PDCE - Earnings call transcript Q2 2022

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Operator

Good day, and thank you for standing by. Welcome to the PDC Energy Second Quarter 2022 Conference Call. At this time, all participants are in a listen-only mode. After the speakers’ presentation, there will be a question-and-answer session. [Operator Instructions] Please be advised that today's conference is being recorded. to Vandeford. conference like speaker to now Aaron today, would hand over the the I ahead. go Please

Aaron Vandeford

press presentation we night. our a Form Thank you, Vice also and morning, last presentation Senior and Chief reconciliations on and and are good I'll Officer, as at Vice Slide differ that reference CEO, found and have Lillo. the now may Yesterday the may call, call, release call Financial Dave be today, Bart the Brookman. President financial of President Investor we'll both of Relations Brookman; that, On Meyers; Executive will With filed forward-looking afternoon, results our X Scott statements. page Actual materially accompanies President, Operations, of Lauck; press than we and everyone. Lance GAAP turn release the and we On The available non-U.S. presentation. issued our the posted to our remarks that XX-Q over measures. www.pdce.com. on appropriate website those Bart appendix The CEO, today's forward-looking projected disclosures and statements today's in

Bart Brookman

Thank morning, you, everyone. Aaron, good and

with transaction highlights. Great quarter some in start Notably, the early closing me Let second May. Western

and thank to sincere a complete extend me Let employees all Great the who integrate scale you building transactions. PDC the Western and successfully helped highly accretive

quarter returns share shares the fixed cash a in XX% or X for million of $XXX annualized $XXX flow For flow million quarter, and free $XXX cash yield. generated in or the Shareholder million PDC million, dividends. buybacks free $XX million were (ph)

I XXX company CAP. cracked permits has has to turn-in-line the ago, team a calculate obtaining annualized as believe permits June I for made Colorado. just new schedule team days now the next XXX And the with on schedule I XX tremendous were the years. And momentum from with we company. in COGCC the process. received and code turn-in-line our announce progress tremendous mapped a the actually permits are by on and Once Wattenberg Emission on approved for to our methane regulatory on and for alone. in happy will XX% by am permit emissions have into shareholder The track return. has in our reduce quarter hand, determination four reduction target returns the projects Today, completeness CAP, gained in the Guanella later approximately PDC our Second support two quick DUCs to year. A is XX% mapped greenhouse regulatory be CAP Guanella the to goal gas ESG thank approved, the XXXX. approval this for want wells to teams emissions XX%. land year-over-year are update another

goals. I'm emission towards time in direct We for reduction also sight XXXX very our years thank line Texas have both a an Colorado, of continued and achieving PDC XXXX. at Colorado, safety standpoint, community operating to team to XXX it record. Texas no $X.X over the organizations by total And the give I million has side, districts, at lost injuries exceptional year-end. want $X already and four focus proud on of From stop nearly charities plans should wallet, with on X,XXX million And contributed across hours time volunteer the to for over employee safety. another with doesn't

me let address today, production second comments my out close shortfall. the quarter I As

more a outlook attention emerged. of for production quarter, our But strong. third they moment. unanticipated teams. a incredibly a the let second are me challenges you, remains and who and these will The assure and getting PDC detail I'll are These both are in give short-term correctable, engineering few the lot navigated second production. this on let Dave, we And As quarter impacting full

several building years, mid-third scale transaction returns company of quarter operating next drilling track, for for by begin Western for be on integrated investors. will are Great our programs anticipate capital delivering fully cost benefits are we should year-end. to by the strong Our substantial and the the mapped the projects fully well reflect

XXXX, our total outstanding of near anticipate commitment As year-end, up delivering having yield, XX% repurchased dividend we return a strong annual approximately through we ESG turn-in-line shareholder in our fulfilling story. special reduction return to XXXX, wrap post-dividend to XX% an mid-teens substantial our paid mapped plus our what permits emission and our free I achieve hand with cash shareholders, flow schedule and consider goals incredibly shares,

that, turn call the to comments. for operational I'm to with going So more over Dave Lillo

