CHK - Earnings call transcript Q1 2019 | Expand Energy Corporation

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good day, and welcome to the Chesapeake Energy First Quarter Earnings Conference Call. All participants will be in listen-only mode. [Operator Instructions Please note, this event is being recorded. I would like to turn the conference over to Brad Sylvester. Please go ahead.

Brad Sylvester

quarter. good today and and to for XXXX and joining you operational Chad the call our discuss first you morning thank everyone for results Thank Chesapeake's financial review Hopefully, our investor you that to morning. posted website we a have chance presentations press and the had release updated this our to

expectations, today cannot as future other will statements reference that and from by help to place that our such and forward-looking information, including to During should the comparisons to may we forward-looking Please with recognize results undue by underlying Please which filings. required confirmed update which be this and you such on facilitate morning's differ in non-GAAP financial undertake including and consist cause will and any earnings are identified note be factors statements no our periods forecasts, beliefs, the except SEC not across measures, reliance assumptions that goals, to law, regarding materially actual discussed making factors also performance a call, some applicable we in of statements, projections, statements that statements. of duty peers. refer number existing to We statements, forward-looking release statements. our there

are we teleconference turn for call Nick a operational for Frank For results, corresponding earnings our release. and any reconciliation our GAAP Lawler, a Patterson. begin and on turn non-GAAP nearest website measures Frank the over Nick and in With Dell'Osso, today over review that to measure call found the to and the Doug will call, we before the use, on our can be me Doug Q&A. the of then financial

over you now and with to I teleconference will So that, Doug. the turn thank

Doug Lawler

Thank and morning. good you, Brad

Chesapeake I’m been. will and month, excited sixth I as had my Energy as today ever anniversary at Next I record

and strategy, shareholders, commitment external the future vibrant of to been and consistent years, six drive very challenges. the strong I'm our excited I'm of for and accomplishments and has top about or proud quartile internal and Over performance the tenacity regardless Company. past our progress differential trajectory of

we the progress on operating and our our During debt simplification business. these improvements and shared and reductions, of efficiencies, capital profitability transformation years, obligation significant have

XX a our row, we earnings Importantly, estimates last the or the asset of for street quarters exceeded the portfolio met in demonstrating strategy. and have strength employees, consensus

to and and performed and executed consistently The our we and diverse of we with sharpen strong shareholders. for to and capital execute scale value our base. are projected Company and sheet results. financial improvements ability, to operational to our creation operational expertise on accelerate delivering foundational have We asset from value cash and yet our delivery generating quarter, first combined Chesapeake will rate the balance and positioned have drive as improve priorities, In efficiency our continue greater the business again continued in strategic improvement our

asset we As time no, short will exemplifies employees Valley positive our at asset, level significant rather flow the now we our talent year. cash of a project look than new energy, an at performance, in change and conviction deliver period asset the this to Brazos of be asset our

Brazos completed rate $X a million have in more with wells of last On we and improvements drilling of of new portfolio, records already achieved penetration in number new months, and stages per Valley, the capital in our eliminating the by integrated improved day. and we several highlighted approximately per into rapidly techniques, During asset cost three than well. $XXX,XXX cost completion fracture well have stimulation drilling

assets, future As capital program will average we with efficiency basis. you our would record and the further expect in full well as know track from an other on you and achieve our

more approximately oil a in XXX,XXX and flow Valley day and and We the with and to last approximately our of a share to mix oil XX% to compares pleased increase total in XX% year. total there capabilities quarter ultimately we importantly, returns production moment, compared of remain on-track production reaching transformational generating We XX% additional deliver we production. production of oil guided February, are net growth production as year-end along the competitiveness XX% cash the absolute our in believe averaged XXXX. improvements in growth portfolio. the to-date But, Brazos believe our last rate already improve are in in focus continue we of saving our barrels of entire mix, improve our further We cash opportunities in will on to XX% oil first change per our flow to that reducing year of is our of generating cash with in We the noticeable production to quarter, and absolute capability. fourth costs representing flow the in

look Chesapeake talented look our year, with I the to forward you As We and while additional environmental teleconference leadership. to to the now the safety year. Frank that, we of With our more operational ahead more are creating progress priorities throughout and of over to cover employees for asset delivering the our and rest maintaining sharing turn detail. value on our and will strategic level focused

