Civitas Resources Inc (CIVI) 2024 Q2 法說會逐字稿

Good day, and thank you for standing by. Welcome to Civitas Resources' second quarter 2024 earnings conference call and webcast. (Operator Instructions). Please be advised that today's conference is being recorded. I would now like to hand the call over to Brad Whitmarsh, Head of Investor Relations. Please go ahead.

美好的一天，感謝您的支持。歡迎參加 Civitas Resources 2024 年第二季財報電話會議和網路廣播。（操作員說明）。請注意，今天的會議正在錄製中。我現在想將電話轉給投資人關係主管布拉德‧惠特馬什 (Brad Whitmarsh)。請繼續。

Thanks, Jessica. Good morning, everyone, and appreciate you joining us this morning. Yesterday, we issued our second quarter earnings release, our 10-Q and also provided some supplemental materials for your review. These items are all available on our website, and they may be helpful for this morning's call. I'm joined today by our CEO, Chris Doyle; CFO, Marianella Foschi; and COO, Hodge Walker.

謝謝，傑西卡。大家早安，感謝您今天早上加入我們。昨天，我們發布了第二季財報、10-Q 報告，並提供了一些補充資料供您審查。這些項目都可以在我們的網站上找到，它們可能對今天早上的電話會議有所幫助。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。

After our brief prepared remarks, we will conduct a question-and-answer session. As always, please limit your time to one question and one follow-up so we can work through the list efficiently. We'll make certain forward-looking statements today, which are subject to risks and uncertainties that could cause actual results to differ from projections.

在我們準備好的簡短發言之後，我們將進行問答環節。像往常一樣，請將您的時間限制在一個問題和一個後續行動上，以便我們能夠有效地處理該清單。今天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預測不同。

Please read our full disclosures regarding these statements in our most recent SEC filings. We also may refer to some certain non-GAAP financial metrics. Reconciliations to these can also be found in yesterday's release and SEC filings as well. Now with that, I'll turn the call over to Chris.

請閱讀我們在最近向 SEC 提交的文件中關於這些聲明的完整披露。我們也可能參考某些特定的非公認會計準則財務指標。這些內容的調節也可以在昨天的發布和美國證券交易委員會的文件中找到。現在，我將把電話轉給克里斯。

Good morning, everyone, and welcome to our second quarter call. Before I address our quarterly results and our improved outlook, I think it's important to reflect on how we fundamentally transformed our business over the past year. This starts with our entry into the Permian Basin, which increased and enhanced our portfolio of scale and quality, provided important capital allocation flexibility and created a more durable and sustainable business.

大家早上好，歡迎來到我們的第二季電話會議。在討論我們的季度業績和改善的前景之前，我認為有必要反思一下我們在過去一年中如何從根本上改變了我們的業務。這始於我們進入二疊紀盆地，這增加並增強了我們投資組合的規模和質量，提供了重要的資本配置靈活性，並創造了更持久和可持續的業務。

Today, our Permian assets are fully integrated within Civitas and producing more than 185,000 Boe per day. Importantly, production is ahead of plan, oil is ahead of plan, well costs are below expectations and reduced operating costs or enhancing cash margins, all while maintaining top quartile safety environmental performance.

如今，我們的二疊紀資產已完全整合到 Civitas 內，每天生產超過 185,000 桶油當量。重要的是，生產提前於計劃，石油提前於計劃，油井成本低於預期，營運成本降低或現金利潤率提高，同時保持最高四分之一的安全環境績效。

In a short amount of time, our team has executed faster and better than we planned and certainly well ahead of our underwriting assumptions. At the same time, we continue to deliver exceptional results in the DJ Basin. Recent highlights including completing our noncore asset sales at an accretive valuation, helping to secure a broad-based regulatory agreement that increases development clarity for years to come and driving exceptional performance from our inventory-rich walk-ins area.

在很短的時間內，我們的團隊比我們計劃的執行得更快、更好，而且肯定遠遠超出了我們的核保假設。同時，我們繼續在 DJ 盆地取得卓越的成果。最近的亮點包括以增值的估值完成我們的非核心資產銷售，幫助達成廣泛基礎的監管協議，提高未來幾年的開發清晰度，並推動我們庫存豐富的步入式區域取得卓越的業績。

Simply put, there's no question that Civitas is stronger today, and we're better positioned than ever to drive differentiated returns for our shareholders. And moving to our second quarter results, starting with production. Total volumes were above plan as the Permian Production was up about 12%. Oil was up 5%. This is driven by strong well performance and continued cycle time acceleration, more than offsetting the impact from noncore asset sales and some temporary third-party facility downtime that occurred in the DJ.

簡而言之，毫無疑問，Civitas 如今更加強大，我們比以往任何時候都更有能力為股東帶來差異化回報。接下來是我們第二季的業績，從生產開始。總產量高於計劃，二疊紀產量增加了約 12%。石油上漲5%。這是由強勁的油井表現和持續的周期時間加速推動的，足以抵消非核心資產銷售和 DJ 中發生的一些臨時第三方設施停機的影響。

Cash operating expenses were 2.5% lower than the first quarter and less than $9 a Boe. Our teams remain laser-focused on driving down our cost structure across all basins. On the capital side, our drilling and completions teams have done a fantastic job delivering efficiency improvements to result in less CapEx than planned in the quarter. Well cost reductions are outpacing our initial plan, highlighted by a 10% reduction year-to-date in the Midland Basin.

現金營運支出比第一季下降 2.5%，每桶當量不到 9 美元。我們的團隊仍然專注於降低所有流域的成本結構。在資本方面，我們的鑽井和完井團隊在提高效率方面做得非常出色，從而使本季的資本支出低於計劃。油井成本削減速度超過了我們最初的計劃，今年迄今為止，米德蘭盆地的油井成本削減了 10%。

Free cash flow was right in line with our expectation for the quarter as our operating capital cost efficiencies offset the impact of weak natural gas pricing in the Permian. For the quarter, we returned just under $275 million to our shareholders, about $150 million of that in dividends, $125 million in share buybacks. A portion of our buybacks during the quarter was utilized to continue reducing concentrated ownership and the remainder went to open market purchases.

自由現金流符合我們對本季的預期，因為我們的營運資本成本效率抵銷了二疊紀天然氣定價疲軟的影響。本季度，我們向股東返還了近 2.75 億美元，其中約 1.5 億美元用於股息，1.25 億美元用於股票回購。本季我們回購的一部分用於繼續減少集中所有權，其餘部分用於公開市場購買。

So lots of progress has been made over the past year as evidenced by another strong quarter. I'd like to shift now, however, to three areas to have me really excited about what's to come.

因此，過去一年取得了許多進展，另一個強勁的季度就證明了這一點。然而，我現在想轉向三個領域，讓我對即將發生的事情感到非常興奮。

First, operational execution is absolutely improving the business every single day. Second, our second half outlook reflects the strength of our asset base and our team's capabilities. And third, our enhanced capital return framework will provide additional flexibility to maximize shareholder value.

首先，營運執行絕對每天都在改善業務。其次，我們下半年的展望反映了我們資產基礎的實力和團隊的能力。第三，我們增強的資本回報架構將提供額外的靈活性，以最大限度地提高股東價值。

Starting with operational execution in our supplemental materials, we highlight the impact of reduced costs on improving returns and driving down breakevens. A 10% well cost reduction in the Midland Basin drives well returns up 12% and reduces breakevens by 7%. Across the Permian, these achievements are increasing the number of low breakeven locations by 20% to 30% and extending high-quality inventory life.

從補充資料中的營運執行開始，我們強調了降低成本對提高回報和降低損益平衡的影響。米德蘭盆地的油井成本降低 10%，油井回報率提高 12%，損益平衡點降低 7%。在整個二疊紀盆地，這些成就使低損益平衡地點的數量增加了 20% 至 30%，並延長了優質庫存壽命。

Savings are coming from all areas whether it's optimizing drilling, completion designs, high-grading our service providers and utilizing more efficient equipment, standardizing facilities or capturing the benefits of having scale positions in multiple basins. This team is rapidly establishing a strong track record of execution and performance.

節省來自各個領域，無論是優化鑽井、完井設計、對我們的服務提供者進行高評級、利用更有效率的設備、標準化設施或取得在多個盆地擁有規模地位的好處。該團隊正在迅速建立良好的執行和績效記錄。

Now if we've said a year ago that within six months of establishing Permian operatorship that we would be where we are today, I'm not sure that many on this call would have believed it. It's still early days to get it with the combination of a culture of continuous improvement and the team focused on the value we can create together has been super excited for the years ahead.

現在，如果我們一年前就說過，在建立二疊紀營運權後的六個月內，我們將達到今天的水平，我不確定這次電話會議上的許多人會相信這一點。現在還處於早期階段，結合持續改善的文化和專注於我們可以共同創造的價值的團隊對未來幾年感到非常興奮。

Now, leveraging that strong operational execution, our outlook for the remainder of 2024 continues to improve. Full year CapEx lowered by $50 million. Operating costs decreased by approximately $25 million. We have raised sales volumes expectations 3% from our original guidance adjusting for asset sales.

現在，憑藉強大的營運執行力，我們對 2024 年剩餘時間的展望持續改善。全年資本支出減少 5000 萬美元。營運成本減少了約 2500 萬美元。我們將資產銷售調整後的銷售量預期較最初的指引上調了 3%。

Looking forward, we expect total volumes and oil to grow quarter-over-quarter through the end of the year. Recent extreme summer weather in Colorado certainly with record high temperatures will defer some of that third quarter DJ Basin growth into the fourth. But a strong second half in the DJ will be driven by walk-ins. We recently drilled and completed our 13 4-mile wells, the longest laterals ever in Colorado.

