Earnings call transcript Q3 2022

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Operator

Good day, and thank you for standing by. Welcome to the PDC Energy Third 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 conference like Vandeford. to now would hand over the Aaron I go Please ahead.

Aaron Vandeford

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

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

On today's the and be The and call, presentation. we both and forward-looking can of appendix will appropriate non-U.S. statements reference found reconciliations X measures. GAAP Slide that on financial disclosures

turn now Bart With our that, over call the I'll to CEO, Brookman.

Bart Brookman

solid accretive results from as of the all on the Thank thanks incredibly diligently for so operational, quarter I'd our well-positioned to comments success employees you, Western Aaron, many come. for reflect go sincere worked financial, first company contributions years with the to highly successful assured, today, is for our and the ongoing timely quarter Great like integration to who as full acquisition. A we ESG through and everyone. this a the company extend merger. and Be hello

third outstanding day. $XXX of the X.X million pivot per XXX,XXX $XXX This $XXX some shares million of production, of represents in flow quarter. million Let in flow stock. expectations dividend cash me Capital company Shareholder to including approximately BOE of expenditures quarterly with XX% repurchased returns of the the repurchase cash and for for Free highlights. yield. annualized free quarter in-line of our shares the base million, PDC our X.X%

to and these and more the costs total for moment. beat company, And company provide in we operational million. Dave $XXX the a Scott numbers X.X leverage detail reduced the our G&A around All this, will while lot for as ratio a another expectations. debt decreased

our highlights, great ESG financial and operational these strides. making program with Along is

are by by efforts, greenhouse our across reduce target continue to X,XXX gas charities. methane our including emissions This for thanks on outreach XX% PDC period campaign. our we XX the to My donating hours to XXXX volunteer tremendous emissions We community expand volunteer long and our past the employees events to succeeded over XX% over and all effort. sincere in this month employee with XXXX, the September,

quarter for be the Let for me thoughts be the share how cash financial looks repurchases We $X.XX approximately per up. should the my over billion flow anticipate the reflecting shares billion is company's success, fourth balance the year Western of Production $X in the with BOE fully XX% enduring returns should year Shareholder XXXX. on wrapping free G&A share synergies $X.X story outstanding early encouraging. full-year of the $X.XX of Great strong including sheet. company an incredibly PDC. of to the range, over merger

Colorado. clearly permit of while operating the multi-year inventory this, of projects continue some on by in delivering all In our the in DUC the projects country, and teams our mapped top State

our targets earlier, capital gas or goals meeting drilling methane are and emissions emission greenhouse exceeding our efficiency. optimization mentioned I location and As enhance to and continues ongoing reduction

quarter solid are company's safety, laterals completion and improvements front story our becoming always design common achieving deliver fourth mile here center, the setting well operational are success All-in-all, and company an priority. records. is X more is with poised real a these our outlook for and top X.X is in the promising in But extremely to pace we the actually how XXXX.

on Lillo our With for operations. an to the that, over call Dave going turn I'm update to

Dave Lillo

or oil for Slide XX XXX,XXX million approximately million per at Boe per or day, XX,XXX X. on the and barrels barrels Jumping Bart. Boe quarter approximately was in Thanks Total in production came day. X.X production

On our during with million right half the side investment which in-line guidance. quarter, cost equation, the was XXX the second approximately of invested we and

great maintained focus team market. costs on Our managing in a tight

Our all and expense G&A LOE inclusive $X.XX $X.XX cost was BOE approximately per per the BOE per Western for in of $X.XX totaled BOE associated quarter Great and the with acquisition.

timeline. earlier call, integrated of very team As the methodologies. fully team assets asset planned Bart integrate Western has has the highlighted as work pumper this operation And fully from schedules, an the to I'm in a drilling, with done the proud Great and aggressive the

