PDCE - Earnings call transcript Q3 2019

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Operator

Good day, ladies and gentlemen, and welcome to PDC Energy's Third Quarter 2019 Conference Call. [Operator Instructions].

As a reminder, this conference is being recorded. I would now like to introduce your host for today's conference, Mike Edwards, Senior Director of Investor Relations. Sir, please begin.

Michael Edwards

you. Thank and everyone, welcome. morning, Good

Chief the we and Operating Bart Meyers, President today, Lance On Officer; Lauck, Scott Chief have CEO; Reasoner, Executive Brookman, Scott call Vice Officer Financial and President;

that issued our and slide today. Yesterday afternoon, accompanies press remarks we our posted release a presentation

on pdce.com. We also available The Relations page and presentation press filed Investor release of our are XX-Q. the our website,

communications our the attention offer to Slide or X solicitation These and call non-solicitation vote presentation any to well your a to solicitation approval. not a offer forward-looking like to an as I'd that statements or securities, constitute to do information. of or of buy sell any an of

documents statement the and In may a includes the with transaction, that Securities be of or statement/prospectus will on filed a proposed website and proxy preliminary at obtained filed joint-proxy registration the free of PDC be and prospectus and other PDC Securities each constitutes Form of sec charge SEC’s by SRC also connection FRC company's joint gov. that is statement S-X at and with with Website This the PDCs. that Exchange SRC which the Commission PDC preliminary a Exchange Commission,

We will non-U.S. numbers financial today. present some GAAP

your also like those slides I'd presentation measures. financial find to that or of So you'll to attention call GAAP pending the of the non-U.S. reconciliation

started. get turn call our the can we I'll that, Bart With Brookman. over to CEO,

Barton Brookman

provide strong and has updates. free third generation expectations in A cash production key of will hello for several Today, with Mike, era and everyone. we begun. Thank the you, our quarter line PDC; was flow

sheet with the cost are flow SRC successful structure, cash ongoing free the capital improving sustain process to efficiency commitment Energy. integration and strength, balance Our

quarter highlights. get some me Let third

our $XXX our end of approximately and The Company is updated with capital of for range targeting $XXX on the at level million. $XX a low spend of million. The near or free our now spend is expectations investment line XXXX is capital cash in million. This generated guidance flow

in for line a from on XXXX barrels Production million quarter, Production range million guidance XX the million represents company's for the updated the equivalent. XX.X last improvement barrels XX with equivalent, our is of same year. of quarter is firmly to expectations, this for target and of oil oil XX%

the continue and we great making in basins. as the to both check, tremendous completion per are costs Scott We times are in progress the make particularly in turned later basins Delaware. XX. Operationally, line in company Drill we strides. in costs And records. in XX will call, are are wells on for our spud efficiencies setting improving, both Lifting cover well

the $X.X X.X From for in reaffirmed line our with and end perspective, ratio at base going at the we giving forward. were billion expectations. per liquidity and The a our SRC billion leverage the lifting costs combined forma borrowing merger ample company financial pro at $X.XX $X.X quarter BOE

as Overall, entered PDC’s very position is financial XXXX. strong, we

based outlook on free cash anticipating merger let metrics, reaffirm tier dollar free to flow. oil And in natural are $X.XX with Next, we $XXX our generating and cash $XX the million of top this rolled We me SRC forma out pro flow. gas. including for pricing, XXXX, commitment financial

we more goals. deck clarity meet the Slide can levers around to pull free provides the we X in ensure flow cash our

Let's start the on left.

