PDCE - Earnings call transcript Q1 2018

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Operator

Good day, ladies and gentlemen, and welcome to the PDC Energy First Quarter 2018 Conference Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session and instructions will follow at that time.

As a reminder, today's conference is being recorded. I would now like to introduce your host for today's conference call, Mr. Investor Director, Senior Edwards, Relations. Mike

sir. You may begin,

Michael G. Edwards

Good morning, and welcome. everyone,

and Brookman, we CEO; Scott On release Financial and Officer; that our today slide our we Bart Yesterday Reasoner, Meyers, President afternoon Officer. Operating posted President; the call press Vice remarks have today. and issued Chief Executive Lance Chief presentation a Scott accompanies Lauck,

I'd your of We on the available to and presentation our which statements X also website are on filed call our of XX-Q. The like is forward-looking our that pdce.com. Relations attention press page to release slide Investor presentation.

present GAAP to presentation financial Bart started that, we the some appendix We over of you'll today, and will to to measures. With I'll that of reconciliation non-U.S. GAAP where so like I'd non-U.S. get also call slides attention Brookman, can find numbers the your CEO. turn call our a financial those

Barton R. Brookman

you, everyone. Mike, hello, and Thank

quarter And a ahead XXXX, progress slightly with through as a results quarter we significant of the and couple we First where our financial catalysts should strength half into XXXX strong XXXX. of and growth solid of accelerate expectations. stand second our of today,

cover quickly me Let those.

capacity of production our a midstream should this expected XX unbundle our for production. the next step significantly over expansions should Wattenberg First, late long-term series that start-up and DCP's provide first Plant the major is summer in of years couple

completion, individual basin-wide year production, more drilling, our performance. is momentum Second, both the to end our impressive and the of operations. continue midstream as streamline well Production results ongoing Delaware gain through results. These and expectations we should our even exceeding

the situation XX,XXX to quarter the in remains of equivalent at important, turned all for meeting extremely of area, with the oil levels. was million quarter team's the mix wells, our to XXXX, early execution last quarter above Delaware, strong exceeds oil oil Delaware the fourth And our were primarily over Wattenberg, highlights. first the operations. And due expectations. seven our When Some production XX% day. given same we in per our barrels quarter to XXXX line improved in majority challenging Central X% The the in XX% we company these Basin. And we first production X.X in phase in Boe our are very exceeding Overall, a pleased improvement XX% or wells corporate expectations. almost production compared production This of our production internal in pleased as year. and midstream gain traction are every growth we Delaware the from very or

cash company we Now Reasoner to some a from primarily let key second expectations. we are and pleased year Scott $X.XX line in quarter nearly end, Boe. financial with and slightly quarter. Liquidity million. production balance anticipate of extremely of condition metrics to when guidance overall improved leverage is right forward and $X $XXX XX% sheet; events This Overall, due primarily cover we cost. flow-positive. me spend, to up in million. Capital internal But XXXX ratio we moment. the improved same company, the per this in This Lifting financial hit lot EBITDAX on one-time target will with of due times. in Boe per are a a for the improved to our our And the the for annual $XXX Wattenberg, half detail commodity lifting is prices. more quarter $X.XX the last be to strengthened look cost, some for X.X will

day. XXXX XXXX. of half balance exit through Boe at improve of the We to the XXXX Next, Production per and dramatically into year. the second go should leading should as approximately what expect XXX,XXX for we

full as Our balance year. a will operational while And cash will close anticipate we strengthen momentum into flow-positive continue head DUC three XXXX in we given operations, next and Steady sheet, be Wattenberg build we as growth; operational cash the of this flow-positive, inventory strengthening slightly rigs year our we we Delaware a positive strong Basin. while we XXXX story. pace both strong maintain to sheet; our balance very and production state all

the company. talk Now two are let's we presentation the success, believe items an both Lance over will to the next years. update the X longer-term to for in Later on our near-term in and key XX give

to value of First, significant quality inventory that many drilling years come. our both for in can generate the basins, inventory

solutions include oil our takeaway at sales agreements the competitive future. foreseeable in These which we've both basins. for has reliable outlets ensure significant two Second, secured will prices

like I but thank in closing, company's district particular employees PDC the would in So to all operations.

West And that, operating job both quality this with over the financial will team challenging in Wattenberg, to quarter. very do a Texas And Scott you tremendous for the to thank an Basin Again, assets. winter in helping call conditions. of Our district Delaware the continues outstanding of team of the teams. I performed well Myers define turn to past exceptionally through overview some our

R. Scott Meyers

net risk this of price million from sales led the first XX% of XXXX. our board of first $XX quarter sales million welcome. year's in activity loss of plan of quarter million a pricing $XXX gains well prior the in and of keep $XX first to compared Net million production our was was impairment aside XX%, The price positive compared growth Delaware sales quarter to from $XX compared operating from year results. to This Thanks, million things quarter our quarter of cash I a primary first difference net to net pretty overall pretty much quarter. loss management over XX% line in to the for on at the million $XX as commodity the $XX in growth as Boe across the year some and XXXX. as some from to and high increased last income of Bart, leases level production With quarter. increase the was increase directly improved

the the and on touching at year-over-year note pricing, shift expect if largely we the steady the Please adjusted on to we Barring appendix accelerate in measures. is basis. non-U.S. increased table do graph these Our by a of aforementioned our operations quarter showing million. cash in in right net metrics sequential increased adjusted our on GAAP The Quickly not both $XXX operating each shown reconciliations cash the on the top to that to end the XX% from and found our EBITDAX can trend the deck. activity, pretty right, the sales. production compared on good of around a continue, graph job XX% first be quarterly this which from the flow slide quarters. of XXXX in coming driven growth in as any dramatic increase Both ramp

production production you We overview of our tax of in sales both moving dollars an TG&P trends periods. give X. are per between slide terms to would and production an expect absolute with as Moving dollars increase cost and The in and Boe. volumes

I'd LOE. like a to So minute discussing spend

continued impact quarter one-time to estimated in our slightly line quarter, on and primarily quality, Bayswater investment related acquisition. LOE production, in Wattenberg to prior year's in of Wattenberg than the came expenses the due the pressures air higher For

the of The basin, As Wattenberg the year you quarter Delaware $X steady Boe the compared of production primarily Boe. to XX% still see in per result sits a decreased first as can breakout per by of last at increases. the LOE

to see $X.XX to our be $X. will previously of we you XXXX within As LOE in a guided expect range still our minute, per Boe

including March $XX of leverage As of XX and had of $XXX million cash. times we X.X of a million, ratio liquidity

of million and quarter As from full $XX outspend million. an strong result a have commodity $XX improved our both outlook reduced results, to XXXX expected year first we

cover with divestiture the which in Butte recent our the this closed proceeds, to first expect both outspend We from were proceeds Saddle of and Utica quarter.

