CHK - Earnings call transcript Q1 2022 | 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 Corporation First Quarter 2022 Earnings Conference Call. [Operator Instructions] Please note, this event is being recorded. I would now like to turn the conference over to Brad Sylvester. Please go ahead.

Brad Sylvester

Thank you, Andrea, and good morning, everyone. our and to operating joining quarter Chesapeake’s for financial XXXX results. you call discuss today first Thank Hopefully, you posted had release yesterday. and a chance to updated presentation review investor that we to website the our our press

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

results, nearest non-GAAP on Nick our will use, reconciliation any Singh corresponding then Viets. Josh to morning a will Mohit found and and Q&A. call a we the For teleconference are be give GAAP overview this website. to we can the the measure open me our of measure on With up Nick brief Dell’Osso,

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

Nick Dell’Osso

want about the year and we’re Q&A get joining for couple industry sits the minutes shortly, the talking everybody. We’ll where Brad, Thanks, morning, a and seeing but I first spend good to today unfold. how to Thanks call.

closed and on We’re In a busy Marcellus, great these strong start. we’re Chief assets. integrating really we the off to

the are Haynesville the encouraged we we’re about for further saw acquisition, the value In team to in the upside. fastest see the we our elements expertise integration returns significant Ford, Combining in of the with to our Our Vine we free and program, we significant the opportunities see ours, in the early In the section Eagle outstanding drilled excited basin. of the the and unlock strong. capital results history continued through is team we cash on just most and flow. we’re restarted intermediate and

on to lower completed continued also assets our over retrofit emissions pneumatic Marcellus having responsibly sourced to as we having certified the our join Additionally, well half independently profile, our our program gas. and of way we’re Haynesville

marks We Chesapeake. quarterly quarter owned period The new in the Vine quarter in a record first the first the million setting assets. adjusted for we cash full delivered free $XXX flow

further million As cash the to $XXX efficiency, accretive $X.X cash billion. importantly, we’ve free a structures, of cost We consolidation free we believe expect in improve following and midpoint uplift our XXXX this result Chief increased of and transactions flow. the examples how raising capital March, of yields increase are close most great by outlook flow of the the these range

flow resiliency years, share free in and return share flow free a its industry. expect cash believe cycles, through group most inventory robust commodity to per free large depth the we what by Given and frameworks debt poised flow to maintain flow buyback the cash the per profile time. of powerful a a $XX dividend were cash anticipated of long be one program this cash free our billion our a with over margin the five cash adjusted combined peer significant of robust we with to Today, very next the execute for lead

our expect view this remains $X in billion buybacks pace first our share filed buyback quarter as undervalued, the and and of we our final transaction significantly the Chief disclosures facts related the program to accelerate initiated stock these month. Given that we the the to

possible. the stock, certainly it’s our of current valuation Given

$X We and retiring further free expect metrics the will billion early cash share. enhance shares, our will flow which our exhaust cash increase already buyback and would Board authorization our dividend authorization then continue approval to to leading seek and per

In addition our XX% year sits progress repurchase dividend initial to payment dividend on first XXXX. program, the reached our yield common share currently full our $X.XX for our around quarter and for

over In eager $X If the the macro five the invasion. is not in to at horrible you war every an to see like dividends it reaches over environment. to expect program, we this share total strip, next level, years. billion talk gears XX%. The include I’d repurchase today’s on end Ukraine about in switch we’re and pay and of

solve the of The citizens or consider the to an maintaining of without basis, We’re almost that are supply the on our is grow producers also interruptions. and committed world will believe it strategy left production are and resources supply to consider allocation to strong see to that where ensure will market and question demand U.S. is our should to resilient energy We needed daily into is we we the we natural When a by where rest Russian continued adequate discipline. deliver either further capital you capital grow and problem? growing demand. extension, not opportunities temporary, and Europe help eager even for to not

believe be affordable. to carbon low and reliable, energy continue We should

in high. they in to desperately have We each do highlight than staying the in signals our power to we U.S. that decades Europe term higher so believe and be near and need economic data the respond basins our very our inventory updated also of to these of and to our have slide They’re done prices. low deck inventory the spans portfolio, deliver the what We needed have our are extremely prices capital program. In much for which is at so also XXXX while

respond accordingly. Haynesville as to We’re ready volumes the for adjusted the market acquisition. will growing year-over-year we Vine expands, XX% be our reliably approximately And

