AXAS - Earnings call transcript Q3 2019

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Operator

Ladies and gentlemen, thank you for standing by and welcome to the Q3 2019 Abraxas Petroleum Corporation Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speakers' presentation, there we will a question-and-answer session. [Operator Instructions]

I would now like to hand the conference over to your speaker today Steve Harris, CFO. you. Thank sir. ahead, go Please

Steve Harris

you, Gigi, quarter Bob Abraxas third to President and earnings conference welcome XXXX are CEO. the call. and Petroleum Thank With Watson, me

VPs Chief In have you may overview. to Accounting of Bob's questions Operations after Officer answer addition, any and our and we have available Land our

any immediately this is like of statements. conclusion the could that I would today's contained As and those statements fact webcast the a call of reminder, in during replay materially vary statements are after a remind statements everyone are not considered that to these from taped results call and being will made be available historical actual that call. forward-looking

the to our would results described could Securities our these vary review cause Exchange that Factors releases. Commission, in factors filings encourage and actual the I contained filings press in everyone to are and risk with in our

the to I'd with over Bob. to call turn So like that,

Bob Watson

maximize based increasing that out at Thanks to period-to-period the our Steve. and conservative; We Realizing are volatile stabilization afternoon. current reasons, can and Good bank's to time our of being sheet loan be to a shareholder of and our step our part RBL. be very determined debt value, balance first strategy our term and our some needed on of redeterminations needed for number reduce as liquidity. reserve commercial we reliance

$XX a current in commercial loan blended lender creates a of of After several banks lien bringing lien under a months group of creates develop X.X% second and capital nicely of that our second in we delicate cooperated approximately approximately successful to with million negotiations, cost who liquidity. fits were RBL, our of

to flow have mid-XXXX, conservative review commodity actually move flat, create Company oil initiatives other debt current prices a or and no slightly with position to cash generate if in to the act designed we As a puts shareholder can stay not in cash free at until within now flow years we much ahead. capital keeping This program better upon grow production value. and the forward maturities

the status. obligations our mentioned, Company production the basins XXX% by previously As very both few asset in base to held of has in maintain drilling

be December with board intent our number overall of of going Our objectives. in review scenarios to meeting budget a the corporate will forward, maximizing

subsequent We will conclusion at report the guidance time. and that XXXX

capital XXXX fourth and grow Our less was leaving slightly end budget million, generated ahead of quarter. essentially pay the schedule slightly XXXX minor will $XX guided capital than free of for used program for at third QX cash The completed down all of quarter expenditures liquidity. and our of to debt flow the and tag-ins [indiscernible] be additional during

We've I'll year-end have flow. $XX we looks like approximately on approximately sales, $XX $XX to closed the generated spending Our assets will non-core you leave and approximately in cash in million do million million. math.

in added the but reserves the over producing the have wells completed from developed XXXX. seven and carrying and production will uncompleted proved We six in wells Bakken to Bakken new and Delaware be drilled in new wells be will four in

reducing During drilling period efforts concentrating wells this completing, no on expenses. with are we or

fast For all providers example, Texas West operators. as operators, all as electrification don't means but been difficult has the by of our act no initiatives, for in electricity as oilfield

of expense. which precludes costs huge its per electricity in where have to without expenses. the electrification our half We electric as work $XX,XXX and considerable diesel HXS are gas for ourselves than a now operating has lease to rental a at of we as about generator companies of fuel have the initiative month More the is savings for taken cleaning pads much hookups. our do electrified Every possible pushing and uses fuel generate pad and produce it,

supplied Power per by companies electric $X,XXX month. costs about

XX% on company-wide of than own. more quit to preferred flowing LOE. that amount wells lift pumps also artificial will concluded We've method our savings the of their jet our when pads, our current XX are For

We LOE and position reduces amount approximately payout. capital are pumps of now in month, LOE more. a an mentioned savings X% previously These company-wide them for to XXXX. month well, generating an per per a $XX,XXX XX running remaining buy the This or additional instead projects these of further to by projects at minor

the our The fake the Partners, we Petrie financial numerous team Company Abraxas's as not for policy board to advisors, do Due and our management market news enhance and options comment on many. value. Please people assets comment. to a ask to not to or or rumors we any along to evaluate of with quality continue of shareholder have our me have

With that, I'll questions. open for

Operator

McIntosh our [Operator from Duncan And Rice. from first question is Johnson Instructions]

Duncan. Your line now Pardon open. me, is

Your line open. is now

Unidentified Analyst

actually this I his And afternoon. Sorry, is a Good questions. Austin, I associate. few guess, have

timing You lines? on in turn activity highlighted further your the Bakken are any just six production in Will wells of in terms remaining three you in And held XXXX. be there all thinking up Delaware? how