Frank Patterson

Good everyone. Doug. you, Thank morning,

days our XX made little portfolio. our As a team Brazos mentioned, we very over into with Doug in were has pleased integrating Valley progress the just

what I'm We are far. we lot pleased with learning so seen have and a

of reducing XX% a results choke we management longer extremely delivered and in where will are this is This have The pad turned integrate believe are in and have with XXXX On pad wells. feet we side, already only late get April, combining fuel oil better. the used represents to per and in XX already rate completed results barrels XXXX County has and expansion sand production hour and whole of And per on started of maintaining the -. completion grassroots first is XXXX to length have seen day well production lateral to laterals, start average reached a in Comparing with completions in better Burleson volumes over the of Rider pad, XXXX our the redesign line we February management from of stage. the encouraging, promising, early County initial field, completions, of over flowback. production barrels fluids our this majority we and rigs area. Chalk. wells still the working to Once results historical Early in Austin Burleson true to production proven operations modern Xst, climbing. choke uplift efforts When XXX% Easy the namely were took in by early gas in of the this in improvement over represents other window the part

window we an expect will Ford rigs picking volume quarter we our altered which oil result cost at Eagle of XXXX now our in speed have around beginning We in course, projected are dropping or all transitioning on increase and volumes third four right schedule. with quickly the the oil in

flow you production. through significant margin the our operating projects As Valley be an a we continued This position we look steady result In cash Eagle keeping throughout free this prices, continue positive flow at to and on on feet asset now to is Ford team or legacy, forward high progress. Brazos our year. generate cash in a to monumental level current strip for year our updated South Texas,

and the spacing through capital of resulting last improved implementation focused on XX efficiency South the team markedly oil improving appropriate production design, in Over Texas declines. months, volumes inclusion has the consistent

see opportunities focus driven on optimization base and have a strong more very And base performance results. production available well the New we side.

formation the reallocated tunnel recently That and redirected drilling the to the from River this will began to in necessary the Midcon, capital to later year. have and programs. have in basin, areas and transition away We rig it Niabrara Marcellus adding Powder our week

majority you enhanced the the As last value completions of the will unlock longer may in the this full leaseholder. excited of some field the wells best team to and next basin. the Niabrara move completions paid stake Powder are the value the in River The performing believe of of laterals the play of in is underlies We of basin. recall, that phase the unlocking to our

from in the production River hampered resulted temporarily which quarter. and weather operations have rebounded Powder Our reduced delays, during first operations

in we and back approximately barrels oil. As we BOE are normal XX,XXX day, averaged XX,XXX per and of April operations exited including have to our

As our new Monday pace, the well grow a PRB Powder per by RRC of weekend. rate, down new we play approximately was first a BOE barrels XX,XXX single of second reached in well, over The that XX% highest and at barrels River production was over This pipeline recent gathering which RRC XXXX enter per five oil a of XX,XXX BB BOE this today. of steady hour oil. produced our week. XX in oil new rate of on oil oil the a the also pad represents day, record week May, including the This reaching driven production day, pad continues to rate well

initiated and in-fill which be majority drive which tunnel new the continue down efficiency. highest promote near have is will the will CPF, facility to play. program our of of We our also first of construction A portion that costs oil XXXX drilling production

the feet the record side day be level day of a achieved game continue production Marcellus million a longer and Marcellus. cash daily of which shale. the XXX Appropriate during We spacing, record in On average changers production per first resulted laterals from operations, BCF flow of generate significant continues gas Chesapeake our to in gross free a X.X January, completions in of gas enhanced the cubic net to quarter.

