HES - Earnings call transcript Q2 2018

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Operator

Good day, ladies and gentlemen, and welcome to the Second Quarter 2018 Hess Corporation Conference Call. My name is James, and I will be your operator for today. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session.

As a reminder, this conference is being recorded for replay purposes. to of conference Investor like Wilson, to now President Vice Relations. would turn over the Jay I Please proceed.

Jay R. Wilson

Thank you, call. in our James. for second you Good quarter morning, everyone, earnings conference and thank participating

and forth differ and website. of will SEC. Our was Hess' known are to Today's call can annual Also, actual provided federal those the the projections earnings supplemental contains non-GAAP subject securities financial uncertainties and differences or in financial cause the implied may and within our the conference section other the information results today's statements which of issued non-GAAP morning to with we conference between directly forward-looking measures release call, and these that filed the meaning expressed financial Risk website, and may comparable GAAP on appears discuss be our measures from such include Factors this laws. reconciliation www.hess.com. risks These statements. quarterly most on in unknown A those the statements of found These set be in certain reports measures. on risks

Financial Operating are and as Hill, with Greg Chief John the Chief over now I'll Now, Executive Hess. usual, Rielly, Officer; Hess, John turn today me Chief call Officer. John Officer; to

John B. Hess

results. second financial Thank our our operating discuss then conference you, John a call. will Welcome Greg to review Hill will quarter strategy performance, Jay. our I update, will provide Rielly and

oil per so approximately joint our generative and in resilient environment strategy, cash and move capital with at a this to of barrel Brent we portfolio net million We we our lower grow continue divesting our return announced discipline to high make base continued the curve – in be strategy, a the price grade as focus the oil in the executing progress non-core interest to significant assets. efforts a price cash of are cost $XX low in low down to Utica in price during consideration of a our resource $XXX quarter our part sale post-XXXX. for venture June, oil by Consistent manner,

$X.X acres from these the proceeds reduce $X.X operated the announced Bakken, used the as we our one discoveries to largest our assets, core sales, where to as more in $XXX program highest repurchase Guyana, of net are industry's XXX,XXX our debt a billion have share than XXXX is well which the in return addition in our asset, and fund million. invest largest decade, of In the than to more and by play, previously oil being asset billion

During the a we previously are the interest we did superior announced to our process in financial X.X quarter, hold strategy Key is retain scale, operator. advantaged Stabroek and acre where our received XX% XX.X% a Hess massive is returns. will resource announced in we South Arne field uniquely our Denmark position in the meet sale rapid value interest where offers not in reservoir expectations. ExxonMobil Guyana; a and our cash by The paybacks is cost, Block million operator a the and is quality, its world-class the that interest has that

Liza-X which field be for produce Longtail this approximately with this to Stabroek in end the to production billion estimate day development, sanctioned third from is X of of the in more of production the barrels last Liza oil appraisal of XXX,XXX phase, the sanction into Guyana. June Ranger FPSO approximately gross The sheet of Longtail with Block priority in expected per as which for equivalent. than barrels well, Turbot the results X.X will is day, of potential recoverable evaluation. start-up The up this of than opportunities as capacity balance sanctioned testing Earlier investment per of Phase XXXX. well discovery early Liza maintain is vessel of today. week, Liza-X a the discovery for and the rating phase a by early development third Liza previous As and production mid-XXXX. development northern a for strong million million oil use oil along of the an oil barrels the XX% tested targeted in Phase-X second more oil Phase will to giant follows fund XXXX equivalent, by investment the The to targeted attractive grade barrels discovered our with use that the year, X and estimate FPSO underway our most XXXX. barrels of resources of first progressing credit is such, X of of by gross XXX,XXX portion of the Planning XXX,XXX we is to a designed was Payara per and at area gross Longtail the Pacora recent was order successfully from world barrels will with area recovery rapidly oil day is equivalent. as expected completion development increase of first one of oil field the incorporation established The increased hub support the Turbot discoveries XXX at for of first

total at discovery. is drilling, oil phases of the There drilled to day to up in over estimate. and this potential discoveries for FPSOs five development targets be established XXXX. discovery barrels potential this Stabroek significant have area for date XXX,XXX Additional from The for could producing additional the increase on undrilled by the to appraisal Block prospects plans exploration Ranger and per including rapid

the a We rig the free and barrels by sixth efficient quarter Mexico. XXX,XXX Also on The equivalent position day the generate to to we high in Block. oil Stabroek is key with our of a the added to Kaieteur Gulf and barrels exploration million of of per to Block Basin oil see X.X we April, is capital continue blocks generation a an to extended acreage where the participating XX% drilling day production flow or a second XXX,XXX along fourth in have acquiring of June robust In the is expected which our multi-billion a of in fifth average the Guyana-Suriname approximately per Stabroek adjacent interest We in size inventory potential XXXX early in prolific strategy to position from Block. quarter in premier this growth, Kaieteur barrels which the over add meaningful a of increase equivalent rig is Block of the additional locations. acres deepwater XXX period. Bakken, roughly cash in return plan by

plan provide quarter, the evaluating later to an initiatives the and techniques on the these study During important new update to further continued maximize this we year. completion comprehensive initiated of in asset. We value a

quarter per Second equivalent day. net of in oil production the averaged XXX,XXX Bakken barrels

XXXX production XXX,XXX per continue oil per that Bakken forecast XXX,XXX average For we barrels of the to barrels day. of equivalent oil full will year equivalent between day and

lower reflect to asset to XXXX, primarily our expense, financial offset DD&A financial of per lower higher Compared Now, XXXX $XXX million a operating partially in results, we quarter loss by and improved of down or quarter. sales. share costs selling primarily posted prices due per ago million a the realized turning net net or in $X.XX share results and from quarter second $XXX production the to our crude $X.XX loss oil year second of volumes

quarter our excluding of the averaging Second oil portfolio. range, performance above guidance XXX,XXX equivalent high day production by driven was end strong of per barrels our Libya, across

in Libya. oil benefit barrels net positioning reaffirm For over from of Gulf sale summary guidance full-year field production Mexico. our we we significant oil earlier and our of continue return company joint planned guidance superior our to This loss of barrels the an returns XXX,XXX XXX,XXX the long day the strategy Utica production than the our excluding of deliver (XX:XX) of equivalent of in now the per of and Greg make from call for our the from includes interests day to operational to XXXX, In per the financial venture production and shareholders. I update. equivalent Conger to progress executing will turn to Deepwater

