- Earnings call transcript Q3 2022

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Operator

Ladies and gentlemen, thank you for standing by and welcome to the Callon Petroleum Third Quarter 2022 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session. [Operator Instructions] Please be advised that today's conference is being recorded. And I would now like to hand the conference over to your speaker Kevin Smith, Director of Investor Relations. sir. ahead go Please

Kevin Smith

Dr. Good Financial join thank me our Gatto, Haggard, Executive call Lisa. Operating and the and Officer; on for time Joe Kevin Officer; Chief and to conference and President Balmer, morning you, SVP you Chief Chief and SVP taking today's Jeff Officer. Thank call. With

our encourage our remarks, we of presentation to quarter third our release, documents prepared not may both results if I During done earnings are which website, download both on so available and everyone reference the so press you've earnings already.

define on located settings, the both You our the and can news press are which of slides www.callon.com. within Presentations the page at and of the Investors Events under release section our website

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

during some in due and could actual make results forward-looking will noted We that call factors statements estimates to filings. that plans periodic SEC the on materially refer differ today's to our slide

We some help and non-GAAP believe today, we across which comparisons facilitate to our to also peers. with refer financial measures will periods

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

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

like Following our the turn to call I'd Q&A. prepared Joe? over that, remarks, we Joe with will for open the And to Gatto. call

Joe Gatto

everyone and on to call. good Kevin morning Thank you, the

and and X% above a as in through of performance strong quarter on estimates. the particularly underpinned was remarks our sequential well that field, year-over-year of consensus on both on the guidance well time are These of website expectations to At nine by designs, completions third inventory I point increasingly a philosophy our front few commentary. results next performance few basis and in a Callon's earnings bigger drilling execution with improvements and reminder As and continuous that reduced highlighting completion growth X% a a Permian has were in paired level, of refer gains concerns posted by earnings field eight I oil-only basis, exceeding our commitment introductory our resulted We a of quarter driven in an around as were a will a reminder, base, please cycle industry. when a on walk production picture life BOE philosophy. at in of the consistent and presentation for improvements background this becoming the benefits Pages degradation of development provide in the focal the particular our over minutes. Eagle Ford. the the to resource be multi-zone with presentation pages times our

level quarter co-development Delaware continued into years compare diagrams pages of with seen quarter activity delivered implications as seven improvement call, we've this have many over has an versus our illustrative the approach near-term similar increase this XX% presentation. employed for to during we alternative the Basin and that over gun efficiency second a and XXXX productivity of Midland to Specifically, We in approximate barrel improvement highlighted that strategy negative time. capital an comes of provided that high-grading with year's earnings six which on

adjusted realized capital in sequential range to and EBITDA pricing contributed generation, within this per cash we XX% flow increase our second oil cost despite capital cash relative Operational increase benefited NGL and BOE expense, our another quarter. Additionally, our lower free also control guidance to reduction flow which the was profile. an benchmark a operating lease free and unit in per our in

workover program we reverted grid power program related initiated that increase this activity and this year. operating lease expense in reduction the earlier After to summer the third were was quarter accelerating an our second congestion in we costs, levels. to quarter, in the Turning as in this fuel surcharges ESP in in our the conversion prices costs this to a Basin operating in conversion an and Delaware expense months. quarter sequential reduction driven Offsetting normalized by higher realized

However, on starting year-end. these to we head line we see items are relief as into

important moving another Before we a third which initiatives want year the and reduction year in flaring XX% for across our intensity. highlight rates to of September XX% the sustainability reduction outlook remainder substantial that in GHG detailed to annual Callon's I report progress of published several in emissions including

of XX% on to by our intensity track XXXX. emissions in With achieve a these remain reduction we goal achievements,

