SBOW - Earnings call transcript Q4 2019

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Operator

Ladies and gentlemen, thank you for standing by, and welcome to the SilverBow Resources Fourth Quarter and Full Year 2019 Earnings Conference Call. At this time, all participants' are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session. [Operator Instructions] Please be advised that today's conference is being recorded.

I would now like to hand the conference over to your speaker today, Jeff Magids, Senior Manager of Finance and Investor Relations for SilverBow Resources. ahead. go Please

Jeff Magids

And us Sydney. year everyone. you Thank conference Thank SilverBow good Resources joining for full fourth for call. you, morning, quarter XXXX and

Steve are Joining during CFO. our this to listeners website we corporate encourage Woolverton, call and on new afternoon, COO; to today call. a latest to me our Chris We the Yesterday materials. CEO; download it presentation Adam, posted Abundis, will our and refer Sean the our occasionally

references press to reconciled make non-GAAP Please financial GAAP are note may that which certain to measure measures, we in release. closest their the earnings

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

over And Sean. with to the I’ll turn that, call

Sean Woolverton

our XXXX ago, of Eagle On am and significant A you, to strides balanced strategy. of Ford how thank forward brief a have XXXX this pleased Thank plan we I our And a full business today's XXXX gas quarter SilverBow fourth made and call, Jeff. oil expected morning. showcase strategy. everyone, for call liquid addition to company. we more Strategy spoke pivot our will to to this implementing joining I the to providing and in year shift report you, review year exceptional in that results, and overview we our of efforts

our and down experience diversify value on and Eagle is asset building basin focused a commitment to leveraging balanced Our Ford mix costs. driving to long-term well base our product drive shareholder to in

the pivot XXXX. began implementing on end to we which liquid strategy our of executing We're at

commodity itself production, improving to We are driving program fluctuations differentiates capital down return towards to efficiencies operational costs. projects. and its highest the growing in reallocate ability adapt response SilverBow development price to Today our its by and rapidly oil

advantaged competitively Coast export premium assets given Gulf access Mexican to Ford pricing Eagle are and our Additionally, markets. our

transaction fourth quarter XXX million fourth X% comprised was Starting rate of as total with of quarter referred in primarily gas Oil activity natural quarter doubled highlighting our sales. Fourth we our of acreage increase us of total to per of adjacent provided the XXXX. to XX% averaged pad a the unique agility than oil which Mesa our in approximately an even by was sales fourth acquire the opportunity County, property. ago. the was six Net for our Falcon feet ability equivalent our organization. of to directed day cubic the year well which quarter net barrels over driven and with of La production This six production more project. months deliver What more averaged net oil production production a Webb XXXX, X,XXX XX% approximately per to impressive NGL company's and day, first

cubic million. --well This peak with XXX of project $X.X of costs day gross development per million feet development achieved per production cost

were able we reflected to results oil grew Additionally, XX% full increased opportunistically while XX% We net in our net production than to an liquids Full successful well SilverBow our and more by up December, and production, XXXX extra incremental XX% production in to strategy of capital the XXXX. key objectives. our to XXXX. year total within execution than in turns of year improved net remaining in and compared days resulted available drill full calendar production cycle range. more year-over-year year us complete from liquids doubled still

WTI XXX% oil and XX% Henry from gas prices of revenues of both XX% comprised pricing. in Liquids total and Realized were up hub sales, XXXX.

