UNT - Earnings call transcript Q3 2017

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Operator

Welcome to the Unit Corporation’s Third Quarter 2017 Earnings Call. My name is Jennet, and I will be your operator for today's call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session. Please note that this conference is being recorded.

the constitute today, similar projections, of make speakers forward-looking course that statements expectations, the conference the call may statements. During beliefs or results any actual or Company's results differ from The will projected forward-looking such the in statements. materially anticipated

factors release Additional could results Forward-Looking under the given the cause from available readily that today detailed heading materially the is differ in actual concerning information information important to today's Statements. press

non-GAAP document Company the The during be to may certain non-GAAP the can conference, Pinkston, to measures. be website. press those on call Additionally, financial in reconciliation of you Larry turn begin. Company's President also discussing will measures will measures is GAAP today's the CEO. now and the Pinkston, over I found release. available This Mr.

Larry Pinkston

We Each Jeanette. Young, to will these take us their will are Good for joining me everyone. moments. we few Parks. morning. Frank be comments David questions. segments you Merrill, updates you, After are Bob you of morning this concluded, and concerning thank With their today with in gentlemen a providing Cromling want John Thank

Before like offer a I business remarks. for over few to just I discussions, turn call segment the would the

we that optimistic expenditure year significantly. fluctuate to each capital cash flow we are continue with commodity At outside the be accordingly. prices the a we While we for endeavor inline excluding establish acquisitions. budget also of prepared year, that outlook must our and for aware maintain Therefore, an very to fluctuate prices, can is will anticipated to respond

during year, it company company but in a execute prior cycles. This has plan, rather within is focus, position which was not this adverse the strong to our Our one cash modestly to remaining adjusted at expenditures that physical a our XXXX mid flow. upward maintain enables capital plan new while positioned

planning We’re the during budget, capital earnings fourth we call. quarter now stages the expenditure XXXX preliminary will in our of which release

despite growth hurricane as quarterly gas experienced Harvey press natural segment and the oil noted effect in sequential production Our release. our of

our see positioned ample core to provide continue in are believe well opportunity and come. results growth prospect for an to plays We economic well to that some we very years many encouraging with

Our contract slightly at utilization may operators’ any quarters we how quarter in it drilling grant the as the rapidly up the saw in two continue grow with discussions first as performed beginning and with frustrating industry matter through the give has have to adding late be segment inline back-off XXXX. no rig temporary we third to interest of as

although volumes ethane segment, have operate positive us very rejection our has both seen business. this in grow allowed improvement gas Hemphill our Cashion a facilities, process we natural in we to can Further For continue have largely and liquid liquids which on our segment sold to volumes. volumes mode, of processing midstream effect increased processed at and

The like you’re until As forward now for we the been Unit of contribution his has Operating be Officer to years can I his to role. Unit David tremendous we look as underway. XX made. Corporation. to replacement a over role aware, CFO a in for David. currently would interim, David asset new all Merrill and call turn the retained Chief his was have process promoted In is recently

David Merrill

Adjusted to which the million, or morning Thank you, of for quarter, per excludes share. the income $X.X Larry, the $X.XX income $X.X was or and $X.XX reported net third of per non-cash good effect derivatives, share. quarter everyone. We’ve diluted for million, net diluted

our has included been reconciliation non-GAAP in financial measures press Our release.

gas Production equivalent higher attributable third reduced higher barrel increased delay and barrels because the quarter to costs for quarter segment, and because volumes. primarily planned production X% oil by due oil natural the decreased to For Harvey. of equivalent for natural for quarter prices. liquids for XXX,XXX of was the the the production quarter third revenue increased gas and the second over outages X% and of oil second Operating approximately from hurricane quarter the