to commitment well a a to activity capital improved in drop June, program, with Marcellus our Given plan rig combined one decrease our the continued disciplined anticipate budget rigs performance in in we second half and drilling in plan. planned although year, asset this was the for of only of in in original means we contemplated the these drops Haynesville, the three gas averaging our expenditure

to the be redeployed River. earlier, capital Marcellus stated Powder would As the

well development results, two program day. exceeding flow XX highlighted cubic field feet a the in initial pad by yielding continues million with impress recent to results Haynesville back two Our

out on help a taking our While month, driving Haynesville increased are drilling XD by use pause our anticipation in and year. data we our rig production an optimizing we competitiveness newly review a will the we acquired And remains of finally, additional and high-grade inventory next the to Midcon, base in to which costs focused activity drop interpret from operations. of team increasing this

As look we maintain we performance. which over drive capital we teleconference the With to of we and that, to focus to forward on believe momentum established assets, in our I to continues turn look our to The XXXX. in will oil will grow allocate while year, the majority towards our review will our improved delivery. margins we Nick program continued the discipline substantial rest continuing to quarter-over-quarter financial have capital

Domenic Dell'Osso

Thanks an first good everyone. quarter measures. we excellent in to Compared street morning almost and every had estimates, Frank

BOE per oil total of in production as percentage we Our and recorded and trend highlighted, four Frank best driven a adjusted operating EBITDAX the margins primarily margin oil years. which that production Doug strong lower generating production resulted continues, higher by of expenses, have over in increased

our ago. oil XX% Doug quarter for stream to the XXXX first production a As XX% and highlight, fourth year the in was oil, XX% quarter compared

While first are for traditionally of highest that EBITDAX year, quarter the the recognizing a is it's quarter we important simply are price. not improvements our to margin function the note

and oil the Basin, to the a and will shift Brazos continue throughout mix Our total. River XXXX grow contribution to Valley XXXX have as greater Powder

to forecasted and structure oil exit capital with full commodity pricing. high year oil flow this to premium than Chesapeake XX% while year low cash deliver be by the that $XX margin prices EBITDAX to expect the structure. We around oil, is lower assets mix to our lower for result per The meaningful the will year. content BOE its and line reaching greater due cost Valley program improved our Coast access of last currently Gulf margin Brazos our bottom are over per approximately is $XX to BOE oil is lead and due the

driven Our our cash first in improved approximately over million, expenses. improvement $XX the structure GP&T by cost continued operating by quarter

to reduce certainty We expect gathering our by River of flow this Company we production are improve In our We $X expense to field of Our and contributing ultimate restructuring. to downstream begun in are driven the in our line oil several expense increase will improve system. gathering per oil our GP&T we was costs. per management equivalent contract XXX with of than the estimate XXXX. in further lower the $X.XX over have back XXXX in In relatively the lower delivery, our asset GP&T Powder by efforts the downstream Brazos XX% connect XXXX and that midstream over Valley working and approximately in to barrel midstream going the and sales average averages are than XXXX forward. more low item providers GP&T currently and improvement million third-party costs these barrel

this release quarter. we beginning press this moved gas method morning, in and seen accounting for efforts to of As our the properties successful oil

in changes rate the we exploration the the these due you statement expense, expect method under income interest would As moving a compared are efforts form cost full the whole our in in cost an G&A compared reported have with DD&A reduction when to to the CapEx will our financials impairments to increase method less cost. also successful of and expense, in primary

previously the to presentation, resetting answer our detail this brief happy filed the change. on X-K I XX-K Brad or will have along our be and additional post with XX-Q accounting website Our questions to we and changes. would any further will

from result, this morning we interest have a As the capitalized and expenditures which guidance previously G&A cost statement. updated income moved capital to

Offset of XXXX. XXXX $X.X by line for guidance interest reduced to we $XXX our cash expense new new billion a expiration result, in CapEx G&A $X.X to by approximately to a billion range million As expense. a