Finishing the exit XX, to on our expectations. reaffirmation year which with slide expect XXXX year serves our up simply revolver. we of and result, full a a remains guidance an show financial unchanged we as undrawn As

differentials. these for closer more the will have in on despite look of minutes. company for results how Lance We our a the Scott at Reasoner you maintain give over as lot a can operating realizations turn detail I'll that, received the to quarter. questions price With a widening call the few this

Scott J. Reasoner

quick teams for our good on Starting XX, everyone. morning, and thanking the slide solid such of a overview quarter. by a Scott, operational just delivering quarter. Thanks, to start want I

total the here, left-hand as already our our have our as in daily side line been for we by spuds details turn and rates continues and production Wattenberg Our efficiency The growth efficient team a to to perform gaining a Delaware provide quick at the of team and in covered. well and basin pace. at slide rapid quarter. is look the production on mature very level But continues a

and As equivalent now XX% XX,XXX you barrels volumes of see, crude. Delaware strong of day a represent XX% surpassed approximately PDC total oil can have volumes at per

Moving we our to year an expectations. and of full XX, slide quarter first capital overview give investment

year can Obviously, you math expectations. in the our suggest approximately quick line was million see, around invested As of first quarter billion. with internal the $XXX $X capital we right in would which full

stress to want I However, things. two

consistent First, our last and, capital program our internal few half with of I'll in the years year. This reiterate, expectations. the the with first line is is weighted towards

in impact these the wells we to of we fact, wells on meaning about expected, of bore come two the cost handful quarter. and than little In cash earlier production had online no flows weeks a full with

The within at XXXX efficiencies to to eye here our manage with range we mention in to to we our on the that the point of keep year, second throughout this stay point opened million. $XXX Bart a what million to plan reiterates $XXX program close capital expect and

to On key of the two the right I want side out slide, items. hand point

key with slides. closer few was first a in half. XX catalyst of impact Delaware of profiles. XX the assets our will bit year. in the at The I'll we're for production issues Delaware relatively had that a our outweighed a quarterly the gives million value-add second, cost investment lifting the quarter overview the second to more we line Starting we consistent And Basin expected color we invested production, anticipate Plant Wattenberg pressures midstream the completion of of Wattenberg. in with outperformance the our First, Slide $XX outset be DCP's of high getting and what couple an on for in this production in give our quarter. a

an of have with did However, freezes sit the Net-net, growth trend plant expect we for the impact. year. robust, fairly relatively and a linear we're and where today downtime pleased remainder

so In over. terms color pretty already there's good of this to go gave much not Scott on LOE,

as As a mentioned, a minutes in to of range is on the to shown full few year delivering once LOE I result a the gears, increased stable expected the continued per fall cost are volumes execution spend want Shifting Delaware. structure. relatively Boe with within again we

barrels of I'll second update XX,XXX our XXX to year. is a very we oil half much were will and to over Buzzard more and the As of continue impact in so. strong performance can XXX of the nearly wells quarter the equivalent so track fourth per increase of More seven these the production due and as Grizzly minute. give next an or XX% to day to On turn add Buzzard through our largely cumulative an Grizzly you quarter. they slide wells, the by in you well wells. see is in all demonstrated compared while quarter, they can see, quarter, to did days that of the on we have lines of the daily expect have production we XX an continued seven last in This

Wolfcamp For about XX% of we're accounting North barrels $XX million this equivalent remarkable five well oil five a well. about to truly has A and first With see XRL instance, worth for well, first can online oil months you XXX,XXX barrels of produced the months, of approximately the or in XXX,XXX the Buzzard in close production.

our the as well pad. drilling C we're Block Grizzly section includes on our XX Bear in forward, wells X. as Wolfcamp in A the Wolfcamp pad testing This Looking six eight-well first well section last wells equivalent wells per in half two a

in X we reminder, any assume Block (XX:XX:XX) a do As current Cs count. our not currently in

expectations, data manage an in at completing amount some line you of Just pad, on earliest of this we're have eight-well turning these as to the looking if commentary a November year think give to to and results. about really reasonable

Before assets investments. the to to want developed some our Central we've area, of continued about moving I talk through midstream the

of this focus well as the plan in we The outline to $XX million now, to destiny oil a right estimated we're shows scheduling and know, operations invest current through or all on water own year. system the infrastructure. in potential our important really savings. on to you LOE providing an note rough an I Block control water capital terms management As our X area. on able as gathering our for It's of to the that distribution But map in for system want

disposal we wells. see planned as area currently the saltwater disposal to can access You this have year another with as well party one several saltwater well in third

own wells, a can or in be lines a third flowing to pits to we're water completed shown walking also and of addition couple our thin well. water ready in through more from We on next of supply treated to the treated water XX% red job. recycled the of Quickly the a thick disposal flows recent to Bear a process completion imagine Water treatment produced and blue water it it pits Any recently where water used through here, and you can frac party use to couple lines the and treated into the even of now on our freshwater water the treated wells out pits. PDC wellhead to pad. line. excess blue we disposed stored the plan our be in water the gathering is be then On implementing Grizzly upcoming facility we distribution sent

recycled Our we We up. as water type is use being tremendous as long-term continue ramp this of to value-add to goal the infrastructure majority a of in a see future.

basin we XX, our nearly the quarter. from to are, This In We in the premium. of all pipe. Delaware on across in northern water slide wells the part turn color is all area map. Central Central critical at our of particularly recent some are area operations, our lines the on when our give in trucking on on putting These a of the efficiency, shown is produced

are showing consists the As As of and are of the still Wolfcamp these and and three-well the around Monarch days line Wolfcamp the in the were with all pad SRLs one albeit XX and and I with in both XX strong Greenwich on an wells, back good landing Sunnyside one these mentioned, strong with production average A All X,XXX half per zone. Among wells over B process. are of are five results, wells two MRLs. basin. Wolfcamp now and equivalent all And area. one B to averaging resource Old Wolfcamp of as flowback to very We the in X,XXX early to give quarter I'll economics view at wells the and our in between current our North currently Central the as turn Lance well day XX%. rate oil of as crude producing Lance? midstream Lauck a indication the barrels detail more call marketing overview each and in approximately turned

Lance A. Lauck

in our section and Delaware last a I Scott, start arrangements call the Thanks, of the this on focus want Q with marketing takeaway both to the Wattenberg. and

constraints, until crude second tightening believe is service to oil pipeline continue manage growth well-positioned while additional the months of tightening Basin. couple projected through due PDC last out Permian is XXXX. Despite to in takeaway the of basin value-added this widened This that the Delaware differential our Over takeaway the is assets. Midland/Cushing the half has delivering constraints current we of strong, short-term from to in capacity

