CHK - Earnings call transcript Q2 2022 | Expand Energy Corporation

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Operator

Good morning and welcome to the Chesapeake Energy second quarter 2022 earnings teleconference. All participants will be in a listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today’s presentation, there will be an opportunity to ask questions. To ask a question, you may press star then one on a touchtone phone. please then question, your withdraw press two. star To is note that recorded. event this Please being like the to Brad now would I turn Sylvester. conference to over Please go ahead.

Brad Sylvester

joining yesterday. chance XXXX investor posted financial you you operational the results today. Thank updated and you’ve and our is us had to press Hopefully for and a This quarter morning. we call review on our presentation second Good Chesapeake’s that call. website the to Joe, everyone thank release

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

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

Nick Dell’Osso

outstanding we’ve natural our quarter improving Good morning our another We portfolio and our gas business solidifying for important and thank joining you in call. another around announced great our had and assets. step

efficient to integration cash continued Vine in in form success strong has buybacks. Chief business meaningful to delivering quarter, and very of development. a our company the The execute second generating portfolio strong the shareholders flows to returning capital capital of the and been our contributed and our We dividends our through and flows cash into

year-to-date from leading of in approximately make today’s of repurchased the fact, of step. to In we shares our just execution business reallocate common consistency our better, Eagle quarterly the capital continuing our equal have believe steps Eagle non-core Ford The allocation take of from to to transaction. strategy, We is future we not the to the shares Ford to a stock our capital result issued Chief is next bigger, restructuring. decision since to Haynesville, emerging the XX% to the becoming

pursue on better a to are foundation our focus Our and maintain and inventory, ESG standpoint. from attractive a which the overall Vine and Those has generate returns, making value. strategic and Chief acquire strategy an underpinned assets as balance deep excellence and we the for our maximize Chesapeake premier capital shareholder sheet, believe superior to pillars, served environmental

we the and U.S. strongly assets the Chief in macro integration gas As evolved the conclude portfolio our portfolio, and we ever environment believe successful of the into than has we that natural Vine the more premier have

finding to and possess Haynesville assets. clearly Marcellus the Our best positions the characteristics

to of centers, situated emissions capital advantaged breakeven premier low We and next operating the strong inventory profiles. runway deep have efficiency, industry-leading demand margins

names in when in our unmet differentiated a our our of profile in well gas see strengths presentation our returns both truly delivers is Additionally, position performance capital combined as is X in Each you this these on Slide with relative which and today, leading efficiency, space. balance operating capital website will with efficiency among basins. sheet the peer

With runway we all the capital of believe our Ford Ford, the gas appropriately non-core wide exceptional focus for a strategic doing gas some in of The not time a does have and and turn balance Eagle rock that exit attention so, as be allocation resources, strategy better great to on to path future, a could our asset a geography from of may company By maximize with compete the will in shareholder and simply order we to future human, look during Marcellus quality if our This we more capital process Eagle believe and and returns, across magnitude investors an become Haynesville. today Ford through characteristics; asset it with a to clearer now assets, we capital a several expect we require our both exit, take subsets is our our and assets therefore, has transactions. strong value large the will sheet, While of relative the our is multiple to asset, respect the profile. of Chesapeake the ultimately our assets. we shareholders investing we strength the Eagle will will to value our returns and of accelerating to basin. even

Our approach principles. guided will be by two

do First, anything to we our accretive be strategy. must

to cash be us assets will generated so approach, strong and balance prudent position Our allow not our exceptional out sale. these financial and fire sheet be flow just in a this the of

to our will the capital enhancing Second, returns program. go proceeds

As it deck, allow by the margin. names you’ll capital will significant framework see This leads better. make gas our to a slide in us even our already returns

