up or those as all frac they hook know to -- from sitting done if XXX about don't burn that XXX, there we production.And waiting the for the question, of DUCs month, the know crew to inventory.But operators these are months normal that as a are waiting whether they're the these on up prices But that the ground, been the categorized don't improve. -- we there again, well a decline on speak. of are to -- converting DUCs increase be would they actually we the sitting X of instantaneous but your us there there are behavior maybe operate there logic DUCs, actually, sitting is the a DUCs to to frac site -- could were go to BCF

to rate that XX normal what happen with will we think XX DUCs these rigs. rig to of speaks in So

Donovan Schafer

your philosophically of and what is would be to some natural potentially are NGLs just and in I gas, us is remind there average? oil know, kind then ways. acreage. guys prices you and SpringBoard are versus but the III Can strategically, all in mix you corporate equal, that And activities turning production -- on area on concentrated beneficial the the

could -- a something all? at is try in that movement is -- Or direction So or you there there gas? are these

Danielle Mezo

So fairly X/X, for oil, gas, even NGLs, the SpringBoard, the mix between is roughly. and X/X, X/X

Raphael D'Amico

xX.X not the common xX, account the and way the as on they Anadarko holders they Basin in pay their mineral the don't actually pay rich are -- They by gas whatever in volumes it's the some the there nuanced on So holder mind is, you everybody price Keep you it's you just some also volumes, see NGLs, see the other that a when going report they which content, gas these you're way. you the to operators of to -- -- right? mixture not us. So NGLs, for SpringBoard that the in which the but a of in versus don't is, treat -- that parts gas, the and operators on Yes. same, of stub, multiplied check get the it cases, so every better to you, same your gas right, to, volumes right? count going NGL to going because So is they -- you're may BTU X treat mineral right? see if X,XXX you're that pay way but pricing

Donovan Schafer

I I last -- may they it but invoicing, saying a taking [indiscernible] accounting they're not about place -- changes infrastructure into one come the information it's type for natural are do but yes, doesn't other was whatever of just lot more with -- lot about to or that way. just capacity bullish extraction. get can or should are too you sort guess right? NGL you're scale, be And Like of It's if that it -- from in, talked not we LNG like that questions much a my reflective Okay.So not not don't be billing question, instead know, and they has up the NGL extraction, gas. way then the infrastructure. NGL there's it's billing, situation, not transmitting doing a, but treated doing just there -- I

are is not or particularly And then doing ethane just more when and extraction or right, doing so I'm natural motivate that kind if gas with can rejection. ethane prices prices or are rejection all -- of oil so curious low then equal NGL

NGL there developments a kind? like anything coming new there blind a but is could impact -- positive, to any have that spot there? so or meaningful online if -- trying And figure material plants plants potentially of out are there's a Just any or coming there

Chad Stephens

smaller NGLs, barrel as NGL X -- closely. and there, call XXX,XXX SCOOP is has between -- don't demand. natural out of to the out no the that so of a what don't to of day actually coming that X gas global they're of that plenty a turning going watch But out you going 'XX the 'XX over -- coming years. for see groups Mid-Continent maybe the X to There perspective, to X the building to -- so online that a to that's there private basin. X know to Energy supply building, capacity that's for and and out in forecasted really and main there's the future that next new is NGLs to several there's the or near a barrels needs so the macro U.S. there. processing ethane NGL Haynesville before dry that's We needed Basin. be huge say, sales.The new Enterprise, especially barrel, driver And of the the we the online the really from Delaware Permian process is basin other are the especially Well, in gas NGL I coming NGLs liquids in in STACK now don't equity years gas, production Basin, is Transfer, next But -- on propane the come demand wet rich be forecasted gas Y-grade

That's once some So this I NGLs. demand. pricing global on feeds there's our view in upside the of supply and new terms think on probably comes

Donovan Schafer

Chad, some make macro increase together kind correctly. different like is in there data based lines of say, of or dynamic. understanding mix that And along just but the kind not putting mix you in I'm Is NGL comments what be So terms come would could the pricing sure just that NGLs? you something the on, those do guys then additional like just My benefit capacity points the be impact SpringBoard right? here processing with would contribution, more of potentially could III the see to anything more of potentially would that you that from to from, of now kind

Chad Stephens

the of some X types If the are the month per coming you mix, in gas the ethane on Yes. the your ethane -- butane gallon question, barrel XX% between it per ethane, off And of say to each I Btus barrel. is based NGL that as propane, gas just to understand ethane which cents sold NGL a Ethane as when and price dynamic propane, purity XX% in is quickly, represents gasoline. MMBtu. products and the price, and of for typical compared dollar selling pentane, between the leaving stream

make in the the a given in that quality any between take based on have to dynamic month the of of change ethane gas the So treatment and can gas specs. leaving barrels price number ethane Btu.Propane, selling meet and pipeline it to it as propane they the out

any become increase be dramatically an scenario Permian the don't the versus oversaturated out issue of what think problem Basin. oversupplied barrel coming I -- or SCOOP in NGL will probably, overall it but the will not or will of So a or out

Operator

And we the reached Chad Thank I'll over question-and-answer end Stephens the call turn the session. of closing back have to you. for remarks. now

Chad Stephens

I'd Again, months. their note employees coming and like to Ralph for our over weeks the continued I'd our and will marketing investor like activities that to expand and thank to shareholders support. I also continue

will be the Cross Insight Boston X. Stifel will we Conference be hosted Sector and on in June Specifically, participating in that X

time, XXXX call meeting day. our don't one a second hosting out any nice our If or at IR. forward to would events look interested or next at FNK Ralph, the early in quarter these please myself, Have reach be results. to to you We folks discuss August hesitate to in at of

Operator

today's concludes and lines may your you disconnect for this this And at Thank you your conference, time. participation.

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