CPE - Earnings call transcript Q3 2020

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Operator

Welcome to Callon Petroleum Company's Third Quarter 2020 Financial and Operating Results Conference Call. All participants will be in listen-only mode.

As a reminder, this call is being webcast and a replay of the call will be archived on the company’s website for approximately one year. Please note, this event is being recorded. I would now like to turn the call over to Mark Brewer, Director of Investor Relations for opening remarks. sir. ahead, go Please

Mark Brewer

Officer; Good Officer. to and With join Joe Ulm, Chief morning Gary. Operating our taking and Officer; me you the are Jim Executive and President time our Chief Gatto, Jeff morning, you, Balmer, thank Chief Financial everyone our for this Dr. Thank conference call.

posted to our website. During our referencing be afternoon we'll the earnings yesterday prepared remarks, results presentation we

if So I you presentation encourage the everyone haven't to already. download

within Events can Relations the the located on Presentations You at Investor our of and website find our section page slides www.callon.com.

to Before I'd on everyone begin, of cautionary we our and statements, X and like today's included remind disclosures to important review presentation. X disclaimers slide

during slides also refer We periodic across to materially today, periods refer and call We'll due that and and SEC our believe factors filings. non-GAAP could comparisons some will which forward-looking to to on noted in we differ make help peers. the statements our these today's measures financial plans. some to estimates Actual with results facilitate

any provide corresponding measures reconciliation measure. GAAP to the nearest For reference, a we we non-GAAP

the find which to the may on are in both in appendix press reconciliations these and available the presentation of website. our earnings You slides release

for prepared Joe the will opening our Q&A. to be Following like With call the we I'd Gatto call that, to remarks, turn over

Joe Gatto

projects, persistent outcomes deliver midst Despite challenges a with plans to cash to were the that approximately and over the we along. pack start set following you, larger continue expectations. the ahead improvements in bar of page you the the X model reap for thanks remains past on our at quarter deck put industry $XXX taking and I'll those well operating and team the with everyone landscape benefit election free Mark of continue day. two developed costs front with across peer and and generated this the in has amongst build focused Thank group, quarters on time with facing our our another out on of flow important today continue board. G&A for of strong goals the to stated the books development Development and We've changing scale our in higher persevered exceeding the expectations. million of

day, quarterly every monetizations across recent efforts substantially. estimates expense program and And our moderated Production operating remain efficient We liquidity nearly of in million. debt financing on per EBITDA the in and we oil reduction exceeding million Our $XX.X at million. yesterday, operational absolute as $XX.X Strong of increased Boe category. of to have drove key board approximately street operational XXXX. strong we execution lease numbers development posted capital XXX,XXX XX% $XXX and resulted enter came in focused and just capital efficiency

full G&A Our million at adjusted per cash G&A result quarter. the Boe per $XX G&A with for free Boe. was includes which was $X.XX just the of cash of cash portion $X.XX strong performance flow capitalized this cash of The our

capital year capital lowered as program second Equally guidance end also our upper transaction. interest have year the development of is announcing full the hit year $XX since guidance after a the our this reduction upper previous we production philosophy consistent the such even performance. it of May. of well royalty poised of asset important, in half the On Callon XXXX the is to overriding and non-operated million, our by sale back adjusted full impact

it and of and also asset capital synergy G&A ahead schedule. program across deterred areas development achieving page outset, been different has what expected X. Although than that from the team large-scale We've our three as XXXX numerous a costs of implementing milestones well targets while organizations, two our integrate exceeding at on our not are has quite most detailed to managed all for

best addition, level facilitated improvements in combined in each. months six as of and base applications have a result two have of our In the a of the many cost our organizations high to from ever at delivered from the coordination structure our required our of the field first conversion accomplishments, knowledge practices operating of At level remote over the organization we execute these completed. vendors supported IT completely system has last the accounting center

that debt monetizations On broadened the liquidity financial reduction the front, builds significantly improved avenues second that reduction. issuance announced our for to private lien increases optionality this debt morning debt a and upon and future. momentum the exchange for our To and absolute recent end, asset we additional transaction note our

