Civitas Resources Inc (CIVI) 2023 Q4 法說會逐字稿

Good morning. My name is Audra, and I will be your conference operator today. At this time, I would like to welcome everyone to the Civitas Resources Fourth Quarter 2023 Earnings Conference Call. Today's conference is being recorded. (Operator Instructions) At this time, I would like to turn the conference over to Brad Whitmarsh, Vice President of Investor Relations. Please go ahead.

早安.我叫奧德拉，今天我將擔任你們的會議操作員。此時，我歡迎大家參加 Civitas Resources 2023 年第四季財報電話會議。今天的會議正在錄製中。 （操作員指示） 現在，我想將會議交給投資者關係副總裁布拉德惠特馬什 (Brad Whitmarsh)。請繼續。

Thank you, Audra. Good morning, everyone, and let me say that I'm thrilled to be a part of Civitas, a great team with great assets and a forward-thinking vision. I'm joined today by our CEO, Chris Doyle; CFO, Marianella Foschi; and COO, Hodge Walker. Today's webcast and conference call coincides with our fourth quarter 2023 and 2024 outlook release. Our published supplemental slides and the 10-K, all of which were published on our website yesterday. In addition, we've announced a large share repurchase transaction yesterday afternoon. So hopefully, you've had a chance to get through all of the materials that we have provided.

謝謝你，奧德拉。大家早安，讓我說，我很高興成為 Civitas 的一員，這是一個擁有巨大資產和前瞻性願景的偉大團隊。今天我們的執行長 Chris Doyle 也加入了我的行列。財務長瑪麗內拉·福斯基；和營運長霍奇·沃克。今天的網路廣播和電話會議恰逢我們發布 2023 年第四季和 2024 年展望。我們發布的補充幻燈片和 10-K，所有這些都在昨天發佈在我們的網站上。此外，我們昨天下午也宣布了一項大額股票回購交易。希望您有機會閱讀我們提供的所有資料。

During this call, we will make certain forward-looking statements, which are subject to risks and uncertainties that could cause actual results to differ materially from our projections. Please read our full disclosures regarding forward-looking statements and other disclaimers in our earnings materials and most recent SEC filings. We may also refer to certain non-GAAP financial metrics. Reconciliations of these items can be found in our earnings release and our SEC filings as well.

在本次電話會議中，我們將做出某些前瞻性陳述，這些陳述存在風險和不確定性，可能導致實際結果與我們的預測有重大差異。請閱讀我們在盈利材料和最近向美國證券交易委員會提交的文件中有關前瞻性陳述和其他免責聲明的完整披露。我們也可能參考某些非公認會計準則財務指標。這些項目的調節也可以在我們的收益報告和美國證券交易委員會的文件中找到。

After prepared remarks, we look over to a question-and-answer session. (Operator Instructions) I'll now turn the call over to Chris for opening comments.

在準備好發言後，我們將進行問答環節。 （操作員說明）我現在將把電話轉給 Chris 徵求開場意見。

Morning, everyone, and thanks for joining us today. Let me also welcome Brad to the Civitas team. There are 3 primary things I want to cover today before we take your questions. First, a quick recap of the significant progress we've made over the last year. Civitas is a remarkably different and stronger company today. Next, I'll share a few highlights from our fourth quarter and 2023 financial and operating results. Finally, we'll discuss our 2024 outlook and how we're extremely well positioned to create substantial shareholder value moving forward.

大家早安，感謝您今天加入我們。我也歡迎 Brad 加入 Civitas 團隊。在回答大家的問題之前，今天我想先講三件主要的事情。首先，快速回顧一下我們去年的重大進展。如今，Civitas 是一家截然不同且更強大的公司。接下來，我將分享我們第四季和 2023 年財務和營運績效的一些亮點。最後，我們將討論 2024 年的展望，以及我們如何處於有利位置，以創造可觀的股東價值。

Our '24 plan has been optimized compared to our previous outlook as we reduced our capital expenditures by $150 million while maintaining our expected full year production. So let's get started. A year ago, Civitas was a small cap, single-basin company focused solely on the DJ. Production was approximately 170,000 barrels of oil equivalent per day. And while our DJ Basin assets were and continue to perform exceptionally well, we have limited flexibility in how we allocate our capital. Using our strategic pillars as our North Star, we've been working to enhance the Civitas investment thesis and portfolio for nearly 2 years now. Being on the forefront of this consolidation wave, we looked at a significant number of opportunities to diversify, scale and strengthen our business.

與我們先前的展望相比，我們的 24 計畫得到了優化，因為我們在保持預期全年產量的同時減少了 1.5 億美元的資本支出。那麼就讓我們開始吧。一年前，Civitas 還是一家小型單盆公司，專注於 DJ。產量約為每天 17 萬桶油當量。儘管我們的 DJ Basin 資產過去和現在都表現出色，但我們在資本分配方面的靈活性有限。以我們的戰略支柱為北極星，近兩年來我們一直致力於增強 Civitas 的投資理念和投資組合。作為這股整合浪潮的前沿，我們尋找了大量的機會來實現業務多元化、規模化和強化。

During 2023, our team successfully entered a second world-class basin, the Permian through 3 separate large-scale transactions, all at compelling valuations. The transactions added scale and diversified our operations across 2 of the lowest breakeven oil basins in the U.S. as we more than doubled our production, doubled our reserves and doubled our inventory of high-return development wells. We have all of the key ingredients to deliver long-term value for our shareholders: an exceptional team, high-quality assets, inventory depth, a strong balance sheet, significant free cash flow and a track record of returning that cash to owners through cycle. We've significantly transformed Civitas over the last year, and our future has never been brighter.

2023年，我們的團隊透過3次獨立的大規模交易，成功進入了第二個世界級盆地——二疊紀盆地，所有交易的估值都令人信服。這些交易擴大了我們在美國兩個損益平衡點最低的油盆地的業務規模並實現了多元化，我們的產量、儲量和高回報開發井庫存增加了一倍多。我們擁有為股東創造長期價值的所有關鍵要素：卓越的團隊、高品質的資產、庫存深度、強大的資產負債表、大量的自由現金流以及在整個週期內向所有者返還現金的記錄。去年，我們對西維塔斯進行了重大改造，我們的未來從未如此光明。

Shifting now to 2023 results. I'm very pleased with our performance last year as our full year results were in line with guidance. What our teams were able to accomplish operationally and financially amidst the ongoing transformation at Civitas is remarkable. While our equity valuation is yet to catch up to our new asset base, we're confident we'll close this gap and deliver for our shareholders for years to come.

現在轉向 2023 年的成果。我對我們去年的表現非常滿意，因為我們的全年業績符合指導。在 Civitas 持續轉型的過程中，我們的團隊在營運和財務方面所取得的成就是令人矚目的。雖然我們的股權估值尚未趕上我們的新資產基礎，但我們有信心我們將縮小這一差距，並在未來幾年為我們的股東帶來回報。

Shareholder returns are 1 of our 4 strategic pillars. And last year, we returned nearly $1 billion to our shareholders. 2/3 of this was in the form of dividends and 1/3 in the form of share buybacks. Now over the last 2 years, we've given back more than $1.5 billion to our owners and that represents nearly 25% of our market cap.

