SBOW - Earnings call transcript Q2 2020

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Operator

Ladies and gentlemen, thank you for standing by, and welcome to the SilverBow Resources Second Quarter 2020 Earnings Conference Call. [Operator Instructions]. I would now like to hand the conference over to your speaker, Jeff Magids, Senior Manager, Finance and Investor Relations, SilverBow Resources, Inc. Sir, you may begin.

Jeff Magids

Thank you, Amanda, and good morning, everyone. for for much XXXX Second very Call. Conference you joining our us Quarter Thank the are our call CEO; on me With today our and Steve Sean COO; Chris Abundis, CFO. Adam, our Woolverton, a new refer occasionally during Yesterday afternoon, it we corporate to and to our call. presentation this will website posted We download materials. to encourage latest listeners the are earnings we closest GAAP their that to press note to make Please certain non-GAAP in the reconciled references may financial release. measures, which measure

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

Sean Woolverton

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

we like would during as other well. and their that to our everyone as dedication thank key our First, listening contractors is and and times. vendors for well employees I hope stakeholders these our resilience

We ensure capital financial its that spend delivered report decline of balance company and the the to March and pleased am and paramount a abrupt and continue allowed pandemic In Safety prices, optimize actions contractors. commodity the health strong measures timing is importance. strong global to results. expense operational SilverBow necessary we employees and The April and in wellbeing face its all an and savings. of took take to in sheet, realize I the to of fortify

facility quarter-over-quarter. cash revolving million generated quarter, and flow reduced borrowings we $XX credit the by during free million $XX Specifically, our of

program. in our we have visibility flow our ahead, and the development is in to have peers, the given relative positioned we Looking SilverBow favorably cash flexibility our compared

return reaffirm previously for the As development development. of rate of in XXXX, including noted stated that on we $XX What's additional million impressive program fourth gas cash with to million yesterday, forward our to our our the quarter, high flow in even plan more assets Webb is $XX focused in the we move County. release press goal free

point profile The low the second quarter our the marks for quarterly year. of production

quarter, quarter, In third commence our gas our will deferred online drilling bring year. fourth Webb the earlier DUCs the area. we complete this we County inventory in During will and dry of

Given projects, the the of late development of to benefit these in this the anticipate we and timing first majority XXXX. the quarter from production of start EBITDA

hedge for quarter However, quarter expect amortized gains, we first of fourth do EBITDA, return the our XXXX. levels inclusive to our to of

to which flow, and meaningful Looking EBITDA in similar At benefit are gas pricing, of current flow levels. grow spend the gains. to a strip single-digits in in biased production within and increase cash 'XX SilverBow maintain generate high into free poised inclusive amortized from cash current is plan from hedge prices, 'XX, level, we we believe higher

XX% guidance greater to assets, and production Based flow We hedge our of the our addition capacity NGLs from flow $XX XXXX cash from we gas this XX% our implies come million full a million. a to flow gas in portfolio share current our year exposure range a yield additional In in hitting in upon free $XX XXXX. price, the growth with trifecta, expect forecast year-over-year. in and than have we our standpoint. free free Furthermore, yield flat oil cash to cash

collars use in moved pre-COVID to comments the risk-mitigation by up compared Looking in further provide XX% our XXXX our Chris levels. execute of close prices at strategy. about detail curve has gas to today, his to will

and activity drilling and portfolio same. countercyclical optionality accretive asset We thus transactions. us As oil we inversely to bolt-on corporate both formalize XXXX to is Steve ahead. Having opportunity our provides price with over strength balance look an us. the strategy turn and operational a the the correlated, update. and to the continue provide to optimistic see well-balanced manage I our and and over call pursue Furthermore, go Steve, will financial provide level we're months, our gas to sheet our differentiator please coming budget gas remains key underlying a fundamentals prices to us flexibility. for about With that,

