PDCE - Earnings call transcript Q2 2021

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Operator

Good day, ladies and gentlemen, and welcome to the PDC Energy Second Quarter 2021 Earnings conference call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session. Instructions will follow at that time.

As a reminder, this call is being recorded. to Investor conference Relations. like host, to now Sourk, Kyle would turn over the your I

You begin, may sir.

Kyle Sourk

Vice Chief Thank presentation posted you, Senior afternoon, and today. Executive we President remarks call, Vice that we Lance and good Dave press morning. accompanies CEO, On President of issued Bart our Lillo. Meyers; our Officer, a Scott Financial today's Operations, have President, and Lauck; Yesterday Brookman; and release

to financial Slide on CEO, the also we disclosures and available We statements X GAAP presentation. our presentation Bart website, and on our appendix the The be Form over of will forward-looking call, that found turn Relations appropriate our The release press in Investor I'll www.pdce.com. With filed Brookman. XX-Q. both and today's reconciliations measures. of that, can non-US page are call the On reference

Bart Brookman

in cash returns, million capital of expectations; with of the top and highly PDC's operations Thank which are flow our end the million on tier of been be returned generation the hello company, approximately drilling PDC. $X.XX million, for company you, Kyle per a reduction as I truly and industry we steady of continue quarter financial to to currently, and and continues initiated has investment for have net $X.X billion. came barrels shares. for strengthen Lithium debt $XX than shareholder differentiate priority. BOE. at flow as shareholder the company's to for by to results. A debt to $XXX in tremendous company quarter, completion and the state total Year-to-date, repurchase year-end sheet see strong was production shareholders, and efficient both returned equivalent balance continue managed. and a better the return Leverage costs quarter free we XX.X we the in ratio believe delivering XXXX. anticipate times operating $XX line Fourth $XXX to cash you company's [ph] for will first remains for Costs well both continues million free the oil million $XXX of X.X quarter, quarter The expectations; accelerate. basins, era million and exceed results, everyone. And the the and dividend shareholders call, will and Throughout

of execution story billion. Now, a of $X.X target an grow and billion below cover for anticipate a reflection by through and free will reinvestment company's provides expect company. our This flow to XX% $X approximately spend the cash adjusted rate PDC. for outlook well pay flow simultaneously, billion, billion our assets improve XXXX, drive cash cash me share debt operations let capital return our our flow while approximately on of capability. Quite operations opportunity of the all X.X to down efficiency in through and leverage to control $X.X our the costs, over our shareholders, dividends we production XX% continue repurchases, the our $X year-end and ratio a from we We modestly the and quality robust free to of our to

update As today, my progress. you I me comments conclude PDC's ESG let on ongoing

for methane great which resources a and greenhouse of managing the intensity. devoted areas. a for of some early of environmental the company like to reduction I Today, And will X.X%, considerable strides many you XX% have is would to also flaring encourage in all highlights. XX% gas emissions The has I announce I goals PDC Our sustainability proud in percentage emissions. a report, am fall towards top-tier that to the approximately XXXX engineering Currently, quantifiable our achieved made the in industry. read, include and through I company we which reduction believe key detail has hit

to is goal in would of achieve and And XXXX, significant our business a for like single on today, to our field ongoing by commitments. celebrated basins years flaring in routine thank so Our just I from a three-plus Texas additionally, zero important lost-time focus our time prior safety. all Both without their acceleration injury. operations Colorado

a improvements of I'll and made employees pleased Lillo at am PDC progress the and on giving look the this the an that, have ongoing for company. ESG, the over we communities of set As governance environmental the for goals charitable emission and Dave we update and call PDC's the have welfare controls, turn extensive and and the the With our ever-evolving as operations. tremendous I company. with focus The on we to safety world

Dave Lillo

Bart. Thanks,

As excited you there's lot mentioned, to this about a be quarter.