EBITDA down liquids XXXX. increased the EBITDA XX% of from operating focus side, and increase Mcfe total on and adjusted of were $X.XX cash growth. impact margin cost in per $XXX expenses the XX%, XX% from net increased XX%, total production up in production million our Adjusted reflecting year the for year-over-year XXXX On $X.XX to

to increased X% increased XX% our and reserves million proved oil barrels. XX.X reserves X.X.Tcfe to approved total Our

our productions, reserve and grew at same while year-over-year. by our EBITDA the CapEx reducing successively We base adjusted XX% time

over is half SilverBow cash the Importantly, free of flow neutral XXXX. second

Given we X.XXx reduced from X.XXx year-over-year. these accomplishments, our to ratio leverage

million million decreased we with debt million net the year-end liquidity. year ended of Our third the of XXXX, of from $XXX by and $X.X $XXX quarter

and matured, returns operators focus has a investors oil on and As shifted mindset the the to opposed growth. has gas shale industry as for to

capital delivered on employed some highest in of For the consistently several industry. SilverBow the returns years, has

in we generated XX%. for ROCE XX% trailing our and of For a an three XXXX, year impressive row is the second ROCE

similar but SilverBow returns size with Having of operators only a competes our hand-in-hand with basins. all downside us across focused goes with mindset peers protecting to exposure. not

greater stability our We through liquids growth. exposure oil are increasing focused our on cash flow and production

low price $XX XX% production environments. a more prices. about provided Additionally, is helps into of to realized his our of XXXX, go our impact hedged. year maintaining hedge guidance, the a the million detail production total strong In of XXXX us section. position book of lower Based periods upon in hedges hedge will midpoint mitigate offset full Chris

to Moving outlook. XXXX our

year-over-year range decrease million XXXX. a XX% a We million, of the maintaining full our XX% and year are to year, $XXX full at midpoint from guidance decrease CapEx $XXX

of oil barrels per XXX of to net oil production we're the MMcfe today, day to cash continue balanced double drilling targeting base. to mix. guidance expected production is notably primary XXXX more liquid liquids XXX% significant on free stent year net XXXX milestones These an commodity and production reach more of flow. look focus XX% oil and year-over-year our SilverBow's Full its completion On to XX% X,XXX further for a to net and the of day. XXX the total and per expand to fact, to focus of of in demonstrating stands high-water is to in As company's of midpoint to average exit will aiming as or production growth production. it basis aiming barrels upon areas be X,XXX diversify would rich company is per our our XX,XXX we generating SilverBow exit-to-exit move we're daily with mark a day based

Our drilling is flexible. development program

preliminary liquids fact, of D&C budgets our initial CapEx XX% called now allocation gas. our In we production and allocating XX% an of net of for liquid. gas with growth oil are XXX% XXXX XX% of In prices, CapEx to light low

now retains capital net commodity as earlier, within prices outlook. SilverBow production I growth XX%. shift reallocate mentioned of are accordingly And targeting from schedule flexibility its to today's materially we oil should

for volatile in. company inherently on-hand the maintains we commodity live playbooks multiple navigating the Additionally, price environment

mix we will liquid an see production As per likely unit. our operating uptick in the our grows, component expenses of

full increase of the the all discipline in year, liquid per cash of $X use reduction despite to For prioritizes the free operating we integral is debt expenses our than Financial management our as production. cash Mcfe in flow. strategy; proactive initial continue sheet target to balance less

XXXX I've detailed we While year. not are simply our outlook, focused one on

measures We SilverBow are taking to necessary term. the best long position for the

organizational empowering unlock a value our to team basis. is culture on Our daily

We in have our exceeding a corporate or will demonstrated delivering ahead. track years and record of strategy continue objectives our the meeting on stated

hand With the call Steve. to that over will I

Steve Adam

Sean. you, Thank

past technical performance. in mud higher systems and and of process. operations, These removed cycle improved our to operational all Specific day XX% times vendors of of downhole rates, efficiency. $XXX, All resulted XXXX more to operational reviews drilling XX% and on optimize aspects our lower detailed We marked company XXX lateral to assembly. with approximately said months. to per execution costs. costs results. lowering to From costs reduced XXXX. well penetration we on by a implemented our greatly this six footage The per the the of drilled year over compared parallel a while Moving number average as drilling

of improved or than number doubled well day per compared costs more has site by side, completion on management $X.X the XXXX, average. of nearly to cost savings XX% completion well the stages per while reducing as million On