As of our the have some keeping with Since to at beginning consistent transaction, program shared also Vine capital stated we the constraints, that call, and treating term from in been we’ve rig flat. the Eagle We’ve aimed primarily Ford relatively production Haynesville. at six we’ll this the Haynesville begin facilities basin. short the gathering reallocating I away the from

to our we end week, of intend seven X% closing, year, count XX the markets balance you’ll across Slide to we increasing XXXX last has say gas-weighted production to sheet, deck, increase rig access to from the definitively year it by of match a the five, assets, of plan LNG, to As each path allowing and we these the the identified only to is XXXX In can to where by the end growth Haynesville we’ve our half to year of X% profile, clear to see performance areas. us returns in deliver company from our Chesapeake believe capacity critical in who XXXX. second Ultimately, deliver to end ESG and growth stood capacity expansions.

call direction the this open in about strategic questions. excited are and We’re the gas or sector. for investment to premier opportunity we’ll that now the we sharpened demonstrate opportunity Operator,

Operator

question [Operator from ahead. Hanold come Scott RBC with Markets. Please Our will first go instructions] Capital

Scott Hanold

Thanks, good morning all.

Nick Dell’Osso

Morning Scott.

Scott Hanold

Good morning.

in to the a at and Looking it use you areas? in a guys distributing but door, about marker your I cash? some Ford, two it, core asset. it’s cash into are big on that or multiple kind implications utilizing on of to you’re do You look number strategic is shareholder questions. getting the make of that put about generally how at talking the framework, or we’re within talked that of things billions the sense the obviously your dollars, direction, two, think to when you and does right that other When One, talking tax coming probably bolt-ons pretty what that but about going you billions. about aren’t Eagle it; think mean, speaking

Nick Dell’Osso

Yes, great question, Scott.

the a probably here first, will with a answer us what us for I’ll explore exit implications about We’ll for to details could here thinking side, exactly tax start that the an There’s the early away from talking On and it’s lot buyer about those little how tax to work. be. stay today. universe

I of more transaction, As guidance. a give it’s than noted, I it’s to kind likely just think be probably and that to early little one so

cash so lot devoted think flow talked buyback we’ve buyback. pretty continued as amount We and a significant our returning free a proceeds, to a through today as to through about about billion the in very how execute lot value well attractive increased $X our that we’ve capital we’ve cash to and that. means sizeable clearly talked we on an yield have about of we to shareholders, both power a On to what us June and allocation,

than is that. market so million the press million $XXX We’re higher to update up to last total, that continuing we’re and to which point, our on nearly $XXX

would to lean going we’re the allocation a where today, valued is an hard buybacks. capital that from bunch come towards of analysis Given pretty sale proceeds asset from

they our asked Haynesville so stock clear we you’re out to buyer, we and raises would need, buy a create in past been assets, really about have matters, you pretty obligation undervalued You also even we our We’ve scale the a that do in you think non-negotiables about run and something. accretion very be attractively lot over and Marcellus a we think designed shareholder that no that bar. We’ve buy bar protective scale have to and great high value if something. higher. the really achieved valued pressure, consider if or are feel we creation, acquisitions, that just a talked is but that price When we

to we continue you we’ll the getting our model so reinvest been capital look, Haynesville a the to business market analysis simpler So running your capacity and growing Haynesville how now to is are position this, our in share in the which opportunity run Those have think return and constrained. Marcellus. straightforward position The in you allocation way at have with the in a pretty are is or choices, shareholders modestly capital it. when that’s and about the the fantastic three maintaining we of Chesapeake Marcellus,

analysis shareholder pretty pretty that’s we again, allocation capital that think staying So what by maximize is can on focused straightforward. do. we’ll that model, We tight value and

Scott Hanold

great. right, color. All Great

Marcellus is to relatively is thinking as that, opportunities, you on do that post-XXXX so there path modest know, beyond and through the look in trajectory of capacity the with When XXXX? or longer basin Haynesville, you that a the follow-up, so at XXXX. look when Marcellus--you term, production, idea you think Haynesville beyond growth flat there’s you not the my do ton a start like Haynesville you to growth the the focus As I maintain have about and