our repeatable moderated financial lower foundation align the to our goals. generate cash life business, characterized preserving reduction a XXXX support portfolio high-quality Lower our the our across while into with of core our development free diversified by ability provides program our employees enhance shareholders. coupled field rates, for communities, further inventory. development decline our our will emissions the achieving ourselves and needs and Looking continue flow, activity of to and initiatives, advance necessary reinvestment philosophy, At rates our of broader will with the we

for sustainable I want In highlight terms investors and of of gas our to some company, in these small improved featured driving vision greatly enhance these oil bottom inaugural for that also the resulted report our emissions on a other sustainability accomplishments sample six. results. and transparency our a environmental of in achievements are page but stakeholders. only have included line not We've Many achievements of

reduces carbon minimizing down through on focus which flaring revenues is hydrocarbon capture. and our additional XX% increases footprint Our

and our well-established addition resulted volumes costs. development disposal reduced for program associated costs and In capital recycling our in has water program lower Delaware our substantially

standards of led rate employer safety incident total industry in on have and our of choice best ahead year recordable safety the the with record industry a stringent our to well an are benchmark. We

copy diversity by alongside example the Board our their to year evolving of to practices achievements the governance this part set ensure our a to the a members encourage of cost management Our sustainability reduce strong report download to continued Callon understanding our better own you and Board a evolve of earlier to our goals reduction electing have and organization. gain compensation I of as efforts.

implement operations deployment capital seven, has been our been incorporate organization The our drive uplift page learnings, Moving and of our best in a capital subsurface has efficiency with program. efforts model our quick rapid significant to areas. these operating to summation all in our of efficiencies practices, across of

synergies of our part costs. costs we costs wave many to as witnessing down a G&A clear consolidation and to consolidation improvement leading-edge pointing primary are anywhere the are the we for well the of Specifically market show we I'm lower from And nearly proud that our benefit. significantly was exceeded just XX%. a XX% efforts year our one with as have continue in say recent industry, to highlighted to category wells of This Across last target. most

G&A see cash both you which cash As G&A page and $XX eight, our over can to reduce total million we on are includes track on $XXX from capitalized to roughly G&A expense cash expense our million.

amongst this peers generation a various to At turn Our group G&A over a to discuss Jeff of has operations. environment. been to and this free cash I'm the of lowest across expense current flow sizes cash volatile us point significant the going call in broad puts contributing to factor

Jeff Balmer

Joe. much very you Thank Great.

improved that type tell we to Operations, you the VP the Let's our the during by submersible to the our having Jamin showed Ford, management asset reduce third underway total gas title. as most structure period, different just here NGL improved treatment has sand have to our in disruptions operating activity in workover will led treatment move efforts electrification describe all of like work in compressor Eagle the second Delaware then to optimization team optimization improving outcome, Midland, in efforts quarter management lease alternatives to pumps, and the pump our which were board, up this The of the hard million. efforts seen past. LOE continued and look that our McNeill down that assets. beam options on additional higher the field over in-house a areas XXX prominent to flaring also pull levers with has has in and Basin. was third-party numbers. quarter three We've $XX.X much are there at in And volumes items for and across in ESP slide programs and I'll create able backup really bring efforts cost and efforts costs And been and have continued execute to the chemical that electric to water begun field to gas capture nine, optimization manage them program which Despite to and management while programs are the

sustainability efforts lowering capturing every of dual nearly additional All and in revenue case have and these of our effect efforts. costs enhancing the

updated Here performance on XX, we've nine-well project. the our for Dunkin/Horton/Wright slide

to Wolfcamp the of XXXX in The course. of and Basin Midland pad these offsetting strong the the A from repeatable Rite current maintain stellar that application has performance in this is creating compared wells important how price our economics Wolfcamp this to development So results relative been of environment. B learnings highlights

the the barrels of in comparison this cumulative wells B A and exceeded for Wolfcamp one So project every XXX,XXX of well new Wolfcamp oil.