reduction days site stages shorter driving six well time are cycle times first are representing efficiencies time and of accelerating to cycle management increase sales. Our pump average, stage in rig pump to times increase which release the these between in procedures On been to day. able per first we've thereby driving

from SilverBow's time XX reduced continued to from SilverBow's along On cost in These teams a and gains efficiency for of logistical basis, spud significantly with and used prices and XXXX working success in best direct to the negotiate XXXX. reductions in result supply considerations materials days operational to closely the are an in average XX operations. overall days first with services vendors sales our

of brought net result six of the inclusive able online were additional cycle wells as fourth a to During well the times. add of we the faster XXXX, company quarter

liquids two online. activity rich in McMullen brought The first net acreage LaSalle as two-thirds and on well For the wells, Dimmit completed condensate our was the LaSalle XX primarily of on namely focused year, the our net drilled company comprised oil areas net oil XX McMullan and XX drilling wells year. for as company's wells approximately condensate completed and SilverBow's of drilled the areas new wells our County. net wells and the full completion Together block

online development. area, company's The in with second page much identified area, In of are online XX SilverBow our brought well focus of higher perform. of brought during seven we in perform under to oil performance. history laterals the These XXXX area, wells are performing quarter XX in January show These the expectations. XX,XXX XX on two on wells and drilling company line emphasizing the Utilizing exploited wells are net brought online drilled executional Two wells additional XXXX. our and to in further historical the teams were brought in the experience company's in continued the of LaSalle longest in part liquids company were to recovery McMullen laterals oil an pivot per condensate online that XXXX. presentation. In foot the days, than in the which achieving wells were late wells the and area continuing as position the

XX,XXX delineation to line Geoscience on net performed optimal targeting development net with expectations. In The work Dimmit favorable entry acres planning. which SilverBow early is XXXX. in added large-scale online The County, during identify focused and brought have two costs wells team company and at

the company development oil further liquids active in in the is test for with to under acreage the LaSalle With County we some the McMullan rich exploited path predominantly position as additional results Dimmit assess drilling our this in developing from best towards continued areas areas area. our planned of the full XXXX potential condensate. unlocking identifying to plans Also expects strong portfolio, in delineation remain

with the were Webb In company early net wells XXXX; closed activity in each of in five XXof area, brought our net falcon was is allowed opportunistically six on directly detailed This lateral productive online No until a which pad to expected the wells transaction brought the presentation. to the highly further of year. adjacent a XX company corporate page the extending well County, online development feet. wells XX,XXX farming our

close As months, XXX December. direct day processes, result was production in to project six of this a just company turn planning the in the and Mesa La wall MMcf the six pad new gross to sales per peak achieving of able

achieved of rates gas Southern the average to our stages once per $X prior wells area, spreads negative operational changes year. to the average reserves bring and complete efficiency Included SilverBow utilized continued per a at increasing the to Mesa wells proved completed proved as per XX% the team our the peak two with to X% from XXX at of result gas of frac foot. rule. Ford three completion two £X,XXX drive pad per in The replaced increased crews reserves Eagle the XX for decrease again La from most online. by five-year our revisions was the locations efficiently to liquids oil to on locations highlighted project annual able XX we Bcfe and our base stages rich a Year-over-year reserve cost due online. $XX well excellence increase These million, a the by XX%. In SEC brought with major day reduce million being were day as

in changes Bcfe of due included and forecast XX revisions Additionally, pricing. to SEC were negative revisions

strategy cycle as and development reserve proved a times a offset oil improved well as reserves has SilverBow Year-over-year and increase reduced provide to resilient costs. in more Our improved increase reserves, compared diversified performance, gas pivot portfolio with this a to more such base. liquid we impact the decreased X% XX%

operationally drill XX For to drilling XX Building pumps and further and full we expect in approximately complete made the XXXX, year wells. we along net times expect net we and on with XXXX, costs wells stages efficiencies day. per gains in profit

the adjust to our an operations ability This efficiency year. of development throughout gives our us schedule optionality the and cadence in

we capital to work our activity optimize As to the timing in of relation requirements.

