Callon Petroleum Co (CPE) 2023 Q3 法說會逐字稿

Ladies and gentlemen, thank you for standing by. Welcome to Callon Petroleum's Third Quarter Earnings Conference Call. (Operator Instructions) Just as a reminder, today's conference call is being recorded. (Operator Instructions)

女士們先生們，謝謝你們的支持。歡迎參加卡倫石油公司第三季財報電話會議。 （操作員說明）謹此提醒，今天的電話會議正在錄音。 （操作員說明）

I would now like to turn the call over to Callon's CFO, Kevin Hangar. Please go ahead, sir.

我現在想將電話轉給 Callon 的財務長 Kevin Hangar。請繼續，先生。

Thanks, operator, and good morning, everyone. Apologies. We had a little hiccup with the link to the webcast. I think we're now all in, and there will be a recording afterwards. So we appreciate your interest in Callon. With me today are our CEO, Joe Gatto; and our COO, Russell Parker. We will happily take your questions at the end of our prepared remarks. We will reference our third quarter earnings release and supplemental slides, which are available on our website under the Investors tab.

謝謝接線員，大家早安。道歉。我們在網路廣播連結方面遇到了一些問題。我想我們現在已經全部投入了，之後會有錄音。感謝您對 Callon 的興趣。今天與我在一起的是我們的執行長 Joe Gatto；以及我們的營運長拉塞爾·帕克 (Russell Parker)。我們很樂意在準備好的發言結束時回答您的問題。我們將參考我們的第三季財報發布和補充投影片，這些投影片可以在我們網站的「投資者」標籤下找到。

Today's call will also 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, which we believe 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 our earnings press release, both of which are available on our website.

今天的電話會議還將包括涉及估計和計劃的前瞻性陳述。由於我們的簡報和 SEC 文件中指出的風險因素，實際結果可能會存在重大差異。我們也將參考一些非公認會計準則財務指標，我們認為這些指標有助於促進跨時期以及與同業的比較。對於任何引用的非公認會計準則衡量標準，我們會在投影片和收益新聞稿的附錄中提供與最接近的相應公認會計準則衡量標準的調節表，這兩者都可以在我們的網站上找到。

With that, I will now turn the call over to Joe.

這樣，我現在會把電話轉給喬。

Thank you, Kevin. Good morning, everyone. Cowen posted solid results for the third quarter, marking our 14th consecutive quarter of adjusted free cash flow generation, cash flow that we are using to reduce debt and repurchase our shares. Our corporate priorities are clear. We are focused on maximizing free cash flow, aggressively driving down our cost structure, reducing absolute debt and returning cash to owners through our share buyback program.

謝謝你，凱文。大家，早安。 Cowen 公佈了第三季的穩健業績，標誌著我們連續第 14 個季度實現調整後的自由現金流生成，我們利用現金流來減少債務和回購股票。我們公司的優先事項很明確。我們專注於最大化自由現金流、積極降低成本結構、減少絕對債務並透過股票回購計畫向所有者返還現金。

I'll divide today's call into 3 segments. First, I'll summarize third quarter financial and operating results. Overall, it was a good quarter with total production and key operating costs in line with expectations and capital investments below guidance. However, we did experience some headwinds related to our near-term oil production, which I will address shortly.

我將今天的通話分成三個部分。首先，我將總結第三季的財務和營運表現。總體而言，這是一個良好的季度，總產量和主要營運成本符合預期，資本投資低於指引。然而，我們確實遇到了一些與近期石油生產相關的阻力，我很快就會解決這個問題。

Second, I'll cover our unrelenting focus on safely driving cost out of the system and creating sustainable operational efficiencies. Our focus on financial and operational cost controls is producing impressive gains, and we'll pay increasing dividends into 2024 in terms of both free cash flow generation and lower breakeven prices for our Permian inventory.

其次，我將介紹我們對安全降低系統成本和創造永續營運效率的不懈關注。我們對財務和營運成本控制的關注正在產生令人印象深刻的收益，並且我們將在2024 年之前支付越來越多的股息，無論是在自由現金流生成方面還是在二疊紀庫存的較低損益平衡價格方面。

Next, I want to spend a bit of time on the sustainable benefits of our life of field co-development model. This is an ongoing and proven development process that maximizes the long-term value of inventory, where real-time learnings are then applied to future capital investments. We continue to see well productivity at Callon as moving counter to industry trends. However, we recognize that we need to continue to optimize that model over time with new information in order to properly balance near-term returns with longer-term opportunities.

接下來，我想花一些時間來談談我們的現場共同開發模式的可持續效益。這是一個持續且經過驗證的開發過程，可最大限度地提高庫存的長期價值，然後將即時學習應用於未來的資本投資。我們仍然認為 Callon 的良好生產力與產業趨勢背道而馳。然而，我們認識到，我們需要隨著時間的推移繼續利用新資訊來優化該模型，以便正確平衡近期回報與長期機會。

Lastly, I will conclude with some early thoughts on 2024. Our recent efficiency gains in both drilling and completions are expected to be sustainable and will allow us to maximize value in 2024 through the enhancement of 2 key financial metrics, capital efficiency and free cash flow conversion of EBITDA.

