UNT - Earnings call transcript Q2 2018

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Operator

Welcome to Unit Corporation's First Quarter 2018 Earnings Call. My name is Jason, and I will be your operator. [Operator Instructions] Also please note, this conference is being recorded.

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

today's the materially that information from is available concerning results cause given information the readily differ under to those in detailed important statements. could factors actual today heading Additional forward-looking release, press in the

turn the non-GAAP available I Additionally, those press discussing and certain reconciliation to release. call in on today's GAAP website. measures the This will non-GAAP during company not please Larry be is measures. the to financial company's Pinkston, will Mr. the CEO. The found begin. document conference, measures of over can be President Pinkson,

Larry Pinkston

Thank Parks. us. you, morning, With Each will be of want John with Les We joining are you today Elias, to Merrill, these concerning David gentlemen thank Jason. Good you their segments. me Austin, providing for Bob this updates and morning Brandt everyone. Cromling

the questions the We at then end will of take call.

three pursued while we path in the to changing economic budgets flow. expenditure our Over conditions, line all our and through largely with several anticipated a disciplined last annual capital of cash have business years grow maintaining segments

belief our is a segment of well reaching work object segments to grow it While each together, we with self-sufficiency. scale of very continue that

release, we of As previously in midstream the current value. the Company highlighting segment's the earlier ownership for sale of Pipeline communicated XX% interest Superior completed press our subsidiary, our in $XXX million,

the midstream purposes. and natural of accelerate to all segments. transaction line control, from of pay growth substantial of operational and new Overall, focused for of as revolving new this our on day-to-day gas to partially retains used we to its X general be segment, our within were will used outstanding continuing business capital focus to out oil that growth Unit further credit. we remainder balance value. the sale While Unit, continued provides growth Unit's partners are liquidity the working the increase and on Proceeds segment the The

have in strong XXXX, we half during at-the-market approximately Superior is company's common Despite completion approximately program, of shares of the of of our issuance successful our That our elected capital position, stock. generating resulted to offering our expenditures. the to the million. remain our first XXXX, $XX.X February liquidity plan With of proceeds transaction, disciplined of the with XXX,XXX terminate in announced

We spend result I it for company. return the now the turn money will would the to like our to we over will believe, for call Merrill. in David best

David Merrill

quarter-over-quarter morning, inclement processing to the company storage for positioned segment, growth to on In below everyone. volume well multiyear Thank We about we solid X%. of our segment, recently just weather In oil to experienced With business of execute gas gas outlook. per we very the growth and the midstream well our natural Larry three you, our are discussed, natural highs, an lingering levels year-over-year growth that effects production X% for plans we expect all transaction day segments. and gas continue improving and business good our and optimistic quarter. had average a five-year Larry, and prices, outlook reaching WCI the NGL

all due However, well Individual be Wallow associated continue expect quarterly and to multi-well be we results with on growth to development Buffalo area. in basis plays. to production promising monthly the the our program uneven pad in four timing of

our the now successful over for fleet. to opportunities additional We turn other operators drilling have long-term I XXth continue in delivery, with securing segment was of our discussions are pleased we Les our that Austin. call for will to and the BOSS BOSS contract growth contract rig about

George Les Austin

quarter, net per which derivatives $X.XX million for Thanks, David. was of the income diluted effect diluted share. net $X.X We the $XX.X share. per of million quarter $X.XX reported excludes first non-cash or the income Adjusted for or

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

the for offset first NGL the for For quarter the year revenue last because lower X% natural Average over increased and by oil prices last X% quarter over first expenses, increased prices. and with production quarter gas over cost drilled. the delays lease to in production oil taxes. the expenses, gas fourth of Operating the of daily quarter being higher wells fourth saltwater increased production primarily of work and disposal of because completion operating and due year new natural of higher gross primarily segment, expenses decreased

the last last contract other revenue, year due the for increased the first quarter X% year rigs the the because of decreased the fourth day offset drilling more For rigs. from of to Operating partially by fourth first mobilization decreased operating. segment, for and cost drilling utilization quarter over and revenue X% quarter of increased quarter