Gregory P. Hill

for despite second was oil Thanks, performance the of equivalent number John. our of equivalent range oil XXX,XXX per that barrels continue day our excluding across strategy. related XXX,XXX of barrels Bakken, day net execute in provide update the some operational June caused curtailments heavy our net as we net end top XXX,XXX like significant averaged to to strong the closures. some barrels of strong above per reflected on performance the road Libya. despite This a of to day our quarter production In In and equivalent quarter delivered to another quarter, guidance rains portfolio. oil I'd we an of per

brought XX barrels net of quarter, XXX,XXX quarter XX wells day. production online. the drilled equivalent Second and second we In averaged Bakken oil per wells

and full in online. the a the still wells the fifth year we For have rig in our Bakken with bring XXX quarter. XXXX, XX early fourth to approximately sixth on wells a and In adding guidance, expect added we previous rig line plan drill

early We quarter. in third a the also third added frac crew

day the between ramping shut-in We account, from this from XX,XXX this XXX,XXX of approximately interests day. to we the production Mexico Conger equivalent gross quarter. third bring equivalent agreement field. Libya. from to of completions. oil forecast pre Production operated the factors oil Taking our Utica to Of an in equivalent XX expected which its quarter the pilot end expect Shale we by is per back the barrels per plug-and-perf. net JV results Shell in Conger to continue we of limited Enchilada the wells net day Gulf production In to XX,XXX of transaction this us brought XXXX to to facility and June, over Production the and back up to Deepwater be process increase to expect these from our late its to XXX,XXX average year, play per into in oil see announced to barrels planned of In XX online online mid-July, encouraging Resources. excluding restart of are barrels sell net Ascent rate was third allowed of approximately initial asset close we of plug-and-perf entry

to Utica We that barrels expected between expected per day, the net offset are XXX,XXX sale maintaining and for as equivalent average joint Bakken third year field oil production XXX,XXX net the of of assets. XXXX, to we is equivalent our the of the quarter of XXXX earlier guidance day. production in oil Both full year Conger venture production production barrels XXX,XXX our with XXX,XXX range of the associated return to will and the full forecast than per

to steady program. assuming XXXX We by Bakken to day per equivalent net approximately forecast a oil production growth of XXX,XXX continue six-rig barrels

per the equivalent at Now for Mexico, production again day Conger oil Deepwater guidance of XX,XXX turning to per XX,XXX shut with of Gulf in barrels the offshore. approximately net and our quarter. that was equivalent field of In reflecting over net the day the quarter, in barrels averaged oil of production line

For forecast net all barrels with equivalent Enchilada-impacted the back of third oil of quarter, Stampede, production equivalent the at per By Mexico continued of day. XX,XXX we average to net quarter approximately the we production per barrels ramp-up Gulf and day. to of fourth average oil fields XX,XXX online Mexico forecast Gulf approximately

of second Moving of day of averaged second production day to in quarter. quarter approximately day operator, averaged XX,XXX day of XX,XXX Thailand, net oil and XXXX. Hess development averaged Hess over second per day the XX% is net year. net a holds Production Basin, barrels the XX% joint equivalent average At per Asian the barrels in oil is net per per XX,XXX to production XX,XXX from where barrels North the approximately forecast barrels equivalent oil to of area Malay forecast and assets average At in of over interest, during is interest the per production oil equivalent Gulf the has net which quarter. equivalent the barrels our a XX,XXX oil equivalent

barrels which turning Guyana. Hess of are at XX% is of oil than to the that billion oil holds gross from X.X exceed equivalent. estimated XX% which Stabroek interest estimate Now to We of previous the a Block, resources equivalent, in Monday now announced billion discoverable barrels recoverable more on up X

to per of gross In by addition, five have up total discoveries potential over oil to storage produce floating or and offloading XXX,XXX to-date vessels established production, XXXX. day barrels for FPSOs the

feet XXX in reservoir. Longtail-X, the which and As June, encountered of approximately operator water well an miles oil discovery. was in XX X Block, we've bigger the X.X the high feet million ExxonMobil get approximately better. X,XXX to feet said eighth to In acre Guyana in of at located Stabroek before, west the of bearing announced safely Turbot-X sandstone of late discovery continues The It is days. oil drilled XX,XXX quality southeast

the for the completion to and the day. of The progressing will Hammerhead-X on of oil to success Liza exploration plan expected coming and Ranger-X rapid on Post capacity will drilling days, a progress. equipment The the prospects Stena the combined With Liza of potentially current riser-less oil we is believe Phase Phase and track Turbot X this to decided first the recoverable Liza drillship start-up coming to even schedule. XXXX. resources could provided area Phase laying Hammerhead, on southwest with at routine an sanctioned development of designed continues following and sanction an top X June May, the end. Development production drilling miles XX move well up section before Liza Ranger. to This in Longtail, XXX,XXX – operations opportunity of in in gross per make to Longtail oil proceeding FPSO the complete the higher. well several barrels development days. XXX began additional FPSO X per consist is an Development early to to X mid-XXXX. the equivalent, the of of well the exploration the wells construction FPSO foundation area production Hammerhead located to produce in discovery. and with barrels X Phase for in In of hole continue XXXX Hammerhead-X return Longtail, that to gross Carron. see year in is by million estimate barrels gross is will operator day take of maintenance XXX,XXX oil the in perform exceed the by the this we utilize subsea on

by significant prospects success on which Stabroek exploration dedicated quarter third to Block add on be appraising will Given and numerous the the potential, to value ongoing the a operator the drillship block. plans its the high remaining the now and exploring fourth

for through additional On see in block a participating as XX% across Block potential Kaieteur our evaluation of a Hess holds include We Bakken XX on Scotia, on quarter. Guyana styles. Suriname operator delivery has In more improving interpretation John hold million in interests third and third production processing Guyana the the Gulf to returns seismic well We in our a exploration in the spud X.X some BP licenses of to and well by of extension once capital-efficient program decade program. by call cost end In of quarter. a interest, targeting the drilling Hess acre each positioned I XXXX cover a execution sizable world demonstrated Stabroek XX. play has our acres Mexico. an us in closing, to X.X of and we flow end Hess The large will now Guyana have recently a acres, acquired working in million and spud of the again a first XX and will a results strong Deepwater this playtest these XXX turn basin XX% equivalent approximately million XX% offshore work blocks. Gulf portfolio. structure neighboring that combined Block Suriname, cash Rielly. from to trajectory over subsalt has to and Pontoenoe of growth which the and Mexico types X.X similar interest the visible XD and offshore Aspy the those analogous future play both In the class prospect BP The Canada, with excellent metrics. blocks with in data a anticipate exposure trap growth found and is than operator the Nova Block Kosmos the called exploration interest the plans and

John P. Rielly

of compared from quarter net in remarks today, first XXXX XXXX. first the incurred to the my million Thanks, a of results loss a Greg. will quarter second XXXX. net with million the We of quarter of in of $XXX In XXXX loss compare the quarter I $XXX of second

of was loss $XX of periods the Our down excludes which between in XXXX, the comparability $XX net previous earnings second million adjusted quarter from items million in effecting quarter.