最後，我將對2024 年提出一些初步想法。我們最近在鑽井和完井方面的效率提升預計將是可持續的，並使我們能夠通過提高資本效率和自由現金流這兩個關鍵財務指標，在2024 年實現價值最大化EBITDA 的轉換。

Let's get started with third quarter results. For the third quarter, total production averaged 102,000 BOE per day. Oil sales averaged about 58,000 barrels per day. The shortfall in oil volumes is related to 2 key factors: first, the extreme temperatures and related power and midstream issues we experienced in July, which we discussed on the Q2 call, continued into August and September in the Delaware Basin, especially in our oil areas like Delaware East. Power outages impacted our electrical submersible pump program and reduced expected order volumes due to downtime days as well as the time to ramp the ESPs back to normal operating levels.

讓我們從第三季的業績開始。第三季的平均總產量為每天 102,000 桶油當量。石油銷售量平均每天約 58,000 桶。石油量的短缺與兩個關鍵因素有關：首先，我們在7 月經歷的極端氣溫以及相關的電力和中游問題（我們在第二季度電話會議上討論過），在特拉華盆地持續到8 月和9 月，特別是在我們的石油領域特拉華東部等地區。停電影響了我們的電動潛水泵計劃，並由於停機天數以及將 ESP 恢復到正常運行水平的時間而減少了預期訂單量。

The second factor is related to oil production from recent multi-zone projects in the Delaware West, our most gas-weighted area. About 1/2 of our third quarter turn in lines or 15 of the 33 were in Delaware West. While total production on a BOE basis from recent completions was relatively in line with expectations, gas-to-oil ratios were much higher than expected. The commodity mix from these wells will also have an impact on our fourth quarter oil volumes.

第二個因素與特拉華州西部（我們天然氣比重最大的地區）最近的多區項目的石油產量有關。我們第三季排隊的大約 1/2 或 33 條線路中的 15 條是在特拉華州西部。雖然近期完工的以京油當量計算的總產量相對符合預期，但天然氣與石油的比率遠高於預期。這些油井的商品組合也將對我們第四季的石油產量產生影響。

As an additional note, we recently accelerated a change in our Delaware Basin artificial lift program that was previously slated to start in 2024 to improve uptime performance. This program will incorporate an increasing proportion of gas lift installs relative to ESPs over time to reduce production downtime from power and weather events, lower workover expense and enhanced longer-term resource recovery.

另請注意，我們最近加快了特拉華盆地人工舉升計劃的變更，該計劃此前定於 2024 年啟動，以提高正常運行時間性能。隨著時間的推移，該計劃將增加氣舉安裝相對於 ESP 的比例，以減少電力和天氣事件造成的生產停機時間、降低修井費用並增強長期資源回收。

In the fourth quarter, we do see some negative impact to production as compression-related equipment is procured and installed in areas where nearby gas lift installations don't fully exist. With the program up and running this quarter and firmly incorporated into our planning process, we don't expect to see this timing issue going forward.

在第四季度，我們確實看到了對生產的一些負面影響，因為壓縮相關設備是在附近氣舉裝置不完全存在的地區採購和安裝的。隨著該計劃於本季度啟動並運行並牢固地納入我們的規劃流程，我們預計未來不會再出現此時間問題。

Overall, we expect fourth quarter oil production in the range of 56,000 to 59,000 barrels per day, with total production in the range of 100 to 103 BOE per day, comprised of approximately 79% liquids. As part of our fourth quarter activity, we expect to turn 14 gross wells in line in the fourth quarter in our oilier areas, the Delaware East and Midland Basin, which will benefit our 2024 mix. Our forecasted capital investments for both full year and fourth quarter 2023 remain unchanged, despite an increase in drilling and completion activity driven by improving cycle times that I will hit upon in a minute.

總體而言，我們預計第四季度石油產量將在每天 56,000 至 59,000 桶之間，總產量將在每天 100 至 103 桶油當量之間，其中約 79% 為液體。作為我們第四季活動的一部分，我們預計第四季度將在特拉華東部和米德蘭盆地等含油地區投入 14 口總井，這將有利於我們 2024 年的組合。儘管由於週期時間的改善而導致鑽井和完井活動增加，但我們對 2023 年全年和第四季度的資本投資預測保持不變，我稍後會提到這一點。

This clearly demonstrates the cost efficiencies we are realizing today. The corollary to the cost and capital efficiencies we are experiencing is that we are improving our rate of conversion of EBITDAX to adjusted free cash flow. In today's deck, we show how this conversion has increased throughout the year.