股東回報是我們的四大策略支柱之一。去年，我們向股東返還了近 10 億美元。其中2/3以股利的形式，1/3以股票回購的形式。現在，在過去 2 年裡，我們已向所有者回饋了超過 15 億美元，占我們市值的近 25%。

Fourth quarter production was 279,000 barrels of oil equivalent per day. DJ Basin volumes outperformed expectations once again with strong productivity in our Watkins area, which is in the southern part of our DJ acreage. Fourth quarter Permian production was impacted by facility upgrades to some of our higher oil cut production in the Delaware. These upgrades were completed in November, and we exited this year strong, with December 2023 Permian production averaging 120,000 BOE per day, 50% of which was oil.

第四季產量為每天 279,000 桶油當量。 DJ 盆地產量再次超乎預期，位於我們 DJ 種植面積南部的沃特金斯地區生產力強勁。第四季二疊紀產量受到特拉華州部分較高石油產量的設施升級的影響。這些升級已於 11 月完成，今年我們強勢退出，2023 年 12 月二疊紀產量平均每天 12 萬桶油當量，其中 50% 是石油。

We took over operatorship of the Midland Basin assets late in the fourth quarter, and our early performance is encouraging as we're already seeing efficiencies through reduced drilling days and improved cycle times. Earlier this month, we took our over complete control of the Delaware operations, and I'm confident we'll achieve similar operational improvements throughout the year. With our Permian leadership team now fully in place, we have the right people, working the right assets, and we're primed and ready to deliver. Needless to say, I'm very excited about the opportunity ahead of us in the Permian.

我們在第四季末接管了米德蘭盆地資產的營運權，我們的早期業績令人鼓舞，因為我們已經看到透過減少鑽井天數和改善週期時間提高了效率。本月早些時候，我們完全控制了特拉華州的運營，我相信我們將在全年實現類似的營運改善。隨著我們的二疊紀領導團隊現已完全就位，我們擁有合適的人員，使用合適的資產，並且我們已做好交付準備。不用說，我對二疊紀地區面臨的機會感到非常興奮。

Year-end 2023 proved reserves totaled nearly 700 million barrels of oil equivalent, up about 70% from last year. This was largely driven by the Tap Rock and Hibernia acquisitions. None of the reserve numbers include Vencer, which closed January 2, and will add significant reserves in 2024.

2023年底探明儲量總計近7億桶油當量，比去年增加約70%。這主要是由 Tap Rock 和 Hibernia 收購推動的。所有儲備金數字都不包括 Vencer，該公司於 1 月 2 日關閉，並將在 2024 年增加大量儲備金。

Finishing up 2023, Civitas continued building a sustainable business, enhancing our environmental health and safety performance. Last year, we further reduced our total recordable incident rate and our score count. And through a pneumatic device retrofit program, we reduced CO2 emissions in the DJ by 420,000 metric tons, another amazing accomplishment by the Civitas team. We'll continue these efforts in the new year, and we're bringing our expertise and bringing our approach to the Permian.

2023 年結束時，Civitas 繼續打造永續發展的業務，提高我們的環境健康和安全績效。去年，我們進一步降低了總可記錄事故率和得分計數。透過氣動裝置改造計劃，我們將 DJ 的二氧化碳排放量減少了 42 萬噸，這是 Civitas 團隊的另一項驚人成就。我們將在新的一年繼續這些努力，並將我們的專業知識和方法引入二疊紀。

Shifting now to our 2024 outlook. Our optimized plan focuses on 3 primary objectives. First, continuing our momentum in the DJ and successfully integrating our new Permian assets. Second, maximizing free cash flow through disciplined and returns-focused investments. And third, maintaining our industry-leading shareholder returns while also improving our balance sheet.

現在轉向我們的 2024 年展望。我們的最佳化計劃專注於 3 個主要目標。首先，繼續我們在 DJ 領域的發展勢頭並成功整合我們的新二疊紀資產。其次，透過有紀律和注重回報的投資來最大化自由現金流。第三，維持業界領先的股東回報，同時改善我們的資產負債表。

As I mentioned earlier, we enhanced our '24 plan by reducing CapEx 7% or $150 million while maintaining our production outlook. These planned improvements were achieved through optimized activity levels and reduced cycle times across the business along with productivity enhancements in the DJ. Our CapEx will be more weighted to the first half of the year, primarily as we're coming off higher legacy activity levels in the Permian. Production volumes are anticipated to increase modestly through the year.

正如我之前提到的，我們在維持生產前景的同時，透過減少 7% 或 1.5 億美元的資本支出來增強我們的 24 計畫。這些計劃中的改進是透過優化活動水平、縮短整個企業的周期時間以及提高 DJ 的生產力來實現的。我們的資本支出將在今年上半年得到更大的權重，主要是因為我們正在擺脫二疊紀較高的遺留活動水準。預計今年產量將小幅成長。

First quarter oil volumes reflect a new takeaway agreement in the Rockys where we have some line fill inventory to build. This agreement represents over 100 million in incremental value to Civitas over the next 5 years, and we're excited about it.

第一季的石油量反映了落基山脈的一項新的外賣協議，我們在那裡有一些線路填充庫存需要建立。該協議代表 Civitas 在未來 5 年內將增加超過 1 億美元的價值，我們對此感到非常興奮。

Net of the line fill, net of weather impacts, January production still came in at 325,000 BOE per day. About 60% of our 2024 CapEx will be allocated to the Permian, where we're targeting 130 to 150 gross wells this year. Approximately 70% of our Permian lines will be in the Midland, with the remaining 30% in the Delaware. Because we've only recently taken over operatorship of the Permian assets, we've kept our drilling completion and facility cost per foot flat versus our acquisition assumptions. As such, the opportunity to drive capital efficiencies in the Permian is significant, and I expect we'll have meaningful updates later this year as we establish our performance track record in the Permian. The remaining 40% of our anticipated CapEx will be allocated to the DJ, where our core Watkins development area continues to impress. Based on recent production performance in Watkins, we raised our expected recovery in our near-term development area by 10% versus prior estimates.

扣除生產線填充量和天氣影響，1 月份產量仍為每天 325,000 桶油當量。我們 2024 年資本支出的約 60% 將分配給二疊紀盆地，我們今年的目標是鑽探 130 至 150 口油井。我們的二疊紀生產線大約 70% 將位於米德蘭，其餘 30% 將位於德拉瓦州。由於我們最近才接管二疊紀資產的營運權，因此我們的鑽井完井成本和每英尺設施成本與我們的收購假設持平。因此，提高二疊紀資本效率的機會非常重大，我預計，隨著我們在二疊紀建立業績記錄，我們將在今年稍後獲得有意義的更新。我們預期資本支出的剩餘 40% 將分配給 DJ，我們的沃特金斯核心開發區繼續給人留下深刻印象。根據沃特金斯最近的生產表現，我們將近期開發區域的預期復甦比先前的估計提高了 10%。

The majority of our 2024 DJ Basin activity will be in the Watkins area. In January, we filed our third comprehensive area plan in Watkins. We expect the previously submitted Lowry CAP to be approved in mid-2024 and the latest (inaudible) CAP to be approved late this year or early 2025. Including the initial Box Elder CAP, these 3 CAPs represent nearly 80% of the remaining 300 or so locations in Watkins, and most of the non-CAP locations are covered by an existing OGDP, so we feel very confident in our plans and outlook in the DJ for the next several years.

