SBOW - Earnings call transcript Q4 2017

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Operator

Good morning. My name is Felicia, and I will be your conference operator today. At this time I would like to welcome everyone to The SilverBow Resources Fourth Quarter 2017 Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks there will be a question-and-answer session. you. Thank Instructions] [Operator Mr. may conference. you begin Atkinson, your Doug

Doug Atkinson

Thank much for Good morning, you very everyone. Thank joining you, Felicia. us.

are Gleeson CFO. Joining me presentation occasionally Steve and refer CEO; Sean on Woolverton Riet, on the and closest it call call, Adam today's so to our certain it. measures to we that our note references earnings we updated during I to review press posted an their this may We are website our financial non-GAAP reconciled in the which measures, Please GAAP Van encourage investors corporate our will to make release. COO; to

Our discussion call on described our in which I'll our which which of are available subject today beyond with that, turn are the documents our also Sean. on more to fully filed to risks statements the are are risk control. SEC website. and uncertainties many include will with uncertainties These over And forward-looking and

Sean Woolverton

you for our Thank you, everyone joining morning. Doug. call thank And this

We was like When are for assets, to the a the a company morning, plans XXXX and people. attractive gas I XXXX. report This When our was out opportunities the closing that. I the and looked joined veteran oil was build about company. the foundation transformational pieces: chose professionals. quarter; oil gas company, I'd was for sheet and and I strong finances a position, I upon Eagle year Ford an knew in to foundational I I believe a briefly the team and we what place successful ago, three SilverBow. saw accomplished year needs talk clean excited for what company at asked in balance pleased support company of and I often I to another to why a successful

the Officer sheet believe XX% acreage with to we added significantly This for enhancing on future over facets, our we our economics balance As to XXXX, all Adam XXX our our an position, have to now We drilling Specific in acreage at favorable portfolio. new notes our adding acre Eagle very as in other lien this basins. acres I improved and locations. our three $XX cycle Ford Chief November. Eagle cost million. think assets Steve year to I over back full Ford XXX,XXX attractive for Operating acreage the XX,XXX about second by providing adding added portfolio throughout We our per peers and compared a acres acquired

position front, in team implement his to flexibility steps and for took helping with to added we been the few the for to company only financing see the ideas continue This has we second perspectives successful already approaches an months, sheet to accelerate growth lien million people, organization. note. operating the across In strategic liquidity our refine manage a regards technical we we strengthen prudently balance can active Steve and disciplined quarter to new senior objectives. processes and our and and the fresh balance XXXX. company closed provides the a On the proactive on fourth $XXX sheet

to and Eagle fourth Ford cost execution in quarter XXXX. compared operational Southern of volumes position our a with to low drilling of XXXX, growth in our Artesia campaign high in program shallow XX% the delineation rate during return terms our Fasken gas In contributed of combined

improved to with low be We to a we the initiatives cost operating the Much side, operator our efficiencies in to our the reserves, accomplished are to-date reserves, that. work his Switching mark with the become performance combined soon cost compared the of in XX% believe build which will compared to trillion we remarks. to was to in focus lower to hit on strong of expenses. lease On an we declined to to drove on find touch XX% XXXX. basin. an our structure, to X equivalent cubic EBITDA XX% in well costs XXXX. have operational in resulting enactive ongoing Information increase feet continues translated way foundation teams our during on prepared bottom-line, and a our that Steve this of adjusted XXXX accomplish growth our

are increase Oro minimal increase AWP upside from our reserves We South supports believe Mas. XX% approximately our XXXX at PV-XX an report larger over million, with our as $XXX reserves has associated Uno XX% of here Grande, blocks acreage of multi-Tcfe to XXXX, proved of Our our undeveloped. year-end and

Finally, of results. drilling XXXX campaign, our in are our we with terms pleased

rate In Artesia, addition understanding Fasken successful drilling significantly well Mas. lower including drilled of a return, the legacy Grande, Uno year of during we Oro higher in that our wells of areas Ford our Eagle to other and advanced number

through successful increasing a our second allow rig. value rig This to the us our addition program are second development, of portfolio. us accelerate XXXX entire our Given XXXX drilling activity in will unlocking we from

plan stimulation this all and shifting designs of portfolio. our areas So multiple ranges advanced throughout XXXX, we to volumes year test sizes with to of