Nick Dell’Osso

yes, second but will grow the to there think continue XXXX. will really something beyond we it’s to over answer grow. determine at we have important we rate ability will be to Will The to we to is capacity the grow, what question grow time, is

point COVID when a the our Haynesville that to over of Marcellus moment, and out You last over in expand is What to low. during the think how time. going referenced we’ll I pay competitive pandemic growth than always attention In also from that function we to to really hard approach opened how when so out the Marcellus, were gas said, How would the but there was of look That our couple we generally we’ve we’ll we production, rate on lever, those take and that beyond to that basin have Marcellus into ability then and prudent in higher to that shutdown, from fill low came the growth having where of and an years, confidence have digit current at XXXX. digit end do and referenced the prices were disciplined single we less line position we’ll from that grew we’re to and was grow are. been those that. go how grow opportunity, high to the able in that that be prices It’s is a assets managed gives of we up we’ll takeaway I step rate constrained, that is exit softly we really in gathering gas - and capacity that of great treating and are and we in and be opportunities something about growth able there predict the single basis is to from advantage to of the ’XX. capacity grow through opportunities environment basically an it, ’XX facilities, a and us as end ’XX we’ll to the should a

Scott Hanold

Appreciate it, thanks.

Operator

will Bank America. go ahead. Our of next Please come from with Leggate Doug question

Doug Leggate

everyone. as two questions, I I’ve it morning I Nick, frame consistency Thanks, of good guess strategy. got would

as the some outstanding talked quarter, have given and changes, Eagle today, five-year the Chesapeake on to plan the these to I first us [indiscernible]? about unsolicited if and negotiate just that the pretty that cash I’m frame discussion for this. reaction what was of obviously as as so to best is to part for think have Ford be, you guide is was this probably changed out yourself an here? to flow, not important but Last about what wondering trigger what so Is you guess be laid I against thought? Maybe look the like of out is could approach, turned that the value it wasn’t view significant kind to it’s returns it to you question successful free what as a my think you I expectations going something not else you as you your well. would program important, guess, Was [indiscernible]

expectations changed, your what and are in terms value? what So of

Nick Dell’Osso

my Sure, do think good morning I best I’ll you asked. what to Doug. answer

Haynesville, Ford, asset wanted presentation with You pretty were pretty I knew more there. We potentially individual level was bit Marcellus, fuzzy voice intentional. that each on a start the this which and We own decision in the its a highlighted in and think as a successfully came coming your Eagle lot - out our assets of June that was quality characteristics of highlighting of to we soon.

Eagle of a good generates clarity its on as the job own. I did what think have bit investors that better to think I Ford - a

year. asked of You about results this the

with allocation for make Haynesville out We’re Yes, are how tremendous model year. a is have free this the by it we cash - pleased can in going how weighted so that, our the far a about to we term of no lines and a Eagle the can attractive that to quality the us into Eagle integration those it focused over the like assets going of model. this Ford fourth a that Chief the to know this. on give program Ford decision complete turn-in it assets as so thinking that those and long quite we Ford nice is bit with all really capital what be the to a actually of amount of and time in changed Really, and what continue being of a position Marcellus, better. XXXX, allocation in about and about two assets there’s momentum capital which that’s seeing and capital think together show the to allocation of time quarter, super we comes capital fits is think looks it volume Vine has model flow. about strength are Eagle high and we’re pretty we question But we generate the just a so and quite The pretty coming is better the we how the make shown heavily

has changed allocation than great we’re to You know, talk that in with a and really beginning us going not about clarifying a capital good refined lot Eagle we’re other if forward. strategy the Ford, model be going more to

Doug Leggate

Nick, Sorry have unsolicited approaches this? had my to press, you I for apologize for and line, but

Nick Dell’Osso

leave We all we’ll calls kinds all that so that. about comment time, things the get of just Doug, with

are. we know those some don’t calls, them if of valuable, probably they’re Some and of

Doug Leggate

you about follow-up, thorough and can My debate and you I a we’ve Nick, hope you hear buybacks. okay, again me have variables know had obviously, versus I,

seeing was your but would for now end and the organic variable? to favor words free debate flow, in apply thanks. going are now cash there, variables to you’re on redeployment the talking level value the about it of as about Your stock pivot looking, was it into last proceeds of same other and buybacks an the Why the harder you’re versus share it share not to just buybacks. the was over leave I’ll price, over in I buybacks we the that call,