With Chris. it that turn I'll to over

Christopher Abundis

sales comments cost, program fourth highlight and well my of of I our morning, and Fourth production $XX operating gas capital In quarter our million this as financial quarter structure. will XX% as representing liquids XX% oil were Steve. results, Thanks hedging and with sales.

our quarter, oil realized price WTI. was the XX% During of NYMEX

NYMEX gas of realized price was NGL WTI. price XX% Henry Hub our was Our XX% and NYMEX realized

Our gain contracts hedged settled $X quarter cash on million. the for was

XX% full of XXXX XXth, guidance, hedge year of guidance. As total the production for has SilverBow volumes midpoint the of of February using production estimated

Our expected hedged $XX.XX barrel. of oil weighted price is production a with XX% average per

spikes gas oil as weighted per price positions XXth of given February. February thus swaps MMBtu. current average executed hedge expected we XX% reflect $X.XX Our production Again, a in far opportunistic of with price position is hedged have XXXX, in additional as our these

manage our to differentials. continue we to exposure to addition, swaps use basis In

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

and believe quarter per production the Mcfe achieve X% $X.XX for and range. peers. were a our expenses of expenses. or while Transportation $X.XX $X.XX Adding unit LOE, the and LOE higher Mcfe X.X% per quarter, from of result per last costs midpoint total as taxes within production which increased we a liquids year per end cost Mcfe processing below $X.XX $X.XX production TMP our together, amongst taxes in guidance LOE portfolio. out fourth and were of cost has fourth from sales quarter basis, Mcfe for of down our Mcfe to of our a low ago per stands we below per production guidance. the was the Turning On slightly

Cash the G&A compared of million. $X.X favorably midpoint quarter million for the $X.X fourth to guidance of of

right we up cash this compared are the cash million slightly relation midpoint totaled $X.XX below is Even $XX.X cash year. XXXX, last as G&A our year set set in to Mcfe costs full be one-time including again operating to higher absorb G&A peer the with in leading the of cash cash Mcfe well G&A G&A XXXX to per one-time per measures. we for items, sizing For recent unit which expenses year. per at Total $X.XX the guiding of we these at target our beginning quarter, is

strong to EBITDA to quarter bringing expenditures end total, X% XXXX in In a year production adjusted and ago. Capital $XX year efficient operations CapEx $XX resulted $XXX up totaled to year compared of the the million in million. million, full

our projects. XXXX our As capital $XXX on Sean spend With is to to is D&C $XXX liquids million. million allocated budget said, XX% capital. D&C XXX% focused of

for XXX production For we first for and full year we guiding average guiding XXX quarter per production XXXX, XXX are MMcfe for of to day. day per of to are XXX average MMcfe

day. published quarter year oil, X,XXX X,XXX first we X,XXX full X,XXX of guidance And oil on guidance per per production to barrels day. Specifically of to

come from our basis XXXX. year production full XX% year will full from net a XX% On liquids, guidance implies of up

the NGL volumes XXXX guidance. to equivalent latest and presentation incremental assumed three our processing elected first reduces per ethane day impacts it expectations production, production relates volumes under months guidance. while Additionally, X arrangements adding website MMcfe revenues. for full of review rejection This you in have our to ethane by our during corporate pricing I on year cost our our and our have we approximately and encourage rejection of as

$XXX of credit our had $XXX we liquidity the our at revolving sheet, million was looking our at million. facility position the balance end Finally, outstanding And under quarter.