through in pace. a the in program Ford Eagle the pausing at investing restarting We’re logical XXXX, our after again pandemic,

plan appropriate the to asset development capital redefine for this efficiency. maximize we As

length continuing to us markets, by our press New max Marcellus constrained out others lack discussed particularly underserved England. We’re for day, pipeline been and of to for every of at as asset access volumes by has

continue contacts counterparties with We hold as increase our export of market the which responsibly to to downstream also greater independently proactively discussions than markets, and to in supply in ways Bcf market very immediately we production hope exposure midstream discuss see best two the adjacent LNG in and develop Coast the the to and to to gas. is in government well as U.S. projects. than continues out market, increase complex we of the certified We’ve more Additionally, sourced these partners important Bcf X.X as LNG is Gulf already as the reached every to day, around our

infrastructure have the embrace and provide is ask the for not, a energy the will need any impact energy regulatory we to reliable, ensure lower and weapon. government limit we financial the for when legal would our can space [indiscernible] environment While as affordable, used poverty, support, and not we blunt see to like energy access to carbon to

and of to and high these to energy soon. actively see war the We’re solution in extension challenge by a hope the discussions prices engaged

prior be this of tackle unquestionably can prices no the an equation, recognize will important given policy While to was the alone, high Russian challenge in the part invasion. changes experiencing company the we Europe

in solve that we challenges. united together in play helping can critical the are a belief these employees Our role

over way Importantly, with a critical able of sheet, create and to energy our returns carbon quality will people, we a achieve to the Q&A. disciplined the balance reliable, on sustainable assets, in Operator our low our focused for all business. it truly are turn affordable elements now and

Operator

And Leggate go of question Instructions] of first our come from ahead. will [Operator Doug America. Bank Please

Doug Leggate

everyone. morning Good Nick. Thanks. Good morning,

Nick Dell’Osso

Good Doug. morning,

Doug Leggate

my question. Thanks for taking

delighted I’m not you going I think about variable ask dividends. you’d know, be to

it my if some I you so asset with we think I’m there. can done can I’ll that long Europe Cambridge figure Eagle strategy is, had you of the kind you probably it’s, the song. a Presumably the U.S. that. discussions where out crisis, as the gas $X ask would elaborate the or you comments And pretty on discussion, can’t I And what between but to to gap trying is your what we to guess the and as far. my So is like second forgive that how is we’ve I of of offering get sustainable me talking I’d well. you’re dislocation happened may love leave [ph]. question, sales I’ll to just gas curious down and perspective what you. curve Thank yesterday as be question. the just end point extent part the at around ignore U.S. like Ford your pretty That’s is sound perspective, on you’ve and guess basically Because obvious, I surprising to first between this

Nick Dell’Osso

Sure.

We was talked down – your Let’s said you prices gas talk question. about little first, we’ve them bit. first a

to gas U.S. three where come a and markets prices or it volatility weather should environment. a price long to we top that, has little in as should we’ve in There’s to with gas with above bucks prices environment. ample in on see that you lower curve. over general, years, adequacy But this of adequate sometimes the all of prompt a back all level deliver three of breakevens it’s persistent the the on that some The just this the maybe I that means curve go that time. drive be the think around is far $X month things so are, to like And breakevens it’ll supply don’t we lower prices now are recent that expect be for to above pointed around the end for below times, up see the be resources three curve. needed, country end we that, the really and too. of infrastructure high the which supply bounce quite couple And of below a prices maybe that that over if and long on as drive bit. other prices just the in have $X And demand think we’ll four above

we constraints the sorts have all now of right in Now, market.

are we those we all thoughtful our manage to production make need And be sense the face about so it constraints. how of in prices does but the higher,

we what that markets don’t production so get needed. force And constraints is into where do the those production can’t to higher is want to directly

not going anywhere, Marcellus, prices. it’s lower And if we in to anybody’s not so, for increase going production example, the so significantly it’s

a long persistent least at a level in pipelines those a they’re constraints of other the not shareholders, those path. those helpful And probably particularly kinds in that’s we for our pursue to will that constraints and think and create think access exist access think near of value equipment, places, the sticky to and going but won’t they’re whether to micro we’re so services, not we that on be Marcellus we time, And lot for so term.