我們 2024 年 DJ Basin 的大部分活動將在沃特金斯地區進行。一月份，我們在沃特金斯提交了第三個綜合區域規劃。我們預計先前提交的Lowry CAP 將於2024 年中期獲得批准，最新（聽不清楚）的CAP 將於今年年底或2025 年初獲得批准。包括最初的Box Elder CAP，這3 個CAP 佔剩餘300 個或更多個CAP 的近80%。因此，沃特金斯的地點以及大多數非 CAP 地點都由現有的 OGDP 覆蓋，因此我們對 DJ 未來幾年的計劃和前景非常有信心。

We're maintaining our peer-leading shareholder return framework. At $75 oil and $2.75 gas, we estimate free cash flow to be approximately $1.3 billion in 2024. Dividends, including base and variable are estimated at approximately $600 million this year or $6 per share, a nearly 10% yield based on our current stock price.

我們正在維持同業領先的股東回報框架。以75 美元的石油和2.75 美元的天然氣計算，我們預計2024 年自由現金流約為13 億美元。今年的股息（包括基本股息和可變股息）預計約為6 億美元，即每股6 美元，基於我們目前的股價，收益率接近10% 。

In addition to our targeted divestment proceeds, the remaining $700 million in free cash flow will be prioritized for the balance sheet and opportunistic share buybacks like the one we announced yesterday, fully exiting NGP from our shareholder base. We now have approximately $425 million remaining on our share repurchase authorization. Our current trading level equates to a free cash flow yield in excess of 20%. We believe this is a tremendous investment opportunity considering the quality of our asset base and our low-cost structure.

除了我們的目標撤資收益之外，剩餘的 7 億美元自由現金流將優先用於資產負債表和機會性股票回購，就像我們昨天宣布的那樣，將 NGP 完全退出我們的股東基礎。目前，我們的股票回購授權尚剩餘約 4.25 億美元。我們目前的交易水準相當於自由現金流收益率超過 20%。考慮到我們的資產基礎品質和低成本結構，我們相信這是一個巨大的投資機會。

Our commitment to the strong balance sheet is unwavering. Our long-term target for leverage is unchanged at 3/4 of a turn. Our divestment program remains on track. During the fourth quarter of last year, we sold a nonoperated acreage position in the DJ with essentially no production at a compelling valuation. It's represented about 100 gross or 40 net non-operated locations. They're low working interest assets, where we had no control over development timing and the area was not in the operator's near-term development plan.

我們對強勁資產負債表的承諾堅定不移。我們的長期槓桿目標維持在 3/4 圈不變。我們的撤資計劃仍在按計劃進行。去年第四季度，我們以令人信服的估值出售了 DJ 的非營運土地，基本上沒有生產。它代表了大約 100 個總非營運地點或 40 個淨非營運地點。它們是低營運利息資產，我們無法控制開發時間，而且該區域也不在營運商的近期開發計劃中。

Completed divestments to date total about 1/3 of our $300 million target. We're on track and confident that we'll complete the remainder by the middle part of this year.

迄今已完成的撤資總額約為我們 3 億美元目標的 1/3。我們正在按計劃進行，並有信心在今年中期完成剩餘的工作。

Wrapping up, let me go back to where I started my comments today. Civitas is a significantly transformed company with all the key ingredients to deliver long-term shareholder value. We are differentiated from our peers through scale, asset durability, cash returns to shareholders and an employee base that consistently delivers.

總結一下，讓我回到今天開始發表評論的地方。 Civitas 是一家經過重大轉型的公司，具備實現長期股東價值的所有關鍵要素。我們在規模、資產耐用性、股東現金回報以及持續交付的員工基礎上與同行區分開來。

Before we move to Q&A, I want to give a quick shout out to our field teams who have managed through some incredibly challenging weather over the last couple of months. Companies often talk about employees being their greatest asset, and our Civitas employees are proving it, highlighted by our team recently limiting downtime in the DJ during an extreme weather event where temperatures reached 30 below 0.

在我們進行問答之前，我想快速向我們的現場團隊表示感謝，他們在過去幾個月中克服了一些極其具有挑戰性的天氣。公司經常談論員工是他們最大的資產，我們的 Civitas 員工正在證明這一點，我們的團隊最近在極端天氣事件（氣溫達到 0 度以下 30 度）期間限制 DJ 的停機時間就強調了這一點。

I want to personally thank the men and women who work hard to deliver some of the lowest carbon barrels in North America. They do this every day, no matter what the weather looks like outside.

我想親自感謝那些努力工作以提供北美碳含量最低的桶的人們。無論外面的天氣如何，他們每天都會這樣做。

Operator, we're now happy to take questions.

接線員，我們現在很樂意回答問題。

(Operator Instructions) We'll go to our first question from Neal Dingmann at Truist Securities.

（操作員說明）我們將回答 Truist Securities 的 Neal Dingmann 提出的第一個問題。

Nice quarter. My first question is on the '24 Permian production guide. I think you talked about 170,000 BOE per day, around 140 wells that now include -- will include Vencer. So I'm just wondering, Chris, could you or the team give some color on the regional focus and maybe more importantly, what type of cycle times or operational efficiencies you believe are achievable now that you've got all the assets combined.

不錯的季度。我的第一個問題是關於 '24 二疊紀生產指南。我認為您談到了每天 170,000 BOE，大約 140 口井，現在包括 - 將包括 Vencer。所以我只是想知道，克里斯，您或您的團隊能否對區域重點進行一些說明，也許更重要的是，您認為既然您已經將所有資產結合起來，可以實現什麼類型的周期時間或營運效率。

Sure. Thanks for the question, Neal. I'll kick it off and then kick it over to Hodge. In terms of the 2024 guide, as we mentioned, we expect to see production growth throughout the year. In terms of the split for the year, we're about 70-30, until 70% of the TILs will be from Midland, 30% from the Delaware. We like the production profile growing a little bit through the year. Have started out the year very strong, coming off a really strong exit. In terms of capital efficiencies and how we've constructed this program, we're early on. It's early days, certainly. I love seeing the team already delivering 20%, 30% reduction in drilling days. We're also accelerating TIL times. And I'm excited with this team that we've built will do. We've not reflected any additional significant efficiency gains in either side of the Permian. So we think it's the right way to set up 2024, and we think there's room to enhance as we go through the year. Hodge, why don't you jump in on some of the specifics.