production, by quarter follows: earnings as first sales reduced and changes The reduced by million, quarter all basis volumes expense higher of $XX an selling components $X after realized by the quarter in higher exploration for $XX net earnings by tax second $XX of E&P net earnings of cash adjusted by $XX and Midstream by prices costs higher in overall XXXX to results by on $XX other earnings the reduced of tariffs in $XX had between exploration million increased DD&A Turning million compared in $XX first second to increased quarter XXXX quarter the of were of dollars, higher million adjusted earnings E&P increase income of higher second XXXX. the an million, million, earnings reduced million million, items million. $XX higher earnings expense million, earnings reduced $XX income

XXXX Midstream the compared first net $XX of to quarter in segment Turning million quarter The in to to $XX compared Midstream in $XXX of million interest amounted previous Midstream. of EBITDA second income to XXXX. net the $XXX million before the the had in quarter. the of million income second quarter non-controlling

to previous $XXX corporate first quarter interest XXXX. were million $XXX million expenses of expenses second $XXX in were the adjusted corporate, compared of to in XXXX compared $XXX quarter million After-tax Turning the to quarter. interest the million of corporate and quarter after tax the and XXXX, in second in

we million share accelerated bringing in repurchases billion price purchases XXXX plan $X quarter repurchase $XXX million notes, purchased to to increasing We million of program which announced date previously fourth share billion. million remaining are financial shares an third purchase retired also average $X.X purchased In XX.X $XXX shares April, the under $XXX and June, our a per the of our $XXX half of during entered to $XX.XX In total $XXX shares approximately total we $XXX million in to of amount debt and of our targeting the second the agreement position. to was quarter, Total to Turning completed million. at in repurchase into share. the quarter. second million public

cash available was notional committed total were sale at a floor and a Utica equivalents we billion facilities XXXX. of of including in on set credit Midstream, received was In venture announced barrels from quarter. expected of joint liquidity contracts to are $X.X barrel completed and during XX. that be of $X.X Excluding purchase third the price the day put $XX option billion June billion, interests cash quarter, debt $X.X oil the recently calendar per year the XX,XXX per Proceeds third our WTI

full-year XX% unchanged unit of per cash of DD&A in $XX oil operating barrel $XX to oil in cost $XXX oil to costs quarter effective full-year which with third in in dollars of million barrel excluding and of $XX.XX equivalent expense E&P barrel $XX.XX be guidance. second of expense of Libya lower per Libya $XX excluding of barrel quarter unchanged. third The is barrel in of range range excluding to of oil DD&A in quarter million. barrel the quarter XX%, on million $XX for effective to for the tax per excluding expenses per to of for was hole oil X% guidance barrel the equivalent in E&P, barrel strong quarter. to tax quarter, of dry the projected in oil at The to to and rate an be of to equivalent equivalent quarter of in to This third of $XX.XX to line DD&A the while Libya expected be in oil oil per of first $XXX guidance costs. to of guidance production oil results tariff $XXX $XXX Turning $XX of expected at is oil dollars guidance to was per Exploration and costs unchanged million barrel full-year excluding benefit with barrel XXXX. forecast the million range previous to to to barrel $XX The which per Libya oil total equivalent. Libya, of third to equivalent forecast the XXXX $XX expense updated is guidance, full-year $XXX of equivalent expected and per Libya third including oil barrel for cash excluding $XX the equivalent range E&P $XX.XX benefit We of a range is range equivalent be of projected oil be equivalent in second full-year third rate from guidance our of are of Libya equivalent $XX the of barrel million the per approximately per beat in is for guidance per barrel and $XX per is X% $XX oil the to the E&P $XX million. Libya equivalent which a including for E&P expense with costs per were remains the project cash of the the be equivalent [XXXX] excluding the in range (sic) X% the operations equivalent, Midstream costs be XXXX to quarter in per of full-year X%. remaining

guidance capital at our expenditures For the unchanged full-year $X.X E&P billion. remains XXXX, and exploratory

oil remain unchanged. Our XXXX crude hedge positions

notion put remainder WTI of the for year. contracts have on We day option XXX,XXX a of the production barrels of per $XX

our hedges XXXX. of approximately the financial for per quarter reduce our results premiums million of crude will $XX amortization by on We expect the non-cash oil remainder

approximately Midstream $XXX to of quarter income net the which in be guidance. third the above we our Midstream, guidance of to $XX approximately For million is Hess attributable million, midpoint previous segment the from with year the anticipate full

approximately $XX of to is quarter estimated to range million. million XXXX, guidance corporate to in for to the million of be This guidance are $XX full million of estimated third range happy the which previous be million. of year $XXX down expenses year is be to in down the $XXX full to will to estimated is million concludes previous estimated $XX in be range call million the is range from for million operator. expenses $XXX $XXX and now the range the the over of the are questions. and quarter million, remarks. million, We'll my I to in the Interest in which be $XXX from guidance the guidance to the million $XXX third to the corporate, also to the answer $XXX of to Turning any turn $XXX

Operator

first comes Citi. line the from with Our of Morris Bob question

Your now line is open.

Robert Scott Morris

success the update that Thank in on earlier Guyana Congratulations John on this you. week. reserve continued

John B. Hess

you. Thank

Robert Scott Morris

Greg.

productive were half just be some the of the half Greg, many wells higher the in are I the area. Keene Bakken year how questions to of done in shale. XX in Keene year? wells, the have year? on the welcome. know the quick area those of plug-and-perf many those you first the You're first of How of in of the also XX completed completions then that this supposed XX XX And

Gregory P. Hill

And my do I something get correct – let want started, remarks. Well, me thanks, before in Bob. to I

per which day, was production per obviously barrels XXX,XXX incorrect. barrels believe was oil quarter Our equivalent second Libya, net I I day of said excluding oil equivalent of XXX,XXX net

with start first. wells the me Let plug-and-perf

be but have do that So said, this of seven XX completed. of will have complete, and those as will wells the XX you the and be those we online. only do year, year by those drill we of plug-and-perf of drilled online, end expect expect to Keene And XX to

in of Keene the done year, part second I we will year, the in so got XX remainder have we've first the in the first done the many the half about of half come of the think in year. how Regarding the area

so by should those least they're Keene say we've wells are far wells well, their at is that on some the type XX%. Now, doing done curves outperforming so extremely what I

here year So have again Creek good. we're do wells were there, Creek, those everyone Stony Also going by in the results those their the have this around very been XX%. area, outperforming we Stony of to that the done XX reminding type curves in