For XX% rigs the number of increased the in and primarily because of quarter segment, costs rate. increased over third rigs Operating increased the it drilling third over due contract second for for average increase an quarter the second drilling the operating. operating XX% the revenue day quarter quarter to an the more

the million costs from third unamortized a an $XXX.X of $X.X the and debt segment, XXXX second midstream the total volume. debt rate of subordinated long-term cost and processed consists ended quarter X% million, the notes issue third and with of decrease million field prices of because credit of purchase quarter over of Long-term third $XXX.X debt higher for increased our liquids agreement. discount We second of the over For borrowings because senior increased quarter million second increased the quarter. under expenses. net Operating volumes and of higher and the end of $XXX.X quarter for gas prices quarter of increased primarily X% the revenue liquids operating

regularly base recently Our oil unchanged credit of agreement scheduled in consists our by borrowing base at our as drilling of rigs. and properties not gas $XXX fleet business remains completed the redetermination million. lenders midstream our and determined the does The borrowing

X.XX and of covenant times times quarter ratio end has than was leverage at been Our X.XX no the greater maximum EBITDA the EBITDA. leverage third senior senior the

anticipated are expenditures flows capital sales. segment asset million, acquisition cash $XXX anticipated which is within from proceeds excluding Our non-core operating and our

I update. the we the natural oil our not budget gas be have will sales. we and segment and our completed from flows will XXXX over anticipated cash capital anticipate turn for this asset call Frank within process, expenditures non-core proceeds to XXXX While At time,

Frank Young

will to well I Granite our plays Wilcox, as what and operational give more play. an we on our Wash Today, Hoxbar you STACK about as expect morning. from update XXXX Good guidance provide in hope

the production the boe X.X by During the that hurricane quarter $X.X over of of approximately to for our for XX is production to production of boe was total may Production the operations another expected impacted compared by represented production XXXX for during fourth quarter, production Harvey. in third equivalent despite resulting increase X% total quarter negatively million Unit grew million have sequential boe. Total quarter production the Liquids million in quarter. XXXX. of second XX%

prospects. Cumulatively, third-party plant effects delays equivalent. on After and quarter, barrel of Harvey Harvey partial oil the the Panhandle the horizontal the boe and were year per quarter, equivalent. In storm day guidance majority to production Texas delays million exploration Harvey, operations our and been by Coast wells the first for Gilly of production principally reduce recompletions. down seven end ice our gas would to fractionation attributable the of new at of Today, Unit our which oil million the we of due drilling recompletions downtimes $X.X Wilcox or shut-downs twin Texas, XX of has The during the strategy was our disruptions, executing XXX%. approximately building The hurricane in and XXX,XXX production in outages resumed. to third-party low went plant hurricane for plant and bottlenecks of before area initiatives approximately Field to previous the barrels down natural Gulf recompletion plant South the and quarter, reduced XXXX spent by inventory operational reward During plant and failure. area from to Wilcox developing these Without drilling XXXX, has for days million new infill equipment production drilling production end processing XX Unit's growth X,XXX wells approximately due workovers, presenting have and XXX,XXX boe. will NGL in be the area in continued high of of risk XX.X to test the high increased

December. having higher horizontal area a recently well further two of We which prospect well in late data the fracs should has next installed or in field. Creek rate a for the well recently village drill mill stimulated. our side and pipeline to facilities well we surface close infill we are this Creek to addition, drilled the Creek wells the to – number provide second completed Cherry prospect. well more We of a expect started have potential early or a exploration – been In second drilled about being recently and Gilly in November the were third At started return delineate prospect, help the Trinity the one year we plan also Field Cherry early first and Cherry production, been year and to late

well In to a addition the Cherry prospect, recently on we started prospect. our exploration Creek brand

during during during lateral field. third XXXX result stimulated production in our interval drilled one and the rate have two Wallow we play, Also foot B of technique, anticipated XXXX. a quarter both production continues first increase lateral the this operations, have two first Wallow the test. field. the recently Harvey first XXXX quarter the the wells of and were negative pleased higher had our the throughout for drilling despite XX% frac foreseeable using the extended quarter we compared in the been wells interval Buffalo exit Two in exit CX at to year-over-year hurricane XX% results. this with production plan additional were Wash to X% fracture with impact be year-end the third X,XXX we growing the to anticipated laterals AX is at extended drilling Buffalo quarter, wells, in program the interval area and In the our B to spud As interval, in year-end continued and to the from which one zipper to continue program rate Granite future, and We these