當然。謝謝你的提問，尼爾。我會把它踢出去，然後把它踢給霍奇。就 2024 年指南而言，正如我們所提到的，我們預計全年產量都會成長。就今年的分配而言，我們大約是 70-30，直到 70% 的 TIL 將來自米德蘭，30% 來自德拉瓦。我們希望產量在這一年中有所成長。今年開局非常強勁，退出也非常強勁。就資本效率以及我們如何建立該計劃而言，我們處於早期階段。當然，現在還為時過早。我很高興看到團隊已經將鑽井天數減少了 20%、30%。我們也加快了 TIL 時間。我對我們建立的這個團隊的能力感到興奮。我們沒有反映出二疊紀兩側任何額外的顯著效率提升。因此，我們認為這是設定 2024 年的正確方式，我們認為隨著這一年的發展，還有改進的空間。霍奇，為什麼不談談一些具體細節呢？

Yes. Thanks, Chris. Neal, as you know, we're real early days with taking over operatorship. We just took over operatorship on the Hibernia assets here at the end of November. And on the Tap assets here just earlier this month. But to the point that Chris mentioned, the team has already got some early quick wins. We've high-graded some rigs out in the Midland Basin, seeing some improvements on drilling times by 20%. We're doing more modular builds versus stick builds, which help us accelerate facilities until timing. If you look at the broader efficiencies, it really is all about drilling completions and TIL timing. We are returns focused. Part of that return is really shortening that time from capital deployment to TIL. If we can consolidate some of that completion and bring revenue forward, we're going to do that.

是的。謝謝，克里斯。尼爾，如你所知，我們接管營運權還處於早期階段。我們剛剛在 11 月底接管了 Hibernia 資產的營運權。就在本月早些時候，這裡還有 Tap 資產。但就克里斯提到的這一點而言，球隊已經取得了一些早期的快速勝利。我們對米德蘭盆地的一些鑽孔機進行了高等級改造，鑽井時間縮短了 20%。與棒式建造相比，我們正在進行更多的模組化構建，這有助於我們加速設施的建設，直到時機成熟。如果您著眼於更廣泛的效率，您會發現這實際上與鑽井完井和 TIL 時間有關。我們注重回報。這種回報的一部分實際上是縮短了從資本部署到 TIL 的時間。如果我們能夠鞏固部分已完成的工作並提前增加收入，我們就會這樣做。

That's great upside, guys. And then Chris, maybe my second one for you, just on shareholder return and capital allocation. You all continue to have among the best payouts, even notable that this obviously this great NGP buyback and the leading dividend yield. I'm just wondering, we all continue with the same sort of systematic sort of return plan and just with the 50% plus and what and how flexible you are on buybacks versus dividends going forward?

夥計們，這有很大的好處。然後克里斯，也許是我給你的第二個問題，只是關於股東回報和資本分配。你們都繼續擁有最好的派息，甚至值得注意的是，這顯然是這次偉大的 NGP 回購和領先的股息收益率。我只是想知道，我們都繼續採用相同的系統性回報計劃，只是 50% 以上，以及您在回購與股息方面的靈活性如何？

Sure. I'll kick this off and then kick it over to Marianella. I think the first thing I'd say is we've built this track record of an all of the above approach. If you look at what we've delivered through last year and even as we started 2024, a good mix between dividends and buybacks. And that really comes down to the strength of the assets and the teams that are managing those assets. I think it's important to understand the company was formed with a very clear mandate, and that was to return cash to our shareholders. We've done that. We've chosen to do that. We'll continue to do that with a mix of the variable -- the fixed, the variable and buybacks. Marianella, would you add?

當然。我先把這件事開始，然後交給瑪麗內拉。我想我要說的第一件事是我們已經建立了上述所有方法的追蹤記錄。如果你看看我們去年以及 2024 年伊始所交付的成果，就會發現股利和回購之間的良好組合。這實際上取決於資產和管理這些資產的團隊的實力。我認為重要的是要了解公司的成立有非常明確的使命，那就是向股東返還現金。我們已經做到了。我們選擇這樣做。我們將繼續透過混合變數——固定變數、變數和回購——來做到這一點。瑪麗內拉，你能補充一下嗎？

Yes, absolutely. Neal, if you look at what we've done to date, we have an extremely strong track record of doing so and returning cash to shareholders really as good as anybody. We completed nearly $400 million in stock repurchases at a weighted average price of $61 and change. So obviously, very attractive levels. We also paid $670 million in dividends during the course of 2023. And like we said in the prepared remarks, we've returned 25% of our market cap to shareholders just in the last 2 years alone. And I think it's important to note that we did all of that while taking a meaningful step to diversify our asset base and afford ourselves just more capital allocation flexibility by entering the Permian at very accretive multiples even if you look at it on a debt-adjusted basis. So going forward, you could continue to expect us to do just that. Just expect us to continue this strong track record of returning cash to shareholders through cycles.

是的，一點沒錯。尼爾，如果你看看我們迄今為止所做的事情，你會發現我們在這方面有著非常出色的記錄，並且向股東返還現金的記錄確實與任何人一樣好。我們以 61 美元的加權平均價格完成了近 4 億美元的股票回購。顯然，非常有吸引力的水平。我們還在 2023 年期間支付了 6.7 億美元的股息。正如我們在準備好的發言中所說，僅在過去兩年，我們就向股東返還了 25% 的市值。我認為重要的是要注意，我們在採取有意義的步驟來實現資產基礎多元化的同時，透過以非常增值的倍數進入二疊紀，為自己提供更多的資本配置靈活性，即使你從債務調整後的角度來看，我們也做到了這一切。基礎。因此，展望未來，您可以繼續期望我們這樣做。希望我們能夠繼續保持在各個週期向股東返還現金的良好記錄。

And like Chris said, and this all of the above philosophy. We believe this philosophy has really served us well to date. And I would say -- I mean, look, if you look at our equity prices, they don't really reflect the value of our high-quality asset base, which is why you saw us capitalize on that yesterday. If you look at our free cash flow during 2023 at $75 oil is $1.3 billion, which is over a 20% yield, or said differently, will pay our entire market cap in under 5 years. And I will also note that we remain extremely committed to the balance sheet and achieving that 0.75x leverage target. I mean, look, we don't need to get there tomorrow, but for us, it's more so about taking meaningful steps and making meaningful progress towards that every single day. That's why you saw us come out with the asset sale program last year to accelerate that delevering target.

正如克里斯所說，這就是上述所有哲學。我們相信，迄今為止，這理念確實對我們很有幫助。我想說——我的意思是，如果你看一下我們的股價，它們並沒有真正反映我們優質資產基礎的價值，這就是為什麼你昨天看到我們利用了這一點。如果你看看我們 2023 年的自由現金流為 75 美元，石油就是 13 億美元，收益率超過 20%，或者換句話說，將在不到 5 年內支付我們的整個市值。我還要指出的是，我們仍然極度致力於資產負債表並實現 0.75 倍的槓桿目標。我的意思是，你看，我們不需要明天就到達那裡，但對我們來說，更重要的是每天採取有意義的步驟並為此取得有意義的進展。這就是為什麼我們去年推出了資產出售計劃，以加速去槓桿化目標。

And between our asset sale program and our free cash flow this year, we'll have about $1 billion to be allocated to balance sheet as well as the buyback program. I mean, look, it's all a balance, right? I mean our focus is to create shareholder value if there's the opportunity to do that. And so it's really just a question of balancing, making progress towards that leverage target and along with capitalizing on very cheap opportunities to buy our stock. And so I know I said a lot there, but I just wanted to give you a flavor as far as our decision matrix goes. And for all those reasons, I mean, we think our equity right now represents a very compelling entry point, and Civitas is well positioned as good as anybody to capitalize on that.

