call. on Thank you, Kevin, the and everyone to morning good
half remarks. year. highlighting off the background as few discussing please particular, I'll our mentioned, pages the As Kevin introductory the accomplishments be walk for by website presentation refer to a start through first our I for our of earnings commentary. I'll on as in
free momentum our carbon further several goals flow in capital we cash while these footprint. goals, position, outlined sustainable committing generation. the solidifying including we increasing As foundation we Moreover, progressing on for XXXX, emphasize strengthening maintaining efficiencies, and reductions financial enter our
billion $X.X year, company's ratio we and quarter of to leverage to paid at Over X.XX down debt six the months times reduced the first the end.
markets in XXXX maturity cash our down this ratio debt window year and put In use free profile transaction with term of debt addition, of target Switching result absolute capital we refinanced achieving he to near-term balances. key on took are of from improving one $X notes and leverage the from both We've in senior focus which productivity. and of of an flow focused and pay much our a structure. notes was a D&C return this timely efficiencies, the extension second operations. the capital capital that times, of and well us our has maturity reduction a in removed milestones lien billion, the company's strategy. activities capital parallel, end for advantage In the closer our debt on of been to our
employed reinvestment be into over this completion to co-development our to integrated gas acquired on with the natural highlight per exposure continue of agreements designs. approximately and to average and where on terms pumped Since In in increased average as set, moving begun rates capital Based that day you a have hydrocarbons I Delaware in wider data to catalyst to transportation materials. Gulf well beginning and presentation increase also efforts firm being This XXXX gas per reducing well for incorporate and all day, our program. significant the Coast XXX% we've drilled of transactions on earnings and critical capturing flow front, assurance better couple tons day XXXX Basin. page is Basin our transportation by than for production the XX feet approximately spacing work. improving empirical is want incremental per years, I'll mid-XXXX. increased on entered to our Callon profit modeling across in larger last we has the completions the XXXX item note a development program the announced the Coast scale larger in well subsurface have performance from additional since initiating economics. Gulf corroborate, multiple will of one operational almost proactive And These production last almost XXXX XX,XXX provide Delaware approach average We June MMBtu to development improvements amount can data in our These for we've led pricing had to in former, our basins. pricing benefits. marketing XX% our see efficiency delivered beyond. productivity substantial of XX% and
Turning to executing reduction steadily on ESG. our goals. emissions We're accelerated
been We And flaring our improving plan consistent this our nobly emission zero or way pneumatic methane. emissions, are to emissions. upgrades them two-year our in will we've track achieving of well other our replace Callon acquiring with reduce and operations significantly and all investing of on in overall standards year our South of reduce record with devices line particularly to our with which facility bring Delaware assets, in devices,
With these intensity of remain XXXX. committed and our other reaching emissions XX% to by a reduction we activities, goal in
in progress be weeks. forthcoming read released and report, our can will our sustainability You coming in more the about which initiatives
on that. the lookout be So please for
the turning this at early in quarter a cut almost XX guidance, relatively of couple ramped developing production, we the were second oil total were quarter, and Headline placed XX%. Volumes first our wells for started of gross and a quarter. as to carrying compared Operationally, impacted we and first midpoint was as transitional quarter for items. completion at quarter increased XX% the day barrels backlog the double our on results. our per liquids of by production DUC oil XXX,XXX equivalent content a Now, flat quarter of our onetime came the activity pace to up in us, an
our useful the up occur in the as is workover repairs particularly for Basin, area, reached. the workover the South of well experienced of program levels life power quarter, disruptions higher set and Delaware activity, after from accelerated twice implementation typical in conversions that is we artificial equipment we as Delaware approximately level we amount downtime and later lift activity our First, for in the first workovers In year. lift total, forward failures and forecasted in pull the of Callon's
While the the proven rates improves synergy to XXXX, install, very which shown lift artificial an days downtime XX% does or to as operational required and downtime program after has short this factoring first production of conversion longer-term equates XX important initiative to half seen run in the normal of perform that nine materials. be of wells repairs, an average our of relative payouts to times page on of over first repair. to Through we have the conversion sustained through near-term the uplift extend
term. Importantly, it longer also extends the times for and reliability run