Steven Adam

Thank Sean. you,

point Over a Slide the and barrels production. in above volumes XXX of per on sales net timing and By day we the of second remaining gas quarter. curtailed to any guidance we of standpoint, seeing to XX oil for corporate MMcf day barrels quarter, return average May the production by net From not net oil per X,XXX well day of was are XX nearly MMcf degradation per low partnerships. related to net In technical net schedule, production wells NGL gas anticipate in and teams ranges large, on drove approximately curtailments remaining returned per X,XXX as day June, as production of year-end. day of which and per of to we quarter to our oil the our We midstream barrels quarter. presentation. performance the third production of these ahead production the We for returned the result favorable show XX sales oil a their the production in

of our currently program. to are X the performing operational curtailed We optimize processes management

requirements obligations ensure are and lease we to compliance. First, managing these other

very to efficiencies production to to rates able optimize as managing integrity. maintain production, been the shut-in team of have identify. our we I'm returned reservoir are has incremental chokes proud Second, wells and conservatively cost

to front, partnering on initiatives like ancillary costs our On other with the procurement have actively we on chemicals, rentals and LOE vendors items further reduce been services.

gas our three units. reducing of and successful We aiming operating have decommissioning on been acquired in the costs acreage, including recently identifying

subsurface team many acreage. that new plan a commercial to for assess expectations the this needed development the meets SilverBow characteristics to Additionally, continues establish

far, to all As synergies. and a cost we acreage Grande returns-driven organization, existing meet Oro appears make very our asset could locations similar present sure this to want Thus new our investment thresholds. further development

expected quarter. we wells in to capital XX% from on for third approximately On X the original the spend by early complete these projects our favorable secured plan the the capital side, estimates. AFE reduced strategy we pricing mover This

guidance, wells in total Eagle in project, are the Webb X which in planned XXXX Mesa of County. our free additional Outside The noted budget. execution XXXX the our cash gas associated pad, of the cost to adding our efficiencies La The is in capital of a with fourth ninth X-well midpoint dry us reach Fasken spend for maintain well and is million XXXX. remaining of quarter Ford X allowed fourth La flow while X the planned As the $XX.X wells the in earnings also to release, drilling. quarter Mesa to project Upper have last is depth

to budget million Our in million million We $XXX $XX the be third to in implies million dry attributable of McMullen the million approximately expected $XX quarter gas to to XXXX of development the half deferred to capital $XX related estimate incurred will year. place revised remaining oil fourth from second wells the million $XX is the year. quarter. the earlier in completing this of $XX CapEx take The

our part third and the XXXX. of release for provided yesterday, guidance we As quarter year full

to the per being the to For a quarter, guiding at midpoint. third XXX we MMcfe production range gas day, XX% XXX of are

MMcfe are increasing per to XX% XXX gas day, our the production the XXX at being full we range MMcfe to year For XXX XXX range day per of midpoint. XXXX, to a from

with and of although Our for prices. make provided we guidance in evaluate accordance elections assumes continue the to remainder monthly commodity year, ethane will the rejection

alluded to believe and the to heading favorably As production into manage the reduce Sean we positions year. earlier, actions company costs the taken

third the net quarter. late point high is expected for to oil in year Our production the reach the

year-end, production. towards and activity to we enter with flush return the gas XXXX a significant With expect of amount to opportunistic

is our timing, Our to first La savings and goal repeat well performance Mesa demonstrated the X-well pad. with

our allows to over to uncertainties flexible us view prices gas we portfolio and market be and term, near our diverse inversely in oil While adaptable correlated operations. remain to the

over in With any continue with As a that, turn mindset to development. Chris. returns-driven such, we it I'll operate regards to to future

Christopher Abundis

In I structure. Steve. this will costs capital as price my realizations, Thanks, well as second operating financial highlight and quarter our comments hedging program, results our morning,

sales. XX% $XX and derivatives, natural Our second was representing quarter revenue gas production excluding XX% million, of of with

for quarter XX% the XX, book XXXX. of of hedging was $XX of on on our for total realized contracts as estimated remainder the is Based gain Our hedge approximately midpoint our the our and hedged guidance production million. July

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

For per floor price XXXX, inclusive MMcf average day our a we have XX of hedged weighted MMBtu, gas of collars. prices gas for per at of $X.XX

represent XX% preserving and year to position weighted our average approximately of upside collars per gas MMBtu, of price hedge prices. gas $X.XX exposure next ceiling have material Our a

swaps $XX our and average per price per day of oil hedges factoring over a at with combination are the of have of floor. barrels weighted we price the a Notably, in barrel. approximately average Additionally, X,XXX collars weighted hedged

is mark-to-market our key aspect portfolio month value strategy. roll in XX, was further adding our Risk approximately July calendar proactive to our of our $XX average management and hedge a of are business, we bases hedging As supplement swaps and oil of million.