XXXX also of debt notes the approximately April higher of our senior we or repaid closed floating due million million XXX gap borrowings with XXX XXXXof XXXX. given side extension flow asset free we the XXX notes In maturity sale maturity approximately exchanged early closing the balance in senior under we was pending, in tailwind prices senior year. sheets and or due million April, oil This in a along of per facility. On for approximate cash X% XXXX new using of year. quarter significantly are Importantly amount a XXX very million manageable for proceeds XXX XXXX notes principal credit and million maturities

are and borrowing maturities. market Valley front facility. generation for our flow look Brazos million $XXX We $X On sale XX, billion the look of under and X.X additional cash refinance facility the capacity asset billion as to liquidity have of to billion attire conditions smaller conducive to we March under credit X.X credit Chesapeake that approximately under we maturities

oil We barrel in of gas our per have net XX% $XX remaining in and robust XX% production respectively. a downside protection and per hedged with XXXX place portfolio of prices $X.XX with approximately average natural $X.XX and MCF

XXX per We $X.XX XXXX. gas per barrel for barrels BCF and and at hedged of also $XX.XX MCF XX.X have per oil of respectively million barrel

continue approximately to and Additionally, close, in of six we of a have improve. locked Gulf XXXX. great in our at $X.XX more pricing. on-track start Eagle Cost To see to for we pleased are barrels invested oil as Coast are premium being captured and are grow, cash return NYMEX million volume and to into for roll flow approximately from production continue pricing off a savings capital to Ford our XXXX, WTI our is Operator. significantly to we deliver

over We turn now will call for questions. the

Operator

you. Thank

The will with Freeman Raymond We question Please the will James. from first ahead. session. question-and-answer John Instructions] [Operator begin go be

John Freeman

Good morning guys.

Doug Lawler

morning Good John.

John Freeman

couple embedded what of are to wells more and the just the progress now significant some it in short reflected less is Brazos wells a leading million You thought, time kind costs have $XX now in Valley previously online on color still well where than in like made looks you CapEx if a guidance and going you reflected us are allocation? is bring your current about spending you previously Can of what are on terms that in the edge now give completed expected. current than and

Doug Lawler

on Frank both sure, comment I and John. Yes that. will

at way Valley asset about and As and been acquisition had into we work WildHorse. would Brazos opportunities portfolio super help that you and excellent elsewhere we by and going with it and the That would business in significant learned we still XX% efficiency, as we it been costs we firmly stage could be Up done in that. a there laterals, additional further have probably of down. our costs said, mostly of particularly per testing and and completion recognize approach are XXX,XXX Brazos are only comment will of we shared, completion a is that time, with some that efficiencies what contractors this to let what see with this of are drilling on which this have well drive some longer to there There to we I and excited the the at the point with represent that point. stages that expect we those that have Frank that because there Valley to to opportunity point in synergies our the is XX% with apply take portion about time, we $XXX,XXX our

Frank Patterson

we increase, length the were you to deck Historically, to press with point pretty John, the around I the feet. that our XXXX lateral substantial X out in release have lengths plan. which like And just Slide today. lateral we was put XXXX seen to

those for to somewhere around the out are year. feet lengths We XXXX lateral XXXX pushing to

We that. on schedule are way ahead of

on can then with put that game design. and getting Chesapeake coming basis Our are working costs see changer still Energy as you XX% big are that completion stages a said, down we methodology away. the of of Doug on kind preferred about the the is But

stage a count per increase seen have We on day. XX%

If you probably this looking forward. X.X you at think we range of Eagle million that at can going million look a lower bit We than eight little year. to Ford are wells, it get that down

cost some then Chalk, want are frac you would We of conditions time. at see whole that X.X types extra little those that bit have to jobs. to when X.X an that causes bigger wells And say there. go some looking the a we Austin try to a require I we we little probably things mitigate to bit

will and a very lot Ford. Eagle focused We are of going to not on XXXX drill be Chalk, Austin XXXX

John Freeman

and looking at to any to know to probably Great. for plans of all you are bid having mentioned sustaining third-party then system, on just a fleet? I to believe you is want Valley Brazos going update built, that out system the I put that And WildHorse follow-up, gathering

Doug Lawler

in Yes. to relatively third-parties We out thin. to that to did expect bid put

for through are logistics We working and a of bunch that. planning

John Freeman

I appreciate Great. it guys.