Again, time XXXX for for second the in XXXX. This the our CapEx this building million $XXX year now serve lowered accomplishments our full will XXXX. key of Some as year. targeting CapEx is blocks we've for outlook is

moving well gas both XXXX to second cash half the flow to the and basins. cost in the volatility we natural for the and have year, fluctuating oil, be $XXX in of of flow the Then, cash is pro commodity the prices. second Free provided Recognizing per due during far markets, slide, we million liquids anticipated now the half gas SRC. experienced improvements free of to right forma impacts

we've quarters seen of this XXXX, last our The that our same program. of volatility demonstrates we price two adjust slide the plan. the will During flexibility optionality. our and impacts maintain operating in In XXXX, ability center capital we've to of this demonstrated

First adjust next the the year, and completions Wattenberg. pace DUC we of foremost can our in

as the reminder, will we Just with in basin. approximately DUCs a enter XXX XXXX Wattenberg

sustainable occur price our significant as if Be potential focused reducing Secondarily, contemplate on drilling flow pace we XXXX, we foreseeable these future. and in assured, for happens. strong, a correction free remain cash changes, the may

have We slide, even per ability in on and our completion improvement our a experienced drilling This free Since cost this our more Last confidence to meaningful important. in very we to us achieve XXXX. X% improvement and cash structure. cost the anticipate flow. well significant gives in merger, of in rollout the XX%

Again, in Scott will detail cover more this a few in moments.

on update an SRC Now the merger.

the deliver Lynn his be for through First, incredibly about future and great I'd like team the premiere to this with scale long combination We believe and Peterson PDC financial company the term our remain value to of and thank to SRC. excited being operator process. We will strength a such partners size, shareholders.

anticipated While due would of close deal the at to end federal well, are now regulatory a January which XXXX, expect this we we progressing close. approvals, originally

planning our is has items, of we G&A million to integration of list and full place, The in executing target. highlights. commitment assembled on integration lengthy $XX in achieve are key team processes been a savings action key Some a XXXX

from committee productivity. organizations, and we've We focused are the corporate on both integrating created top synergies and talent a focused on

We year. begun focus of with safety a costs. have begun competitive and operations of continued of optimization our forma budget, pro field our will announced on also be lifting and process which the next approved February the We've in

for new on integration, the IT companies, of date progressing systems the blending planned. the process for we Lastly, both strong anticipated integration a go-live components ERP including summary, January In maintain focus system. as is PDCs

I'll on turn with the Scott to Myers financials an And over company. for the call that, for this update

Scott Meyers

Bart. Thanks,

the months, work moment all spend team equally while as the hard are launch the thanking budget day-to-day important. a and Between and tasks. PDC for integrating important recognizing in our the system hard bank initial ERP very stretch want been of normal our months consolidated Before systems next work XXXX, early to has few couple covering a This your and the valued. the third the is upcoming new quarter, past the financials, I on redetermination for over incredibly work

the the quarter, XX% total sales offsetting realized Jumping for increase due to in XXXX, results in to the were to XX% pricing, compared decrease a XX% production. down

last sector, oil, the across case board, were weak the NGLs to of is across compared on gas, and quarter all pricing the year. third the As

XX% for oil, per Net working of XX% flow gas consist price with approximately $XX realized of NGLs from through increase respectively. of in capital. million and over BOE year-over-year just PDCs driven XX%, changes activities cash primarily the were year-over-year operating decreases and $XXX

see you'll the adjusted our flows in XXXX and As unchanged. reached quarter third second, relatively cash XXXX a of were

a metrics. Slide few XX, cover non to we'll U.S. GAAP Moving

can our reminder, these of losses slight metrics and found appendix. want a EBITDAX adjusted of we the the reconciliation we've As I had equipment. now call tweak this quickly a be property sales on to exclude in and calculation and to beginning quarter, out gains

in five quarters of the appendix. the also past reconciliation is A

in EBITDAX adjusted pricing compared increase of flat cash the derivatives, For decrease last and G&A essentially as in production, year, to production quarter in by flow costs. lower settlement increase and has were been offset adjusted

that repurchases metrics of on I a our shown improvement our as to the have begin share benefit would point stock shape. out that moment. More in take per

the XX, nice operating five terms your to In quarters. the past downward see of graph where of over cost the I to slide, on want trend on the the attention Slide right call can top you

than Our production and operating cost BOE tax. quarter of third associated compared Obviously of of is the much lower prices for to more of due per the third $X.XX quarter XX% improvement an this XXXX. the benefit to represents

down and LOE are as XX% our X% TGP and But well.