在今年的資產出售計畫和自由現金流之間，我們將有大約 10 億美元分配給資產負債表和回購計畫。我的意思是，看，這一切都是平衡的，對吧？我的意思是，如果有機會的話，我們的重點是創造股東價值。因此，這實際上只是一個平衡的問題，在實現槓桿目標方面取得進展，並利用非常便宜的機會購買我們的股票。所以我知道我在那裡說了很多，但我只是想讓你了解我們的決策矩陣。基於所有這些原因，我的意思是，我們認為我們的股權現在代表了一個非常引人注目的切入點，而 Civitas 和其他人一樣處於有利地位，可以利用這一點。

We'll go next to Tim Rezvan at KeyBanc Capital Markets.

接下來我們將採訪 KeyBanc Capital Markets 的 Tim Rezvan。

I wanted to dig into the Permian a little more, given your position, just got bigger at the start of the year with Vencer. Do you plan any similar sort of facilities work as you integrate the new assets? And I'm just trying to think how we should think about items like LOE going forward? Do you see some short-term increases to get longer-term decreases? Any big picture comments you have on sort of what's -- what you plan to do in the field this year following what you did in the fourth quarter would be helpful.

考慮到你的職位，我想進一步深入研究二疊紀，今年年初與 Vencer 的合作規模更大。在整合新資產時，您是否計劃進行任何類似的設施工作？我只是想思考我們應該如何考慮像 LOE 這樣的計畫？您是否認為一些短期成長會導致長期下降？繼第四季度所做的事情之後，您對今年計劃在該領域做什麼的任何大局評論都會有所幫助。

Sure. The fourth quarter facility upgrades that we saw was really about short-term pain for long-term gain, and enhancing flow assurance in the Delaware. We've done similar facility upgrades and tweaks already this quarter with minimal downtime. And so we think that's a one-off. I think importantly, as we think about Vencer and the integration efforts that have kicked off, much different than with Tap Rock and Hibernia. We have the platform in place. We have a leadership team in place along with all the supporting -- support staff that will drive a successful integration. These are assets that the team is very familiar with the basin that they've worked for a long time. I think we've shown, as we've exited the year and moved into this quarter, assets are better in our hands. And I'm excited to see what the team can deliver. I'm most excited to be able to accelerate the integration with Vencer and see what the assets can deliver. We don't see any similar sort of one-off facility upgrades like we experienced in October, November. But this is also a team that's going to look for every single way to optimize the business. Hodge, anything you would add?

當然。我們看到的第四季度設施升級實際上是為了長期收益而付出短期痛苦，並增強特拉華州的流量保證。本季我們已經完成了類似的設施升級和調整，停機時間最少。所以我們認為這是一次性的。我認為重要的是，當我們考慮 Vencer 和已經開始的整合工作時，它與 Tap Rock 和 Hibernia 有很大不同。我們已經有平台了。我們擁有一支領導團隊以及所有支援人員，將推動成功的整合。這些都是團隊對他們長期工作的盆地非常熟悉的資產。我認為，隨著我們結束這一年並進入本季度，我們已經表明，我們手中的資產變得更好了。我很高興看到團隊能夠提供什麼。我很高興能夠加速與 Vencer 的整合並看看這些資產可以提供什麼。我們沒有看到任何類似的一次性設施升級，就像我們在 10 月、11 月經歷的那樣。但這也是一個將尋找各種方法來優化業務的團隊。霍奇，你還有什麼要補充的嗎？

Just adding a bit of color to Chris' commentary. The work that was done there during the October-November time frame was really all about debottlenecking, optimizing flow assurance and minimizing downtime. And that work really was associated with some specific facilities, and that's behind us. And that's proven by the way that we exited the year at 120,000 barrels a day for the month of December and the strong entrance into this year. The team is always looking for opportunities to optimize things. But at the same time, we will look for efficiencies everywhere we can.

只是為克里斯的評論添加一點色彩。 10 月至 11 月期間所做的工作實際上都是關於消除瓶頸、優化流量保證和最大限度地減少停機時間。這項工作確實與一些特定的設施有關，而這些設施就在我們身後。我們 12 月的日產量為 12 萬桶，今年結束時的產量以及今年的強勁表現就證明了這一點。團隊一直在尋找優化事物的機會。但同時，我們將盡一切努力提高效率。

Okay. Then (inaudible)...

好的。然後（聽不清楚）...

In terms of cost structure, sorry, just getting to the second part of your question. We exited the year with all-in cash costs around 950 or so -- just over 950. That's right at the middle of our guide for 2024. There are likely some synergies that have not been baked into that number with Vencer volumes coming over, but we feel very confident in how we exited the year, and as we lay out a very low and competitive cost structure in '24.

就成本結構而言，抱歉，我只是回答問題的第二部分。我們以 950 美元左右的總現金成本結束了這一年，剛剛超過 950 美元。這正好是我們 2024 年指南的中間位置。隨著 Vencer 銷量的增加，這個數字可能還沒有體現出一些協同效應，但我們對如何結束這一年充滿信心，因為我們在24 年制定了非常低且具競爭力的成本結構。

Okay. I appreciate that color. And then as my follow-up, I wanted to ask here in Colorado, there was a proposal that came out recently, SB24-159, where some of the Democrats in the state are proposing a phaseout of drilling towards the end of the decade. I know it's early stages, but can you talk about what you or you collectively as the industry are sort of doing in response to this proposal?

好的。我很欣賞那種顏色。然後，作為我的後續行動，我想在科羅拉多州詢問，最近提出了一項提案 SB24-159，該州的一些民主黨人提議在本世紀末逐步停止鑽探。我知道現在還處於早期階段，但是您能談談您或您整個行業正在採取哪些措施來回應這一提議嗎？

Sure. I'll kick this off and then kick it over to Hodge. A similar push was -- that occurred about a year ago. The governor came out very strongly in opposition of that measure. They tried to go through a ballot initiative, didn't get the signatures, didn't get the financial support. Here it comes again this quarter. We don't think it's going anywhere. We're actively engaged at all levels within Colorado. And Hodge any additional color on where that sits today.

當然。我會先把這件事開始，然後交給霍奇。大約一年前發生了類似的推動。州長強烈反對這項措施。他們試圖透過投票倡議，但沒有簽名，也沒有得到財政支持。這個季度又來了。我們認為它不會有任何進展。我們在科羅拉多州的各個層面積極參與。並在今天的位置上霍奇任何其他顏色。

Yes. Kind of building off of that to your point on where the industry is. We, with the industry, continue to work with our -- with the trades and work with the legislature. I think one of the things to note here is there doesn't appear to be a whole lot of support sitting in the legislature right now. As Chris mentioned, last year, the governor came out against this bill. Earlier this week, he came out with his greenhouse gas road map. And in that road map, he mentioned that a production phase out at the scale large enough to make any meaningful impact would really drive up cost of living for many Coloradans, which really can't afford that kind of an increase to living costs. So I think that gives you a sense of his indication of where he stands, which is similar to where it was last year.