I Before two to strategy. we objectives I to slide XX, make share want marketing key speak of sure PDC's the

competitive realize the believe plans, is achieved We takeaway being capacity The objectives to ensure these for our the the long-term. netback to in plans. development second and and short-term our both in are first future marketing is pricing both

look Let's at slide XX. now

the still to all, oil XX% total in of of while represents oil only Delaware, corporate for XXXX we're growth Delaware our XXXX. XX% strong the production experiencing for First very about

with gets of our work Delaware This corporate minimizes blended in is a netback taken So a slide oil which corporate while overall sales overall out proactive to approach due marketing Basin that takeaway our the seeking outstanding differential highlights oil pricing. that initiatives of the Delaware widening the PDC's team assures Basin. in solid our competitive marketing marketing impact capacity company. the key differential the the to position in long-term providing Delaware impact in to also two has

crude Crane of This to our approximately of directly on pipe projected Midstream. XXXX of XX% to certainty Midland volumes delivery points. First are pipe connection all, Oryx and connected provides Delaware flow oil

time. Delaware Additionally, in X oil in are for will trucked our connect budget system to project production that we out Midland. crude XXXX The gathering we crude We of this allocated of Block balance capital investment. oil will increase to on X. over in pipelines oil pipe gather percent $XX Block is own typically proximately of anticipate our oil that our building our that all We've our in million

include half-year is year represents is initiative Permian Corpus new energy it's also will we a provides timeframe out terminal. second company June contract where the international a volumes PDC which our XX% that pricing of through The period corporate five recently of with our tight export capacity XXXX our realize physical to international agreement of projected This is that oil terms in Basin in and the takeaway exposure. sales With beginning large capacity takeaway firm Permian XXXX. provide outlook. Our firm this a contract, market and typically Basin calendar a executed with the crude the Christi Brent-based for key agreement

of realize, and expect fees, all to XXXX. of end on XX% calendar volumes Basin transportation year XXXX between through after our oil We all from deducting XX% Delaware NYMEX June

firm now some through into me agreement. insight provide XXXX sales years of the Let XXXX

is We're the as and we is for takeaway Brent expected market associated prices development future Midland fees. in our long-term market on pleased the this it our based competitive can't be years based realize projected upon well forecast. prices details go we realized WTI two includes anticipate currently contract XXXX, pricing future that analysis to and current as through we and netback to our years oil the with for executed for at of transportation through both While basis differentials key new XXXX. price competitive plans contract, as this the Midland in contract for all we believe objectives. the ensures into oil pricing This and XXXX marketing have XXXX very current short-term capacity achieves It to expect realized it

represent Delaware gas our in the XX. Let's our now like in gas total production, to volumes. look projected on XX% are marketing to Again, slide XX% summary XXXX of the corporate gas Delaware Delaware oil at our Basin volumes about

South and area the back for Let's plant at processes market. it start Central their PDC areas. with Claw and PDC to Eagle Eastern to our tailgate gas delivers the of

We exposure. have two firm agreements volumes in future provides place Waha these and flow on that assurance minimizes

First, through Btu Then day firm have the Btu secondly, with fixed agreement the XX Channel XX have differential per another Hub. Waha to we per the XXXX. sales a agreement day Waha tailgate million Ship from from a million transportation plant we Houston to

continue transportation As we ETC-owned markets firm at ramp-up to to the wellhead gas North on the is purchase responsible and assets. capacity. continue Central to gas production, our additional under In ETC we'll securing work area,

now a take and look and gas at crude arrangements Wattenberg natural our Let's there. the gears shift to marketing oil

are oil XXXX. For XX% XX% our of reference, and Wattenberg in crude our assets gas natural to to produce about projected total

providers. gathered our of XX% process Anadarko about DCP our and First all, along of expected processed offloads with gas is projected to while to our Wattenberg process Energy in Aka midstream is XXXX to gas. XX% about gas of our is by

XX gathering, proceeds the on midstream marketing we to in Our revenues contracts recent are gas which for gas believe the nearly a certain natural track compression, XX marketing provider now processing, NGLs well-positioned we by by Plant DCP's of allocate and of percent and and are exchange the with which on Plant DCP NGLs. in the where today, and of we the capacity DCP are increase expansions natural for percent From based and Wattenberg the XX% long-term arrangements sit to their Aka from mid-XXXX. both with

basin. for continue midstream growth Additionally, the discussions infrastructure XX in Plant on

May basin. so DCP side, then And from takeaway work from with firm barrels into Wattenberg finally The oil per continue the expansions to best the define refinery Oklahoma. can Pony terms to we their five-year Express they closely recently transportation effective future capacity Pipeline entered midstream We for volume oil our Energy. into on various a on long-term with crude XXXX Tallgrass to destinations include plan XX,XXX key growth and day agreement delivery Cushing,

our creation. value MRL-equivalent potential Let's PDC's represent long-term The at updated about drilling average are slide based the of strong, which portfolio This economics value look presented on now in slide laterals. XX creation inventory. today X,XXX-foot links on highlights lateral

the Each an Our contained projected our We're average and per how drilling well cost the area. of in five all commodity major in the of inventory current it well economics focus that areas, capital our consolidated inventory of for economic portfolio. up price breakout only rolls provided we're represent bar but not below. into footnote in showing estimates also providing the outlook our are weighted current each graphs five per

So include example, approximately for Wolfcamp that of the the B. locations Block X in per XXX and well on based are A both Delaware Wolfcamp economics the

our inventories X provide expected NPVs graph bar at the rates are return. below, Delaware solid with very projects North along per and areas Central highest well within our to of As our Block

and on has results. some a estimates If very gross total X,XXX rates Our predictable well repeatable with approximately and our Prairie the in we it total Plains, assets in company Wattenberg inventory. highest are look of that portfolio of our projected return locations to Kersey, deliver basis, per

a average metrics entire Let portfolio basis. our a me well couple weighted of highlight upon based

be a And total per to very portfolio $X return weighted less project than our of First, we average rate approximately F&D our importantly, and XX%. estimate have secondly, we of Boe. to

to both efficiencies focus improved in on assets. continue We

are currently opportunity to forward determine example, look For locations. potential these at still very internal Plains and best We growth Prairie on this early Delaware. in the in based secondly, designs point. utilizing to we're And data the our in impact industry economics and for innings our completion