If I have found the a on be can which report chance, website. read you highly you recommend our

maintain tight the third XXX,XXX to to XXX,XXX expect over to the in with year, model. the rig of delivered a ahead free momentum plans a and ensure targeting flow production multiple include to quarter the our projects, our for early now of our wells, with the fourth of drilling XX quarter, per best in in the plans high-quality to from added market we These cash services positive October, zones, large-scale Permian XXXX. We each early in range security operational with recently in sixth co-development quarter day. multiple and support Looking BOE keeping

we six overall timing these of associated to D&C more With projects drilling flexibility a early XXXX execute our created and operational plans the modifications without addition production. significant of to rig,

placed we times begin using to benefits the and year development adding an this be million will basis. back for discuss be $XXX crew first a to turn between of fourth spending completion operations economies The of $XXX quarter one and simultaneous our plan and XX I remainder production XX also Jeff adding The operational the scale sixth on expected for running second to run beginning Importantly, in accrual dedicated capital to number the quarter, of in resulting to now the the simultaneous larger operations mode the of capital cycle the quarter, for scheduled projects. on of we will is two rig this at is to operations. improved to XXXX. through projects efficiency completing over wells range to crew of and in of gross these consistently crews of the million call be

Jeff Balmer

most good very XXX,XXX operating as forecasts, everyone. pleased this the now. per consistent year exceeded productivity development I'd well laid like And develop focused we codevelopment day and and with point on Joe costs. BOE for discussed, large unit that our results, the our I'm early our multi-zone are efficient way time. the more you, of production reduced program Thank the experiencing to per did foundation over morning we is base, as projects, with out we capital averaging quarter's also asset in which to is disciplined the work growth our

new XX% increase XX second wells, For the we quarter, from quarter. placed a the online

production to responses benefits strong the stable and improve realizing well continue for more of Basin, areas, initial to active performance. overall Across We looking our our ESP of production ways optimization see Delaware always and operating we costs production the all conversion and in profiles. reduce programs are

overall place wells, faster And Eagle this oil resulted production besides to earlier schedule completions reduction in enabling less fluid. properties, made fluid to our post levels proppant per reducing in with So less focusing us the much frac well, we fluid stage enabled pre-frac of production year, them cost which and some the us same Ford, amount the first the to the offsetting to faster. design pump impact also on modifications and return of parent on in

in the much track efficiency Another in cost in using Delaware of not it the drill to the tubing saves us coiled and successfully out plugs coil of have post changes Ford. utilizing mud to the frac first use operational savings And off we frac only Eagle is is and were implemented oil. technique in able time money, This Midland. And a design, to us item system to Midland also nitrofied to get that more quickly, we plugs a of cycle on plug even wells and improving use course through but drill enables implement production Basin. recently

of areas. like with update to I'd each you Now, in operating provide our an

Basin. Midland So, with let's start the

outperform, of Panda in above both inventory an example This and the Wolfcamp project, Lower Spraberry, B Middle and wells XX-well the our A curves. degradation. capital including existing expectations unnecessary zones, Basin co-development Howard producing formations. above Rosa We've model thoughtful continues Spraberry, acreage maximizes future integrated is Midland Wolfcamp to is overall subsurface all and in target performing protects venture great this asset the type Our recovery zones, County. from a project with A, four multi-zone This with particularly committed that our manner curriculum developed efficiency.

a with very per the a we wells over future, we so year rotate company, for average This years. placed older bounded of of the that in individual offset development wells. been online asset, advantage can we strategies performance. wells Callon XXX and addition, XXXX achieved County to Central any production being Wyndham Howard foot with several XX%. has per on because unit and of day much is current don't have with while plan wells cut eight multi-basin rate have initial These XX-day oil that an overcapitalize production line And BOE less our executing the lateral, legacy strong in strong results, for Colonial In of eight peak

on rig the the wells. the two at in XX to end through activity the down Shifting basin, the the Delaware. remainder year. rigs the We and of quarter and had running maintain to our of Midland majority plan that acreage gross of quarter, we one drilled of the During dropped level to