XXX the drilling run one crew. approximately three completion million Field, In to Wattenberg we rigs invested and

wells. of For the spud the majority we quarter, XX turned in-line and wells XX

will second in completion end a that we the the of second XXXX. planned crew into as Towards operate September, brought of quarter

fourth as oil, LOE For at Delaware, which year the rig cost was per we the for in came one we activities averaged during Boe XX% of XXX,XXX Boe finished drilling in completions production of in our one second XX Wattenberg highlighting wells. approximately low full-time invested the turned In the approximately $X.XX level, of day the the and quarter. activity quarter, basin nature well at in-line operations. million maintained spudding the per quarter We the end three

day, Production worked was Boe the LOE XX% is the of $X.XX Delaware the quarter. oil. activity which averaged for reflective Basin in the basin over and came at increased per XX,XXX of Boe per in approximately during

and I time we field are advancements operations exciting want Slide highlight operations diving on of X. we a field. to more the the take into in little improve continually our some working Wattenberg Moving to as

and year, XX, laterals the Basin. in were X-mile the As completed long Niobrara DJ reach than in of last Codell formations fewer

laterals operations acreage, we reach operations industry forward Our basin. the appropriate work important tremendous accomplishment Though and three longer for for all possible. Wayne on are are trending in a the to is mile not Pad the toward stepping efficiencies where our with respect is and

stages And and to efficiencies, hours two XXX completed a the quarter. [ph] laterals stages of previous As third of XXX quarter, completed pumping. in month the Energy more Records] set longer the compared in continuous result and improved approximately the we XX% [Liberty we with

am results on we preliminary our the On the so encouraged have Pad, XX far by on the calls. seen the updating to look X-mile further forward Wayne laterals, wells and production I on market results

in mile highlight communities, the well XX can Western mile number laterals, will and a in-line our acquired per quarter. four-square Gus X.X Large impact we PBC efficiencies. mix Pad area pad and of that the our to surface completing Pad with while develop approximately Range Great wells a X.X of third first want that supports footprint I pad. we miles the where from This acreage turned during is began driving single reduce newly

development of Our team is modern these trends. at in forefront the PDC

Field. adds the This wells at cash come. in strip our our internal period areas than visibility core short company's our a X,XXX highlight payback On robust XX commodity current price, With payback more flows flows the a Slide on inventory, current long-term development approximately our X, durability XXX% Wattenberg returns. will rate we of of in assets of pricing. that for current generate deliver in to At of the our years cash support the months our all to and core average environment. volatile economics

To cash period our also October this on to update public concluded. returns, XXXX. quick could prices, soon put inventory shareholder X, the quarter comment at and available want wells base flow Guanella our I in-line projects. turn we on On the as as it for our CAP XX-day be give adding current today's to of in a perspective permitted

feedback we're forward hosting date. and Xth events community are to We December by receiving support the encouraged our the hearing outreach and look

process We also of in are permits by our additional Colorado. encouraged securing

our slide, into is economic developments You from assets On good long-term our can inventory. visibility to this see in-line there the for years representative turn of come.

it progress, unpermitted are our activity in of in Between and there. rural poised permitting our core concentrated today we are also time comes than process to County the that permitting DUCs, the of Prairie de-risk note permits, majority more area to the locations in confidence of begin locations. have where good materially permits we approved Weld And identified half when

Slide On stacked production of some the progress and and oily mix. pay highlight Delaware we our its X, Basin of

execution of Just X-mile are in our value team innovation DJ, Delaware IV. tests as first in on well. lateral is our as unlocking focusing currently discussed three drilling we We through Block and

seen X-mile capital moving the our have We about are by potential excited gains to and success in X.X-mile great laterals. laterals efficiency

testing on in of each where drilling then the moving drilling finally drilled of three-wells to of surface anticipate sections, sections. days before reducing costs. wells is each these the The the and also lateral we may the process team drilling result We batch and process of ultimately a the intermediate this drilling

spaced during down Additionally, in spaced approximately X.XXx XXX days. the have production tests XXXX, results up by our outperformed XXXX, first

I the all and that up XXXX lines turn-in out of design. nearly the utilize will XXXX point the half spaced of

second the returned on that today. to steady team have up quarter, the level a quarter. the of to quarter rig worked single maintenance backlog happy projects the during I'm projects successfully team During of built-up three the activity workover through that we in state with and catch utilized workover a backlog the working And Delaware has our report rigs to

activity rig be partial activity materially With XXXX drilling and which similar one levels crew, a we to are our continue going into operating full-time planning forward to respect level. will XXXX, completion to