這清楚地表明了我們今天所實現的成本效率。我們所經歷的成本和資本效率的必然結果是，我們正在提高 EBITDAX 到調整後自由現金流的轉換率。在今天的簡報中，我們展示了這種轉換率在全年中的成長。

A few additional points to highlight. G&A costs are now lower as a result of focusing the business solely on the Permian and streamlining our organizational structure. We are creating sustainable efficiencies across the business that will lead to improved results in future periods. We generated nearly $50 million in adjusted free cash flow this quarter. This gave us the flexibility to kick off our share repurchase program and opportunistically increase working interest in upcoming projects through several land initiatives.

還有幾點要強調。由於將業務僅集中在二疊紀盆地並精簡了我們的組織結構，現在的一般管理費用較低。我們正在整個業務範圍內創造可持續的效率，這將導致未來時期業績的改善。本季我們產生了近 5000 萬美元的調整後自由現金流。這使我們能夠靈活地啟動股票回購計劃，並透過多項土地計劃機會性地增加對即將開展的項目的工作興趣。

We are laser-focused on reducing absolute debt and strengthening our capital structure. At quarter end, total long-term debt was approximately $1.9 billion, down more than $300 million from the period -- prior period. Our outlook for higher free cash flows in the fourth quarter will allow us to keep on pace with reducing debt and buying back additional stock through year-end.

我們專注於減少絕對債務和加強我們的資本結構。截至季末，長期債務總額約 19 億美元，較上一時期減少 3 億多美元。我們對第四季度自由現金流增加的預期將使我們能夠在年底前保持減少債務和回購額外股票的步伐。

We have benefited from recent acquisitions and are now a Permian-focused oil and gas company with scale. We added quality assets in the Permian and extended our runway of high-return long-lateral development locations. In terms of our recent Delaware acquisition, our first 5-well project is currently coming online, and we are encouraged by early time oil production rates and wellhead pressures. We will keep you updated on progress here.

我們從最近的收購中受益，現在是一家專注於二疊紀的具有規模的石油和天然氣公司。我們在二疊紀增加了優質資產，並擴展了高回報長期開發地點的跑道。就我們最近在特拉華州的收購而言，我們的第一個 5 井項目目前正在上線，我們對早期石油生產率和井口壓力感到鼓舞。我們將在這裡隨時向您通報最新進展。

We have materially strengthened our balance sheet and implemented a cash return program for shareholders. We plan to use up to 40% of our adjusted free cash flow to repurchase shares in the fourth quarter. While we are focused on reducing absolute debt, we see buying back our shares at today's valuation as a very attractive use of cash flow.

我們大幅加強了資產負債表，並為股東實施了現金回報計畫。我們計劃在第四季度使用最多 40% 的調整後自由現金流來回購股票。雖然我們專注於減少絕對債務，但我們認為以今天的估值回購股票是一種非常有吸引力的現金流利用方式。

We have strengthened our leadership team and redesigned our operating teams. Our new COO, Russell Parker, is leaving no stone unturned as he assesses our business and benchmark our performance against industry. He is making an impact, applying has years of experience to safely enhance operational practices, lower costs and create sustainable synergies to drive future performance. I know it is eager to share some additional highlights and talk about his team some more during our Q&A.

我們加強了領導團隊並重新設計了營運團隊。我們的新任營運長 Russell Parker 在評估我們的業務並將我們的業績與行業進行比較時不遺餘力。他正在發揮影響力，運用多年的經驗來安全地增強營運實踐、降低成本並創造可持續的協同效應，以推動未來的績效。我知道它渴望在我們的問答中分享一些額外的亮點並更多地談論他的團隊。

But as a start, early operational wins include: one, we are materially reducing days versus depth through the elimination of casing strings, which decreases cycle times and enhances project returns. Each of our developments going forward will have a fit-for-purpose casing design, tailored to maximize value. We've provided a couple of examples of this on Page 7 of the presentation materials. Reductions in cost per lateral foot are being realized through the optimization of drill bits and the ability to drill long laterals.

但首先，早期營運的勝利包括：第一，我們透過消除套管柱，大幅減少了天數與深度，從而縮短了周期時間並提高了專案回報。我們未來的每一個開發項目都將採用適合用途的外殼設計，旨在實現價值最大化。我們在演示材料的第 7 頁上提供了幾個這方面的範例。透過優化鑽頭和鑽長支管的能力，可以降低每支管英尺的成本。

On the completion side, we've increased completed lateral feet per day by as much as 20%, and we're seeing repeatable efficiencies and pumping rates and hours pumped per day. The combined impact of these realized improvements are driving overall performance into year-end. We now anticipate to complete approximately 50,000 more lateral feet and commenced drilling an incremental 5 wells relative to our midyear forecast. This additional activity will benefit 2024 production, all while staying within our existing budget. These accomplishments have been realized in a very short period of time after we've revamped our operations in recent months. This has demanded a tremendous amount of effort, and I want to thank the entire organization for making this possible.