see a are than Scott $X BOE. basin cover of LOE target As Wattenberg the XXX at Delaware our pleased will per than less of per our driven we meet the bottom corporate few $X you LOE to and in less slides, will approximately by more very of by BOE slide. but

real was to variety where operations XX the force of a which improvements Look continue tried for an Shifting another well to differentiator in for show margins this low quarter. associated as cost the cost squeezed. which again, to to charges, run and G&A all we've a Once PDC, shareholder BOE includes world, rate overview G&A PDCs today's in of non-recurring continue settlements. a clearly activism, reduction $X.XX in as to of divestitures, continued believe, slide PDC per we with focus are our get all are as asset partnership a gives emphasizing

the merger severance G&A of come in Since quarter the costs. If on SRC. includes per with will the these year. That expenses recall, $X.XX range transaction variety lowered half of we of we've BOE our to and time, that announced you a the which that were incurred annual all first obviously with second

our forward on PDC remains moving the orange G&A by incredibly improvement expect and takeaways the this controllable the cost as half top exclude both If those Most you of XXXX rate seen midpoint slide the the year, the important second now anticipated we chart. run in constant costs one, to range. are fully our focused bar on on guidance in of updated reach shown on the

merger. of the our related second, merger, achieving goals a transaction approximately any excluding to XXXX the million and costs are of the related G&A of reaching synergies of SRC BOE And to per stated committed to we XX G&A $X

shows Finally sheet slide updated our balance XX liquidity. and

base As Bart our borrowing standalone PDC was fall reaffirmed mentioned, X.X redetermination. at at

of billion. X.X approved billion. backdrop focus level an at serves up balance of feel the and differentiator, billion X.X macro approved free will leverage combination the the commitment for the remain We sheet low liquidity, given X.X provides base forma at true Pro tightening XXXX, a has commitment Our in as borrowing SRC, to with financial strong that level a and cash been expecting ample incredibly markets. flow closing

free layup the quarter cash flow expect talk third of companies I million. when free XX approximately reach cash that generated with and fourth excess Given highlight PDC a all points, of cash expects free want in the the inflection around quarter million to back flow $XXX their and flow to in

more with of execute of as investments shareholders ability returning highlights of $XXX end the year than capital range guidance PDC's to an strength our These low to million and at the the year-to-date operator. figures and have cash combined full

an overview Look XXXX. more our over that With for of operations. to call Reasoner give I'll to common the Scott turn to

Scott Reasoner

start And I past quarter. by team your this for appreciation echoing to Scott. want the Thanks,

in basin below bring. team safely the that pending job XXXX while and assumption, a responsibilities a well job tremendous can merger executing done delivering budget XXXX all on outlook remaining focused Our noise each has amidst at our costs day-to-day

the In XXXX. of third the compared quarter XX% to we in In sequentially equivalent some turn-in-lines X day, our we last wells and quarter, an from quarter, represents Wattenberg by the approximately of compared XX the second startup plant and July per quarter to the to production production of as late of through of X dealt XXXX in day with spud modest equivalent oil per September. delayed decreased and barrels of year, the Wattenberg, while X% total terms XXX,XXX XX of a reduced oil count rig increase downtime parts barrels of unplanned XX wells.

a the the of throughout equivalent rigs cover had second detail I'll production barrels in day. per and to growing two spuds Delaware, oil in minutes. of couple while early XX,XXX XX% this In which July, turn-in-lines from were four quarter, all more in of and quarter four we operated

cover in heading for a the well costs budgeted a improvement a and as lateral improve represents but in per third more $XXXX more expectations this foot completion potential detail averaged cost in well, moment with we XXXX. this significant even into our to our from From facility I'll perspective, quarter. drilling

strong and XX. the Digging in see a LOE, little you our production each on deeper quarterly metric on can slide trends

In I terms to covered of results point production, quarter the your our third fourth I've want to quarter already expectations. attention but

to we Year. to expect Delaware, around in to volumes This X% the the quarter the we as first quarter compared quarter. XX% In the decline New continue our third through will likely completions fourth resume

quarter. third declines expect Delaware in production to overall the we Wattenberg, to to corporate quarter-over-quarter that flat of cover relatively leading the In growth

