Callon Petroleum Co (CPE) 2023 Q1 法說會逐字稿

Ladies and gentlemen, welcome to the Callon Petroleum First Quarter 2023 Earnings Conference Call. (Operator Instructions) Just a reminder, today's conference call is being recorded. (Operator Instructions) I will turn the call over to Callon's Head of Investor Relations, Kevin Smith. Please go ahead, sir.

女士們，先生們，歡迎來到 Callon Petroleum 2023 年第一季度收益電話會議。 （操作員說明）提醒一下，今天的電話會議正在錄製中。 （操作員說明）我會將電話轉給 Callon 的投資者關係主管凱文史密斯。請繼續，先生。

Thank you, Mary, and good morning, everyone. I am joined by our CEO, Joe Gatto; our COO, Jeff Balmer; and our CFO, Kevin Haggard. During our prepared remarks today, we will reference our release on the first quarter and our recently announced Permian and Eagle Ford transactions as well as supplemental slide decks related to both. All these materials are available on our website at www.callon.com.

謝謝你，瑪麗，大家早上好。我們的首席執行官 Joe Gatto 加入了我的行列；我們的首席運營官 Jeff Balmer；以及我們的首席財務官 Kevin Haggard。在我們今天準備好的評論中，我們將參考我們在第一季度的發布和我們最近宣布的 Permian 和 Eagle Ford 交易以及與兩者相關的補充幻燈片。所有這些材料都可以在我們的網站 www.callon.com 上找到。

Today's call will include forward-looking statements that refer to estimates and plans. Actual results could differ materially due to risk factors noted in our presentation and SEC filings. We will also refer to some non-GAAP financial measures that help facilitate comparisons across periods and with our peers. For any non-GAAP measures referenced, we provide a reconciliation to the nearest corresponding GAAP measure in the appendix to our slide deck and in our earnings press release, both of which are available on our website. Following our prepared remarks, we will open the call for Q&A.

今天的電話會議將包括涉及估計和計劃的前瞻性陳述。由於我們在演示文稿和美國證券交易委員會備案文件中指出的風險因素，實際結果可能存在重大差異。我們還將參考一些非 GAAP 財務措施，這些措施有助於促進跨時期和與同行的比較。對於任何引用的非 GAAP 措施，我們在我們的幻燈片附錄和我們的收益新聞稿中提供了與最接近的相應 GAAP 措施的對賬，這兩者都可以在我們的網站上找到。在我們準備好的評論之後，我們將開啟問答環節。

I will now turn the call over to Joe Gatto. Joe?

我現在將把電話轉給 Joe Gatto。喬？

Thank you, Kevin. Good morning, everyone. We are thrilled to have you with us today on this very exciting day for Callon. We delivered another strong quarter of performance, highlighted by improved Permian cycle times and continued debt reduction. I'll cover the first quarter highlights later in my remarks, but we are off to a great start in 2023. I'll spend most of my time today discussing our accretive and transformative transaction in the Delaware Basin. Simply put, this deal is a great fit for us. It solidifies our focus and positions us as a leading operator in the Permian with more than 145,000 net acres and 107,000 BOE per day of production.

謝謝你，凱文。大家，早安。在這個對 Callon 來說非常激動人心的日子裡，我們很高興今天有你和我們在一起。我們又交付了一個強勁的季度業績，突出表現在改進的二疊紀周期時間和持續的債務削減。我將在稍後的發言中介紹第一季度的亮點，但我們在 2023 年有了一個良好的開端。我今天的大部分時間將討論我們在特拉華盆地的增值和變革性交易。簡而言之，這筆交易非常適合我們。它鞏固了我們的重點，並將我們定位為二疊紀的領先運營商，每天生產超過 145,000 英畝的淨土地和 107,000 桶油當量。

It's contiguous with and complements our existing Delaware position where we have proven history of adding value. And these high-quality assets will be seamlessly integrated into our development model and we'll immediately compete for capital within Callon's broader Permian portfolio. The cash portion of the transaction totaling approximately $265 million will be funded with the sale of our Eagle Ford position for $655 million in upfront cash. The transactions will be accretive to our absolute leverage and credit metrics. Our strengthened balance sheet achieves our initial debt reduction milestone, allowing us to launch a share buyback program upon closing.

它毗鄰並補充了我們在特拉華州現有的位置，我們在特拉華州的位置已經證明了增值的歷史。這些優質資產將無縫集成到我們的開發模式中，我們將立即在 Callon 更廣泛的 Permian 投資組合中爭奪資本。交易的現金部分總計約 2.65 億美元，將通過以 6.55 億美元的預付現金出售我們的 Eagle Ford 頭寸來籌集資金。這些交易將增加我們的絕對槓桿和信用指標。我們強化的資產負債表實現了我們最初的債務削減里程碑，使我們能夠在交易結束時啟動股票回購計劃。

Let's dig through some more of the deal highlights. We are adding 18,000 net acres and about 14,000 barrels of oil equivalent per day of production from oil assets that sit contiguous to our core Delaware acreage. We are gaining a larger footprint in the Permian and increasing the critical mass of our operations. This will create opportunities for further capital efficiency improvements and economies of scale. This deal extends our decade-long Permian inventory of high-return oil-weighted drilling locations. We are adding 70 operated long-lateral locations, of which 90% have a positive PV-10 at $45 oil.