not IP. of IP reach XX best the nearly long or offset XXX big pad to this I And in the as a not IPXX initial level days. So just production twice it's in to XX put which took production And this day figures just barrels a want These are coaching graphs. that to XXX-day BOE IP is same trying locations about XX-hour stress like a oil productivity. of first is an and is the

We're wells has to much right frac and that worked did Our very through projects analysis. technical proper improved ensure next subsurface improved our stacking so better that benefit not hard to making door spacing capabilities. from geometry significant previous and team

zones results place overcapitalization and More area of cherry co-development resource an potential the from for effectively that importantly, recovering focusing by that on in require reducing picking the we're locations.

barrels four into about well think XXXX a million million, for again life. day its $X So $X.X months

site-specific world a most Rag Wale completing employing nearly slide to project I production drilling Amphitheater has pressure is has achieved heads while impressive the the the benefited of and efficiency stacking we average, What in wells. XXXX At managed feet Early most our off and still find program. is these recent our best run the Delaware, on quarter. been time completed roughly $XXX developments lateral a our and flowback foot we average technique. personally to development our cost our chart on six-well the Again, just great achieved having The sidelines In or very two project start. for from barrels this million the compared this matching XX. program. per spacing strong with own Moving fracture per water seen XX% savings stimulation projects on on the of the XX. X.X to completion Page from XXXX of two recycled are used well recycling level usage for than our all Notably, coming offset three feet more significant months. to our date we estimated for highest that after That's was provider water operations lateral day level these

over I'm to to turn So Jim. the going conversation

Jim Ulm

you, Thank Jeff.

As Joe Slide initiatives. a XX recent a and mentioned our of activity our elements to the private earlier, with coupled exchange financial yesterday's of those strong offer important overview uplift has planned provided gives brief monetization transactions. financing

First the sale provided closed million proceeds. roughly and non-operated in yesterday $XX asset

which Associated day oil. under per production for coming September from amount of was half that roughly BOE XXXX is

production you Our transaction XXXX remain oil of purchaser. oil. in gross Recent with that Remind the $XXX XX% burden BOE overriding was there costs and about the per royalty day million was interest post-production approximately raised that proceeds.

transaction is XX%. average Our revenue the a still across net after robust interest portfolio the

notes lien meaningfully $XXX revolver. gross which second our reduce has secured our proceeds Finally, balance helped on the raised million of

million granted option and by It lien debt reduction of begun certain We senior with agreement basket for of notes available that into exchange at principal holders weighted we to exchanged with have of into entered tapping average exchange remainder where million the $XXX an ratio $XXX already a This yesterday's $XXXX interest million results fully million, in and of cash executed also If of debt reduction This improve could for this principal inclusive ability $XXX up to $X a lowers expense of efforts. of up of initiatives has significantly. annually. towards per value. we increase net boosted our million deleveraging have to $XXX $XXX series in capacity Kim opportunistic outstanding $XXX is still our leave over to $X important debt reduction. reducing would Altogether approximately second our advanced available million net additional addressing million, reduction $XXX but interest of to by the liquidity this million cash step Ridge. a meaningful transactions debt equally million that and to $XXX the we've our exchanges by

our we of Looking these subsequent the overriding expanded yesterday's announcement facility with announced XX, at sales have October the Slide and impacts capacity and royalty normal we billion. to non-operated issuance. our and of facility With sale the version our the along as balance financing an interest and capitalization second On the provided affirmed of closing asset $X notes below X, dropped non-operated the positive credit initiatives. better various of lien result table reduction exchange a illustrate asset credit has