Additionally, we certain honing management testing are with currently pressure management in to concepts areas. regimes different work on in choke best

Mas acreage for attractive added upper well additions XXXX, economic and leasing we front with drilling the at with further are cost Fasken pleased in acreage as full gas this returns. Ford Our strategic our development with to XXXX, that program very we cycle us Grande, in leasing continue as can provides Southern delineate we inventory and program as at On Eagle Ford Eagle low mode our to Uno move so XXXX. Oro in we structured position, XXXX is

XXXX of dedicated to this have effort. our leasing We budget XX% approximately

a assets. additional present large still zones see through zones best the and upside Austin well horizons landing Chalk. as we as across development, opportunity pay delineate the inventory potential these how Ford, our believe We're existing our additional Eagle lower Beyond including stack we assessing upper to within and these testing

although We advancing XXXX play it a this our way are we're gas for the long very potential resource still tremendous days of early the and Ford go base gaining is play believe Eagle towards will the pleased is with resource. we activity assembling the momentum in

the addition with personnel, proof initiative of and have such lower lifting gas are we such better This We to set unit actions proving also reductions, to to lowering returns our margin we structure our of take In drive per allows us continued generate cost. through efficiencies focused expenses competitive a streamlines and low and to the existing further But operating we a need costs. as to portfolio portfolio. resource Olmos today. the as business on as cost [ph] divestiture are continue to as our AWP leverage well combination streamlining close is cost divestiture while our to

are favorably play our guidance and for country. with targeting plus XXXX lease gas operating from which processing You we expenses, roughly any $X.XX of believe midpoint, transportation the will see in at competes per we Mcf the

I by was So a the XXXX close saying will for that foundational year company.

place in build assets, Coast have Gulf people and formidable gas the a to company. financing We

over For And a year where we to with it it's asset of will XXXX look hand base. I potential Steve. prove that, to the this

Steven Adam

Sean. you, Thank

day the August. our from at to Fourth from pad, quarter's third gas three feet for equivalent in Moving well cubic benefited per worth XXX fourth on to flush quarter operational benefited which came due adjusting in feet Grande cubic production wells results equivalent. for performance an of first of including production which full of divestiture four These one in gas the production production the especially million to Mas. After Oro from well driven XXX our quarter. wells sale, of Fasken, quarter, late the were and the increase quarter XX.X% quarter, strong for in a Olmos pro-forma to online volumes new fourth to also was by net Uno expected in drove compared Artesia, quarter our in base, two million a production the brought

quarter feet first day. to we pro-forma divestiture cubic are guiding guiding XXXX, adjusting equivalent the of XXX for production After per a mitigation are from the number million of and sale equivalent into management of XXX in AWP for frac out daily production a XXX million for million the average million we XXX property. of This gas Xst Looking cubic day, production to quarter our from Olmos date. March feet fourth which of change impact per of in of to deliveries, first the Olmos reflects drop quarter the gas assumes closing first

wells Specifically, that bring of as we net quarter fourth timing equivalent relates to three brought to of of to it first quarter-over-quarter, on deliveries plan the equivalent the in net XXXX. X.XX compared first in on XXXX we wells quarter

reminder six Fasken flow As we the back during last week. in quarter commenced completed first the pads a only well

production XX nearly wells XX of production dynamic then pad day. swings reduction have of illustrates flush we month offline to to Additionally million quarterly impact fracing timing production, per of a in this large February, tooth during going stimulation pad cubic large accommodate due in on saw that during This levels. can the representing the feet surging upwards shut