we in XX our now the brought the of the southern and on and We've the During to Delaware County. XX completed activity online are focused and year, been gross most for quarter, West. Delaware turning positions wells eastern Reeves in

that B, and since rate length BOE per a economics. both productivity of particular A XX%. of FOX the Similar our an XX,XXX our projects with the online has have Wolfcamp day peak wells targeted average well is employed with intensity Fox highlight feet So and approximately year, cut proppant four-well project one and I'll other to this program project benefiting higher been XX-day oil July. and an earlier of average These X,XXX in lateral

than Moving from I the and continues also to Production operational a asset wells improvements of mix, Ford. some we that earlier to key able area be our given expected, this discussed. of robust the bring previously to part on were Eagle

Ford Eagle brought XXXX completed program. the new which online quarter, we our During wells, XX

the the brought in Austin the test One on Chalk online our leasehold. of that of potential wells was an third quarter, initial was

without where that of with securing are into update a my is which and to good XXXX. field encouraging proud more to high aggregate, I'd This year, the maintaining production we've XXXX. this contract services say, the combine all stand remain again activity. We contracted discuss evaluation crew year's We've ramped services, continued are a still currently of our our outstanding enjoyed will from logs have board. cover tight this field of the deliver and under and perform once early a And extremely a subsurface turn results like our target the bit new environment. across characterization been of accomplish In anticipate plan. we quarter challenges. really the agreement, has the multiyear With And while as we We're team quarters on crew ensure early capital are an we now to five the its completion And of teams in to comments, We've integrating drilling done a the oil it's Delaware to rigs transition financials. degree really rig a can the in to finished with they've activity which same with well, dedicated Callon's of excited South. has we operations primary extremely ran acknowledge relationships for ahead. and of crude, one that, flowback on over been in handle also to pre-drill second I'm requirements results. I flexibility. results for side, the with to recently But for so a formation. to consistent We the up under in in completions Kevin our the about years the very regard not I'll and maturities what one and next completion our partners can asset services able entered it contracted with high-quality have final well laddered a provide

Kevin Haggard

Jeff. Thanks,

which we by quarter, delivered on our is in results third now average strong bond space. runway, debt increased the financial maturity this and deleveraging way profile During mid-cap weighted longest maturity further posted the the

Let's briefly key financial go through details. some

over XX% and quarter-over-quarter per we $XX wellhead revenue First, in decrease experienced in prices, to a resulting a just in BOE. reduction oil NGL

However, on quarter losses a the second oil per from equivalent declined sequentially. post-hedge unchanged was realized as basis, barrel of hedging oil our the revenue largely

amounts hedged increase After in hedging of LOE as reported the first has As BOE G&A, the reduction quarterly Callon compared of $XX. lower half to back to factoring per year. of unit XXXX a operating the in adjusted costs reminder, in its per consecutive EBITDA this and over half production ninth and

Our top-tier over second the margins quarter, helped of increase the us EBITDA third operating $XXX adjusted sequential quarter. XX% in million realize a

this during During on total, credit our debt the drawn fourth the leaving $XXX generated our million. flow nine third facility, approximately in on again amended $XXX million. million, our of to we cash a approximately we've facility, free borrowings reduced months quarter. million quarter, by cash facility. based this number flow the quarter's of of $XXX free expect first Callon credit increase At had We approximately which quarter $XXX revolving In availability, adjusted use $XXX year, recently the by our reduce to balances under us end, we approximately million

In maturity taking addition further of a redid credit steps the that to our extending October of flow has $X new to commitment We of date using $X.X opportunistic to an retire to our billion. standing. and XXXX. free The revolving debt, financial recently strengthen in we cash facility, base borrowing elected billion, facility remain

July Excluding million retire maturities we we the unsecured in with coming have in cash will due free flow XXXX, the notes expect $XXX to no until year, debt senior XXXX. which

to our profile. hedge Turning

position We strength XXXX and market to in point on are at good prices a oil volumes. constructive of in area heightened and to layer moderate this for into layer take base terms the hedge oil mid-XX% of of advantage on on sell-offs hedges and continue remain have will crude volatility. hedged optimization price We a opportunities

the upcoming to to change Next I full discuss from successful cost want accounting efforts.

