SBOW - Earnings call transcript Q4 2018

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Operator

Hello, my name is Launi, and I will be your conference operator today. At this time, I would like to welcome everyone to the SilverBow Resources Fourth Quarter and Full-Year 2018 Earnings Call. [Operator Instructions] Thank you. I would now like to turn the call over to your host, Jeff Magids, you may begin.

Jeff Magids

Thank you, Launi, and good morning, everyone. for conference for call. much and fourth very XXXX full-year you joining our us quarter Thank

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

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

Sean Woolverton

everyone, Thank this you, you, our Jeff, call morning. and thank for joining

pleased to for SilverBow. We execution closing was of report what quarter are year a another strong out

growth, sheet. XXXX on exceptional of our a focusing disciplined management structure. Our our XXXX, strong place, developing separates our per-unit both With of company in and and our from acreage out drilling capital the quality expansion people of potential by bulk of taking we XXXX. for I the This what and a highlight XXXX demonstrate financial we've morning, operational approach and those cost growth assets. accomplished will assets, lay quality we briefly balance elements and discussed In spent objectives portfolio in our reductions, results what others: to our continual

two-rig We for to also develop data. our across with been active provided but drilling the program and majority us and not all of of us the pursued areas. terms our delineate position allowed This year. we've acreage extensive program only assets, the In valuable a

representing at of coming We both in nearly higher approximately and than reported XX% quarter second our midpoint high XX% program strong guidance. XX% Our of the NGL the oil full-year growth year. fourth guidance, quarter-over-quarter and back-end led the to with in in production end quarter oil production loaded growth of the fourth the half

indicate as results look percentage overall portfolio, production of commerciality liquids XXXX. which recent we of to Our our a the in increase our

were we On to than originally the side, cycle scheduling. bring cost compression efficient sales structure and to wells we planned more due to time able

XX% year-over-year. continues both Even as and the expenses. team cadence expenses capital in a per-unit on decline basis in the operating reduced operations of to opportunities This expenditures our increased, lease by evidenced find was

Our totaled in, relentless in us the one operational drive per section. and Steve the cost additional today. target our expenses All our delineate of efficiencies cost reduction initiatives further $X.XX including operating cash competitive G&A fourth the quarter, continues in provide basin detail as will most Mcf on we producers making the our position. in

Our is supported inventory of profile drilling growth deep by a locations.

up year-end of XXXX. XXXX, approved Tcf to X.XX we XX% reserves, As compared held

of year-over-year. XX business. represents years our perspective, From grow a two-rig at runway significant XXXX, pace, adjusted to our XX% increase our of XX% Our year. of over acreage potential reserves further developed. upside lends to our proved prior increased billion, believe XX% stacked Approximately $X.X and are up We to PV-XX we a have future a development EBITDA development to financial pay million a $XXX.X compared for the with

some amongst country, a per-unit of on we revenue to cost markets we expanding control, realize peers. strong strongest of our to results, across our Unlike WTI allows and the other the operators to goal producing to EBITDA margin access and Henry Given premium and basis a plays effective achieved well us both premium Hub. our XX%. gas This generate

by structure strength. further cost is improving financial competitive supported Our

offering million, revolving our redetermination, to our $XXX financial flexibility even assets. us During our base we borrowing semiannual facility greater credit develop as increased was

balance Our his proving this challenging as whilst be focal a we metrics commodity for a us be remarks. debt will navigate on to will to in touch point continue price sheet and environment. Gleeson

look to greater As capitalize well forward are team's talent generate to and XXXX, assets our positioned value. to on we even we

Our to our our areas across of targets, to and continues testing designs, portfolio. intensity new including performance, team the explore landing stage ways spacing additional high intensities completion slickwater all improve proppant of

we will a entire capital budget XX% a of program and we moving similar our for to base million, to properties. million decrease represents our second an of activity XXXX be Our XXXX. gas approximately capital quarter, both XXXX XX% budget $XXX last the one-rig across $XXX in and standpoint, to liquids developing is asset drilling year, From completion will investing and from range allocated be our

in are of presentation, our our XX% weighted spend gas our XX% weighted we projects. on and highlighted targeting As projects spend liquids corporate approximately of on approximately