With that, I will Scott to over Meyers. call turn the

Scott Meyers

Dave. Thank you,

and financial our return second free highlighted the execution our highlighted, has shareholder flow robust guidance. third quarter operationally been half into PDC, and a has As out and for in-line expectations Bart tremendous we solid quarter translated Dave with laid programs. This by with cash

want to moment Before take into for guidance. jumping I to a the quarter, our results reaffirm

range XXX,XXX production XX,XXX expect XXX,XXX be the to Boe for total per XX,XXX be range the oil fourth in day of to again per in day. to of We barrels to quarter the and

we to Boe day XX,XXX of full-year approximately range reaffirm expected of crude oil. be our which barrels production guidance XXX,XXX XX,XXX XXX,XXX the XXXX, For to to per is

expected previously of and of This continued in ultimately continued and capital highlighted, the spuds Dave number is of is $X.XXX a full-year increases at that the natural planned the properties operational approximately reported efficiencies Our are crude stages result cost the pressures. be as well high-end and XXXX our investments gas which billion, guidance as oil to range.

pre-hedged approximately XX, Boe. realized Boe, we price operating $X $XX came per expenses of while Moving a again under to in per Slide received

of per history. as XX% us quarterly flow approximately the after Our level per in adjusted the Western million the G&A of yield cash This allowed industry. $X.XX acquisition. in of expected the among we XXX of of in Boe equates taking free and flow flow operations cost account than cash more free annualized the PDC $X.XX cash associated cash from at million CapEx, Great XXX This to more XXX flow, highest generated Boe an million than into came inclusive generate with highest in to free

post-dividend program. third share through free million cash committed quarter buyback to Moving to annual to return systematic and Slide remain share highlight XX% In a XX, shareholders on quarterly approximately to I'd special and alone, details a We repurchases XXX needed. via flow dividend our returned few of like the shareholder returning we our dividend. if

X.X up the months and Of of year, flow. cash free million shares. first we've XXX bought of in regular million nine For – XX the worth generated the form billion dividends shares XXX have nearly of back that, of million paid we

are the a return paying target, flow. least generate on special anticipate we X.X accounting at For million repurchases, dividend, in base million XX% the and full-year, we track XXX be cash share and XXX shareholder billion for available After for a for to dividend. free to plus

today, our share our our to special return primary anticipated program we continue year-end dividend we As spend use repurchases, the more on tool share shareholder as repurchase may the in decrease. as

still are hold. total However, returns the

X and billion We year-end approximately are repurchases, dividend. special base on to track potential our dividends, through the return share

we outstanding first progress shares X.X shares. million the X.X XXX quarter our shares. share alone, on million] year, spent the In million X.X% buyback. repurchase to to we've the third million nine [ph] illustrate the Slide of or [XXX months the On of approximately Through repurchase XX, we invested

than prior quarter approximately million shares second PDC. Great count transaction. share for which the issuing million X quarter to strong quarter to less Again, ended be outstanding, We buyback the quarter shares another Western fourth the for XX in look is for the with share our the

balance sheet. on want to Slide our attention quality XX, draw I the your Finally, to of

by During was X.Xx, long-term and in XXX be leverage X.X ratio the approximately approximately year-end. which we our reduced billion quarter with quarter, million, the debt leverage at ratio is exiting a estimated to going we where debt of our

borrowing X.X from result as increased reserves the of redetermination, was billion In the a X our October, acquisition of Great semiannual the credit part from to of billion as Western. facility, base

overall our commitments to our continue we to we billion. XXXX, at As see reduce X.X maintained opportunities indebtedness in elected

company at build To to a we evolution call we summarize of time our continue to before in exciting move as Q&A, we a are scale. PDC's very

assets, a free all world-class delivering material We sustainable model years to cash developing cost come. balance into our and have for flow low healthy that structure visibility sheet long-term shareholder our returns of and a supports

over turn now will to I the the Q&A. for call operator

Operator

Huang Our Certainly. will TPH] first of Instructions] [Operator from [Oliver [ph]. question come