展望未來，我們預計到年底總產量和石油量將較上季成長。科羅拉多州最近的極端夏季天氣無疑會導致創紀錄的高溫，這將使 DJ 盆地第三季的部分成長推遲到第四季度。但下半場 DJ 的強勁表​​現將由上場嘉賓推動。我們最近鑽探並完成了 13 口 4 英里的井，這是科羅拉多州有史以來最長的支管井。

It's a testament to a talented team that continues to safely push the boundaries of what's possible. Importantly, while still early, we're encouraged by the initial productivity, which confirms production contribution across the full laterally. In the Permian, I'm particularly excited to see us coming production from our first fully designed, drilled and completed Civitas wells. Productivity to date trends in line with our expectations.

這證明了一支才華橫溢的團隊不斷安全地突破可能的界限。重要的是，雖然還為時過早，但我們對初始生產力感到鼓舞，這證實了整個橫向的生產貢獻。在二疊紀，我特別高興地看到我們第一口完全設計、鑽探和完工的 Civitas 井開始生產。迄今為止的生產力趨勢符合我們的預期。

The second half 2024 TILs will target core zone development and slightly wider lateral spacing than previous operators. The strength of our business and continued execution, we anticipate second half free cash flows of over $900 million, which will be deployed to the balance sheet and to our shareholders.

2024 年下半年 TIL 的目標是核心區開發和比之前營運商稍寬的橫向間距。憑藉我們業務的實力和持續的執行力，我們預計下半年自由現金流將超過 9 億美元，這些現金流將分配到資產負債表和我們的股東手中。

Finally, the true reflection of the strength of our business is our best-in-class shareholder return. Since the beginning of last year, we've returned nearly $1.5 billion to our shareholders via dividends and share repurchases. This represents more than 20% of our current market cap. We remain fully committed to returning 50% of our free cash flow to shareholders after the base dividend.

最後，我們業務實力的真實反映是我們一流的股東回報。自去年年初以來，我們已透過股利和股票回購向股東返還近 15 億美元。這占我們目前市值的 20% 以上。我們仍然完全致力於在基本股利後將 50% 的自由現金流返還給股東。

Based on second quarter results, our Board approved $1.52 dividend to be paid in September. In addition, the Board enhanced our capital return program to add flexibility in the way we return the variable component shareholders. Beginning with the third quarter, the variable return will now be provided through a combination of share repurchases and dividends.

根據第二季的業績，我們的董事會批准在 9 月支付 1.52 美元的股息。此外，董事會還加強了我們的資本回報計劃，以增加我們回報可變成分股東的方式的靈活性。從第三季開始，可變回報將透過股票回購和股息相結合的方式提供。

As part of this enhancement, the Board also approved a new $500 million share repurchase plan, which replaces the prior program. We will remain disciplined in executing our buyback strategy, but we trade at a very compelling valuation when compared to our peers and when compared to recent asset transactions. At Civitas, we believe that cyclical businesses should be run with low leverage.

作為此次增強措施的一部分，董事會還批准了一項新的 5 億美元股票回購計劃，該計劃取代了先前的計劃。我們將繼續嚴格執行回購策略，但與同業相比以及與最近的資產交易相比，我們的交易估值非常有吸引力。在 Civitas，我們認為週期性業務應該以低槓桿運作。

So we'll continue to execute on our hedging strategy to support the pace of our delevering efforts, and this capital return enhancement will prioritize our balance sheet with the remaining 50% of our free cash flow. Wrapping up, we've made tremendous progress in the first half of the year. Our entire team is excited to demonstrate what our transformed company is capable of delivering.

因此，我們將繼續執行對沖策略，以支持我們去槓桿化努力的步伐，而這種資本回報率的提高將優先考慮我們的資產負債表和剩餘 50% 的自由現金流。總而言之，我們在今年上半年取得了巨大進展。我們整個團隊很高興能夠展示我們轉型後的公司所能提供的服務。

Thank you for your interest in Civitas. Operator, we're now happy to take questions.

感謝您對西維塔斯的興趣。接線員，我們現在很樂意回答問題。

(Operator Instructions) Kevin MacCurdy, Pickering Energy Partners.

（操作說明）Kevin MacCurdy，Pickering Energy Partners。

I wanted to start off by asking about the execution of the newly increased buyback. When deciding the amount of free cash flow to allocate the buybacks versus the variable, what would be the main criteria? Are you looking at recent share price dislocation, NAV or maybe the low multiple that you highlight in your deck?

我想先詢問新增回購的執行情況。在決定分配回購與變數的自由現金流量時，主要標準為何？您是否正在關注最近的股價錯位、資產淨值或您在套牌中強調的低本益比？

Yes, sure. Thanks for the question, Kevin. As we've said in the past, we view our capital return framework much like any other capital allocation decision, and this is something we discuss regularly with our Board, like the move to add that flexibility is really tied to exactly what you talked about, and that is a continued disconnect with how we are valued.

是的，當然。謝謝你的提問，凱文。正如我們過去所說，我們認為我們的資本回報框架與任何其他資本分配決策非常相似，這是我們定期與董事會討論的內容，例如增加靈活性的舉措確實與您所談論的內容緊密相關，這與我們的價值觀持續脫節。

Look at underlying NAV, look at NAV at various commodity prices, look at how we trade versus peers and look at the asset market. This is not the asset market that we entered the Permian in. A year after our entry, the asset market is up a full 1.5-plus turns. And in some cases, that's for lower-quality assets. So the valuation, as we see it today, does not reflect the quality of these assets and does not reflect the quality of the team and how they are executing.

看看基礎資產淨值，看看各種商品價格的資產淨值，看看我們如何與同業進行交易，看看資產市場。這不是我們進入二疊紀的資產市場。我們進入一年後，資產市場足足上漲了 1.5 倍以上。在某些情況下，這是針對較低品質的資產。因此，正如我們今天所看到的，估值並不能反映這些資產的質量，也不能反映團隊的質量及其執行方式。

And ultimately, I don't think it reflects the tailwinds that we've seen in terms of regulatory in the DJ. So you've got a business here that's executing on really high-quality assets trading at a 20% free cash flow yield. That's a super compelling opportunity as we see it. That's driving the change, and we're excited to dig in and allocate to this business. We're super excited, super proud of what we've built. It hasn't been reflected yet, but it will be.

最終，我不認為這反映了我們在 DJ 監管方面看到的順風車。因此，您在這裡擁有一家以 20% 的自由現金流收益率進行真正高品質資產交易的企業。我們認為這是一個非常有吸引力的機會。這正在推動變革，我們很高興能夠深入研究並分配給這項業務。我們對我們所建造的東西感到非常興奮和自豪。目前還沒有反映出來，但一定會的。

And I appreciate the question and the other thing to highlight on the shareholder return framework is we can protect our equity, but at the same time, not lose sight of our delevering targets and maintaining a strong balance sheet. So we're super excited for the adjustment, and we think it fully enhances framework and know that this team is fully aligned with shareholders as we go through that calculus.

我很欣賞這個問題，關於股東回報框架要強調的另一件事是，我們可以保護我們的股權，但同時，不要忽視我們的去槓桿化目標和維持強勁的資產負債表。因此，我們對這項調整感到非常興奮，我們認為它完全增強了框架，並且知道在我們進行計算時，團隊與股東完全一致。

Great. And I think that's what the market wants to hear. Shifting maybe well costs. When I look at Slide 10 in your investor deck, what do you need to do to cut the extra 5% out of well cost in the Midland, and just to clarify, this new CapEx run rate factor in the $765 per foot in the Midland Basin? Or is it using the $725.

偉大的。我認為這就是市場想要聽到的。轉移可能會付出很大的代價。當我查看您的投資者幻燈片中的幻燈片10 時，您需要做什麼才能將米德蘭的油井成本削減額外5%，並澄清一下，這一新的資本支出運行率因素是米德蘭每英尺765 美元盆地？或是使用 725 美元。

Yes. Yes. Good question, Kevin. So our current forecast for second half capital assumes our current cost structure of the $765 in Midland. As we look back, again, we took over 4 established operators in the basin. There are a lot of questions around can we continue that level of performance. And we knew fundamentally that we would improve upon, but we'd like to stack some skins on the wall, and I think that's what this team has done for a couple of quarters just as we've done in the DJ.

是的。是的。好問題，凱文。因此，我們目前對下半年資本的預測假設米德蘭目前的成本結構為 765 美元。回顧過去，我們再次接管了該盆地的 4 家老牌營運商。關於我們能否繼續保持這樣的表現水準存在著許多問題。我們從根本上知道我們會改進，但我們想在牆上堆放一些皮膚，我認為這就是這個團隊在幾個季度中所做的事情，就像我們在 DJ 中所做的那樣。

What has got us to where we are today really is a mix of benefits of scale driving down service costs. That's probably about 30% of that delta. Design changes to how we complete wells, how we drill wells, that's probably 20%. And the other half is really just continued optimization and efficiency gains. So what will take us from $765 to $725 is just continued relentless digging in and driving additional efficiency gains. We're not building any additional deflation or any weakness in the service market.

我們之所以能夠達到今天的成就，實際上是規模效益的綜合作用，降低了服務成本。這可能是該增量的 30% 左右。設計改變我們如何完井、如何鑽井，這可能是 20%。另一半實際上只是持續優化和效率提升。因此，我們只需繼續不懈地挖掘並推動額外的效率提升，就能將我們從 765 美元提高到 725 美元。我們不會造成任何額外的通貨緊縮或服務市場的任何疲軟。

This is about the team stepping back, looking for ways to claw back every dollar and every inch. And look, again, very early, two quarters in. But this is a team that has made a living of doing exactly this in the DJ, and we're doing it there in the Permian as well.