Our debt $XXX nearest liquidity senior lower our over XXXX and by million are notes are net outstanding and balances maturity can Equally in metrics and be both and material reductions. reduced debt our as interest XXXX important improved. cash seeing our

have risk, total losses. reap the We opportunities our XX adding XXXX same we're continued XX% opportunity of but were roughly to hedge position. positions to in actively during will various utilizing of On hedged. XXXX to been a WTI price same commodity NYMEX oil maturities, for reducing time, plenty into to of the have our protect continue some the volumes while We Slide we minimal collars positions against our and rising to debt improved to positions we now monetize look to collars commodity protection, downside quarter move environment. the offset our protection downside upside At at of of our some incremental provide to more our that helping manage able We benefit incremental have still prices. leaving while roughly estimated able manage

$X.X day we've On hedge MMBTU our protection natural MMBTU collars and downside gas -- potential a of of with during and the callers. covering at upside our XXXX around balance even in protection roughly fairly XX,XXX our with with side per swaps book, got

efforts have We be improved flow. our to year efficiency systematic managing our cash about closely will updated described to the guidance of watch continue the Jeff market and benefits we full protecting cost-cutting Joe operational for account and Slide positions and our and our XX, On earlier. that various

the had and non-operated asset of our recent raising lower range, which day. impact the annual BOE guidance end We XXXX are sales despite production per combined production of rate our override of a

$XX top top our are significant the $XX million by at range end lowering we period Additionally, range lowered we million. last when capital reduction the our end by operational of which of follows the

with for guidance LOE has million range Our set to full million. range by at now improved year roughly million $XX $XXX $XXX the

agreement our longer-term arrangement. has GP&T a increased temporary Eagle firm guidance in to Our election the convert as previously result Ford our of a transportation to

agreements sale limited of previous uplift delivery We also converted point cost to deducts for both instances, transformation. from In we a the wellhead one we of been have pipeline our seeing term arrangement. a are now sale are an bearing since as in transportation of pricing

the as costs. us deducts to net is the effect EBITDA negligible. disclose from flow be expected on and to previous such, standards transportation-related accounting require The revenue As cash

greater XXXX Finally, have ranged operational even of levels our million reflecting I achieving point and $XXX that been to our confidence to savings want capital out $XXX expectations in to efficiency. million, growing

yields, according free desire free an sector there seems slide create cash to of yield, growing at cash flow where front provides sits to be Callon of the to estimates. In independent a pack. final a the meaningful sell-side on assessment Our flow XX consensus

our peers that significantly our monetization meaningful total We of are return as our until flow, repeatedly aware our cash well debt have plan shareholders. planning are balance. is lowered have some cash towards our to we alongside to But free reduction, apply to proceeds, stated, we larger debt

capable to like the clear this but of are I that have generating are call those goals. pursuing free all rational evidence point, We advance that back deleveraging to to Joe. actively not we flow, provided turn we avenues would over only cash At

Joe Gatto

Jim. you, Thank

proud upon happily and analysts, position operator. With turn and working an door to saying, since enduring us, many away think base came back normal period of them reflect thank positives are I going year. I a our a draw this extremely situation But everyone Let just me Many for finish industry of team, from sure hope extremely focused I'm and entire into XXXX, with of few There's research our dealt of is and tough months I'm more and an to as you in personal extended investors left strength partners, remaining and work Callon have it March. that and by environment. I'm all our to us and close going the XXXX. perseverance, of we're in that, out able on the heading on the to put that to up

Operator

We Neal from Please question-and-answer will Truist. with now the [Operator ahead. go Our comes first question Instructions] begin session. Dingmann

Joe Gatto

Neal. morning, Good

Neal Dingmann

guys. talk like or Hi, with just to a talk your diversified well. that continue the just you these for cadence about almost all targeting primarily just I'm as Midland specifically seems the really forward? about It Jeff in nice definitely your you success -- guys be – have going Delaware maybe plays? you are Could peers focus days. Will just three Joe how of a you number basin wondering

at So, all I'm you just wondering how it. look

Joe Gatto

No, that capital cycles Yeah. cash flow but different have fortunate forward have to We in three we've free the were employed that us our very areas cash capital in roll return have and we'll XXXX. with that see XXXX, goals. importantly allocation strong conversion to intensities profiles, help similar

forward. for see going allocation a XXXX type but see into to you'll areas XXXX, across that down have and you'll So, the going We of pin that. still similar certainly