are a so for to and they demand forces back supply to down should And going stay went but prices reasonable and come up will a ultimately out bit, level. they’ll more

that story that We price. That’s I was about how eight, world. shareholders world. not all to And, we’re or that don’t lot on strategy is And always is see the big to discussions all we a note shareholders there’s [ph]. with and really more Cambridge seven we going in Doug are including gap we yesterday have out from of a our that’s permanent we not feedback asked that we’re change says, there I’ll Cambridge. see So the with a the prompt with the that, or a how in the six press just expressing think discussions view just welcome consistent then around where

we our oil produce great stock flow free currently asset generate in our XX,XXX and that out that is share asset. Eagle undervalued. asset We’ve a Ford. Cambridge’s of the of lot Ford. about a cash have we a talked Eagle We view of Ford day the out lot a barrels think I Eagle We

flow billion cash of $X.X million XXXX before Eagle Ford hedges. of the after out in about generate we’ll the effect hedges, Just alone, $XXX of free

Chalk today, going the we And for the pandemic we’re to we you, We beginning shareholders. to we doing And so think will just down area, We value price of Brazos the of significant we the year, And Ford at asset talked trying that asset. program also legacy what of restarted it we with in which the the position. asset. delineating value Eagle wider field the in we spacing the about XXXX. up want is the oil collapse. to the were talked in shut Austin prove to how talked end full demonstrate South at about Valley our our completely that cycle during And the add Texas upper what accomplish

want think been the we we’re to, selling those programs, We’re the ultimately it That’s both the results or the on our if encouraged things. our we time. think this through have we’re saying, we development, in pretty some we’ve think of heads let as because value value the value inform the execute us asset going adding here near our term, of and to whether that by good maximize by on those but we And all down, just should of maximize to all of we about can way assets someone else. the of asset we

that. so in we results the second think going And to the about. on have in year to we’ll executing to And we’re, certainly talk heads program down have near we’re and our half term, forward the this looking of

Doug Leggate

so answers appreciate Thanks Nick. the much. I

Operator

The next comes from of question ahead. Portillo Please go Matt TPH.

Matt Portillo

made maybe the you to be your strong in free touch questions. my this taking share for price year. comment value, a discounted cash guide the on Thanks all. morning and given the flow start Nick, call Good to

Just curious, cash guidance look guess, it flow, the you at we a still for about call free as number I the of cash free billion dividends, at $X.X less leaves outlook. on the buyback to deploy. might improved comment think a bit in light reduction curious accelerating be I to about how program if debt of was versus you you able the XX

Nick Dell’Osso

It’s question, a Matt. Sure. great

of you’ve we a free flow noted. lot incremental as So, do have cash

going the on buyback. Chief requirements constrained cleared MNPI. get to with been of we around haven’t eager our pretty We’ve asset, We’re been the disclosure

to earnest. like and a going little more. very eager do be we’re, been helpful. expect able during And quarter get and will going quite been once some But we get said, transactions We do that’s the negotiated We’ve we bit with soon. a are, to privately bit and to I

I go That’ll little probably we our transaction, course the just following a don’t on reduction zero. for call that debt normal necessarily the the it as would date. we just we’ll certain happen back no bit year. to There’s have And go let in But side, that, a by that really through debt achieving it’ll reduction as urgency On priority we the today, happens. to beyond that. have happen outstanding revolver Chief any

Matt Portillo

evacuate provide on as to Haynesville basis just then congestion the of thinking a might little to be my in if door causing able of follow as widen a And the There’s you that stronger and color bit your gas opening lot tying queue down south context in you’re bit. further road the out realizations, we’ve for LNG up curious, Perfect. question, a well in a about how projects possibly little opportunities. the might a ultimately as gap more volumes into up marketing in seen

next moving curious So from expect the marketing so. or a forward at just and flow level, on around might perspective your we strategy Haynesville news the months a higher over XX what

Nick Dell’Osso

Great Yes. question.

several So where agent the all moment, free comes the we’re there’s, next of when we’re proposed that our one gas. a there’s over facilities And years. things of that’ll about and be bit today it are being the a happy all to we is the deliver new LNG these of built projects at

Ft We have Haynesville. in very little the

we’re have about we And to we send how to. we’re gas flexibility commit to lot so think going a and of about what that going where

represents. So, we a I’ll we’re excited talk out about about thinking Mohit what how it, this this you let a about about bit to talk we’re but more actually lot.