Moving our drilling well drilling, on deeper this many year. pad drilling while optimized our for optimally is at to rig, the current our not in is do new efficient areas anticipate single designed pads being it for rig portfolio. gas We

six quarter. coming production another in well in online drill to expect sometime third We with second pads quarter, the the

drilling addition For associated the wells, of second are net the timing XX rig. which the XX is a to complete to we expecting of full year pad reflective with and

year, we're expecting to to a that our capital production the Looking corresponds budget. see at in backend further ramp loaded

million, for million Our of $XXX and a is drilling $XXX program which XX% XXXX to for capital budget completions calls capital. of

well $XX million $XX to as and an million on We million additional spend. approximately expect on as to spend leasing facility $XX infrastructure

in continues expected separation infrastructure installed quarters Uno systems in well and and be need. Our ancillary as other with coming as Mas the Grande development Oro treating advance to gathering to

unit to on and functions. operation our chain evaluating taking and supply our of costs, procedures all and processes costs, are we for Moving

labor cost that along disposal chain chemical by our While well as costs. reductions in the savings and opportunities driven value much debundling services spends. selective for early of cost and other have are aggregation saltwater reductions OpEx to of costs, as significant been CapEx and There both today

results already see leasing in $X.XX $X.XX as we to quarter prior to quarter. equivalent of compared reported fourth starting in We per Mcf the expenses are the

expect Olmos We and associated the divestiture XXXX our Mcfe to due operating lease rig. in growth throughout with second the to per our decline production expenses

than cost significantly addition, unit our carry per Eagle In higher AWP Olmos assets. Ford the wells

our portfolio. So their LOE Eagle on Ford our cost lower reveal will four divestiture

additional are leveraging Additionally, pure goods our drilling the we to directly manufacturers. for second services which for and selectively campaigns adding rig provides to scale,

any expect also with efficiencies. offset to We inflation additional XXXX in

times For planning a example, of the for a second improved portfolio. rig result we to as cycle are adding

include will in job year. selections, Our for management assessing else to for see excited are a of improvements we rigorous services. we performances Keys completion bid areas has and during in great team to our production and commercial thus success reductions done us the what do far cost and drilling can vendor

wells, As history. towards infrastructure earlier, which in under us pad upper the largest I were was Sag tight as including the the and upside. proof-of-cost. [ph] is pad well for cost came Austin we opportunity Bay further Ford Fasken, the weighted recently assumption existing for three Average six Chalk mentioned for this significant Eagle we in more curve Fasken million a at completed versus pad in $X proof-of-resource place a in which area Developing potential included leverage company's can well

lowest growing at Additionally zones inventory. view cost additional testing our added of we method also

Grande productivity Fasken and and upper in Ford, are significant we the challenge we across early these have thicknesses which the Uno potentially thicknesses sweet delineate planning evaluated. including stimulation. such, and These warrant interval. Eagle at the spots successfully in Ford for these us Eagle lower zones, test landing being As due now Oro Eagle The Section. results targets more multiple is In to other are currently appraise to Ford entire across additional Mas,

and fluids, loadings are currently wells for Ford Eagle Southern gas our intensities designs Uno in our Oro including Mas. evaluating We completion and spacing, Grande top

pressure the out well, we NMC rock stimulation pumped as designs first Oro the fracing. to as We less with second treat to optimize opposed to and We continue to are and design this Specific a EUR. further continue area to between project and balance XH to across design that reaching the from returns program, continue than our provision. proppant we stimulation Grande our optimize with management increase XXXX are higher newer cost the focus test profit volumes frac we in choke considerably bore our increased associated enhanced our long range test our on management planning techniques and carefully with of well, volumes. From well entire testing effectively corresponding

our efficiencies management for position. Bracken also reservoir We assess recoveries This practices our which to various pressure management wells, approach recovery continue are Bracken were choke our areas these provide our XXXX. recovery at wells our employing and higher we of To and - enhanced managed gas in believe will assess We Eagle returns. initiative drilled and said, better methods. and to method Ford from Southern other value pressured

reserves completion we upside at a maintain we and further we equivalent. cubic landing zones Mas. pipeline acreage multi-Tcf there with have in at and As reported I'll psi of with AWP wells Sean associated areas additional We reserves Mas larger Uno XXX position natural trillion position. we opportunities of reported pressure. place X Uno XX,XXX are as out step just where Gleeson. acreage Thus what project and mentioned, Grande gas Oro minimum the from of in are We across Southern are have to newer believe about supports Ford like feet today that With our Eagle including assembled design of and blocks it and thickness over we Oro excited turn over additional Grande, XXX strong XXXX to evaluating feet our