Our sets the provides of production cash the second us positive flow of year. reach budget XXXX this capital guidance the our and for for stage growth half XX% based midpoint a to in in on

on optimizations. we budget On Approximately will to inventory cycle additions for front, effort. The leasing midpoint capital this vigilant X% hedged as approximately protect XX% the have is support dictate attractive dictate. returns. hedges full of our guidance. our the about upon dedicated basis leasing our multiyear XXXX full be are at our prices of our to cost of for -- remainder continue adding commodity currently our low and We development and plan To spend economics year facilities to based price XXXX returns other capital plan, of as we swaps layering production

Ford. continue opportunities footprint the through In mix within size, Eagle geographic and acquisition addition evaluate the to to we various of commodity growing bit, drill

asset opportunity year peer cannot prepared us and US our across inventory, are initiatives, In in to be demonstrating cost when the predict depth appropriate the us of entire acquisition, another our to pricing of the allowing arises. from receive a we transact XXXX our to market timing for While drilled the proved we call more and expanded reach showcasing closing, and next we positive SilverBow, last the favorable towards the stage portfolio to has the premier exceptional move our reach commodity base hand margin has the I growth that, mix have balanced And Steve. with The clear over leading assets. for flow. cash to potential set of to borrowing path a us a for will our we provided months progress over made the six EBITDA

Steve Adam

Thank you, Sean.

in Production by our onto operational of driven Mcfe the across weighted in portfolio. fourth activity was results. Moving substantial our per day XXX a increase back-end quarter

net net during of the wells. the the year. of half the the net XX full-year, the company wells second sales versus six drilled first wells to half and For in wells XX net brought XX completed We year

country. resource had foot the day wells successful company IPs XX-day lateral. all acre were brought exceeded of per fourth three quarter, had Southern been Condensate with complete XXX XX-day higher have SilverBow X,XXX out best the program the per turned to wells team position These MMcfe lateral X,XXX XXXX. the being to of and plan of we During potential wells by area, reservoirs than La turning day potential In per well Boe drilled we and net demonstrate feet. validate our XX,XXX record of IPs the each lateral operations in our area, better greater day. geological three these with company day we over a delineation area one lateral portfolio, All studies sales, in The is XX,XXX two the the our McMullen our XX,XXX sales fourth XX petrophysical as capital. we return additional first across of X,XXX three three where of well confirm results more XXX and quarter foot Ford performed online gas gas had results per them XXX Boe half In strong better over the these the of foot per Salle an in well's area, of per gross wells feet, forward -- Each the our wells this to area, per of one in one one-well our in wells Boe to Based -- Eagle XX-day results of deploying continued has included on X.X lateral. IPs of Oil lengths wells. looking the

well results updated type have XXXX, we curves. portfolio strong our SilverBow's the Given in across

see in XXXX the Operationally, these a yesterday. we've of company. summary was can published presentation the a transformative You year for

from year of with slickwater exclusively frac intensity side, high medium selectively designs. using gel-based completed the wells. gross half XX portfolio. On frac we've of XX across designs In the out moved the wells alone, we designs intensity The completion slickwater total second the

pounds gas the intensity half average of a fairway, the tested the the Our Southern second up was to intensities per increase X,XXX Eagle foot. year. In the pounds year for proppant half Ford first in foot, proppant of XX% we per X,XXX

a On all an efficiency speed corresponding costs. decrease the in and in saw and side, drilling across we increase areas

La area, we in with some than consistently drilled seven Our in wells days. Condensate less drilled Salle under have area, La Condensate our wells XX Salle being days

competitive foot the our efficiently on and structure. area As Ford, anywhere a than within ability mentioned cost team execute before, talent were feet. These laterals the driving Eagle results in showcase Oil within XX,XXX that the executed longer SilverBow McMullen while operational the to

LOE quarter. chemical our optimizing we fourth activity focus costs, X% from renewing achieved renegotiating third decrease $X.XX quarter, field costs. our in this a costs, of to Speaking through Mcfe per maintenance reduced and the We on labor the

initiative LOE field and leading an an our performance approach direct to result peer the scheduling to and reduction the management forward bring throughout cash and active of the teams. cycle in from order minimize operations flow. this cost times engineering and production Our We take year is operational

the quarter XXXX the in we more net quarter Specific Due coming will will this XXXX. on similar well four we sets of fourth plan accelerate two and approach, to approximately we able of of second online XX drill into first wells set wells. part large quarter these XXXX. to of wells this coming of another the size of As in budget, XXXX the turn to were our year, either to online to XX net have of wells side on quarter we first

and McMullen production volatility also we We our Majority La flow driven second from XXXX. Oil high which and backdrop and The of reach the quarter. our of in second of properties more reduced two feel market. in will of equally Drilling rig the the positive given on cash including in to $XXX Condensate invest activity our of will the commodities rigs areas continue is development million properties. by a focused spend current between to moving is Salle million beneficial pace half down is $XXX toward company's capital one and of shift these goal mix, trend return weighted the