David Lillo

Bart. Thanks,

and to X. our the I to efforts moving on Western jumping Great thank asset. operational And their integration of that, Slide their team work the for Before hard to want highlights, with successful continued

or are since BOE an quarter, the second of the costs XXX,XXX provided X% of seeing at of approximately which diesel, such operations, XX,XXX or barrels the The our continued a This the end service XX.X million in increase was our we day. for million, as we services range. came X.X guidance high a chemicals. Overall, was on update production million production last invested and cost per at across and day. Total in items BOE approximately labor, approximately the May. During was we in you result $XXX pass-through time barrels steel quarter per oil pressure

of and Raindance of lower compounding third-party a temporary in number midstream in planned unplanned including operational as on gas XX-well systems timing guidance of a to than the Wattenberg pad and Field. production the timing result lift, constraints, Great Our of maintenance moving came short-term a Western

is around for PDC. first Western To to provide pad We also context note timing I we shut-ins like our that workover production on rigs our completion brought move to our online when activities. larger and in scale, be will wells variability and more to and as maintenance nearby And associated operations of had pad securing would Delaware quarterly sites, to this largest continue delays Great there production Raindance pad, of due work in the in the Basin. more are

increased of to wells lower In worked where production. -- part June of operation of gas of surface team As equipment on gas in appropriately currently Great GOR support wellheads. sections lift adjacent Wattenberg, has to design install be installed gas from production the an and to brought optimize July, downhole, tighter the fluid spacing expectation shut Initial core the temporarily pad the number gas accelerated move longer-term wells meeting wells Western to forecast. due over lift these the and are were requiring response Raindance of and these the and lift been back online lift normal the to the in production

this for drilling our second The been to XXXX In considered completion remaining move will work have we expect production our the in and We to of his wells October. operating that finished in activity have half Scott the full-time rig XXXX. planned gas shortly. guidance for remainder one Delaware, remarks lift efforts of address

in projects. rig rig due quarter, in inventory Basin the the securing has our tight we to the delays and quarter, at team able of secure of a Delaware the the the to were been experienced second service to dedicate ongoing secure third workover to additional rig We ultimately end another recently, market. workover During to an able

costs We to on focus Moving in equation. disciplined great cost the maintained side a managed the tight market. of remaining

Acquisition and G&A Great $X.XX per third was exclusive per was per BOE, costs associated $X.XX of LOE expense, $X.XX BOE Our for all-in Western quarter BOE. the with

to Now X. Slide moving

of June, the was and gas Colorado. Broe process by are for unanimous the securing granted PDC oil development additional the approval We permits and plans. In in Kenosha encouraged

and approximately third Combining Our XXX these permitting new second the provided approval additional the permits. company under process. two approvals

in turn-in-line the hand, year. inventory visibility the and from see slide, four of with Guanella current of shown later representative our activity is can and there at our the that approval good CAP DUCs the You have on development, expected we into and already next this this pace years permits

several Our inventory inventory additional turn-in-line also coming permit Wattenberg -- its expects the beyond development most Field. of the over inventory to extends locations well efficient OGDPs to XXXX. the expanding months, company Core our support And of the submit

The to Weld approximately process. acres the passed consolidated permitting in Area determination sit the where by Finally, milestone the the Guanella a and on XX XX,XXX on Comprehensive receiving XXX -- CAP Plant locations Guanella locations. and August rural the X, company update approximately give our I want permitting Slide On major approval and net an CAP in we in COGCC. Guanella from surface process in County completeness the covers X,

water on now produced oil, the CAP in an with every announce date turn electricity plan emissions materially noise alliance over hearing location. the but has technical move for phase on the determination XX-day I XXX% earlier enters hours, period. and our progress It December review the scheduled commission. highlighted I'm the efforts XXX continuous call. that within and to tentative With our will We comment passed, pleased boundary, Guanella to been of on in of XXXX, important not runway having that wells Meyers. ESG front gas that, Scott X, by reduce existing and last XXX% in vertical the to only the it PDC Bart the note extend our With the further XX power pipe also public And P&A a to it provides operations, and for completeness is does CAP

Scott Meyers

Thanks, Dave.