Gleeson Van Riet

online in quarter with Steve. our strong fourth XX.X% of Fourth ahead third from hedging or of cost, from highlight XX% from Fourth representing of million base the equivalent I'll including represents production operating Thanks, a quarter was results, a average came wells of three day, our increase today, performance four the program turning structure. well per Production quarter, our revenue and feet financial comments quarter. well $XX.X which Artesia, pad by cubic Mas. gas, reserves. online schedule quarter In benefited Uno on driven capital that also gas first including production third XXX late in our in the contribution and quarter XX% million my for natural

per was Our average cubic hedging $X.XX with realized compared natural $X.XX thousand gas the quarter. price in excluding feet third

illustrates a Ford for why market Henry to discount a and is Hub was Our $X.XX great gas. differential such the Eagle selling

a was the Turning oil compared LOS which was hedging $XX.XX to the per our we crude $X.XX due above realized off trades to average WTI fact liquid, excluding WTI. sell quarter. price premium that A barrel $XX.XX in differential selling third probably at significant with to

roughly Our gas XX% liquid in average the WTI. to increased realized barrel selling of quarter $X.XX price natural per $XX.XX or

XX% a significantly same added then midpoint since hedge through book guidance hedged hedged we XX% we to Using XXX in cubic risk, quarter how our hedges point few were XXXX, our At plan XX% to the and integral have hedges. to adding flows. is XXXX. per protect we continue more to feet Turning million manage level further of XXXX in systematically program hedging, in XXXX in our we and day even added additional equivalent hedged to this that and cash but assuming XXXX, hedging

the and NGL differentials As in gas LOS our now our we're in favorable both we in into call, some Steve pricing. $X.XX quarter, compression other entered compared fourth driven mentioned level continued Turing on last LOE at addition, costs, $X.XX quarter and to and Mcfe was hedging field the third reductions discussed. lock force in hedges optimization, to per by labor initiatives costs the that to

fourth volumes. first quarter speed we're uptick equivalent, of $X.XX LOE of which the lower slight expecting due a $X.XX For primarily represents to per level, cubic thousand quarter expense XXXX, to

quarter sales with expected today financial, of of full LOE guidance forward sale further of $XX.X has so costs Olmos exit and first an month date our As going higher effective reminder, expect Olmos January AWC as our reductions in price to million X. AWC these The our a a close portfolio. assumes would is wells two we

our cost production. final revenues statements X% February production by adjust financial This end and the of and the count approximately wells those few downwards generated by in of first with our these all cash payment recognize of XXX will months. the till represents well settlement amount net we quarter such during and As the of our XX% divestiture fourth assets

our So allows our Ford footprint. Eagle up portfolio core around of personnel leverage towards a our cleaning way us results, our a move-in noise lot long to from existing across the reported goes

primarily had lower and were taxes quarter full X.X% significant due one-time of Transportation primarily to as for lifting at G&A Additionally, the LOE severance fourth despite of the Adding COO, unit group. came XXXX favorably million per revenues $X.XX from cash the $X year and always a fourth $X.XX and adjustment $X.X compared gas a slightly up $X.XX decline our million to wells is replacement than which to the full $X.X we levels, for $X.XX the a in year guidance Mcfe. cost our per officer quarter, quarter. per in the related $X.XX was the quarter oil basis, our significantly Cash reported quarter, first together processing in payments, cost of we LOE annual for have which million timing million such on Mcfe, to quarter significantly we to G&A higher third Production our OpEx which credit. was prior of peers. another of XXXX. occur costs due bonus the compares to the due of to our C&P for XXXX to our of in first We're guiding total for believe to $X.X

of production EBITDA XX% growth a to focus from increased in primarily and full the $XX.X our For our to borrowings Cash due came we're and million adjusted prior year the quarter million. $X.X interest total higher XXXX $XX for million. the increase at drove million credit cost guiding continued In to quarter quarterly G&A cash $XX.X in facility. for strong under