We through additional that components value. growing positioned highlights key on slide PDC with company focus together to in continue expects downspacing attributes today. XXXX. out in We're This where very teams and is final pleased the long-term to and work the each intervals. shareholder our additional deliver these Finally, the building operational of financial believe inventories that Delaware new especially towards

Our on team is value at and that, The With results, I'd to have is like focus the Q&A. such over driver the theme continue to very and key thankful PDC. and turn this it responsibility; operator our we'll strong over organization, returns, long-term. of a to for we're

Operator

Sen Our comes Asit Bank America Lynch. question first Merrill of from with

Asit Sen

to and are Thanks. different on does how Good pressures When is Plant resolve the you morning. pressure or just DCP? Plant up, the the to I or when And talks of online do in on progressing wanted comes XX ramps completely on follow-up XX. that on, line XX with Plant the Plant between comment respect And XX volumes completely get situation it XXXX? operators? line prioritized also could that,

Scott J. Reasoner

Scott. I and have to this is start color Lance probably to This I'll as will add some think well.

because to the I they management system operators. the the some At and where allocation point wells on in that's different closer to volumes the field the normal have times, XX wells companies the which between more seeing will Looking the it lets it'll on. and go ramp of it, you to operating managing a fairly come be wells call back and it we're I compressor the point really to to our the center When system according shut flow. once the come advantage that I for pressure vertical up line into volumes anybody best think want is get in we third – number in wells have Plant we're is lower is put the procedures on significant to which it at particularly with across that. that'll and and come the of the waiting wells the management approach increases expect quarter, XX have Plant tremendous quarter, linear But get away all the the that And plan we to strongest to as system strongest the on significant turn many Also, pressures description. old stations. of Plant described well guess the at this if benefit XX would do a idea you of operators the be to expecting obviously this an idea that they're they're that we the by they're, in really the down is

on we'll full flow We on. with expect come to feel get see Plant XX when comes but we XX Plant them like

Lance A. Lauck

speak I just Wattenberg. putting a think me relationship thing like the that with various spend And levels that in looks to meeting discussions really all little lot time we in the about a organization, DCP. them the growth bit are let our Asit, frequently of is with we and the at like future ongoing really what projections the together we of

what that more other So the from growth their of aggregate a field system. basin can of so projections with range be to they of they do connected get we producers acreages view are that, in the volumes then that the and give they them with believe they take and along an on to other work that

hydraulics takeaway design plant plants the the and field to and compression able their with the their then modeling they're forth then different that, processing within put all from in for plan their from do of so their And construction. and and all and basin of

So very I parties would of classify the strong together in basin. benefit both as this very relationship to and working the much

Asit Sen

where midstream on And surrounding the your I whether Thanks, head larger for at? But have or smaller I M&A, is wondering update on bolt-ons, thoughts get your just you. actually could update a deals Great strategy. question if Lance.

Lance A. Lauck

Yeah.

opportunities sort look at the basins look of as as well bolt-on basins. both to continue at smaller we So the both in trades in

the just of normal Wattenberg. to something Prairie just more course job those of the the longer that area control sort we that ability on have continue drive another the first and teams with smaller-sized to doing laterals think a as timing efficiency our of gain with of of in quarter to smaller an our that activity executed fact, development. trades is the are more outstanding that In of I we post here party would trade And of

Bayswater at opportunities, good recent we're in the deal As flow in from we're January, that definitely far and deal to are market a in as look the looking seeing bolt-on we deal continue and that. deals, we'll to flow and those the on closed similar the

are longer-term to teams that opportunities make our that inventory very sure to So focused like we continue out We build on our that. it's our for recognize company. that find to important

activities got we'll any in we've in good so sheet always that's focus we do process the that on to place our go having we and a something a as forward, of keen And do. continue balance

Asit Sen

Thanks. Appreciate the color.

Operator

Goldman Our next with question Nelson John Sachs. comes from

Barton R. Brookman

Hi, John.

John Nelson

on congratulations the and update. morning Good

Barton R. Brookman

you. Thank

John Nelson

was for, hoping I first, XX. clarification on I slide guess just a

I prepared are Wolfcamp missed think you laterals X it. the only and your just it was that longer to or in get the I remarks that XXX? A is Block But

Lance A. Lauck

Yeah.

is in X.X-mile but are A some some them are and Lance. going the B to in X-milers; be this wells includes John, the X-milers, equivalent, to going Wolfcamp So are of so Wolfcamp be inventory. that XXX inventory both Yeah, the

John Nelson

remind That's what helpful. on the working you And just are then us levels average? Kersey, could and interest Plains, Prairie at

Lance A. Lauck

interest the it's we're times. those It areas of going can more a as that approximately would working at vary to working think XX% that XX% when be on Wattenberg, I think XX% in But of across at average, sort interest in certain say It's three about look longer-term, we we range. bit. you little range.

R. Scott Meyers

of Prairie the area, bit area, lower. end definitely it the it's a little Kersey In higher would be the In in XXs. the

we'll swaps, interest some Prairie these raise average, we as the the smaller be of But area. able it. to working that in Lance So has execute

Lance A. Lauck

Right.

John Nelson

Plant DJ question. Basin really less and drop. Go then line be when the on expect see XX prior That's start debottlenecking pressures on And your the to midstream comments you back great. a you detailed of to commentary

from XQ. Discovery and announcements and we've bring processing some Outrigger also planning on think some capacity think XQ in seen I to I

DCP Just kind acreage, there to know but some is if alleviate could I those in pressures DCP system, you're curious that potentially if dedicated two a maybe of is sooner. the aware. operators of those your between link

Scott J. Reasoner

guys' now to I right would we Plant line of Plant now. project obviously easier Lance comment pressures pressures Plant say an the is is you complex that will Scott. we're putting will on come on these that got to not that Wattenberg more to but with we've get of when XX have and those down pressures, and But takes think this ends will down systems. to us when irrespective a there. critical XX the dealing with does lives other pressure. I plants line them help it, our respect key also ability only right add three will in very whatever, our John, XX bringing and is expect I All gas finish. on other but impact them those tell this high The plants, who pressure, It's on line call there, or XX. Lance up Again, have Plant that to in out line it off will because it definitely gas and making I you with I

type system. Aka it's an or a someone impact doesn't because if not So in gas and wells or through it's our definitely on Anadarko to DCP us else, that an has have go

Lance A. Lauck

I to for other Outrigger from is Yeah, and produce the and wells. processing, that it of have and to in thing the system gas gas gas our said, what for that off to and to get provides I'd that their only just those and systems improves mean, the basin with the where has being to is actually Discovery ability gas those those with it plants as other for producers projected that the are add provide Scott example, to systems plants, DCP on, ability

entire through is the helpful all So basin the the more and capacity area. for in plants basin producers in the

John Nelson

I understand.

there correctly, other if still benefit? potentially could system, see operators think I you have a multiple isn't you So the to to DCP access if even a direct if link I systems, heard

Lance A. Lauck

correct. That's

Scott J. Reasoner

Absolutely.