report quarter, XXXX last we of starting As plan in financials method discussed accounting. the we efforts to using our successful

conversion. reasoning the prepared statement conversion and do by G&A some the be have the highlighting that slides I statements main on We items The keep line will the and income reminding want impacted is change interest, items in exploration discussing expense. are behind everyone the to by the the financial impacted between cash to the two to details accounting the from change. encourage look at quarterly more impact for more in as we as months offer generalized guidance. about no Expect methods slides when presentation the to this I coming our you differences flow in earnings impacts formal Callon. the well XXXX explanation financial there

like the we NOL say XXXX, XXXX of to range current $XX about and per that losses on Taking item helped offset would CapEx reduce a million in Callon I This some of taxes. pay our net making industry burden. $X to our million how has E&P XXXX topical income outlook taxes also assumptions, year account operating into over our words industry on end to in pretty tax in cash the year. and environment. positively expect reflects cash profitable and position our minimal to our is the $XX recently billion become Finally, few had in At

we prices move depending over oil I'm gas expect assumptions, However, to turn that host XXXX And we loss decreases. number to before as well a on will our and increase to Joe net back that, other with of as balance operating things in going natural Q&A. as operating

Joe Gatto

Thanks, Kevin. Great.

few to key takeaways. Before you I'll moving with questions, leave a

in wells quality focus our expense visible of as at Our has degrading future drilling top-tier created on time realize other Midland when the Basins zones from well has declining allowed locations seeing sustained a just steered operators to Delaware in for productivity levels. we've away productivity a the path offsetting continue This co-development of for drilling and at inventory to are increases best and us zones. adjacent

of quarters scaled come. securing and of for and repeatable right We've the XXXX this as of drilling in benefits plan beginning partners being consistent we the quarter, development completion the the year. model to comes will the which actively XXXX and services With the the execution foundation the out laid for saw operational at activity been provide which but is executed

focused With emerging Financial at we year continue efficiency drilling a and capital will in will end. Q&A position improvement are up modify remain priority we the for can implement reduce the fast in we as we a and is for ways methods, continuous great. open as and Additionally, solid that, And strength finally, if even look term technologies. pace future. remain to the and of our still frameworks to would costs be well key that longer Lisa return apply financial to our increase finding on completion and we improve

Operator

you. question Securities. Dingmann Instructions] our first Neal We Thank Truist [Operator will with take from

Neal Dingmann

Joe morning, my is and your right first time. question that for team. to Good the Joe, development. it get Thanks large-scale maybe on

this for I'm development. interesting. about this programs some of your some now season of doing be or you seems recently attention to changing? details could it's companies been you There's than with you And Specifically all seem be provide different wondering, of know lot others program development me how life same don't I a that your on all talking field just been maybe been have view quarters. full-scale earning multi-stack the just now these largely may are what to

Joe Gatto

Sure, Neal.

quite over doing last have years. the few this We consistently been

examples some an medium to we're strategy differentiation. our it and medium to alternative up little in see a is we and to and lines it. short-term, page to interesting to it's strategy. And provided co-development of kniting think I long-term And going slides to versus the and of alluded a was see how I I our this now is type the here where X, now. strategy we're X we've light long-term So more It's but coming of it's benefits on and bit stuck think starting of this,

your all high-grading zones and what means best for of just that degradation down potential the road. you're If

impacts to drilling message hitting over So have the preserve wanted decisions we've knew been good consistent to longer-term this capital high the over value had we'll that is terms grading, that made this over for it's wall where few last years. near-term to next that that more because that's But we versus of a years, see has on light. we coming in a if us and efficiency you consistent time few