In to per per in $X.XX have earlier level to LOE, BOE are very happy of Scott alluded we the terms of and sub in basin Wattenberg, Delaware. the BOE $X

compared a From to looking little did in efficiency some On a our improving Slide XX of and XXXX. team great drill spend to highlighting and times the accomplishments program XXXX want XX, our XX% to Delaware time standpoint, an XXXX forward XXXX. in our job of by I

see improvements translates can graphs on drilling that in You at bottom page. lateral costs of per this as directly the the foot the to shown

pad Buckskin our North the area. Central our to turn-in-line was In limited third in quarter, activity our

strong are XX% oil and of nearly of thousand oil. these with As per peak barrels you can wells see, XXX average XX-day feet IPs equivalent

at $XXXX wells came foot. these per lateral in Importantly,

costs in length. that between very below average the $XXX,XXX $XXX,XXX have well For we're and lateral depending our proud quarter, on budget come

service both from the $X.X perspective. our $X maintain Early working these not our XXXX we to As efficiencies to only showing but year, XXXX we this began improving to with from budgeted gained providers for which we've determining equates time improvements budget, are well. potential and million costs indications to XX% and cost D&C per continue XX% million hope

and experienced on in entirely As the volumes. quarter the a our flat on the spend to early third area. XX oil of our spuds quarter XX few block slide impacts a resultant the XXXX turn-in-lines with XX, outlook parts to X assumes I want minutes in discussing fourth Shifting environment, and highlighting reminder, costs focused our year-over-year well specifically operating the pressures to gears and Wattenberg

at on comes up pressures chart spike of page, online. the grey is you productivity. see the in remain relationship is see part shown you quarter plant box, and improved until line line pressure As clear high early the the a XX bottom the third to which left can lower In can and the there of

In decrease as increasing time online. blue period, the the XX line before Plant volumes PDCs comes in line high conjunction the with same dark pressures in

at the comes high demonstrates a as see is periods this oil data quarter relationship When clearly pressure You increasing more in same even can of downtime. some the on unplanned production, GORs spikes. DCP basis again line as third relationship magnified pad-by-pad underwent to it

down XX thus from field. trend the pressures, aside decrease graph, The news the line a downward is through in pressures recent online line can November XXX far very has Even in that below you performance Plant and good PSI in the October downtime. levels seen clear parts namely see since to unplanned on of came certain

performance With see would uptick the in we quarter. continued to oil improvements, fourth expect in our an overall and

side hand reminder is that a gas On the the improvements infrastructure right of underway. of the are well slide,

by their is this or mid-year increase next capacity work of XX% All necessary current from above percent to by capacity. BCF DCP for to X.X year,

what to is on want study and give current what you it I CDPHE for the Last, overview means an PDC.

with of study The aware long are exposure gas to air feet, XXXX potential the hypothetical risks oil XXXX within to used or and the production data our As to you health all CDPHE development health with the and model XXXX XXXX predict sampling term an impacts no phases to well. associated of communities found operations.

term any However, scenarios adverse certain mission effects. health did worst short show case weather for potential

opportunity best agree Both the needed. best CDPHE operating at work or specific site is to conditions has model industry the and and measurement look and limitations specific the together current and and additional current BMPs. management of COGCC PDC to update management together, forward practices documentation the with

current will being to and of the distance While scrutinized the permits compared units gathered, within be feet. required XXXX will additional there is data be where are building BMPs feet updated XXXX

already PDC permits. have drilling our SRC by Additionally, plan XXXX covered approved both and

of approximately exit The pro DUCs. on to with with XXX of expect can two the activity basis existing for categorized this SRC. Permits. is a PDC, That DUCs our Approved XXX number closer is we result In next to XXXX forma years terms and be as combined

to the process, will that add we to a existing safe this COGCC continue allow be able permitting to will with in to work will Although we permits obtain work manner. believe that our operate to us

the like the that, for call operator With back over I'd to to Q&A. turn

Operator

you [Operator Thank Instructions].