讓我們深入了解更多交易亮點。我們正在增加 18,000 英畝的淨土地和每天約 14,000 桶石油當量的產量，這些石油資產與我們的核心特拉華州種植面積相鄰。我們正在二疊紀獲得更大的足跡，並增加我們運營的臨界質量。這將為進一步提高資本效率和規模經濟創造機會。這筆交易擴展了我們長達十年的二疊紀高回報石油加權鑽井地點庫存。我們正在增加 70 個運營的長邊位置，其中 90% 的 PV-10 在 45 美元油價時呈正值。

These locations are in the well-established 3rd Bone Shale, Wolfcamp A and Wolfcamp B intervals with additional potential in both shallower and deeper zones. This contiguous acre position with stacked pay horizons sets up perfectly to the application of our proven life-of-field co-development model. Today's earnings deck highlights sustained well productivity benefits across our asset base in both the Delaware and Midland basins that are driven by this model.

這些位置位於成熟的第 3 骨頁岩、Wolfcamp A 和 Wolfcamp B 層段，在較淺和較深的區域都具有額外的潛力。這片連續的英畝土地擁有堆疊的薪酬水平，非常適合我們久經考驗的油田共同開發模型的應用。今天的收益平台突出了我們在特拉華州和米德蘭盆地的資產基礎上由這種模式驅動的持續的油井生產率收益。

These transactions will improve our operating margins due to a similar pro forma oil weighting and lower LOE per BOE. We have also identified more than $10 million in annual G&A savings and are confident that we will find other cost-saving opportunities through the integration of the asset. This deal is priced right at 2.5x EBITDA and provides an efficient way for us to exit the Eagle Ford and is highly accretive to key financial metrics, including a 15% uplift to adjusted free cash flow in 2023 and a 55% increase in 2024 at recent strip commodity prices. It also improves free cash flow per share by 10% in 2023. And after a full year of integration and synergies, 40% in 2024. Per share metric accretion has the opportunity to further improve even before share repurchases since the number of shares issued to the selling parties decreases to the extent that Callon's 20-day VWAP is above $32.50 at closing.

由於類似的備考石油權重和較低的每桶油當量 LOE，這些交易將提高我們的營業利潤率。我們還發現每年 G&A 節省超過 1000 萬美元，並且有信心通過資產整合找到其他節省成本的機會。這筆交易的定價恰好是 EBITDA 的 2.5 倍，為我們退出 Eagle Ford 提供了一種有效的方式，並且對關鍵財務指標具有很高的增值作用，包括 2023 年調整後的自由現金流量增加 15% 和 2024 年增加 55%近期鋼帶商品價格上漲。它還在 2023 年將每股自由現金流提高了 10%。經過一整年的整合和協同效應，到 2024 年提高了 40%。每股指標增長有機會進一步提高，甚至在股票回購之前，因為發行的股票數量達到賣方的股價下跌至 Callon 的 20 天 VWAP 收盤時高於 32.50 美元。

And importantly, we will focus 100% of our capital and operational teams on the Permian. This will yield stronger well economics, enhanced flexibility and project scheduling and improved cycle times. Together, this will reduce our reinvestment rates and increase the conversion of EBITDAX in the free cash flow. The bottom line, we will generate more free cash flow with our investment dollars through significant capital efficiency gains and cost savings as a focused Permian company.

重要的是，我們將把 100% 的資本和運營團隊集中在二疊紀。這將產生更強的油井經濟性、增強的靈活性和項目調度以及改進的周期時間。總之，這將降低我們的再投資率並增加 EBITDAX 在自由現金流中的轉換。最重要的是，作為一家專注於二疊紀的公司，我們將通過顯著的資本效率收益和成本節約，用我們的投資資金產生更多的自由現金流。

From our forecast, you'll see that 2023 production will be relatively unchanged with the lower capital spend despite the fact that we are selling more current production that we are buying. Looking to 2024, we expect production to grow at a low single-digit rate year-over-year as contributions from the newly acquired assets increased. The final point I'll make is the culmination of everything I've covered on this call and perhaps the most important.

從我們的預測中，您會看到 2023 年的產量將相對不變，因為資本支出較低，儘管我們正在出售更多我們正在購買的當前產品。展望 2024 年，隨著新收購資產的貢獻增加，我們預計產量將以較低的個位數同比增長。我要說的最後一點是我在這次電話會議上所涵蓋的一切的高潮，也許是最重要的。

As you know from recent conversations, reducing debt and initiating a shareholder return program are our top objectives for 2023. These transactions get us there on both counts. Upon closing, our debt will be reduced by more than $300 million to approximately $1.9 billion, below our $2 billion initial debt milestone. We will continue to focus on deleveraging and see substantial progress in 2024 towards our optimal debt target of less than $1.5 billion and leverage below 1x.