Mohit Singh

say that’s in Matt, this is rapidly said morning. Yes, I a addition obviously space. Good Nick evolving is good is Mohit, This what question. what a would to

because fourth you is is demand in come are that gas the our to to competitive LNG most of proximity roughly Coast Gulf and positioning we the three and going build for the of The growth there U.S., differentiates the excited Coast to complex advantage in from that will or that thing that at monitoring. resides closely – the Gulf gets is that the competitive us. market if that look Something us natural a

XXX% that this be to and point advantage. thing certified. that Nick And earlier LNG at referenced a it you as we looking sourced is of is of be be other will another responsibly again that’s a think competitive about gas The supplies, takers Haynesville coming RSG would secure our from that think differentiator are off excited very also are the users end some because having we

where very are about we sit. happy we So,

are conversations. news several more hopefully. We but want that, actively run to front different on in Don’t engaged that front to come

Matt Portillo

Thank you.

Operator

Next question comes Please Research. from Nicholas Seaport ahead. Pope of go

Nicholas Pope

Good morning, everyone.

Nick Dell’Osso

Morning, Nick.

Nicholas Pope

first, and the I to with hoping into Chief obviously quarter is go we’ve the of was This the depth. guidance. So you acquisitions guys a trying understand little bit seen could little

the that million kind like said $XXX I XQ reflects it for seem million, $XXX doesn’t uptick. all think of production. guide you It wired was volume fully

So, is where of maintenance of Marcellus in new of, to kind level I right kind explain think terms with assets is post of where kind things you the of now kind on maintaining and volumes could were goal you the acquisition initially those relative where I’m volumes guess hoping the kind what expected. of production are acquisition with

Josh Viets

This bit Nick. the I I And add I Yes, we’re feel let little with just we’re color integrating to, me acquisition think I’ll off Chief Josh. that. very good really course with in a asset. the that, is a morning, great do, start beginnings just that of like to of

in schedule, we as the at if till our we quarter. back little are, look bit we’re – and We a load

of to bit production June, our a the for in So, lumpiness we’ll think so, have, come XX to see assets, pills definitely I gas little XX XX will there. but those pills you of

quarter the other occurring Maybe be a we some in maintenance something as well. model. plan, have do couple third I out, just about So that just point may thinking party within the to things be

maybe more material movers and just bit. So bring down that’s occurred this right. And volumes one going the really then little of a to

XX pad about assets cubic produces there was the feet portfolio a a into As we that day. million the brought

So, was and barrels and equivalent. drilling pad manage producing. it centered day roughly we that for oil reasons the on in of just a the around a we with a ops shut site didn’t XX,XXX net could like We really risk time safely feel

that’s made, that so And come we volume a system. but all the going was that choice that’s into to back

Nicholas Pope

it. Got

Marcellus, like production sounds not like fourth is were transient just think math, not, transient, because simple plus in So I where and Marcellus but more it is growing of levels are. where my in was sounds it’s quarter, the on kind which does guys production of XXX it it terms you this is this math fairly

Josh Viets

what That’s expect for growing a is Yes. with lack export out do year. move challenging little going the But to asset we obviously the lumpiness the we’re between the just the as basin. two mean, I expect of to see the of bit of quarters, do to year. of we

Nicholas Pope

Got I’ll now. all clarification. the it. I Thanks off hop had. That’s for for

Operator

The next from Please question Scott Hanold comes ahead. RBC. of go

Scott Hanold

of and thanks macro, conversation a more of view Would to the the a underpinning some the at Yes, sort and Hey, does the if but hedging bit bit little back incentivize the with with just maybe all. some forward pragmatic months, you’ve program, you of do little still opportunistic months, more? bit that, you prompt being I these kind you ahead all it? you just talked little all? be plan Do have that about of a hedging hedge themselves, past capital around of know of on, your in a gas your program

Nick Dell’Osso

hedged may then I’ll XXXX. Mohit for else pretty we’re this and start add, have little something one to

add we it’s our cash obviously to more motivated here. big We’ve happy and been flows. tailwind that been to the been bit a unhedged see lot rise haven’t a to have we So

it put bunch we we now you XXXX, in a what And added see collars. there very disclosure. way on since doing is our the last tells you a can the what wide bullet of we’re we’ve now, For lay slide that down

so, really about good And we feel those collars.

four that to the Some and four of awesome a collars access is, floor which for as by have spread a wide have we’ve been XX. of done of full the XX to ceiling of pretty year

So go ahead Mohit.