這是關於團隊後退一步，尋找收回每一塊錢、每一寸的方法。再看一次，很早，兩個季度後。但這是一支以 DJ 工作為生的團隊，我們也在二疊紀地區這樣做。

Neal Dingmann, Truist Securities.

尼爾‧丁曼 (Neal Dingmann)，Truist 證券公司。

My first question is really just on your anticipated oil production growth. Specially, it seems that given your noncore sales and oil production reiteration, you're suggesting that production should continue to trend higher. I'm just wondering, could you speak to the potential growth in both plays and maybe factors impacted this for the remainder of the year?

我的第一個問題實際上只是關於您預期的石油產量成長。特別是，考慮到您重申的非核心銷售和石油產量，您似乎建議產量應繼續呈上升趨勢。我只是想知道，您能否談談這兩部劇的潛在增長以及可能影響今年剩餘時間的因素？

Sure. Thanks. Thanks, Neal. I appreciate the question. I appreciate you highlighting the divestments as well. That was, as we announced last quarter, a massive transaction for us, traded at a full turn above. These are noncore assets and the DJ trying to get a full turn above our entire enterprise. So we hit that bid. It did impact our second quarter results, right, 5,000 BOEs a day, 2,000 or 3,000 barrels of oil a day. So take that -- put that back into the mix and you saw quarter-over-quarter strong oil growth as a company.

當然。謝謝。謝謝，尼爾。我很欣賞這個問題。我也感謝您強調撤資。正如我們在上季度宣布的那樣，這對我們來說是一筆巨額交易，交易價格為上方一整圈。這些是非核心資產，DJ 試圖在我們整個企業之上獲得全面的轉變。所以我們達到了這個出價。它確實影響了我們第二季度的業績，對吧，每天 5,000 個 BOE，每天 2,000 或 3,000 桶石油。因此，將其重新考慮到這一點，您會看到一家公司的石油季度環比強勁增長。

So I would say, as we look at -- I would point to the Permian first, second quarter over first quarter, we saw oil up. We see both basins into the third quarter growing as evidenced by our reaffirmation of our oil guide, even taking out the divestments. So we'll see a step-up in both basins. We have a front half loaded capital program. About two-third of our TILs are coming on in the second and third quarter, and that's going to really support and drive oil growth to the back half of the year.

所以我想說，正如我們所看到的——我會指出二疊紀第一季、第二季度相對於第一季度，我們看到石油價格上漲。我們預計這兩個盆地到第三季都會成長，我們重申了我們的石油指南，甚至取消了撤資，就證明了這一點。因此，我們將看到兩個盆地的產量都有增加。我們有一個前半負載的資本計劃。我們大約三分之二的 TIL 將在第二季和第三季實施，這將真正支持並推動今年下半年的石油成長。

A couple of things that we'll talk about in the DJ are some headwinds. We saw them in the second quarter with some third-party facility downtime. We're past that. That was temporary. June is the -- I think June (inaudible) is the second highest hottest June in the history of Colorado. I don't know where July is going to come out, but it's going to be up there. And so certainly, that's impacting some of our operations out there, but that's temporary.

我們將在 DJ 中討論一些逆風。我們在第二季度看到了一些第三方設施的停機。我們已經過去了。那是暫時的。六月是——我認為六月（聽不清楚）是科羅拉多州歷史上第二熱的六月。我不知道七月會在哪裡出現，但它會在那裡。當然，這會影響我們的一些業務，但這只是暫時的。

The other thing that's going to drive growth into the second half that we're really excited about is the continued outperformance of the Watkins wells. (inaudible) four milers, every well that we're drilling down there is really performing exceptionally well against expectations.

另一件令我們真正興奮的下半年推動成長的事情是沃特金斯油井的持續出色表現。 （聽不清楚）四英里，我們在那裡鑽探的每一口井都表現得非常好，超出了預期。

So both teams are hitting on expectations. We see some real good tailwinds as we head into the second quarter. And again, evidenced by a reaffirmation of our oil guide. So we are very confident and pleased with how we've set up for the second half.

所以兩支球隊都達到預期了。當我們進入第二季度時，我們看到了一些真正好的順風車。再次確認我們的石油指南就證明了這一點。因此，我們對下半年的準備工作非常有信心和滿意。

Great answer, Chris. And then secondly, just wanted to question on the OFS cost. You all seem to be indicating maybe a little bit of pressure there and like some others that are seeing things flatter. I'm just wondering, Chris, is that -- maybe I want to make sure I understand that right. Were you saying that some of the costs were lower or maybe you're just seen reduction based on these efficiencies.

很好的答案，克里斯。其次，我想問 OFS 的費用。你們似乎都表明那裡可能有一點壓力，並且像其他一些人一樣認為事情比較平坦。我只是想知道，克里斯，也許我想確保我理解正確。您是說某些成本降低了，還是您只是看到基於這些效率的降低。

Yes. So when we entered the year in the Permian, we were running nine rigs. So we rationalized the rig fleet. We rationalized the frac fleet. What that allowed us to do was upgrade crew, upgrade iron. That drove efficiency. It also allowed us to capture some of the weakness that we've seen beyond just consumables, but some of the OFS weakness that we've seen.

是的。因此，當我們進入二疊紀的這一年時，我們正在運行九台鑽孔機。因此我們對鑽機隊進行了合理化調整。我們對壓裂船隊進行了合理化改造。這讓我們能夠做的是升級船員、升級鐵桿。這提高了效率。它還使我們能夠捕捉到我們所看到的消耗品之外的一些弱點，以及我們所看到的 OFS 的一些弱點。

When you look at our top tier rig a year ago, probably turning fairly close to four, and it's now in the mid- to high 20s. And so there's certainly been some weakness in that market. I would caution, however. I've seen companies that will only focus.

如果你看看我們一年前的頂級裝備，可能會相當接近四台，而現在則處於 20 多台中上水平。因此，該市場肯定存在一些弱點。不過，我要警告一下。我見過只專注的公司。

In fact, some of the product operators focus on the day rate and lose sight of what -- how higher tier rig and much more efficient -- higher tier crew, what they can deliver. And so we are seeing a little bit of softness, and that's good, but we're not planning on that. This is a team that's going to continue to drive efficiencies and claw for every inch. if OFS continues to weaken a little bit, you'll see us peel some more capital out or redeploy that capital.

事實上，一些產品業者專注於日費率，而忽略了更高級別的鑽孔機和更高級別的工作人員，他們可以提供什麼。所以我們看到了一點疲軟，這很好，但我們不打算這樣做。這支團隊將持續提高效率，精益求精。如果 OFS 繼續略微疲軟，您將看到我們剝離更多資本或重新部署該資本。

Scott Hanold, RBC.

斯科特·漢諾德，加拿大皇家銀行。

My first question is on the Permian Basin, those first designed and drilled Civitas wells. You talked a little bit about obviously modifying the spacing and zone targeting to get better performance. So two questions on that. Number 1 is, what kind of improvement do you think this can make in the performance of the wells? Are we talking like just give us some scale like a 5%, 10% or like what is the size that you're expecting? And just out of curiosity, is that uplift factored into your budget and your outlook?

我的第一個問題是關於二疊紀盆地，也就是最早設計和鑽探的 Civitas 井。您談到了明顯修改間距和區域目標以獲得更好的性能。所以有兩個問題。第一個問題是，您認為這可以對油井的性能帶來什麼樣的改進？我們是否只是給我們一些比例，例如 5%、10% 或您期望的尺寸？出於好奇，這種提升是否已納入您的預算和前景中？

Yes, great question. Yes, as I said, and you pointed to, super excited to get to the City design wells online, yes. The -- as an example, there was a previous operator that we think we feel like overdrilled one of the pads. They're performing as expected, but we know that it wasn't the best cash-on-cash return development design. And so we take a little bit of a different approach. I think a lot of operators do too or you look at that incremental well and what that does to overall returns.

是的，很好的問題。是的，正如我所說，你也指出，能夠在線訪問城市設計井非常興奮，是的。舉個例子，我們認為之前有一位操作員對其中一個焊盤進行了過度鑽孔。他們的表現符合預期，但我們知道這不是最好的現金回報開發設計。因此我們採取了一些不同的方法。我認為很多運營商也這樣做，或者你看看增量以及它對整體回報的影響。

And so we're super, super focused on cash-on-cash returns. I would tell you that the uplift there is not insignificant. We've built in what we believe are conservative but attainable results going forward. And this is a team, again, that's even with prior operators have fully hit our expectations. But you'll see a bit of a step up. Now rock changes east-west, north-south. We get all of that and well mix will change. But we're super excited about what this team can do when we have fully our hands on the wheel.

因此，我們非常非常關注現金回報。我可以告訴你，那裡的提升並非微不足道。我們已經建立了我們認為保守但未來可實現的結果。再說一遍，即使是之前的操作員，這支團隊也完全達到了我們的預期。但你會看到一點進步。現在岩石發生了東西向、南北向的變化。我們得到了所有這些，並且混合將會改變。但當我們完全掌控方向盤時，我們對這支團隊可以做的事情感到非常興奮。

Understood. And switching to the asset market. Obviously, you guys have been very involved over the last few years. Can you give us a sense of what your -- there's a lot of transactions that continues to go through the Permian and -- you give us a sense of how you think about incremental activity in the Permian along with how much opportunity you have in your existing assets to swap and trade to expand your inventory?