and the issues despite highlighted, half service the timing year relating Dave short-term of been has and to Bart availability. first events some maintenance solid operationally As the of crew

by providing deck. quarter, the financial data the a I will show update as on want in the later XX to it start we'll discussing brief some Before context Slide of provide on highlights of the to guidance slide

on now are BOE small detailed the and call, first we crew on of X% crew as operating $XXX barrels XX,XXX in the the to which results between and are of completion some XXX,XXX oil and that million. is For year, half the and XXX,XXX seeing to oil full day the current -- second expected expected to inflationary of XXX,XXX represents to pressures properties Based XX,XXX crude the early now the This to changes million be start XX,XXX in oil. to day, to to of October. year, mid-September to instead an second range our we expenses additional half be related be barrels crude in per expected investments expect be day, of BOE 'XX of Capital production. are expect approximate year $XXX to production production per in Dave the XX,XXX range earlier we gas XXX,XXX of per as natural of total

flow 'XX crude natural $X.XXX be What investment billion. community expected As this our results. quarterly away gas guidance shareholder of capital our programs properties spend in robust strong and these investors and highlighting our want between free $X.XXX investment the context I slides and from intact. next oil return is of I'll some and and take to are few cash in our billion that planned are points to

operations again price BOE, cash flow see you'll a of expenses $XX enjoyed XX, approximately We result in pre-hedge Moving realized per under BOE. operating a came Slide in to significant generation. per $X while

of per as flow after taking account higher free XX%, to a of of an if to associated This the generated post-dividend Great CapEx, share to dividend. special This cost our via of expected, $X.XX our flow million million yield all $X.XX allowed operations, the free $XXX and during equates million repurchases quarter. of XX% systematic free flow annualized net committed BOE and plus G&A, Our per peers. more Western cash to approximately not than We cash returning remain BOE, from cash most, us shareholders with E&P Acquisition. than of adjusted cash flow we was the into $XXX generate $XXX

and For the another form Of million bought shareholder out $XXX towards first that, back year, free the additional $XXX we returns. of million million million have flow. of regular $XX cash committed generated paid the $XXX of we shares dividends, in nearly nearly our of half

generate our in for full and we $XXX dividend. the repurchase For dividends return $XXX XX%-plus track flow. to are year, After million $X.X be for for target, on shareholder available free program cash anticipate the approximately we base paying share billion to million special accounting and

multiples. repurchasing the our are potentially more is this looking at price slide, as we now can Finally, year at see you as trading shares stock lower-than-expected on

special share on dividend more anticipated spend repurchases, our we As may year-end decrease.

holding. total returns the are However, still shareholder

like XX. additional few to highlight I'd to return Slide program. on Moving details our a shareholder

First, estimated 'XX annualized return our yield approximately shareholder is XX%.

to $X.XX Acquisition. As closing planned, Great the Western the quarterly dividend after we share per raised

another second $XXX shares strong As Again, the part third for million quarter X systematic quarter approximately be and of the we plans, the through repurchased in look program buyback or these our million at alone. for buyback share prices. PDC quarter opportunistic share to

track of share side and spent to first year, see potential accelerate are half and year a in total lower the billion, nearly goal Depending you on the the As dividend we in the through have to projected. slide, chart between the is meet $XXX dollars approximately per million special shares $X repurchased of our conditions market and repurchase right-hand of the that year on $X returned dividend the a inclusive number return of shareholder post-dividend to to end. special by this $X XX% activity

want we year. ratio end XX, sheet the the with intend Finally, I of debt on long-term in a where our to to billion attention quarter, draw the net Slide balance $X.X directionally At approximately today times. of and end quality the to leverage your of X.X and

leverage of to we with our having reducing the the ratio $X.X borrowings under of flow, further anticipate a times. to facility the year approximately addition shareholder debt allocate profile, our free exit return X.X In billion and and credit long-term opportunity cash

want is to turn XX-year over call to its base, the year returns successful in that disciplined call scale that, years remain come. operator. for have the We a history. asset our company Q&A, the to of to most Before while I'll developing approach material With our summarize that we I to capable poised highlighting and sustainable continuing cash of is to in our its PDC shareholder top-tier by financial flow build free of delivering move