在完井方面，我們每天已完成的側腳增加了 20%，並且我們看到了可重複的效率、泵送速率和每天泵送時間。這些已實現的改進的綜合影響正在推動年底的整體業績。與我們年中的預測相比，我們現在預計將完成大約 50,000 橫向英尺並開始鑽探增量 5 口井。這項額外活動將有利於 2024 年的生產，同時不超出我們現有的預算。這些成就是我們在近幾個月改進營運後在很短的時間內實現的。這需要付出巨大的努力，我要感謝整個組織讓這一切成為可能。

Let me shift gears and discuss our life of field co-development model. This thoughtful approach to development has been constantly evolving over the past 5 years. It differentiates us from our peers and our well productivity is performing counter to industry. We have learned a great deal about interactions between our codeveloped zones and associated well spacing and placement. This continuous learning provides the foundation for ongoing tailoring of projects to maximize returns.

讓我換個話題來討論一下我們的現場共同開發模式。這種深思熟慮的開發方法在過去五年中不斷發展。它使我們與同行區分開來，我們的油井生產力表現與行業相反。我們對共同開發區域之間的相互作用以及相關的井距和佈局有了很多了解。這種持續學習為持續調整專案以實現最大回報奠定了基礎。

For example, our recent co-development in our Delaware South area demonstrated that our deepest target zone could be developed separately over time, allowing us to reduce overall project sizes and cycle times as well as reduced facility investments. This continuous improvement is critical to maximizing our NPV proposition.

例如，我們最近在特拉華州南部地區的共同開發表明，我們最深的目標區域可以隨著時間的推移單獨開發，從而使我們能夠減少整體專案規模和週期時間，並減少設施投資。這種持續改進對於最大化我們的 NPV 主張至關重要。

Let me wrap up today's call by providing some of our early thoughts around 2024. Consistent with prior practice, look for formal guidance from us early next year. First, we will continue to focus on maximizing free cash flow. Our top cash flow priorities are to fund our high-value developments, reduce debt and repurchase shares. We believe that allocating capital appropriately across these buckets will drive improvements in our cost of capital. We will continue to be very disciplined with our capital investments. With recent efficiency gains in drilling, completion and facilities, we expect to do more with less in 2024 and forecast average DC&F cost per well to be down over 15% versus 2023.

讓我透過提供我們對 2024 年左右的一些早期想法來結束今天的電話會議。與之前的做法一致，請在明年初尋求我們的正式指導。首先，我們將繼續專注於最大化自由現金流。我們現金流的首要任務是為我們的高價值開發提供資金、減少債務和回購股票。我們相信，在這些領域適當分配資本將推動我們資本成本的改善。我們將繼續嚴格控制我們的資本投資。隨著近期鑽井、完井和設施效率的提高，我們預計 2024 年將實現事半功倍，並預測每口井的平均 DC&F 成本將比 2023 年下降 15% 以上。

In addition, ongoing high-grading of investments within our co-development model will allow us to target lower investment rates to enhance free cash flow. Our production trajectory in '24 will benefit from pulling forward more drilling and completion activity than initially planned as we are improving cycle times in the second half of this year as well as the return of a second completion crew early in the next year.

此外，我們的共同開發模式中持續的高評級投資將使我們能夠瞄準較低的投資率，以增強自由現金流。我們 24 年的生產軌跡將受益於比最初計劃更多的鑽探和完井活動，因為我們正在改善今年下半年的周期時間以及明年初第二支完井人員的返回。

In terms of our early thoughts on 2024 production outlook, increases in activity to drive top line growth will be secondary to drive an improved capital efficiency, as we prioritize debt reduction and share repurchases. I'll also point out that we expect our oil mix to improve over the coming quarters as we focus on high-return oil areas in the Delaware and Midland Basins. We will remain nimble as our 2024 program progresses, and we'll evaluate increases in our activity to the extent we achieve DC&F reductions in excess of our original plan, similar to what we've done in the second half of this year.

就我們對 2024 年生產前景的早期想法而言，推動營收成長的活動增加將次於推動提高資本效率，因為我們優先考慮債務削減和股票回購。我還要指出，我們預計未來幾季我們的石油結構將得到改善，因為我們專注於特拉華州和米德蘭盆地的高回報石油地區。隨著 2024 年計劃的進展，我們將保持靈活性，並且我們將評估我們活動的增長情況，以達到 DC&F 削減量超出原計劃的程度，類似於我們在今年下半年所做的事情。

We appreciate your investment in our company, and we look forward to taking your questions. Operator?

我們感謝您對我們公司的投資，並期待回答您的問題。操作員？

(Operator Instructions) Our first question comes from Neal Dingmann with Truist Securities.

（操作員指示）我們的第一個問題來自 Truist Securities 的 Neal Dingmann。

Joe, my first question, maybe kind of get right to it, maybe for Russell. Just you talked about some 15% reductions and just really highlighting completion drilling, there's just a lot of things. I'd love to hear straight from Russell just when he looks at '24, where he thinks a lot of these savings potentially could come from?