John Nelson

I'll again quarter. on. on hop the else let somebody Great. Congrats

Operator

SunTrust. Our comes Welles Fitzpatrick next with from question

Barton R. Brookman

Welles. Hey,

Welles Fitzpatrick

Hey, in good important something Btu of like and Kiowa in morning. the X.X of capacity to Latham looks in course you ever of psi Not this hopefully stuff Pierce to pressures like in but kind processing back between horse beat before worse basin. the I on a that the coming type you're and Was that O'Connor, that (XX:XX:XX) XXX sense it (XX:XX:XX), stuff, we've on get summer, coming to on been (XX:XX:XX) enough XXXX think coming basin, or XQ for seeing think and recently think on XQ capacity it into then do of in the and XQ talking the of we or all to not, foreseeable you whether between was question Latham future? the alleviate XQ is last dead that that I do the midstream Kiowa expansion, expansion, DCP mean, the the

Scott J. Reasoner

evaluate. It's a that question constantly trying to Welles, Yeah. we good is are Scott. this

to to don't line what's of that. the out they we're of ahead obviously of look still then At if I about some couple in projected comes comes that expecting before a going say love is a difficult let's stay higher feel a hopeful pressures way I come that our we're Plant that in because to time, pressures lot I'm Plant coming on going XXXX. good and them is XX heads. But we see pretty into say online, online expect Plant at what effort do. look and coming feel think our will the we see best it substantially time year are, where lower of impact things right that between we're contact XX time. a plan we contact when all a done plant to on. this in of this we're status We're volumes, think a think get we get relatively would Those When line that's same and XX for XXXX, of and peers short and got direct us, making and Plant would think in on of I sure heels that the to I for understand why back Plant right consistent XX something it. they're of lower it'll they're obviously to definite to is be planning it. we on we the period influence what go. year lot with to I this, line a be a XX months and at we'll happen short and the comes pressures think now real wrestling watching have the that the we DCP with I because has there to seeing after get says it kind happen to

Barton R. Brookman

is this Bart. Welles,

I I have multiple just really hydraulically with normal engineering gathering contractual how been and line these those of if good forecasts them, system on pressure little with a can because engineered know line based at levels. see are this add that this the they're me our obligations producers compression, of processing, and I the color are are extensive, on DCP, goal this the Let expansions. we which think back to a They looking our feel to they pipe, that have all discussions with in-field and includes giving components getting pressures and have three

you're back think, comments, XX. step and I to earlier line the any think resource to to past capacity XX. pace processing are as additional to in to give Scott's pick our reduction us get facilities see that going develop pressure with at to first go Plant us around long-term into XX, So potential discussions going for Plant Plant we fully I Hopefully capacity with going we're we that the then normal close

around that provides hopefully all clarity a that. So little

Welles Fitzpatrick

it everyone. I to pace year-over-year seems capacity wood, growing publics XX% mean, obviously so, basin No, it's knock it'll by on helpful. be XXXX, aren't like the that's additional and extremely behind XQ something that like at

list those you do about of presentation. guys IRR those rate locations some minimum are You where two the the talk have count? make plays and Can to it within hurdle into sort that the other in

Lance A. Lauck

the that slide of for and you our So that. is Welles, yellow look a areas, to at areas other outside then at Wattenberg what the look is areas and acreage those core XX three good core map on map XXX, you'll the if represented example, are by find the you'll see

out around primarily So are positions are in the what outside there. we build all as areas trade that some as in Delaware that acreage a stuff of are outside consolidate areas the wells we're the Basin. opportunity the of the the to Delaware in that say positions going forward, a as that also have the is that that There's that area but that's three in you the fourth constructed, is area Wattenberg XXX and of within kind that of about in we are us core areas. or those is the acreage constitutes those three other area Wattenberg, already do about and this trades other about areas we Southeast out that's XX where create big three And talking that that think do the there's and well areas is those for and about and in portion

Welles Fitzpatrick

those It's worse than locations any so it's Eastern acreage just unnamed the X Okay, middle other non-Block as not stuff, aren't necessarily maybe quite core. blocky? just Wattenberg or

Lance A. Lauck

That's correct.

Barton R. Brookman

Yeah.

or It's pursue not X-milers. of X.X-mile I based now, acquire we is think scattered us it In got for the prolific fact, on think some blocky it some of can to so how we've we about as and swap is. data. it Well as tactically extremely right just of some some so is that bolt-ons

Welles Fitzpatrick

politics. might be of momentum, kind hit gaining to guys Do to nod in might you Okay, the to seems on be one you how any industry from polling late updates Kennedy numbers and to have last as over the then be got chances to any her as on June? that, just about continue that privy one Polis thinking Salazar. to

Barton R. Brookman

we updates I that. think No, on don't have any

going be so now, going strong and think side the Democrat out. strong And And that really candidate. the Welles, interesting great where primaries an we've I candidates end thing Democrat as just they and on believe in made same it's viewed on the see to we're and here then has I they're you've Republican have very it last know the of into as few June goes. the she at strides the then July the obviously we got got heading both to Republican primary right of then the the month. June duke and some Xth to by side, candidates And candidate

to good feel spent we we've they're have to this get that. can hit the know now, election, more and and over leaders. think big a going platforms, with we about polling But going all expect candidates then in with that to got wire weeks their the the – some you some to so into anti-energy platform, November. and primary, But some six I know main here the through and not let see you're right accurate there out We time next we're get again, trends the they

Welles Fitzpatrick

much. Thanks Wonderful. so

Operator

maybe of Could (USA), more Our now? you and with Weil. detail appreciate guys. maybe the Park of in kind get what Scotia gas Howard right the Scotia added Delaware - into Inc. Carrere next midstream Hey. Carrere question out gas you color. side Capital on to negotiations go Good little comes morning, in from Park in a stage you're the basin on have that the the optionality I

Lance A. Lauck

Yeah.

various various if get So to focus get the area, locations markets. to when it's that Eagle take of Claw the the all Hub Delaware, plant several Waha that's we there off are think area on and you can area, pipes us Eastern to on Claw South we the of out basically tailgate about the of there's optionality of in the first then can sort that Hub, pipes that of Central it and Waha the our and Eagle also gas for coming multiple the

an that Capital gas we to market. So we've of lot is will in as concrete, longer-term on and find kind to we - kind XXXX there grow this have research all announcement, or you might Park as-needed believe, Delaware to of transportation be done basis? for continue something hoc, get Inc. it to the more our a the (USA), And Carrere Scotia again, is of ad able just in we agreements

Lance A. Lauck

and actively that gas by what about think – I there talks have is basin. add implied we something the that's continue for that's out to over pursuing that time to the additional we will to capacity slide Well of

and all. with We various various have and talked parties had discussions

forecast for and add we'll that we things to the our plans development out to volumes required as it's So markets. in are transportation see what Delaware the

Scotia do time as of layer to on ramp-up Carrere probably the we'll kind so continue And in Park basin. Inc. more - over we'll that we Capital that (USA), growth as

Okay.

or be an to So seem issue it a doesn't worry for you?