Mohit Singh

skews I they the are which an these out, thing but you add locked swaps, in with trying And so attractive your are collars. is is what the we’ve of I trying think pretty at doing these it can lot to collars would prefer hedges. we through that to we emergence, basis were gives been tactically had on quickly do. an happy only I what upside, done I almost, forward, mean, with hedges you traditionally exposure have been is, layer in that we going still these to still figure the would Yes, to But to as the what protecting but downside, on able say regards a exclusive

Scott Hanold

guess to continue Chesapeake, follow bit can all a Got those it, and of appreciate mentioned the do see utilize in and some I little do were in negotiated some to buybacks some of some negotiated, you of an just to up, that buybacks that. Can more there’s as know, obviously say? And us private you that opportunity to what the ownership, my regards privately overhang you the deals. that in in, you potentially give and color behind

Nick Dell’Osso

our won’t market, sell But We directly. we intended wanted negotiated dynamics in if to if stock to those there buyback to wanted that on who holders put the disruption was sell. large place of that in large comment chunk with the when in make of ready, be trading to there’s Sure. any sure no the we we’ve a

interesting what and that’s is perceived things our patient. about the shareholders shareholders of from reasonably One them stock overhang we that of the hear been they’re in from, the really happy

returns, in we’re these that of of upside the now the to And things, so pending generating be cash stock. point return tremendous accelerated a elements, can great the buyback all amount

but while, a buyer. a sell to it any call totally overhang, could to want I so shareholders of there because these of them for to be perceived be think when we’re prepared ready a I And a number be

is your think – we’re So, directionally sentiment correct. I

seeing any size. demand today in for that We’re just not big

Scott Hanold

Yes.

management upside obviously too, optionality do lot its think is out is you stock just then mean, to in do but further as to a I move what up, they’re team like stock to need of Chesapeake I lot hanging address peers? Like that a a what think you the Chesapeake and, to happy curiosity, So get you people to said relative something of think think you shareholders higher? stock see

Nick Dell’Osso

Well, I do perceived investors. Scott. it’s in about challenge overhang talk a think mean, something that day, almost some that we I is every for

little in if base think, more they’re, that perceived the I I it turnover a are again, I’m a stock I had shareholder would today. our would think help. all is we say bit that probably that as sure of the And, But I they problem. shareholders happy when think share our view undervalued

we’re going how this towards it focused the on buybacks long underlying to drive represent to own. So, way assets value stock that go price the the that. a and We better think have all higher of we

We then can to they sell actively hold, our then sell to they if them to buying great, And others of we’ll if will buy and in stock some it want market. be the want us. from

make go to the a to should our price really retiring which of count, and cash per in can we’re about metrics should better continue we value that this going towards because on drive that higher. the to way the stock talked that earlier that much So, long at execute point share that share the all highlight is eager share

So, we’re to to plan. execute our continue going on

for what optimistic will to that buyback push continue price. and do for to going pretty share about We’re we’re our the

Scott Hanold

Thank you.

Operator

of question go Please from The next Johnson Charles ahead. Rice. comes Meade

Charles Meade

there. up Good rest morning, the and crew Nick and Chesapeake Mohit the of

Nick Dell’Osso

Charles. morning, Good

Charles Meade

to you the that Chief center question. Bradford look just guess, what at up that I your the when I kind central or about County. of, map Marcellus, Chief map, it’s of think brings have the extends into gravity assets your moves Northwest I one more, And table I in next

than assets, move you historic Northwest, been? time your you’ve anything where expected different some core from of as you you with these kind away as spent are So seeing what has

Josh Viets

Josh. Yes, Charles. good morning, This is

land a spacing asset widen by, We think make to transferable, even Let for to own things result just tactical are our a don’t little bit with proven we’re that’ll opportunities unbelievable It’s there’s couple little some it there’s to simply, better how reservoirs me great bit, assets on that little we and to you. but this a deliverability, think some we’ll within specifically which a about is are of there’s things is, I we’ve [indiscernible] designs. little a that looking don’t no, relative within steer Chief in reservoir completion I bit, point opportunities to cutting really We And a in strong set extremely do data than particular producers, around the choose and we’re at, and that. zone. the water. we well lateral. how contacted those specifically performance Wells that a at returns. so. looked it’s and the more that, we’ve The we maximizing of potentially, some existing within as maybe amount not, bit back Simply some improve the the room And convinced think improve operate, there. think answer and

Charles Meade

it. Got

the this as from designs. your Josh, how is existing, just things differently on So, Chief, do to understand you or how of this do your Chesapeake so existing you kind Northwest I is differently would just things move

Josh Viets

to us about, expertise the the have history rock rather than the using that we technical it developing think mean, into I it’s something I it’s expand that acreage that really and Yes. unique we’re about in, there.