Operator

Certainly. first And from will Instructions] Dingmann Neal question of [Operator come Truist. our

open. line Your is

Neal Dingmann

first is you. question all. Good Scott, morning, maybe for

there third Specifically, then restrictions? you potential And you'll I versus go bids? wondering, continue the mean you the could periods, just to could I'm I'm how talked heavily heavy besides other about into know how in authorization, this? a wondering blackout buyback. I that on balance And given are lead just quarter forward, be -- higher

Scott Meyers

mean Board question. $X.XX February billion Yeah. No, back by that's are buy to in the a great I this clearly, year. we of authorized

So a just our second it messaging. to do were $X.XX $X look every to day, that and of we've far look that that the quarter surface more are guiding little quarter. going We're what just share for to somewhere now leaning the for With little we previously I in in this per be of third pretty so year. we're bit a we us buyback similar to around barely we year. of approved than more Board and started And did opportunistic. probably to systematic buys be more that share scratching buyback, kind kind program this bit to half

threw It's the forward, on And increase but $X.XX consider think $X.XX. multiple step prices not as leaning we we this that. is a in if So the of again, a throughout major out continuing I the bit we'll in it range we still to little discount, year, see program. more the to go with repurchase

Neal Dingmann

timing a on Great of some just the points. prepared lift And remarks, gas bit more mentioned the issues lastly, just that Bart, Bart. then call you those issues you there.

to you to might pads need brought the be there and wanted you that the when lower at other Just GOR all are examine, also look that of anticipate much while kind other portfolio of sort that about increase? about might to pads now going talk talked size typical that's of lift? you you And sort pads, on forward, just could going mentioned talking how the pad you also

Bart Brookman

do this? Dave, want to you jump on

David Lillo

Yeah.

and between September. rig lot XX we jobs. at the I close. of moved typically were installing we we took May over them do had that had able some last April. SUA wells very the think When turned out of forward, instantaneously that on we watched that pad, there couldn't implied going team July Great We year gas those XX very, The and we complete Western online a and started that work Raindance in lift frac to X, a

we and wells to more a up, install finish have XX have on. we'll in October lift gas to move So back

think an have the So around built effect that third just implemented well that is this I point. we've where Besides will into be plans quarter, GOR the our from at over and for learning taken forecast as lower we've team that. and that areas recently our that,

Neal Dingmann

Okay. Thanks.

Bart Brookman

Neal. Hey,

operations. other Great deal Western up pad completions being This GW literally, was is when far wrapping took now, the right we over As no. as and just closed pads their

late tight evaluated had took be mandrels over teams our realized gas installed the to production And low pads. obviously biggest I how right in And Dave Dave, action wells. many again, is pads, got on one said, production, made proactive as could. a landowner no, time to other we So production And other -- the pad. complications to the the with in. quickly want lift on had of operating mid- as many done long-term we to in this team This have wells right window in. the need at with I stress this decision This And as they shut that take then just was XX big think get optimizing we May the to there we on is wells. the far the GOR. operations, as that. is don't like the But

Neal Dingmann

for Bart. additional Thanks details,

Operator

question our Sachs. from And come of will Umang Choudhary next Goldman

Umang Choudhary

thank just and first Hey. my is the questions. taking for Good impact. you question morning, My production on

be to for production of and the in color also cadence the near-term if we just production in impact quick It should will impact the exiting year be XQ? XXXX? how -- think probably you heading sure, of Just about all can terms give is a great

Scott Meyers

we're quarters, maybe higher. going say Yeah. next I third to look our the when would level slightly we quarter, for be at production, fairly two

you second wells completion coming our the of capabilities third be fact to We Wattenberg start crew we fourth, that in October, coming it get the end the frame. its we time online kind as of be in the fully opposite still off extra our Delaware but of some doing then the is November mid-September, the in production to in seeing and have going Raindance should in the have stronger that tails operational will those plus production

basins trajectory. at So of you level yes, overall, a different the look on between still little quarters, pretty two have When the strong have 'XX, you but bit going outlook. two a a we

year. On in the when quarters to we get the pretty said the pickup kind the X%. prior these going going in different But good the first next engineered probably because really to much very not a probably activity I had X% see for starts like a we really in look you're that through this second start and and kicking in than as it outlook, X%-ish We're we of line the in overall, range, think line, year X% quarter growth two more again on 'XX wells as rate Delaware did before. we back