Buffalo we of extended first processing today when the Oklahoma well lateral these which realized the company wells area, expectations we and rate from The and In rates the XXXX. meeting passed million Superior Oklahoma and by drilled continued beginning to processes return the program drilling state $X.X signed Trend produced well awaiting drilling response into of XXXX, across in or in Wallow successfully August higher been projected that have all a late Unit’s gathers at Production completion extended from second. allowed especially Oil while the field. June program and our of of gathering including in Hoxbar bill a SOHOT, have gas lateral margins cost and state the midstream legislature is gas are of law finished the Southern drilling

the economics in rig play, Marchand reworking extended to will our our longer to further a up XXXX we wells. are on November, first both focused lateral preparing and We for the improve and Medrano position to month. been schedule well incorporate longer blocking in We plan acreage believe Marchand wells spud horizontals horizontal this program. our sands. sand lateral lead In have STACK We drilling

X,XXX and acreage positions. operated results best. our our foot XX be information laterals to continues STACK lateral depending program near the on participated have length encouraging foot well either comprised XX,XXX We accommodates the wells test will which today position laterals or our We in mostly wells of anticipate with non-operated provide drilling acreage

over land the have side, X,XXX acre acres to add our and On position. to up to plans the block year next to X,XXX our are current XX,XXX net

information plan. As more test add more acreage and that available clarity development well and get our comes around we

update and interest periodically being our we well XX% wells operated operated count. XXX range. inventory uncertainty wells major see of to to fall will Unit’s operated working on majority the XX% We density. within anticipated XXX to well in non-operated the with STACK Currently, our anticipate We

than inventory On being non-operated the of XX%. interest wells working density. less non-operated well with see well to be Unit’s XXX a to majority again anticipate uncertainty spec the we the major in We side, XXX

is to core In be near seeing addition each spending we summary, flow. what capital density our uncertainty still plays, the pleased uncertainly, our I'm keeping prices cash there commodity with In are from necessary some growth to economic. location for while be well will quarter-over-quarter around

flow Our efficiency production move Granite and into ability improve Wash, longer production with the for which convert to will and capital cash in reinvestment. the SOHOT we the laterals STACK into

for play STACK large development the our risk drilling With inventory years added production into enough and low mix, reserve to provide several is the growth come. to

a growth can over John over relative been our and potential play area by discovery. Gulf to we Unit our of the turn Drilling cost sustainable as cost Gilly time, strategy long-term. the where being homerun Company top industry and exploration will land Coast one At have reserve now in is illustrated prospects, call our focusing keep addition, this update. that the for deliver profitable especially low Petroleum in terms to operator disciplined in acquisition areas In the have I low Field can

John Cromling

Thank you, morning everyone. and good Frank,

average flow the quarter day $XX,XXX, improved. of average $XX,XXX, a $XXX on total incremental third the rate contract quarter, in margins The to for initiated second our result positive fluctuated to the per slightly steadily an quarter a The quarter. daily due has was operating increase and before third The in was day rig cash wage drilling even segment the very decrease was second rate increase mid-con during intercompany utilization day eliminations of over for rigs, the costs though continue our of increase an the quarter. quarter was daily revenue rate The over region. increases primarily several the increase $XXX third

to operating of Our reactivating rigs operating rig for the was day as service and by basin increase of decreased intercompany rigs of directly cost total during second quarter. day performing The due elimination the fewer being the We STACK average quarter compared operating moving decrease $XXX increase margin The rigs. before and the of did the the plus to three costs cost the third before to rigs one primarily many which profits more labor efficiently. reactivating quarter put eliminations intercompany related was absorbing one experienced daily rigs is the on for $X,XXX, the STACK over another. into per while per quarter $XXX the from operating to additional cost third however second