[Indiscernible] the from line question of Your comes Collins. from Dave first

may You question. your ask

Unidentified Analyst

this I like sense the the in just start corporate guys. guess sequentially, maybe unchanged, a Form-XQ you're growing quarter. in and know curious your what mix hoping before for XQ? flat on does of a guiding BOE look just was what think maybe potentially I guide oil morning good could I with Hey, and can we clarification but remain means you

Barton Brookman

And wells PDC obviously happens, DCP equipment or a dependent that that is to well. on That see sure lowest continue on down get line where to we benefit. idea their we we're the that the in If see comes oil of runtime. should field, part where that, GOR has obviously wells are, the make our the particularly We've runs from is the of the that that a pressure our tremendous question existing that that's we'll and hoping northwest growth. got I'm the most with sorry amount

basis In we're for a oil headed, about year, is where terms looking overall at we're on really still basis. of an that what for we're talking XX% corporate range on the

Unidentified Analyst

laid a budget X.X. acquisition then, if Got it. await that And great more out in back about and as of you XXXX flat the guess, just you oil overall how but I into lower capacity on I of this you're bit in you kind the more realized point? both the be think as could with And of level year-over-year, think target you growth looking the service? program on budget cost up, some hit at -- the Thanks, also the at I weighted end this And do how high about did DCP time costs assuming in we you initial low follow thinking obviously you're Cheyenne the coming X.X Barton. efficiencies then connector as basins guess guess to

Barton Brookman

I of midpoint me budget. now middle we lower let lower a leaning based improvements And below have DUCs a cost opportunity to billion We of as still management the we an the start. here seeing. outlook. X.X careful right out Dave, But the the got I I of pro forma on right X.X we're on be in even we of that towards that, the through of rolled talked have we're go -- move Clearly, X.X end the on think to with opportunity that about we're our I the to end budgeting an the and think that even process. in because the

is, depending to February out our recognize my approved levers and think I for to pricing in pull roll some budget. I where expect those of again, referred in cases, can substantially. final in importantly, us we in Most it And move move all that this the on opening, number to

Unidentified Analyst

Understood. Thanks, Barton.

Operator

from of America from Merrill line Your Bank Sen comes question Lynch. Asit next the of

ask may question. You your

Asit Sen

morning, -- and up a given just guidance Thanks. oil following guys. you've cut, XXXX. Good on fairly precise On for the

you XXXX kind pressure we look as the move shifting How about could we oil perhaps as and Delaware issues, through beyond to speak XXXX? Given in of broadly cadence we cut, line it? think of should

Barton Brookman

at Yes, jump don't an I'll will run on talk have I’ll about alone bit at this hit now, talk a take then where then adding and this right else in now. PDC of somebody hit. look When running crews and and the We topics, right maybe about some at we're frac any a you SRC. and is we’re I don't

production turn-in-lines I quarter, expecting you turned to the When quarter had first that's not fourth many year. wells we've look. having the and the through think we're not through I fair a but really think in few we the So of dip in basically fourth the quarter, about early, and a won't think any rest online,

And stay those again such in slow and that fracking we wells capital have out that spend, capital completed, an fourth depending of down budget, on and and our but that planning end keeping on we year the start we're within We'll the could circumstances our to may the on then depending eye solid how first real the second in a that should at quickly bring we’ll quarter. flatten third again completion it on quarter, quarter, get quarter. the uplift

east the us at oil to it bit XX% oil still to that more upside talking going Block at of side that give look is year, part little terms on the as doing and terms a we the therefore lower, the work relative we're a XX% central in expect the we be where of the of bit in overall I for Delaware X there to the be that think through to gas. we're in and to of and turn-in-lines, range GOR

right just in that, a bit to us they're and pushes now, little also a range. first XX% little general that to and running add still bit the that still little side SRC we're Wattenberg but help the in quarter, oil a that I'll the that, they I that in earlier us a will just are then up think frac then idea bit, out flatten And and crew comfortable XX% than that then in