Doug Lawler

Joe. Thanks

Operator

Please from Biju ahead. The next Susquehanna. with question comes go Perincheril

Biju Perincheril

morning the you yet, have Can I say production you progressing into know through total momentum how like and have see next Hi. but anything guidance don’t the schedule the all. Doug, in you you Good XXXX. you of year? any have lot going looking looks at quarter out XXXX fourth about a the momentum oil

Doug Lawler

provided our actually activity a commodity Yes. recognized it what response it. our good you have Biju. lower is we a of and in would When free be we free We portfolio. rig as Sure. had I'm and of acquired first into though and certain WildHorse have flow been flow some count pursuit asked That estimates and we possible. generating glad integrating rig question cash quickly as to prices neutrality with cash

continue had to program efficiency one or just improvements significantly the and capital Nick look are XXXX rig so to strengthen and As the inclusion gap and geared the how largely at metric. that narrow single we highlighted, looking not Company in anticipate toward of we entire for further activity, activity

we us As noted as in drilled using for well to Frank capital and recognize help to have completed, it’s that from because rolls we we employed rig Company we and as into position those wells the that are that about advantage XXXX of of and getting terms more accomplished our greater as very are continue old historical excited competitive efficiencies lines and in XXXX. every more improvements a efficiencies, this though,

are that revised asset. yet the that XX% out we have we circumstances profile are towards year rig activity, the a recognized spend or encouraged with directed XXXX, guidance capital for under oil while capital about and we not XX% and the have So,

growth that XXXX similar to investment level You could in expect well. and continued of

Biju Perincheril

That where looking my what modeling. versus I at follow-up numbers helpful. came in was was, very And least at is QX

much of just some Eagle on a well I positive you the is you of was One a wondering, oil wells breakdown have surprise just Eagle downtime in improvement Ford presentations in productivity of from minimizing gains the the think the done and… on spreads touched give lot Ford wider was and of of about minimizing can legacy downtime. areas work you quarter I and last of the broad you how versus And if the Eagle Ford, on the talked

Frank Patterson

this Biju Frank. So is

think did on detrimental really you spacing was the down lot as because I that recall, hard wells. say and the it’s went to spacing determined and in of really work ago a two we years to

our that are work, demonstrates it XX we deck. a what of that as there on seeing So slide is now result actually Page of

those the now for to We spaces we field the spacing type the changed maximize type from field. the completion believe re-spaced and have we and have the for design appropriate the fluid the of also recovery to rock each

wells, if gives So a think baseline, on being our parent back performing as new the on years. when at a That those first real that that it was wells reduces and early the we use parent look about sign. but production wells rate decline field and wells developed also at are is positive the of and XX% you the volumes us wet

manage wells, are on So wells the and of we we base into new to performance early performance seeing the are base good concepts and on then good the downtime. they into applying go a go once our technology lot

a you it's think discretely go I out. of all, break combination don’t in So it can and

think and what we for in optimum office a this are with managing the results. engineering the doing here field is is, the team great in basically really job I field

Biju Perincheril

you. Thank Great.

Operator

Guggenheim Please question Partners. Chandra from with be next go ahead. will Subash The

Subash Chandra

anniversary, the outside. Dough, sixth one this happy thanks. different Hey Yes, certainly from feels

the PRB on wells levels oil the for look changes growth few provided. And I the and if was have PRB year, at more congrats this I that completing quarter. activity think you outlook a previously which So when curious

Doug Lawler

see and continuing at are we Not and as been this at encouraged, optimize way look in to and of to you this the a track as trajectory done of of would continue here, record putting results that very are and just at would I Company encourage you us volume this point excited continued have there. should encouraging. are ask pad, recent drill think super those number the some look than Frank activity we rather with and schedule of the the of We and improvements total the Subash look path on time. about we production some pad to rage that recognized, that is some sharing in performance improvement upside where is the time to recent this it, going. on in point in the directionally excited, the we pad we at we noted we are you be well good at the are indicators rather