喬，我的第一個問題，也許是針對拉塞爾的。剛才您談到了大約 15% 的減少，並且真正強調了完井鑽井，有很多事情。我很想直接聽聽 Russell 在談到 24 時的看法，他認為這些節省的大部分可能來自哪裡？

And I appreciate the question. And actually, we already started to see some of this come to fruition as we modify our casing strength. It's going to be a different mix of savings across the portfolio, probably the way it will shake out, we take 15% plus on average per well DC&F. And the way that breaks out, it's about a 15% on average savings on the drilling side, about a 5% average on the completion side and about 50% savings on facilities. And really, what that all boils down as a little bit of cost of services. There is a little bit of that single digits, 3% to 5%, depending upon which input you're talking about.

我很欣賞這個問題。事實上，當我們改變外殼強度時，我們已經開始看到其中的一些結果。整個投資組合將採用不同的節省組合，可能會採用不同的方式，我們平均每口井 DC&F 節省 15% 以上。就突破而言，鑽井方面平均節省約 15%，完井平均節省約 5%，設施方面平均節省約 50%。事實上，這一切都歸結於一點點服務成本。其中有一點個位數，3% 到 5%，取決於您所討論的輸入。

But really, the big change is coming from shifting from kind of a standard mindset, a standard way of doing things to a fit for purpose. So we're looking at each individual location and looking at where we can reduce casing streams, reduce hole sizes, run our bit program and our bit life much longer than what we have been potentially drilling with conventional tools instead of rotary steerables. And in some places, we actually save money doing that and we can keep the tools in the whole longer.

但實際上，巨大的改變來自於從標準思考方式、標準做事方式到適合目標的轉變。因此，我們正在研究每個單獨的位置，並研究在哪裡可以減少套管流、減小孔尺寸、運行我們的鑽頭程序以及我們的鑽頭壽命比我們使用傳統工具而不是旋轉導向器進行鑽探的鑽頭壽命要長得多。在某些地方，我們這樣做實際上可以節省資金，並且可以將工具保留更長時間。

And then on the facility -- on the completion side, a lot of that savings is coming from sand. That's not unique to Callon. Now some of the logistics is -- are unique to Callon. That's the bulk of where we see that savings coming from. We think we could probably stretch a little bit further on the completion side even as we go into 2024, and that will be our goal. As we look to increase our pump rates, potentially complete 2 pads at the same time. We're throwing a lot of ideas out there. We're going to let the team really stretch their legs, really kind of push the envelope of engineering excellence to help reduce those costs.

然後在設施方面——在竣工方面，大部分節省都來自沙子。這並不是卡倫獨有的。現在，有些物流是卡倫獨有的。這是我們看到的大部分節省的來源。我們認為，即使進入 2024 年，我們也可能在完成方面做得更進一步，這將是我們的目標。當我們希望提高泵速時，可能會同時完成 2 個墊。我們提出了很多想法。我們將讓團隊真正大展身手，真正突破卓越工程的極限，以幫助降低這些成本。

And then on the facility side, it's really, once again, it's fit for purpose. So we've spent a good deal of money over the years with our life of field model, building up an infrastructure of equipment and flow lines and tank batteries, what have you. We're pulling out of the point where we can actually, one, start harvesting less of that equipment, but two, also look at maybe building our on-pad facilities a little bit differently, using more [bulk lines] and trunk lines, integrating gas lift systems that while it takes a little time to get together, actually, over time, will save us money.

然後在設施方面，它確實再次符合目的。因此，多年來我們在現場模型壽命方面花費了大量資金，建立了設備基礎設施、流線和坦克電池，等等。我們正在脫離這樣的境地，我們實際上可以，一，開始收集更少的設備，但二，也可以考慮以稍微不同的方式建造我們的墊上設施，使用更多的[散裝線]和乾線，集成氣舉系統雖然需要一點時間來組裝，但實際上，隨著時間的推移，將為我們節省金錢。

So it's a large combination of the projects. If you had about 4 hours, I'd love to take you through all of it, but we don't have that kind of time today, but -- and a whole lot of folks working on it. But basically, that fit-for-purpose design versus just taking a standard.

所以這是一個大型專案的組合。如果您有大約 4 個小時，我很樂意帶您完成所有內容，但我們今天沒有這樣的時間，但是 - 還有很多人在努力。但基本上，適合目的的設計與僅僅採用標準不同。

Great details, Russ. And then definitely will take you up on that and love your more some time offline. And then Joe, my second question is just on capital allocation. I'm just wondering what would be the primary drivers or what is the primary drivers would you and Kevin decide that now on a go forward lean into the buybacks versus allocate a bit more on the growth side?