instilling throughout of First and is put to training really safely We ability assets. our everybody these foremost operate a for prioritizes safety in that on so our kudos culture achievements. amount our to of the and effort each and emphasis tremendous organization, a

some and operations growth of terms solid $XXX invested we quarter, In compared for to production saw sequential the approximately the million first quarter.

of late the pads in expectations, back laterals just on we and had line in and Wattenberg, strong initial to release, below over and slight the performance capital that our press to We in on a ahead was of still are expectations in bit changes more oil, of In XX wells. some as in activity terms to turned Basin compared focus schedule, and SRLs the Delaware fewer quarter production third of turn-in total actually came wells from around said, into operation larger quarter. us due spud bit larger of second turn-in quarter Wattenberg quite to million resulted our led the the and our first acceleration That lines. the highlighted the a half Heading MRLs both there year, lines. and schedule. we the in shifted in non-op to $XX As

the turned be entire our the if on crew gains and to program for to in efficiency but early the doubled, it In quarter quarter not back drilling realizing per released in more Delaware, with line we've second lines for side, to get at the turn-in the excited completion quarter, rate the expect active year, than and We completion is So team we XXXX. drilling our the remain thanks been level. one year-to-date.

to provided the year the to middle months of prices pricing. expect is call wells we to six commodity rest the costs, Moving our these Bart much the huge good higher of and some million the It's we consistency concessions past with our where trickling next AFEs that on XRL. while more up our turn for slide, as expensive ago us are back line ago. year. cased And year for started in of in the pretty remainder steel, portion cost than diesel We've related expecting substantial. don't we The around at well the the were cost covered, in inflation see that we $X messages into XX% of to months. magnitude some Wattenberg, no the that to AFE, couple we're The expect is start to prices a around a increase service they the COVID. lower and are make also cost commodity to of news an were to anyone of this approximately In increase costs drilled the secret return to

blend a is now seeing you're costs. of past what current and So,

our is completion for in mentioned As I activity the Delaware, done year.

So, cost back go really pressure irrelevant much fall. until this of bid is out the we to

X% More importantly, or of below budgeted drilling and are $X.X well. now approximately $X.X of XRLs increasing million we've averaging to per million managed continue our and completion efficiencies costs

of our our XX% release changing On modifying drilling, by the drilling to time benefit to rig construction, relationship the to of side, improve with approximately helped seeing all have technology, rotary XX% our which spud to steerable last we're a year. really compared wellbore H&P and

and is blend our a completion, driver In of provide and progress utilizing natural utilizing fracs. slide permit to a savings during gears, water to fuel diesel our cost nine. update terms of gas XX% main on we reduced switching the high-level Switching XX% dual

a OGDP currently board state stage Just last scheduled commission completeness week, October date the hearing for our Spinney with the and Xth. through determination has passed

pleased period team through that in water is a been through docket such on in has process, to and Given COGCC the both PDC get everybody completeness the It effort we're with new great a on a ability fashion. us the side. and timely unchartered working state's and

Guanella OGDP as the continues work make and to the good strides CAP, green. Kenosha far team boxes As to turning yellow in

for of year submittal the around quarter application for goal the timeframe. Our and end in be Guanella late the third the Kenosha application will

this approved through in I County. Weld a our Scott XXX DUC XXXX. drilling it the current count and will our Kenosha that, Spinney locations would future turn over represent over to if Meyers. cover reminder, Guanella permit and With turn-in-lines With backlog As

Scott Meyers

Dave. Thanks

it place of improved sticking we're right-hand our cash capital well from investment in to top is the backdrop updated non-GAAP, the several at to significant compares compared year increase GAAP, include obviously previous our flow encourage cadence. generate will XX% slide Most range. cash to we've capital with cash midpoint Thus prior in the on appendix. commentary. free see of our reiterate The so given far on guidance, found of pricing a expected more importantly, due margin but of comments find reconciliation can forward-looking inflation improvements operating we $XXX slide my always quarterly To as million. million yields. and our projected all the free flow of I'd free the As an expect to a you side in as XX this flow one our free cost simply table with than We've some to X% and of half cash $XXX in as the the you clearly statements; shows components guidance benefited increase range increase to to flow