Lance A. Lauck

recognize key important, gas we've ongoing we doing been and We that in to will the work gas basin that parties that and a takeaway our recognize flow. ensure lines the very that are we of that we've growing but to No. recognize lot also got is various

Lance A. Lauck

all And talking cash do kind Great, is stream – oil. on about a these you it? was about are little thanks. capital $XX planning allocation I and flow cash think and you free you think obviously what How bit the budget predicated to XXXX, in growing all's of do that with

Barton R. Brookman

our and heading full balance frac We've far almost as Delaware in three. starting nice fleet three Wattenberg as I gotten operational now, and in one think fleet, balanced; is right year be next allocation, balanced. we're So with to really frac rigs perfectly point towards activity as would capital keep with pretty and one three rigs to is that

point. So starting our think that's I

expect up a can maybe in And things you think up have spend may increases. two then we Delaware maybe due some in capital bit similar, I XXXX bump cost little the probably little. to to in a capital the that Wattenberg be

frac improving, First our efficiency and are at we're getting our and better improving. foremost, as there, doing we're is drill times what better

we've think right for thing capital that's return, that could million, best do We'll and approach some pretty and very story opportunities. hope to company million anything, close around million our then a We the be build right rates be as predict we anticipate have Really inventory. if go as look with dividends Wattenberg we'll approach So on I also at we've about And Thank a earlier, that's market a for and we the into our appreciate would next Carrere we in could feel a Delaware, got mean, budget. cash and I in first cash Scotia we our Lance we next Great. would I flow. capital Then anywhere Park may where the with talked we look been consistently Inc. we XX/XX get additional now areas additional year. to in lower have I allocation. to set questions we'll think this, as you position what our mix and anticipate of at flow, at prices. far so a look from rigs strong in more million few will capital of we you. lot the $XXX that buybacks, But positive year I might (USA), and the drill that wells shareholders. priority year, at $XXX now and probably will can Obviously standpoint. the this from all three a time. $XXX you Capital efficiency spend our $XXX bolt-on acquisitions – -

Operator

Scialla Our next Stifel. question Mike from comes with

Michael Stephen Scialla

morning, guys. Good Yeah.

your wondering Just midstream. on

of is said, that what and be about X gathering there. the of think More your of point that You're do when in over you're will Block be terms of with you in to working Oryx and cost that of yourself. on will than buildout much timing XX% what and oil you gathered going on your the you how at that oil kind see Delaware, trucking completed pipe do savings midstream

Scott J. Reasoner

so we'll the fracked we're be guess point we'll turned really turning Particularly I be pipe probably, volumes the online there, yet, to to our up. with that We're connecting sometime pad continue the I've haven't wells said, will added that in system. not we be a in Mike. that'll We've Grizzly say, we've including July-August. excited. number I online of think pad and to got Grizzly yet oil quarter, be expecting and out at completed And that fourth pipe that, this the move started like

continue wells It's a we they're the that really here to be up to pipe We was to been you'll us and X. obviously where Something in It's a a Block then and increase. drive And prolific for right process an about for up key lot completion goes through oil as oil now, substantial. pipe on such add see significantly. And that to me depend there. necessity. the going the like we're seeing it that right They're option not feels timeframe that by But it'll year add goes. successful. feel how to wells additional volumes enough There's recently.

and utilizing it about to timeframe. it that quarter So a fourth we're in excited getting start getting chance online

Michael Stephen Scialla

the on savings idea Any putting cost versus on your oil pipe? trucking

Lance A. Lauck

Mike, we pipe on it. to details. could But it's than obviously stated trucking if don't it if plan a share go those fee the you're lower we've clearly

Scott J. Reasoner

Mike, premium it's a trucking I substantial those costs now, It's definitely look as right think savings barrel. I more on hear those and truck back being varying the vary per made think definitely you you a comments when consistent guys to I long-term. we at movement the water, at And appreciate multi-dollars around cost and over something

Michael Stephen Scialla

you Okay. you to mentioned on say where the Delaware. about too Anything Can more in on were, impairment And could those – you acres? leases the you if wanted how the see talk took that? many the

R. Scott Meyers

North close was to maybe, but acreage was we our Fortuna, and the as had sure. it we X,XXX in – Yeah, acres an well. little if give Central it. with Scott, about you It Fortuna but color was issue a that acres portion in a the called well our were to X,XXX our We there want Culberson of – having on

Scott J. Reasoner

just Yeah. recover. We downhole was a that some to up not problems well be ended economic it having had to and going

Barton R. Brookman

this in our none Mike, Just, inventory acreage. we stated that the of wells were XXX on

Michael Stephen Scialla

written-off? that being So drilling inventory on no impact with

Barton R. Brookman

That is correct.

Michael Stephen Scialla

Okay, and one. last

thoughts agreement DJ. Just the about that with bit quite did kind the of capacity oil excess side surprised actually that Any I decision? factors you of thought of an the behind was a Tallgrass. on there

Lance A. Lauck

what Mike, five-year today. Tallgrass competitive some in that receiving of that it's kind for from one, prices long-term, Number opportunity. of a come and us for the locks mind our couple think, I contract things standpoint into it we're are very

of go slice barrels in So a thought operated we range. that day like the over really let's mind, within We too, next just lock as gross years five for same what in ahead we in production and see years is our then Wattenberg. And get keep oil a of type that today. that five XX,XXX you a overall out

the It's So It's that Wattenberg side. to thought forward because and lock like in good put we just go the wanted from of price. from put our ahead and just it'd just pricing how X% of we just part production we slice be management our in future the in. to risk a