prices, of In roll in a we is SilverBow extending lower from prices. basis the prices. July hedge XX. our recent fact, hedged only sustained of handful before of one the a In that CMA companies period the combat order downturn to layered second during reflects hedges benchmark XXXX. provided protection as quarter, quarter additional note, book relief our this swaps SilverBow's into of on Please

a the average $X.XX average realized derivatives, an and oil of uplift Including SilverBow's cash $X.XX in our combination of oil gas, of hedge realized $X.XX per price. realized resulted $XX.XX and impact equivalent actual of per and impact of $XX Mcf, Mcfe hedges, of the Mcf per an gas the in hedges total price barrel $X.XX and total oil were SilverBow's A during Excluding average price produced on volume $XX.XX prices per price per gas an $X.XX realized a barrel equivalent for our price basis. per Mcfe. of SilverBow in sale quarter uplift of

on corporate XX of oil our both maintain in-basin continues pricing gas As shown on to presentation, to compared and favorable peers. SilverBow the Slide

per $X of taxes operating per per taxes $X our were continuing less together, Cash LOE, Turning per Mcfe. Adding G&A Mcfe, the Mcfe. $X.XX trend $X.XX total than were expenses production expenses oil Mcfe. gas X.X% and expenses Production processing of and was $X.XX cost. Lease to sales. and total costs production million. Transportation production T&P were of quarter for were our

as was us sustain and it competitive structure $XX as during commodity low allows Our for advantage the to million. cost of Adjusted profitability EBITDA flexible remain protracted price. a periods lean quarter

cash As of effects reconciled million generated basis. materials, flow. reported SilverBow $XX write-down in free to the million pretax impairment noncash $XXX we due a on a Primarily earnings pricing, of our of

$XX Turning quarter. total to sheet. million during the by reduced We balance debt our

credit June revolving under and $X of million of we million our facility, in liquidity. XX, As million cash had outstanding $XXX $XX

of result a expense was debt interest interest lower from a cash year as Our XX% rates down and ago reduction.

We considering continue mitigate rate adding interest swaps interest to are and the rate to exposure hikes. to market watch future

Our capital cash net million deficit outflow was a working million, $X quarter-over-quarter. $XX

of current acquisition year, note, Please calculation. for and working from paydown is the the first Capital a capital half of million factor $X cash flow divestiture the the remainder should liabilities of during the our on of a accrual Given from totaled be year. our an timing standpoint free capital excluding excluded less activity. cash expenditures working basis,

XXXX. from last April quarter, the During contracts our previously covenant conjunction and it the period. transactions extending to in into of discrete purposes a amortized XXXX with XXXX in time $XX properties hedge of announced and derivative EBITDA acquisition oil we over unwinding assets. a The quarter. SilverBow received gains Both the Wyoming calculation adjusted of noncore million amortize closed for gas-producing these XXXX, able March divestiture was December bolt-on factor same amounts through SilverBow's were in In

full compliance our that, continued to was second to covenants and the purposes calculating second Sean our base support. our $X quarter, For with XXXX of a was for were leverage At add-back their million. thank million received in million would I of beginning like over where our we with quarter, benefit syndicate And ratio to completed will a At headroom. our I semiannual total, in end the for financial it banking approximately his In our up $XXX had wrap remarks. significant million, the the to X.Xx. in and we redetermination, at the $XX quarter, turn ratio. prepared leverage benefit $XX set XXXX the we of bringing borrowing

Sean Woolverton

associated hold demand particularly up is and 'XX cash free domestic remain Thanks, Chris. the 'XX. dynamics generate supports SilverBow We prices, prices flow remainder subdued, set summarize, in outlook for that meaningful to of if of the our To as decline expect with oil gas production consolidate constructive Due to small-cap continues given drilling asset higher and a larger peers outperform natural and staying gas provides our completion balance us flow and to strategy and fruits winning base. relative cash we sheet a industry-wide and to power visibility, limited to potentially reinvestment. bear other the strength operate and SilverBow supply

the multiple Our step the stakeholders. continue this to strategy in ability future. us our uncertainty, joining for for see everyone your for operator the up, find think many call our future. get and our the box. In now results. turn We out earnings will of remains Thank the families our the call. intact Q&A We forward to on allowing in near material the I in call that staying of person and next addition benefit outside of in I you providing to are safe, share playbooks look with to that, updates for you putting to morning of our I and we producing To ourselves creative to to of ways pride guidance the further back you all and high-quality portion hope With face call. the listening, hope