正如您從最近的談話中了解到的那樣，減少債務和啟動股東回報計劃是我們 2023 年的首要目標。這些交易使我們在這兩個方面都達到了目標。交易完成後，我們的債務將減少超過 3 億美元，降至約 19 億美元，低於我們 20 億美元的初始債務里程碑。我們將繼續專注於去槓桿化，並在 2024 年朝著低於 15 億美元和槓桿率低於 1 倍的最佳債務目標取得實質性進展。

Subject to closing, our Board has approved a $300 million share buyback that we plan to execute over a 2-year period. We believe that Callon's intrinsic value proposition, which will be significantly improved by these accretive transactions is not reflected in the public market valuation, creating a very compelling case for a repurchase program moving forward. Before taking your questions, let me quickly give you the main takeaways from the first quarter.

交易完成後，我們的董事會已批准我們計劃在 2 年內執行的 3 億美元股票回購。我們認為，Callon 的內在價值主張將通過這些增值交易得到顯著改善，但並未反映在公開市場估值中，這為推進回購計劃創造了一個非常令人信服的理由。在回答您的問題之前，讓我快速向您介紹第一季度的主要內容。

First, we are executing extremely well. Our first quarter financial and operating results were in line or better across all key metrics. This gives us high confidence in our ability to deliver on our 2023 business plan. We are also maintaining our focus on capital discipline and balance sheet strength. We generated $7 million in adjusted free cash flow for the quarter, allowing us to realize our 11th straight quarter of debt reduction.

首先，我們執行得非常好。我們第一季度的財務和經營業績在所有關鍵指標上都符合或更好。這使我們對我們實現 2023 年業務計劃的能力充滿信心。我們還將繼續關注資本紀律和資產負債表實力。本季度我們產生了 700 萬美元的調整後自由現金流，使我們能夠連續第 11 個季度減少債務。

Second, our life of field co-development model is differentiating Callon from the pack. We provided a great deal of insight in this model last quarter and had discussions with many of you on the road over the last few months. We have implemented this model consistently over the last 5-plus years, and it underpins our longer-term asset value proposition.

其次，我們的現場合作開發模式讓 Callon 脫穎而出。我們在上個季度提供了很多關於這個模型的見解，並在過去幾個月中與你們中的許多人進行了討論。在過去 5 年多的時間裡，我們一直在實施這種模式，它鞏固了我們的長期資產價值主張。

Third, we are seeing significant operational improvements. These gains are owed to scale, larger project sciences and deep knowledge and experience within our teams. We are drilling wells faster, pumping more completion stages per day and using multiple rigs and completion crews on single projects. Increased D&C efficiencies, combined with our focus on simultaneous drilling and completion operations are rapidly reducing cycle times and increasing capital efficiency.

第三，我們看到了顯著的運營改進。這些收益歸功於我們團隊的規模、更大的項目科學以及深厚的知識和經驗。我們正在更快地鑽井，每天抽取更多的完井階段，並在單個項目上使用多個鑽井平台和完井人員。 D&C 效率的提高，加上我們對同步鑽井和完井作業的關注，正在迅速縮短週期時間並提高資本效率。

All these factors contribute to strong momentum for our production outlook. We forecast that our second quarter production will be up over 5% to 105,000 to 108,000 BOE per day. We have updated our 2Q guidance in today's materials and have also provided updated guidance for 2023 that assume 6 months of impact from the transactions.

所有這些因素都為我們的生產前景提供了強勁的動力。我們預測我們第二季度的產量將增長 5% 以上，達到每天 105,000 至 108,000 桶油當量。我們在今天的材料中更新了我們的 2Q 指南，並提供了 2023 年的更新指南，假設交易的影響為 6 個月。

In closing, know that our results year-to-date are strong and in line with our top priorities of investing in premier assets, generating free cash flow and reducing debt. Today's transaction fits us perfectly both financially and operationally. Financially, it allows us to achieve our near-term debt milestone and launch a share buyback program this year. Operationally, it solidifies our focus on the Permian Basin. Similar to past acquisitions, we are highly confident that our life of field co-development model will allow us to add significant value on our new acreage in the Permian and enhance our cost structure and capital efficiency outlook.

最後，要知道我們今年迄今的業績強勁，符合我們投資優質資產、產生自由現金流和減少債務的首要任務。今天的交易在財務和運營上都非常適合我們。在財務上，它使我們能夠實現近期的債務里程碑，並在今年啟動股票回購計劃。在操作上，它鞏固了我們對二疊紀盆地的關注。與過去的收購類似，我們非常有信心，我們的油田共同開發模式將使我們能夠為二疊紀的新面積增加顯著價值，並改善我們的成本結構和資本效率前景。

And finally, I'd like to personally thank our talented Eagle Ford employees for their commitment and hard work. They have done an exceptional job operating safely and efficiently and have consistently made valued contributions to Callon. This concludes our prepared remarks. We are now happy to take your questions. Mary?

最後，我要親自感謝我們才華橫溢的 Eagle Ford 員工的承諾和辛勤工作。他們在安全高效地運營方面表現出色，並始終如一地為 Callon 做出寶貴貢獻。我們準備好的發言到此結束。我們現在很樂意回答您的問題。瑪麗？

(Operator Instructions) Your first question comes from Zach Parham with JPMorgan.

（操作員說明）您的第一個問題來自摩根大通的 Zach Parham。

Joe, first one for you. You mentioned 55% higher 2024 free cash flow and 40% higher free cash flow per share following the transactions. Could you just walk us through some of the underlying assumptions, particularly on pro forma CapEx and production volumes that underwrite that number?