Neal Dingmann

year? next are other on always now Okay. the at you're When Or that the financial look for and you transaction. you the now as think while? -- a fine at And other of then, sort and finish of the just mean, you like just doing a go looking at after deals follow-up, royalty you're plans. sort where you into I are year

Joe Gatto

to think of and put Neal, think No, ways first we've I continued a over pushing our that optionality. and Domino, lot some they place, have Yeah. expand initiatives I in in

we're and to to some and going our the in for goals financial position So, good progress, push continue deliver we've long-term. made right put on and ahead the us

Neal Dingmann

Joe. Thanks, good. Very

Joe Gatto

Yeah.

Operator

with Please Brad go Markets. ahead. Capital question RBC Next is from Heffern

Brad Heffern

everyone. you I'm good would potentially Hi, $XX. strip morning, you curious Is put choose I which choose below let I additional in it maintain generate program? can a free situation a maintenance maintenance production flow? program do free rather on there flow, appreciate XXXX. way, disclosure production Or Or the a do to generate you guess with the the WTI decline cash than cash modify you if another to doesn't base? to envision

Joe Gatto

obviously pivoted of Brad, is environment getting a generation. details lot in to going in and firm showed ground put the flow day, generating XXXX At a I for that we've the that free think into an on terms stake shake to be cash quick the weaker of year. the XXXX the I in the is without out some answer in average We of $XX think $XX, pricing. end did

last we've two in free over flow So that shown -- we've quarters. substantial the environment, generated even cash

that come production we some production obviously Now and with declines. did where year the set below out

So stay goals again, got free headline focus on just and we production. our not cash to flow of focused generation on

Brad Heffern

Okay. the gotten sale. is over you've lot. Thanks the line. finish yet a out front, stands is the lot guess sale thing water then, obviously, not on I being a done And asset The that one

want on update sales? that there's process? So on give asset anything can out And maybe you you if an that Thanks. to call else

Joe Gatto

in position helps we've around said market. our times. environments with Sure. of terms on potential of don't time. want at last I'd financial months certainly some the with partners make business. solidifying challenging and the Yes, for sales business the before force over these this that been we've business anything water putting discussions And the few into us after we Volatile initiatives only say that some to been that one has asset working our water in

at been joint we've looking projects. know, type you venture As more

have our and going to of approved more financial that So clarity seeing they in water liquidity up. position being those terms show are volumes

pieces talked last So and day these forward. hope and these that initiatives increases, initiatives the place push think especially about into other month. with fall only latest help that getting bottom I some we that And to passing But just dialogue the every other of continue our is line the we've there. optionality over to

Brad Heffern

Okay. Appreciate Thanks. the comment.

Operator

is Downey go Brian The Citigroup. with next ahead. from question Please

Brian Downey

in rate for math that the the go slight Good taking first correct, showed see on the If strides Jeff, fourth how your level my Thanks where sustainable $XX a absolute XQ? guidance on question. morning. run X. you clearly LOE costs something XXXX? half. the sequential curious, quarter uptick into great is closer I'm range versus slide But implies forward as to that cost for LOE Is you you LOE potential in in full million were absolute quarterly the year front

Jeff Balmer

we the up come Yes. was BOE quarter coaster, looks on third roller XXXX some good. be the area second focus to season the always going pretty And to and but for it overall that. back bar a got the some that continue sinusoidal down. of a little wouldn't in of to Overall, -- our items extent. like that and cost the some kind I But of spend The again -- lifting bit per chopped running our certainly will quarter say in is had challenge and is a that things that year

do our and So costs production. got sustainability yes, a cost standpoint, decreasing optimizing we've that efforts from both believe place in and a structure that the from I

Brian Downey

working we Joe, for is capital our quarter? was reverse flow the $XX come figure or operating the approximately million something cash changes Jim you flow in then your And accrued above may or it. CapEx side CapEx that but do the that on how XQ. non-GAAP about How material anticipate, investing cash Or think free the any Appreciate should for Great. either XQ? did cash quarter, fourth in

Jim Ulm

experience to year-end quarter pretty and Yes. saw XXXX. expect of into This of as second through is would We normalize I tell working we into I to just are capital. third significant pivot Jim. XQ, will normalization late kind that a head we XXXX continuing you quarter

Brian Downey

color. the Appreciate Great.