明白了。並轉向資產市場。顯然，你們在過去幾年裡一直非常積極地參與其中。你能否讓我們了解一下你的——有很多交易繼續通過二疊紀——你能讓我們了解一下你如何看待二疊紀的增量活動以及你在你的業務中擁有多少機會。交易現有資產擴大庫存？

Sure. And we pointed, I think, last quarter to really really great trade that was made in the Midland Basin that allowed us to extend laterals, drive for higher returns, really push cost down on a per foot basis. There are more opportunities like that the team continues to deliver. What's interesting is with scale positions on both sides, we've got operator overlap on both sides, we could trade out of Midland into Delaware or Delaware into Midland.

當然。我認為，我們指出上個季度在米德蘭盆地進行的非常非常好的貿易，這使我們能夠擴展支線，爭取更高的回報，真正降低每英尺的成本。團隊將繼續提供更多類似的機會。有趣的是，隨著雙方的規模定位，我們雙方都有運營商重疊，我們可以從米德蘭交易到特拉華州，或者從特拉華州交易到米德蘭。

We are seeing those opportunities as well, and we'll let value really guide us. In terms of the asset market, again, take us back to where we entered a year ago with the first two transactions and then followed closely by the third transaction.

我們也看到了這些機會，我們將讓價值真正引導我們。就資產市場而言，再次讓我們回到一年前進入的前兩筆交易，然後緊隨其後的是第三筆交易。

Any of those assets come to market today, and you're talking about a much different entry points. So timing is absolutely critical. Now in terms of are there opportunities we would pursue potentially in the asset market to think about going after. I think we would always look for ways to enhance our business.

這些資產中的任何一個今天都進入市場，並且您正在談論一個非常不同的切入點。所以時機絕對至關重要。現在就我們在資產市場上是否存在潛在的機會來考慮追逐而言。我認為我們總是會尋找增強業務的方法。

You're going to hear every CEO out there to talk about how high the bar is, I will tell you. I would say we probably have the highest bar out there with where we trade and the disconnect with the quality of what we've got versus what's there -- what's on the market.

我會告訴你，你會聽到每位執行長談論門檻有多高。我想說的是，我們的交易地點可能是最高的，而且我們所擁有的產品與市場上的產品的品質脫節。

Some of the things that we've seen trade, we've looked at. We'll continue to look at deals. But anything that we do has to compete against turning around and buying a business is trading at 3x where the market is 4.5x higher than that. So we have built a strong business. We're ahead of schedule in terms of how that business is executing and super proud and excited about the future ahead for us.

我們已經看到了一些交易的東西。我們將繼續關注交易。但我們所做的任何事情都必須與扭虧為盈並以 3 倍的價格購買一家企業進行競爭，而市場的價格比這個價格高 4.5 倍。因此，我們已經建立了強大的業務。我們在業務執行方面比計劃提前，並對我們的未來感到非常自豪和興奮。

And also underpin, like Chris was saying earlier, when we look at our buyback proposition, it's obviously an incredibly compelling opportunity. We kind of focus on more intrinsic value. When you look at our business, we have a free cash flow generating machine that over a 5-year period equates to our entire market cap, and that's just really hard to not say impossible findings in the market right now, really public or private.

正如克里斯之前所說，當我們審視我們的回購提案時，這顯然是一個令人難以置信的誘人機會。我們更關注內在價值。當你觀察我們的業務時，你會發現我們擁有一台自由現金流生成機器，在五年內相當於我們的整個市值，這很難說是目前市場上不可能的發現，無論是公共的還是私人的。

Phillips Johnston, Capital One.

菲利普斯約翰斯頓，《第一資本》。

Just a follow-up on Kevin's question on the return of capital. Is it safe to say that the Board wants to be very aggressive on the share repurchase program in the near term? And maybe just a corollary to that, with the prior framework, you've been repurchasing stock in addition to the 50% variable formula. So I guess the total cash return effectively has been greater than the 50%.

只是凱文關於資本返還問題的後續。可以肯定地說，董事會希望在短期內非常積極地實施股票回購計畫嗎？也許這只是一個推論，在先前的框架中，除了 50% 可變公式之外，您還一直在回購股票。所以我猜總現金回報率實際上已經超過了 50%。

So I'm wondering if you'll be limiting the total return to the 50% formula with the other 50% earmarked for reduction of debt? Or would you view that as more sort of a minimum 50% promise with the potential to exceed that amount when you see opportunities in the market.

所以我想知道你們是否會將總回報率限制在 50% 的公式內，而另外 50% 則專門用於減少債務？或者您是否會將其視為至少 50% 的承諾，當您看到市場上的機會時，有可能超過該金額。

Yes, I'll kick this off here. I think the Board and management will be super focused on whatever generates the highest shareholder return and strengthens our business. Now today, today specifically and today more generally, does that mean, we might more heavily allocate that return to buybacks. That's probably a fair assessment. I would say on the question of pay before, we were really limited to the other 50% of the cash flow post the base dividend, post the variable dividend component to buying back our shares.

是的，我就從這裡開始吧。我認為董事會和管理層將非常關注能夠產生最高股東回報並加強我們業務的事情。現在，今天，特別是今天，更普遍地今天，這是否意味著我們可能會更多地將回報分配給回購。這可能是個公平的評估。我想說的是，關於先前的薪酬問題，我們實際上僅限於基本股息後的另外 50% 現金流，以及用於回購我們股票的可變股息部分。

What that didn't allow us to do -- and I think the company has done a really good job of opportunistically working down some of that concentrated ownership at the top of what it didn't allow us to do was address and accelerate our delevering plan. And so that's why I think this is a really strong enhancement to the overall program where we can protect and lean in on a buyback and at the same time, not stretch our leverage and really progress towards our leverage target.

這不允許我們做——我認為該公司在機會主義地減少一些集中所有權方面做得非常好，它不允許我們做的是解決並加速我們的去槓桿化計劃。因此，這就是為什麼我認為這是對整個計劃的真正強大的增強，我們可以保護並依靠回購，同時不擴大我們的槓桿並真正朝著我們的槓桿目標邁進。

Okay. And then just on the 4-mile laterals, it sounds like so far, so good. Can you maybe talk about what's embedded in your production guidance regarding that fourth mile? Are you giving it some sort of a haircut and if so what are the specifics there?

好的。然後就在 4 英里的支線公路上，聽起來到目前為止，一切都很好。您能否談談您的生產指南中有關第四英里的內容？您是否正在對其進行某種修飾？

Yes. I'll take us back to the approach we had last year with the three milers, and that was -- we were very confident in the first two miles. The third mile we had risked. You saw that play out quarter-over-quarter towards the end of the year, where those wells actually performed in line with the two milers. And so super excited with how those three milers executed.

是的。我將帶我們回到去年三英里賽的方法，那就是——我們在前兩英里非常有信心。我們冒險走了第三英里。您會看到這種情況在年底時逐季度出現，這些井的表現實際上與兩英里一致。我對這三英里運動員的表現感到非常興奮。

Now it's replaying itself on the four milers. Very strong performance above type curve expectations, but we are risking that fourth mile still being conservative as we are. And so that's going to show up -- could show up towards the end of the year. I would tell you the type curves that we have on these four milers are quite compelling in terms of returns.

現在它又在四英里賽上重演了。表現非常強勁，高於類型曲線預期，但我們冒著第四英里仍然像我們一樣保守的風險。所以這將會出現——可能會在今年年底出現。我想告訴你，我們這四英里的類型曲線在回報方面非常引人注目。

And so any type of outperformance now all of a sudden, you've got potential game changers. We're focused on, let's watch these things produce. We're focused on upsizing infrastructure in the area to unleash these wells and we're super excited, not just from an operational execution perspective, but seeing contribution throughout the lateral. I think the team has just done a phenomenal job of efficiently executing and bringing these things online. And then the results are just -- the proof will be in the pudding, but the results are really, really exciting.

因此，現在突然出現的任何類型的優異表現，都有潛在的遊戲規則改變者。我們專注於，讓我們看看這些東西的產生。我們專注於擴大該地區的基礎設施以釋放這些油井的潛力，我們非常興奮，不僅從營運執行的角度來看，而且看到整個橫向的貢獻。我認為團隊在高效執行和將這些事情上線方面做得非常出色。然後結果就是——證據就在布丁中，但結果真的非常令人興奮。

And so, in terms of going forward, that's some tailwinds if it plays back. Remember, the fourth mile on these wells going to some of the best rock. I think interesting, we talked about the ground game in the Permian quite a bit. There's a ground game in the Rockies as well that you've got a team here that I think is a differentiated weapon within the DJ in terms of what we can execute, long reach laterals and effectively delivering oil from 4 miles away is fantastic. So super excited what the team has done and really excited to see these wells continue to perform.

因此，就未來而言，如果它重演，這將是一些順風車。請記住，這些井的第四英里將通往一些最好的岩石。我覺得很有趣，我們談了很多二疊紀的地面遊戲。在落基山脈也有一場地面比賽，我認為這裡的團隊是 DJ 中的一種差異化武器，在我們可以執行的任務方面，長距離側向輸送和從 4 英里外有效輸送石油非常棒。我們對團隊所做的事情感到非常興奮，並且非常高興看到這些油井繼續發揮作用。

Gabe Daoud, TD Cowen.

加布·達烏德，TD·考恩。

Chris, maybe any thoughts you could share right now on 2025 and just capital allocation across the two plays relative to this year's capital allocation and also capital allocation within the Permian, specifically Delaware versus Midland?