Nick Dell’Osso

Doug. thanks Sure,

I’m You it. sure discussed we’ll a continue and have this bit discuss I quite and to

our a - talk that approach. that continued quite an that. few have know about appreciate here all to We the of approach is We above investors of that we’ve

today, like approach, cash doing stock moment. for to in beyond is the we’re valuation undervalued we towards we’ve profile capital maintain what to about have, the going best our go an is leaning proceeds, with today, to that the We’re and buybacks. like with the we about our given think going and the to and where we’re we buybacks announcement like shareholder, mind But we to keep should we incremental talking obviously this see all-of-the-above that think the what so designed approach what an and return open returns way company of we

we’re of cash grow price of to it’s this I Obviously think the great time. dependent a over that’s fantastic, dividends the a pretty and variable, attractive commodity quarter there’s opportunity those nature think for we see are paying - out stream investors.

Doug Leggate

it. appreciate I Nick, Thanks

Operator

Our Zach JP next will with ahead. Parham from come question Please Morgan. go

Zach Parham

the for Hey shares You’ve back guys, first revolver thanks got buy of buyback, to kind come follow-up to maybe near on room on for to to with aggressive have draw on you’ve term? thoughts planned back in quarter? term this the you continue the do the near so revolver buyback. in Eagle very been taking to far. on my draw sale, outlook off, the I shares you question. just buy with Ford the on Do proceeds just buyback plan buyback--or some the guess thus a the Clearly the

Nick Dell’Osso

good Yes, it’s a question, Zach.

significant pretty driven a a free amount so the cash company, for free cash expecting strategy. it’s We’re no, return flow flow of

Zach Parham

just and Haynesville. follow-up a it, the on Got

near and Just it’s your those. You on talked in XQ the looking pretty going start there assets? a on alleviate give us what’s Haynesville midstream about to grow when flat constraints at term you with some to your guide, for a you little there and could the more quarter timeline of quarter. partners Can over working maybe color

Nick Dell’Osso

additions is our lot over quarter quarter, are and capacity steps detailed so flat a follow things can these is presentation on that we’ve of around the on. few projects. It come will A what the Haynesville slide some--you in in small

different a you neighboring have treating constraints treating an these use existing gathering capacity, to which of will a in will new agreement system offtake of it the new modeled so we’ve expansion or and you this, offtake have a embedded There’s a either the or expect for have it see treating you with bypass out last treating. and the are for things allow line next noted come so online at several at you we can level, different you and As some to number takeaway capacity time, projects, we steps that you year.

Zach Parham

me. Thanks all guys, for that’s

Nick Dell’Osso

Thanks Zach.

Operator

will come from Matt TPH. question next go with Our Please Portillo ahead.

Matt Portillo

Good morning all.

Nick Dell’Osso

Matt. Morning

Matt Portillo

question balance Just a sheet. on follow-up the

and and think we to I should still the to guess into towards heading were excess the with continue to flow leverage to trading are pay and the revolver cash flow moving possibly that stock’s more where ability to I with today more free and XXXX recycle the buyback, down start expectations redeploy obviously the is the continuing free or about cash that view be thinking you profile the one forward? buyback comfortable towards beyond.

Nick Dell’Osso

Well, we’ve here pace? increase buyback may Will do what opportunistic always clearly depends result. market we kind opportunity the us That then do and in may or of authorization stock larger We saw buyback that that. the in lot our us been and to flow past, to willing second in lot, cash ability the so free We quarter about and the and a that towards an not. work of had you you recent can deploy in a saw the as access of to at on we be chunks. happens sellers a

our to a will pace, going it. at that be the the bloat up to buying do a to is to This signal We revolver. flow be here expect trend. balance I we’re When that flexibility for straightline not buybacks. have cash free not sheet that is financial applied then not would back

not bit this balance sheet later, the think a of I In purely could draw on working should revenue from. relative settlements comes quarter. notes timing a timing more this this we is a That remain in highlighted function rock of they - That deviate that morning hedge flow and is quarter. no, hedges cash it third That have pulled would quarter, so our out a the first see of comes a when point so and purely short some did revenue us term issue, that just something is the as addition, free normalize commitments you in solid will as to I settle be. capital month that--and our