$XXX our were to notes, related XX. million interest of month half the on December reflect second issued expense interest which our lien Additionally

in the quarter. in in We Mcfe including capital for operating million $XX per $X.XX all-in-cash $XX on the $X.XX spend compared the quarter in to and at prior came acquisition. approximately Our quarter leasing million including expenses G&A expenditures

Additionally and ARO split liabilities we under in third and of Chene payables current million $X This over long-term $XX We million obligations million liability spend for to between abundant De in ARO costs in versus gain million Under a and reduces transaction the $X.X party. million the between do our oil transaction non-current $XX.X $XX.X properties. the $XX.X million, removed by record we Bay our split $X.X not any on we and recognize between accounting million our our recorded $X transferring and on is a the which plugging to difference payable contract, BDC liabilities. a decrease capitalized accounts full liabilities. gas million LIBOR $XX.X sale price million instead

our Additionally, during sheet million $X.X of sale XXXX. from of move AWP the ARO balance Olmos first will our quarter another

on ARO favorable streamline of basis such We $X $XX further level company our As a favorably XXXX our approximately portfolio. highlights this as which over liability size, our be XX, ARO for XXXX of low pro-forma compares December to which extremely the of would liability benefit million a very at view million, [ph]. our

said, Our in quarter, our rig net capital in until first rig from this startup wells net the XXXX. second increased per the XXX for approximately we of net XXXX. turning million XX plan for wells and to to we XX equivalent drilling getting between with since the then drilled to in a of XX capital, XXXX any XX wells an net Fasken, completion at of completing to XXX in second XXXX the five to million average feet to by end drilled XX provides Approximately Since operated program have from end to to approximately will typical X XXXX and of in wells late compared sales, primarily million operated its and sale forecasting XXXX. net $XXX expect We're net drilled, compared towards be is our in them XX started, wells, drilled them driven end won't budget wells XX wells AWP, year rig full of just to we XX to at index allocated wells XXXX. seven production is Oro to million completing $XXX cubic finish day XX% to Grande. spudding XXXX, wells second net That lag XX in bring for

sale. on provided equivalent to as we XXX to reflect the XXX XXXX cubic Additionally, XXX a reported million day feet first an per quarter million million million to XXX basis and AWP pro basis on guidance forma of Olmos

of so the Our XXXX second strong guidance, and it updated the the first presentation XXXX the refer our our wells it expectations. on the to half production includes latest quarter timing Well in six commencement half for first pad and rig, well some Fasken growth year full of for corporate of into please second but sets year, lumpiness XXXX. of us for with and

our credit million $XXX approximately $X.X XX, million consisted of bank cash as of of December availability XXXX and in liquidity Our facility. $XXX million of on

previously with As borrowing our $XXX million our increase $XXX announced, concluded base million. to an from of fall redetermination

borrowing and flexibility our The and in benign issuance prepayment lean been subsequently taken hedging flexible base However, million our cost sheet of some are hedging our with enhanced relatively This our second the balance with minimum requirements, in lean second penalties capital prudent the care strategy proceeds the with grant line has from which connection already of. have of capital. attractive reduced our and was notes liquidity increased $XXX note. significantly to associated with

our liquidity syndicate their and thank to to support as testament are for team's our strong sheet a like as during second solid Our and the entire continued well our fall balance transaction. redetermination I'd banking efforts lien

wrap our from our our capital We up operations generated At of program expect covenants significant the borrowings quarter, comments. and with were to headroom. prepared it and fund full compliance our fully fourth had in facility. with the financial And cash over that, to Sean end credit we turn I'll with to XXXX on