Chris，也許您現在可以分享關於2025 年的任何想法，以及相對於今年的資本分配以及二疊紀盆地內的資本分配（特別是特拉華州與米德蘭）的兩個區塊之間的資本分配？

Sure. This is coming into this year. The calculus was pretty difficult because we didn't know how the team would execute. I think as we look at it certainly is too early to guide where we're going to be in 2025, but as you look ahead, the challenge that this team is going to have is, this is real-time improvements enhancements throughout the Permian and in the DJ. The game is changing in both basins.

當然。這將進入今年。計算非常困難，因為我們不知道團隊將如何執行。我認為，就我們目前的情況來看，指導 2025 年我們的目標肯定還為時過早，但展望未來，這個團隊將面臨的挑戰是，這是整個二疊紀的實時改進和增強和DJ 中。兩個盆地的遊戲規則都在改變。

And so there are a lot of moving pieces that will drive relative capital allocation between the DJ and the Permian. Keep in mind, we also have, again, the tailwinds on the regulatory side with compromise that gives us into 2028, good clarity in developing the asset, and that's going to impact how we think about capital allocation. There's a lot moving.

因此，有許多變化因素將推動 DJ 和二疊紀之間的相對資本配置。請記住，我們也面臨著監管方面的順風和妥協，這使我們能夠在 2028 年之前清晰地開發資產，這將影響我們對資本配置的看法。有很多感動。

And then in the Permian specifically, as you think about Delaware versus Midland certainly, we're more levered to Midland, both in terms of scale and production and inventory, some of our best returns on the Delaware side. Now we have -- I think we mentioned in the past, previous operator was looking to develop some one milers and good returns, don't get me wrong. Good returns, but the team is taking the time to say, look, how do we extend these into two-mile developments and drive some additional efficiencies?

然後，特別是在二疊紀盆地，當你考慮特拉華州與米德蘭州時，我們對米德蘭的槓桿作用更大，無論是在規模、產量還是庫存方面，我們在特拉華州方面獲得了最好的回報。現在我們——我想我們過去提到過，以前的運營商希望開發一些一英里的產品並獲得良好的回報，請不要誤會我的意思。良好的回報，但團隊花時間說，看，我們如何將這些擴展到兩英里的開發並提高一些額外的效率？

And so we're working that through the system, really excited to start allocating to the Delaware. Just given the scale and everything, we're going to be more weighted to the Midland, we're super excited about that as well. I think while it's early for 2025, I'll just take us back to how are we going to run this business.

因此，我們正在透過該系統進行工作，並且非常高興開始分配給特拉華州。考慮到規模和一切，我們將更加重視米德蘭，我們對此也感到非常興奮。我認為雖然 2025 年還為時過早，但我只想帶我們回顧一下我們將如何經營這項業務。

We're going to run this business to maximize free cash flow, keep production broadly flat and generate as much free cash, get it back to shareholders, get it back to our balance sheet as we can. I think that business model is really interesting because it does a really important thing. It creates capital scarcity. And when you have capital scarcity with two super competitive teams, you have -- you start finding ways to improve that capital allocation mix.

我們將經營這項業務，以最大限度地提高自由現金流，保持生產基本平穩，並產生盡可能多的自由現金，將其返還給股東，盡我們所能將其返還到我們的資產負債表中。我認為這種商業模式非常有趣，因為它做了一件非常重要的事。它造成了資本稀缺。當你有兩個超級競爭團隊的資本稀缺時，你就會開始尋找改善資本配置組合的方法。

And so that's what we're seeing from the DJ. It's what we're seeing from the Permian. These men and women are finding more and more ways to improve returns. And so it's going to be a lot of fun as we set up for 2025, but there is a lot of noise in the system.

這就是我們從 DJ 身上看到的。這就是我們從二疊紀看到的。這些男人和女人正在尋找越來越多的方法來提高回報。因此，當我們為 2025 年做準備時，這將會很有趣，但係統中存在許多噪音。

Understood. Understood. Thanks Chris. Obviously, a bit too early still for '25, but that's helpful. And then just as a follow-up, just going back to well design and spacing in the Permian relative to the prior operator or operators. Can you maybe just remind us broad strokes, what other spacing or well construction assumptions in Midland right now? And is that like that a little bit of a wider spacing also to the prior operator? Is that embedded in your inventory number?

明白了。明白了。謝謝克里斯。顯然，對於 25 年來說還為時過早，但這很有幫助。然後作為後續行動，回到二疊紀相對於先前的一個或多個作業者的井設計和間距。您能否簡單地提醒我們一下，目前米德蘭還有哪些間距或井建設假設？對於之前的操作員來說，這是否也有點寬的間距？這是否已包含在您的庫存編號中？

Yes. Thanks for the question. This is Hodge. As Chris mentioned, earlier this year, we've had some pads come on from prior operators that we feel they probably drilled it at a higher density than we would. As we move into our designs, we're taking that into consideration. Every additional well that is contemplated within the section has to be competitive from a returns basis. We look at this on a well-by-well incremental returns basis.

是的。謝謝你的提問。這是霍奇。正如克里斯所提到的，今年早些時候，我們從之前的操作員那裡得到了一些墊片，我們認為他們的鑽孔密度可能比我們更高。當我們進行設計時，我們會考慮到這一點。在該區域內考慮的每口額外井都必須在回報基礎上具有競爭力。我們在逐項增量回報的基礎上看待這個問題。

And within the Midland Basin, within our sections, that's like four to five wells per section. But bench-to-bench those things vary. We don't have a cookie-cutter across the whole thing. We make sure that we understand as rock changes, north to south, east or west, and what benches we're operating in, we're going to make sure that we're efficient with that incremental capital on every wellbore.

在米德蘭盆地內，在我們的區域內，每個區域大約有四到五口井。但不同的替補席上這些事情是不同的。我們對整件事情沒有千篇一律的標準。我們確保我們了解岩石的變化，從北到南，從東或西，以及我們在哪些台架上作業，我們將確保我們在每個井眼上有效地利用增量資本。

Tim Rezvan, KeyBanc.

雷茲萬 (Tim Rezvan)，KeyBanc。

I want to start on the balance sheet. From your presentation, it looks like you have about $475 million left on the deferred venture payment. And in big numbers, maybe $1.5 billion of free cash flow, half of that to the balance sheet. So where I'm getting at is we see leverage kind of hanging on north of 1x here for several quarters looking forward.

我想從資產負債表開始。從您的演示來看，您的延期風險付款似乎還剩約 4.75 億美元。從數字上看，可能有 15 億美元的自由現金流，其中一半進入了資產負債表。因此，我想說的是，我們看到槓桿率在未來幾季都將維持在 1 倍以上。

So as you adjusted your cash return framework. And Chris, I was wondering if you could speak from the Board's perspective. Why is there need to return 50%? And how does kind of debt pay down factor into value creation. I'm just curious how they're thinking about that?

所以當你調整你的現金回報框架時。克里斯，我想知道你是否可以從董事會的角度發言。為什麼需要返還50%？債務償還方式如何影響價值創造。我只是好奇他們是怎麼想的？

I'll let Marianella take this.

我會讓瑪麗內拉拿走這個。

I mean, look, we remain extremely committed to our balance sheet, right? And we have one of the more conservative leverage targets out there at 0.7x -- 0.75x. As you know, we took that to finance the Permian transactions, and that was an incredibly deliberate decision we took to derisk our corporate outlook. and it was the right one. We're no question a stronger enterprise today.

我的意思是，看，我們仍然非常致力於我們的資產負債表，對吧？我們的槓桿目標之一是較保守的目標，即 0.7 倍至 0.75 倍。如您所知，我們以此來為二疊紀交易提供資金，這是我們為消除公司前景風險而做出的一個令人難以置信的深思熟慮的決定。這是正確的。毫無疑問，今天我們是一家更強大的企業。

Like I said in prior quarters, for us, it's more about taking meaningful steps and bringing meaningful progress towards delevering every single day. This is why you've seen us come out and take steps like complete our asset sales program earlier this year to accelerate that delevering process. And then further to your point, this update, we just announced to the shareholder return policy, we'll also continue supporting and underpinning our balance sheet initiatives.

就像我在前幾個季度所說的那樣，對我們來說，更重要的是每天採取有意義的步驟並在去槓桿化方面取得有意義的進展。這就是為什麼你看到我們出來採取措施，例如今年早些時候完成我們的資產出售計劃，以加速去槓桿化進程。然後進一步闡述您的觀點，在這次更新中，我們剛剛向股東宣布了回報政策，我們也將繼續支持和鞏固我們的資產負債表計畫。

No, we carefully balance those capital allocation decisions between paying down debt and then returning that cash to shareholders. Now when we look out and we see our plan, we were comfortable with the pace of deleverage or delevering efforts, and frankly, we can't ignore the tremendous opportunity that our stock presents to us right now. I mean even at levels well north of what we're currently trading. So we're really balancing all those components in our four pillars in a way that delivers maximum value to our shareholders.

不，我們會在償還債務和將現金回饋給股東之間仔細平衡這些資本分配決策。現在，當我們看到我們的計劃時，我們對去槓桿化的步伐或去槓桿化的努力感到滿意，坦白說，我們不能忽視我們的股票現在給我們帶來的巨大機會。我的意思是，即使水平遠高於我們目前的交易水平。因此，我們真正平衡了四大支柱中的所有組成部分，為股東帶來最大價值。

Okay. That makes sense where the stock price is today. So, I appreciate that. And then as my follow-up, Chris, we share your views on some of the sort of surprising valuations we've seen for some of the M&A deals. So is it as you think of kind of future opportunities, is it just this idea that -- I'm just curious what's sort of driving that? Is there some sort of new scarcity value for these $500 million-plus packages. I'm just trying to get any insight because oil has been obviously pretty stable here for a year. Kind of curious what's driving that.