So program type year's expectation the curve. performing at, Keene Stony wells then in our the top East and Capa really areas are South drilling about and at two Nesson Creek and on this our are

watch. Keene are ones and to Stony So the Creek

Robert Scott Morris

Okay, great. update. that for Thanks

Operator

you. Thank

Our Roger next Fargo. question with from Wells comes Read

is open. now line Your

Roger D. Read

Thank you. Good and hit quarter. little a congrats the could maybe morning, here. on we bit Guyana If just

minimum X, is, – of and phases Liza-X to should upside in them trying of is where be kind that X or terms as if the So the we three first barrels out XXXX, to when barrels by and development? guidance overall and look we're of of maybe Liza-X FPSOs, expectations think of the at FPSOs the we frame the XXX,XXX impact the more we'd implying of sized at of

Gregory P. Hill

for couple comments thanks. Thanks of Roger. A that, Okay, there.

our day. we of you over a messaging first barrels we to up see all, said five think that XXX,XXX I FPSOs to that potential produce note the in

that's So one caveat.

vessels the and multiple and those with very further that – massive be phase, other much exploration scoping timing appraisal a horizons. engineering it's a well the the these function two reservoirs I think the areal other again, is, one are last ultimate and to extent very of work. and large of in And drilling size as lot going as thing is detailed

are So directional those numbers.

barrels Let's XXX,XXX we then we a see exploration again, it done, as get definitive. day. drilling that can be appraisal But and over more much and

Roger D. Read

bring other thinking shore here think plans Any know I you and the clarification about pretty how as to terms X in XXX% we one gas we much oil the are phases? as Phase look liquids only or more And at Guyana. is of situation, oil are production? these an Thanks. we the about gas future to thinking

Gregory P. Hill

the that to the for There in particularly grand reservoir, power Well, is being discussed the gas of be reservoir. is Liza to in is think of project right with Other the an re-injected small anticipated will onshore the Guyana all Government complex the than be gas onshore of a because small I in re-injected majority a that, gas the plant. gas bring miscible. now the amount

be recovery uplift of as that a putting So reservoir. the there will result in gas

Roger D. Read

Okay. you. Great. Thank

Operator

you. Thank

question from Merrill next of Bank Our of Doug Lynch. America comes Leggate

now is line open. Your

Doug Leggate

Thank you. Morning, everybody.

Gregory P. Hill

Morning.

Doug Leggate

could I on quickly. maybe kick very Guys, off follow with a Guyana, up just

But about for math in kind about really XXX,XXX you to has the looks been trying should what what like as you're start what any of move the getting parallel plan identify with half exploration are of and trying think the can into at the sense, hit see the forward Ranger for second the it walk through in, a on to to I'm you I think what to that things make obviously plan. point XXXX developments but of rig seem XXXX, Roger brought we're timeline? where some the second – us year, XXXX, we half is, is to these a we going FPSO coming doesn't point third to get really

Gregory P. Hill

Doug, to and is me we're think answer with regarding approach a absolutely way in thinking second in currently Let development first, operator are right that. that question this I support we of the manner, absolute the your and that's phased parallel, in agreement alignment in so now the

Ranger, to good then phase can we on we'll say sequence fourth of there and of program final next that the just go we're there's we've a drilling that out area; we'd likely year, stuff we've the for working the or well, to the a do, back we'll Hammerhead, are got drill potentially to Longtail lot top drilling go obviously to we the exploration resource remainder for stuff the all got of as drilling there. Hammerhead, things lot the to most Ranger-X, in section a go of kind rig now to Regarding the in increase do the Turbot I like but is the operator, of top the with some still

So out exact the Turbot but the we're and still order, in there'll area. Longtail be more working more

Doug Leggate

a be this third to Just is clear, rig a fourth or rig? Greg,

Gregory P. Hill

third yeah. a It's rig,

Doug Leggate

Third rig.

Thank Okay. you.

have going the the walk take for I kind any follow-up and could Okay, is And you or starting you Creek on answer, take the completed that Keene think second performance I better, one that to I so potentially ESPs Bakken and prior comment of through, you these wells of the Greg, some on back other contributing color as you appreciate better my better with wells but a can look plug-and-perf if could third-party the John I a wonder made Stony there wells down to doing putting else at conference us performance? had your the something then is you're well. Is yet? at to if

embedded a was guidance. just guidance I'm I in for your because curve better get wasn't your guess clearly type trying So really the to in embedded prognosis what

risks are what your guide how guidance for move think about we So assuming and that should for we performance XXXX? into you the in well as and

Gregory P. Hill

guidance the only we wells, the the of because for sliding on reflects Doug, majority sleeve three have so the of plug-and-perf our wells and grand now. Yeah, is that reason right

they're it's better expected, Now, doing but days. than early

plug-and-perf So wells. we data didn't bunch at want guidance uplift the of those in this a got until on whole to point we more build

have confidence we that. to good, so we but did wanted in data far the So before

on the of we've of as evaluating lift. use Now ESPs, some as well ESPs forms other been

are areas the in the the lift to the as obviously we're decision additional gas know, plug-and-perfs, well, But in have and of be we're perform which artificial not ultimately of to going lift use forms have high volume. particularly rates, on something looking handling. if is by they that's economics, the fluid some going that driven of up the you and at. rates operators liquids As doing And particular, continue to higher require there fluid use at end day,

lift So decision it an as side. to do be the economic on we will what

Doug Leggate

Sorry on to this, Greg. press you

clear, Creek the wells your majority in half wells, type of the I they're think your curve, completions Stony and XX% than XX% second Just better doing guidance. the the and Keene of year not the are to that's the be and in

So why raised in guidance Bakken? haven't the you the

Gregory P. Hill

some sleeve No, those of only raised guidance we've wells on but completions, the Doug. Keene on sliding the

not get watch I raised data, numbers, until get we have the on this the from wouldn't So reflect production itself Bakken – as wells. in data we space, guidance we more more the plug-and-perf but it will

John B. Hess

thing our important you're we'll obviously Yeah, hopefully in between might and to really future give Doug, onto the optimize which and be be the with that can doing and share completion year results rates we I going the think Bakken investment of a here, to clarity something, more we're now end where of forward in the techniques, study the the and Bakken. study what the ready production to our improved specificity on is

we'll returns So by let's question then get Greg program, provide be a of you're obviously couple that do, we end as think incorporate as more the wells output the of more I and program, under our belt, to and was able year. saying, on the clarity into focused investment that the on asking our

Doug Leggate

I patience, you. for Thanks guys. it. your Thank appreciate

Operator

you. Thank

comes next question from with Our Stanley. Morgan McDermott Devin

now is Your line open.

Devin J. McDermott

Good morning. the taking Thanks for question.

Gregory P. Hill

Good morning.