Unidentified Analyst

quarter everyone. Good taking and questions. morning, Congrats on a for solid thanks my

returns as undervalued, simple pace which shareholder to color if coming were you able the see main but versus better more seen accelerated as agree probably guessing the there the along be as it's good to shares through than any On we've front, expectations? would as we buyback expected, bit might year pace with, initial all drivers behind provide seeing moving hoping

Bart Brookman

pretty quarter again, and the looking and When earnings flow XX% in softness, hitting second that free cash program. in, Clearly we the annual we're an we're mean, bit little we share projecting the buyback. were I at Yes. of aggressive after target. look our

then it a right we And repurchases, get your because that. really value to closer to we to and going undervalued now, back. through to great our And special is is we the we buy still it to XX% goal expect I'd would something dividend. year-end, don't to and if share the shares see achieve similar Now, we're the add company do point as see

Unidentified Analyst

pad one also given all as size second Awesome. maybe of of Wattenberg, turned the just Pad, of it's to that kind kind first the Thanks. respect big kind well? And question, in-line just wanted the pad, key to, the the just range observations you size Gus of with in the focus to on a for the given the of how highlight area and have any is

Bart Brookman

Yes.

at on So, color I got We've point. We've completed expectations that. can this they're eight wells. online and a little the astronomically looking more give to first them up our

back had into to the to With the having clean we frac the had we with gas move December. on some some the pad, back move will probably we here in this will the up. into tubing upon up We immediately lift gas pad, XX additional schedule pad wells When and Raindance operations. install do wells issues lift out coming

this about point. encouraged online and all this wells really to the far pad So, turning so look forward at

Unidentified Analyst

the Thanks for color.

Operator

moment. One

of will Bertrand Our next come question from Truist. Donnes

line open is Bertrand. Your

Bertrand Donnes

so of would be but buyback but shareholder the has, [belabor] that I for Don't that the morning. the point, XXX at integral comfortable the special up catch million right to the to year? just and more kind or Good a higher just guess question to just, sounds want kind last I the do up use it [ph] with of program would quarter, pace maybe like to – of hitting going that picked more returns, of starting the back it wanted to thought or I stretch, dividend as my remaining you you're the the have see target purely level. part is, a become the mechanism is still end

Bart Brookman

point for I always would off be returns. at we It's delivering the, to looked to rounding, this the really share buyback for engine meant been be our say, main the our or in the feature top Yes. really the company

say quarter then no And felt our a that third with and movement our activity we program. in would there very we so, comfortable result had, as the material price during was the of that I

So, comfortable being we're that again to really shares able day. a many purchase

the couldn't say look some that's are the first look through just purchase would remember that go were And we time back, you it. if Great – I when we kind you Western at when So, going there of acquisition. we quarter, because

for again, the of another of be that, just us. buyback was strong quarter quarter leaned fourth share look it towards because half So, always second plan for the kind but to

Bertrand Donnes

transitioned asked special regular from a Sounds a I another E&P only of this, has becoming special. because slowly some good.

listened process? kind everything's it of point mean, a these then Is over due the to process, director a is like of there the CAP So vote I me. one something of out just the that stretch that agreed little at that. else if just you're I've size to couple upon. of a the was is guess, call a might Guanella And not CAP, moving seems even maybe point it multi-day the expecting or extensive to will, and I purely the to new

two if a that just two CAP it understand I there days trying is So, two the [indiscernible]? take could reason or was to days past go or of days it might to

Bart Brookman

date So, hearing CAP explanation day have hearing and reason [our CAP] the through we take. sure long December The go how is locations, this, we how the put wells. [ph], X. we're as XXX for Guanella not next of It's consists scheduled tentative is long XXXX a the we will the individual site, for each CAP the and

second why that able hoping that COGCC the with going that's with point. that conduct tentative and the high we put one had in that the We're So, this all at with we've with a to well. involvement municipalities as that be to day for day get local we're approved confidence