As carry costs to LOE, associated expensive as we oil forward liquids leading we increase peer lifting our production, more plan to wells. with move we inherently

to further Southern Eagle for understanding to needed increasing as We prepare will invest our of in also fairway and plan the to development Ford gas the years. coming

a As this in appraisal, Ford I'll several this With five Eagle wells continued up operational recap, will important will year team turn for was and success delineation that for SilverBow it us To over XXXX. we and achieved and milestones XXXX part great the to executional of drill set that, Southern gas year. Gleeson.

Gleeson Van Riet

Steve. My revenue. hedging this XX% costs, operating capital XX% our morning, financial quarter of as fourth Fourth highlight Thanks results, and I'll representing quarter was production with natural structure. our program $XX.X comments gas million and revenue as of well

quarter, XXX% our for NYMEX Henry XX% NGLs. WTI, Hub XXX% NYMEX of and WTI of the NYMEX pricing During was realized of

our of be hedged XXXX. active guidance, is continue with our Based We the midpoint hedging full estimated XX% year for to program. on total our production

with Our approximately weighted of average a XX% hedged gas per price MMBtu. production $X.XX is

is Our barrel. a weighted XX% production oil average approximately barrel approximately of per our oil weighted with hedged of $XX.XX price price of a average per and XX% NGL with hedged production is $XX.XX

In day our per addition, XXX differential we and we've on weighted with to differentials. also swaps gas But have basis gas average used a exposure to of basis $X.XX. oil hedges XXXX, manage Mcfe

a XXXX, day XXX have we weighted $X.XX. of differential per For basis average negative Mcfe gas hedges with of

believe in this of the for by were $X.XX initiatives. down low quarter, million for of Mcfe, of bonus while to to was the guidance T&P to stands below fourth due to of LOE, quarter achieved primarily total per $X.X quarter taxes $X.X the the for our our $X.X compared XX% costs. oil third continued our we ongoing annual and payments. efforts gas G&A processing fourth were tax Mcfe, X.X% of guidance compared $X.XX we to reduce G&A range. per coming costs of Mcfe, down $X.XX our production million together, million $X lease in Turning favorably of due XXXX the compared expenses Transportation operating amongst million costs, to first and Adding to Cash peers. and administrative which year, end production the quarter revenue, We're production of the to driven of and cost per guiding out gas producing reduction X% cash quarter timing expenses

XXXX, million. for to For cash we are G&A full-year $XX guiding $XX million of

credit cost initiatives prior the to slight compared our per of $X.XX below mentioned, year to our total, $X.X due compared EBITDA facility. prior was target. cash Sean million the in Mcfe operating low and our quarter. As including in $X.XX ended to $X.XX the the level considerably XX% third In resulted expense quarter, for quarter adjusted quarter, We a the Cash quarter. million, increased up sold interest the increase continued $XX.X on expenses a to G&A strong production borrowings in compared at

wells spent million $XX we in expenditures, to approximately net sales capital to to the XX quarter. bring Turning

capital million to in XX% provides capital. XX towards net to be XXXX. Our XX to XX Approximately budget million for XXXX our wells $XXX drilled, $XXX and net completion of is to budget allocated drilling compared of range wells

Looking per MMcfe XXX first day. of quarter, XXX we're guiding the out for to into production

year MMcfe XXX XXXX, provides budget day. per production for average full For to XXX of capital the

guidance. corporate includes first Our XXXX quarter updated presentation full-year and

refer please for So latest to expectations. it our

Turning under liquidity of at the facility outstanding million. we balance our credit to $XXX our sheet, revolving and end position quarter $XXX million approximately was our had

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

Sean Woolverton

Thanks Gleeson.