Umang Choudhary

of I return thinking the thinking But the Awesome. at Thank more which in to returns. details capital leverage how was bit about you program? And post might sounds given year next repurchase appreciate you the is towards you. on capital And with allocate you year, $X.X about It percentage share price near end how next term. the the of in I free cash are would my the provided much falling a before. share flow question all little billion on a like you lean dividend

Scott Meyers

that's through That's emphasize plus. question. And And another program program, XX% we that to that its cycles happens great to when develop we different a so the really in wanted going PDC the to this wanted through goes work we all plus, history. the what designed

that could a don't we lean lot to a just doesn't that obviously of use debt-free as make So return. we I when effectively shareholder on lower, sense gets it more capital. want say in And leverage company would be

levels million you're that take million to to our you're $XXX get -- down total. $XXX debt to we going going the in today, size not to So are

to down 'XX. not and that there's So pay in 'XX more debt much

not I'm we And sure. -- again, But capital exact right the So the more we shareholders plan. number now. look to lower, gets comment on plus. ready as can return for to leverage us that's way to be XX% that's designed the for

in particular do year. rollout 'XX, to of a for So going finish 'XX next we're the February to budget number, roughly for the what

Umang Choudhary

Great. Appreciate the Thank details. you.

Operator

of Michael our Scialla come from next And will question Stifel.

line is Your open.

Michael Scialla

it have Hi. the matter? the want it's law, methane positive any on emissions, that industry for Act, to would a if what PDC everybody. or kind in that becomes company and fee emission impact I attached with to of Inflation see other that there's approved for or particular for aspects if might negative Good the be here, bad morning, the bill Reduction

Bart Brookman

on for bill. speculate the close Mike, and to trade a Nicki this Yeah. It's but the to eye impacts. what's game. think premature let keeping try me in literally trying me let I'm to understand even me early a still give associations just one. would it are answer I the our on in soft this, be

this, I we're got understand our to we've eye more can this, parts influence keeping the us trying So a and full at little AXPC press have on and and over time on court pieces give comment. Congress before but

Michael Scialla

a Understood. kind about not recession. just Okay. on months, to that plans the there's cash could of the for it's free build then, be going fairly next level looking there year flow And talked cash balance you in going with any over the on thought debt. wondering XX of forward? guess, Or balance? cash with I you like next a maybe much have what with comfortable high do are X there some Is pricing degree Scott, with market you to I'm to be

Scott Meyers

of if at hundred not would million mean we all. in of I had that couple a balance cash bother Yeah. sheet, me the

first pay to interest when the of you do think no have off is don't I our sense credit thing that. paying facility, to

the half by the of forecast. next or latter summer get to we'll on off XX we'll 'XX. based there. going 'XX do from facility bonds probably of take then standpoint, paid have we from that the that year go the have we're care look early our those of credit And address to to in So And

ability more 'XX all as the stacking million. we you'd million would that a cash the little to worried the facility be stuff first. But before on $XXX happen $XXX could the or think balance about bit 'XX, credit I pay materially not off early I'm of we yes, have on of probably have see So sheet. the towards that end

Michael Scialla

Thank you. it. Got

Operator

Arun of from next question come our will And JPMorgan. Jayaram

Your line is open.

Arun Jayaram

some general guys. us day think in items your Hey, maybe help the that Delaware about just wanted the was that. two by We on X as the outlook. of of to How Just oil get well versus driven decline the midstream some as thoughts in like -- Raindance a much issue? other MBoe

to think for trying about I Just single outlook implications your that I on updated we because XXXX And previous wondered the just growth. digits if guide. based low think was

Scott Meyers

Yeah.

