Clay. Thanks
Page quick Penn is operator company pure-play Let's with Virginia counties Shale start LaVaca in Eagle Texas. overview. Ford and Fayette X a Gonzales DeWitt on South a in
and We and Virginia. XX% production by net have is Ford, acres by XXX,XXX approximately gross Penn XX% held XX,XXX which of approximately acres in is the Eagle operated which
September XX, only this I is on was inventory inventory And that Ford. want XXX lower drilling estimated out locations. Eagle for gross point Our XXXX XXX or to net count
acquisitions, from well adjacent continue replenishing additional Chalk location and recently land acreage as our equity earth model. find the we Eagle team by in to that leasing, hope our operators. this for increase also And to upper organic with goals to that identifying is our of inventory One in swaps inventory Ford through as count constructed small technical
was LLS, Magellan spread. oil. MEH dedicated enhances which Penn currently one was Light rigs the referred we as as receives also Our our premium Louisiana Houston, XX% which Virginia's third Sweet, EBITDAX or frac in liquids, production East quarter and two which adjusted running to product We're margins. oil XX% pricing, of to mix refer sometimes
for we year-over-year well growth on XX% to that XX%, first are results. achieving We XXXX based way to targeting of on production are nine and our target months the
the move to on So X operational closer take solid a our let's for look and third Page and financial at quarter. performance
period XX% For XXXX, of XX,XXX the from months same the equivalent increase of averaged production last barrels which day, oil nine year. represents first per
average quarter the of over we For second XXXX, grew third the daily quarter. production X%
average to the which the We resulted LLS close price of of our third higher $XX.XX. quarter This than the oil $X.XX third or markets, proximity MEH XXX% continue and quarter. realized to price approximately the in benefit is for from WTI
For the WTI pricing the realized we to that off. be of $X with moderate expect expect parity up balance to year, and or premium at to
million the last the or for $XX.XX months first the than which $XXX.X EBITDAX BOE. higher was year period was Adjusted per same of year XX% nine
XXXX, We year-over-year. of months nine the $XX.X higher XXXX, second million, direct the than quarter that's recorded of adjusted third the EBITDAX and for first quarter. of at expenses specifically Looking X% BOE per operating improvement was $XX.XX adjusted slightly
Our growth X.Xx to in to September as adjusted to on EBITDAX compared leverage X.Xx allowed improve XXXX. our us ratio XX,
per offset months diluted adjusted share. nine the net by income for of cost $X.XX pricing lower share production, lower the per of year first increased Finally, yielded
Penn success. to Looking are there four X, continued at Virginia's believe Page keys we
has we cost oil-weighted for the Penn any cost. our maintain believe First of structures all focus E&P. is Virginia one must this commodity lean structure profitable, price volatile In environment remain lowest you on of to and cost a
margins. strong maintain Secondly,
priced Gulf accessing through multiple markets. Coast previously, such markets the As close Gulf mentioned MEH waterborne as and access Corpus pipeline Coast to the points. and by premium This Christi LLS our Pen truck includes to access proximity I allows markets Virginia
ensure discipline. Third, financial
Given financial discipline the a a cash expected current energy growing and while example balance strong great commodity remain sheet, within production maintaining that. and on continued drilling the markets, hyper-focused flow we volatility is of in
in And small unique, generate generate most within quarter, free with We XXXX. cash within this near free term. a important cap finally, in makes to means to must your cash you cash and measure and flow flow. the in cash free flow significant Penn a Virginia to Ultimately, proven live path drill the clear expect we fourth believe flow the generation
budget capital budget to primarily Eagle our On due it capital higher estimated all in of and Page at to slightly Ford. $XXX to our is currently for estimates This million, factors. XXXX, X two than is turning million previous $XXX the
First recently acquired interest we of a additional of working all, assets. portion in our
million proposed also recently three another million We $X yet small working acquired These interest in interest CapEx. entity's $X additional wells. in to account in for approximately working increases
those expect we with contribution although, may facilities timing. will pipelines to due the now grassroots pads completed be in be balance of to XX% year the acreage annual of minimal to likely to is directed drilling spending of production the leasing. efficiencies, so Also, toward year, CapEx and this due and additional focused be drilling expected total also additional to completion two increased for two year, December pads instead this be next incurred on
previously, plan mentioned program. assumes As a continuation of I two-rig our the
wells XX.X and gross XX.X line and year full and line net expect wells. XX wells in to drill the XX expect turn in or XXXX, and X.X the fourth gross net quarter, XX X.X net gross For we wells. turn we In XX wells approximately net to gross in drill
the and our realize to continue of efficiencies significant outstanding due work We team. operations completion to drilling
ending now. Virginia year DUCs. up efficiencies the to the or X end Penn year drilled X given at to DUCs estimates previous uncompleted expect we Our but with these But with
to XXXX in third and we We of reduced XX% to have completion quarter completion XX%. decreases XXXX drilling the drilling saw third overall seen significant costs of Comparing and costs. approximately by quarter the