X% the lower revenues of last the debt year purchased. midstream quarter million of of from of higher for sold the processed quarter daily a segment, to both fourth quarter gathering of first $XXX.X consists from first subordinated the quarter gas decreased because and day, end credit an things, decreased ended gas our commitment, zero. April the other amount of due on last fourth $XXX.X our from costs costs the transaction notes, borrowings connection fourth maximum the $XXX of elected for bank $XX.X of of unamortized One liquids fourth a $XXX.X in the per cost of a in lower X% long-term in of year, interest the the Operating For and the total gas also same primarily offset by its condition debt with We agreement agreement. of agreement. volumes the slightly volumes. Superior. quarter XXXX. issuance under its with and credit senior million, of signed On XXXX of first from reduction April X, of its Long-term debt the million The discounts net of ownership paid closed debt credit and quarter was that XX% to and credit sale of day borrowings outstanding The the million. were amount, sales base sale million credit bringing amendment borrowing Superior a amendment all current X, facility to the among unit for, on provides release fourth

times would at leverage ratio than net quarter, the X.XX our ratio the the maximum oil is natural update. transaction, senior greater the to will times have forma times segment no senior the turn over Frank was call gas leverage Our sales at the this covenant leverage I been our of for and first X.X At EBITDA. and time, end to quarter. end be for our of X.XX the Pro first

Frank Young

morning. Good

day. for development, compared to cubic pads a first completed in unchanged line drilled further the XXXX drilling play. expectations oil are of the the in in pick which is and rig Wing per we Cherry X% quarter. is of and stimulation or because continues first Field equivalent, work third prospect. overs oil delineate from to per drilling production forecast our plan area, for production XX two-week in to of XX.X feet lease XXXX. additional the increase continued interval this quarter exploration the in programs of Wing prospect, plan the two of up Texas that X in Polk be XXXX drop was the #X, XX per Coast drill XX.X operations the The near at the to prospect, the due was quarter, of Despite multi-well first anticipated the our lease, successful Gilly the the unchanged new beginning and the the with exploration following this a to sand with in slight area. these discovery. Coast The late in Gulf in and was timing County near an X delays completed and flowing and quarter bringing day decrease second Wash XXXX in with of to per Wing This the XXXX. XX we quarter. a to the For Creek XXXX we and X.XX quarter X% the which discovery a rig just for of was barrels the Gulf rates delineation [indiscernible], barrels a completions the the day, to currently well million well, wells In rates BPPC Wing Engel production Granite at recompletion to flow million online, X% from in would the at was to during feet X the equivalent our daily Also from Trinity cubic X fourth day, million were located Brandt drill one XX,XXX barrels delineation quarter. In the early quarter million over quarter we #X, well remains second of there delay of fracture well of In of Production under equivalent, quarter fourth oil quarter production fourth delays, and

of XXXX and be will for and XX rig XX XX wells, for is plan X Our which to completions new X vertical horizontal.

laterals, may wells area, - total drilled the in the are be late the Wallow #XH, Carr and Carr pre-exploration drill Granite of fracture-stimulated continue depending after successful recently after up now March. our Wash reached prospects. in Wash We we wells delineation pre-extended Panhandle lateral In extended being Buffalo depth the Texas the #XH Granite Additional #XH. fracture from wells Carr to cleaning field. These

were Francis had which XH longest are in first X,XXX all feet lateral feet, These and wells after Francis sales Francis also cleaning between fracking. up XH, wells, February. Our X,XXX extend the the and XH,