end $XX mark-to-market of hedge million. the was our As of of the value book February, approximately

balance near-term navigate to current is environment. strategic say under remains the has and sheet this flexible conditions market our of strong, All to optionality that

operations compliance we fund end fourth under facility. all had and credit the covenants borrowings and expect financial our with cash the full fully of capital in headroom. program generated the quarter, our were At our from XXXX We of significant with

I that Sean to with up prepared it And over remarks. our to turn will wrap

Sean Woolverton

while remainder two one to the drilling spring our as and on to To steady Chris. feel down we just another in in highest year pace in prioritize and more Thanks structure. dropping exceptional focus proved a return of of our running projects confident efficiencies furthering activity XXXX we value, the We summarize, rate year. generate entered SilverBow. and running for the to through ability year rates our Currently, to continue the before cost be

Currently, outperforming is growth natural as backdrop, return will returns production toward organization, efficiency not have am has oil our patient mindset. management always reductions based. a occasion. accomplishments extremely a and operational current focused the lot with I Given cost gains easy, centered of proactive the and SilverBow gas allocation, the M&A team to our proud opportunistic building efficient asked strategic is liquidity on capital long-term, this will remain and intrinsic and focus given. diversified of risen a team expectations operate opportunities. commodity around we internal not through of discipline are I our

extends the portfolio gas ahead, see no has As diversified itself a of to that look oil expanding commodity longer I basin. exposure and balance repositioned company, to transformation and I be SilverBow's well unique, has XXXX. The is early in its company gas a beyond that company single a but considered

opportunities continue partner costs. Eagle As the choice favorable ourselves our in the as expanding we of entry look Ford, to our balanced at and further inventory establish we successes large to for small in

our company flow for While results, our positioning the sustainable liquids growth are is shareholder returns. strategy are cash steps free taking and improving rapidly we the

continue our a leader profitability to drive peers. amongst greater be We to and strive

great allowing for further We're our our updates next us for for first free and and quarter to to balance the results. today's for look share continue on a manage We joining to providing group XXXX call. forward And sheet. are our and call. Thanks we us excited our store. well Just in positioned generate to oil flow, has year cash recap, was what XXXX

will I the that call. back for the turn QA portion the of our With to operator call

Operator

[Operator Instructions]

Our first SunTrust. comes proceed Neal with from Please your question. question Dingmann with

NealDingmann

versus we on My just team. you discipline you quarter and Sean slight X-rig XX% is XX free really statement. when What's for all this. run change I'm would go down rigs? -- what you'll looks sort I'm just and you maybe to -- mean activity. just decides that generated of rig, a today. that question their primary about a average my I'm with wondering like driver I with the oils of had if mean of about morning, consider? I to materially and this, other Good is potentially wondering plan. for wondering cash just average cause in stays just, flow a currently was no I'm saw would this what LLS consider morning. LLS What parcel about question and just change oil program sort in capital the I first They'd announce that I run wondering sort side fourth And curious obviously it XQ to Exxon

take just what to the you I plan year-to-date? change the that just so stock this obviously part but of I'm second to and you irrational far would sort judging it get Sean XX% way price your question wondering So think all of that going. that's guess that is about it's by down you market and for your is being long-winded I cause Do enough

SeanWoolverton

the generate for Neal, prices. returns always at Neal, XX% returns what to is Yes. are look can prevailing commodity focused we to we so us, definitely XX% we

decrease prices an that or to increase to prices. shift have as relative gas allows oil asset We capital base us

those this very we'll returns. pricing for that What really had generate we is ourselves we've So that focused levels have mentioned. locked-in return be I on favorable targets done our year

always our is thing capital other comfortable of are funded ensure management we to within look proactive that our balance the sheet levels program with. is course, at Of we'll that managing,

low-cost long-term this it's So but focused the the versus company really more and in in environment. we swings reacting short-term a difficult position volatility to And the in we're environment, market. thrive

of continue a money then seen to move will but think crisis of we in the as this was in commodity up sets development. view up Our will be generating prices saying, do to over returns share as environment probably kind in that and levels I take to to And in as invest significant if again. just I below $X really only speaks performance being I will companies to reduce necessary cost prices had what commodity exposes prices not what the the time same you, make you're structure prices up return announcement to us start that investors the pick low can market. drilling where can it move Exxon it increase the low Mcf usually we amount

NealDingmann

sense. Makes Yes.