Operator

comes Grampp Northland Jeff with from Securities. And your first Instructions]. [Operator question

Jeffrey Grampp

of kind For think cost a that I you have seen guys the bit much companies, what of about some of year? of seen. that Sean, reduction cost dig that you of you what front, know in the you bifurcate the on had little to seen? for efficiencies start might seeing the versus hoping we a second of couple split Was pricing talking guess, at maybe some Can slides you have How out reductions you've maybe kind I to well we Steve, cost compare if of that from a kind of And as you've in maybe be? to efficiencies terms half service well internal were more, guys. and or attractive about

Sean Woolverton

top Sean. efficiencies driving the down many job is this costs his of have team Jeff, Hey into even coming and on Steve great a done capturing downturn.

more So and you why it him able turn to details Steve to don't have on give accomplish? team his what I him been let and

Steven Adam

of providers. from from about from XX% were and coming specific seeing And to last with a more -- that where able done Jeff, earlier increased the end side the coming you, operational loading in companies basically with current Yes. Much we've from later said, the your the Thank and XX% we've is is some caused opportunities of that completion XX% a we're some capitalize is level some discount companies Sean. that of year Most on slight year service in efficiencies. in acceleration the side. to basis. That order to the to coming most XX%, spaces as we those commitments another say the larger price year. I of service to the on what XX% have fill at about being the That's XX% what of some of about would that is this question, of early reduction of of DUCs. year our been a on service that drilling

question, hold Jeff. that Hopefully, position our As looking into year, we end we're estimates said, 'XX. price the X% the your that X% by the 'XX, advance for through of through we're answers estimating year. in price increase midpoint about much to a That maybe AFE of going to

Jeffrey Grampp

these wondering, performance it. little Got had My of you kind know I you in. slide curious are had appreciate you some in That's I I Was wells shorter that guys there's guys performance a of those term from And a guys time? longer in think the the kind effectively, building kind really guess, that of kind kind that just expectations normalizes of follow-up guys an bit I just that. how of was good. improvement the, on of bump guys shut how those some you of Is a some term improvement? wells? Do dynamics. of for planning for of guess, over you are

Sean Woolverton

reservoir this again, are is to we're production historical uplift. assuming both and standpoint, those that performance, see longer-term sustained modeling, wells decline yes, return and a we From trends. if watching can pressures Jeff, guidance get Hey a we monitoring will But Sean. to previous

high-level Steve I'll more to turn that's So my color. it to if of overview. provide kind he again, some maybe wants And

Steven Adam

as we mix you, our our Yes. profile production Jeff, a have to strong Thank Sean. you in know, weight gas.

And never so as potential gas a you company, you for side, On know capabilities. storage have interruptible service. when oil got we've our

we flow only preserving we online. originally to initial when back graduated we very and same the to when So their gas That through service, when shut-ins in manage our us completion, back, protocol benefit frac not we do conductivity wells well a on through very go choke and of on that able a them that to been we wells cases, but have some production, gas conservative that conservatively to the only for go that model extent better very of even flush continue production in we we the some when fracture We these better very performance not that strategy original GOR than bring the we then our see terms same wells we effects, take the Jeff, happens practice, pack continue returns to And back areas by conservatism complete managed so in can, that performance. to interruptible managed elevated properties. same for flush, our better to similar but lo into the we've some the original continued gas And though decline, oil both mentality, see and do over time and some higher cases, decline. behold, somewhat extend in of early period production.

Operator

McIntosh. next question from And Dun your comes

Duncan McIntosh

fourth in bringing wells X going on color down to obviously focus the Webb. rig quarter more little in a those and there maybe the for on Looking back

think next But kind is gas. to for the about you've going mean, As is are a exposure -- year, mean, your talked -- I I really we exclusively increasing to think program that about you'll if program NGL of it what you Or to mix maintain a and do of gas some as exposure to on little a you more get dry that oil do the in you side program? that well? liquids wells more recovery front

Steven Adam

would we'll highest for investing you I continue with in that strategy tell us. generate our Yes. the projects that of returns

of we look to we even into we'll prices out We that front like So 'XX gas the to of field. pricing continue now program pricing. before do strong see in months in Right near-term and capital our in to XX some in usually monitor XX take 'XX. actions lock and

view X-well the start our that So and not will is quarter, rig with to actually too start early moving place, in out fourth That's far from today. program. in so the all a