Bertrand Donnes

great. is XQ X% housekeeping press just wanted see ask That's of this was a question. where but kind And I out you, don't think over and else to of I were at volume if that oil there's growth, and going guys in hoped XQ gas I to then releases. the Delaware? the Wattenberg anyone That's whether some then all versus Boe still to volume? or you sort and with applies and you. maybe on got. color applies, of Thank oil total And just that

Bart Brookman

through December. our weeks I going several we're Yes. into in as board next we budgeting mean, our go still process through the meeting finalizing

altered. being to when the think not half were that still cognizant put premature, understood our a when we we were XXXX about, we but it's very that expectations I really market second little again, guide, think sure So, make our out

our originally expected we it be see So to X% that's don't material, growth X% the materially to changing. X% and was came our the XXXX where plan out because our with

I'd things year, that X% XX make lumpier. some say Dave make closer other that alluded look even guidance, turning still plans in a XXXX bit pads still now for finalizing have you're it the on to half XXXX, production the of we're for little are second So, at more of our wells big some to few it's range it your if a the time, you can these challenging when the that right at guidance but that to a and we

still So, mix, it some when in. let or going that give in company. X% activity you as Again, the be quarter-to-quarter, us of outlook. schedule down go and from And X% kicking we'll we're to as could finalize up far our more XX%-ish, kind is Delaware oil really

So, we'll guidance upcoming would be the some other but in that our than [ph] calls. giving budgeting or process to [X% I the we second got you X% on be more in half that first, more still said expect to flavor that on finish X%] year. the towards have a We of just earlier

Dave Lillo

in plans And, now? Delaware we Scott, growth do DJ, basins right both and have

Scott Meyers

Yes, we do. we do. Yes,

Bertrand Donnes

Appreciate the color. Thanks guys.

Operator

One Umang question moment. Goldman from Choudhary next Sachs. comes And our of

Your line is open.

Umang Choudhary

thoughts good help Hi, on think CapEx question, My PADs? towards next through has expectations also get inflation thank benefit Can you and laterals you the wanted the this longer on bigger think – us your morning. year. first to and a shift

Bart Brookman

want start? Dave, you to do

Dave Lillo

think I Yes, so.

we're the it see looks about range the X,XXX halfway X% chemical like that to probably at range So, next going now, I profit our in the really and the year. guided million. steel now another right fuel on to guidance right our into looking was that of the we're and bidding as last in It's through the that. and We're to think X,XXX and side million pass-through call, costs we're process we XXXX. to high probably still the in And increase

on we'll continue bidding finalize looks at a budget, talk able like little we that XXXX So, process more what and as to be point. our to our

Bart Brookman

two is, the had And year. we just things other million acquisition, about to that months for key I you when for XXX have the this it of one remember only add XXXX. million CapEx eight Great to you're would thinking Western because Number XXX

is as So, X% saying, that I let's starting we're Dave additional where kind cost from now. of million would that to XXX then as And take X.XXX add the point. your is

full-year, lot the than the we it's some to the comparing to we're be more the of were to a spending spent XX% the going currently year year-over-year really less what fourth in because you're probably when quarter. dollars earlier So, obviously XX% in

a bit provide through So, color hopefully that we're as will more for you little this. going

activity the and year-over-year, the over to in spend Great expect and target I'd preliminary during whole months. the detail XX%, XX% So, close Western spend in growth with say a few that year annualized clearly the now for including more the happened for come to get our and about you'll

Umang Choudhary

I give to then you And That's on Spring guess the Delaware thoughts test second Bone an great color. you. question, it us And initial impacts as my result? Thank update then any on can second your inventory? how

Dave Lillo

Yes.

little good well results in drilled [ph]. from this drilling. on east. [frac’d that. bit exploratory, to on was Springs, was I Bone is we in there So, north, the getting into permitting which and really several effort [Greenwich] we We it to to can a as this year the a good, ran saw Delaware our the were [ph], This model of Geological looked really really expand complex an and one April] inventory zone We faulting although expand an operators, January some and Second the sand. in going was

at We went volumes. high well HXS completed high normally a water ahead the and levels and

this from trying the not areas. this decided learned other to taking and really could mitigate to what going back if It to apply well teams that condemn it for the after and zone, So, was be commercial. we didn't we see we short-term, going

at So, this that's we're kind point. of where

Bart Brookman

And as not we Bone in far inventory. impacts, the did Second that as have our Dave, basin, inventory

reduce opportunities. not an add So, but it expiration our this was to a single truly test in inventory, effort did