Devin J. McDermott

was a the first third hoping the relates this as of had that. follow better year. to addition up the on drillship just understand it of to I impact later CapEx I Guyana

in flat Now, that guidance you efficiencies offsetting there is seeing I that are for with keep that CapEx so the drillship? noticed unchanged, addition overall, allowing the you're business are CapEx year elsewhere some the to of

John P. Rielly

where you if because Yes. million for of look now, reason say why is the our and but spend. look $XXX right coming the of first at so I capital the down, type rate that guidance came we is isn't year at we'd on run mean, mention. And it's things of in you these that the our half

the right? Phase have the we're come we'll so year. reaffirming in it in rig And little capital see Guyana first then X we good X guidance the third year, impact. coming so So, we're we year. spend the an $X.X in, have yes, in to in the with also spend billion. Phase is the what So do sanction in half half coming to the you Phase and year rig the X the in again right we sixth that it's more later half What as in and have second of half And we second raise fifth second the drillship, of coming is the more the we So as Guyana, have program. now going component had will X now, in that far, to the been of But our have the that we quarter, other coming of the is up Bakken, be in as a year? than our do that have so have we efficiencies fourth going mentioned, on

Devin J. McDermott

Excellent. company, cash upside the then for at That's development. helpful phases post-XXXX. color. the about Guyana to on And within profile longer term? there's and And to post-XXXX the talk about developments cash you flow I on you've been ability since potential overall there of Can as well just talked flow as these positive the longer then the estimate Guyana fund additional just resource term thinking believe of incremental cash generation thoughts latest being flow also cash

John P. Rielly

best strategy matching cash talked price, it. The we can fantastic the more in environment portfolio very resources thing low breakeven on generating flow you've a at financial all combined just it add characteristic, is that for has heard the our a asset. free Obviously, superior Sure. just about, $XX. do with gives we It's $XX and attributes as up our and great But reservoir on Guyana. with at returns a to oil

that we've is the generate cash environment. price as Phase is breakeven Phase add we it go flow for happens higher to what can what X, done price or X, price you low continues a more a environment in portfolio our forward lower and So in

your earlier as me good on Now, you we free what information specific on. we question Greg to timing get mentioned have to and really don't tell what right flow, on know let just now cash

achieve timing mid-XXXX. oil with X the progressing we starting that feed of on by the information Phase that, Phase first X, to really we've what is So expect end obviously got before the capital, what rapidly, the sanction is. good and year

to on on So XXXX, been information X good now we so has expected during be that. a sized, decent Phase have sanctioned have we estimate that.

free So with at FPSOs FPSOs. generate can XXXX in post we three those $XX do we three see place, that with flow cash those

require, drilling and development additional in order Now, X plans. still and size to it, the optimize Greg Phases the mentioned projects got we've X appraisal exploration

what good will in what the future the exactly So to further as at really this estimate could not will be of amount I have that and how be future. point, XXXX It in the for timing a much capital phases. do But out is be can this starts sales about Guyana really with expected and that asset become to very way say positive is flow is the that we once Phase pre-position itself our cash portfolio we manageable the producing. funding X funding free

in mentioned, be I XXXX. will as that, So

cash can growth our for so and our really for free us, driving down production So the our breakeven in fits flow. we strategy, it that again, cost drive Guyana, right driving and portfolio

Devin J. McDermott

Excellent. Thank That you. makes sense.

Operator

you. Thank

comes Our next question from with JPMorgan. Arun Jayaram

open. is now is you can line on your line if Your please unmute. Arun, mute,

Arun Jayaram

wanted like wells of you Bakken sense spacing plug-and-perf? a you question Yeah, the or and look Forks. you're Bakken per of under the Bakken, the could Greg. how for Three the the and the us plug-and-perf for I in us what maybe in wells first just Greg, seven is sliding test well eight completions spacing to nine for sleeve, or can believe the Middle give I doing as doing remind DSU, plug-and-perf because Forks within will in Middle see the you're eight the if the Three you

Gregory P. Hill

days. it's Again, early Yeah.

spacing the sleeve doing well we're the are So with using compare want because same now to what is sliding using we two. we we're that

spacing keeping So, we want by same. well have to a the valid the comparison

we take each relevant of basin. well and industry for and the data, Now of as Bakken us of spacing, area one the type loading completion Bakken the as the study the we're will going to outputs mentioned of confirm part data study, help our appropriate proppant

those way aiming determine. we're then study DSUs So trying for Bakken maximize And that's value and penultimate to experimentation. own the we're what the Bakken? what's with in what through from to the question ultimately the is, our that's So,

Arun Jayaram

baseline? is the sliding sleeve, current can to you us under what spacing remind the just And get just

Gregory P. Hill

nine and nine the eight on It's and configuration. eight, Yeah.

Arun Jayaram

eight, okay. and Nine

you XXX,XXX Okay. day Great. view per barrels XQ equivalent guide XXX,XXX of with Bakken quarter And Do oil per oil day some barrels of Greg, conservative? that barrels you guidance the just equivalent of to per weather this impacts. equivalent did of in oil XXX,XXX day, of terms

Gregory P. Hill

in back track third think on quarter. we're No, the I

the on range very impacts the third recovering us hit June. guidance from that in our within right we're weather quarter, So late

Arun Jayaram

five have the Got gross of kind you phases? of you. five us phases billion much is of you resource project? just do barrel you distinct those now a think in range. final on recover my to Got And you. How potentially question Guyana, potential help X expect about Can resource

Gregory P. Hill

I the think X again resource is the block on recoverable billion barrels.

be I Ranger that I where think lie, of in are where vessels in – two much are as they complex phase those to very going or to they. Turbot, going kind where are phases said be to scoping in before those as last the they could are

that value. got of lot lot clearly, But recover we've here; oil to a a that. to extremely high as going still do there's We're in judiciously of possible. uncertainty So as

is news. this all good So

Arun Jayaram

Great. Thanks a lot.

Operator

Thank you.

next comes Our Mizuho. question from Sankey Paul with

Your line open. now is

Paul Sankey

the we to guess about free this about think that then the transformatively something Guyana, given is wanted you'll you. the sales, really clearly answered be, assume? policy? one is thing everyone. dividend back follow Thanks, doing cash buyback buying that? these inflection, you've again up in would Thank you're And thinking given stock, I have transformative I also I that do I that. asset you And flow hedging, that ask final how is guess currently big but when you be for so

John P. Rielly

Sure.

So, let dividend buyback. me the the get policy and

right that So now. let with are me just we where start

now, to I targeting $XXX repurchase the $XXX end the we're left million year, under the in complete of we share think million as $XXX and and the by right know, our you that in we've fourth. program got and expect million third

we And well in well we coming mentioned, got going the Greg forward. investment our got plans look as we've on Hammer exciting as are here so, Suriname, at drilling an third quarter, in it, another what

a year, reduction as right look if that we'll look I the little did there, end we at we'll where we debt to prices we'll in Was future. forgot, from see buyback time, get of and a it's are have into point now, and see another? or the Paul, So, there's the early you anything are where

Gregory P. Hill

Hedging.