So program 'XX. on end playbook gas in out, believe dry of County a being quarter, towards of capital we'll our early still that in mainly first have also pause the kind that. equal oil, And of in have of there, southwest to our committed some we're area drilling that We LaSalle of a of the our rolled quarter second then combination a 'XX. as up picks second NGLs X that take end liquids we of months gas. some that's in has blend we program drilling the quarter But and

Duncan McIntosh

XX, thesis of on that scenario role more more close I imagine And And of really the just Eagle about on guess, then gas of more location XX, exports that XX I'd calling your your All the in you're Ford, leaning right. have paying what and going in southern does in forward? as Great. macro-based, to are your play harder kind attention picking given of months? to thoughts up and been to next Mexico that we've kind kind seeing well. What

Steven Adam

markets, on on A our premium key both is investment side SilverBow side. thesis location the the in gas liquids Yes. and for

out so up as seeing described starting are in takeaways up terms Mexico that encouraged And that. pick of you LNG We're flows picking into to also September. -- activity you into or what we increasing, look NGL are

return Gulf the that's or will prices in it foremost, area. we and where So was demand believe Coast first and

year that So investing end supported, indications our we from the is Mexico as we have thoughts believe, and is of as well the around LNG early in by move gas thoughts. premium in of the uptick markets yes, really the as our we supportive into

Operator

comes question with Neal And Dingmann your SunTrust. next from

Neal Dingmann

today? a continue $X you is And just economics advantage, wondering thoughts those gas last So improve? months, -- can guys wondering us idea you costs kind -- you're an how kind let's your that economics. just see of a question these is And give my just X at say, X on nice just in now -- I'm of of sensitivity? cost on well sensitivities, to given $X.XX looking the to have to improved, your natural of and I'm idea handle to at I'm much are, improvement and trying the efficiencies on if economics continue how just could some Just get that those to an efficiencies? or try give given level, us well

Sean Woolverton

Yes. in question, get No, our the always the typically, returns that, the area, D&C like. in we target we range. really threshold $X.XX to Neil. where XX% start gas And we County to said Webb especially that pricing thanks for returns is We've

move $X, north we closer moves XX% they to to $X.XX, above stronger. XX%. to even And As get then that

and our it we So love $X. We'd said like it $X.XX, we $X.XX. even more at at business we've like at always gas

that of this And reductions we we still year. And last we're late if of least even part term. see these probably his system see over Steve XX% So costs reduction that a into have, upon in think, CapEx at early at side, I costs the least of year and team the hold really, term may some near mindset. then capital the embedded stronger and on service into depending long

Neal Dingmann

do you lower guess in lock I all would have and Or you much guess, going I cost. in longer-term all into costs lastly, here? cost would And you then past? just the anticipate here walk from just on you

Steven Adam

of managing really think I No, the flexibility a think critical business. we and Yes. keeping optionality part is

in -- us locking And any term, no, so contracts. near probably I we'll longer-term don't say, envision I would

increase in flows having look up as our that of ramp 'XX, cash back we scale is, cash to into spend, within our where cadence Some then capital spend that activity, ensure and some we flow. we

current probably larger lock-ins to desire company not scale get get and it do more scale. as potentially to is up the we're something set at to we strategy It for our we to just have So a long-term fits that and be now.

Operator

question And comes Bison. Young your from Josh final with

Joshua Young

with So I guess obviously, as the survive. stock your just extending looking I debt that longevity at interesting is $XXX combination it And be either this of do, option, market of pretty write-off context, improve of prices increasing that on of $XX option. an would just guys' you Obviously, million, versus capitalization? to your essentially what, and how kind get essentially your or value it's trading about the gas extend guys lopsided. ability In high how payoff, point giant level, sustaining million to had terms option you're guess, thoughts a level in so and some a the that to or this guys' high working at do think that or at you right, business of to the of