Neal Dingmann

the a coming. be, latest already next will be rig seen. sixth that sixth or sort then, follow sense that be duration on that, that'll just to duration what get just And clearly year? price rig, on you wondering, plans of rig through up, No, rig on of, a might the trying the next do year, I'm have that firm of dependent

Joe Gatto

together pretty putting XXXX been the We've proactively. plans

some a very we'll the part months, be will plan the So detail more provide of for coming much here in XXXX. most this but of

all Importantly, drilling we've ladder gotten with ahead contracting the of, side, have maturities. especially of on of the we rig

flexibility if wanted some things some So and we certainty we we then add want flexibility, of that from to move throughout to needed make on to services the year the do have base if pivot. but sure plan, underpinned away we

Neal Dingmann

the hear. Joe. for to Thanks details, Great

Joe Gatto

Sure. Thanks, Neal.

Operator

question our Derrick We'll next Whitfield from take with Stifel.

Derrick Whitfield

Thanks. Good Congrats ops. strong morning, all. your on

Joe Gatto

Thanks, Derrick.

Derrick Whitfield

you, capital between Perhaps you dividend on a your to the your approaching share of sorry repurchases? a announce for deleveraging on and rapidly help goals, preferences thoughts appropriate you and split when you'd be frame are on or return in your Joe, -- views guys preferences as could position

Joe Gatto

since the with Kevin us been and start here, team. let front he's Board analysis management in through the I'll the out Sure. off walking

sure I'll I but can him cover this I'm pick So start well. let and up, if he'll

Kevin Haggard

of targets the on think, call been announce. Yes, to those We we we've couple hit consistent Derrick, for quarters. before I last want each

we'll here X have So still hit leverage we go. the ready But here. the those some times and and $X to between be and target, road billion we of debt

watching peers number returns In of a out what still terms mix to Board. look folks and of we're certainly we're of recommendations clarify will to doing. seeing shareholder our I preference, our like. what think, are there waiting that given We've But,

Joe Gatto

of to follow able to benefits the we company, Derrick, think to have to we I is a some nimble, in be one ways. on in allocate think, different fill just philosophically we as And, but being thing able that. have One being up details, that capital mid-cap

bolt-ons, that obviously, framework of to balance that limit think, debt live can allocate I with, pay any cetera. capital, for smaller our So have come to sheet principle returns we capital, out on to continue acquisitions the flexibility not overarching et opportunities type to be down of

want flexibility formulaic. to away overly that anything So taking with we that's avoid

Derrick Whitfield

Terrific. my I And to life of field your nine. as follow-up, concepts talk to page wanted on

is life for quarter. as broadly in in of investment there around a benefit And field past understand, intervals think, Howard for broad to you operator Pioneer's Maybe plans message speak I the the development view community, the I of asking could included development, misunderstanding could general and Reeves. I'm it? this activity

Jeff Balmer

is Absolutely. This Jeff Balmer.

And Howard page right-hand similar of stuff the So done cherry nine have has the good picking can companies on we the to to really of and best County. is then negative on left-hand your the representation would general what side. start in the done benefit potential and only what drilling up a ramifications Callon side

So has similar, Ponderosa earlier I the to large-scale horizontal pad committed what for is, a done, that and system. mentioned vertical to integrated remain instance, Callon

feet rest the Lower Spraberry of the strong Spraberry, pretty B. then which most Basin. drilled for instance, the multiple of Wolfcamp Midland So, Wolfcamp the an the recent in And hundreds a of extremely Middle which A interval stack, top performer has and well segregated is on both normally the the that's been pad

going out existing parent So the there you from completing have providing you're surrounding and if out. time at instance, spread you are really water, all think getting about and wells for by fairly once. about when you're offset also out and operational of your of bread-and-butter you and And drilling then wells the the complemented benefit efficiencies but advantaged XX-well they're project productivity zones, the high that water

we're section half is this So developing. that a

that production of parent They You returned have those you the have get to And quickly. for only time do. thing to limited amount shut-in a wells. relatively that's