喬，第一個給你。您提到交易後 2024 年自由現金流增加 55%，每股自由現金流增加 40%。您能否向我們介紹一些基本假設，特別是關於支持該數字的備考資本支出和產量？

Yes. What we've talked about, as you saw in the release, we're moving over the course of this year from 7 rigs down to 5. I would expect a similar type of cadence going into '24. We'll fill in some more details going ahead. But obviously, with the efficiencies we pick up with just operating in the Permian go a long way on that front. -- underlying assumptions of strip pricing as of a couple days ago are going to go into that and production growth. Now this is compared to a higher baseline in '23 because we had 6 months of higher Eagle Ford production in the first half, but we see on top of that higher baseline that low single digits of production growth into '24.

是的。正如您在發布中所看到的，我們所討論的是，我們在今年的過程中從 7 個鑽機減少到 5 個。我希望類似的節奏進入 24 年。我們將繼續填寫更多詳細信息。但顯然，憑藉我們在二疊紀作業中獲得的效率，在這方面大有幫助。 - 幾天前帶鋼定價的基本假設將進入這一點和產量增長。現在將其與 23 年的較高基線進行比較，因為我們在上半年有 6 個月的 Eagle Ford 產量較高，但我們看到在較高的基線之上，24 年的產量增長率較低。

Got it. And then maybe one just on well productivity and kind of your expectations from percussion. The 70 locations that you're acquiring, how do you think about the timing of developing those? In your prepared remarks, you mentioned they'd be immediate -- they would immediately compete for capital. But maybe just any thoughts on how those returns compare with your current Delaware Basin drilling program.

知道了。然後也許只是關於生產力和打擊樂的期望。您要收購的 70 個地點，您如何看待開發這些地點的時機？在你準備好的發言中，你提到他們會立即——他們會立即爭奪資本。但也許只是關於這些回報與您當前的特拉華盆地鑽探計劃相比如何的任何想法。

Yes. Look, we think that they squarely compete for capital that talked about similar to what we've done with acquisitions. We'll fill out some completion activity on their asset base over the coming months and then get going with our -- overlay of our model over the next 12 months and really start seeing some more of an impact in '24. I guess with this asset base, in particular, it's always worth going back and explaining how these asset bases have come to where they are.

是的。看，我們認為他們正爭奪資本，這些資本談論的內容與我們在收購方面所做的類似。在接下來的幾個月裡，我們將在他們的資產基礎上完成一些完成活動，然後在接下來的 12 個月內繼續我們的模型覆蓋，並真正開始在 24 年看到更多的影響。我想特別是有了這個資產基礎，總是值得回過頭來解釋這些資產基礎是如何走到現在的位置的。

And the Southern Delaware Basin is about learnings, right? And we have as much learning as anybody in this part of the world to overlay our model. So previous operators, we've seen pretty tight spacing, 7 to 10 wells per section in a couple of zones and understimulation on completion designs. That's evolved with the current operator took over just under 2 years ago, they started moving to wider spacing, some increased completion design, intensity. We've seen some progress there.

南特拉華盆地是關於學習的，對吧？我們和世界這個地區的任何人一樣有很多知識來覆蓋我們的模型。因此，以前的運營商，我們已經看到間距非常緊湊，在幾個區域中每個部分有 7 到 10 口井，並且對完井設計的刺激不足。這是隨著當前運營商在不到 2 年前的接管而演變的，他們開始轉向更寬的間距，一些增加的完井設計和強度。我們在那裡看到了一些進展。

They've also started very recently moving to what we've done over the last couple of years on artificial lift and removing gas lift and just going straight to ESPs. So we see a lot of opportunities to overlay our model just like we've done with Primexx and see the benefits over time. So you put that all together with -- Great Rock that's here, this is going to be an asset that's squarely competing for capital going forward.

他們最近也開始轉向我們過去幾年在人工舉升和移除氣舉方面所做的工作，並直接轉向 ESP。因此，我們看到了很多機會來覆蓋我們的模型，就像我們對 Primexx 所做的那樣，並隨著時間的推移看到好處。因此，您將所有這些與這裡的 Great Rock 放在一起，這將成為一種資產，可以直接競爭未來的資本。

Your next question comes from Neal Dingmann with Truist Securities.

你的下一個問題來自 Truist Securities 的 Neal Dingmann。

Joe, again, congrats I think the deals look good. My first question is maybe just comments around the creativeness of the deal. Can you walk through how maybe you and Kevin think about the future free cash of the new deal versus the existing that you're selling? And also, I assume part of that plays into the large amount of future feet that you now have to be drilled on this new acreage as well? If you could maybe hit both of those.

喬，再次恭喜，我認為這些交易看起來不錯。我的第一個問題可能只是關於交易創造性的評論。你能談談你和凱文如何看待新交易的未來自由現金與你正在出售的現有現金嗎？而且，我假設其中一部分會影響您現在必須在這片新土地上鑽探的大量未來英尺？如果你能同時擊中這兩個。

Yes, let me make sure I'm answering the right thing there, Neal. Could you just quickly let me -- say that one more time. We were having a little bit of hard time hearing you. I apologize.