好的。今天的股價是有道理的。所以，我很欣賞這一點。然後，作為我的跟進者，克里斯，我們分享您對我們所看到的一些併購交易的一些令人驚訝的估值的看法。那麼，當你想到未來的機會時，是否只是這個想法——我只是好奇是什麼推動了這一點？這些價值 5 億多美元的包裹是否有某種新的稀缺價值？我只是想獲得一些見解，因為一年來石油顯然相當穩定。有點好奇是什麼推動了這一點。

Yes. To your point, you see oil has been fairly stable. You see a little bit of weakness going into 2025. So what's driving those valuations. Not sure if it's scarcity, don't know exactly how others are bidding on these assets. I can tell you how we underwrite them, and that's conservatively. It's how we underwrote the entry with Tap Rock, Hibernia and Vencer.

是的。就你的觀點而言，你會看到石油一直相當穩定。進入 2025 年，你會看到一些疲軟的情況。那麼是什麼推動了這些估值呢？不確定是否稀缺，不知道其他人如何競標這些資產。我可以告訴你我們如何承保它們，而且這是保守的。這就是我們與 Tap Rock、Hibernia 和 Vencer 共同承銷該條目的方式。

Again, timing is everything. And again, it's -- just look at our DJ package as well. These were noncore assets trading at a full turn above where our whole company is trading. It's just -- it's a bit of a head scratcher, why that's not reflected better in our value. And that's this team's job to close that gap. I think scarcity could have something to do with it.

再次強調，時機就是一切。再說一次，看看我們的 DJ 套餐就知道了。這些非核心資產的交易價格比我們整個公司的交易價格高出整整一圈。只是——這有點令人頭疼，為什麼這沒有更好地反映在我們的價值上。這個團隊的工作就是縮小這一差距。我認為稀缺性可能與此有關。

And we'll remain disciplined. And we're generally a conservative buyer. I think that's the way you win longterm, and that means we may miss out on some things. And that's okay. I will say how our underwriting has been in the past is also changing, right?

我們將保持紀律。我們通常是保守的買家。我認為這就是你贏得長期勝利的方式，這意味著我們可能會錯過一些事情。沒關係。我會說我們過去的承保方式也在發生變化，對吧？

As you have a team where you've got confidence, hey, we can deliver mid-700s on CapEx. We see line of sight going to the low 700s in the Midland Basin. That changes our ability to underwrite. But at the end of the day, everything that we do, you're going to come back to say, okay, why don't you just go buy this one asset here, has got a couple of thousand wells in inventory of high-quality stuff, and it's trading at 3x, and that's called Civitas.

由於您擁有一支充滿信心的團隊，嘿，我們可以在資本支出上提供 700 年代中期的產品。我們看到視線轉向米德蘭盆地的 700 多公尺低地。這改變了我們的承保能力。但到了最後，我們所做的一切，你都會回來說，好吧，你為什麼不去這裡購買這一資產呢，這裡有幾千口油井的庫存，優質的東西，而且它的交易價格是3 倍，這就是所謂的Civitas。

And so again, this change in the shareholder framework is going to be helpful. And I think drive home that point even further that, hey, we've got a great opportunity within the walls of Civitas and teams on both sides of the company, really executing at a very high level.

同樣，股東框架的這種變化將會有所幫助。我認為進一步強調這一點，嘿，我們在 Civitas 和公司雙方團隊的內部有一個很好的機會，真正以非常高的水平執行。

Leo Mariani, ROTH Capital.

裡奧·馬裡亞尼，羅斯資本。

I wanted to follow up a little bit on some of this downtime that you guys had in the DJ. I was hoping you could kind of quantify that for the second quarter? Was this kind of a couple of thousand BOE per day. And it sounds like you have some expectations that's going to be present as well in 3Q. So I don't know if you guys have a rough estimate of what that might look like in 3Q as well.

我想跟進一下你們在 DJ 中度過的一些休息時間。我希望你能能量化第二季的情況？每天是幾千桶油當量嗎？聽起來您的一些期望也會在第三季出現。所以我不知道你們是否也對第三季的情況有一個粗略的估計。

Yes, Leo, this is Hodge. As Chris mentioned, we've had some extreme temperatures here in Colorado. We've seen some impact in June, and we saw impacts in July. And I think today, we're probably going to be 100 degrees, 98 degrees today. So we're definitely seeing some impacts on production. I think it's in that ballpark that you're referring to. It's transitory. This isn't lost production. This is production that kind of gets shifted out in time. And really what it -- what you'll see is a little shift from what we had talked about earlier on production from third quarter into fourth quarter. But this is something that we'll work through. It's not loss production.

是的，利奧，這是霍奇。正如克里斯所提到的，科羅拉多州經歷了一些極端氣溫。我們在六月看到了一些影響，在七月也看到了影響。我認為今天氣溫可能會達到 100 度、98 度。所以我們肯定會看到對生產的一些影響。我想你指的就是那個球場。這是暫時的。這並不是生產損失。這是一種及時轉移的生產。實際上，您將看到的是我們之前討論的從第三季度到第四季度的生產情況發生了一些變化。但這是我們將要解決的問題。這不是虧損生產。

Okay. And then, obviously, you've done a great job reducing well costs, most prominently on the Midland side. And clearly, you've got targets to reduce those costs a little bit further. I guess, assuming that you guys are able to get to those new well cost reduction targets, which I guess is a handful of more percent depending on the basin. Where do you see that kind of putting maintenance CapEx for the company? I know that you still have a goal of being broadly flat, it sounds like over the next few years?

好的。然後，顯然，你們在降低油井成本方面做得很好，尤其是在米德蘭方面。顯然，您已經制定了進一步降低這些成本的目標。我想，假設你們能夠實現這些新的井成本降低目標，我想這取決於盆地，會增加幾個百分點。您認為公司的維護資本支出在哪裡？我知道你仍然有一個基本持平的目標，聽起來像是未來幾年？

Yes. Thanks for the question. As we entered 2024 with nine rigs in the Permian, we knew we were going to be really front half loaded on CapEx. And so we've got a couple of things that are really making 2024 a little bit noisier than we would like. We came off the high capital spend, but two-third of our capital or 64% of our capital hit in the first half. Now that is setting up the back half growth with second and third quarter TILs representing about two-third.

是的。謝謝你的提問。進入 2024 年，我們在二疊紀擁有 9 個鑽井平台，我們知道我們的資本支出將真正超前。因此，有幾件事確實讓 2024 年變得比我們想像的更加嘈雜。我們擺脫了高資本支出，但我們三分之二的資本或 64% 的資本在上半年受到影響。現在，這正在推動下半年的成長，第二季和第三季的 TIL 約佔三分之二。

In the DJ as an example in the first half, I think we tiled just under 50 well -- 45 wells, in the second half we'll till over 70%. So we're excited about how the second half has set up. But when we entered, we knew 195 as a company was not a maintenance level. We were taking over private assets. These guys were really ramping activity.

以 DJ 為例，上半場，我認為我們平鋪了不到 50 口井——45 口井，下半年我們將達到 70% 以上。所以我們對下半場的安排感到興奮。但當我們進來的時候，我們知道195作為一個公司並不是一個維護等級。我們正在接管私人資產。這些傢伙的活動確實很活躍。

We needed to moderate that. We would moderate that. And so 195, not as a maintenance capital level going forward. I think what's changing and what's really interesting is where is that maintenance level, because with capital costs coming down as significantly as they are. The one thing I would point to, we've got a 10% target out there, our 10% realized, 15% target on the Midland, a little bit less on the Delaware.

我們需要對此進行調節。我們會對此進行調節。所以 195，不作為未來的維持資本水準。我認為正在發生的變化和真正有趣的是維護水平在哪裡，因為資本成本大幅下降。我要指出的一件事是，我們有一個 10% 的目標，我們已經實現了 10%，米德蘭是 15%，特拉華州則少了一點。

That's really about -- we've had a ton of swings at the plate on the Midland. We're super excited about what the teams delivered. On the Delaware, we had fewer swings at the plate. And so as we dig in on the Delaware side, I think you'll see some additional cost savings that we could work through the system. So there's a lot of noise in the overall capital allocation system that we'll work through as we head into 2025.

這實際上是——我們在米德蘭的盤子上經歷了很多波動。我們對團隊交付的成果感到非常興奮。在德拉瓦州，我們在本壘板上的揮桿次數較少。因此，當我們深入研究特拉華州方面時，我認為您會看到我們可以透過該系統節省一些額外的成本。因此，在進入 2025 年時，我們將解決的整體資本配置系統中存在著許多噪音。

But again, we'll figure out what that maintenance level of CapEx is. I think importantly, in 2025, you'll see us try and baseload activity a little bit cleaner throughout the quarter now that we're fully in control of the assets, and we'll see where we end up, but it's going to be targeting broadly flat production year-over-year.

但同樣，我們將弄清楚資本支出的維持水準是多少。我認為重要的是，到 2025 年，您將看到我們在整個季度嘗試使基本負載活動變得更加乾淨，因為我們完全控制了資產，我們將看到我們最終的結果，但它將是產量目標與去年同期基本持平。

Okay. That's helpful color. I mean, it sounds like certainly the punch line is it's going to be below $1.95, and I guess we'll see where it comes out. And I guess just lastly for me on taxes. You guys did take down your cash tax estimate a little bit here in 2024. Wanted to get maybe a high-level sense of what you guys are seeing as we roll into '25. Are you still able to defer the preponderance of the tax issue?