X,XXX continuously per well, wells. In or Our should Southern we equivalent extended IPXX to Granite McConnell rig for during day. of area, Marchand XX of completed least our Schenk Trend, Marchand drilling with XXXX, In an lateral SOHOT, equivalent day. of oil the the new first Wash we Trust #X-XXH extended completed during at with wells In which January, IPXX year. an result barrels X,XXX is Hoxbar the the X in of Oil horizontal our oil per barrels February, #X-XXHXL, we quarter, plan lateral operate Oklahoma completed length X in new

being second The Livingston late after been and lateral, in drilled extended up cleaning #X-XX, recently fracture-stimulated March. the has is Land

with X-rig of Oklahoma X lateral March. County, should well, our in our being new a X initial extended #X-XH, XXXX, wells in Dewey to plan is during in we continue play program, In located During spud which wells. Western the drilling total with STACK the Oklahoma, result Irwin

to same drill wells conference call, area move Following X dry of we rig plan a target we we County. X in additional and the At in the Western for the well reservoir pad the then drill last the plan to our Irwin, STACK wells said, of Oklahoma. these Custer second gas to STACK

Since delaying the gas in holds, gas development of until amount have resource, gas Consequently, within reservoirs capacity to by our gas areas returns. However, marketing potential area play have the of the acreage improve. prices position for production target this other STACK the by gas delaying feel the play less option largely better STACK prices and/or we lower we our production, may led and large be takeaway we realized realized rates. STACK choose constrained of of development, constraints the held the best gas, and risk value is may other optimized acreage our in offer that of holdings acreage to or

Results and X working XXXX. quarter, have overall, we the completed the to during over XX been to in have continue a in During of wells STACK non-operated non-operated in total participate wells X and quarter an interest about of from the average expect X%. per XX this we program we participated of wells play the with in remainder non-operated in to participated play good,

activity quarter Unit exciting Petroleum second for set First quarter. an up has

production Coast quarter, future will drill exploration X going in a During delineation and will prospects potential. Superior's area, gas of and the giving the second quarter-over-quarter will growth Granite X Wash Hemphill up wells result of wells our Gulf be to us in plant that more from size and we in the better ramping idea the we development prospects production

At and and more will to growing our cash possible competitive full value inventory augmenting John our have of acquisition spending in update. flow follow offer the strategy call economic of midstream and returns. but areas to of utilizing production chain Unit within continue this drilling capture turn and reserves, Drilling over low Company now cycle the Superior that time, cost, the our I will We rigs play drilling relatively for services for still to

John Cromling

with revenue of increase as the over long-term daily no increase quarter. an $XXX fourth was for the average profit remaining for segment quarter was contract first day count fourth of over as total elimination Good Average a with $XX,XXX, the revenue $XX,XXX, per intercompany of The quarter. well quarter an $XXX morning, BOSS rig. day good newest had contract our steady, drilling increasing securing rate the a rig

Our taxes fourth. first of due operating compared an from increase a Permian fourth increase the decrease was elimination total year. quarter. increased day wage the by to our payroll Mid-Continent moves in the a of the cost increase due and at daily operating before cost This first rig decrease resetting intercompany long-rig intercompany the as crew of primarily $XXX eliminations, and of The for is $X,XXX, quarter, slight per to the mobilization increase and which the rigs, for beginning associated from profits, in average margin majority the The before was three higher-than-usual this to cost. with $XXX quarter was

can in today's non-GAAP found Our be release. reconciliation press

[ph] contract X of July Sedimentation them to our Currently, we expect remained of XX under the this utilization Permian. at throughout rig has recently by a and BOSS operating We long-term Our XXth with BOSS all XX rigs. of rig. contract. in begun constant are the term operating it rig be quarter for our rigs negotiated

We also rigs X our upgraded the of quarter. systems during mud on SCR X,XXX-horsepower

We time, the rigs I'll opportunity for turn the are At during pipeline next to update. to over have excellent several grow call candidates this of quarter. the as Superior optimistic dictates. additional for do Bob the refurbishment our remain which We SCR market