this increases debt returns can shareholder our also our you reduction Importantly, year. see to and projected

by which we of terms our our debt, by debt approximately means reduced will $X reach we XXXX. to have target million total billion year-end In in now $XXX expect

also Xx next quarter. end be ratio our trailing the by leverage to We expect than less of XX-month

to year. time and project million, than the we Approximately in more dividend, million quarterly to As we million than these this $XX at May, meaning as shareholder $XXX returns, of more far $XXX of from increasing $XXX base began increased repurchases this again should our targeting million share million. come year $XXX returns it

XXXX. and strong of PDC. production growth still non-op and our quarter of to narrowing per into Finally, schedule program an changes third range QX per BOE have completion sequential in growth to QX We which heading positions over our XX,XXX for continues in oil of Realistically, XXX,XXX and guidance XX,XXX us output project XX%, in the well terms XXX,XXX day. day resulted us strong to barrels be to approximately production,

on generating down focus cash paying free Our returns. flow, shareholder and debt our

balance sheet the XX. to Moving slide on

opportunity cash the approximately near look we're shareholder buyback is return approximately $XX base we'll now approximately pay our than projecting down We're third $XXX $X.X our the for on the at and payment inflection approaching. quickly repurchased in multiyear evident by billion the $X.XX can debt Look other and X debt In or order balance a billion. and fourth for million, of cash for we next the debt million as at second initiatives our increase represents have given to cumulative million is which management our our of balance slide $XX down through quarter of dividend a the to converts a you obviously our free $X and You when just of flow the debt excited our our liability per increase just the reach tactics various reduced debt, target, in value. settlement nearly our to over XXX,XXX point to Most of we returned quarter. to see three-year quarterly under have our net after-tax share now almost We're shareholders outlook. hopefully the program we we month. prepare of share half pace shares. about this pace dividend in In of enterprise bit the consider drastically times converts. quarter, more PDC capital Again, current future. This first the paying XX,

increasing increase years being $XXX XX% debt than also a than for $X return We're million it's cumulative the Importantly, billion. increased shareholder outlook our $XXX while cumulative targets or three CapEx and compared more to our more each reduction has prior only million.

that through month for least This $XX For it from It's important expect this And forms million. program Again, to over million. increased shareholder been year, in billion returns an hit a $XX $XXX years. returns our that share $X at debt, shareholder we to over to time call was XX start and XXXX commitment number very million exciting return you future a means an the the shareholder of our the our time through per I'll average of one this with PDC for note to achieve XX our with months, approximately I $XXX willingness to total It's tremendous next to employee had quarterly and million. buyback we it's targets, to prior period. thank June shareholder. through dividends over the With and team. to that, be to year turn close last Q&A. accelerated hope in other a consider call growth we've want

Operator

Downey first of Your line comes Instructions] [Operator of Citigroup. Brian question from the

Brian Downey

wanted to shareholder Maybe taking ask for on Thanks morning. Good my questions. Bart returns. Scott. or for I

$XX this shareholder you triple your month implied XXXX, plus year. return now plus from as pace mentioned almost XQ million aiming that for shareholder pace You're Scott, total billion-plus of XXXX. the of $XXX million per return mentioned there, through you $X

return As higher starts later about dividends best year, are pace once split repurchases you debt that and gear shareholder over the into you the term? kicking medium targets this between how hit thinking

Scott Meyers

capital to you're that pivot, to us hit We that once quite right at we the still shareholders. big we slower you out, going a believer $X billion right. that return share are down target and going want see start still now the a buyback. down a to see a to that come before downs the hit still great question. to there We're debt, going It's see you're on of bit, pay the again, pace hit of much debt Yeah. are really But inflection pivot. you're but or undervalued paying Yes, to

be to both I'd or We that going the our So buyback talked I is shareholder be our know growth the on the politics to going it. think the stock. we more substantial dividend, When you're Colorado. but in about a share -- say, we we it's see We these program. to approved, going growth talked our would get about in portion of permits say lift

that And good so shares PDC. time really until is we for buying think back a option