Charles Meade

you. Thank Great.

Operator

comes of Please Wolfe The go Josh next Research. question ahead. from Silverstein

Josh Silverstein

a in for LNG side. a directly curious, of ability focus good capacity and talking down Hey, try guys do you growing lot about on these to to Haynesville facilities. obviously play have been able I the contract guys morning your Yes. to It’s the supply you be to guys. just of was to some

taking or to off facilities. update to, your you of these an at agreements give thinking might be potential able and sign take stake, just You equities us one about whether potentially,

Nick Dell’Osso

that do gain do Yes. a I’ll to us start but we’re too There’s to for of position where What going we here excited and lot and like will which the do on focused long something one. the a signing term facilities exactly exposure. we Mohit At of again, of land take prices price. really And LNG probably day, to want spectrum have really be something these diversification determine anything taking opportunity end Josh to on work that add how facilities. this very off, you partner that, contract. the about creating then is the world’s to with want to we of we’re in agreements,

over there there or big of is European in be you’d contract, Asian a between today of to so spread. plenty U.S. And tenor gas volatility in expect that that delta prices gas while prices the

good, less sometimes sometimes good, not good. maybe Sometimes

strategy diversification And a way about approach counterparties, and, time it, we’re it of but to about opportunities lot a through take of continue to we’re going that. the really we’re right it’s potential. so And that to excited seeing we’ll our to number work different about do a and think with to

Mohit Singh

only some not morning. Good angle, would Josh. the mean, is to diversification if trying of thing to I is into Henry a what we sort LNG deal I Hub, linked are from to as that’s add Hey, deal. the, is The diversify away attractive us. a index

arguments discussions what’s So amount. and whether it’s having are the or right the we internally is TTF, the

basis different the that is LNG we know, you another into as it sell to. way into our we – basis. And complex the sell – we exposure So production that view want that’s we

can dent kind think view, bag it’s to of we of these then an of price, agreements you XX%, to deal, through a So if or it’s index synthetic that’s from a of driving XX%, point I whether towards. of diversification it whether sort are what production, we XX% of our encourage LNG some maybe would link some

Josh Silverstein

looking since remains the are the been you that’s you And you’re portfolio? out it in lot That year over doing to oil have there management East what and still asset then not of a ago, helpful. have wanted something a bit year. And portfolio you guys a Texas little reemerging, Great. for kind in you see this the figure whether to or just activity of

Nick Dell’Osso

we in Josh, Yes, East have anything don’t Texas. material

Texas. Sometimes East on what an at, acreage there’s some you’re anything have that don’t in but material map rights maintain show we we that looking depending on up

Josh Silverstein

Yes. Thanks guys.

Operator

of The go question next Tuohy Brothers. comes Parks Noel Please from ahead.

Noel Parks

good Hi, morning.

Nick Dell’Osso

Noel. Morning,

Noel Parks

a forth. with trying been on I as seeing I on service and equipment And the maintenance, expect far you from I we time couple if I the boom had problems I’ve of and had the heard far as parts. how the based I’m back that of from course, quality just what so And to you’re One, comment we’d so to anecdotes this just quality chain and and been services field, of a few questions. of think what things had just and other some side. forth. producers, curious there have or hearing repairs as last slowness here as would on supply in wonder was what its reliability a maintenance,

talk table? you if particular and is more that That’d on could about basins where the that’s any be there So, just great.

Josh Viets

organization. labor being economy, is in last tight. industry an the clearly stretch rigs with over in where that broader I ours, like Yes, growth this think service we’ve added, Josh. And like is problem others. the I think, good morning, Noel, bigger is there’s don’t if a know mean, I basin any this much that when just seen particular that’s would say I I year, than

out coming being see potentially, of restarted. rigs and You stack,

so to going And say seeing lead less that. gets crews wouldn’t speak, inefficiencies industry, to the experience I we that get up, warmed or across of so generally any equipment are to some more that’s operating and as it. some

the general activities constructive that are trend we’re of environment with as price a anytime And a just ramping it’s in to think persist. throughout construct in I that kind a those industry. commodity going carrying have you’re I up, we struggles – think industry

of we concern overall a what safety we And constantly of course and all service we’re very try say of partnerships ultimately of is, that So on ours. as quality, huge a is then obviously that think, such I to it’s present cost course, top really, our I translates it’s operator, our do focus manage strategic into everywhere, would an closely performance.

result labor So, think of that. some challenge we an But find strategic as industry we of generally in. us some is, it partnerships term the just tight our from of are longer that shielding markets a ourselves

Noel Parks

about, talk stand how little with drilling on things Could what a just availability for across down sand And Great. bit you, you that the looked like? basements that.