found can during rigs. operating began to today's XX we have and by be release. We Our and to operating XX XX the increased back XX Presently, quarter with dropped non-GAAP then press in reconciliation end. quarter's the quarter rigs

contracts. operating remained of activity Currently, term relatively of six industry Our rigs BOSS our all with level ten has under level. activity consistent them are with

service into During one the rigs put X,XXX horsepower and have BOSS rig. new XX rigs, SCR we SCR two horsepower year, last X,XXX

of XX do equipment. additional rigs require upgrades All or these not any

pumps The of Three during walking quarter. third rigs varying hydraulic dirt other nine degrees systems, mud to rigs were put catwalks. upgraded into with these and/or systems, X,XXX were the psi service

utilization and aggregated also. has margins. able increase declining flow we been The reduce rate the industry while daily cash cost to rig past daily month substantially during However, were our our land the

and for for are in due we count current for of sustainable increased The enquires rigs optimistic appears the demand that it the However, the reduction rig for that be beginning near-term. recent has of will will is rigs for rig quarter Bob to during Pipeline the call to the Superior update. leading will first that budget XXXX. us rebound over I count the this for constraints believe the turn to At XXXX time, XXXX

Bob Parks

quarter financial facilities. favorable producing The many results completed a midstream of segment at John. successful Thank you, third key and consistent outcomes our

Our segment XXXX for achieved before liquids. primarily pricing increase for better increased as is expenses first depreciation XXXX. of the well to of receiving This operating operating nine months monitoring represents million, gas months which due over oil, $XX.X profit and XX% a the and controlling first to result as nine

the This gas quarter of cubic feet remains a increased cubic at while from For represents constant margins which Hemphill total to our a our throughput capital quarter quarter the at XXXX gross the volume higher $X.X at of improve, to per consistent and increase XXX as higher total day invented X% per third to million. the second facilities. volume third mortgage day, of due which in million continue approximately XXXX the second is We in $XX.X approximately million million year-to-date XXXX. Cashion XXX mainly of the increase prices process projects compared to is volume processing facility. quarter for feet If

volume Texas XXX,XXX natural midstream key increased Haynesville production Wash approximately per I’ll several Granite our expenditures total of third to capital XX.X the estimated per gas average liquids approximately million our Panhandle, gallons XXXX, in cubic feet approximately million. day day. the in in quarter comparable the throughput assets. focus increased and on now located facilities our with are $XX.X For Starting area

to this from quarter received Wallow due Buffalo process While volume additional NGL and volume area. the volume increased the

which we During Buffalo to wells the third the connected new quarter, Wallow two the four from for our connected area, brings well total year.

in this We are wells the and of of expect two the activities in continue connecting additional the year. drilling area by we end process

continues system in located gathering to result. Pittsburgh Pennsylvania, Mills financial solid Moving facility achieve our this to

five Our well XX We system of now wells. million to a for wells. producing connected new after total May which per approximately a of Pittsburgh of XX connecting third XXX.X our Mills pad Allen averaged total total cubic well pads day feet quarter gathering throughput in XXXX, includes have volume the the with

well will pad, next the Miller Our scheduled system. the located connected of is south which be on to pad our be end

in construction latest wells preliminary flow to expect first continuing with and seven activities Miller the the quarter the are We going year. and third this connecting through after expect pad pipeline new of construction we XXXX. first start of The pad

Additionally, new pads. well we drilled existing be infill wells notice have received on will that seven

XXXX. facility the We day. our At in expect per processing our feet central second of volume wells million flowing average increased Oklahoma, connected be XX.X half throughput approximately and these in cubic to located Cashion

four the connected new have gas of connect process in We and the new gathering are expanding third systems quarter in the and to wells the from Cashion producer.