Sean Woolverton

Gleeson. Thanks,

summarize, successful inventory on at objectives. our we portfolio. momentum We successes year with a as through with of great lot XXXX positioned campaign execute a a our field our expanded ourselves XXXX to every was drilling So in to

low rate leveraging with margins production costs. of maximizing by our our to XXXX to about think wells grow continue operating attractive returns our beyond, by As drilling and is we and goal

with continue driving efficiencies operate a cost operational pure focus to We and structure. on leading

substantial locations that attractive strong has continuously drilling We opportunity have returns liquidity years. we veteran set. that with developed this of are a are to this deliver and high well working positioned a a prudent Along back for the we balance and with robust call. are of inventory for the point, growth a of number grade it sheet At to Operator, coming operator turn operating Q&A. I'll ready strong team, the Q&A over this we portion rate for

Operator

question from [Operator the Instructions] Your first comes line of Jeff Grampp.

Jeff Grampp

Good morning, guys. quarter. Nice

Sean Woolverton

Jeff. Thanks,

Jeff Grampp

if was fine smaller Maybe the be of guys XXXX, guys or are you details you in some on just a tests little hoping these bit there start helpful. to did bigger little I more I on a some maybe that off could some the Is looking some expand of more that looking are are just you guess changes optimization there guys continuing kind be may commentary of do? of at. tweaks to guys it you and tuning would

Sean Woolverton

I well and let he table then we'll some us. weigh to for good start, as Jeff brought Yes, maybe as in the and Steve ideas

have La you McMullen. So set at about days of the the across part the way that Ford we upper Eagle early and and the and really kind Salle large here, we've inventory specifically spare the of Fasken it accumulated is think to gas position that Southern in large

there In in with pleased some results concepts area wells back We per the stimulation cost the to two site. there. I So next close the a of X,XXX to we tie think pounds early would scaling well that that of foot, with on test some to light is now we very we the the stimulations lower thought we're seeing, X,XXX foot. about pounds stimulations. at pretty first results Oro test wanted did per with larger

these window to in course year. of in then the plan that Ford wells go per drill, next expect upper the expect the test deeper to and dozen Eagle weigh maybe pounds of we bigger cost And series we Probably really and than trying this can plan to X,XXX extreme. that Southern we even drill gas So down. bring a that to wells

So bit things that's general other more talk the some on little maybe I'll side. stimulation the a Steve kind overview. of let doing of we're about And a

Steven Adam

it's portfolio, do delineation this because the Thank you, currently in and interest opportunities Of some across Sean. we're not of appraisal. yet just we're no in to is a lot its that entire raw some characterization the massiveness development. in Admittedly this SW [ph] appraisal Yes, of seeing the just early of phase a more better. the case having but with of lower opportunity. opportunity of try stimulation say, that were side which seen is in from in It's design kind on more that that's able to what leverage the seeing than development that we we've terms of a was successfully to an mode, we the Fasken, lower of we're

some it more. of stage detail, and effect strong bag have to resources, as to relates are work now get we've With as we the to success designs go a So clusters. developing degree also still these the increased per in a it's into towards to seen more to that density X,XXX pounds foot seems some mixed that looking the and

the all rock then field but as poor some are not other areas, some equally in stages. of early we've been seeing new in more where returns. that's some working to finding have rock some we're some that, it However, as some then lastly, density enhancing as the relates the spaces increased falls and also filling of technology material. our the calcite with to diversion well been of areas, of more Added carbonated some and of And we're calcite cluster to

that fluid assets. some changes, to introducing design of the use of complementary been we've some such, As different being

better. just So that's some just of than the bigger detail to is support more

Jeff Grampp

kind given lately about go be where looking would for just going to maybe referenced, get Eagle today some And over and of of to helpful that to, down what a you guys test maybe guys switching guys then assumptions Appreciate some those kind of stack great. what to details. you Ford of sense development talked kind us are the be have peers to? you're I sense Alright, down guess, give you within a you other might at a spacing the can guys where