Delaware. existing three or wells wells And but looks what similar drilling and which the it's as zones. delineation below there of to fairly drilling It's -- the above creates stack another different very the similar not in putting some are some or There two opportunity that coming production the of degradation six to out on later is vertically years for system. into deeper later the you're in like. and significant we are months alluded in an shallower it's organic You're slightly

the we've while the Wolfcamp stack C shown would your A drilling which So Wolfcamp got is the and in of return We're in be a kind Wolfcamp highest segments B green. primary also deeper test planned.

cherry to years the picking. all development it's do those effects. been have And rate back return if all on, is laterally I'll within opportunity. interfere And efficiency you'll whether have and but behind idea think very and to I robust the it another. answered years, profit come reiterate out Callon thoughtful and overall very you to opposed long doing this see due wells it all We've committed some this that Virtually are XXXX you'll have majority depletion two later so maximize other ratio, what the When each way or XXXX, commodity a simply of of investment And it call capital for three prices thoughtful going matter much way benefits at of year, development has once vertically been program. again were to doesn't Joe to to we Callon you a It's that best and to one drill of is it of stack that our it. time. and system a where this. very the reap program to out both as significant to better in even degradation a with if before, come cycle you or and wells the this continues there that to and name

Derrick Whitfield

been experiencing. to peers could if your your X. one referencing compliment that you headwinds the to just in design And for Is squeeze time first and guys X, some of on to speak now that midline some foremost, I your I outperformance slide the Jeff, guys But it wanted the question. you're could operations field slide some in really in benefiting you of from? of want or in because have definitely I performance? light year-over-year D&C -- are you Howard, focus on that drivers additional life I of mix location there mean there's but improvement incorporating

Jeff Balmer

that of that very Yeah. position. for And proud thanks pointing out. We're

case how of move in and some around outs, completion four system? we'll a the we intensity time development the that and thoughtful our in of system, benefits the determine we asset, in completion and it's you or position technology opportunities across we're them and look should it only helps reap able effects multiple next same already several outcome a to short-term for then to rock. capital doing that will neighboring on you're to are quite plugs, but drill another have how First this time on from in from with a and an different when we return what from will a drill items, perspective can asset have then, just the standpoint, have excellent development months design, watching What wells we are and over wells, it be shut because longer-term geomechanics can able what program, multi-basin come changes to it. that wells and and so when over opportunity its in breaks, so in and natural rig of the we attempt not those optimize do to put this out experiment committed productivity you a applied wells an four on those good development And of pads fluids a rig door we to takes the not you're bit of reservoir frac testing, That rock performance the foremost should transfers Its something how effects. rotate The a rig sister production. drill continues on the we in wells to we're to series these under program acreage the that's medium state. one And can and committed the come on and the to years of to it.

instance, into So when and developments sections for drill, the on large-scale we these and the half areas greenfield. Wyndham Podrosa units, relatively come back those Colonial are

areas. very you'll of development educated So approach this just to those the see robust

Derrick Whitfield

Thanks Great update your guys. for time.

Jeff Balmer

Thanks, Derrick.

Operator

We'll Instructions] Diamond our with next from question Citi. [Operator Paul take

Paul Diamond

time. morning. one. on to the actually question Good I my first bit start of a taking the last an Thanks for want answer

medium, more you much guys obviously I you slowing, So cadence guys developments? are there that can Slide you And much you out how guess view X guys see both showing guys production gains, some of do how of those bone kind you or is of think how do and more more their there? X, much ring

Jeff Balmer

Delaware than the mature Basin. The Midland less is

thoughts little probably my a because the less the Basin opportunity development perspective. it's in little a mature from higher and So a simply, an more Delaware bit on is of unknown