are wells additional the three We this connected pipeline connect first wells. to and have producer in process of the in extension constructing the we

modest gap sold producer that year another volume cubic shortfall provision at XXXX and any the January which applies and not stable remained increases day facility. process is will Additionally, sold relatively contract be our that [indiscernible] annually. and third-party effective together liquids In on is total throughput for fee Cashion five This a that a amount last our our quarter. delivered with have XX volumes feet per based shortfall million includes contract process summary, over volumes is the had X,

Cashion to financial results. based connect processing facilities We while continue solid Hemphill Appalachian continue and our new to deliver fee wells; our systems

any of benefits our and price from in this we future are prices advantage facilities take processing position We on some seen to improved have a quarter improvement.

feel and positioned going into anticipate completing with XXXX turn well increase XXXX. midstream our over segment levels financial is Larry. activity we continues this to available will gathering call producer we At processing results and time, I strong with the and to the back capacity, As

Larry Pinkston

you, I out to the just a point Bob. we Thank like few would on And move before Q&A, things.

We’re very expenditures segments. very positive with all to in expected on pleased us quarter strong This production another flow. complete focus with operations we growth maintain deepening maintain by capital enabled position while Harvey. very have process. our have continue our continue each in to three Well to are exploration to being impacted we increased has quarter improvements of line our hurricane despite and In a production our pleased segment, cash

are We from core low outlook position us our with inventory three a from results segment. for give development our long-term the production STACK other pleased combined favorable with this large risk The growth the areas outlook very going forward. should

Our contract drilling segment today’s in very perform well continues to market.

relatively with levels. activity remains industry consistent Our level activity

Our of very times. have are this of remarkable BOSS customer to am operation. operating All a in we've proud meet accomplish achieving. to able anticipate drilling been has is focus team rigs XX very what currently I segment we our our during XX rigs done and these for and which needs, job SCR have challenging

midstream opportunities may positioned segment that of Our advantage arise. well take has to

to processing I new physically to Jeanette? our only it’s would quarter questions. any we turn good over now approach. business liquids and liquid for further to We will quarter. to improve and call this increases to us All just pricing like all see in opportunities in continue conservative would grow seen as our the we've segment, continue maintain sold volumes this a

Operator

go Instructions] session. comes Neal will question And first Trust. Sun and we question-and-answer ahead. you. begin of thank [Operator from Please the Yes, now our Dingmann

Neal Dingmann

laid Nice details Good morning out. guys.

for activity first just Does I'm a about kind that, it’s think one I number mean bit. your has activity looks guess you if stabilized wondering talk could I on for of like or John bidding slowed now rig too be little the the question that if area. side. may in rig that or my Larry, you down John,

John Cromling

the couple about down next probably especially for to slowed did may it’s jobs the ago, during month, XXXX. or weeks be four last in weeks, most weeks first lot but week a it yes, happen or of last and mid-December, ago, this not two quarter Neal, but a for of increased well the

rigs XXXX. So enquiries we we’ll several work pending in that first contracts have the for the quarter not of only but have increased,

are these not we what have. additional Now rigs,

been that of part the But just went three plus letter that of down going, quarter. operating. would this have that have continuation a two We in be jobs we those to

Neal Dingmann

rig Okay, one side. on and follow-up the

that, had we yielded with third a just quarter in that quarter look is it You margin continue we margins, in this something the at current looks that we but very XQ? sequentially can the increase at like that XXXX, when nice continue on as fantastic on level increase saw maybe maybe the not least, address

Larry Pinkston

have we and bought expansion are rig third more had we that per rigs, quarter. more Yes the the divide in G&A, a come so those down reactivating this large for affective out days, even less rigs And to because had we those reason I/Os weekdays expense, We all went more things three cost, costs think so. down on days, by quarter though indirect basis had day so much the won, by. in also we we stacked quarter. But this during auto

just takes an beginning of speed just more overall pre-equation the did at that, that's included. it it's time and the the year now that the we are things start stable. And industry ramping up if So

the think expected results I forward. so relatively to going are be And

Neal Dingmann

looking between side that just were for dodge of then Frank. wondering will Will all active will Wilcox at if that Frank to when the or you that one you to look will the be the target XXXX case? any focus, at area a continue for plan. kind year. three. And be – and full similar this seem know maybe you moving I’m But in be year? I mill, like one planned just and have Cherry you’ll you it next the over Is Okay, pretty hill and Wilcox, last upstream guys Creek