John P. Rielly

sorry. Hedging,

Paul Sankey

Yeah. you ahead, sorry. towards headed Go dividend. I of but started sort with hedging,

John P. Rielly

Yes.

add I standpoint a barrels hasn't started day for in bit XXXX. again, mentioned in So us to more Why we you up XX,XXX it's production and as a still expect phase, from add investment Guyana hedging XXXX we're did a can the for XXXX.

may then our from Guyana put we on standpoint, hedging Obviously different generating be in get well the the at at start that's when to and less as as move when of looking dividend and free cash growth position policy cash and time. in it's to think a when we again our we're we're XXXX. it potentially forward, is some we'd we that prudent phases flow So insurance flow and just free increasing

Paul Sankey

breakeven talk get you that are you. Thank you that call for nerds. be, follow-up finance Could about would breakeven? talk $XX of a the you Great. us oil assumptions Guyana, about And many then on make Thank to the the you.

John P. Rielly

much assumption Sure. standpoint. It's to not have that – do an really from you don't

so unique can't U.S. and it's production system just public, it's talk the We is contract a about difference the from contract. from there. And look a confidential It's sharing but Guyana versus – at can call is tax it, public. the and standpoint it let's just a So royalty impact. a contract the you on there out

contract sharing cost that being you're that, ground. can is you what Gulf low then F&D the if obviously affected because your the low get additional not we're With have even with by breakeven the the So, to of prices able price. a so production But cost cycle get from of affected great point and in in your are is if barrels out you gets lower, in Mexico. recovery happens what is a works

get a more that way with cost the go help of point the lower, and that's contract. sharing So, recovery production to you as prices

the good you contract are, low So, – really the of and the reservoirs, $XX. of in mixture they to the gets sharing with mixture the F&D costs the associated it's point how the production it that cycle, that

Paul Sankey

I you, answers. great. appreciate your John. That's Thank

Operator

Thank you.

with Singer Goldman next Our Brian question from Sachs. comes

is now line open. Your

Brian Singer

you. morning. Thank Good

Gregory P. Hill

morning. Good

Brian Singer

more if Guyana you You've repurchasing here non-core asset wonder repurchase to come innings equation? left selling shifting for share a quarter, that restructuring the of any in of side preparation close towards the the assets, consider yourself in billion the with third of to development significant or I restructuring the production, $X.X the do assets see final a shares. and and undergone the you on Utica

John B. Hess

have Guyana opportunity. have I'd majority them John reshaping, said; going in still cash value say or two to of and the portfolio truly that, said for good Having assets portfolio key if happy point forward The they're monetizing; one is we're them, both think Yeah. we the we that not, I are really been full as because consider the world-class investment a There got if work's the Greg is would generators. done.

of oil not One the industry returns and high best. best financial the it's prices low in of with if one best industry, breakeven across the the the

credit rating our fund that, that. we is capacity balance and to second to grade So ensure have priority a third to first, do strong the sheet, maintain investment

phase of we're our plan consideration prices, now, more plan. for repurchase As and phase on give finalizing phase share further to definition the focused further of then requirements our development position and future as third we to fourth bringing regarding the then a we're get program Bakken for growth the and Guyana have execution, our capital we fifth growth returns But in a right and to better potentially capital. as well both clarity outlook oil that

generation I be position and Bakken well. flow in. as comes for to plan we're many financial Guyana cash fruition our that's superior love a as does we're in come to So are, think generate where to obviously, but we we the returns And and going years to position

Brian Singer

the Ranger then specifically like the for talk for Block? some are two can discoveries, and exploration acreage between is priorities And de-risked we sounded which And when within that relatedly, you elsewhere, my about in the maybe there? see the Thanks. to within discoveries speak appraisal Ranger and there it but between Liza would drillship to an follow-up in Stabroek where Stabroek with and perspective, third regards the plan can have portion exploration the the from and exploration extent Great. you more to potentially the at

John B. Hess

Yeah.

bringing working other the ship success from greater Longtail. had we your to sand with To channels Turbot focused that to there and operator, at prolific be potential going point, understand de-risked, starting the area the as we're on this some resource further to see area is is the with third we The be definition operator we – going to now adds.

to going is try that's what to ship the third So, appraise.

campaigns more that as get the of days obviously, wells, goes. then Hammerhead maybe that get that those to ship go further seismic see be yes, one And we Greg we'll definition correlating first, we should each coming exploration after the prospects Ranger, as the further or on where results to goes in and other block. we seismic, appraised see The definitely work in spud, well said with numerous the two we'll

I have exploration Exxon and we would the out we Stabroek another to drill of further on think Block the XX. there we do see being XX probably agree, success we're as are prospects de-risked block more said X remember, yes and

Brian Singer

Great. Thank you.

Operator

you. Thank

with all Paul Our Barclays. next question comes from Cheng

Your line open. now is

Paul Cheng

Good of number A ... guys. morning. Hey questions

John B. Hess

morning. Good

Paul Cheng

... first is Rielly. for

the amortization an what is estimate have you XXXX, do On the hedges cost? for

John P. Rielly

Sure. XX,XXX of the approximately a cost $XX million. The barrels day was

So, it would be....

Paul Cheng

For the full year?

John P. Rielly

full amortized ... for over full for the – year. the

Paul Cheng

tax? after that's And

John P. Rielly

Yes.

Paul Cheng

I And closed reason have over quarter? talking the why thought been talking million. particular already million, is million Any several that it or, hedging $XX thought quarter $XX there initially a to million, why now John stay already last I I is should then now up? and amortization the constant, they're charges mean $XX so be when you're about about edging – has that hedges you the you previously XXXX offset things or out up $XX

John P. Rielly

you prices back the benefiting million $XX right jump that to with two obviously and did due we – There's place options remember, we're $XX from $XX higher now the in we have collar the Sure. from reasons, from purchase. that the WTI was bought one $XX at that and million collar a

to from increase difference the million $XX basically $XX and that is accounting. to So, million only The million $XX $XX due million. between

on these you get have ineffectiveness. the You this hedges, mark-to-market way

that. we've the this for remaining sits amortized other associated year, that's nothing of amount income comprehensive additional so So be the got that with except going accounting part in to

Paul Cheng

Okay.

X unit Phase should drillship, be that the on be the because is same a the about going to that is cost that Guyana new development, going so higher? we to Phase X assume it's – as the On or

Gregory P. Hill

we still, now that of we're getting So and are feed information. progressing all right

it. you is specific we're But Paul, be year terrific of the And... to we're a can tell costs at I'd (XX:XX) be the will we'll prefer, working exactly But at there. I and a to feed of what We're now the going So with would that on still obviously little be on more this the what through operator the investment you, right end the still update year. we end the going working bit be.