In addition, is what delineation. organic we're looking at some

on see lateral acquisition of relationships slightly zones evaluation. vertical and have would -- could of Delaware the you that or necessarily over in opportunity had wait? the over program acquisition Carrizo learning. drilled of with how some well-developed of done three of zones outstanding the development time set needed focused And has had effects a these zones, how in and be. those that an and independent I and interference other think Callon Primexx with flexing testing And white. weren't not then black on grow combined in time there's We'll more on some Callon data still Midland upside. its XXXX should more sets parent-child can evaluate each there's us. we'll for advantaged work be lateral to it is interpreted the But optimal distances. the they had to aggregate has built subsurface the seismic advantage to through three very October artificial sets, other. developed it. some the to that slightly Basin, what different the Not was continue Delaware and so and opportunity subsurface segregated has company the to it integrated and integration the different to next information the result optimize outcomes over in would from obviously same on that is so still data be time, originally but a to interact at to evaluate is But on the of prior they wells intelligence on were pretty time, machine But each we'll and some beneficiary some was it the Callon the mature other are timing I say you each it interact one So slightly get say now in but on evaluation the Callon Carrizo tremendous continue we've companies muscles a data more what that the is basin how

Paul Diamond

using kind guys -- out Understood. are quick How structure. points of And seeing follow-up. seen you that? impact trend unabated cadence your points as those inflation you pressure Thanks. particular then or guys Is development just you any have a conversations? guys up to just cost come plan or and How in XXXX continuing are the

Joe Gatto

I'll some level of areas at could high talk Yes. the the where seeing of to Jeff we're and start particular some probably a tightness.

think observations. categories major overall of are general in these again, And terms I industry plateauing. seen a the we've

we've active crews the services of said, can. been of price months and and I As products forward ahead over certainty moving XXXX much last getting couple getting as as the very and we right accessing and

hearing we've where So we're the to to estimates there that say the markets, up from we've spot of don't others of to year. is be we're I'd half want in stayed think months. have that. which heard of during ahead inflation We and last XX% moving that Overall, that to not things tick of But exposed the of spot again, probably the couple range range. started continued top course out up riding markets. I curve is in XX% are to seeing there the where out terms

services with let's let's the get So contracts in contracted crews place. right and and get real

side But in big people equipment. thing which program repeatable of price that's is adds also the turn, harder on the the of casing only lock on ticket with in pricing say development, over one but same there. probably certainty have just and not to We we're over repeated cost of I'd items a doing activity in things area so and same the benefits certainty,

to understand your in work want to get your with you well make If advance. plans sure your providers allocation they and

them casing this. do the in tighter? cost you're some get on have where know this that's and there's go steel contract Jeff, get you difficult showing for, out. plan. I'll business But want the estimates benefited XXXX We're on to you do or about this So it need shake some really is certainty pieces our don't by here's I ready you We sure that hit make getting probably to market. of just impact where to but of don't price ancillary other

Jeff Balmer

cost that really Labor doing be The as hit see doing you'll the to et short on keep in will is working them majority are the average the business good XXXX that Yeah. employees tend front pieces. than continues have the of employed average locations That to XXXX. performing keep of better their higher across in cost be the is of far been business an issue to board. What cetera. foot on companies as policies and summary

workover see you'll of to So a the see having availability that benefits solid. potential the items. chemicals of very that. those continue of pressure be items crews Other will anticipate But some kinds good will we some

in contracts or already our a negotiated. all where are are of We primary position being either negotiated are

confidence XXXX program. of have a we So high-level executing our in very

Paul Diamond

gentlemen. time your for Thanks Understood.

Joe Gatto

Thanks.

Operator

over today's remarks. would conclude or to that the closing Joe turn I to additional any does back Gatto And call question-and-answer like session. for

Joe Gatto

catching and always Thanks, Lisa. forward taking in the to call. Thanks the earnings quarter Year. appreciate everyone we'll questions. And the the I look out Thanks. the up time for New third time again

Operator

you Thank disconnect. today's concludes participation you your and may that presentation. now for And

Callon Petroleum (CPE) 3 Nov 222022 Q3 Earnings call transcript