Josh Viets

station, not college in, mine about we own really – that provides of we Brazos We is we’re operate the feel there. commodity really [ph] outside supply us own the Sand Texas. our in for of advantaged We just sources, the mine good at security so as an course, some a us our issue. basins with that which

just have not out day-in any a A assets a Marcellus that from it’s problems the we’ve necessarily that that created we just basin. that by we issue availability about the sand of mine but strikes which it’s there, location, drivers. ongoing Haynesville with to been just created point it’s had and any the operations like railcars to think, we us, challenge it issue Texas, places face bigger us, distance but to control, something for wouldn’t fight In maybe It’s logistics problems in I it’s our just biggest expected the it’s say lot for in varies truck you the of probably, some our an and day-out. of union the disrupt materially. glad interesting didn’t is

partnering And managers our service ensure they to retaining drivers so really operations. can about logistic attracting with it’s those just ensure and we’re that to

Noel Parks

a Okay. Thanks lot.

Operator

The comes of next Please ahead. question Daniel Energy John go Daniel Partners. from

John Daniel

for thanks me guys, Hey in. putting

operations a couple questions. Just

can you experience electric First, frac you the new on us generation update having are fleet? guys with the

Josh Viets

frac today So running we’re is this Today fleets, within roughly Josh. with fleets. five our frac –

to quality frac definitely, frac been kind like which One upon curves of the efficiencies, more you’re the we’ve some should course of in and the an there’s That’s felt I which to definitely it. that’s market, to used the end say I be have we curve, for site into the gas on equipment be But to opportunities requires the built, and capital learning tight, the equipment’s like the at see just within they deployed. of most seen those but be to of there. electric But would adopters really, and that is relying fleet that some one pumps theoretically e-fleets up expand there, were up more electric future. the a learning stride manage We of being in Marcellus. the generation sector Marcellus, definitely hit efficient, service first

constant our that opportunities the with So, communications of we’re business. to talking about suppliers. And expand additional in segment

John Daniel

do ever that a doesn’t sense? a could why are where be XXX% or Josh, make see operational you scenario reasons there you electric

Josh Viets

possible. would never definitely is I out. that It rule

We constantly we capacity the market. developed. be that to need monitor course, Of

time. is, So, be I could answer some in think it yes, the simple at point

John Daniel

Okay.

quick one final me. one for Just

about world capital discipline no decided to and activity anymore, do wanted could the that? Assuming ramp one you in quickly you you cared from here. How

Nick Dell’Osso

get said months assumption that’s about Yes, rig right after discipline wanted to I’ll you but, if a take new wedge, at I growth and and and at John. you’re rig lot start we think going you I we’re from a a world where in six big that think one, a care least showing that a people think appropriate, least. capital do up and That’s

So take it’s going a while.

John Daniel

me guys congrats you it. help. A Thank for much Got great letting on. very and in,

Nick Dell’Osso

Thanks, John.

Operator

the our I concludes to This session. question-and-answer Nick like remarks. back over conference closing would to Dell’Osso for turn any

Nick Dell’Osso

joining a for again believe thanks exceptional Chesapeake our the to today Well, I deliver premium market demands call. continues Behind employees, our what for valuation.

on We’re scale high matter. assets our focused return to with portfolio of

world for shareholders. the affordable, to the We’re free energy excellence into needs significant today. and to return generating desperately frameworks cash to carbon ESG of strongest the lower And one committed call reliable, have cash industry’s answering and flow we’re

dive deeper on we believe of and intend which to eager continuing great again, for and forward have our our shareholder year. this we in at And to day. our to provide deliver a to portfolio update Day, We’re into will what look the later host we you it our depth Thanks Analyst progress. a meantime, the

Operator

concluded. today’s has conference And now disconnect. attending you now for may Thank presentation. you The

Expand Energy (EXE) 5 May 222022 Q1 Earnings call transcript