是的。以此為基礎來闡述你對產業現狀的看法。我們與業界一起，繼續與我們的行業以及立法機構合作。我認為這裡需要注意的一件事是，目前立法機關似乎沒有得到太多支持。正如克里斯所提到的，去年，州長公開反對這項法案。本週早些時候，他公佈了溫室氣體路線圖。在該路線圖中，他提到，大規模的生產淘汰足以產生任何有意義的影響，這確實會提高許多科羅拉多人的生活成本，而他們確實無法承受這種生活成本的增加。所以我認為這可以讓你了解他的立場，這與去年的情況相似。

We'll move next to Leo Mariani from ROTH MKM.

我們將移至 ROTH MKM 的 Leo Mariani 旁邊。

I just wanted to just follow up a little bit on the Permian here. It certainly feels like there could be a lot of low-hanging fruit from an operational perspective. I know you haven't really baked in any efficiencies in the 2024 program. But I was hoping maybe if you looked out around a year or so from now. I mean, just trying to get a sense of what type of improvements could materialize? And could we see something like a up to a 10% reduction, like D&C cost per foot? And are we also likely to see just improved EURs out there as well to get the double whammy. It just -- it feels like there's kind of some low-hanging fruit here, and I'm assuming you guys maybe have some internal targets about what you might do over, say, the next year.

我只是想稍微跟進一下二疊紀。從營運角度來看，確實感覺可能有很多唾手可得的成果。我知道您在 2024 年計劃中還沒有真正提高任何效率。但我希望，如果你從現在起大約一年左右的時間觀察的話。我的意思是，只是想了解可以實現哪些類型的改進？我們能否看到諸如每英尺 D&C 成本降低 10% 之類的事情？我們是否也可能會看到歐元的改善，從而遭受雙重打擊。只是——感覺這裡有一些容易實現的目標，我假設你們可能有一些關於明年可能要做的事情的內部目標。

Yes. Thanks, Leo. I'll kick us off here. I appreciate the question. I think -- first thing I would say is look how Civitas has managed and developed the DJ. And those lessons don't necessarily stop at the borders, we go south into the Permian. This is a team and a leadership team that is focused on returns. It is focused on continuous improvement, and we are super competitive. Take that mindset into the Permian. We've built this -- built out the team, and they have -- they are very like-minded. What we were focused on in our '24 guide is we've got to deliver this. There are many companies that have tried to do what we are doing and not been able to deliver. And so we did take rightfully so a conservative view into 2024. We know that the Permian is a different animal. We've got the team to execute. I think where you're guiding potential cost savings per foot, I think that's very achievable. We've got a team that doesn't want to be just part of the pack. They want to be ahead of the pack. And if that's the case, then a 10% reduction in cost per foot, getting drilling days down into single digits, that's all going to be part of it. We're just not going to come out with a plan that prebakes success because we know the pitfalls that could arise from that. So I think you're thinking about it correctly. We're excited to get another quarter under our belt and continue to build that track record, a track record that we've built in the DJ, we want to replicate in the Permian.

是的。謝謝，利奧。我會把我們從這裡踢出去。我很欣賞這個問題。我想——我首先要說的是看看 Civitas 是如何管理和培養 DJ 的。這些教訓不一定只限於邊境，我們向南進入二疊紀。這是一個注重回報的團隊和領導團隊。它專注於持續改進，我們具有超強的競爭力。將這種心態帶入二疊紀。我們已經建立了這個團隊，他們也非常志同道合。我們在 24 小時指南中關注的重點是我們必須實現這一點。有許多公司嘗試過我們正在做的事情，但未能實現。因此，我們確實對 2024 年採取瞭如此保守的看法。我們知道二疊紀是一種不同的動物。我們有團隊來執行。我認為如果你指導每英尺潛在的成本節省，我認為這是非常可以實現的。我們的團隊不想只是成為其中的一部分。他們想要領先。如果是這樣的話，那麼每英尺成本降低 10%，將鑽井天數減少到個位數，這都是其中的一部分。我們只是不會制定一個預先成功的計劃，因為我們知道這可能會產生陷阱。所以我認為你的想法是正確的。我們很高興能再過一個季度，並繼續創造這一記錄，我們在 DJ 中建立的記錄，我們希望在二疊紀複製。

Okay. That would certainly be an impressive if you guys are very successful there. And then just maybe jumping over to the thought process around buybacks. I think, obviously, very successful buyback that you just announced, taking NGP out. I know it's kind of always hard to know, but I know you guys clearly have some other type of PE/insider shareholders in the stock. Is there a pretty strong appetite within Civitas to continue to maybe clean up some of these legacy shareholders that really came to the company through some of the M&A that you all did over time. And how do you kind of think about that in terms of balancing debt reduction? As I know you've got the goal to get to 0.75x, but it sounds like you guys are going to be a little bit patient there. So maybe there's more firepower for more buybacks at the right time here in '24.

好的。如果你們在那裡非常成功，那肯定會令人印象深刻。然後可能會跳到圍繞回購的思考過程。我認為，顯然，您剛剛宣布的回購非常成功，將 NGP 剔除。我知道這總是很難知道，但我知道你們的股票中顯然還有其他類型的私募股權/內部股東。 Civitas 內部是否有強烈的興趣繼續清理一些遺留股東，這些股東實際上是透過你們長期以來所做的一些併購來到公司的。您如何看待平衡債務削減方面的問題？就我所知，你們的目標是達到 0.75 倍，但聽起來你們需要有一點耐心。因此，也許 24 年在適當的時候會有更多的火力進行更多的回購。

Yes, absolutely. Leo, this is Marianella. I mean, look, we will continue being opportunistic. Like I said earlier, we hold that 0.75x target very true to ourselves. It's one of four pillars. Our North Star, however, is creating shareholder value. I mean we have done market -- open market repurchases. We also have a track record of negotiating direct purchases. It's a good way of getting a lot and getting at a discount. So we -- I will note that we do have a decent amount remaining in our authorization, $425 million. And we'll continue to do so. We'll continue executing at attractive prices, again, $61 and changes our weighted average share repurchase price and then obviously a meaningful discount where we are, which is still a discounted level relative to our peers and relative to the quality of our asset base. So -- we will continue doing both. We'll continue to do open market repurchases as well as buying in block and then just pounce on where the best opportunities lie.

是的，一點沒錯。利奧，這是瑪麗內拉。我的意思是，看，我們將繼續機會主義。正如我之前所說，我們堅信 0.75 倍的目標非常真實。它是四大支柱之一。然而，我們的北極星正在創造股東價值。我的意思是我們已經進行了市場——公開市場回購。我們也擁有直接採購談判的記錄。這是獲得大量商品並享受折扣的好方法。因此，我要指出的是，我們的授權中確實還剩下相當可觀的金額，即 4.25 億美元。我們將繼續這樣做。我們將繼續以有吸引力的價格執行，同樣是61 美元，並改變我們的加權平均股票回購價格，然後顯然是一個有意義的折扣，相對於我們的同行和我們的資產基礎質量，這仍然是一個折扣水平。所以——我們將繼續兩者兼而有之。我們將繼續進行公開市場回購以及大量購買，然後抓住最好的機會。

We'll take our next question from Oliver Huang at TPH&Co.