好的。這是有用的顏色。我的意思是，聽起來最妙語肯定是它將低於 1.95 美元，我想我們會看到它的結果。我想最後對我來說就是稅。你們確實稍微降低了 2024 年的現金稅預估。當我們進入 25 世紀時，我想對你們所看到的有一個高層次的了解。您還能延後稅務問題的主導地位嗎？

Leo, this is Marianella. We did take down the guidance about 12% at the midpoint on cash taxes. That was primarily related to somewhat a slightly conservative assumption on cash taxes for the year as we completed an acquisition in the first quarter. The actual cash tax move down a little bit but perhaps not as materially. And then as you look into next year, obviously, having lost a little bit of the tax shield with not having an acquisition next year, right? It's expected to trend down -- or trend up, sorry, year-over-year.

利奧，這是瑪麗內拉。我們確實將現金稅的中間值下調了約 12%。這主要與我們在第一季度完成收購時對今年現金稅的稍微保守的假設有關。實際現金稅略有下降，但幅度可能不大。然後，當你展望明年時，顯然，由於明年沒有收購，失去了一點稅收保護，對嗎？預計它會呈下降趨勢，或呈上升趨勢，抱歉，逐年上升。

Okay. And is that going to trend up a lot or you still think there's still a decent amount of shield?

好的。這種趨勢是否會大幅上升，或者您仍然認為仍然有相當數量的護盾？

As (inaudible), you're probably looking at somewhere in the $75 million range or so, $75 million to $100 million, about $75 oil.

（聽不清楚），您可能會看到 7500 萬美元左右的價格，即 7500 萬美元到 1 億美元，大約 75 美元的石油。

John Abbott, Wolfe Research.

約翰‧阿博特，沃爾夫研究中心。

Chris, I just want to go back to this discussion about production being broadly flat year-over-year, and I just want to make sure that I understand. So oil production is expected to increase gradually from 3Q into 4Q. And it sounds like you want a more level-loaded program next year. I understand the idea is to maximize free cash flow. But I just -- I'm trying to understand the cadence -- potential cadence in 2025. So it's flat year-over-year. Why not hold the 4Q production rate flat? And why is that not a possibility? Or how do you sort of think about that?

克里斯，我只想回到關於產量同比基本持平的討論，我只是想確保我理解。因此預計第三季至第四季石油產量將逐步增加。聽起來你明年想要一個更高級別的課程。我理解這個想法是最大化自由現金流。但我只是 - 我正在嘗試了解 2025 年的潛在節奏。所以同比持平。為什麼不維持第四季生產力不變？為什麼這不可能呢？或者你對此有何看法？

Yes. I think -- thanks for the question, John. It's probably flat, that's the overall guideline. But we're going to look at multiple iterations, whether that's keeping exit flat or year-over-year flat. Or I would point us back to 2023, when we entered the year, we saw a big disconnect between service cost and the commodity. And we said, hey, we're going to let production moderate a little bit, and the team ended up outperforming and keeping production flat again.

是的。我想——謝謝你的提問，約翰。它可能是平坦的，這是總體指導方針。但我們將考慮多次迭代，無論是保持退出持平還是同比持平。或者我會讓我們回到 2023 年，當我們進入這一年時，我們看到服務成本和商品之間存在著很大的脫節。我們說，嘿，我們將讓生產稍微放緩，團隊最終表現出色並再次保持生產持平。

So I would say broadly flat to the starting point, but we're going to gut check the model and the capital allocation to see if it makes sense to keep the exit flat or go a different direction. But we'll have a lot of work to do this fall as we get ready for 2025, and excited to ultimately have a little bit of a more steady-state program going forward. We'll look at all paths to allocate capital to drive long-term shareholder value.

因此，我想說的是，起點基本上持平，但我們將仔細檢查模型和資本配置，看看保持退出持平或走不同的方向是否有意義。但今年秋天，我們將有很多工作要做，為 2025 年做好準備，我們很高興最終能有一個更穩定的計劃向前邁進。我們將研究所有分配資本以推動長期股東價值的途徑。

Appreciate it. And the second question is on hedging. So it sounds like you want to add more hedges. And as you sort of look at the oil macro out there, how are you thinking about the extension you want to be hedged in 2025?

欣賞它。第二個問題是關於對沖的。所以聽起來你想添加更多的樹籬。當您審視石油宏觀情況時，您如何考慮 2025 年想要對沖的延期？

John, this is Marianella. Thanks for the question. Look, we have a hedging program that underpins our balance sheet delevering initiatives, right? And with that, we want to derisk the pace at which we're delivering on a go-forward basis.

約翰，這是瑪麗內拉。謝謝你的提問。看，我們有一個對沖計劃來支持我們的資產負債表去槓桿化舉措，對嗎？因此，我們希望降低未來交付速度的風險。

Right now, our hedging program have basically, as long as we're above our leverage target of point of 5x, you will continue to see us roll through a 30% to 40% of expected next 12 months on the hedging side. We just recently rolled in Q3 of 2025 at very attractive prices about a couple of months ago when (inaudible) at least from month within the low 80s.

目前，我們的對沖計劃基本上已經實現，只要我們高於 5 倍的槓桿目標，您將繼續看到我們在對沖方面在未來 12 個月內滾動預期的 30% 至 40%。大約幾個月前，我們最近剛以非常有吸引力的價格推出了 2025 年第三季的產品，當時（聽不清楚）至少從一個月開始價格就在 80 左右。

Look, I'll say, we have a structural hedge somewhat in our business, right, with the low-cost structure that we have that we continue driving down lower. And when you combine that with the curve that's back rotated along with the meaningful progress that we expect to make on leverage, we don't expect to have to really want to or need to add hedges beyond a 12-month period at this point.

聽著，我會說，我們的業務有一定的結構性對沖，對吧，我們擁有低成本結構，我們繼續壓低價格。當你將其與反向旋轉的曲線以及我們期望在槓桿方面取得的有意義的進展結合起來時，我們預計此時不必真正想要或需要在 12 個月之後添加對沖。

I think all those components leave us extremely comfortable with our pace of delevering and our free cash flows over that time frame. So between now and then, we'll continue to see us roll in the quarter as it rolls out, and that's what we will continue to target on a go-forward basis.

我認為所有這些組成部分讓我們對這段時間的去槓桿化步伐和自由現金流感到非常滿意。因此，從現在到那時，我們將繼續看到我們在本季推出它，這就是我們將繼續前進的目標。

(Operator Instructions) Oliver Huang, TPH.

（操作員說明）Oliver Huang，TPH。

For my first question, I know this stuff is always lumpy and it's still pretty early to be thinking about 2025. But as we approach the back half of the year, any sort of early thoughts in terms of how you all are thinking about picking back activity to ensure the 2025 program is coming along at optimal levels? Just kind of thinking about how this year's program was front-end weighted on the capital side and how you all been talking about wanting to level load it a little bit more going forward?

對於我的第一個問題，我知道這件事總是不穩定，現在考慮 2025 年還為時過早。但隨著今年下半年的臨近，你們對如何收回活動以確保 2025 年計劃達到最佳水平有什麼早期想法嗎？只是想一下今年的計劃在資本方面的前端權重如何，以及你們如何談論想要在未來進一步增加負載水準？

M. Christopher Doyle Civitas Resources, Inc. – President, CEO & Director Sure. Thanks for the question. Yes, 2024 is a little bit of an anomaly. I think what's interesting and as we head into the second half, what's not baked in is are there additional gains on the capital side where we could step back and redeploy that capital rather than as we did this quarter, reduce overall CapEx by $50 million, redeploy that capital to strengthen, may not hit production in '24, but to strengthen the exit, strengthen as we head into 2025.

M. Christopher Doyle Civitas Resources, Inc. — 總裁、執行長兼董事 當然。謝謝你的提問。是的，2024 年有點反常。我認為有趣的是，當我們進入下半年時，沒有考慮到的是資本方面是否有額外的收益，我們可以退一步重新部署資本，而不是像本季度那樣，將總體資本支出減少 5000 萬美元，重新部署資本以加強，可能不會在24 年影響生產，但要加強退出，在我們進入2025 年時加強。

I think that's the beauty of what this team is delivering as we can lean in, just as we've done with the DJ, this is a highly functioning team that now we've got confidence we can lean in as we head into 2025. So capital savings could come back to additional free cash flow to take to the balance sheet or it could be redeployed, and we'll look for the opportunities to redeploy that capital and do whatever is best to long-term shareholder value. But all eyes for us are let's look at '25 to strengthen what we can and if the opportunity is there to reallocate some of that capital, we'll take it.

我認為這就是這個團隊所提供的服務的美妙之處，因為我們可以依靠，就像我們對 DJ 所做的那樣，這是一支高效的團隊，現在我們有信心在進入 2025 年時可以依靠。因此，資本節省可能會回到額外的自由現金流，進入資產負債表，或者可能被重新部署，我們將尋找重新部署資本的機會，並採取最有利於長期股東價值的措施。但我們所有人的目光都集中在 25 年，以加強我們所能做到的，如果有機會重新分配部分資本，我們會抓住它。

Okay. That makes sense. And for my second question, I know you all haven't talked about this too much, but I just wanted to kind of hit on. Maybe if you could provide some color on how you all are thinking about simul-frac operations in the Permian, especially in the Midland. Is this an opportunity set or something that could get implemented in the coming quarters in a more fulsome way to kind of drive more savings?