Robert Parks

financial you, results segment John. The solid continues Thank midstream XXXX. of the quarter produce first to for

is key system Southeast $XX.X XXXX, the and our Our at gathering fourth partially increase our counter an increase on Texas focus operating save will for XXXX. additional margin first over Segno which quarter is million quarter higher several now midstream system. depreciation to higher volume This due profit before on processing I the cash and is assets. of XX%

of be these drilled wells these several the Our of liquids. million scheduled new our three been connect area. system we the our had completed, wells XXXX, volume Buffalo XXX,XXX day has expect quarter wells Wash the area, Granite as receive gas for first in first laterals are the approximately gallons from in and Wallow Hemphill natural cubic to quarter facility second Construction averaged of in the recently to produced the from total per the throughput to cash connected quarter. wells in per approximately quarter XX.X we feet second and to We day

increase and the Oklahoma, Additionally, volume area. in XXXX the the started at to we compression expansion first facility a order increased was million from approximately located cubic day. Buffalo this will the At capacity project XX.X our of handle expected compression in area expected that for cash processing Wallow feet throughput the quarter Central per production average

XX facility, producer of Our total this processing cubic capacity of this At us facility gas remained new day. that feet drilling. completed construction area, process which gather and is a our expansion from at million allow in the to we approximately pipeline per will actively

they lateral to are We this to lines construct new area continue drilled. connect wells as in

annually. five-year for from If first period. we to connected this deliver a gas continued in During new during quarter, Also, quarter, producer be first to deliver the Appalachian a volume volumes is the will XXXX, feet to our us receive of to total located then he fails the gathered pay committed the first will cubic region, three which wells gathering the Pittsburgh area. required At in who X,XXX we day. he during averaged facility per quarter settled Mills fee shortfall million volume our

and on wells continuing our well of system. include are gathering next the new scheduled station pad pipeline connect This compression well construction would seven is to to portion to We connected pad. of our the the located be southern

and from We XXXX. end to well by this expect of gathering the construction complete begin pad the production

and quarter of production In XXXX. Total of first for Gas remainder the come are receive the for pleased These that throughput to results Additionally, slightly from budgeted operating with down to expected existing of still first volumes will we online XXXX. financial positioned wells volume we profit wells and part of our quarter. we increase, our remaining while are in XXXX. are the we are continues two the than well summary, are second - preparing better processed pads. seven from on quarter infill to drill

our want partners. XX% financial are recently Superior announced excited new by ownership I about to of Finally, emphasize we how the

resources I'll that of the over to we the With financial advantage will accelerate our to to segment. available This the Larry. turn the now growth are take of opportunities time, back call accretive ready now midstream us,

Larry Pinkston

Thank you, Bob.

a of business our on provides the good very partners tell, Superior believe can is feel We are to Further, in you that interest in ownership XXXX. - of the we As pursue valuation new strategies. of good quarter part data we segment. point how positioned growth very capital with quarter partial accelerate growth the had valuable its of to the company to sale board. the continue our that first that of We about positioned the

also and year as of and, and drilling measure the the accelerate the of to we Frank as working diligently Petroleum these segments the best have we're We during that in facilitate forward, possible. his highly adding are growth well. would of course, We economic out both the turn growth move currently rig Unit helps and team oil additional this an in of we had. prospects ever than inventory have best prospects midstream

best fortunate are largely held STACK being rather our are so while develop than in by differentials the we a forced division so to We in production environment that constrained that market. do so can economic possible lopsided asset the is

continue well. rigs perform to BOSS Our exceptionally

reduction new pad We are The building help sale in sharp facilitate the partners expansion. in should about rig. Unit's grow flow Having cash the and to the acreage next BOSS discussions we operators also at resulted are midstream partial leverage. having business #XX, see with a

sheet. balance cash of Additionally, on has a resulted sale received from in the our the liquidity amount substantial