Barton R. Brookman

we are... Mike, I think

Michael Stephen Scialla

Bart. Go Sorry. ahead,

Barton R. Brookman

quick a add. just Yeah,

that around with also for equity-backed these we think across up all and earlier plants they small private inventory core discussion of DCP these when running I recognize substantial operators, couple of going anywhere the PUD to larger over get Wattenberg, year the and over and capacity, particularly the think and the is a then adds the to expanded what you're processing hopefully oil a we capacity, in of rig going midstream have or a basin $XX also next two shift holds is over sufficient if counts barrel. is encourage

this good move basin probably I So part recognize over is this tactical we on think constraints. have years limited a of rig midstream last our been the given in couple counts because

and team overall, I to looking cost So PDC I assurance on good years competitive all trying next the five think a out of think, done it. anticipate has job this for our and

it's I good for us. think So deal a

Michael Stephen Scialla

Thank it. That Got you. sense. makes

Operator

with from comes Johnson Brian next question Our Rice. Corales

Brian Corales

you then, either are do Good One, wells wells? are the answered how couple Block to all those all were completed Block of like morning, to area. think doing? completing And outside there you X look have guys. Most you have those in I Eastern expecting comment anything about two, have a or but been X

Scott J. Reasoner

is Scott. this Brian,

far stated gas little we X they of as we're And As they're still of Block a in them we've seeing got out to performance expected, quite Bart there. as the level GOR, as but comments, we got to good recover plenty production weren't oil and more at performing expecting his but them.

much in map, of we're So and and see across about area. the as some we're have. to area. about those But confirms what position the We're wells can more that we'll we're excited our we starting, thoughts of to starting point, a this wells from at excited about a operate our heck of acreage you it about we're get two and continue those lot learning

Brian Corales

Thank you. All right, guys.

Operator

next Huang Oliver with (sic)[TPH]. comes question CPH from Our

Oliver Huang

everyone. Morning,

Barton R. Brookman

Oliver. Hi,

Oliver Huang

guidance is closer agreement kind and or today? On of all that where deck the based off NYMEX to to is of $XX the for you XX% that oil guide to firm XX% is realizations, sales that strip

Lance A. Lauck

be current closer for It's Brent. WTI and where price today. to Both WTI, for for would the NYMEX that are strip markets so

Oliver Huang

to the the extent it, And shift or a about the or tariff around you're to oil Okay. a this for there kind able fixed is on with to in agreement differentials? is movement of talk potential prices cost

Lance A. Lauck

Yeah.

the XX% XX% XXXX with what percent the XXXX. wanted do So go we're what can't we provide the into and doing contract, through various but to to of and we the that's terms NYMEX is of summary

Oliver Huang

some all But how $XX-ish a for and from And question you color of answer. each acreage, to perfect. provided well you on the perspective, and Okay, the think look rig to that have the a know or longer-term efficiency second XXXX this guidance might just my a would count what balancing your optimally for Delaware needed Wattenberg? develop capital all could provide infrastructure question, right difficult you environment, and could be in be in

Barton R. Brookman

We balance them. year. operating we said our teams. flow-positive our fleets at to We I you as pace, balanced fleet That's let next with our we start releasing be rig we and against in think the try a consistent me And going – lengthy positive earlier, anticipate question Lance, as allocation kind look but of our having our that levels. flow then, at and obviously in look if want for bringing so to operating pace I capital we're you're to frac look frac a rigs overspend cash And at and jump cash not here. then

and as has the we look all look and formula Wattenberg counts then think part last we we've strength a resulted of obviously also substantial the at the growing we've the at because been capacity, time company get rig we we backed waited put for We expansions. over company, to years. us It's in got pace periods the to That few balance our And the growth and very drilling bucket after reason look we prefer that. turn consideration and sheet Then into year of the in at on teams substantially a that off then of rig consistent fortunate midstream give and I we year. routine. in

grow think is the overgrow do to company, the we we be the I okay? company pretty earlier, be we've and a we're the a next balance with growth XX% aggressive the careful. XX% got three-rig thing to that tick sheet. now, That's year. to able won't market think pace to production and three-rig And I right So operating significantly maintain as said your the in and

last day-in, on particularly presented Block area second the got just X in also and that. goal you now our right effort in So North don't got which results if I slide, think the – first. answer got results, any Lance Obviously every to doing north our an obviously in luxury the timeframe. operator But going we're some into the are now And And Central day-out. component steady we've we've company state of of to moving and amount as the to but your all at best is have incredible of question at we've cycle get of know understanding right is it side, now I think the at for drill to starts is We're look Delaware, now. right Eastern there's I'd day, in and right dedicate budget of – as wells his September-October Block pace the our X that kind to big look the to I incredible to a terrific.

the things I about. also to consideration other talked take We into all have just

to You Yeah. add want this? anything have you to else

Lance A. Lauck

down pricing forward a company I to hedging very competitive to continue commodity. have add to value-added side the all our to inventory and gets of where for on growth great working of we're driving mean for NAV the looking projecting a it's tactically summary. our takeaway No, sure the make our good opportunities side to the takeaway grow and surety it we balance sheet, to all watching the netback and and also time

together work things drive those to forward. all So value going

Oliver Huang

Appreciate Thanks. and again. color quarter the the on congrats

Barton R. Brookman

Thank you.

Lance A. Lauck

Thanks.

Operator

your from (USA), just the comes Grigel detail look go growth other the Inc. Macquarie Capital the offtake more sources with Lance, from scale on Does question would midstream Macquarie. need for with to to to next Our one Hi. agreement beyond Paul volume then there? you XXXX - Grigel or along Paul Permian.

Lance A. Lauck

look you committed we gives that the opportunity mean, XX you if at through And production, note years. back for our our volumes, volumes firm as Q, at have. Paul, look in have to on this continue the sales to it time. multiple fairly years our that the and those clearly, of if of I period on XXXX we're agreement grow are we Well to we're you steady XXXX, sort continue company's going throughout going at grow look that volumes of this to of

percent decline this and to Delaware flat commitment the based relatively this Delaware upon is of so of we that have agreement. we growth sales over have to our going the contract oil And time tied with firm a

Inc. think So the we it, this as be agreement those we are Capital Macquarie would outside look Midland XXXX. basis, the incremental Paul about as in market have at Grigel through Midland projected volumes in that sold the (USA), XXXX we of to forward, years - there especially

Okay, then to I guess that's changing there. helpful. And gas

you no directionally can market up Waha end there? circumstance for what exist in get offtake, there's in circumstance a it constraints options a or If that but such guys severe you where there's towards are the

Lance A. Lauck

do perspective to companies today points, gas very the really our we to Paul, really where the and our talking those markets various gas, going fact some to gas is for ensure we base get that it flows. on find large we believe that to the to takeaway sales are that ability we're from on Well we're have that

feel So plans our upon with market Macquarie (USA), Inc. development Paul from we're Grigel gas basin. and based how our for go we that to our - up perspective, positioned good that the well Capital stacks to

lot. Thanks a Okay.

Lance A. Lauck

Thanks, Paul.