to to be working more a drilled our exceptional wells. SilverBow. our XXXX We So more portfolio optimize originally to recently and of shifted active planned more than drilling areas program, liquids-rich We another pursued for designs. higher to in activity proved wells year frac summarize, and all continued completed more our interest

while year, the unit XX%, grew increased per we a reserves adjusted went saw EBITDA our For XX%, expenses declined XX%, production on XX%. operating up basis

think flow of about a growth cash production gas meaningful focused are we positive, and still we As producing from becoming liquids annual XXXX, balance while opportunities. on

are opportunity set. effective high-grade and rate substantial while working have to goal Our remains, a drilling control of deliver with attractive of of a superior returns, that results well cost developed number inventory we we continuously locations this

to with margins. point, value attractive and Our a back operational efficiency with and our our and clean wells ample rate turn operator for with of will positioned returns liquidity capital discipline the well drill portion translate the our balance sheet this ventured call. Q&A company the into Along at shareholders. the greater I maximize for and operating team, And we're it of to

Operator

Rice. of [Operator question we line Ron Instructions] And a Mills Johnson from from have the

Ron Mills

bit or the and you First develop growth cash flow a the question standpoint? trade-off free little would even a be year program, talk what free the about leverage this budget I maybe XXXX had year-end the cash profile approached on you year the from between it plus move the and way and a ahead of to by thought, flow way

Sean Woolverton

sheet. was This as and really to maintaining those growth in question. is Sean, your question. your flexibility position three Yes, in flow key our driven by balance you cash can drivers I'll get well take outline We the free a considered - as production it

been program the the to light XX%, so, on two-rigs, looking oil that wanted so a think around us that to for amongst flexibility today year-over-year be we leaving year-over-year, be clear our front be sheet, portfolio we going in expand versus to the doing the just close important both position cash and and a we sheet negative as which probably be peers. would in to our demonstrate we XX%, thought liquids on is buy hard. good we prices and to it's portfolio, aggressive grow program our more position our that a So program is Eagle of of a a commodity position time expand the positive of look we assets about our but looked a one-rig that to get still in the both really acquisition lot it in we our proactive the flow decision two and flow push was and have north growth have we program, to by stated liquids growth like in felt have underway right assets, our ability balance With one, cash strong to wasn't to reasons, side And to leasing XX% in to production disciplined our really Ford. at potential would while think we seen it to dynamic gas one-rig a to two-rig of balance now

as we maintain or the the to oil base. wanted of are back expand both justified flexibility around be if activity and dictated well the As gas returns activity focused to we prices ramp product will to to up side on our either

the are our and drove decision those that drivers So, budget. for shaped really three our XXXX key

Ron Mills

and even a year grow the fair you XXXX XXXX, then then kind production you program XXXX, look it? we program, then if assume flat moving as stayed exiting therefore to that that as think fourth into to a level, exit to of allow to think at in of keep then that it way at at about cash XXXX? -- the a beyond flow When your you one-rig one-rig kind fair end quarter does rate about free Is XXXX probably is

Sean Woolverton

it Yes, is.

strategy our growth has long of been a how return. strategy know, You and

able be demonstrate still camp strong to a we returns. to as So small but want growth

want but still program we it demonstrate provided the we that this level we not to justify probably be if see if then moderate as are it give I price returns level. would we at that activity year flexible will is so justified. a And we growth XXXX, that a indication into like guidance to can haven't that more albeit flex that that the at that up back commodity mentioned look going around And to ramp XX% one-rig growth

Ron Mills

you're that I is you second talk bigger on and of mentioned then side as you And seems kind -- clear leasing bolt-ons to stool. state the the it market? and the that liquids have focus direction at and both in year? legs price that number expand pursuing go, I before to wanted a time, opportunity Can to move like A&D And as you about transactions the was like represents once of last acquisitions Or a do through again of think kind set for fall? you remember looking this What transacting of stabilize of don't but bit it prices more a little the dislocation? we deals itself lot

Sean Woolverton

upon a think it unique what we in somewhat presents to Eagle As opportunity the the liquids us, basins a opportunity one of is the either in drill commodity prices, and lot investment by relative about window the commodity another. or other of country gas the in or to fairly dominated are that ability window of depending have the the which we front Ford that unique provides

up low basin think the for sets We us the for cost acquisitions. demonstrating well also that in operator

a investment think focused liquids. decisions it set, on are relative So the solely focused are other on we we that basins peers definitely and competitive set to other will opportunity up

cool, transact would transactions, closed that to drop probably of the turning right were there deals, really never you're Now fourth dynamic prices we is the transactions we out any quarter really tell deals state active either. the market, were on leading unable that very you into current get the and swing were what's in didn't oil the to

paying stabilized is, returns think upfront have companies we the and we base So is think are opportunities it as reason at inventory. and you be acquisition we asset not acquire cycle why there think -- up, their favorable will astronomical forward, that going be costs, other our really an look we're they'll a to to will know, acquire cost really Eagle around focused full like really that Ford another market we to we the assets

it unlike the think pretty Ford, in basins prices cycle we're high where think have will going So We pull full get strong returns. and cycle other to we Eagle returns.