service cost into continue reductions quarter benefiting contracts expect XXXX. the been cost of in renegotiated service as to additional these we have reductions fourth and our We from are some service
on Slide Moving X. to
to quarter committed slides. lowering two is continued In to the discuss next efficiencies and will target stages day. on and drilled our I driving we service to and per feet targets organization throughout completions the the costs. day pump improve made working drilling with third we progress reduce our have with on organization for by exceeding our the those providers Our metrics exceeding have our drilling per costs completion
where on quarter. technical Page where X X-stream charts our feet day years this average our X the over per we feet we our three last has operational of per over our execution XXXX. primarily biggest drilled Area is improved per average to that's two In seen feet day average team The the Area about where drilled rig and several XXXX. the illustrate we've wells XX% the has dramatically X stream third wells In from improved release. simply since also spud And improved day by pickup, approximately in X% up
quarters includes to And So also that XXXX. three running XXXX casing. of this the compares first
and Area first wells cost in The X. of basis the in to an of which was drilling Area pad or by was The wells Virginia. half in from feet cost averaged average release XXX% three The of improvement X.X Area to is the rig from performance the the well quarter than complete Addax to third in X XXXX on XX% completed X lateral XXXX. averaged days spud over performance date release an XXX XXXX spud equip wells best Penn drill foot drilled roughly about per that per Addax to rig XXX a less drilled day
the about well our well over pads. Moving on Slide the cycle time The two and three efficiencies. the to the pad improving clearly, in years. last charts chart to significant spud back from X the tracks These flow a improvements wells, several on pads time well talking on of first both two improvement the of illustrate
for the pad from XXXX. same between to third XX% decreased to skid quarter same time the on period. has rig Similarly the the The also of quarter improved moves time wells pad times XX% over first from pad
over completion drive to pages illustrate side ways to work the improve focus in increased down continued and of the an page things a the while still in environment. increase This efficiencies stimulation cost same period. have horsepower and efficiencies that we've organization also previous that On safe with availability service XX% time maintaining
and and mentioned XXXX delineation net X,XXX we X,XXX I two-rig as and the this growing operators Penn acquisitions replenishing We drilled ground net X, can on continue the acres program replenish further drilling. leasing organic slide, it one the technical swaps my acreage We our Slide we respectively. adding adjacent on brief to game. our X,XXX focus overview X,XXX added to acreage call company through inventory goals year. our acres inventory per in and teams for is On small comments In a Virginia for believe by of and with 'XX land
So far acres. XXXX XXXX have in approximately we added net
transactions year. the give We ability on work continue several for it us accomplish confidence target in to and our to our additional
also we our we on replacing were growing of year not accomplish take but to This have In XXXX let's only future at successful a working goal. it. us this locations look and Next time. currently projects over inventory in we're several drilling our XXXX inventory help net
We and line Turning inventory, lateral our in black solid feet to net available bottom the right. as total the drilling treatable refer net to at total that lateral location of the length graph is the which above plotted feet.
inventory the have the in number delineation by and several adding of treatable including can three last lateral and years. acquisition through gross drilling. several increasing additional successful inventory, We in been We swaps net existing lacing acquisitions, feet interest also net our that in ways increase
total the links, find treatable feet. we ground game to thereby increasing where can increase part of areas lateral lateral is Another
we acquisition additional working of an approximately in feet as which discussed additional interest of producing previously wells, X,XXX lateral. as net As acres, included net made XX,XXX treatable well recently XXX an
first earth We've the phase our of model. constructing completed
data recall subsurface of of subsurface us acreage of help been to well Lower Upper guide the potential optimize may data targets, downhole as this allows seismic prospects Eagle the the have as discussion information Eagle of petrophysical identify the most logs focused. important from our early are promising Initial map accurately our where three-dimensional combines earth apprised position. program more Ford technical other well Ford look and results additional efforts you to a generate prior Ford This indicating recovery Eagle keeping geology evaluation. to on our targets to drilling initiative. As model and enhanced efforts forward our We everyone other Upper our in view oil
is basins many position our either as geographically LLS Moving Unlike well Penn crude U.S. that the oil to Eagle Virginia of all pipeline XX. WTI points an geologically no other or as and delivery the enviable receives in Houston. MEH constraints. Page virtually Ford in on has premium is production pricing as
have the Products to pipelines Kinder Enterprise Morgan access directly which We deliver and markets. into Houston
Christi We WTI. access crude Sweeny are the XX in to ability of Penn markets recording the the truck These or Corpus deliver above to is $X.XX truck realization waterborne other to to factors reason Virginia including also via pipe. primary have Philips crude Refinery and