很棒的細節，拉斯。然後肯定會帶你去做這件事，並在離線時更愛你。然後喬，我的第二個問題是關於資本配置。我只是想知道主要驅動因素是什麼，或者您和凱文會決定現在繼續進行回購而不是在成長方面分配更多資金嗎？

Yes. Look, we've talked about the 3 buckets that we have in terms of adding value, clearly investing in the asset base in a disciplined way, the first stop. But we are very focused on debt reduction, we put goals out there. We're serious about getting to them and also following through on our share repurchase program. So we have a lot of efficiencies that Russell's talked about here, not only from a cost perspective, but also from cycle times, but we are going to be cognizant. We don't want those efficiencies to drag us to higher reinvestment rates.

是的。看，我們已經討論了我們在增值方面的 3 個部分，明確以嚴格的方式投資於資產基礎，這是第一站。但我們非常關注減少債務，我們設定了目標。我們非常認真地對待他們，並繼續執行我們的股票回購計劃。因此，我們有拉塞爾在這裡談到的許多效率，不僅從成本角度，而且從週期時間角度，但我們會認識到。我們不希望這些效率拖累我們提高再投資率。

So by focusing on high-grading our opportunity set going forward, we can find a nice balance in between there to deliver high-return projects, keep our reinvestment rates in check, have more free cash flow to deliver to incremental debt reduction and share repurchases.

因此，透過專注於未來的高評級機會集，我們可以在交付高回報項目、控制再投資率、擁有更多自由現金流以實現增量債務削減和股票回購之間找到良好的平衡。

Our next question comes from Zach Parham with JPMorgan.

我們的下一個問題來自摩根大通的紮克·帕勒姆。

First, could you give us a little more color on what you're seeing from those gassier wells in the Delaware West area? Maybe add some thoughts on how you think about future development in that area? Do these well results change kind of how you think about your inventory that you have remaining over there?

首先，您能給我們更多關於您從特拉華州西部地區那些含氣量較高的井中看到的情況嗎？也許可以添加一些關於您如何看待該領域未來發展的想法？這些油井結果是否會改變您對那裡剩餘庫存的看法？

Sure. I'll take that question. The Delaware West particularly has been our gassiest part of our portfolio. That's nothing new. That's no real surprise. The good news is we have a lot of places to invest money going forward too. So as Joe has alluded to, we're going to look at, one, how we're designing, spacing, completing, landing and developing the property with a lower cost structure going forward in order to continue to maximize value. And then also in the near term, our other assets, the East and the Midland Basin, obviously, will help pull up that oil mix as we're going forward.

當然。我來回答這個問題。特拉華州西部尤其是我們投資組合中氣體最多的部分。這不是什麼新鮮事。這並不奇怪。好消息是我們未來還有很多地方可以投資。因此，正如喬所提到的，我們將考慮，第一，我們如何以較低的成本結構設計、間隔、完成、落地和開發房產，以繼續實現價值最大化。然後，在短期內，我們的其他資產，東部和米德蘭盆地，顯然將有助於在我們前進的過程中提高石油結構。

And I think specifically on the Delaware West project, we said we had a lot higher GOR ratios than we expected. I think some of that is attributed to -- look, it's an active area around us over time. So some of that activity most likely led to some depletion effects in that area. But there are lessons learned from that project going forward. We still think Delaware West is an attractive area. But with co-developments that we've got to evolve over time. So we're probably putting a few more less -- or sorry, a few less sticks in the deeper zones in the Wolfcamp B and C would be one thing that we take away from that.

我認為特別是在特拉華州西部項目上，我們說我們的 GOR 比率比我們預期的要高得多。我認為其中一些歸因於——看，隨著時間的推移，這是我們周圍的一個活躍區域。因此，其中一些活動很可能導致該區域出現一些消耗效應。但從該項目中可以吸取教訓。我們仍然認為特拉華州西部是一個有吸引力的地區。但隨著共同開發，我們必須隨著時間的推移而發展。所以我們可能會少放一些——或者抱歉，在 Wolfcamp B 和 C 的較深區域少放一些木棍將是我們從中拿走的一件事。

But overall, Delaware Western area will be back to over time. Part of our program with scale development is to rotate our projects, because we're not overtaxing infrastructure, leverage the infrastructure we have in place, and there's very similar returns across the portfolio for different reasons. But hopefully, that gives you a sense of where we're heading from Delaware West, but there's certainly some takeaways there that we're incorporating in our designs going forward.

但總體而言，特拉華州西部地區將隨著時間的推移而回歸。我們規模開發計畫的一部分是輪換我們的項目，因為我們不會對基礎設施造成過度負擔，充分利用我們現有的基礎設施，而且由於不同的原因，整個投資組合的回報非常相似。但希望這能讓您了解我們從特拉華州西部出發的方向，但我們肯定會在未來的設計中融入一些要點。

Got it. And then maybe just following up on Neal's question. You've talked a lot about cost reductions on DCF. Can you give us any sense of what 2024 CapEx might look like if costs play out the way that you think they will? Should we be thinking about a similar number of turn in lines next year and CapEx is just simply 15% lower year-over-year? Or is it more complicated than that?