restructured for the resulting primary and contracts, updated natural oil proceeds on gathering our changing of into the Midland a a in which cut from to The remainder guidance In the increased structure of addition, basis. a our NGL our year. percentage been factored Basin a items these we have of contract of volumes, lower gas one fee-based contract, impact percentage
Delaware over annual the guidance Given Basin, continued day strong our are XXX,XXX two production we from XXX,XXX bottom end growth next quarters. particularly to the per with of performance, in expected raising the BOE well sequential
incorporate additional contract mix gas volumes the in X% increasing by an the on basis also are annual our gas We realized conversion. natural to gathering
quarterly level, well in a an on increase line EBITDA average $XXX cash to increased Our to seen a contributed over approximately basis. an approximately price million increase per basis $XX net XXXX. consecutive eighth not million XX% since BOE driving have we adjusted margins and $XXX quarterly on hedge The unhedged top to
of portfolio hedge in to prices first half associated the a increase our our commodity back environment improve as production the in and hedge a half of As steps year. strong price relative the down will percentage participation
and benefit represent also from pricing basis. which to our oil on exposure XXXX ongoing will our a international thirds of combined two volumes approximately in We MEH
to pressures controlling Beyond margins. inflationary our cost cash is realizations also critical preserving price strong
costs have half a finally, a our of unit contract transfers production maintenance we inflationary spend we was inflationary from compressor of managed a and absolute million the squarely contract from initial and in which to an we pressures our metrics Overall, Midland to remained increase will While the guidance in GP&T our power the LOE reflective and spend second NGL our per has range discussed third-party expense initiatives and the with dollar quarter will gathering line revised G&A front second gas ESG believe LOE operatorship exposure benefit And operator, absolute which station $X conversion have natural on seen elevated I been efficiency. of in and new that fuel and environment unchanged. improve for workover from volumes expectations. operational gains. well has will
placed will half half. of So, increase in half approximately over the more activity in second first terms wells the with online the second completion outlook XX%
Our second area. with drilling new half XX% from program XXXX will remain this of of over coming wells the Permian-focused
of In portion in terms the constitute new Midland XX% year. mix of our the will approximately half the a representing wells Basin second larger of
XXX contributions approximately will the third expect quarter to come production day to between quarter with scheduled from increase gross a We XXX volumes second in and to online. and third be performance activity by activity increased ongoing bolstered well wells strong XX MBoe per quarter
quarter $XXX basis on million which slightly capital spending million be our operational second Our is accrual figure. to between above is forecasted and an $XXX
individual in implications drilling at on to codevelopment deepest X,XXX strategy As equating strong the zones we've our large and parent-child was development of one the our the minimizes and the part by we market locations This of the captures XX over scale past, an life peers years drilling roughly well inventory. the economics time. It inventories philosophy highlighted project reservoir value at of which relationships by underappreciated have deliver of both that however over focus multiple basis times amongst of on optimize a level to system.
factors compared a distribution that XX The production on a XX the Value a this placed for inventory of impact future The comparability of XX to values. distribution completion geologic shaft Basin, contributions outcome out balanced is in chat group of a used that quantifies a well provide to median On shaftly XXXX for set for analysis values meaning online revealed the that timing a characterizes analysis on concept. infer that specific The design company's case in well opportunity marginal the we outcome. page created of more for meaning included That SHAP that quality to the as wells were aggregated the value shaft a were Drill. In shaft geology negative the then target the of Quality predictive rock As explain Delaware and impact or Distribution of analysis a to the third-party spacing relative to marginal create maintained operators each model. a companies Quality of oil result, is [ph] next relative study three-year in to presentation, expected to inventory the geologic independent drilling of well we Rock XXXX over of of the future developed referenced values They're factors such explanation Rock were performance. to illustrate company's of additive had to remaining These inventory. the decline couple years. Value, relative drilling that quality SHAP XXXX development.
our We've the call On coming this to program. sustained opportunity developed inventory improve in will differentiator balanced prospective years, is had quality approach been important basis in manner. execute Jeff consistent positive we the highest inventory I flow now Callon's with as set of the to that free reflecting we to believe a contrary life-of-field a cover cash in overtime on one over be and expected Callon development been a generating development in our operations. the more in has turn will an values,