Operator

ahead. next The Instructions] Derrick [Operator is Please question from Stifel. with go Whitfield

Derrick Whitfield

all. morning good and Thanks,

Joe Gatto

Hi, Derrick.

Jim Ulm

Derrick. Hi,

Derrick Whitfield

Perhaps to for Joe you start.

the are there as think or targeting? And about navigated current level any that absolute is non-price Your environment environment, net the what an about team -- macro you're your as to it? ratio as achieve greatest levers debt you well has

Joe Gatto

range back Sure. about think talked and and getting a what Derrick, too our of in we the go So hasn't down of our in you're that It the if times progress. the to on very transaction we've near-term we that? page you debt closed the Or ahead is still post go a so, depending assumptions transaction, will price pushing using much that were into level much with even towards. year start lot table what on to goal, absolute about long leverage translate those CRISA talked a ago. turn reduction two are and very which been made about that? along with both since We where

to amount optionality extraordinary continue We lever. we've To a move into up that. as about. to take advantage And to significant talked us prices, about But an of bit a that. little opening XXXX, have talked do Jim that's upside of more leverage oil we'll

an environment. a our again have has been ways lot to uncertain right side, On in always of non-price the be let's thought

a credit interest So type about, non-core water the classic more of time And in have deleverage are business comes, around sales, patient we're Eagle the challenged we just the to We only But Ford with out both, waiting the in working in a that and talked been, like ones that little past. been proceeds, to one our through touch pursuing a going of staying metrics. at. the not when, there. a transactions that properties Delaware do of get this. in and we've primary look the but key bring bit couple And this in market has buyers

there We have stable pretty a well. good those out as of opportunities

Derrick Whitfield

playbook we page follow-up, think my the And same as as be XXXX, maintenance effectively your largely XXXX, out would be would XX the to if well? XXXX? to capital And were for as

Joe Gatto

Yeah.

base seeing objectives good I Derrick, way, with our that's looking midst from of, modeling resource how resource true right XXXX? in development or the a think our and good not near-term in We're of field think high directionally cost the estimate. standpoint life the structure, free drilling developing the around we're what at philosophy compromising But directionally of and that's staying flow, decisions, pretty sure, assumption, a And making our for around field out. long-term. a to we're cash overall terms of in grading we're the given of pretty by this, life largely the balancing I strength -- cost making around

Derrick Whitfield

Joe just to cut for XXXX. more, one clear sure I make the I'm And guidance on if just could, Okay. world

With the that as are cadence XX% a for activity for XQ, XXXX, and cut, out you're oil expecting projecting XXXX? you

Joe Gatto

That’s right. Yes.

Derrick Whitfield

That’s Thanks Thanks. very guys. Perfect. for your time. helpful

Joe Gatto

Thanks, Derrick. Take care.

Operator

is question and with ahead. Please next Palmer. Coker go from Noel The Parks

Noel Parks

morning. Good

Joe Gatto

morning. Good

Jim Ulm

Good morning.

Noel Parks

improvements over this couple list a did down, sort you of had that, I the I questions about of heard that quarter. Jeff have work also area. of And ran by higher activity

-- a sense long the something, is field point. compression? you management which related particular? I about So much changes I made, at it's to list components, that you've in-house of was for of initiatives a items like I And was talked just cost a interested whether of have still infrastructure, you are runway improvements, we're further to could -- this the the just water that chemical the, curious, going any if about it's sense much as in give as And which have or efficiency also probably haven't a me of which see and of, improved was really going heard most program about versus sense before.

Jeff Balmer

expand answer to give let components on. that, I'll you'd other then, like you are best And know, me some my me there if Sure.