Okay. little bit is my M&A. question a wondering bit you heard And this. on then And Great this. of details. about hit I'm second just a we've

than make if wondering just consider accretive accretive guys call Are even just it a combine in how sense step see. more to there you I'm wide potential that of week you bring find could leverage down y'all that it. too immediately is there want the could obviously and whatever a would add again that to be So wondering out just ever still something would into, see you I'm bid-ask deals a wondering more. you I'm I'll would those XXX

on I'm kind of curious still. the if to too gauge of market the far away that, So just we're just temperature

SeanWoolverton

Yes. No.

bid-ask some accretive; of the our mindset spread efficiency is to a being transactions volatility them. I operational in having positioned going deal continue difficult market to make that's ourselves be that accretive, that in through is to terms our think we've the With gains.

generate because of and that so complicated agreement by inefficient component Our an in other I'd structure capital. you to add is is Capitalist that's are and The to to they're this attractive of assets can that funding is assets transactions don't access findings challenging further get the only the where generate on returns returns others on lower control -- and assets cost take very can. where last positioned it bid-ask to that companies deals those scarce market. of in then more that

Operator

comes question Dun Please from with McIntosh. question. next your proceed Our

DunMcIntosh

Good morning, Sean.

wells. pleased with the inventory Wondered on the Dimmit be with becoming do a couple year XXXX? you around think year. bigger find to us falling Maybe bigger a what you're could about you a becomes program you a an talk and delineation that on if could idea those oil part LaSalle of there? I more then little liquids big kind And the the pretty bit in story McMullen in part if give and of picture should the this and this emphasis think hoping

SeanWoolverton

Yes.

we returns focus current liquids about LaSalle inventory and we XXX thinking inventory, several McMullen years thresholds think on our have price we're gas. current prices. that our As remains at market meets our and in of where though And $XX say the prices, when around mark I

focused also we beliefs liquids our stay to because expanding amount oil we that we'll want So be but position there Dimmick block tremendous place. of in The acquired in County of always inventory. a or

Our our further profile and really of capital is expected we the that expand we block first IPs, confirmed the as to down. block production moving our XXXX, the two delineation start our wells test in goal

million our drill to XXXX next to being $X block that if into or set full timeframe in more at LaSalle not really to the focused plan and below costs few stay years below $X.X beyond. development and mode on probably go McMullen over envision million we strategy oil even able Ultimately, and up the Dimmit is

DunMcIntosh

we Thanks. XX, big big or is going emphasis mentioned obviously, you be the point as slide Great. spring. focus On Okay. liquidity non-core then, asset sales. into a And of go a

ability down on give get more and maybe of front. things your little on Just color that liquidity the the to there wondering a some if kind in you give little a could to more us confidence you

SeanWoolverton

Yes.

currently position the market mainly primarily a in our look the assets Powder we base, expect quarter be have and of first asset we we As actually a smaller located transaction overrides, in in that from River some Eagle announce Basin, our outside through on those to Ford position we'll legacy call. and have that the position

Operator

with from Markets. question. your Capital comes Please with proceed question Jeff next Our Grampp Northland

JeffGrampp

that we to kind you bit get Good of kind as something a wondering, Sean, are was a you mark you little about for ramp the the for side average term that XXXX And maybe oil for through day I maybe us context that level if should of more trajectory sustainability guys guess year. that. of of play a how that example take morning, about the out number just expecting Is kind of on a we in medium, can high kind to think wondering you longer of you maybe guys? up of peak that could in from that maybe in basis guys. the to I how just think a XX,XXX from mentioned for you more or number, talk just about an could the longer-term