Subash Chandra

to this Okay, And and going and am and my In a questions correctly Brazos about follow-up. you enhancement, on I are it. production got forth. few jam so that thinking spacing I’m try Valley in But looking at these all so

flat year gets this pretty driving lower Marcellus, if So fairly an in that oil paired for oil that Haynesville it's towards of volumes by and growth type next cuts activity production with XXXX, is XX% eye you year? that sort then

Doug Lawler

is correct. Yes, essentially that

Subash Chandra

require what rig you drive Brazos, have would that Okay, to growth beyond more or… activity so that

Doug Lawler

we noted It's expect flow by actually the fact this program seen that actually the as to the asset cash capital be doing that neutral efficiencies in we or level capital positive reductions achieve more less there and year. that to or expect with slightly

that capital is based more expect are how achieving that with the of do of we less So direction and recognizing. to indicative on we efficiencies more the

Frank Patterson

is Frank. this Subash Yes.

bit color on give more Brazos to just you Valley. So a little

operator. XX by of been was this activity have over the now. previous the We days little working predetermined a drilling Most

So already we have the at to was to what planned basically go. correct direction and want trying course been taking we to

full our seeing plan not yet. really are we on so And

get not the up. and the tweaked happening take reservoir That we have need months. of course completions our to to characterization also that in our will couple taken next We be

are close. website, the the the there, on was the wet wells, about where So and budget we it's wells planned

been because Chalk a delays behind surprise the of bit the real But Austin wells. base what off has getting is We some production. are little the

do have a that large really well the to and the which trajectory can because We can and base then completion production production, if here. change we number We pretty the think move my to of the changed were is rigs we drilling we program lag rigs base type to bodes said now, really part we or going to really four want. a do We - we do looks think what I exactly five right want I probably good. with said must and it but can on with that

seen we efficiency not So have hit yet. stride this thing its

Subash Chandra

Okay. Good guys. Thanks, color.

Operator

Our ahead. with from next Please Heikkinen Heikkinen Advisors. David Energy question comes go

David Heikkinen

you just the set Hey, Frank actually up question.

So basically, have into plus versus you in year Brazos that a will four year per well heading five of XX% with rigs improvement next in Valley think rig, coming? you per kind

Frank Patterson

David, also time are that moving the to penetration is what think seeing are long so are cost that wells we And with have So laterals, for same where you improve, lateral getting is a that that lateral. longer able we we the I the know we a basically - to are headed. been rate we and of short

you way. So increase about if just it is think XX% yes, that about a that

could actually bit us to out the wellbore I think that side potentially give drilling completions. there to is some opportunities a little I the of the be the still equation some room to go. design think on more. going The team other is But on working is change

optimize to and go still there I we can room think this I have completions. we think

facility get but on The not the we are now, will side. ahead other thing right is, ahead we

thing this a running lot faster. start So will

David Heikkinen

cost a So of you short and for foot that laterals. essentially a have comes per your the down long time lateral

I just was Okay. you to you that to Powder the a in right. wanted you'll as make sure same improvement program? scaled Do think get the see

Doug Lawler

dramatic see change been years working a the going Valley couple Yes. now. the to think I see of because you’re we’ll we’ve Brazos don't Powder for in

to system actually going when water field I production us to the development. on really the Powder on place, side think see oil think because gathering facility, improvement in allow the put improvement. that's will surface to central is and to The I we get We happen going optimize big the and the

our we of -- As in had consistency and the this development whether it some was and shut we on we delays. pipe, we’ve all when production. Wyoming. we're our it water, And now we’re call, trucking snows, and It down and oil noted of gets bad Once they all in the of really have get in. highways, shut

Powder, very in moving quickly. we're positive think direction I in So, a really

pretty We improvement because will improvement. not we’ve seen as see already there, an big good

David Heikkinen

gathering? significant don't winter weather next the So, as winter with model Okay.