David Merrill

XXXX exploration continue be so work-over bit we on next to in with will prospects, a we recompletion drilling our year the wells delineation area. will plan because programs little It some the in and Gilly

to we'll also spent bit exploration but wells on a a to then all be a plan will our little do around We XXXX. in than drilling area. all run dollars for in But we – in some development will to XXXX, plan is of have dodge still that also to have the XXXX in We – Board for more some and rig XXXX will area. of probably drills the did run rig mills our Wilcox we recommendation

Neal Dingmann

you. queue. back in hop I’ll Thank good. Very

Operator

And one Thank comes Please our Raymond question Adkins from – Marshall go moment next you. of James. ahead.

Marshall Adkins

Good start morning guys. with I’m going you. Frank to

come it's thoughts to mm end this next at going early year any know initial it up, depends You're in XX thoughts But and just I boe there? any kind might year, where on directional pricing and whatnot. of

Frank Young

in seen growth we’ve quarter-over-quarter said, sequential think good, script the this would we year. another No, sequential I fourth And growth quarter. the I expect in

yet. done XXXX our haven't We budget

will into annual be see the every details. for anticipation going sequential really to just target would we grow budget able is we're during and dig process, chance our see in – Whether a we'll we'll to be remains we growth growth. to that sure. same the But see Our XXXX production can growth single budget it we to see achieve it quarter, quarter-over-quarter

Marshall Adkins

Okay, go ahead. well speaking – into that budget

Frank Young

Alright, sorry, did anything not else. have I

Marshall Adkins

Okay.

E&P that going be you at If all different to the areas look attracting are capital.

areas. Wash, several be now it Or got me others. kind like where of Where most of a breakdown coming between is to of up to rough the going You of the Granite seems going? – capital – see the key evenly now you spread give and five stack kind have be seems

Frank Young

spread be is will areas. areas. our spending our between Rig between capital going counts to spread The be

the what working in than a others, cap terms of very our – that headed so continuing rig. you'll continuing net in will where is higher our together. – between interest we're putting have STACK areas see capital adding then rig rig, rig we a we XXXX variations in would net SOHOT the Wash, the and Granite recommendation areas, but some Wilcox perceive Now for budget continuing some That's

Marshall Adkins

for John, let good, as long SCR shift is drilling well like side. the just seems all holding lasts? remarkably whistles. that's for demand back And do bells to psi you with over Okay, it and rigs long helpful. right, outfitted the stickiness, all think X,XXX Then Is that up rig me and and rigs accurate? will pumps that they're as you if how SCR

John Cromling

continue correct think in the And our rigs, I situation will think that they're no that SCR reason you’re now, rigs. of rigs, it stacked a but right AC Yes, more think and the that, that equipped they’re just I I lot Marshall. AC than

of Its programs what a I they're of run rating those properly. AC rigs. of the no all equipped what question the of it's you with of DC So kind, think don't versus mud-system, other what if pumps, kind drilling but sized as can question kind that the pressure much pumps, things,

SCR competitive think with So we I can remain very the rigs.

Marshall Adkins

Okay.