Matt Portillo

Eagle I and follow-up Ford, exposure of guess Perfect, obviously here. of with a dry the pure question, the you kind have then divestiture gas

market with to about how second particularly into then, forward, bit. Just but just curve about so the thinking as balances moving curious Obviously you cash loosen how you’re how LNG, especially between of bit looks now dry become gas start some oil long revenues a the thinking into ’XX a hedge and might of a curious hedging a the wave XXXX, we ’XX, approach of and get quite you your more of are protecting you strategy of flows, a road strong, those play. guys and lose given pure some in might as the late strength and heading beyond

Mohit Singh

good consistent Yes that. the through is take this Matt, stays cycles. hedge morning, I’ll Mohit. The strategy

rolling we some view eight will prices hedges, attractive that’s were We’ll to lock that a layer we Our on eight opportunistic those of were to we go want as consistent lately at hedging. that able but for remains firmed is basis, we’ve is did and rolling costless keep done monetize - at keep that in volatility the kind look volatility very more What to to and upside basis. quarter we looking where what quarter the you seeing opportunistically in. it more windows that can just view on we looking significant that’s a be collars the time through especially up, and

going that pretty more are would Some about that. have have beginning forward hedges what we good that of and we the legacy have say are so in tactically I place, we feel off, we hedges put to roll

Matt Portillo

Perfect, thank you.

Mohit Singh

Thank you.

Operator

with ahead. question from Please Goldman Umang Choudhary next Our Sachs. go will come

Umang Choudhary

that of areas program, you one sale? program. basin on the is first Chalk how the on Hi, the the and for Ford. capital on decide I future questions. the which update taking you allocation evaluating in to was good were Austin morning, thank for Any my Eagle your and My question was influencing believe plans

Josh Viets

still total so wells the only in in half brought of the is this point, still really At seven Josh. morning, early in the we’re early. year, good on We’ve this program. Yes, first it’s

learn on just specifically. the Chalk came still bit second Our is we we from half the first to that well into well still Austin couple so weeks, so that of as up, the a get quite in last year program cleaning just have

Umang Choudhary

potential Then your in question, strategy, and second Haynesville. hedge walk hedges looks very specifically facilities bit because for I some growth treating plan on the you Haynesville that could concerns notice back basis of Great, differential? for the and XX% the helpful. basin, and more more the in the a your be there you basis us It can little are in like with protect that half. to to about gathering you the add hedged hedges already. Do

Mohit Singh

we this Umang, layer answer to whenever is opportunities short hedges basis a with always we to we’d for those basis, in. I’ll looking like Yes be take trying the quite not that. to trying one-to-one there but on we are is is pair where as the are market hedges It’s are and Mohit. The NYMEX well. our yes, to

Umang Choudhary

you. Thank

Operator

will question with Subash Chandra go come next Our Please ahead. from Benchmark.

Subash Chandra

morning. Good Yes, thanks.

we better so more cheaper, your out gas the the on the prolific, hand, here you question First that about capital to Haynesville Ford but term? capital see because so as do in how I of of shift is the of on think one advance you Ford the what of the the efficiency, to Eagle sort sort do near the sale, are hand from Eagle are because balances much in are wells other margins oil; think intermediate wells

Josh Viets

how about you returns allocate Well, and and the this the today, out at capital ultimately the choose actually the think decision. our see this addition our capital capital, in still might enhance the assets, to what’s feel returns, even in that’s only going that’s and we We and really we the Haynesville horizon. to it’s look in in the to we you margins commodity returns to and expect oil when in as near really term, prices are Marcellus, the we far shift in superior look at good guiding efficiency

Subash Chandra

Okay.