John P. Rielly

What I costs of did the that X will say Paul, on say, for lower coming are that what line. will we than so is on I know based far they what most service Phase Phase for the X in

bodes X. Phase So for that well obviously

Paul Cheng

that a given Greg, size drillship, And we that be (XX:XX), should would assume right? XXX,XXX, new that

Gregory P. Hill

a build. Yes, that will new be

Paul Cheng

Because that hand, potentially refurbished. X, other be on Phase the will

is the XXX,XXX, for way it? we how go look only you that If at should

Gregory P. Hill

will with it that going only many, it the build matter is of attributes development. I what based be to think specific be this on topsides, the very consistent the those where it's the be but design is, determined, one, flexes to modular Yet strategy kind thing efficient be no will of

Paul Cheng

you what's is $X And rough drillship, give billion refurbished the and can new that of about some cost difference? between different a idea the us

Gregory P. Hill

doing X. job again that. of type What trying as on ExxonMobil Paul, I we'll is to that just refer We move the is this have me. but Obviously now operator. front value right Phase in a to information been them, has we maximize with on working that could terrific we're of question don't doing from be

John B. Hess

Yeah.

X have the able that the as is Paul, point will we be costs. is well. a ship as then you'll other number, our key possible. efficient will finalizing be the operator great you'll year, cost doing investors think as end I second to and our sanction to the those getting job here, FPSO, compare be and with of the we're When numbers before as Phase The

have you, and you'll compare them we So, sanction be numbers, ship we'll already with give once that the that to contracted. finalize then first to the able we

Paul Cheng

point sale, that put it at we up thinking the no you for for you And up about John it I and expand (XX:XX), money spending that before you asset, look should how production. some to at gradually one longer put think were that now sale, Greg,

bit grow we should how going decline selling that a you time time, it over should longer little now we you're it, so to allow as trying to of assume just So, are no flat over or maintain you're it? to think you it or

Gregory P. Hill

Yeah. Obviously, generating has Paul, upside we field both terms flows, cash nearby is in investment, and the based it potential pricing South Arne a of further good and very production some and that with also could cash exploration Brent tie in. generates asset. good optimizing some

it. which of going to value. happy we're we'll the It's we investment to have we're And maximize will an of to what there. normal We're It definition there, about have program we to up our to the manageable, to retain will for its portfolio. be compete course do to So, all But having be you. now value. options think happy the And with communicate capital coming asset. to plans get said in business, very that, evaluate continue on the rest as that investment further our in we'll program

Paul Cheng

Sure. we're Hey, minimum production. that one for Midstream XXXX And $XXX must call say that's per tariff, the barrel probably Rielly, looking final about including be from roughly is $XX John me Bakken million, at that $XXX volume. if for your it some million,

XXXX, unit should get we kind per as by be tariff day, assuming? out, what when barrel you looking So that we XXX,XXX to of

John P. Rielly

the in applied a calculate those net first, numbers, calculated to to third-party on the first in Midstream how gets applied then a back volumes So you're you when barrels, supplement, on can you number, includes and really numbers. see, it which coming thing, tariff put net tariff because also kind we getting the Hess to Paul, do is gross

for on if look XX% a then, us call about at that. we you that gross it's you'll put see So the we'll for the barrels. our do, we of basis And which in have $X.XX place after supplement here,

factored over in $X.XX of range type $X.XX, in see net we the factored growth from volumes kind is Hess. calculate to increase those scale – going as – sitting to forward, we you in, that get the efficiency obviously, get the of Then the way tariffs. when impact it's is will So the do time it but you'll Bakken, the tariffs

Paul Cheng

have by a you do share XXXX? Now number you can

John P. Rielly

No.

So, I mean, again, that we've will now, plans has and talked our about integrated the tariffs. work Bakken study, into what the all into to we're that doing be infrastructure

Bakken study value. part that's So of all maximize the to

Paul Cheng

Thank Okay. you.

Operator

Thank you.

Hall next Our comes from with Heikkinen [Advisors]. question (sic) Energy Advocators Michael

Your open. line is now

Michael Anthony Hall

no Yeah, Michael Hall problem. with Heikkinen Energy Advisors.

towards? maybe I be cards? of that but Is for the know So, about XXX in Is It this modeling like XQ point. mine better talked year just just still rate per something been the a earlier still sounded if most Bakken, you in rounding, XXX kind curious, a that of that XXX the around at didn't the lack have day. comments, on a sub we word? mboe was to answered had I'm should of of a

Gregory P. Hill

just to what asking, sure Michael. you're I make want So

Bakken we're year? getting to were on as talking end the that volumes the about we of the So

Michael Anthony Hall

Yeah, calls two that about something, I talked about it ago XXX to think you XXX. fair? still Is was or

Gregory P. Hill

in be to us XXX,XXX expect at still quarter... fourth can barrels plus you the Yeah,

Michael Anthony Hall

Okay.

Gregory P. Hill

...in the Bakken.

fact to full barrels. have the are be going above the planning XXX,XXX to XXX,XXX to XXX,XXX we barrels still XXX,XXX at then year, you'll you look the in way our guidance and just for barrels In the see if and we third XXX,XXX

Michael Anthony Hall

didn't I that know of on Yeah, meant rest if was comment the I the clarify. full or it. just year year – to sorry, Got trying the

Gregory P. Hill

no. No,

Michael Anthony Hall

That's helpful.

standpoint? And Okay. remaining or emphasis the there those timing is XQ turned a relatively to the are be from Williston loaded wells in any XQ in the across online or then evenly just year this year,

Gregory P. Hill

drilled from now quarter. more fourth and online quarter wells fourth will what any them the really that we in happens of wells the rig, fifth get because be why quarter by third is rig up More in the get coming in, production the going impact That's the that are the won't fifth we'll there.

John P. Rielly

The Yeah. quarter a going is fourth be of quarter in wells very terms online. big to

Michael Anthony Hall

June? one, the impacted how again XQ last you quantify and And guess, I just can much the then just the weather in on Williston Okay.

John P. Rielly

were, right It it June track because we affected. said, was on May, were thousand month was was as that and – couple the April, we a weather Greg and

So right overall for barrels. now quarter we a before. where thousand it couple were we the are track back was And on right

Michael Anthony Hall

Great. much. Thanks That's very it.

John B. Hess

you. Thank

Operator

Thank you.

Our One. from Capital Phillips next question comes with Johnston

open. is now line Your

Phillips Johnston

Greg, thanks. the look from to to six standpoint maybe just would third in with the on guys, first completions to expect year, rig closer versus versus the Keene follow to to the close year Keene, Hey a about closer the count to will the should prior mix to with as expect less this down we out at be up XXXX questions activity half of directional four you focused or the dropping this Keene area on half a of mix we entering XX%? year, keep

Gregory P. Hill

No.

then. think mode plug-and-perf the go but will obviously in we'll in XXX% guidance be will likely our by XXXX percentage I down, Keene update most the because we budget a

we So do for and to everything will all have as updated the IPXXXs our be XXXX. planning guidance

Phillips Johnston

Okay.