好的。這是有道理的。對於我的第二個問題，我知道你們都沒有談論太多這個問題，但我只是想順便聊聊。也許您可以提供一些關於您如何看待二疊紀地區（尤其是米德蘭地區）的同時壓裂作業的資訊。這是一個機會集還是可以在未來幾季以更充實的方式實施以推動更多節省的措施？

Yes. Oliver, this is Hodge. Thanks for the question. Going back and looking at where we were building this team out and what this team has done? What I think you've seen through the capital efficiencies, the operating efficiency is this team really leaning in on the way operations were being done, optimizing the equipment, optimizing the designs and really building a strong track record of delivering continuous improvement. To your point and to your question, now what are the incremental things that we can bring to the table for continuous improvement on the completion side, and we are in the process of putting plans in place to move towards simul-frac towards the end of this year in the Midland Basin.

是的。奧利佛，這是霍奇。謝謝你的提問。回顧我們在哪裡建立這個團隊以及這個團隊做了什麼？我認為您透過資本效率和營運效率看到的是，團隊真正注重營運方式，優化設備，優化設計，並真正建立了持續改進的良好記錄。針對您的觀點和問題，現在我們可以為完成方面的持續改進提供哪些增量內容，並且我們正在製定計劃，以在年底前實現同時壓裂今年在米德蘭盆地。

Okay. Perfect. And would any sort of savings from simul-frac be embedded with -- into the target that you outlined today already? Or would that kind of be in that plus category?

好的。完美的。同步壓裂帶來的任何節省是否會嵌入您今天已經概述的目標中？或者說這屬於那個加號類別？

The savings to date at that $765 number, they're not in there. That is -- that will be incremental savings on a go-forward basis.

迄今為止節省的 765 美元並不在其中。也就是說，這將是未來增量節約的一部分。

Noel Parks, Tuohy Brothers.

諾埃爾·帕克斯、圖伊兄弟。

One thing I was wondering is with the series of acquisitions in the Permian, has your use of service vendors remain largely consistent versus the ones you inherited there? And I was sort of wondering because from what I'm hearing as people head towards looking at 2025 contracting for services, I feel like I'm hearing more negotiations happening earlier, but maybe going slower. So I just sort of wondered where you stood with your roster of providers?

我想知道的一件事是，隨著二疊紀盆地的一系列收購，您對服務供應商的使用是否與您在那裡繼承的服務供應商保持基本一致？我有點想知道，因為從我所聽到的人們正在考慮 2025 年服務承包的情況來看，我覺得我聽到更多的談判在更早進行，但可能會進展得更慢。所以我只是想知道您的供應商名冊處於什麼位置？

Sure. It's changed, I'd say, quite significantly from the beginning of the year. When you go from nine rigs to start to four or five rigs today, when you really hone in on who are your service partners that you want to align yourself on the drilling side and completion side. Very different from the previous operators, and we're super excited to have the partners that we have in those basins.

當然。我想說，與今年年初相比，情況發生了很大的變化。當您從最初的九台鑽機發展到今天的四到五台鑽機時，當您真正了解誰是您的服務合作夥伴時，您希望在鑽井方面和完井方面保持一致。與以前的營運商非常不同，我們非常高興能在這些盆地擁有合作夥伴。

I would say what's interesting, and again, this is what will show up at the negotiating table is guys, here's a team that's executing exceptionally well. We filled off seven days per well in the Midland as an example, between drilling and completion efficiencies. That means they can be much more efficient. That means their margins are improving, and we can lean into that and really be successful together.

我想說的是，有趣的是，再說一次，這就是談判桌上出現的東西，夥計們，這是一支執行得非常好的團隊。以米德蘭的每口井為例，我們在鑽井和完井效率之間填充了 7 天。這意味著他們可以更有效率。這意味著他們的利潤正在提高，我們可以利用這一點並真正共同取得成功。

I think the other thing we've seen this in the past, right, as companies have entered basins, inter subscale. We had some discussions of, hey, do you just dip your toe in and then start building scale around that? No, you don't. You go in big, you establish scale as quickly as you can. That's what we did in the Midland. It's what we did in the Delaware.

我認為我們過去看到的另一件事是，隨著公司進入小規模盆地。我們進行了一些討論，嘿，你是否只是嘗試一下，然後開始圍繞它建立規模？不，你不知道。你要做大事，盡快建立規模。這就是我們在米德蘭所做的。這就是我們在特拉華州所做的。

And so now, you step back and say, here's a company that's got scale positions in three basins that we can lean and work together with our service providers in the DJ, Midland and Delaware to say, look, there's a high-functioning team. How do we win together?

所以現在，你退後一步說，這是一家在三個盆地都有規模地位的公司，我們可以藉鑑並與我們在DJ、米德蘭和特拉華州的服務提供者合作，說，看，有一個高效的團隊。我們如何共同獲勝？

And we weren't in that position at the beginning of the year, right, because we weren't ready to underpin and underwrite what we felt like was going to be a high functioning technical team, and it's proved out that way after the first two quarters.

今年年初我們並沒有處於這個位置，對吧，因為我們還沒有準備好支持和承保我們認為將成為一個高功能的技術團隊，並且在第一個之後證明了這一點兩個季度。

Great. That's really interesting. And just to circle back to something that got asked about earlier. In terms of how you've changed your development approach, being a little bit more, I guess, judicious about infill drilling and so forth. So is development pattern your biggest philosophical difference technically with the prior operators? And just in broad strokes, is that more engineering or more better understanding of the rock driving that?

偉大的。這真的很有趣。回到之前被問到的問題。就您如何改變開發方法而言，我想，對加密鑽孔等要更加明智。那麼開發模式是您在技術上與之前電信商最大的理念差異嗎？簡而言之，是更多的工程設計還是對岩石的更好理解？

Yes. I think as we look at it, it's a little bit of both, right? It's reservoir engineering, but it's tied to our understanding of the subsurface. It's tied to how we believe wells will interact with one another. That is a big philosophical change. There are companies out there that, gosh, we've got an inventory number and we've got to expand inventory.

是的。我認為當我們看它時，兩者都有一點，對吧？這是油藏工程，但它與我們對地下的了解息息相關。它與我們相信井之間如何相互作用有關。這是一個重大的哲學轉變。有些公司，天哪，我們有庫存數量，我們必須擴大庫存。

So let's drill eight wells a section and guys look at the seventh well, look at the eighth well, those are money losers, peel off a couple of wells, increase their cash-on-cash return, that's a better solution for our shareholders. Don't focus on inventory, focus on returns. So that's a big change. I think the other big change is look, lean into new ventures, lean into the land team, take one-mile wells, push them to two in the DJ, look to swap into pads where you've got a four-mile wells versus three that other operators in the basin can't do as we've done. Use that operating team to your advantage.

因此，讓我們在一個區域鑽八口井，大家看看第七口井，看看第八口井，這些都是賠錢的，剝離幾口井，增加他們的現金回報，這對我們的股東來說是一個更好的解決方案。不要專注於庫存，而要專注於退貨。所以這是一個很大的改變。我認為另一個重大變化是看，投入新的企業，投入土地團隊，拿一英里的井，在 DJ 中將它們推到兩處，考慮換成擁有四英里井的油田，而不是三是盆地內其他運營商無法像我們一樣做到的。利用該營運團隊來發揮您的優勢。

And don't focus in on, hey, we just -- we got to drill these wells right now. Take a one mile, make it a two. That's another big change. And then the final change is, again, hey, look at me, I've got a low day rate. That's great. Iron's is not great. The crew is not great.

不要專注於，嘿，我們只是 - 我們現在必須鑽這些井。走一英里，變成兩英里。這又是一個很大的改變。最後的變化是，嘿，看看我，我的日費率很低。那太棒了。鐵的不太好。船員們並不出色。

So let's upgrade. Let's spend a little bit more on a day rate, get better iron, get better crews and, woah, you got 20%, 50% efficiency gains overnight. It's amazing how that works. And so I think really digging in on all facets of the business, feel yourself back a little bit, figure out what drives long-term shareholder value and then go attack. That's what we've done in the DJ. It's what we're doing in the Permian. And so I think it's a little bit of all of the above, Noel, but I appreciate the question.

那我們來升級吧。讓我們在日費上多花一點錢，獲得更好的熨斗，獲得更好的工作人員，哇哦，你一夜之間就獲得了 20%、50% 的效率提升。這真是太神奇了。因此，我認為真正深入研究業務的各個方面，感覺自己回來了一點，找出推動長期股東價值的因素，然後開始進攻。這就是我們在 DJ 中所做的。這就是我們在二疊紀所做的事情。所以我認為這只是上述所有問題的一部分，諾埃爾，但我很欣賞這個問題。

This does conclude our Q&A session. At this time, I will hand the call back over to Mr. Whitmarsh for closing remarks.

我們的問答環節到此結束。此時，我會將電話轉回 Whitmarsh 先生進行總結發言。

Yes. Thank you, Jessica, and I appreciate everybody for joining us and for your interest in Civitas. We'll be on the road quite a bit here in the third quarter, so we look forward to seeing you at conferences and at road shows. Please don't hesitate to reach out if you have any additional follow-up, and have a great day, and please stay safe.

是的。謝謝你，傑西卡，我也感謝大家加入我們以及對 Civitas 的興趣。第三季我們將經常出差，因此我們期待在會議和路演上見到您。如果您有任何其他後續行動，請隨時與我們聯繫，祝您度過愉快的一天，並注意安全。

Ladies and gentlemen, that concludes today's call. Thank you all for joining. You may now disconnect.

女士們、先生們，今天的電話會議到此結束。感謝大家的加入。您現在可以斷開連線。