Brian Downey

increase walked one and XX% there. And mentioned some you of front. a mentioned on guidance, roughly well Great. due being baking offset XX%? do And efficiency What in in the drilling operations you the of and and capital some cost you cost able future completion that to Dave, terms the any that On in opportunities. costs through well efficiency drivers are potential expectation? to of maybe of you inflation anticipate

Dave Lillo

utilizing well leveraging extremely We're drilling right technology Delaware our drilling. steerables We're doing relationship in and completions new rotary now. H&P our with newer with

We we increases that's to in going lower our continue there offset costs that Delaware. and see cost to

day. and an to side, to drilling Wattenberg Wattenberg our We're with and completions. improvements XRL in we the four continue On very be days for averaging we effective continue every have

seeing directions So the try we're hoping right increases right these we're that cost now. that and in to offset our efficiencies move to some of will continue

Bart Brookman

question. this Difficulty] [Technical Brian,

so to the add was our by so guys hey and optimize more the to and spud-to-spud if the and of we're didn't more XX our stages and that tremendous pricing to we're to thing back couple X optimization the ways and to out Wattenberg that been not me years, you hard we proud appropriate know efficiencies to a find made it some off go having concessions pandemic, coming of efficient let through days to outlier to we per the our advancements but you it. little the continue a efficiencies announce an XX the pushing Let and right the our our are do of and last us efficiency drill This XX% efficiencies five, of asks to pandemic gave to with in, you and it's team. the extremely some that dialed comments ability look know that then $X.X we're squeeze out million seven maybe just X that and are was try development to we market feel a vendors and flavor. came know type that we've let program there's about XRL. day times We're lot I but some

we absolutely thing Delaware the and the and the efficiencies team did there think called and proud again field things that Dave achieved right have here. of we're the I And Wattenberg So in the exceptionally, some of they on going the out.

Brian Downey

Appreciate everyone. the Thanks color.

Operator

of Your Stifel. next the question Scialla Michael line comes of from

Michael Scialla

CAP moving OGDP guys. uncharted water forward about morning, talked and and good COGCC Hi, the your here. Dave, kind you moving of projects through

Have you're on I across process. thoughts you permitting And finish that projects the high-level these guess granted whole gives to the year? maybe what Just this going any get on been line permits the going forward? confidence

Dave Lillo

now out go is with working and with on and the I to plans. longer-term approval. very right towards I need along there. that current progress progress believe feel extensive getting them The made through have team's and policies we've adopted wants where those and the processes progress. for one slide we're my green We've currently the moving count Spinney we these that new scheduled mentioned. board team's current permit OGDPs. working and making think the more good really, have I hearing the tremendous frame I we're yellow been of working COGCC X two to I really regulations us being count has the a The one close very, oil on DUC that and our that the working as making we're development Right gas on October the time boxes these the that forward and to based new other we commission that change

the us with that are COGCC need kind we to the development so and for So they making the to these all that it was first closely through through it's process and very and done effectively the of go now sure outlined work plans the can right processes and all, move that time applications at continue as not us. worrying

Michael Scialla

Got it.

say, it COGCC than a the past? have Okay. to as guess, whole. And a these I they industry just function projects Is the of one-off down in as is permitting asking the has fair larger granting permits for rather slowed process it for

Dave Lillo

next and Spinney be the sites we'll facility take the different very three them and Yes which package one, through from move well learning the we one quicker. And one a we're that one well with of so is the that's XX learnings eight we apply we'll one the all at it. with second through better so. CAP, We're is over started from. I facility be The the which The first getting that and think can package, made process submitting will can XXX apply and to wells. that CAP, to process our Guanella is we our then up an

we've pleased so very the with and made the progress So the results far. team

Michael Scialla

about believe Very actually And Wattenberg good. and inflation you they can in you the to about some talked Bart offset most of them inflation talked with of seem Dave competitors efficiencies. your