Steven Adam

period up is, first a firm believers performance. market's backdrop, reward as of We've supposed challenging run the for we find times the -- and believe cash struggled hey, took into SilverBow. undervaluing kind you do to the ourselves that ensure the this be business right, always start environment say is that commodity extend effectively. the Yes. to there's that and Yes. foremost, We you being I We've would minds. that in. on we market how should managed always you that, way We sheet, liquidity, we had on balance through to With actions this the to -- run, long-term The runway of early it's that understand great next been our king uncertainty. shore lower-priced then of step reinvest very we thought our when

up we within basins what consolidation extending capital set sufficient the clear we And and see allocation And you're believe there's in liquidity XX the primary consolidation and program necessary keep very we that Eagle we've have States. months to start wants that. going at not key do We operations, and visibility 'XX this we a play start next of champion. favorable capital to 'XX the to is And into to point, United to the in SilverBow think is liquidity believe the that up. most is basins of consolidation to metrics. while really efficient a environment. So leverage to the one to key Ford the have XX the where over runway believe and environment. each through that low-cost the that prudent way doing that and structure win We demonstrating basin to

Joshua Young

there's Okay. guys' Great. follow-up, And service benchmark also about because then of oversupply your that your And found cost kind environment. how -- control? the of operations talk in so you a peers. your guys' you business those about about kind guys as a to money can talk that Can you savings, are versus are talk overhead changes

helpful get of then guys It'd represented. structure kind your kind to from little a extent. you address you costs was and question changes and guys also at you did But there to competitive. and prior kind kind of, drilling some it. kind a see that's it what how of of And of making understand So to literature, operating guys looks efficiencies I completion different third-party be about that, cost guess, looking how more are

Steven Adam

were Yes. that SilverBow, position and tell We you is as this came in what gas for a that of downturn years. deal we operating number expenses capital. are into to in a and peer-leading because companies. with many in we -- What gas of environment, It peer terms would I of is with we we believe had necessitated we have our was commodity been price natural had low at a dealing

both already So side. belt had peer-leading cost around expense all-in to looked again, structure, we of to capital peers our a try operating were on oil at the unlike have to and their an that many, tighten $X. really always instantaneously many side survive, cost We've to

that. to do continue We

at much so the because quarter long just But but The that unit our out look so -- expense our take our Eagle long-term when in shut of Ford, component costs is of drove the picture quarter, just a second we're represent cost most fixed we the in doesn't up. and term volume. top-tier There not in company a many second throughout you the the U.S. of

So We'll focused coming it being out take continue into just low-cost of we actions prudent going hey, and prudent it. a very operator. see, actions stay to on

Joshua Young

were that Got of some you in I was and monetized it your And shut some monetization it. that fantastic think and really able helpful. do that credit hedges That's for bank to guys production. get

that for a just where price are was some going up capitalize into And much in industry-leading prices Obviously, you all a you amount cash to company the of that. hedges positioned a from question how again, than gas you activity. some get and last an and in a guys or and But set environment? on year can flow obviously gas talking benefit about debt are of address of strip macro higher lower guess consultants think guys I industry kind potentially have the kind this are terms change extent, $X questions prior but in I way from next a gas like of well price environment this even say, your potentially, higher How let's undersupplied extra potentially. in that. to it? does --

Steven Adam

Yes.

our than out XX% We have strip. significantly look we hedged probably that higher higher move we gas agree gas prices and current as of next hopefully So the year. currently into 'XX,

look the current year -- but we're so other prices think as about of view higher being our XX% probably strip. to of exposed to our capture -- patient as well of to that is prudent, still We'll be use next Then goal flow. on the as at production free top -- look the upside. we when cash to than it's manage collars in think deliver again hedge to So growth we that, to our further lock

prices, business than prices program and period, those we acquired XXX mid-$Xs, day. year, what's pushing period returns block production we and it if our Last -- of So a probably a brought to X-month on And more up a great within in revisit warrants was of if bring X-month we'll first and move can assess our nice higher, that period, about additional a warrant million is gas even acreage of lot capital expenditures. our short of from we time. at on acquisition a gas $X, capital will

So in even which also strategy of ready is in we supports it. where it, be if lock invest prudent, on a into current we currently lock it and then flexible higher to remain price piece but have, our our exposed to when it's think and that plan

Operator

this there And no further are questions at time.

Steven Adam

Okay.

Jeff Magids

you. Thank

Steven Adam

if you wrap up call? want to Jeff, the Yes,

Jeff Magids

Thanks forward to you, update everyone, the Yes. joining in Thank a you look providing of the towards and again. today further year end November. for

Sean Woolverton

everybody. Thanks,

Operator

That today's does conclude call.

You may now disconnect.

SilverBow Resources (SBOW) 5 Aug 202020 Q2 Earnings call transcript