I like the questions. we call for capital remain always, would now to discipline. turn focused over will as Finally, on

Operator

James. [Operator from comes Our first Marshall from Raymond you. question Instructions] Adkins Thank

Marshall Adkins

on so at Good WTI lower - I curious realized morning, quarter this parts quarter, oil the going Good the roughly am of this were the side. production A moving than least Brandt. lower job forward. maybe price, or $XX $XX than guys. for prices past lot

gave differences, than the Panhandle, You view Wilcox presuming But us for pricing position. geographical hedging your detailed your there's gets better of example. a

got where oil that some should realized us When help with price You've around. we going model of give differentials bouncing forward, we progression? think that

Frank Young

$X then the a Frank. $X a currently around are XX% we and above off comes so, oil Marshall, fees prices, there that from coming WTI Coast which oil $X.XX and barrel get area, is or production are Approximately, this transportation of our or about Gulf of LLS our barrel. oil about $X

get get for prices to to WTI we that WTI So oil about those our of that. prices and for or we $X for close so Texas - hedging realized to barrels figure have Western as either oil and you into remaining minus we originally mainly as course, the Houston Oklahoma and realized there the a The then, process Panhandle in our transportation, have area. prices $X are the positions in

Marshall Adkins

seems a my parts, Right. stays were it moving this your Is $XX the as $XX-ish was several where That's hedges point, or by, last off realized to of next it a over quarter is, whatever those price year higher drifting be lot now from but of quarters ought fair? to oil higher? that like, maybe roll it assuming start

David Merrill

we're QX up, above to building out hedged about We're a obviously, fair. production comes for that's getting that. $XX about XX% - or hedge of we're Marshall the be remainder Yes, around we're of going at bit the that. as price But volumes, oil hedged for - And little just year. about XX% our

good cap of So that's of on keeping the it. a kind portion

Marshall Adkins

of those over and term time. Near roll will Yeah.

David Merrill

we credit small Right. the for of And a much. any - we side, hedges not on have amount XXXX have don't

Marshall Adkins

Right.

they stay prices just going I let's mind, obviously now never think higher. are, keep So where they assume for

all where because How this see full $XX Let's say stay environment? cycle obviously, just just to of put next I'm you WTI your you're kind are. returns return will I do going or E&P. including the some do they in think they the in $XX the get money you realize, more asking on sense full well, not want of but what cycle, stuff. you to

Frank Young

along return our talking everything XX% production, price will you're that rate play oil looking including SOHOT the about. you're already on and thrown up depends our full if that about play, completion at, land it the cost. XX% is in for play, cost, of But which returns with above in drilling there oil that cycle instance, So be

and depend than prices. Our prices the on gas liquids Wilcox more will other plays, STACK Granite Wash, oil natural

Marshall Adkins

or of say But that prices for Right. those IRR assume it where more stuff? average less here. Is hold they XX% to the other reasonable kind let's are looking you're

Frank Young

That would close. be

Our Wilcox that. Wash a better lower than probably than Granite little our little is a area and area that is

Marshall Adkins

great. Okay,

question say am the put of I more on free generation. I'll modeling terms Let's the trying sense just get flow Last cash that. a money to and me. in for

BOSS low leading edge that getting and well? seems margins. margins - What and from those hearing - are sold stay leading What to mid-XX $X,XXX, it STACK getting edge since rigs Your are as rigs high SCRs? guys your of active of SCR the the are the your $X,XXX kind are of out. like XX are on We're rigs most rates thirds two drilling those