Doug Lawler

year, equipment should the to have more crews pipe. on model and The be moving a Yes. Then next consistent get rigs is only lot completion. thing once the we’ll we and

Operator

Next question ahead. go Please Dingmann with SunTrust. Neal will be from

Neal Dingmann

guys. maybe out had Good bit Great just, progress, morning all. what asked little bit. building Biju earlier a Nice. little a Doug,

nice while done have quickly of WildHorse guys even You the job outstanding a deal. reducing adding

how So, outspend know full of XXXX down get forward understand, you had to going that not thus I times. two think Can broad remarks mentioned your next kind leverage. and the trying in more you in having talk it I just I Biju out. terms the you mentioned prepared envision year

I outspend year talk to it's Thanks. you about could around that. point guess, that how anything -- give getting So, next you’d more or inflection the about

Doug Lawler

Yes. anyone Sure, respect progress Company as we’ve been progress really I has that quite quite in think substantial. of the strong, would has attached been made and really, The there the Neal. agree significant to

we timeframe, greater bridge specific. been type productivity going As highly amount being and to the Nick flow XXXX improvements. pretty on the basically, and of we're price. cash for see And minimal are smaller neutral positive quickly narrowing cross highlighted, asset cash flow. we’ve generate in not In ability that to It's encouraged. that dependent gap extremely sales We free

place debt-to-EBITDA continues continue times for it. of be generate debt. assets years The and strengthen strong, underlying is Neal very sales, portfolio, quantum of And I’ve smaller that achieve to other highlighted for our as over free the and free current flow will what our very, through and in and us; opportunities the compare a expect we to neutrality, to the debt this put is you overall Company of way our essentially focus no looking very, And that continue or on this before, done look powerful, to assets that capital work challenge it’s major to other priority. net continue to of number can is that very reduce program, are improve. to And to And one that accomplishments for asset here with cash the our reduction hedges the other. approaching the to cash is business being We flow positive at continue way achieving capital past close. five is make our us efficiencies X it’s we it excellent protect progress to And, close, to outperform. quality continue

Neal Dingmann

looking then, of Okay. well, PRB, that well not with you XX% spoke Turner big the at just one last amazing oil. all rates, And one, obviously the X,XXX the only

the slide for mean, of at there far you acres when Doug your maybe look you give now -- XX, just to as type I So me a XXX,XXX you just prospects are of at or as -- trying Frank, all the looking sense see looking can but wondering get type of, large you’re if I’m only oil continue there is a the or that. size have play. a to that the again, we’ve not that sense entire areas wells just now -- cut seen these phenomenal behind

Frank Patterson

Yes, Neal. Frank. This is

high of at oil If you out star look where a all northwestern production of cut. is. the is that there central the on field put map portion kind facility That’s we XX,

those of are As the CPF, to our acreage around meat you that be get down into big wells. going wells

We're wells some to a stack. they them are a in high you seeing No. all wells to there oil U.S., pretty the when wells. strong out but other take X,XXX variability, day? really relative Now, are at Turner the stack be in And going look that barrels

you’re of field. part northwest that spend a majority on our So, time I going think of to out us the see

hadn’t to But, a we want acreage. huge, contagious. all here. to lose map will of put maintain The We deceiving available that few acreages the scale over position it’s as on because in is huge We Mowry acreage drill I kind us to Niobrara have also only a here the gassier a there wells and and acreage in area really and don’t well. is

running have on room well so And we’ll a we of left, into about getting excited but, to stack that now in as really, be able Turner. here Nio lot right we Nio the to because Turner of really the top I’m

day. may better The something other thing, equivalent don’t a forget see barrels than that we X,XXX

at there than talk why well, and about to to variability enough better every you encouraged and around just we're are you excited continued that. that the have are going may naturally, stamp enough, something say, it’s be X,XXX? improvement excitement So, we well but Well, the going

that either. equation So, out don’t the of take

Operator

from Charles with Meade question ahead. will The next Johnson Rice. Please be go

Charles Meade

on design when and I is this you could experiment more are fluid be when different Brazos to going you completion or to -- bit you I going Valley, guess And you concentration? the what think it you is led an to go we right if know to back is to elaborate that experiment with know, little but this Could design? struck lower you this higher is this will go close with volumes final or is your and a what design sand on guess,