Operator

with MacCurdy Heikkinen from comes question next Energy. Kevin Our

Kevin Moreland MacCurdy

you squeezing Morning. answer expecting that, should DJ Are third any to guys, in and second party maintenance operators XQ mentioned have Thank guys me expect XQ we growth? what given for for Other that? quarter. And the you, DJ in. of your

Scott J. Reasoner

occurs. maintenance and be got a I consistent of obviously you the And to the you think has – more where some fall be when to constructing that done. have connection tend work start a plant, you've spring

for facilities up of connection down new the added. to allow facilities to So some are taken those be put of and those back periodically

as to say to least over we're at Lance have to there. on a ordinary to should pad, going the less then direction various wouldn't that second rain the So the just freezes some expecting is quarter. and we've substantially got our put is XX%, about out on the quarters, happen with there XX-mile we here almost. production can we be through DJ the winter we've secondarily, level of goes described, little warming production be to going you have the up DCP we do the XX% to maintenance little our be you, going room quarter start to to provide thing I believe precise ordinary? maybe that weather but because it of And it of of that like I in a When numbers be a don't up is. speak what's expecting today Aka, a production I give that bit side it and there. But pad, just of out that although second and connected to system major got and It's the feels

when So with up And that running, the company. much as for obviously that then growth quarter, that bit volumes of associated with on DCP. the plant the second in there adding well; now and depending Delaware up third little gets Wattenberg to a quarter

of And fairly circumstances the so dynamic it we've got there at picture. and those when into different look pieces you overall obviously set playing a

Kevin Moreland MacCurdy

guys. Thanks. Great, That's helpful. very

Lance A. Lauck

Yeah.

Operator

next Securities. comes Michael from Our question with MUFG McAllister

Michael McAllister

The with Good this your end, be done being with than to out of what what hedge hedging? past on this because approach work where in like, different help done. for, you work me guys marketing morning, all your seen is Can we've book thinking you guys. all XXXX-XXXX stand the the might and guys

R. Scott Meyers

to leverage mean, of a our we From perspective, a our our use as at hedging kind commodity down, looking with really future, a coming I prices. protection obviously hedges turn against

so now production much think in where past part make have there we not We to the have could don't at give the to a down, would I of we're our the absolutely that time right in turn mix manage take we a to that hedged. be as really still be the the if businesses some for as we correction, you have ratio, future. to of for our significant costs expect able have not leverage the to they'll to adjustments of hedged manage, So want now future service but be time is with as might right those a providers cost company

look to a the little So future. we when that's bit

We oil at and of our we have started hedged in it XXXX. about XX% looking do have

are starting with at still strong XXXX We can see, look the of it's we our of have. economics, returns because rates to $XX. you It's as that very

some can continue of only but layering that we're we that going our to protect hedges our not we and and So look wells add value on think the the us opportunities some protect IRRs in that development. and that for

Michael McAllister

that's on you This you XX%-plus, And of to kind for things of of it XX% is like where year. kind helpful. that the of per Okay, always say, to think upside. times. to XX%, you being that it way as certain better would protection look go still a describing lack are the But feel guys approach depending is let's sense to kind a it, of to where trying I'm of of of XX%, at is for get what risk to, just than are – you way higher willing

R. Scott Meyers

this number down kind have. out, could for company more year times XX to If XX X.X especially a tick were X.X ratio leverage for next It's and the out, ratio XX That with hedged have being look definitely XX% range. size months some we our months we're of of exit scale. rate to leverage when at we traditionally exit coming rate is XX% year. down, a say would I be definitely with XX% we again times as a and I a

the go managing I as start down. think going we're to come quarters

production like or hedged is lower look consider But probably would be there it has something if XX% would changes to a of flow. that to we Now and little something sub a maybe sheet for than our protect future that. hedges the percentage even I the the that, cash increasing our in then definitely structure, balance been

Michael McAllister

Thank helpful. you. very That's

Operator

Our next question Goldman Sachs. comes from Nelson John with

Barton R. Brookman

Hey, John.

John Nelson

squeezing for Hi. back in. me Thanks

what throughput The just system comes August, and on remind true-up. then one will oil Just could Grizzly system? you gathering capacity X, the on when Block that in that July, be coming on is us pad initial overall for the

Scott J. Reasoner

our you the engineering throughput, accurate on for have I'd more from get to team to an information real give have don't I John. that. numbers number

the in connect some be system, a couple recently it's of As far coming it oil the that'll in and section pieces. here gathering as drilled that of wells on We've that'll we've on out Grizzly. got just weeks, through an same connected time, have the that impact quarter pipes. does for and pipe system the wells the to the scheduled the online fourth At The completed. there main not is next which Grizzly are are on already

of So oil move we more system the and take through middle directions as that we flexibility gives needed at different it's to the more us can also wells just that add the pipe away. that idea as

Barton R. Brookman

has do system forecast the for handle long-term the believe X our Block I our to development. John, But group midstream engineered

Scott J. Reasoner

Yes.

Barton R. Brookman

what that know far as don't is capacity. the I exact as rated number

Some capacity can and points that then easily will of – be be they will short-term obviously sales terminals the expanded. to have probably connected a that the

Scott J. Reasoner

Bart's correct. long-term There model. is a

Barton R. Brookman

Yeah.

John Nelson

again. Thanks. Okay. Congrats

Operator

to any further showing this to not at Brookman. like the turn time. I'm And Bart questions call I'd

Barton R. Brookman

and and of the just Thank ongoing your you, thank Kevin, everyone, today for your you, support company. time overall

Operator

this gentlemen, does and Ladies presentation. conclude today's

day. now disconnect wonderful a may and You have

Michael G. Edwards	PDC Energy, Inc.
Barton R. Brookman	PDC Energy, Inc.
R. Scott Meyers	PDC Energy, Inc.
Scott J. Reasoner	PDC Energy, Inc.
Lance A. Lauck	PDC Energy, Inc.
Asit Sen	Bank of America Merrill Lynch
John Nelson	Goldman Sachs & Co. LLC
Welles Fitzpatrick	SunTrust Robinson Humphrey, Inc.
Park Carrere	Scotia Capital (NYSE:USA), Inc.
Michael Stephen Scialla	Stifel, Nicolaus & Co., Inc.
Brian Corales	Johnson Rice & Co. LLC
Oliver Huang	Tudor, Pickering, Holt & Co. LLC
Paul Grigel	Macquarie Capital (USA), Inc.
Kevin Moreland MacCurdy	Heikkinen Energy Advisors LLC
Michael McAllister	MUFG Securities America, Inc.

PDC Energy (PDCE) 3 May 182018 Q1 Earnings call transcript