是的，讓我確保我在那裡回答正確的事情，尼爾。你能不能快點讓我再說一遍。我們聽你講話有點困難。我道歉。

I'm sorry. Yes, just on the deal, I mean, there's always with existing assets, existing free cash flow that you're selling with those Eagle Ford assets? And just how that compares with -- when you look at the free cash flow with the new deal, I mean knowing that it didn't have given production. And then where I was going with that second part of that is knowing that the deal also has a large amount of undeveloped inventory that's with more feet to be drilled. So I'm just wondering if you could maybe hit both the free cash flow of the 2, how those compare and the deal being sold, the deal being bought and then the future feet being drilled.

對不起。是的，就交易而言，我的意思是，總是有現有資產，現有的自由現金流，你要用這些 Eagle Ford 資產出售？以及與 - 當您查看新交易的自由現金流時，我的意思是知道它沒有提供生產。然後我要處理的第二部分是知道這筆交易還有大量未開發的庫存，需要鑽更多的腳。所以我只是想知道你是否可以同時打擊 2 的自由現金流，這些比較如何以及正在出售的交易，正在購買的交易以及正在鑽探的未來腳。

Yes. I guess, got it. A couple of things that I'll address there. One is like if you look at the assets, just sort of in a vacuum, right, in terms of their profile. What's great about this asset we're acquiring and typically with private equity-backed type of companies, we will see a lot of drilling and maybe some steeper declines. This is not the case here. We see PDP declines around low 30%, which is depending on what point in time you look at our Eagle Ford similar, maybe even a little bit better, depending on the timing there.

是的。我想，明白了。我將在那裡解決一些問題。一個就像你看資產，就他們的個人資料而言，就像在真空中一樣。我們正在收購的這項資產有什麼好處，通常是私募股權支持的公司，我們會看到大量的鑽探活動，也許還會出現一些更陡峭的下跌。這裡不是這種情況。我們看到 PDP 下降了 30% 左右，這取決於你在什麼時間點看我們的 Eagle Ford 相似，甚至可能好一點，這取決於那裡的時間。

So you have that nice base of PDP production helping you out on the free cash flow side. Obviously, both assets in the Eagle Ford or with this new position in the Delaware, they have attractive inventory to develop, so they get their share of development dollars. So from a free cash flow standpoint, they're somewhat similar on the baseline PDP, but we're going to have more opportunities for development on a longer-term basis in this new Delaware asset just because our Eagle Ford inventory was getting a little bit short.

因此，您擁有良好的 PDP 生產基礎，可以幫助您解決自由現金流方面的問題。顯然，無論是在 Eagle Ford 的資產還是在特拉華州的這個新位置，他們都有有吸引力的庫存可供開發，因此他們獲得了開發資金的份額。因此，從自由現金流的角度來看，它們在基準 PDP 上有些相似，但我們將在這個新的特拉華州資產中獲得更多的長期發展機會，因為我們的 Eagle Ford 庫存有所增加有點短。

But that's in a vacuum. So if you move to putting this asset base into our model, right, in a more consolidated critical mass of Permian activity, there's just -- there's efficiencies that we're going to get in improved free cash flow from being able to do that on a more streamlined basis going forward. So there's some pickups in terms of synergies that add to that baseline of shallower declines on the PDP.

但那是真空。因此，如果你開始將這個資產基礎放入我們的模型中，正確的，在二疊紀活動的更鞏固的臨界質量中，只是 - 我們將通過能夠做到這一點來提高自由現金流的效率一個更精簡的基礎向前發展。因此，在協同作用方面有一些回升，增加了 PDP 較淺下降的基線。

Yes. Great color. And then -- I really appreciate that. And then my second question, just on shareholder return. I know early in the plan, my question, Joe for you or Kevin, I know you're always currently looking to keep your options open, but just any thoughts on how large you believe the shareholder return maybe should initially be or how that should grow. Again, I don't want to pin you down yet, but maybe just your Kevin's thoughts on how you're thinking about what would make sense.

是的。很棒的顏色。然後——我真的很感激。然後是我的第二個問題，關於股東回報。我在計劃的早期就知道，我的問題，Joe 替你或 Kevin，我知道你目前一直在尋求保持你的選擇權，但只是關於你認為股東回報最初應該有多大或應該如何的任何想法生長。再說一次，我不想讓你失望，但也許只是你的凱文對你如何思考有意義的事情的想法。

Yes. Thanks, Neal, it's Kevin. So at this point, we have a 2-year period of time authorized once this deal closes, so that would run through the second quarter of 2025, and that's a $300 million program. We haven't set quarterly targets for a percentage of free cash flow or allocation percentages. The magnitude of the time in each quarter is going to depend on free cash flow, commodity prices, stock price, et cetera. So we're trying to have some retain some optionality here to create shareholder value the best way we see to use that free cash flow.

是的。謝謝，尼爾，我是凱文。因此，在這一點上，一旦交易完成，我們將獲得為期 2 年的授權，這將持續到 2025 年第二季度，這是一個 3 億美元的計劃。我們沒有為自由現金流或分配百分比設定季度目標。每個季度的時間長短將取決於自由現金流、商品價格、股票價格等。因此，我們試圖在這裡保留一些可選性，以我們認為使用自由現金流的最佳方式創造股東價值。

I would give you some additional guidelines here we expect to pursue the additional $400 million of debt paydown to reach that $1.5 billion number and do that side-by-side with that 2-year $300 million share repurchase program. I guess I'd offer one other point of data here. I would say, in the mid- to low 70s, WTI oil price. There's more than enough cash flow to cover both the share repurchase objectives and the debt paydown over that 2-year period of time.