Umang Choudhary

great. guess there. follow-up quick do can I if a That's I And

Spring further in C out zone results, bolt-on pertains Delaware, approaching increase you you it? your opportunities, and the Bone inventory next you year? some through testing the can at Are looking you as which think inventory to Wolfcamp doing the test the are as second in your are Given how region? that it further And

Lance Lauck

This question. Lance. Hey, is good

we're Let you thinking how updates just a about on couple – of in Delaware. give inventory our me

how at, from yes, mile with we that. First and let's X-mile and call sort offset section operators look what blocking efficiency we drill foremost, and a combine it go can take example, mile of do a one our we and with for together and tackling and gain

been and example able that. of we an ongoing drill a that's that So, over had and also where party plan, up exploration based was development to, lease there's on were coming a get and on our

us that as incrementally So added well. to

I about have think as commodities, our inventory, last when think you keep about we lot in year lower talked mind, the comes prices currently a etcetera. it the from were for inventory is

a So, and other from of that to a as, producing. where we operators offsetting have be intervals increase test due drilled sit price sort But there's should XXXX today, to that looking an we're other of in this there starter. then just commodity already couple

will so, the we And in and us ourselves for in believe schedule that to adding position a to going inventory XXXX. we're couple be tests of offset continue be a to monitor activity

they've doing, of build So, a we're a for lot team Delaware the to thankful different our of work continue things that and inventory work the really good grow lot to and and done there. that just

Umang Choudhary

Thank color. you. Great

Operator

come Markets. Capital One Rezvan And our of will from Tim next KeyBanc moment. question

is open. line Your

Tim Rezvan

wanted on Hey, good for everybody. I the circle program. taking to repurchase question. Thanks morning my back

but else rally. all little We quarter. date, undervalued almost they're be here. a sharply equal quarter the they're a You've undervalued, noticed I to pretty up XX% are buyback mentioned given know, you shares strong should less think XQ

the good [indiscernible] quarter of on third but capital did into through XXXX, you going just I returns that and curious So, of based the you're Are a continue intensity curious it really kind seeing job of opportunistic? the you shares buybacks well. this more just if to it perform kind liquidity quarter, I'm or in how think forward? is see

Scott Meyers

– Yes. because CAP I will we're we a we and where performance us I'd a the is any positive. be back there that getting continued think Guanella off love for headlines that, have mean, to share bit our we I before but that little has going I we still to think be a with shares mean, some to to approved can of yet. out price to think point don't point get perform catalyst getting

delivering look a repurchase Again, where we still do, capital quarter-after-quarter the to share with are the our think great that use multiples at way return cash free I they as program. we can flow our still

into another to So, seeing distinguishing there's XXXX. that it, starts form look we I would say If start itself. for continue really us

be continue we will consider the performance we're believers that but and the share and we share considered to always well. other We as price would continues just ideas, for right buyback hope in and now, big look

that should sheer that there’s bought be of the Part driven by fact we have shares shares outstanding. and less

Bart said, of than less could XX end shares million you around with be or earlier, the As we XX the our know year by shares million buyback program.

but we'll us So, look things other that the future. now, still consider for in to still lean right in on

Tim Rezvan

of subject Once pretty did quick it all their box [indiscernible] you the pretty got you a lengthy was Guanella on like [indiscernible], approved, sighting I be, gets then And much a preliminary need forward? kind fair. permitting always get that approval if done That's CAP, to there you approved? of did. permits kind will know tag They you Guanella, if going have if Okay. you do Are get from past needs smaller, process. expect, on or any you'll of that what

Scott Meyers

individual for the you the OGDPs to think CAP, Guanella when locations, be prepared. has really have the each team So, those of to there's about and going

have location We alternative analysis. the

to cumulative ready have We the go. impacts

right each now. Just for facility the on operational working plans

ready be get to we process. [initial team for whatever we're [ph]. ahead our and confident. feel So, able the to that, go that to to of like going we're going have then And siding] approval We're after really way we're is to do