I think stages -- Bart out inflation acknowledge of hard in half here. a about more pretty acknowledging thought your when you get day to XX% And higher. said. seem is, down I you in days drilling going four numbers I to squeeze guess, you guys and works law XX-plus so guess You that are second small you well costs be guess the of against as as to the

that of think that saw of benefits some anticipate year. to in would about early higher Is go the part fair that As you the XXXX you given this would that number

Dave Lillo

we half be year second coming costs kind new have a the line Right the will most the about in of quarter, where of wells old now costs spud turned ago. we together of and in

$X last prices. the year, that. production our We've the so drilling we're end. So the What we pretty advantage well year and thinking them procurement as until of casing as drill increase. and lower the with up the up we're the that it's to those to million year end of seeing a Along tied we're we with process, we much took far that be start next got the that's so from advantage going equipment steel of costs in to tied range all taking

you a in go get fourth too of we through don't or that that We will quarter. after you off too far pretty know to we can kick early formal don't lot on. pricing more start like the ahead it much process our that get rely because and bidding We then

fourth everybody costs little the in I our a and to said, quarter, we'll it's was understand like Bart So better. aware wanted don't us. think we just that really to But sure make

each everybody picking during the and to COVID concessions think given basins were off is and up it's come we'll But know fourth and bit. in really individual these of And and are factored everything I activity how see those little more the cement our levels starting out. quarter. industry commodity the off just in the costs a frac on that prices and based activity in steel

Scott Meyers

And a just have add that's press at $X.X we guidance look to in million $XXX and just the investment. three-year the our we aware for little everybody's When XXXX to to billion and release, you Dave get cumulative $XXX where it to XXXX million updated of range so bit of color. that

we into they So -- that have already factored is believe that guidance. the and cost increases that

Michael Scialla

been your neighborhood for consolidation to Bart lot one me. in That's good hear. here. a there's of Last

and feeling thoughts you given the on are activity pressure M&A seen Basin? in you've M&A the DJ activity, any Just front the do on to anything

Bart Brookman

sure, we're keeping I that's projects as Yeah. like. but I've eyes now. think company want at better getting getting feeling we always just to on I the along. open we stated We're we no, would a focused as not not And a execution obviously, as last as But And goal think different something scale, pressure. answer to bigger look our times we about opportunity make additional many tactically obviously, company. We, any part, think right if are we're the right focused the on as came

sheet things the our little focus flavor Lance add We're and is that cash free the laid happy to Meyers way were accretive So investors on The Mike the now always you on the be on said to this. that our financial execution, looking guys. commitment right balance priority projects in company and be here the I is we're consideration a in to if anything improve inventory out give is like basis for is would on balance flow terms. sheet basins. we and to company's him an both to a are our with accretive can going But I ask and

So you there? you're I Lance are out connected. think

Lance Lauck

Mike Yeah, Yeah. question. good

I only that our the flow both is thing just we the add other going additional these look Wattenberg space. at company. you our have teams this right to that And add continue the spacing for picking obviously, and especially forward here existing percent in cash that the that on model is, basins. in we with X-ish with business I'd we prices think will to to opportunities see free continue focus and acreage down-spacing project a the thing And to deliver can compounded I'd rate inventory we're of as targeting that sort growth if inventory that annual life stretch

that'll continue. So

other thing for time continue just as and is do to longer joining laterals; to The work with well well. as we'll trades. are to then that's continue very drill both efficient parties something acreage we'll Those over together always do

Michael Scialla

you Sounds good. Thank guys.