Operator

Instructions] with the line comes [Operator Jeff Grampp Capital. Your Northland next of from question

Jeff Grampp

on -- differences bit was Can that to that and maybe inventory curves support some inventory be assumptions I I looking an spacing given say generically at you that's a about at bit type get if out. you're track or least, on that spacing you you is hoping more updated operating any it little or maybe are -- versus and guess, little the a -- some parent had that might laid talk guys background less you more within well, any approaching difference guys if a similarly, lease area? undeveloped a

Steve Adam

this Yes, question. Thank the Steve. Jeff, is for you

as we've do generations, prior opportunities so, the either there life again yes, different properly even this the been from in than Our and spaced further we able area, well liquids we other and Also now spacing where to And our the from developed we're and credence we PUDs see right Webb ample but Eagle been the at Ford -- In is largely we're the side lifestyle we've year-over-year. then pretty Ford. the spacing gas. develop as know, patterns and around, gas, apparent we're to the in have as opportunities our continuing delineation side much in successfully infill have unchanged so gas the and older liquids long are as we there still the over right McMullen deep Eagle in where time County added spacing. area have you now the on in well give there where a to the in from part we've there, Southern we gas, Upper we both of legs side,

Jeff Grampp

projects projects these, might of garner guys across Austin maybe XXXX doing timeframe, if and about the that you of 'XX? of some the appraisal interest thinking any or base capital any beyond but type refracs, in asset And in Chalk, think of curious, like those appraisal are types 'XX some in you more guess, I EOR, and more

Steve Adam

projects not the little of on the color like we have Jeff, in incredible we're let a identified do but obviously more in and dealing that and thickness with Probably me gas, give -- bit 'XX, deep kind it. there. And

very from have coming -- the then we're that being over oil develop the up. side, the in liquids how prudent So do other opportunities benches And we or there we base on on side just other than but early in now, of the what great but in it's XXXX. from calling success fracs and right insight -- that the Eagle a Ford, we're generations in-fill XXXX, were had we've

So it's leaving us accomplished before. had been headway both never as area some in as the in-fill well development potential that stacked/staggered

So the have we're side very looking what continuing and forward we to in density. liquids that

Jeff Grampp

maybe last splits full the one on the of a and given and do just you a And versus year? me dynamics for just second sense have CapEx how rig for maybe guess dropping over Gleeson, program trying half, half one-rig of the sense what to I get a budget, guys kind costs first maybe a you that of of

Gleeson Van Riet

of kind to in double but kind QX. wells fleet going to X all X and half the to sales be as quarter bring of in first good going question. because probably in probably the of more half lumpy, little It's versus year, the a year back bit went scheduling within way just that our first we're even Steve number or fracs and of triple our the year Yes, of that QX - of it's mentioned that XX-XX the net second half to

that the first weighted So XX-XX overall to I first-half QX. then the half more and in of think,

much the that in wells we once of lumpiness in half forward. the stable completing gets kind get again second I one-rig more rig and think second the of program going

I Does lumpiness one-rig So run and much think long answer on QX thereafter your question? that won't the you program. see QX as

Operator

Neal question next Your Instructions] of SunTrust. Dingmann the with line [Operator from comes

Neal Dingmann

first know anything for mentioned just Gleeson, Sean could plan, pick one-rig one just question, those up just just that later, really around go I the then if -- that plan, guess, in there into the you could flexibility I your My laid a it out I that XQ change or pricing basically you've you, mean that? thoughts is is and plans, alter what about potentially or

Sean Woolverton

the on As the returns, drivers we the about driver. is far biggest pricing by think our

up take what's or we vice strong would is, our price alter rig the into can nice gas portfolio in that So advantage probably gas versa. move adding of

if comfortable above side, and to about we sustain $XX opportunities it our give balance oil feel to second rig probably in oil generate the and the a us On sheet. saw drop still returns would

it. So price drives really

However, we really on five down drill in another to on those of with tested to down we're a driving costs, lower. wells focused designs and to primary stimulation a we've very that year. area deep think wells really going there focus costs range wide our are that We gas drive want optimize this

we get combined rig. asset our could part and price second base some of of CapEx advantage that upwards in that So maybe cost with combination the to lower movement take to to per well move up