Noel Parks

Great.

Jeff Balmer

completion slightly items lot things our production. more some of that I ones. getting a lowering also water small some using mixtures. and we're We're sand good then, techniques. extremely usage. different It's a mentioned, like ones The prominent of combination so really still And different sand We're management, using

we're pull in the sand that do either surface, on and pumps that lateral, back, equipment substantially. Basin of primarily costly submersible wells those it we like back destroying the all or to into that down items go of the look because pretty and same down are And when so gets out portions of likelihood expanding well. hole, Delaware. having we lays When the that into decreased getting over, work a in the And at the surface that stuff Midland

continue a can put it then you If out. pump go the and that and to without to is times, the just run and in in have hole matter which having of you terrific pull and change goes happily runs it

pumps now. have We submersible

is before standard to entire Our an change and go do over out. we have a year,

that combination really Carrizo that the groups program and improvements board. again all across number is chemical of historic to still the the see are you in-house the chemist, a made legacy expertise those continued that ones. both that improvements continue. of by different to Callon having going in wonderful large mentioned assets the instead are So and of We some of an we've derivative two in able leverage just a we're that That

what continued so millions generation with hydrogen we'll at the trying future of the the management that scale sulfide to dollars reducing look see that chemical wells, at and have in amount happens the of program. of that or in looking you're seen anything or that, reduction some, seen like surface or we've And equipment, we of

do halfway so that, with sharing best practices how of three I'd mechanisms, we And people say of through the quarters the outs we're development. drill about, way lifting through

there perform opinion my is runway. to So, well while some managed we've extremely still in

to moving people portion Some if else answered get a that a to specificity still to different commitment aspirational of back little on. is check anything there's time. that a your in of really just areas. to in that double I'll like And leveraging enough turn and question, not their in it better it I'm we're also, continue – see, if all it's to But sure, but expertise the you'd around

Noel Parks

halfway when wondering only that other best year guess, that's you're end only that, And great the really No, thing on. showing – encouraging. here your point side, financial about this I through practices the about at just especially, from at hedging was say you on just thoughts

further thinking You into if about next production do you going just year. have the wondering, good solid out And more curve. were

especially on, market still oil contango the are if And more we're are where wondering if a we could you mild had downside protection about now, NGL tack or also, We in about any very thoughts seasonally? for I XXXX? I you if right into thinking

Jim Ulm

program roughly than Yeah. bit with goal we're I we for come a a directionally the in trying support guess, cash that XXXX. for price the The little gas between give to is and hedging generation on flow two strong XXXX that We're greater swaps, XX% collars and balance on more really up today clearly but talked XX% oil about. to free us upside. the of in talked way kind Joe that,

a-third of XXXX. on we look again, we're thought, goal is to make XXXX, to be track we were there the sure starting the with that to first extend really make So opportunities And in for into sense going half we're where support and for can other roughly pretty our we have and We're free a pay liquid market use we the NGLs that XXXX. the deleveraging ethane initiatives. down cash of in and RBL as that There's can flow to well. hedged

points. we've are our diversified say area look general think we hedged So I in That's I is, would another And really at. pricing last Noel there. we're just to going the thing

at looking carefully for just and right very points, looking to the we're each structure flow. maximize one cash pricing price of So those

about our as it So that's it XXXX into think thinking heading kind and and XXXX. latest look I of at

Operator

This concludes would like our turn to to remarks. any session. closing over for question-and-answer I Joe Gatto back conference the

Joe Gatto

Gary. Thanks,

I holiday to we're I proud us up. sees wrap a going up, today. we year, to Just terms results I season. into been thank and of turbulent we're put for It's joining continue hopefully, to everyone want really guess, that. everyone think but in a

extent, you Thanks, talk To a to happy I updating and we'll going forward next year-end. don't early we the to year. wish season again. So everyone safe into look

Operator

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

disconnect. You may now

Callon Petroleum (CPE) 3 Nov 202020 Q3 Earnings call transcript