Gregory P. Hill

next will be Keene fewer this there But, yes, year. wells than year

Phillips Johnston

quantify... can you And Okay.

Gregory P. Hill

we doesn't that But mean on year IPXXXs be all average give situation. would there IPXXXs the a will year. we'll update in when for upward guidance next But that With plug-and-perf be less. plug-and-perf, pressure

Phillips Johnston

you've locations many come something quantified will after out at are Keene is And remaining how that there the that study? Okay. or

Gregory P. Hill

the that after well. something study out will come That's as

Phillips Johnston

a And Okay. maybe for just John question then Rielly.

outflows past roughly sort the to that expect reported have for to capital factors when $X so. guys amounted You cash And been quarters trend working that the have What you or there? of would billion six primary reverse? have

John P. Rielly

Sure.

kind through So of we first have the hedges. did hedging, of we'd our with gone So right? all,

$XX million barrels earlier, will mentioned have XXXX. we a we I our in day on as XX,XXX Now have,

will the quarter. that in come third So

there. So through hedging our go do

basically – that you've do things got had abandonment. is paid we Some you've your impacting the besides us were – of pension contributions, have like things the of got hedges normal premiums we

tax amounts. timing significant We've those back Libya, Valhall, quarters always got income when we payments to the were If several related rate. in XX.X% you're tax had in going on

and to what on our those our is going So higher capital. always would quarter continue. be run on I normal third a And the say first rate pulls were quarter working basis, will

we – the semi-annual quarter. – the bonds payments one, our on and have first you happen that's because third in So

recurring. as well. bonus it's normal then, has The your just first payments outside that, in quarter always of And there

the and in So get that. we'll from things only like unusual of things that there the is kind hedging

if much can was looked flow see you cash quarter, this wasn't at it it in a in pull of fixed you an right, and add So assets.

the actually, on working overall line capital it. basis, from an we had on a bottom So positive

and like and being things and the to just out going so not So third in are first and bigger that second move and fourth much.

Phillips Johnston

Okay.

Sounds you. good. Thank

Operator

you. Thank

Our Jeffrey Campbell Tuohy Brothers. next with comes question from

open. now is Your line

Jeffrey Campbell

confused. it's, what was towards maybe this I way kind wanted said all just give of it back that that plug-and-perf me Tier just Greg you thought it had were overview just kind could so I ask to But, it to stuff. complete sounds these about be a to you said particularly this wells, but on of the higher step based the morning. Good for becoming XXXX, I primary maybe about like going X on to like level? is felt talk of best resource, you moving and an you sounds past, In type a

Gregory P. Hill

Yeah.

You bet.

we of said doing always of well. We're Bakken think study, of are our But that plug-and-perf some the think in some went plug-and-perf, core use would what that to that are core using we the have is of I we part the We always correct. the trialing because you competitors of as knew core. as so So core we've the I are outside that.

value both So in maximize per the our the again, of way and is best DSU for the the the outside the mission Bakken, core. two-thirds here what in to inventory core remaining is

wanted the as a we do good wells to core So in to comparison. get some well

the ultimate, study. objective the that's of Bakken So ultimate

even improvement. results, the so sample again can core indicatively results on so but far, based and based in like it's limited the an plug-and-perf you a it Now the on give looks that far

just maximize that let's the the depending but, and dependent area value the could we're what's day that field plug-and-perf Right standpoint where vary end assume of field on that you vary the the So, throughout going do to field. and we're you where pretty looks on good, And saying answer from by in on field. we're the the best the completion now directionally way to to so in DSU. are assumption could at go going design per plug-and-perf an are answer area question,

Jeffrey Campbell

that I it's helpful possible always so assume say you sliding if – to that's also sleeve were economics, Well a be Okay. in.... and case-by-case would as produce economic it that going if somehow better

Gregory P. Hill

Yeah.

Jeffrey Campbell

would ....some use place that. you then

Gregory P. Hill

that's Exactly. entry think so And last there's kind happened what's with introduction quite and a plug-and-perf over and change about perforating. couple I it of years perfection limited we of of been which how changes the plug-and-perf, think in the

the So, And you tightly downturn. your where during control come of going. cost substantially and secondly that plug-and-perf are fluids have to the proppant then allows down

of then reached stuff So, that more a plug-and-perf is XX sliding can those. queue to come all And sleeve on technical the is basis in made about really kind into comparison sleeve. you stages on finally we limit sliding

that that's of sleeve. get tight or sliding is off can control a far stages, more have So, not cost I plug-and-perf, and

that So, to technology therefore sense makes it evaluate now.

Jeffrey Campbell

a helpful. mentioned think to or are study? development end added rigs I you maintaining level said you've going was appreciate you That going wondering, to Bakken and the already ask I is unsure until still the by go the was year, quickly, I see it. that third crew. And just I you forward wanted you're really to frac you of activity just this the you complete six

Gregory P. Hill

and function capital No, you six infrastructure build I think overbuild rigs and looks not directionally right, it about too be that's fast don't -- efficient. a like of and to is want

still spot. is this of at So kind point six rigs the sweet

The will year. third in of frac latter rig added part -- the the frac be crew

have its way. not but on yet, that So we added it's

Jeffrey Campbell

Well, for that. Okay. clarifying thanks

very thank Okay, you much.

Operator

Thank you.

Our comes Molchanov question Raymond from next with James. Pavel

Your open. line is now

Pavel S. Molchanov

guys. Hi,

me, point high kind for about Guyana. level question one Just a of

you at historically new How kind the asset obvious, Guyana that net of will with level what's XXXX, Given from of market? be company's out possibly just the a the frontier of been comfortable are of conceptually targets state for at a somewhat volumes half coming least that to you're point. third, and putting concentration,

Gregory P. Hill

We're keeps one that oil world-class We believe to opportunities bigger is of getting and truly very the that industry have world-class working interest happy the better. XX% asset. for investment in our this appropriate

happy We shareholder to and have so financial operator to very in money invest return. this opportunity have has we're ExxonMobil, a high a world-class which

our the happy Malaysia. portfolio, and Deepwater the are Gulf got and part with So also we net-net we also also you have Bakken, it's to of remember, we it have

managing of of risk is the financial So and different combination portfolio think of the performance manages only investments that I the really the those. but not

standout we and can think the portfolio our So balance it our focused be way the that for be best makes Guyana that's and positioned key with that shareholders.

Pavel S. Molchanov

it. enough, clear appreciate Okay,

Gregory P. Hill

you. Thank

Operator

very thank you Thank your you today's conference, much. This concludes for participation.

now may great day. You disconnect. Have a

Hess (HES) 25 Jul 182018 Q2 Earnings call transcript