知道了。然後也許只是跟進尼爾的問題。您已經談論了很多關於 DCF 成本降低的問題。如果成本按照您的預期發展，您能否告訴我們 2024 年的資本支出會是什麼樣子？我們是否應該考慮明年類似的線路週轉次數，而資本支出只是比去年同期降低 15%？或比這更複雜？

Yes, Zach, we wanted to give you the building blocks here, certainly around DCF average well costs. But I said the cycle time element is really critical here in terms of how we plan out for next year. Obviously, we have a good pathway into the beginning of the year with getting a jump start on activity into the first quarter from the savings we've had in '23. But yes, it is more complicated than just taking down 15%. We do want to be mindful, as I said, around reinvestment rates. We could -- with everything that we've shown in recent months on the drilling side and completion side, that allows us to go faster in general.

是的，扎克，我們想在這裡為您提供構建模組，當然是圍繞 DCF 平均井成本。但我說過，就我們明年的計畫而言，週期時間因素確實至關重要。顯然，我們在年初有一個良好的途徑，從 23 年節省下來的資金中，第一季的活動將快速啟動。但是，是的，這比僅僅減少 15% 更複雜。正如我所說，我們確實希望注意再投資率。我們可以——憑藉近幾個月來我們在鑽井和完井方面所展示的一切，這使我們總體上能夠走得更快。

But we're going to moderate our investments appropriately to balance all of our free cash flow objectives. So we'll be able to fill in the holes here in the next couple of months, but certainly, I wanted to give you some of the building blocks going into next year, again, being lower DC&F per well, improved cycle times and a good trajectory going into the beginning of Q4 with some oil-weighted projects.

但我們將適當調整我們的投資，以平衡我們所有的自由現金流目標。因此，我們將能夠在接下來的幾個月內填補此處的漏洞，但當然，我想再次為您提供一些進入明年的構建模組，即降低每口井的 DC&F、改進的循環時間和一些以石油為主的項目進入第四季初的良好軌跡。

Our next question comes from Oliver Huang with TPH.

我們的下一個問題來自 TPH 的 Oliver Huang。

Joe, Kevin and Russell. Certainly, good to see the incremental detail around a lot of the cost initiatives that you all been working around and I mean, 15% is certainly a meaningful number. But maybe just kind of a follow-up to Neal's earlier question. How immediate are these savings? Is that something that we'd expect to start in full force at the beginning of 2024? I know you all have already made headway on that to date. Or is that something that we should expect to kind of layer in a bit more gradually?

喬、凱文和拉塞爾。當然，很高興看到你們一直在努力的許多成本計劃的增量細節，我的意思是，15% 肯定是一個有意義的數字。但也許只是尼爾之前問題的後續。這些節省有多直接？我們預計這會在 2024 年初全面啟動嗎？我知道到目前為止你們都已經在這方面取得了進展。或者說我們應該預期這種情況會逐漸分層？

It's already happening now. And I'd say, as we get into Q1, we should be in the neighborhood of already realizing that, hopefully, definitely averaging us through the year, maybe even beating it as the year goes on, depending -- of course, depends on where commodity prices and service rates are. But to that point, and Joe mentioned it earlier, we've got extra projects that we're actually drilling and completing this year, about 50,000 extra lateral feet, another handful of wells that we're going to spud in '23 that were not in our anticipated budget at midyear. These projects are going to add production in Q4.

現在已經發生了。我想說，當我們進入第一季時，我們應該已經意識到，希望肯定能平均我們全年的表現，甚至可能隨著時間的推移而超越它，這取決於——當然，取決於商品價格和服務費率在哪裡。但就這一點而言，喬之前提到過，我們今年實際上正在鑽探和完成額外的項目，大約 50,000 額外的側向英尺，我們將在 23 年開鑽的另一口井不在我們年中的預期預算中。這些項目將在第四季度增加產量。

So obviously, Q1, you won't see them in Q4, adding production next year. But we're able to do that and still stay within our original budget. And the reason is we're already starting to realize some of these cost saves. I don't think we're not quite to the 15% range yet, maybe single digits, because obviously one of the biggest cost savings, which is going to take time to layer into that facility piece. That one is going to be more Q2, 3, 4. But the par on the D and the C side, where we're already starting to see, come to fruition now, actually.

顯然，第一季度，你不會在第四季度看到他們明年增加產量。但我們能夠做到這一點，並且仍然保持在原來的預算範圍內。原因是我們已經開始意識到其中一些成本節省。我認為我們還沒有完全達到 15% 的範圍，也許是個位數，因為顯然這是最大的成本節省之一，這需要時間來分層到該設施部分。那個將更多地是 Q2、3、4。但是 D 和 C 方面的標準，我們已經開始看到，實際上現在已經實現了。

Awesome. That's helpful. And maybe another follow-up just with respect to the facility side. Would such a change, that you all are kind of talking about, impact the expected production trajectory of well productivity? Is it more so along the lines of just kind of constraining IPs a little bit more to avoid overbuilding of the facilities? Or is it more so along the lines of just kind of using stuff that's already existing?