think the fair I Raindance is pad oil. one a say a question. to I want our of little bit mean that's it more most XX%, oily I maybe pad. around was XX%

economic strong this real opportunities having why workover That's are optimal of want massive production, those you some our Delaware at when possible. as production get as to So wells we affected oil. have some new clean wells wells the that XX%-plus pad. look new of we're out you and in all into of its as to Also, really quick those

reductions lead hits, largest to more our two the the oily that's those your and you're in were a two which where production, here. it seeing So second of to unfortunately, -- where quarter, what tends percent

drill adds Western which on, oil what we're than had. a it. XX% The fantastic kind a that 'XX mean, consistently all when go adding you it's commodities. of little -- we're look again, in to the starting at looking wells. I when as But low far think As is are rate at look what for we growth kind again, more at to what we I that we're to bit Great of Delaware, traditionally X%

a X a but producers, months. those wells coming in We gas massive of couple of have Plant XX on higher more about they're just are And portion.

so out. that kind balance And of to has all

I look low would in term the -- other don't is next add for over long changing I be know, our think materially on years that XX% Bart? with Dave, see oil to to mix. five total I thing So PDC or there production. any to don't anything that I still don't three

Bart Brookman

outlined close the couple rebounded, the a Yes. the Midstream should Arun, I Delaware. that rigs three being and exceptionally downtime, -- midstream Dave The last partners of it explanation lift question, of we've blend project year. of things rigs, fair Working Raindance side, weeks running think then And steam of full on at got think an gave our a particularly more on it's well. we Delaware, than we've where is procurement I a the and our full the in good on Dave procured in Raindance, has as for with team and the kind the equal got you on workover correcting we're the look all and is at. balance workover -- labor ahead midstream anticipated here that.

on the million through we year company, think then to go And as the somewhere next $XXX the growth top back. you're levels in I quarter, So of around that three we'll the that balance year come level those for of fourth probably year. going then our see exit our and we'll have

right we But but projects, these it the exact in level. blend of high a don't a have of of numbers of kind of here the us front that's -- each three. So was

Arun Jayaram

Or off you half is of clarification. That's full just maybe that XXXX of Western? numbers? Are growth year fair. Scott, that include And obviously, cadence, thinking off a just, then the about just Great the X% would second

Scott Meyers

sorry. think, I'm is I of don't quarter X%, Great second the guidance now. will half X yield -- right first the guide Really our a run because in help? annual fourth rate, No, be Western Does have total yes. annual months or on that of larger the It we because

Arun Jayaram

on super buyback a helpful. then you more. lean that the bit mentioned you to guys And perhaps plan That's

magnitude million special? Any around buybacks. on $XXX targeting the this thoughts versus of some leading you're think Just order I of So get here that. trying to

Scott Meyers

today, year be why at to We our of the number that of the $XXX $XXX the hope that's we're first of about our thinking kind second saying million -- has sitting in the as of a $XXX right where we was would for million means did we would we're end mean I the now. We previous year, kind which of $XXX Yeah. half limit the limit be of did million were million more year. half lower upper before.

third it's great and think continue buying I quarter this it, to with at think to be quarter. multiple approved And are, pretty second With go the help look you the and can to they cap valuation where get that we time similar when hopefully, we a issues. so And this be shares. will

of in remainder year window. just buying shares when strong, day us the to and for open this leaning So we have the look be every

Arun Jayaram

lot. Great. Thanks a

Operator

of And question our will come Aucoin Austin next & Company. Rice from Johnson

open. line Your is

Austin Aucoin

Good Guanella for the taking next and congrats you CAP. in the questions Thank morning, Bart on and my step team.

Scott Meyers

Thank you.

Austin Aucoin

said tentative for back? to related push I that just could any one that Do December the opening set? see pretty hearing remarks, X. the date roadblocks question date potential CAP. have that Guanella In is is Or the you the scheduled you

David Lillo

worked and hard commission that page them all through they've wanted. oil given we've whole everything over submitted we've report a application. process, to gas this the So on them and X,XXX very We've along

the through went impact we analysis, wildlife, So all different communities. Working analysis. all working alternative with location with environmental the

I very we is in the to in think world have successful a on the this hearing it. be confidence going December, and all

Austin Aucoin

rigs when And I sure that I'm checking a that Arun's the you believe just double question asking he have Delaware. I properly. about the to to Delaware. all make color. follow-up secured the the appreciate workover was guess, the workover in in heard I as delays said I you

David Lillo

full-time Yes. project, constraints. which one we -- a rig. -- daylight out quarter to. on second devoted one time added due had was got We rig, we the were to able to a And we it and complicated labor started only to some devoted but secure We

to have projects of backlog now. XX right XX a about we So

cleanouts, lift and going have of has that installations, and They're those. valuable the some secured catching ahead top has very on projects We third full of are mostly and the rig priority we're team of they projects highlighted those us. went to type gas steam up a workover ahead

Austin Aucoin

from That’s all it. appreciate I me.