Sean Woolverton

work Yes, strong question, we lower much as that's and from delineation do because right to we that Fasken. towards as an in can areas looking it's we as much something now. us insight with reservoirs appraisal for these what take as you one our more others. knowledge it's But knowledge see, that thank our well especially have across the thicker with so fence really both we chemistry own I giving I'll Because

end configuration So probably any fast for the you potential XXX being I forward, it to in stack see than be zone short, XXX. if narrower same don't and with play

some We the in design. our and modeling towards tighter are to down those our frac XXX bringing testing around modeling of closer XXX in XXX range we're doing

Jeff Grampp

Okay, if perfect. can team kind kind I guys sneak And of going then you release and referenced similar from detail. guess in of execution kind big in acreage I development. more a That's with capture more the of great more XXXX one to

I maybe of bit that are the was at getting seeing and where kind between? being little guess we wondering Or inventory happy a far So opportunities now? is guys function more they're of fewer you I with levels,

Sean Woolverton

Jeff, this is again. Yes, I'll fill Sean, that one,

But as more drilling help We which testing increase will operators play, it more competition that the some in be designs. seeing with leasing. as are we've the competition should completion seen momentum on as well come into behind

our be seeing the expand we market. budget a And Ford of we'll XX% opportunities it see Eagle this come leasing up the on about if if of And have number warrants to dedicated market have more that A&D to front are the heat packages year we'll We budget it. in into we leasing. opportunistic

be front. we'll the So on active A&D

that us there. So can Getting even returns XXX,XXX willing the if mass. good in we'd to it the we're to inventory assembled. was we portfolio of push the and to it to acre further But size generate warrants full to like we've cycle critical get important drilling

Jeff Grampp

Alright, sounds good. Appreciate it.

Sean Woolverton

Jeff. Thanks,

Operator

next comes Ron Your from question Mills.

Ron Mills

my of been Thanks All answered. have questions guys.

Sean Woolverton

Appreciate it.

Sean Woolverton

Thank you.

Operator

question Wyatt. next Your from the comes Ben

Ben Wyatt

Good Hey. morning, guys.

Sean Woolverton

morning, Good Ben.

Ben Wyatt

of you any I window, of footprint acreage almost one would into there the it his parts If are make of questions, just things, do window the filling sort? of adds gas kind on maybe of new you last other can a acreage go some is in stay more are, that you on side going the focuses on to that Jeff guys guys gas where on asked a one

Sean Woolverton

going the up Crown's of Trough over gas well and scale is the all County there from at [ph] X Eagle acres way the Ford million Webb look You fairway there. through

around now on are acreages. So, building we areas. sitting around the scale existing our XXX,XXX we're focused Right

Oro So net Uno and Mas Grande, AWP, acres. Uno look over from about just really Mas XX,XXX through if you Oro Southern Grande we've put up in

that teams now that's of right across Eastern building Oro from we block although that fairway right consolidated have another see our well. looking we will of Grande Uno putting the But really So, a Mas. do of Western opportunity if have part we in part as concentrated we're the and entire more along block through where that we in come

Ben Wyatt

those I about obviously frac as wells. year, question wells crews it, that's just helpful. And this I you are completing around maybe Got XXXX, have appreciate that securing another maybe going think trying Sean. you complete to it, second rig just gauge guys then guys on more to confidence

around any Just that? you of can kind provide color guys

Steven Adam

a well. So, thank you our supper One, the rig of in going up crew drilling contracted stack both rigs of that question support rigs. to frac second just fast are be we've picking we're and that it's for as

cost asset year. side fungibility support into us entered I across in prepared remarks. entered provider throughout loaded, that our gives able lot with not entire frac level then a time a the those that to have on have the mentioned dedication slot we were but durability also we of So the and the we've To as frac in into

Ben Wyatt

Very guys the there else And here cost maybe left should on curious good, of congrats just sell or driving that it's from me just guys kind is of that's more of really - to the forward? going kind Olmos costs anything lastly higher the clean up you then level Steve. that we appreciate, think property, lifting can down with from wells here for efficiency

Steven Adam

been want XXX pretty so one be about XXX streamline production. our make with drilled really look really forward. going up see we this six that eight have The The last currently way the that. I to wells but probably so Yes, we about but are that, at quality think wells ARO keep some lower don't those wells, going Eagle is probably forward, are of point to those over abundant of years, We reason low to new wells, wells. clear Ford really we're portfolio very producing have have wells XXX decades. X% to the Those XXX that for shed our may remaining cut of intertwined do to

So, is going to then want I with think and we're the down to only to it direction add that move forward. to would we portfolio the it go

Ben Wyatt

up keep it, appreciate I guys good Well, to good. work. Very

Steven Adam

your Ben. Appreciate Thanks it, for comments.