In marketing addition, capacity oil we and the have our ample gas multiple future. both for options takeaway foreseeable with for
companies approximately Penn XX, at sector believe XX-degree is of quality oil production comprising Gravity. blended E&P in the oil we overall with with that Looking one an the averages third Virginia of our stream for quarter Page API the XX% highest-weighted
trading as WTI. the to is LLS at MEH MEH trading or premium is is into to at premium market. oil especially our and And the well $X.XX of sold positioned WTI production $X a as yesterday, are of We LLS entirety
heavy Page and to group the per Penn on oil. lowest one the industry LOE to has Virginia of peer our XX. weighting of believe especially in BOE Moving given We our levels
LOE levels. first nine on last of same BOE to at For keep X% from initiatives $X.XX BOE per And low LOE months three we the XXXX the was year. down per period focused at
downhole helps our we to volumes costs intermitter lift uptime. gas implement with system, maximizes fieldwide which are and continue Currently, lift of approximately and repairs associated smart reduce XX% lift this gas. optimizes well wells First, of gas on
system, SWD water expand gathering barrel Second, injection approximately saltwater or XX-mile continue system. per to also XX,XXX well and disposal consists of we which our system, day
truck. and For And midstream our system by reduce produced gas lift SWD our of our are pipeline for noted by centralized optimizing Also, maximize barrel and it acreage all the transport we gas every to out of we we build versus oil build-out competitive third-party This delivery us save more footprint. approximately allows that should partners. $X.XX expand cost cost transport continue via contiguous focus be on to substantially workforce borne having on barrel advantages effectiveness. water gas and third, effectively takeaways pipeline labor pipe, per oil costs our to maximizing
several walk over you going Turning the XX. proposition Penn Virginia value I'm Slide next through the to to slides.
ad In show per-barrel recorded $XX.XX Here LOE is expenses. we adjusted operating adjusted of for our direct oil expenses sum This a production on That's basis. in the we processing of and for some all BOE adjusted XXXX presentation. equivalent is BOE XXXX. transportation direct reconciled down valorem taxes GPT, is and operating our per of cash which $XX.XX per the gathering onetime and which the appendix on from in items G&A
We to the third improve $XX.XX lowering on quarter. by continue our to cost that number in per BOE cash
Slide per BOE EBITDAX XX adjusted our time. shows over
XXXX year BOE. generated full For we $XX.XX per
margins. pricing is cash end though XXXX. generated quarter strong We've even third of lower XX% and which prices from premium margins still the we greatly in oil reflected since For WTI our benefited the declined cost
the robust quarter. we expect generate to BOE EBITDAX per Importantly for fourth adjusted
On over the financial in couple years. XX show of we cadence of position the our past Slide improvement
We from EBITDAX have debt-to-adjusted at XXXX. ratio at year-end to net X.Xx driven successfully our X.Xx down year-end XXXX
We trend a downward and balance expect ratio a approximately of is financial to year-end the XXXX. company maintaining X.Xx strong The continue to discipline targeted committed by leverage sheet. with
that we've data. not the small Virginia Penn One's companies endorsing I any we of provided over comparison range note confirming several a group should of or to to next that are Now One's cap of large cap. from slides Capital large Capital E&P
in Capital set can be companies. us the large you to liquids percent highest one projected As of though E&P see has One of producers this
focus comes data Capital continuing XX. look is strong in Page margins. of same One on drive per cost at relentless Based this we it BOE this line second-highest had the EBITDA compared group to down Penn optimization ranks EBITDA as Virginia and ratio to how We on our group. expenses when cash the Bottom on per to to moving BOE. generate companies And
as to to the lowest margins cash trading investment to cash valuation of we XX ranks is compared low that for an free path strong as Virginia beyond metrics structure upside One Virginia turn the believe Page low-cost On multiples flow we Penn Capital very list an companies. our expansion. trading With leverage one of ratio having and during attractive clear a multiple that opportunity and quarter yields fourth Penn this
$XX.XX In you On this a cycles to quality one we be structure. that volatile and we attributes XXXX the for Slide profitable of XX by And believe we we expenses commodity adjusted direct an price Virginia environment cost believe Virginia is the lowest oil-weighted all maintain summarize structures has low-cost lean Penn BOE. make exemplified of E&P Pen need investment. quarter our per through must third operating
the grow help our Penn Our Access WTI. markets To access to peer-leading and markets with EBITDAX MEH combined waterborne strong crude to survive and operating BOE. proximity oil Christi financial access will adjusted by pipeline allows Virginia sheet priced price do and you per of must the multiple maintain maintain $XX.XX we by to discipline XXX% our third preserve our premium turbulent low as Corpus balance and and to during continue markets so. and quarter was truck costs points LLS realized XXXX to times
third net Our and further. ratio EBITDAX expect quarter adjusted was to it we debt-to-LTM XXXX X.Xx decline
in Finally XXXX. within the and flow generate flow cash anticipate Penn space drill the Virginia cash in with significant in free unique ability the is fourth quarter small-cap to
with And the go that can the Andrew Q&A of to call. portion we