我會在這裡給你一些額外的指導方針，我們希望追加 4 億美元的債務償還以達到 15 億美元的數字，並與 2 年 3 億美元的股票回購計劃同時進行。我想我會在這裡提供另一點數據。我會說，在 70 年代中低點，WTI 油價。有足夠的現金流來支付股票回購目標和 2 年期間的債務償還。

No, I love the optionality Thanks, Kevin. Thanks, Joe. Congrats, again.

不，我喜歡這種可選性，謝謝，凱文。謝謝，喬。恭喜，再次。

Your next question comes from Derrick Whitfield from Stifel.

您的下一個問題來自 Stifel 的 Derrick Whitfield。

Congrats on your transformative transactions. With regard to the acquisition, could you speak -- I think you guys referenced earlier some degree of activity, but could you maybe outline current activity on the asset today and your plans to integrate it within the portfolio and the degree of synergies you see with the acquisition?

祝賀您的變革性交易。關於收購，你能說說嗎——我想你們早些時候提到了某種程度的活動，但你能否概述一下目前資產的當前活動以及你將其整合到投資組合中的計劃，以及你看到的協同效應程度收購？

Yes. So today, we'll be stepping in, we're going to do some completions as the year rolls on. They've moved -- they've taken down their rigs. There's no -- there's not going to be current activities as we step in, which is good, right? So it allows us to direct activity in our development model the way we want. A lot of times, that's not the case. So we're starting with a bit of a clean slate, but we are going to have a chance to employ our completion designs on some of the activity that we're stepping into.

是的。所以今天，我們將介入，隨著時間的推移，我們將完成一些工作。他們已經搬家了——他們已經拆除了鑽井平台。沒有 - 當我們介入時不會有當前的活動，這很好，對吧？所以它允許我們以我們想要的方式在我們的開發模型中指導活動。很多時候，情況並非如此。所以我們從一個乾淨的平台開始，但我們將有機會在我們正在進行的一些活動中使用我們的完成設計。

Moving forward, it's hard to just discreetly point out where the synergies are. Like again, it goes with the broader model as we go in and really try to optimize the combined development program. But I think you get a sense of that certainly from the free cash flow per share, an absolute pickup going forward, but the flexibility and scheduling, employing our learnings and models does go a long way. And I think we've shown those synergies to a large degree with the Primexx transaction over the last couple of years.

展望未來，很難謹慎地指出協同作用在哪裡。同樣，當我們進入並真正嘗試優化組合開發程序時，它與更廣泛的模型一起使用。但我認為你肯定會從每股自由現金流中感受到這一點，這是一個絕對的回升，但靈活性和日程安排，採用我們的學習和模型確實有很長的路要走。我認為我們在過去幾年中通過 Primexx 交易在很大程度上展示了這些協同效應。

Terrific. And then with regard to the acquisition, could you just speak to how it came together? And if it was your or the seller's preference for Callon stock?

了不起。然後關於收購，你能談談它是如何走到一起的嗎？如果這是您或賣家對 Callon 股票的偏好？

Yes. A lot of these deals come together over many, many months. Certainly, when you have 2 pieces of the puzzle, it takes a lot of time. So that's a whole another side bar conversation. But these are assets that we've kept an eye on for a long period of time going back to when they originally were sold by Ford. So we know this area quite well. And then we have been thinking about what is the best way to approach an acquisition as Callon today and achieve all of our objectives as we talk about the financial side, start thinking about the Eagle Ford and how that fits into the mix.

是的。很多這樣的交易都是在很多很多個月的時間裡完成的。當然，當你有 2 塊拼圖時，會花費很多時間。所以這是另一個邊欄對話。但這些是我們長期以來一直關注的資產，可以追溯到它們最初被福特出售的時候。所以我們非常了解這個領域。然後我們一直在思考什麼是今天收購 Callon 的最佳方式，並在我們談論財務方面時實現我們的所有目標，開始考慮 Eagle Ford 以及它如何融入組合。

So this is something we've been percolating on for quite some time and it took a long time to get here, but it's great that we're here. On the equity side, it was a clear ask out of the sellers that they wanted some upside here, right? They have other opportunities to sell for all cash. But it was clear, and it took some time to get our head around that just given where we're trading. But given the accretion we saw in this transaction and also overlaying this mechanism that we hope that the stock performs well between now and closing, we'll be able to claw back some of those shares as well.

所以這是我們已經滲透了很長一段時間的東西，花了很長時間才到達這裡，但我們來到這裡真是太好了。在股票方面，賣家明確要求他們希望這裡有一些上漲空間，對嗎？他們還有其他機會出售所有現金。但很明顯，考慮到我們的交易地點，我們花了一些時間來解決這個問題。但鑑於我們在此次交易中看到的增長以及我們希望該股票從現在到收盤之間表現良好的這一機制，我們也將能夠收回其中的一些股票。

Your next question comes from Phillips Johnston with Capital One.