John Cromling

of And as goal work. as you both that to our the program trying to parts those to know, so is just add still BOSS together put to and continue rig arises, our opportunity we're make it

Marshall Adkins

margins And rigs at SCR your BOSS rigs, this than better correct correct. meaningfully stage, me if I'm getting wrong, well, the they're

John Cromling

[Indiscernible] exceptions the play of are contracts statement. sides it, true. but in of that to that's began there cases, win were some both big yes, as In overall,

Marshall Adkins

upgrading Are SCR AC? you considering your to

John Cromling

rigs same that other No, upgrades to can still as go be will SCR we AC that rig, not And think do will rigs results. the obtain our preference. we if think because really with we the on we BOSS

Marshall Adkins

as Last looks on it that been keep right. better given you mentioned utilization all Okay, margin you does it pricing, revenue mainly was one like of me, side, the expansion. for earlier, helps. assume on great but It cost? kind two pressure of is How what well inspires seem little guess which that I’ve you're did much And margins we hearing industry. the getting about everyone I mean from it that labor. on across hearing I you about labor thirds

that any quickly might you there? see real on So just pressure comment

John Cromling

we just first We all, And that – the in all had mid-continent for region. a of we pressure. experienced the increased wages crews

with but will the of issue. pressure that but rigs has But as by in always manning there's the in rigs had of yes, alleviated that be significant XX continued So, have our growth. part pressure there, lessening last any added we've rigs, month a count not additional problems the is we rig XX,

Marshall Adkins

Thank All right, all. guys. okay you

John Cromling

lot. a Thanks

Operator

of Cowen. Robertson And Please from you. our Charles Thank go next question ahead. comes

Charles Robertson

more what's All the in right, there upstream you sort exploratory could targets the if that and you the Little over provide, of back side. on Wilcox to seeing like? switching color your

John Cromling

but if is Trinity So in the delineation to from will go have couple of the and we drilled zones that the first discovery. meantime, at be Creek, high to the prospect mentioned rates Cherry find structure we’re of mentioned of months field, the declines, and it – test didn't Gilly in be that that December the Field well cherry pressures high well, the rates well a more and how pressure think I held the field similar to come two going when as and at rates, encouraging will in And and to our first the tested that Cherry drilling that delineation kind the Trinity. six or last quarter, size are of this the we'll And to the that further quarter that Gilly at up. drilled number on just you'll Creek the part XXXX. miles of that comes of indicates how size quarter of and field. drilled sometime prude significant up a we to on, we we recall for up well it's XXX the first see XD that watch Gilly was but think on Field Creek I prospect well Bcfe is and rates discovery I’ve very seismic

to that should of be horizontal that our find hope prospect we nice large the we very we prove then drilling Field. where and plan has have that nearing exploration brand In been of an from prospect the completion the addition, those two we a area quarter prospects, that And and production prospect have and that excited find And XXXX total that all well area nearing we It's what and to another the that depth or quarter well us. far in Gilly third the call exploration on beyond near angle. – testing well exploration is there is very some we're there we could for offsets about angle our prospect. drilling called is are four spud

that's as can as color about point, much at give I Charles. So this

Charles Robertson

than expecting. a Thanks. was color lot Defiantly more I

John Cromling

Oh oh…

Charles Robertson

thoughts the targeting normal In the there you over thoughts area that? good. area will pressured Any first? there? It’s to Oh, or are be you STACK, What what go. your the

John Cromling

fortunate Most of is the produce over well over continues in best pressured in window window, our results that play. which pressured is the to acreage because

about We are participating continue excited very acreage that the we that well results we're and position in. see wells near to our

all We successful be in of have terms a would to wells that in able program our will haven't us XXXX drill there. we to wells of that very will XXXX, in the seen In to like discouraging be drill and anything pressured drilling we window. being will over

some And part be some in and likely into of main drilling more will STACK. the extension be the the STACK western will of

Charles Robertson

All right, thank you very much.

Operator

showing this [Operator questions I'm you at time. Instructions] And no Thank

Larry Pinkston

visitings. in Again, to many Thank just our trip you, we and Jeanette. that our We like as over around you next seeing to call. you couple morning for joining this thank forward again concludes thank months and of us of everybody again look the can

Operator

Thank and thank may participating conference. This gentlemen. disconnect. you you now and you, and concludes for you ladies Thank today's

Unit (UNTC) 2 Nov 172017 Q3 Earnings call transcript