Nick Dell’Osso

shows you measured you wells to our the of and bring today, capital time. by just that track relative the new slide We’ve all as there. amount our that proud put really a capital this on, did Subash, production for in record of efficiency from XX We of we’re deck assets gas that spend months

look our as can You well. portfolio whole it at across

asset gas While charts our our asset the efficiency just Ford efficiency, capital good. capital has off Eagle attractive is

Subash Chandra

afterwards. Yes, come that I [indiscernible] impressive. might back on

and The these sales-type looking there game how other sort much to of ask fairway, there the think--is as for that in market you sum was huge LNG, agreements a are competition of and sort zero that? you’re if exports. for - for Rockcliff, Athlon future consolidate how don’t those someone these some player the and do is to of know, into for I you I it question privates to place sale know for their wanted LNG fit there do you’re a position enhance Haynesville, is a for LNG

Nick Dell’Osso

good Yes, those questions. are all

really still the about LNG excited opportunity. We’re

pricing pleased responsibly than other or the what I it’s just deal universe. to means towards on point differential, the in gives contract credit LNG from about on about as sourced - us. surety We’ve LNG gas we best those we’re does the step a a this deal price. need surety world on didn’t you is recognition It is for stay significant we’ve how to if much we do domestic get release sending than with it Golden a how Pass. and deal you to TTF good to the strategy, first that with of a pursue We’ll to contract just a received contracts. sell there, it it’s can’t points. talked our of made announced on this of gas diversification and details it still that of about continue you’re price from gas the priced pipe great flow, to about you we of think we going we of better LNG to us get is something go we’ve transaction responsibly very into good in this saw you We a LNG way. price and it give some unique would and that for out a lot a the focused putting think You buyer that think think so standpoint internationally south, here, - do we done sourced both an we it basis, think gives a a and gas, producing What’s pricing so

the a buyers to five, to and you all way a that? to a you’ll you we be standpoint. from get you inventory from you be what’s operator, need large, they’re gas from understand you to that a buying LNG are have of over that the we world. something XX-year that preferred if to think XX, so be need deliver, best an do also So of depth quality When great need inventory to need to of a responsible, You inventory be into of environmental together, you there seller contract, but stack quality standpoint resilient be need

the into projects have, the the those right we We’re to have that that strengths to so of a increase doorstep market on can all ESG connectivity in competitive today of discussion. There’s you of play the overall directly a there position are facilities, to amount market. the quality we we and of our the strengths imagine good operating it and depth certain to increase tremendous works efficiency have connectivity that gas, as connectivity of and inventory, facilities, is lot that

Subash Chandra

queue. jump Okay, I’ll in back thanks the Thanks. guys.

Nick Dell’Osso

Subash. Thank

Operator

Nicholas ahead. with from Seaport Pope next question Please Research. comes Our go

Nicholas Pope

everyone. Morning

Nick Dell’Osso

Morning.

Nicholas Pope

where the seeing you progressing little that, four your I some mean, your that now maybe bit--I transport little was we’re in, acquisition, could benefits months operating that how bit I into guess plan, a hoping to Tug about on of than three, footprint Hill more the a of integration, you’re the that’s talk larger costs, relative and Chief talk guys costs.

how progressing curious of kind acquisition. Just on there things that are

Josh Viets

Yes, is Nick. good This answer morning Josh. I’ll that.

You about really what know, we’re we’ve seen. excited

for We’re highlight really identifying but pleased teams only four with opportunities. of and number to together A have months maybe you. into things a couple how it, the come

seeing of seeing the One owner really the common benefits them just within system. gathering is of we’re a

flows of a was gross have to and XX [indiscernible] gas another. drilling with with feet I to provider what with realize cubic that’s that available have where Of directing Then date, practices. in we’re was we what taken side gas before, so just per operations, City, utilize acreage flow incremental working in drilling simply to ensure of a the system realized added gathering the that could over center able day about midstream we’re two Oklahoma overview on that Chief remote since then course, improvement that’s to to we’ve by we’ve just our is the our already sharing and to capacity, complete also, the our companies itself. here million on drilling about day just done starting To already side there already a really we’ve common and as at X% look done one optimization footage

well things it’s still tie of couple things complete. would to have Just few back We The a so financial but but really a gone well. highlight, again really, gone together, I to integration, have say far. systems essentially really end is