我們將回答 TPH&Co. 的 Oliver Huang 提出的下一個問題。

I just wanted to jump over to the DJ. As we kind of think about the uplifted EURs out of the Watkins area year-over-year that you all have kind of seen in your 2023 results. Just wanted to get a sense of what drives the confidence that the outperformance will continue? And was there something that was kind of done differently between the 2022 and 2023 programs that drove that uplift?

我只是想跳到 DJ 那裡。當我們想到沃特金斯地區的歐元逐年上漲時，你們都在 2023 年的表現中看到了這一點。只是想了解是什麼推動了人們對優異表現將持續下去的信心？ 2022 年和 2023 年的計畫是否採取了不同的做法來推動這項提升？

Sure. I'll kick this off and see if Hodge wants to add anything. Yes, '23 was different than '22. '22 was different than '21, '24 is different than '23. We are continually working on how do we enhance returns. Some of the big moves from '22 to '23 were around extended laterals. We had going into that risk the additional mile. And what we saw was the degradation in that third mile just didn't show up or didn't -- certainly didn't show up to the level that we had risked. That was a big driver. We were always tweaking completion design, development, spacing, and how we flow back wells, how we bring wells on, and the team has done a phenomenal job getting stronger every single quarter. So we've rolled some of those enhancements and improvements into the '24 plan, but it is a stark performance improvement year-over-year. I'm super proud of what the team was able to deliver. This is some of the -- this is great rock. This is great rock. These returns will compete for capital within the Permian, and that's why you're seeing us allocate so much capital into the Watkins. And you couple that with 3 CAPs that will cover the vast majority of it. This is an area that's primed to deliver for Civitas for a number of years to come.

當然。我將開始討論霍奇是否想添加任何內容。是的，23 年與 22 年不同。 '22 與 '21 不同，'24 與 '23 不同。我們不斷致力於如何提高回報。從 22 年到 23 年的一些重大舉措是圍繞著擴展側向進行的。我們不得不冒著額外的風險。我們看到的是第三英里的退化沒有出現，或者沒有出現——當然沒有達到我們所冒的風險的水平。那是一個大司機。我們一直在調整完井設計、開發、間距、以及如何回流井、如何讓井啟動，團隊做得非常出色，每季都變得更強。因此，我們已將其中一些增強和改進納入 '24 計劃中，但與去年同期相比，性能有了明顯的提高。我對團隊能夠交付的成果感到非常自豪。這是一些偉大的搖滾樂。這是一塊偉大的岩石。這些回報將在二疊紀盆地爭奪資本，這就是為什麼我們將如此多的資本分配到沃特金斯盆地。然後將其與 3 個 CAP 結合起來，這將涵蓋其中的絕大多數。這是一個準備在未來幾年為西維塔斯帶來好處的地區。

Yes, Oliver, I'd just add to a couple of the points that Chris mentioned. I mean if you look at our activity set in the DJ during 2024, 70% of our activity is going to be down in the Watkins area. We've got the Box Elder CAP that's been approved. We've got a hearing coming up here midyear on the Lowry CAP, and that's really a 2025 plus development program. We've recently filed our (inaudible) CAP which is more of a program that is a long-term development. We expect that CAP to be approved towards the end of this year, beginning of next year.

是的，奧利佛，我只想補充克里斯提到的幾點。我的意思是，如果你看看 2024 年 DJ 中我們的活動，我們 70% 的活動將集中在沃特金斯地區。我們已經獲得了已批准的 Box Elder CAP。我們將在年中就 Lowry CAP 舉行聽證會，這實際上是一個 2025 年以後的開發計劃。我們最近提交了（聽不清楚）CAP，這更像是一個長期發展的計劃。我們預計 CAP 將在今年年底明年初獲得批准。

That's helpful color. And just for a follow-up question. I was hoping that you could provide us a reminder with how cash taxes might look for that 2025-plus time frame, if there's some sort of rule of thumb?

這是有用的顏色。只是為了一個後續問題。我希望您能提醒我們，如果有某種經驗法則的話，2025 年以上的時間範圍內現金稅可能會如何？

Sure. Absolutely. Obviously, for this year, we guided to 0 to 50. That's a $75 oil. A lot of that has been -- a lot of that is related to the Vencer transaction closing this year and giving us a slightly favorable tax treatment for this year. For 2025 and beyond, I would say, once we get out of 2024, what the favorable tax return with the acquisition, as long as -- along with bonus depreciation having down over time, you'll probably see something higher probably in the range of $150 million a year, and that's at $75 oil. And I will say, as a reminder, on the AMT front, we -- at $75 oil flat, we're not expected to hit that really in the foreseeable future, but going forward, I would say 150, 175 cash tax per year is probably a pretty good ballpark.

當然。絕對地。顯然，今年我們的指導價為 0 至 50。即 75 美元的石油。其中許多與今年完成的 Vencer 交易有關，並為我們今年帶來了稍微優惠的稅收待遇。對於2025 年及以後，我想說，一旦我們過了2024 年，收購帶來的有利稅收回報是多少，只要——隨著紅利折舊隨著時間的推移而下降，你可能會在這個範圍內看到更高的東西每年 1.5 億美元，石油價格為 75 美元。我想說的是，作為提醒，在AMT 方面，我們——在75 美元的石油水平上，我們預計在可預見的未來不會真正達到這個水平，但展望未來，我想說每年150 至175 美元的現金稅可能是一個相當不錯的球場。

We'll go next to Phillips Johnston at Capital One.

我們將前往第一資本的菲利普斯約翰斯頓 (Phillips Johnston)。

Just thinking directionally about first quarter volumes in the Permian. Obviously, you guys don't give guidance, but presumably the December exit rate of 120 day that was pretty flush. I guess if we ignore the effects of Vencer deal, would you expect your first quarter Permian volumes to be directionally down versus that exit rate? Or do you think you can sort of maintain that level?

只是定向思考二疊紀第一季的產量。顯然，你們沒有提供指導，但想必 12 月 120 天的退出率相當高。我想如果我們忽略 Vencer 交易的影響，您是否預期第一季二疊紀產量將相對於退出率定向下降？或者你認為你可以維持這個水準嗎？

So if you look at our full year guide of right at about 170,000 BOE per day, we anticipate a little bit of downtime, obviously, for weather in the first quarter. What we saw for Permian specifically, however, it was above our expectations for the quarter. We think as we go Q1 through to the end of the year, we'll see some increase, fairly modest, and that's based on the assets outperforming, coming off that strong exit into January and now February.

因此，如果您查看我們的全年指南，即每天約 170,000 桶油當量，我們預計第一季的天氣顯然會出現一些停機時間。然而，我們對二疊紀盆地的具體觀察超出了我們對本季的預期。我們認為，從第一季到年底，我們將看到一些成長，相當溫和，這是基於資產表現出色，從一月和現在的二月強勁退出。

Okay. Sounds good. And then wondering if you can share the next 12-month PDP decline rate that Ryder Scott assumed in your '23 reserve report? And would you expect that decline rate to move materially lower between now and the end of this year? .