SeanWoolverton

Yes. Appreciate is that question on. we the something that very obviously focused are

the Let business you over completion drivers ourselves XX%. positioned how this two is see portions we on by position of our a through me our maybe to and walk Really operational behind both We've drilling it; in ramp. being efficiency gains. reduced times cycle

that that XXth. half of three came February April the bringing really we in call during on projects bringing a example, we first year from quarter our had forward. our we on to the To that provide So third an anticipated relative pad had budget outlined changed well

projects. portion the into capital ramp capital of then second XXX% being of acceleration of of is first liquids continued decision to is our being half the ramp of by year's driven The to good a half driven and the allocate So year oil by the our programs.

taking are projects. operations more and of increasing So we towards capital efficient oily advantage then

to instead allocate should to goal XXXX be XXXX, look so a We able in we in get It liquids point exited exit liquid continue be XX/XX X,XXX timeframe. we our so of to we gas the the we'll sometimes majority will at balance -XXXX this double is base that a X,XXX towards this at we'll barrels into will our at of XXXX plan or level oil. capital percentage. to the higher. XXXX essentially and at barrels Ultimately, to where year As XXXX, initial grow exit the

JeffGrampp

gas Got rig come balanced it. And things or you off level? declines marker kind result a XX,XXX Does a at that with bill to that oil volumes shift of kind can the maybe mix of kind front. stabilized one specifically on on as next of to of more program oil, continue some that day does of to that grow more a a

SeanWoolverton

component be and accelerated from driven predicated a down Yes. future, increase any put more have as if What a gas in as see is percentage to to gas gas of we'll capital a we declining. I's more both further more by we though year, prices out not years that the come stabilized so able our the we'll away to gas liquids base curve on decline work gas we ramp but drilling, drilling that will side. move to oil is it's two see gas, the and and declining is

both. So it's a combination of

JeffGrampp

Got it.

associated And Perfect. kind guys to just obviously you that on are or have kind kind find of are some implications of areas legacy of being kind guys parent/child of wanted just Can you you sense cognizant kind risking guys I to a like guys you you obviously some one any last wells of XXXX have model the of you in maybe development in the production give how with front. us parent of split for the program? of? Okay. me in child field as terms or guys be observing in maybe McMullen guess the the How then

SeanWoolverton

Yes.

for subsurface lot XXX haven't of offset about As are to in our that well well company honing operator's the have really we've detailed on to work come you lower inner but spacing at drilled in tighter spacing We really to come reservoir conclusion. done foot at much levels, spacing. analysis. a of We looked at lot and

at going into is part see we've limited be encountering One the gone most that we're interference, are XXX back that pretty you it's for foot and benefit may the in time So areas some but reserves. and accessing that XXXX new we frame. we believe to spacing developed back XXXX

So instances the well we there. an in offset some seeing in are seeing of and a actually re-stimulation volumes uptick

of End Q&A

Operator

further to this the over Woolverton session. our and any will now Thank you turn Sean Q&A call I concludes remarks. for

Sean Woolverton

forward look Appreciate really value back tremendous listening significant the XXXX feel about the catching call. with like strides Thanks. you. and are to making you delivering We everyone's Thank and the excited May. at on in we're up operational company, in

Operator

gentlemen, conference. Thank this for and today's you participating. concludes Ladies

disconnect. now may You

Jeff Magids	Senior Manager of Finance and Investor Relations
Sean Woolverton	Chief Executive Officer
Steve Adam	Executive Vice President and Chief Operating Officer
Christopher Abundis	Executive Vice President, Chief Financial Officer, General Counsel & Secretary
Neal Dingmann	SunTrust Robinson Humphrey, Inc.
Dun McIntosh	Johnson Rice & Company LLC
Jeff Grampp	Northland Capital Markets

SilverBow Resources (SBOW) 5 Mar 202019 Q4 Earnings call transcript