Nicholas Pope

that’s Thanks, appreciated.

are two level in Haynesville, of near formations here and split the current over Moving that is split we other asset Bossier curious the those you the what think activity of in chart formations. is where in expectation two optimal the targets this the showing Haynesville. those there split of you and terms in provided the Kind understanding term between to of guys what and the

Josh Viets

Bossier; in we on the be in going we’ll Bossier. XX in fact, the that the the to plan. geared Haynesville foot still Vine had towards in XX,XXX that about the brought a heavily Bossier year There’s lateral We’re earlier the drilled like We or so in program. pretty wells do

so great it geared three and continue prominent we’ll and to because acreage, as we’ll as a Again, at that Over the across XX take on we’ll towards be actually looks our to Slide just portion more that of top to best of and but day, North the you that plans. assess cubic the the about months, there if hits development feet and gas place first databases. public Haynesville be soon X average incorporate America, were Bossier million across into to it’s a more going that’s greater right the the wells

Nicholas Pope

had. it. you Got I Thank all it, appreciate That’s everyone.

Operator

come will Please Tuohy go Noel ahead. Parks from Brothers. with question next Our

Noel Parks

minutes contracts be XX longer ask wanted your about you’d the about I deliver just it term maybe XX, and LNG giving to service into operators confidence a the you bit When that plays ago, few good environment a you LNG Hi, five, morning. to mentioned how thinking. were out. talking there years

As a in there basins embedded do LNG pricing some some see what moderating, you ever-intensifying just and be or looks particularly assumptions portfolio you scenario scenarios peak if of gassy inflation the we I’m service thinking that have and rationalize cost about of or and particular? on sort in a you reaching environment other, like, might just wondering, sort the about of then consider in the of more you the the cycle one in costs hand it on do an think

Nick Dell’Osso

inflation, how that past about capacity up. how XXXX. Sure, up inflation others the a is really the pay here. to attention service over so these prudent I’ll cycles, showing upstream how responded bring that, market. the being with frankly may they’re last, not they’re showing We theme talk and to and in industry, prices and making in take chime they think here very with rational Noel, there and depth about months, been healthier. very in the dissimilar not providers it in has to probably decide incremental have and XX to and decisions higher But they close at incremental it has disciplined that’s capacity obviously when call has in rates things to We about and to capacity big our often It’s

to some seeing also than seeing but albeit are are slower cycles. we inflation in additions at capacity, a scale past We

cycle works service will performance, continues our way healthier the bring on the out choice. a margin suppliers great will they we structure There push Overall, more always performance, providers. our it’s has We We of significant contracts, remain so operator symbiotic to our that a money it does. for in the continue. well to be people I working an than so way and seems with We be That’s relationship make past. and us. great therefore have market, think relationship. had, is it think it great we to play and the and when very achieve we capacity that but to

Noel Parks

Great.

Just up while scenario, you’re term the longer or pricing maybe where, share risk structures especially for talking on long term, don’t to have cost you the a contract about you scenario where receiving so exposure, ahead maybe, on production top side? that, there following side, that foresee the line you what when do we’re have is ability mitigate cost on the some

Josh Viets

too maybe in to Yes, point is pretty getting we’re service not to we with contracts the to think is look not should what tight, really like a today. the we’re the Generally, obviously at month and It’s market any in. looking service closely well is to look this into sector, oilfield appetite movement just Josh. think We the towards providers, working pretty longer as of being service seeing There’s this generally beyond out just six out. into still Clearly, ton seeing potentially that term contracts. that month future. service predict quite about it’s so much our environment you’re the we’re capital not at work of the hard simply what But had side. regularly injected we’re for further be months in documented a talking I I bit

Mohit Singh

to Obviously margins if you firm the variability. can that Josh is healthy, absorb said, again, of very is may it time efficient, are the robustness kind I’ll but add we competitive, our the Slide which portfolio as allows have the you refer track Nick view and X of I is to your which said, in an at a then inflationary if operating portfolio cost you inflationary Noel, pressures. what same it’s closely, you absorb because, which to back environment,

Noel Parks

thanks. all me. That’s for Right,

Operator

Our a Benchmark. question Chandra with go Please next follow-up from is Subash ahead.