你的下一個問題來自 Capital One 的 Phillips Johnston。

Just one for me. It looks like the rig count on percussion properties has trended down from around 3 or so at this time last year to 1 as of a few months ago, and the production does seem to have kind of leveled off over the last 6 to 9 months or so. So I'm guessing the PDP decline rate on the properties isn't super high. But can you maybe talk about how these 2 transactions will affect your company-wide 12-month PDP decline rate?

只給我一個。看起來打擊樂器的鑽機數量從去年這個時候的大約 3 台左右下降到幾個月前的 1 台，而且在過去的 6 到 9 個月裡產量似乎已經趨於平穩，或者所以。所以我猜測這些屬性的 PDP 下降率不是很高。但您能否談談這兩筆交易將如何影響您公司範圍內的 12 個月 PDP 下降率？

Yes. You're right. The activity has been coming down and it has helped to shallow out the PDP decline profile. Right now somewhere in the low 30s, which is somewhat where we are as a company, maybe even a little bit better. So overall, it's neutral to maybe a slight benefit to overall corporate decline.

是的。你說得對。活動一直在下降，這有助於緩和 PDP 的下降趨勢。現在在 30 多歲的某個地方，這在某種程度上是我們作為一家公司所處的位置，甚至可能更好一點。因此，總的來說，它可能對整體企業衰退有輕微好處，這是中性的。

Next question comes from Paul Diamond with Citi.

下一個問題來自花旗的 Paul Diamond。

Congratulations on the transaction. I just wanted to touch base quickly on some of the efficiency gains you've seen in your drilling program over the course of the last 18, 24 months. How does the -- I guess how does the kind of repositioning away from Eagle forward into -- primarily into Permian? Do you see any kind of step change in that trend? Or should we expect that to kind of continue on path?

恭喜成交。我只是想快速談談您在過去 18、24 個月中在鑽井計劃中看到的一些效率提升。如何 - 我猜想如何從 Eagle 重新定位到 - 主要進入二疊紀？您是否看到該趨勢有任何階躍變化？還是我們應該期望這種情況會繼續下去？

Yes. Generally speaking, it's been absolutely outstanding performance, both on the drilling and completion side. The teams are never satisfied. So what we do is we take a look at what we call the perfect well. So we apply a limit or theory where we break down each individual component of the drilling and completions, everything from starting and moving the equipment in to how we turn the wells online and connect into the facilities and flow lines. So we anticipate this new acreage that we have coming in, which has been developed very nicely. We'll integrate extremely well into the things that we do well. So we would anticipate -- I can't stand here hand on heart and say we'll see another 20% in the next 6 months, but we're extremely proud of the performance that we've had and the results speak for themselves.

是的。總的來說，無論是在鑽井還是完井方面，它的表現都非常出色。團隊永遠不會滿足。所以我們要做的是看看我們稱之為完美的井。因此，我們應用一個限製或理論來分解鑽井和完井的每個單獨組件，從啟動和移動設備到我們如何將油井在線並連接到設施和流水線。因此，我們預計我們將進入這個新的土地，該土地的開發非常好。我們會非常好地融入我們擅長的事情。所以我們預計 - 我不能站在這裡說我們將在未來 6 個月內再看到 20%，但我們對我們的表現感到非常自豪，結果不言自明.

Understood. And just a quick kind of housekeeping one. As far as your hedging strategy, does this transaction really shift any of that kind of 30,000-foot strategy? Or should we expect that to really continue on path?

明白了。只是一種快速的家務管理。至於你的對沖策略，這筆交易真的改變了那種 30,000 英尺的策略嗎？或者我們應該期望它真的繼續前進嗎？

Yes. So thanks. That's a good question. Our strategy hasn't changed, which is really we kind of are targeting around a 30% WTI hedging over the next 12 months on a rolling basis. Right now, we did inherit or will inherit some hedges from their book, which will take us closer to high 20s on a hedged basis for the back half of the year, and we are currently in the 17%, 18%, 19% range on that hedging. So we gained some incremental hedges from them, but it doesn't take us over the level we view as our strategy, which is that 30% of next 12 months WTI.

是的。那謝謝啦。這是個好問題。我們的策略沒有改變，實際上我們的目標是在未來 12 個月內滾動對沖約 30% 的 WTI。現在，我們確實繼承了或將繼承他們賬簿中的一些對沖，這將使我們在今年下半年的對沖基礎上接近 20 多歲，我們目前處於 17%、18%、19% 的範圍內對沖。因此，我們從他們那裡獲得了一些增量對沖，但這並沒有使我們超過我們認為的戰略水平，即未來 12 個月 WTI 的 30%。

Your next question comes from Fernando Zavala with Pickering Energy Partners.

你的下一個問題來自 Pickering Energy Partners 的 Fernando Zavala。

Just a quick one for me. So pro forma for the deals, do you see any material changes to your cash tax status heading forward?

對我來說只是一個快速的。那麼對於這些交易的備考，您是否看到您的現金稅收狀況在未來有任何重大變化？

Yes. It's a good question. And the answer is we're still sticking with our original guidance for cash taxes for 2023, and that is $5 million to $15 million guidance, which we offered on the Q4 call. No change from either of these 2 transactions, no additional limitations or NOLs or et cetera.