-- second-rig. of really to So and to our decision side, CapEx drivers move those would price be our the

Neal Dingmann

just about that seem certainly tighter that out some you've you last all look drilling know guys maybe of or me you about XX, Is sort -- name when how still portfolio to now total, got expand potential comfortable undrilled to pretty XXX think area looking existing way think to you you the set? conservative you've any these number just at you're one but slide not a identified that your I with got the - in Then on I just past, with areas versus that? you've this still are specifically, just the portfolio, follow-up, locations. the think I but of you talked others there bit gross too than not in there, Sean, at are

Sean Woolverton

in the thickest around runway basin. drilling one the area, have within locations, Ford adding that bench that Ford gas primarily has area Eagle in really our in asset existing Eagle and just think we No, I of base terms the more focused on Ford Southern do paid Lower been our of Eagle some in we've stacked opportunities

testing So I Ford, and as be another think point, Eagle in think on able at benches want to up asset about then up, over time, the some our one well. maybe base Austin Chalk prove we we'll three the probably to come to

in those aren't really our So captured inventory count. numbers

XXX,XXX think that tremendous the a runway position we long-term. So of we resource that in acre plenty do have give place us should of with amount

Operator

have the from We line Mills a Rice. Instructions] [Operator question from of Ron Johnson

Ron Mills

to think wells results of above history changes Just individual the coming when type the 'XX, you where improvement on, you slickwater over you area? all look it'd you virtually they're about there between whether or one do move as if your equally think slides, be of coming be in or that's weight show liquids proppant with the dramatic as versus our you course and on type production weighted had Do to curves, you the especially those in McMullen towards the biggest concepts the the them fluid, curve. saw follow-up can can of -- the a versus think well what in well? applied kind and area and Steve, now you higher the Condensate

Steve Adam

of It's breaking it down look across kind as you our portfolio.

this of it same even though optimization we're similar, those on a increased gas fracs. frac more little combination of put of the oil of where to the hybrid slickwater fluid of we where we've it's we're spacing predominantly year-over-year size both just seen possible as and let we're we type sand frac plays. seeing appreciations opportunities, We've and selective where in but it slickwater from bit clearly generations. in that higher the it's were IP life we combination EOR we're push and kind more have a On frac-design the the way, a from In opportunity some there side, late-inning that's of a -- per the Over get side, me employ in both those certainly still it's far very job on a of being increased to kind not system and homing and sand prior job, this that design hybrid strong we of in relates and employ we limit fluid. volume think density, into a early we

of matters. sync very as your to but go being the across answer we're fluid portfolio it we So of size and it our with type matters selective

very jobs what increased a slickwater side, been bigger favorable with in job have reiterate, is selective to an and it's again been as the once using but size, the gas on So and that more hybrid. the to liquid

Ron Mills

there, And drill from have you're acreage Sean, drive try decent to or there. to on McMullen, footprint Thanks. production you you to the -- I history that two only is ramp area? out but a to in wells wells activity have. would it to that's bring What potentially build all in seem them two of a of it inventory wanting then, matter continued still going standpoint, additional a And is

Sean Woolverton

the on touch considering we did area. have that thoughts in McMullen in oil or lot You of

it the of company in at were felt active it's hadn't of looked been wells it's out drilled First, a like under that were an team zone we XXXX, our and study and that of area in historical for number years, the stimulated. many

right now in So over there those in fourth looking on did drill we see performing we're test them hold how wells brought -- well. quarter time, kind they're wells some lot and the quite in to of

the there we've that we from brought history some think theory historical up there. we our leasing same there bypassed the year, in longer will we expand inefficient adding done the that to program some year in time, assets get drilling transactions late probably part then well online oil we this at the opportunities of by some acreage finding So have we've But proven look or well. wells our as and we're the area, small expand bolt-on to are last been early

inventory history of the future. production dictate the with of acquisitions in longer there our in there activity the increase probably will and So expansion leasing an combination through

Operator

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

Sean Woolverton

you. Thank Launi. Okay,

in call us first I the at to forward Thank can the with reporting and in and everyone's you. we company participate this our in quarter and the look point, May. interest here think appreciate conclude call we early results

Gleeson Van Riet

Thanks.

Operator

This does call. conclude today's conference

You may now disconnect.

SilverBow Resources (SBOW) 28 Feb 192018 Q4 Earnings call transcript