In the And gas in OGDPs and at that addition have submitted the to package we're we're that's of to there the couple commission are We a we pad now that, other out working where next oil completeness that August through submit weeks. two [indiscernible], the determination. which other going XX-well ones, package going we XX-well another Q and Whitney are XX-well our in have on. several in actually still

to So, really, good we in our feel activity shape permitting like the we on future. levels really in are support

Tim Rezvan

XXXX to the And or these of fully longer-term Thanks. these just Okay. in permitted? year? all some for next is program Are clarify, are

Dave Lillo

Takes our we lines hand. in have our into Yes, turn-in permits XXXX completion.

So, we're these to CAP, not looking wells until the at mid-XX. drilling start going even we're

for line we line several turn-in sight yet here next of great years. the for schedule our So, have

Bart Brookman

Tim, DUCs will permits through XXXX. we our approval, schedule have the with turn-in line the hand being in CAP plus

Tim Rezvan

Okay. Yes.

the everybody. all the I [ph]. color. Thanks that's [DUCs] in So Great. appreciate

Operator

Rice & from One come moment. question Co. And will Charles of Johnson Meade our next

Your line is open.

Austin Aucoin

Charles. Good morning, everyone. for This in filling is actually Austin

in PDC First XQ you. that seems to experienced question, the with RainDance respect bumpiness pad the behind be to

Going that no an forward, we this is should longer issue? assume

Bart Brookman

RainDance Absolutely. Western. gas from mandrels lift Great and didn't to went pad installed that's in that back Difficulty] we is We back installed tubing, cleaned the they lift they did. mandrel [Technical to the us. at why the in had time install we out the wells, That the and well, go they to but When gas that acquired get behind

a In week the October, time running there. the in we and did – rigs it brought The [sign-ups] activity. were in. well job in a on We XX-wells took of operations able about team two to completed tremendous in We our move worked last [ph]. at back

go at operations. the their runs ahead When our it mandrels install gas time. Going that forward, do do on we we'll laterals, cleanouts these way longer we and lift TDC that

isn't So, this systemic going to we're a be problem. hoping

Austin Aucoin

PDC prioritized X billion prices, a the as year-end guess has base what as to reduce shareholders be I cash dividend, guess a follow-up, debt free target the targets over reduction XXXX? XXXX XX, you well and by if buybacks? buyback through debt I guess how as flow? I dip X the via to prioritize your more, appreciate oil below I the billion about more return by color. And or would

Bart Brookman

Yes.

me Just clarify. answer, just let before I

going billion, Our been a be to is share have XXX year we our down to – debt about million. return get this have to debt $X about we and goal long-term

So, the of with right sitting billion now we're debt. X.X

I our flow return we of when framework look post-dividend annual is our our this, framework. So, XX% to shareholders. cash mean, It's free at

effective debt is company. an When look a free down So that at debt. pay to part to to a our to believe is And profile. capital other debt needs again, XX%-ish that's working cost it's important your we want of you manage form capital use. our be don't left We

think I which only get that based start to in debt We we a the continue We'll get paying it of then environment. So, in price might down rest we'd paying to the get XXX, commodity debt. that XXXX billion, we'll on might down to XXXX.

So, balance comfortable try the company where stronger. as question? we're answer stronger your Does to make sits this very it we'll we work and continue on today, sheet but that to

Austin Aucoin

very It all much. does. me. you Thank That's from

Bart Brookman

Thank you.

Operator

conference no for Bart back And this I'm time. would the like now further closing at questions to turn to I remarks. showing

Bart Brookman

for Yes. Thank you great for that us. quarter. and rebound operations in experiencing terrific we're the the [indiscernible], everyone you, Dave, a joining the on quarter thank job and

to months. to you a forward look talking in few So, Thanks.

Operator

Ladies this Thank you and for your conference. gentlemen, participation. concludes today's

disconnect. may You now

PDC Energy (PDCE) 3 Nov 222022 Q3 Earnings call transcript