好的。聽起來不錯。然後想知道您是否可以分享 Ryder Scott 在您的 23 年準備金報告中假設的未來 12 個月 PDP 下降率？您預計從現在到今年年底，下降率會大幅下降嗎？ 。

Yes, absolutely. So for year-end, it's probably low to mid-30s on a BOE basis, call it, 33%, 34% going forward. And it's going to depend on shape and cadence of activity, right, like if you -- we have a lot of completions and bring online later in the year, we're (inaudible) the year, but other than that cadence throughout the year, I don't expect a material change in that decline on a go-forward basis for a level-loaded normalized activity plan.

是的，一點沒錯。因此，到年底，以英國央行計算，可能會低至 30 左右，未來將是 33%、34%。這將取決於活動的形式和節奏，對吧，就像你一樣——我們有很多工作已完成，並在今年晚些時候上線，我們（聽不清楚）是這一年，但除了全年的節奏之外，我預計在水平負載的標準化活動計劃的基礎上，這種下降不會發生重大變化。

We'll move next to Kevin MacCurdy at Pickering Energy Partners.

我們將接替 Pickering Energy Partners 的 Kevin MacCurdy。

Congratulations on the well-received capital number. In regards to that $150 million reduction compared to your prior number, can you help us break down that number a little bit more on the savings from well cost reduction, faster cycle times and lower well costs -- sorry, lower well count? And how much of that savings is coming from the DJ versus the Permian compared to the prior plan?

恭喜資本號好評如潮。與您之前的數字相比，減少了 1.5 億美元，您能否幫助我們進一步細分一下這個數字，包括油井成本降低、週期時間縮短和油井成本降低（抱歉，油井數量減少）帶來的節省？與先前的計劃相比，DJ 與二疊紀的節省有多少？

Sure. I'll kick this off here. Three primary drivers to the $150 million. The first is the early wins in terms of cycle times that we've seen across our business. That's making for a much more efficient capital program in 2024. The second is the enhanced well productivity that we saw in the DJ, that's making for a much more capital-efficient program in 2024. And the combination of those 2 has allowed us to tweak and to pull out a little bit of activity and yet deliver the same amount of production for less capital. The split between those 3 is probably fairly even, I'd say. I think there's likely more upside on the cycle time enhancements. We've not baked in anything into the Delaware or into the Vencer assets. Now let us get our hands squarely on the wheel with those assets, and we'll see how it progress through the year.

當然。我就在這裡開始吧。 1.5 億美元的三個主要驅動因素。首先是我們在整個業務中看到的在周期時間方面的早期勝利。這使得 2024 年的資本計劃更加高效。第二個是我們在 DJ 中看到的油井生產力的提高，這使得 2024 年的資本效率更加高效。這兩者的結合使我們能夠進行調整併減少一點活動，但以更少的資本提供相同數量的生產。我想說，這三者之間的差距可能相當均勻。我認為週期時間的增強可能有更多的好處。我們沒有在特拉華州或文瑟資產中融入任何東西。現在讓我們直接掌控這些資產，我們將看看它在這一年中的進展如何。

And I think the other thing that Hodge touched on is we'll look for ways to accelerate TILs, and it will cause a little bit of lumpiness. That's why you see us 60% of our capital in the first half of the year because we think we can bring wells on a lot faster, and that's going to be a better return for our shareholders. But it will create a little bit of lumpiness. I'd say of the $150 million, the split between the Permian and the DJ is likely heavier weighted to the DJ, just because it's a known commodity. And I'd like to be here next quarter or a couple of quarters from now saying, hey, we're uncovering additional ways to optimize the Permian. We just haven't rolled that into the '24 plan yet.

我認為 Hodge 提到的另一件事是我們將尋找加速 TIL 的方法，這會導致一點塊狀。這就是為什麼我們今年上半年投入了 60% 的資本，因為我們認為我們可以更快地開井，這將為我們的股東帶來更好的回報。但它會產生一點塊狀。我想說，在 1.5 億美元中，二疊紀和 DJ 之間的分配可能對 DJ 的權重更大，因為它是已知的商品。我想在下個季度或幾個季度後在這裡說，嘿，我們正在發現優化二疊紀的其他方法。我們只是還沒有將其納入「24 小時計畫」。

And turning to the DJ, you've laid out your plan for most of your DJ capital to be spent on the southern acreage this year. That looks like your highest return area. Do you expect that area to continue to receive the majority of the DJ capital in the coming years? And can you talk about how permitting fits into that decision?

轉向 DJ，您已經制定了今年將大部分 DJ 資金用於南部地區的計劃。這看起來是你回報率最高的區域。您預計未來幾年該地區將繼續獲得大部分 DJ 資金嗎？您能談談許可如何適應該決定嗎？

Sure. And the short answer is yes. Those are some of our best returns in the DJ. I think it's also setting up because of the permitting situation, the Box Elder CAP approved, the Lowry CAP set to get approved this year, the (inaudible) CAP maybe late this year, early next, that you then have really strong confidence in being able to allocate capital in that area. I would say that we're going to be -- as we allocate capital between the DJ and the Permian this stuff is going to compete. And I'd say we're 70% this year, probably 75% next year of our capital going into the Watkins area. So we're excited about it. It is a fantastic area, and we've got line of sight, clear line of sight on the permitting with the CAPs working through the system. And so yes, you'll see us really pull capital into this area over the next few years.

當然。簡短的回答是肯定的。這些是我們 DJ 中最好的回報。我認為它的建立也是因為許可情況，Box Elder CAP 已獲得批准，Lowry CAP 將於今年獲得批准，（聽不清）CAP 可能會在今年年底、明年年初，那麼您就有非常強烈的信心成為能夠在該領域配置資本。我想說的是，當我們在 DJ 和 Permian 之間分配資本時，這些東西將會相互競爭。我想說，今年我們 70% 的資本，明年可能 75% 的資本都會流向沃特金斯地區。所以我們對此感到興奮。這是一個非常棒的區域，我們在透過系統工作的 CAP 獲得許可方面擁有清晰的視線。所以，是的，你會看到我們在接下來的幾年裡真正將資金投入這個領域。

Yes. I'd add, if you take a look at what the remaining inventory in that Watkins area looks like, it's over 300 wells, and about 80% of those are going to be covered by the CAPs that Chris is referencing.

是的。我想補充一點，如果你看一下沃特金斯地區的剩餘庫存情況，你會發現它有 300 多口井，其中大約 80% 將被克里斯引用的 CAP 覆蓋。

And that does conclude our question-and-answer session. I would like to turn the conference back over to Brad Whitmarsh for closing remarks.

我們的問答環節到此結束。我想將會議轉回布拉德惠特馬什 (Brad Whitmarsh) 致閉幕詞。

Yes. Thanks, Audra, and certainly appreciate all the interest in Civitas today. We look forward to connecting with many of you in the following weeks as we're going to hit the road for roadshows and conferences upcoming. I hope you have a great rest of your day. Please be safe. Thanks again for joining us.

是的。謝謝奧德拉，當然也謝謝大家今天對西維塔斯的興趣。我們期待在接下來的幾週內與你們中的許多人聯繫，因為我們即將開始巡迴演出和會議。我希望您今天休息愉快。請注意安全。再次感謝您加入我們。

That does conclude today's conference call. Again, thank you for your participation. You may now disconnect.

今天的電話會議到此結束。再次感謝您的參與。您現在可以斷開連線。