Asit Sen

the that about midst I’ll DUC we but exit your following And a Scott. on should you're budgeting just appreciate XXX, should we entering next a of but run Appreciate XXXX in year DUC. that process, down up I think with given should that, the the where -- how we on

Scott Meyers

final to gave year, throughout earlier. the budget alluded XXX the through mean, I working DUC but finished I as process, think Yes, DUC together that year. as Bart throughout our think, out. obviously of you'll I through be the budget, But see count comes DUC we're XX a we'll I count but We're completion XXXX the counts -- down definitely range that throughout our manage to think reducing haven't we still putting we

Asit Sen

the color. you. Thank Appreciate

Operator

of comes next Your from from the Welles SunTrust. Fitzpatrick question line

You your question. may ask

Welles Fitzpatrick

the rate? XXXX. guess DUCs I would to where into at it's would good I the you talk run do normal line. front be And the Hey, but mean, that flux, Can yearend know you on consider going the of you'll presumably mean, I of by you those XXXX. I have kind in going XXX, morning. what envision about the

Barton Brookman

at run this. I'll little make a

I with into running. minimum, XXX, about When to close look about, when have this year. going we we you Meyers that up a be to upper the and talking more XXX than probably down see depending drop is probably neighborhood think shrink I we using talk may three teens. as going kind a many of have But on need in some at you a was minimum, how the of of you somewhere rigs, the and rigs that's that's pretty and grow we're those

in they're drilling one we're to with separate crews. stay depends also that's of project as don't up to get against order that -- But those far The those but When something you of feels the It obviously want as a part complete point, rigs, minimum That rigs XX, between to each the right where room comfortable hundred well. XX, at me. XX in ahead But range. and of areas, are as running we're running. rigs figuring you the little those a completion in that the need more on out.

looked pull we XX the at it going So can beyond if you circumstances, another under at down ideal XXXX. something into XXXX, or end of XXXX, and

whether We of and wells. want process, haven't decided at that's we're sure, do still going That's budgeting make I to that to clear. our part looking XXXX.

Scott Meyers

working I reduce in Welles, now this considering and at we're with right the startup we're of if of DUC all to right and the mess think two this but now, And to Wattenberg correct our Wattenberg, like think count up services. of completion frac keep three Scott I A, the me up, to think, looking DCP But three key and I rigs. fleets some through their availability one I pace pressure projects, quarter frac fleets in line B and the equivalent we're drilling

So you frac as go kind we the cadence year. expect through that can of

Barton Brookman

Delaware as knowing sure, of in but of price one the for it year, both at them and start them up will Probably beginning the out well. again of without both

Welles Fitzpatrick

in were led wise early? Cliffs NGL pricing Okay. any volumes. Have then guys you that improvement has mentioned and Perfect, very that White seen, taking the to you basin And that in helpful. line on the now – yet too or fracks presentation that's

Lance Lauck

those of have Yes. in strength go Lance. price Welles, versus two we Mont anticipate both there Yes, that a it’s premium do pipes because convoys. and NGL to they pricing some Belvieu

be believe here beginning the NGL quarter. the third versus will some the out fourth in there We yes, of price in quarter, strengthening. So

Welles Fitzpatrick

thoughts ago. do then how white going kind it they put pretty I'm week and expectations? to And paper I just they up that I maybe Perfect. what get less like witness that the if kind they white Okay. it shapes seems just your I CDPHE that trying mean COGCC put of one guess and paper just posts innocuous, were they seems the could than positive not the out, that want to of in. out, even it one last your here. it's sneak to lead I versus said on a

Scott Reasoner

final Scott, Welles at obviously in and part feel at at Now know looking some through, somewhat probably one same somewhat this of again, recognized I've of actually as won't is we we we lot fairly a of very they you know that won't really know. really when that we're a there, time but that's have I are because to way, till say it's carefully. down written. when a the fairly But we the comes end put it expected. they're is read final That's Much group those this and -- rules the the team there's period rules. the of rules, but substantial

will alone we're tell working working what's make to more in importantly, there. we do industry can just though to us as can understand not with work with it's something it's that work that the well. you, what up I we in team ends sure if the it it to being doesn't, that hard tremendously the obviously, Our is Wattenberg. But COGCC with And

Welles Fitzpatrick

great. thank guys for That's And the you time.