Subash Chandra

Yes, thanks.

you X, some between you Marcellus geology can the guys sort to So impressive things give the that just you wanted here? an are Slide If and results. What opportunity--you control. analysis, do of attribution possible drivers know, could

Josh Viets

is with the the are and it we we’ve in we that obviously so Vine and down at to Chief so the But in business, premier that consider that we benefit. We’ve really our with same and to a accumulated. our rocks, the manage clearly ability advantaged the starts Marcellus what to works were we Well strengthened and operator, early be our the to in time, ourselves comes acquisitions, capital. really that Haynesville, movers positions acreage and only like that

also and be our technical performance with that developed, cost expertise the allows place providers we we manage partner in put Our we’ve have, able to side basins, you the our that these experience we’ve best up contracts in that these service Slide us X, how basins. put the and with that you that us across in two chart you upper together so providing end and capital gas with the efficiency left-hand see of to you

Subash Chandra

at in this evidence on slide? drive right know, the IP What the--you side to about the rates of looking initiatives

Josh Viets

rates. headline but want with Clearly IP. return maximize we’re an the of necessarily purely having goal so This say, in we I a just nature creating on wells and we capital, get, investment. the end great to would the at of be in our Yes, is that maximizing necessarily game, of return to efficient day really not is the really not the

Nick Dell’Osso

you and of so. of this continued with of of amount relative kind capital the to balance the for all in this we fact are production showing today the we well, inventory days Chief. our the XX together spend we quite it XX and you don’t we is very don’t like that efficiency, given hanging have about the they’re a out deliver yet about bring highlights we’re to holding is also period. that we pretty margin showed contribution can and by Chesapeake, of up year we’ve we beginning, a several pieces competitive. We Yes, competitive we acquisitions a we’ve do and when these through of Vine depth lot big spend slide the in money have to a shine operating bring what also It to wells but and standpoint, wells top the cost that think we’ve so XX here, first others We a that done by long time, to about structure returns production, really--when on of then so both, spot and it, put on then as make can We liquids in it runway. better the do think all of and really from rock, company any returns over and

sought that there. we synergies achieving We’re the

continue take on the and service team one. pushing you we When execute to lot kind on We’re identify provider perform something hard and we’re in were this employee we delivers like synergies Chesapeake relationships, works data, incremental in, a you you to running, the the rigs you have very the deliver have have we lot to you running a very, for a a every have high able you’re every capability have ability day history, day that the fantastic this, and can to a and of of pride our basin that’s scale takes result. at what This the beyond of performance. level, at of operating kind

to do said, and know over that the long quality sit then of rock, but Josh of of and top. we haul expect that we proud We’re also as the operations, the very that, quality the with continue at to

Subash Chandra

good Thanks guys. slide. It’s a

Nick Dell’Osso

principles probably not our last like a process. just that these accelerating be I approach. comment exit that Eagle will balance I strategic recognize key of shareholders closing, and accretive ensure to value through would we the prudent that’s think Ford however, I that so to flow happen that to with for from this want question, our Okay, for in in overnight; we cash reiterate and sheet the can strategy, assets, We’ll it’s our our

is applying capital leading which going through returns the to philosophy program. our towards forward allocation capital proceeds We’re to lean looking our

we premier along, confidence Haynesville, strategic to our updating is gas undertaking we’re sheet direction We’re the today, capital you in we’ll look can all strongest balance have very that progress and It’s opportunity our Marcellus I that. attention We we that move the on in The and any and excited of firmly on the that investment and we’re very returns to gas both this, high. forward you in the hope belief name very, we’ll about and talk has grounded assets, focusing sense sector. of by everybody the Chesapeake demonstrate soon. all as the

Operator

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

You may disconnect now your lines.

Expand Energy (EXE) 3 Aug 222022 Q2 Earnings call transcript