Doug Lawler

the at at, and new the how what concentrations, it’s to continue reduced the -- continued levers we be I going just roughly will I’ll and mean, learnings we same what this look we’ve we Yes. know we learned way we're And principally we’ve Chesapeake, can And basically elsewhere. everything elsewhere same, on build that our days the successful -- the the take and fluid. how better it’s we Charles. optimize and from pull asset. with Frank get to to that. all work it’s improvement And

Frank Patterson

spaced think, Charles, things was out needed we one spacing the talk to I of the be you when everybody about to that this about X,XXX call wider this said and acquisition, Yes. to feet. we on

higher happening was rock, done WildHorse pumped is have fantastic that. fluid that every was, we bunch But, being of that there that. stage. the And a discerning of wells. -- ton knew was was this was We what and what need had And job done sand clay concentration, One, us. increases a causing frack pumping in what in and appears now because in of it those other. complexity is, long each wings, it we've away same content What does and and at the reaching and with done were shortens interfering really for a the but near frack amount the frack or with sand bore well those couple same used we've wings. a out fluid. lot less basically things content higher the at That concentration gone is the sand a it wings looking you

wells actually capacity because time once of water that able But really see a the took back thing the a So, we being spacing the it we these ton used. of about might be was flow to is, here. change, understand other important that's storage to

of pumping be the And and to oil jobs, cut. to going so, stronger period, have flowback going we're we're water, we're to shorter because able less going the earlier reduce cost to a have

maximize have end So, work some here? everything a encouraged we really seeing is we've can other No. think we're start. on the really, We the this improve economics at But, of the tests. on. the to I we done, going wells. probably things what game Are or good we're And is initial by

Charles Meade

mentioned some natural portfolio. of center And ask days the American of in Marcellus. then, Frank. market. But could get you. on trying that North really plays guess side overall to the few two a Haynesville I That's of CapEx your Saudi oily Thank Equinor the now news your you have up your to have XX% the and the reports to really eye -- into really been gas of in to bulls plays. XX% and team And about -- have I if great with working guys follow-up Doug, Aramco you detail, gas positions the right last dry your like are core CapEx there on that, other you going

what going not to you your in two play -- in see plays about gas could dry at XXXX Haynesville in you and beyond? they're talk So, those but how role XXXX and Marcellus, portfolio

Doug Lawler

two then Charles. the accordingly are resources more and world program got Sure, operator the Chesapeake accordingly. and water And develop sense, additional really those makes you class world demand we'll LNG quickly. environment. that on continue as gaskets adjust and mobilize, The can to a react makes as monitor Those pricing class, economically and build-out sense assets will

particularly strong our And well-run and conditions point we So, capital at modify dictate. they’re as field. and the corporately here time any extremely in and assets, in revise flex can economic super

Operator

question-and-answer I to like Lawler to remarks. gentlemen, and for would closing Ladies any this session. concludes Doug return our conference the

Doug Lawler

appreciate references deal value about and rate across have comments, to a performance today everyone's reflect great prepared want the And continue accomplished few our to rate we Yes. business In have the close the allocation shareholders our improvement think we Thank that something past approaching to of we you. we future. highlighting or the continues underlying and the just we really, of while how that really Company's pleased about. rate the see change to business, of I rate to I encouragement continues a to it's the and I disproportionately well-run progress. are improvement. the differential. over the And time that portfolio, organization made excited that going portfolio one of excellent years, And today. have And by several excitement to our that, are and more that's we our deliver I believe is change in and really capital

And please for So, everyone's time. Brad questions, follow respond if accordingly. we’ll up I thank and you there with additional is

Operator

has now today's you concluded. Thank presentation. Thank The attending you, for sir. conference

disconnect. You may now

Expand Energy (EXE) 8 May 192019 Q1 Earnings call transcript