Bob Watson

we in We've three commitment the announced that Delaware. wells only have

have capital in And we XXXX, winter planned. that we time Bakken, so be the set those for fracked program weather permits this We spring. yet have those only frac are as don't three not ones that as up soon the six our the will but in

Unidentified Analyst

those is the you is interest regards there is. then activity are And -- there properties? continued the follow-up in all M&A market? to any Are any Bakken around question And seeing all you

Bob Watson

have As those we're that continue. numerous to I and our Company. that position said our have, continue balance to the are management and negotiate We'll that a options so much Certainly, with continuing liquidity talks evaluate that. for financial better board now do in sheet we to advisors we and the

Operator

is from Noel [Operator you. from Parks question Coker next Our & Instructions] Thank Palmer.

open. now is line Your

Noel Parks

$X think about some over maybe weeks. tight but XXXX strip, the of been has And hedging couple I in wondering what these otherwise, this We of months, was has the over ranges. of questions, pretty a about you guess crude Just spikes had -- last few trading at couple last point. I commodity risen but

and hedging restrictions So, do or lien thoughts have going forward new second the requirements any hedging? you have any on does on

Bob Watson

The more from our our than no first bank lien agreement same the the production group. of we've last to projection requirements are the hedge, report supplied reserve limited we are XX% under or loan as and bank the that PDP

are we being, year report, we then currently look locking supply another the hedged we barrels. at effective time additional So, and this the will until the reserve for of at be which max at end will in

discount differentials almost natural impossible the on of just Going very predict. forward, those on and to in Texas basis of hedges -- now we West because tremendous are in to gas, difficult consider the right the Bakken because

Noel Parks

pumps? like impact had that already be the you're in my third good about? is of -- a future? buy And and your the LOE the more be both Electrification if Does you it quarter. calculations in are downtrend to will those on that looks what incorporates know items of talking Or own will able right, already seem

Bob Watson

be in of most will started the impacts the some future, the in quarter. Well, third but

We during protocol. were also our wells devised while shut but fracking Greasewood We we four in cheaper we've had minimal frac did protect a pad, September cost. protect frac bit have little

we one, use work. We'll have going to forward. protect it cheaper because costs So, big frac the seems the continue to don't big,

Noel Parks

you were Actually, that different from before. doing in what's involved that's what protocol

Bob Watson

sophisticated any of Well, monitoring we're spikes. to just periodically with Pete, up pressures wells instead on gauges, pressuring of want add you the that? any

Peter Bommer

But measuring been active would going then of with plan and so that, now. especially we events. pulling have forward plug forward, we in and plugging that's bridge Yes, actually it. past against and about temporary effective our more and the pressure pumping in think yes, going that's be kind No,

Noel Parks

go there -- sorry if I'm And Great. else? something

Bob Watson

No.

Noel Parks

and from things Okay. in And be example, the and wanted near past inventory pipe, thinking cheap to buy just to guess costs, you Bakken that to it's said I you was of do hungry, do in But the good the this as supply to you the I year bit is the is term. companies what pretty service next and time you you're makes for stand completing much a maybe wait assuming going is on get? maybe I this it ask this wondering as where land about environment sense were see? as in as course won't a Or materials, future sand in think think of for for service of

Bob Watson

big buying for service costs. the in and a We do a we've drilling our of for into additional program year. bottom inventory buy pipe sand. sense time, reduction year. We next pipe. no by much an gotten getting ahead have afford in next more to much think costs of is and we which not is big so Sand and to pretty we're savings expenditures factoring they've Well, there don't cheaper we're can't estimated day, already LOE company not anticipate in done into any close for capital stockpiling or the But

Noel Parks

on you the last more in terms one remind difference of recently the just you And thing, about acreage your legacy could me Delaware the just in acquired? acreage sort versus the royalty

Bob Watson

of some even legacy Yes, called at are so high for is is X/X we the XXs, have our one XX%. NRIs the in royalty, right acreage

last the throughout XX,XXX is at have the bought NRI. All our we three at is our in acres so years of net average that XX%, stuff plus right XX%

Operator

back would this the like At questions. remarks. further Steve call Harris you. time, showing turn over Thank closing no to for I I'm to

Steve Harris

call. appreciate in conference your today participation We earnings Thanks. our

hours. available in webcast website As our I posted and be start, the the mentioned at replay on be will will XX the transcript approximately

great day. So, thanks everybody a and have

Operator

participating. concludes gentlemen, and today's Ladies call. for Thank you this conference

now disconnect. may You

Abraxas Petroleum (AXAS) 18 Nov 192019 Q3 Earnings call transcript