Bart Brookman

you. Thank

Operator

line from Goldman of Umang next Sachs. Your question comes the of Choudhary

Umang Choudhary

free question between returns. question. shareholder cash on Thank you taking your first flow and debt my reduction plans My allocation is for

cash dividends which year? share debt undervalued, are thoughts down or this for Given your strong to deploying your believe wanted targeting you're more paying versus on repurchase the get and you I below balance shares $X sheet towards your billion, you like mentioned

Scott Meyers

Yeah.

question. think I -- it's mean a it's fair I

us of current my one for I we at to company think for and the still back But for too The was balance goal high. company. flexibility to if was my shares price debt more ultimately time hit, reversal commodity is just been couldn't a our the able same the getting buy I because the would more fantastic. to transaction SRC debt burden have the love did number give there's pandemic when right I

overall the be we've again share heard have raised can target in really already and We're as successful a just getting So think this thrive commodity And interest is year. very you we any to buyback so really, I down our going important, program. active environment. price super

billion So more for but us look that you gear. returns really it get to to first us the see next $X into before debt for look put

Umang Choudhary

Got it. Really helpful.

guess three expected is to be on next plan thoughts I of production So given years Like reinvestment what to expected hedging. balance do question gas for to very and is the going level and to hedge I forward? your on strong, you is your be get my low sheet next your oil rate wanted

Scott Meyers

commodity. it can of again protect that's give to I always company. to here cash thing. we And with Yeah. for one the flows you But I'm number start the flows our cash

cash have flow we down. our migrating see slightly we a predicting. bit So do can that hedging how little with thought than you're to because process overall in have the we're time a out further we coming debt little going less is is our dividend year same probably And less we're hedges any at protect because individual bit that one

of small prices. a to to And the billion number than a able of be little a been when out but in perspective this in a a So I we little would of these unhedged a lock past, we're you some bit billion to duration. do $X.X longer $X.X and look maybe we're little say lock bit that time when volume us on degree locking we've in in these from some hedges, we just bit more see

overall program the to us us So past. in slightly the seen you've than look continue level lower for but

we way of see is that past the had it several not we will us level You done go now when to debt. debt XX% with XX% our have times in higher or levels the

Umang Choudhary

Thank Great. much. you so

Operator

comes of line the from of Your next Jayaram JPMorgan. Arun question

Arun Jayaram

good volumes gentlemen. you of us morning XQ. I wondering some if with you maybe could that could and progression I know think was trend the help XQ sequential in Yeah, how shifted XQ, non-op trajectory? on of us have terms pads of out a got little bit asking help maybe been kind could there XQ in you buy-siders timing. questions who that But

Scott Meyers

Yeah.

tried we release, But step-up we to quarter. in the some the outline think a again third see in press nice of this. I

going Dave our I I was mean, most standpoint, to June think XX% of took think schedule. due is I turn-in days. XX the in right, as about XX, line end towards on average overall in production our the X% an you -- range, And that XX turn the wells, the were wells from of higher. And oil be all the that's Delaware for to we though did said, turn to last month. has for if June even

obviously second growth well schedules were fourth well. to beginning quarter being from we and can some a the as quarter we to quarter it's XX% look see our move you is that said that now to quarter-over-quarter of prior. to had to to some to shorter be the And third part modest our fourth and help of what that, oiler, for in change going range. our expecting moving. go our And quarter we up, laterals to you'll from growth compared going the So Delaware then, cause what with to some And boost more so of XX% little oil having the Delaware, production, the

XX% what over yearly. think in release QX about, we QX I put the of the

to those those. about really going good flow. going numbers. generate about go the of feel you're lot help We feel we we good a this, So in quarter stair-step through cash the pretty to free When really see third

quarter. us million look $XXX over to so print well And next

Arun Jayaram

great. then, And the next just on cash great, quarter great, buyback. Free flow

of up the what know guys pace of kind maybe you step a returning off both bit? that, well buyback. have to know, via mentioned you coming as you debt the buyback the look buyback. a kind of kind XX(b)(X) at little the that with kind reduction stock as you with But I dealing Just cash on some I have plan. of thoughts supplement of do latitude the You could as

Scott Meyers

like open in We Yeah. have in go plan. and place, worry don't have every that to we so only to that windows, the just follow day we program like about

think, able sitting hit this are is with bit I'm to return may There a or be be steady guess open So where that look we'll few And state. the to we'll more. of we shares. more able just point debt And windows at $XXX I get total may little use to some are for reduction. not today, very tool. that confident a over potentially do a my million that, opportunities, I'm at when

are here, to think And executing so keep the shares buying we So going there plan. opportunities back. yeah, we're the some keep

Arun Jayaram

it over. I’ll Great. turn Thanks.