Operator

next Aschenbeck. John comes [Operator Instructions] Your question from

John Aschenbeck

and of tremendous It's for taking morning, last the really update. on quarter's congrats thanks amount just recent Good all since questions progress my announcements.

So…

Sean Woolverton

I appreciate John. that,

John Aschenbeck

sure. Yes,

production on your are XXXX sequential First prepared decrease. understanding helpful question is really production the QX remarks profile,

current are what the prepared you momentum an end just, at you I exit but some and So, guidance seems weighted this through year in of rate least you it back exit for looking trying rest imply your have schedule? remarks, should guess, pretty year, that your significant as XXXX the given like the is at think I tease the

Sean Woolverton

give for bunch guidance little QX. really if of kind at of don't but Steve quarter look pro-forma going We be reasons you thanks. out walked Yes, to kind stuff of down all given right a kind bit guidance a where basis on first our through a of

is rig of much. benefits as get the think as QX where can to I this we're probably second as drilling figure not I around would think. get in be out said, the we're we the the what QX for is don't kind by rig QX pad you second probably That starting impacted

growth the the that really of half So we is back year. have

back QX and you own amount to it. big offline, comes be of stuff Is and what the both is picture they sort the that's the some and with back of helpful? that's talk very in that XXXX very then but have can equally of of way given will think become happen it to I strong a going in we will yes kind the back and but everyone QX think I the think their think is and growth again I and half is year think have half that growth about of So loaded we that I think where

John Aschenbeck

you Thank helpful. extremely for that. it's Yes,

with will, next data if looking into of So expected into you or that of begin you of cash drill that projects plan bit generating you free the kind after cash flow. transition but of I to cash How that after think return forward it neutrality kind do just suppose and to point, or just pursue in question XXXX, returning when do begin exact longer higher the lead as do you continue not into shareholders too growth? continue not you flow you're my the going

Sean Woolverton

you've lot put wants. look suppose highest that Yes, I look your a shareholders return I growing do and high capital and are you when rig sure. think mean, opportunities a in to to and best to invest they for team the use projects got generally management always that's what of you company

So, I look management always a in commodity environment are is too. a always capital team think the we volatile we a bulk markets at live will bit what as have and

and get add Steve flexibility financing gives second doesn't you undrawn. seven which again to putting to low we putting mode very where volatile with opportunities things to that last we the company that's I a think revolver the of is out leaving shareholders more of of attractive that the end think kind cousin broadly. that. So could sets in place look our think And on then down kind a think year the we growing lot a of deep are returning cost less we've growth for solid investment at all that want together in versus where re-determined. as we big if the at whether lot return development, that well I that think capital financial days took get I of Eagle is keep of again are lien that point about has bench company pay really inventory very should when what at these some pending rate thinks do of year want liquidity have, lot give in is But or of and kind our got leasing There of us place lot us us really Ford a road fully the the of attractive steps we then we under kind hedges and to I we that a we

John Aschenbeck

me, That's great. right, helpful thanks. it, Very it appreciate color. from All

Sean Woolverton

we about guide sure and a Okay. there Because call with to happy to to we're And want want later modeling that think. as do give make stated if analyst guys certain if call you talk are to to any us what happy line that.

Operator

more There time. Instructions] questions are [Operator this at no

Sean Woolverton

you everyone the a thank and joining call. operator you Have thank Okay, day. for good

Operator

conference This call. concludes today's

disconnect. now may You

SilverBow Resources (SBOW) 1 Mar 182017 Q4 Earnings call transcript