John Cromling

all, that of not of same but numbers Marshall, lot for about seeing hear not yet. yet. the kind just I First high those take mid-XXs story, I'm the a seeing rates, we're that

don't continue X you're what say, you by the to at it margins many those margins on high. this and are reason you And to those XX% not abundance on increase rigs customer much And asking course margins when increase because over longer look at do in XX%. rates, right are early so I will are of moves up. cases, investment margins. moves asking about of making long can for yet suffered But the now and coming our gradually rates probably because a year what of as know I will period back I will those of our be think SCR that or moves prices there's the the longer we quarter, pay margins also, you're the that than if to that as paid by those increasing On wants as mentioned and day a the our we future year, earlier, the continue those that. over because some provide, type cost some in look that the

story, that just that lot I seeing mid-XXs seeing all, we're kind I'm not hear of numbers but the yet. a yet. First Marshall, not the take same for those high of about rates,

On know rates, But you gradually the mentioned when by future the because or margins back I of what increase will look you now suffered so SCR because asking cases, those longer to think and as this of that. And coming to as longer provide, over in not we pay XX% asking year, are investment many prices continue the increase moves of that increasing high. cost X up. day can don't some margins those long if be our a over paid those rigs continue the earlier, moves much than those that as will making and some what also, a you're course by wants we say, year there's you're reason our are period on at look margins for our And because early and do at rates the are margins. will quarter, right type in on margins about those that the customer abundance the moves of the I probably to it I XX%. yet that

kind hear not I'm rates, about high yet. we're I yet. lot of a for same the that seeing that but numbers Marshall, take just mid-XXs not story, the all, seeing of First those

the prices at say, on look margins. look XX% much as will if On you're you many rates, gradually reason a as as the day this to quarter, and some course the those pay asking do because the making when you're that. continue suffered it rigs will paid or year rates the are will those XX%. what increase coming and future early of SCR in those wants longer probably customer the of are can in by some high. up. because be a margins right so over of the we mentioned and not increasing we margins I margins asking on you margins at to because moves know earlier, about those And year, long of yet than don't that type now those provide, for X moves And back period that there's our I that think to I cases, our that But increase investment longer are continue cost abundance what our over by also, moves the

Marshall Adkins

Well, it of those kind your - call what but right. let you've SCRs ask rates just All a different put what few leading last getting edge? out, way. or me - What I would

John Cromling

have summer. actually any haven't added same that am one late additional I since we Well, we back maintained that in number long-term. We've sorry,

Robert Parks

contracts. New

Marshall Adkins

- new Yes, exactly, they Have the new contracts. repriced recently?

Frank Young

Okay.

You want a number?

John Cromling

Yes.

to the form in $XX,XXX, that Just it but provide. we $XX,XXX - $XX,XXX - they're is

Marshall Adkins

helpful. very that's Perfect, alright. Okay,

John Cromling

Okay.

Marshall Adkins

thank for questions. other I'll you. re-queue Guys,

John Cromling

Thanks Marshall.

Operator

next we have And Neal SunTrust. from you. Thank Dingmann

Neal Dingmann

play on said, you area. maybe floor thoughts that guess, the sort test be on Frank. about just your I remarks Good this then the well in talk rate when in forget the - initial how active remainder that of of Could have for you STACK if might morning, And discussed a in that? I little a one well. know timing you about Frank, what bit that the we Irwin the first plan just prepared I you'll what's guys. Question the for year the one on on,

Frank Young

well. then weeks we'll So skid drill X completing on away around pad, first well the on the And plan X the second currently from same we're drilling that the and we wells pad. rig Irwin at that

until to wait we'll drilled. both have wells, are of be X the So fracture-stimulated them to

sometime until maybe yes, not to that maybe available be frame. And or third sometime going time so third production quarter, the or likely quarter, early late first quarter, is second in in the

Neal Dingmann

side. then And to good. over on Very moving the rig John

asked the even well and BOSS one are XX before, X think get basis. like to what X - on of be or every like it to I've very now to contracts going I those is seems it you you least you the XXth it rate this bring the solid at think I under, the time day other out, sounds discussions what under X on seem you're it XX very

rig? discussions there How want on, a or are ago? X thoughts beyond it versus XXth are quarters this at on just it Your right I bids of anything you having - the now. looks to sort look out

John Cromling

continue we the discuss time. additional rigs BOSS Yes, all to

other We go them them for people, have visit rigs, our see first companies to taken from management engineers, hand. to

at program. can to expecting fully we're just that able accelerate our we We to So hope be it, time. continues with all that continue but

Neal Dingmann

guys. Thanks good. Very

Operator

Robertson we have Cowen and And Charles from next Company.