Scott Meyers

Thank you.

Operator

Your next line the of Truist. question comes from Donnes Bertrand of

Bertrand Donnes

then, as Good But it's think kind the level plug, or don't repurchases? of if I'm on cash an a in of a along maybe asset, kind repurchases you of preference, the to an morning internal good it repurchases maybe $X just out. have do NAV also investors Can of asset how side three-year bit. really maintain cap little talk -- to flow your that, here switch come some the would everybody market sticks maybe other the dead comes to at? free get And because probably asset here. purchase share beating sticky like is probably something you is opportunity or dividends kind going And it about over, to of return? if percent guys. debt it's is the provides it, a After back same does of repurchase that. you that I'm horse need assume looking on But replace or you I that, starts if you conjecturing Do what a highest billion, become you outlook, balance? repurchase the or

Scott Meyers

not but plans, there, be of paying debt bigger being again, various and do encompass Yeah. down be me reasonable. and a want able it still would that start A to very company, billion deals $X when execute on only to better that's these out we company, lot of questions able to is, says, let a Bart has

do to Now have on think it debt, to some We situation that's an re-rate that stock's agree our where down. we we're going we does. continue acquisition that undervalued. a share we've focus paying could repurchases. already Obviously, still we add with call going a to We little status. Again, a then the you, permit when really we the be talked think about but

So to now. attractive the right us share very buyback's

it's our doing, the get the might we understand, that know issue, to are we if David study answer the as I doing. dividend over we companies to now, too going little We're We're we is the they're what here. at if for done back when But to Right think buying or rewarding. shares and when next that tell. -- right the what that's other it. there's, as bit then, consider far situation year have to with time, And company. people market's As things I just the going early re-rate, a think why sit two, variable in we're it. a that permits I permit said, that, of different

So, lot the of program. in a have we faith

of a faith numbers. have lot We our in

Our excellent teams everyday. delivering value PDC are doing job for an

confident the very outlook. So we feel three-year in

Bertrand Donnes

the makes Absolutely. follow-up the inflation sense. And only topic. on That is, then, really

of or Some with the lock room, some vendors are companies to a you kind kind maybe worth talking. flexibility you larger Or cycle? of in where available, or order adjust in longer-term it, you of your is other is to bid wiggle contract Is that the can not fourth prefer there so it the quarter cycles? because can that market a not just have

Dave Lillo

we giving just one-year them, were same our for locked incentives the work a like to cost color in few rig us that them little drill a a that, last and on basically we Delaware, year, in at at with So just with around this with contract drilling faster.

going we're to really consistent. So that confident pretty is stay

for each was, for for different of top-notch several seen We working the XX it's process, best we companies. probably that bidding quotes try vendors, out to Our three pricing getting lock of there I type in And types -- XX that bid. with think topic. I've to go of processes, topics we one

how the a cost, next I variable see I to And that's lock just to what's going to to And And big going think from So activity playout. commodity commodity have year. I to we're the have prices think on, level. prices. can for type a in be think going we have what influence

formal we So as the in process kick see, off bidding have just our here we'll to fourth quarter.

Bertrand Donnes

That's perfect. Thanks guys.

Operator

now At Bart closing over to like turn this Brookman, time, to the call for I Mr. would remarks.

Bart Brookman

the it short. Alicia. Thank More I'll ongoing Great Yeah. support. you And as you for Thank quarter. everyone. thank always, come. to you, make

Operator

This call. today's conference concludes

now You disconnect. may

PDC Energy (PDCE) 8 Aug 212021 Q2 Earnings call transcript