是的。這是個好問題。答案是我們仍然堅持我們在第四季度電話會議上提供的 2023 年現金稅的最初指導，即 500 萬至 1500 萬美元的指導。這兩個交易中的任何一個都沒有變化，沒有額外的限製或 NOL 等等。

Okay. Great. And then just another one, a follow-up on your comments around the low single-digit production growth. Is that similar on oil and equivalent? Or is it weighted to one or the other?

好的。偉大的。然後是另一個，跟進你對低個位數產量增長的評論。石油和等價物是否相似？或者它是加權到一個或另一個？

Pretty similar. We're stepping into asset base with 70-plus percent oil, which is relatively similar to Eagle Ford. So no meaningful changes there.

很相似。我們正在以 70% 以上的石油進入資產基礎，這與 Eagle Ford 相對相似。所以那裡沒有有意義的變化。

Your next question comes from Tim Rezvan with KeyBanc.

您的下一個問題來自 KeyBanc 的 Tim Rezvan。

First one, maybe for Kevin. When we think about the net cash proceeds, I guess, it's $390 million, is there any tax leakage we should be baking in? Is it -- or anything else that would affect net balance?

第一個，也許是給凱文的。當我們考慮淨現金收益時，我猜是 3.9 億美元，我們是否應該考慮漏稅？是——還是其他任何會影響淨餘額的事情？

Sorry. So I think I heard you say -- it's about $310 million of kind of net cash that will be applicable to paying off the RBL as a result of this transaction and no cash tax leakage here.

對不起。所以我想我聽到你說 - 大約 3.1 億美元的淨現金將適用於支付 RBL 由於這項交易而沒有現金稅洩漏。

Okay. $310 million is the net amount.

好的。淨額為 3.1 億美元。

Yes, after share price adjustment.

是的，在股價調整後。

Okay. And then my follow-up, I guess more for Joe. In the past, and our discussions with investors, some of the hesitancy from buying Talon shares kind of stem from the frequency and size of acquisitions that you've undergone. And as you think about coming up on the close on this in July, I guess what's the new message to investors about the willingness or appetite for future deals now that you've transformed the portfolio like you have?

好的。然後我的後續行動，我想更多的是喬。在過去，以及我們與投資者的討論中，購買 Talon 股票的一些猶豫源於你進行的收購的頻率和規模。當你考慮在 7 月結束時，我猜想，既然你已經像現在這樣改變了投資組合，那麼投資者對未來交易的意願或胃口有什麼新信息？

Look, I think we've shown over the last couple of years, we are very focused on our financial objectives, and this is a very important step that we're taking here. But we figured out creative ways to, number one, find assets that are going to compete for capital and benefit from our overall methodology. We'll continue to look for opportunities to overlay our model and add value to asset bases paying reasonable prices. I think every company should be looking for opportunities like that.

看，我認為我們在過去幾年中已經表明，我們非常專注於我們的財務目標，這是我們在這裡邁出的非常重要的一步。但我們想出了創造性的方法，第一，找到將要爭奪資本並從我們的整體方法中受益的資產。我們將繼續尋找機會覆蓋我們的模型，並以合理的價格為資產基礎增加價值。我認為每家公司都應該尋找這樣的機會。

I think it will ultimately add value, but we have to be realistic, and we're going to be very selective just given the quality of the inventory we have. It's a high bar to find assets like that. And then certainly, how do we finance these items. I mean this is a pretty unique situation in terms of having the Eagle Ford be a source of proceeds here. So we don't have another Eagle Ford position. I guess it's a long way of saying we'll be very smart about it. We're obviously laser-focused on continued debt reduction and now share returns. But we're in the business of looking for opportunities to step into positions and add value as an operator that's done that in the past.

我認為它最終會增加價值，但我們必須現實一點，考慮到我們擁有的庫存質量，我們將非常有選擇性。找到這樣的資產是一個很高的標準。當然，我們如何為這些項目融資。我的意思是，就 Eagle Ford 成為這裡的收益來源而言，這是一個非常獨特的情況。所以我們沒有另一個 Eagle Ford 職位。我想說我們會對此非常聰明是很長的路要走。我們顯然非常專注於持續減少債務，現在分享回報。但我們正在尋找機會進入職位並作為過去做過的運營商增加價值。

Okay. Okay. I appreciate that. And congratulations on the deal. It's really a pretty impressive transformation.

好的。好的。我很感激。並祝賀這筆交易。這真是一個令人印象深刻的轉變。

There are no further questions at this time. I would now like to turn the call back over to Joe for closing remarks.

目前沒有其他問題。我現在想將電話轉回給 Joe 以作結束語。

Thank you, everyone, for joining. Hopefully, we've been able to provide you a lot of detail on a transaction that we're very excited about here. I think checks all the boxes for what we've been talking about with you all over the last couple of years, frankly, to get to this point. So we're all excited. I'm sure we'll be talking more going forward. And as always, please let us know if you have any more questions. Thanks again.

謝謝大家的加入。希望我們能夠為您提供很多關於我們在這裡非常興奮的交易的細節。坦率地說，我想勾選過去幾年我們一直在與您討論的所有方框，以達到這一點。所以我們都很興奮。我相信我們以後會談得更多。和往常一樣，如果您有任何問題，請告訴我們。再次感謝。

This concludes today's conference call. You may now disconnect.

今天的電話會議到此結束。您現在可以斷開連接。