Scott Reasoner

Thanks, Welles.

Operator

Your next comes [Operator question the Instructions] from Barclays. Lee of Thompson line from

ask You question. may your

William Thompson

have clear, and recent a lower XXXX I going You going price least savings guide, PDP on recent flow realization more into is million maybe the My sight of at versus of captured savings Delaware a free about would the one wells. XX fees DUC wells, to the think XXXX, what be of base and or just imply to likely cash some baked hundred, that X.X the million you an math in that was to hundred drilled offset the two at noted you efficient CapEx upside on once? line guide savings into to thousand XXXX

Scott Meyers

the it back on goes that think was that time earlier. to alluded XXXX with outlook that to in When the based we out to current I now, we're X.X X.X pricing what right No, Bart experienced alluded to. of looking we our Scott came when

We’re as that positive change through. really end range this pricing, we process, near we'll as even seeing we we go on assess in looking range that as range. level low below any to although pressure lead activity team, have a out there. that our anticipating some a That's we would through or That's the not of and maybe which at are downward go still that why that that

south. referring the those the were cadence what one the We make when But well rig That's would sure you're to free best to baked determine a older our have finish we're metrics. we pace, that target and XXXX. that is will flow when we And I at determine move say, those to not range to year costs, in. looking for just next think number our trying generate cash to

William Thompson

I on processing piggyback and roughly new free and the you on as progression the how then cash Can our line? X. capacity guide? Slide gas capacity guess is NGL you realization baseline you assume on what and gas price sensitivity flow remind us stats Okay, appreciate question, takeaway about think to the And I comes realization do Welles

Barton Brookman

that, in. chime start with and I'll you Lance I'll let

Clearly, was had NGLs of XX% we're XX% out are realizations. gas natural oil, those the on I came range XX% to XX% XX% think XXX. the realization when third we in realization XX% we with to for and pressure to the quarter, some in

that of Lance, at and coming relief you what some XXXX the look at the we already now? when third towards any prices and XXXX, now. we August, uptick something think last in we quarter, seeing now, can are and experienced right anticipate something in in or when – comments some below see outlook had other I on we we're right looking our between right the you some what

Lance Lauck

just this was you at month quarter, third we NGL the of look like low pricing. on I'd side, shoulder feel say when kind a

Just kind supply demand and of the NGLs. of

think here, both go so I more heating, get of utilization country propane onto winter We be get that'll as we helpful. things to the into Mont there'll us. the more across those positive be be for barrels Belvieu, for season will

think see be the a third and clearly look clearly the function It's NGLs quarter. as good strengthening we in again we realizations, improvement some past we spot the and demand of to the the So of different for XX% into but next supply had what we in see we presently. quarter that we're a going all third realization year, over

As go be lot free I back see kind that's could commodity And there's of of Or prices some the forward. of the differences why that's so the different you continue prices. some to something far continued the presented cash those one to us country for we'll been of the been of ranges gas the adjustments that's winter got of side, near-term going gas some upon monitor are flow a early, utilization positive, as on but various the areas seeing a that in calculations can gas and mean, and of slides just that's, what next there. strengthening you're sort else of on the year. we've based here of

William Thompson

Okay. color. helpful Thank you. That’s

Operator

Brookman. conference to back no showing further to Mr. would turn Bart time. the I'm questions this now like at I

Barton Brookman

and Sarah in. you, thank Thank for everyone you joining

we wrapping feel great progressing, about be closing, couldn't his thank as how Lynn more excited and the this and team, about up for mergers super we're we that, to you and Peterson Again, excited XXXX. year. outlook we're our Just

Operator

thank today's your gentlemen, you wonderful and have concludes for this And day. a participation, conference. Ladies and

You may all disconnect.

PDC Energy (PDCE) 7 Nov 192019 Q3 Earnings call transcript