Operator

come And Huang. our next question will from Oliver

Your line open. is

Unidentified Participant

morning Good for thanks my and questions. taking

David Lillo

morning. Good Yeah.

Unidentified Participant

Just given the seen but revision year the back also one-off half today. of the and looks that outlook the in inflationary pressure fairly industry nature, across

on prior cash get reasonable to it's the expectation? free outlook a the a Just May confidence still sense around wanted being and XXXX to if achieve able for a flow for

Scott Meyers

I years. flow of that mean this I gone. mean I already growth outlook a mean from you've is Clearly, through a where very we free inflationary X% inflation We that next next a standpoint, about one. for season the numbers earnings production see have times. The Yeah. we've talked absolutely. several couple robust think cash have year. these seen tough we a

if production free steady bit prices a is a steady higher. from still going So rather of program. but little of put before, next your to be capital kept super what our it's a little on cash some robust were flow, year a we but the thinking and it might you damper Obviously, is

continue to the look So have several with very, to outlook favorable for the compared returns. shareholder production. next us to when be a able And peers very our years, our

Unidentified Participant

given that work seems us Okay. per are indicate many XXX That's color. just want just crude, but Wattenberg question, mix helpful make And there. ballpark, you're wells I Western? the from of able if of second was sounds some flowing remind just my updated in wells you how the to to that budget improvements sure in progress the complete Great could I the the getting into continued reasonable wondering kind to XXX XXXX for to in The

Scott Meyers

just Yeah. on. I'll jump I it's -- mean

might which a But numbers the come depends good. the it more you on XXX-ish and to length XX down crew half on Sometimes fair? depends helps. and of the be the length one Is year, to of the seems number many else? lot second tend wells And bit. to too anything of say how really the have a David, another we to we that I'd have wells. completion XX. crew, hopefully, is of the those That's there. our have why for longer that when gives are It wells, future,

David Lillo

XXX question wells, that to cadence the XXX now. probably with year, right at your answer this roughly, going we're to Yeah, we're turn-in-line

Unidentified Participant

Awesome. Well, thanks for the time guys.

Operator

Thank And next our from you. Pickering Partners. Kevin come question Energy MacCurdy will of

Kevin MacCurdy

so the buybacks. today Guys. commentary on Hey, Appreciate the far

your that And sorry doing and you little a limited free all cash the free flow for But is the your and yield the press from cash somehow of forego why flow Are dividend. bit. today, is XX% down special this? not point the around to given commit buybacks XQ stock

Scott Meyers

there's doing Yeah. can some some flow regulations. buyback a certain when amount of today. program, a mean only your buy there's I And you odd, you're

meet the in make have systematic we're a third little we the continue want share end to to And opportunity we're we're really But a able the again, we've program. So -- going lean sure share can bit, that I it's by in repurchases. bit the we'll and to that think look happy and to buybacks of But as given special share here we realistic it. buybacks. the But wanting go I us so here market think alone. I monitor to going that the of commitment shown favor move it's ourselves, shrinking return to that do not say slides, repurchases, year, do be have, for to We the the the on flow would to public don't to little even we more or to all flow don't I think quarter. use share shareholder to the cash free for our through a dollars

the the we'll I likely year. end think most a So towards have of special

Kevin MacCurdy

you Thank Great. for taking question. my

Operator

Brookman conference now turn remarks. I to closing would Bart for the like to

Bart Brookman

Latonya, you, thank Yeah. for us everyone, Thank and joining today. you,

Just you, assure terms press and court I production going of lot that now have a can on right arena. things rev. in good on Dave got full operating our We've in closing,

more come So there. to

getting the in the us team have of We back. confidence all

Operator

Thank concludes This for participating. conference today's call. you

You disconnect. may now

PDC Energy (PDCE) 5 Aug 222022 Q2 Earnings call transcript