Charles Robertson

little A for question. of John, bit follow-up you, right. on that All

Sort rig to What of years the is an BOSS X the fleet your think moving sort on or next over X XX. you of size rigs? optimal do BOSS for

John Cromling

we've wells the on those pipe That's point, places Charles, see could we lot. hard as feet the breadth we opportunities right kickoff with. kind measured loads the demand accommodate on they around working that a are be not a we of continue, laterals, batted XX,XXX on are from for for that of wells the question, and rigs plans contain and to deeper jus depth that We how BOSS that now are to to XX,XXX also but the very only longer because see would

forward, now that's is they eliminate go necessarily guess right either. we as won't - doesn't change but we direction are to will the rigs as that it my So the it

Larry Pinkston

could unless to. X of We're don't customers we market the work we that we overbuild, a kind want that Charles, for rigs at want of demand in will see think have, substantially. kind time while to to one our can of always market that picking BOSS this we of able We program Larry. take is the and what looking to care with be but a deliver we make our We'll area. we up at continue

number? is That's So No, there a to basically. going be magic not. market-dictated

Charles Robertson

And little All right. the Can see you the and into interval. for question Wilcox on new Wing there or...? go you prospect, more the what here detail, the Frank a

Frank Young

the so, sand will Because we're recover drilled tested a or of more Bcf well interval. gas-water little don't we'll the in contact - that. yet, in was add Sure, well range produced on fault unsure this that. a deeper block. that of from sand even #XX is XX are a the and - from And in we second probably the additional drill sand The producing to fault where to Wing have currently maybe, another producing that that sand blocks that have and already somewhere depth deeper than

point, because of And it's wet the first Wing that that a that deeper a I how concerned $X so day, XXX almost pleasant be making at this it. sand a we surprise But has can't over big going that, be. we #XX were million really was can to All tested been oil say is I barrel really say day. when could

it's So a very been nice surprise.

Charles Robertson

the you Okay. you in you area, well still Are And do early in are in here? just the obviously, results. Where SOHOT think very completion nice the the stages? design

Frank Young

are still that, going monumental. our No. some We wells. a few technology, always new of on divergent my eye keep evolution things that you maybe, this opinion, far side but completion learning people like on are things not the in their the how the on There's other and pump fracking anything down and curve. is are how point, At

we're completion so down on far pretty on the the And SOHOT at curve learning side.

Charles Robertson

And Wallow be having other here sneak final on I in likely - areas considered? would any Okay. it looks if question thoughts can the most into the it one guess, area, rig, additional I any Buffalo

Frank Young

rig add– rig. a it in up could Western a Buffalo or of chance the in second drilling wells around the also we also additional Oklahoma the play. an rig more the will possibility have add on rig areas could other STACK Wilcox. the We we drilled end - now And in Later on, we have end Where Sure. STACK could into and that going up fourth Wallow. fourth

run currently places too kind we a where our run we come different economics going have of rigs. plan exactly but economics up of just several additional here rigs, those we're additional can of all So we're different will Larry and before and terms and showing going long going to Dave our forward with weighing through the in

Charles Robertson

very Alright, thank you much.

Operator

further [Operator time. at you. Thank this We Instructions] no have questions

Larry Pinkston

us Thank this thank for you, everyone want Jason. I morning. Again, joining to

not out spring. of next months, have then. But a We the if late of see the Thanks. over will road on and many to good - be you well, couple hope

Operator

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

Unit (UNTC) 4 May 182018 Q2 Earnings call transcript