驚人的。這很有幫助。也許還有一個關於設施方面的後續行動。你們都在談論的這種變化會影響油井產能的預期生產軌跡嗎？是否更多是為了避免設施過度建設而對 IP 進行更多限制？或者更多的是沿著使用已經存在的東西的方式？

It's using things that are existing, in some places, yes, you might actually see a lower IP30 but similar IP90. That's part of the ways in which we're saving some money. If you build everything for an IP30, your cost structure is higher. However, if you look at your rate of return, it's better building towards an IP90. So over the year, you wouldn't see it maybe on an exact well in an exact month, you might see a different peak.

它使用現有的東西，在某些地方，是的，您實際上可能會看到較低的 IP30 但類似的 IP90。這是我們省錢的方法之一。如果您為 IP30 建立一切，您的成本結構會更高。然而，如果您考慮回報率，最好朝著 IP90 方向發展。因此，在一年中，您可能不會在某個特定的月份在特定的井上看到它，您可能會看到不同的峰值。

But if you were looking at a quarter of publicly available data, no, I don't think you'd see the difference and you'd probably see more stable production over time. The other place -- in some places, some of the design changes we're talking about will actually help eliminate or reduce back pressure, which will actually improve -- potentially improve some of our production on the base.

但如果你查看四分之一的公開數據，不，我認為你不會看到差異，而且隨著時間的推移，你可能會看到更穩定的生產。另一個地方——在某些地方，我們正在談論的一些設計變化實際上將有助於消除或減少背壓，這實際上會改善——可能會改善我們基地的一些生產。

Awesome. And if I could squeeze just one more in with respect to the Q4 guide. Obviously, a downward revision there. But just wanted to see, is there any sort of breakout in terms of what could be attributed to the less oil than expected from the subset of wells that came out of the West area within the quarter versus just incremental downtime from accelerating some of the optimization that you're doing on the artificial lift side?

驚人的。如果我能再擠一點關於第四季指南的話。顯然，那裡有向下修正。但只是想看看，本季西部地區部分油井的石油產量低於預期，與加速某些優化而增加的停機時間相比，是否會出現任何突破你在人工舉升方面做什麼？

Yes. The large majority will be from what we highlighted at Delaware West.

是的。絕大多數將來自我們在特拉華西部強調的內容。

Our next question comes from Derrick Whitfield with Stifel.

我們的下一個問題來自 Stifel 的 Derrick Whitfield。

Congrats on the structural improvements you've outlined this quarter.

恭喜您本季概述的結構性改進。

Thanks, Derrick.

謝謝，德里克。

Starting with a follow-up on the Delaware West development. I wanted to ask if you could lean in on the learn lessons? And specifically, does the higher GOR indicate greater vertical connectivity to the lower Wolfcamp zones or simply a gassier upper Wolfcamp based on past depletion from (inaudible) development?

從特拉華西部開發的後續行動開始。我想問你是否可以學習課程？具體來說，較高的 GOR 是否表明與較低的 Wolfcamp 區域有更大的垂直連通性，或者只是基於過去（聽不清楚）開發的消耗而產生了一個氣體含量較高的較高 Wolfcamp 區域？

So I'd say that the generic learning is you've got to make sure you're doing a great job, taking into account not what happen on your acreage, but offset acreage. We're projecting that into the future, looking at how that regional depletion may impact you going forward. And then also looking at how your spacing needs to be appropriately designed or redesigned in order to optimize your capital investment going forward. There's still plenty to do there. But yes, a lot of what it may involve is in order to maximize NAV, because you're dealing with a little bit lower reservoir pressure as we're talking about wells with larger completions, specifically space further apart, actually optimizes your NAV when you're seeing that.

所以我想說，一般的學習是你必須確保你做得很好，不要考慮你的面積上發生的事情，而是考慮抵消面積。我們正在對未來進行預測，研究區域資源枯竭可能會對您的未來產生怎樣的影響。然後也要考慮如何適當設計或重新設計您的間距，以優化您未來的資本投資。那裡還有很多事情要做。但是，是的，它可能涉及的許多內容是為了最大化資產淨值，因為當我們談論完井較大的井時，您正在處理稍微低一點的油藏壓力，特別是間隔更遠的井，實際上可以優化您的淨值你看到了。

But that's really, I'd say, the key learning from this is looking at bench-by-bench, what is the appropriate spacing, looking bench-by-bench to see which wells are communicating with what, where you have local geologic features, where you have localized increased depletion from offset operators to make sure that you're optimizing your capital going forward.

但我想說的是，從中學到的關鍵是逐個台階地觀察，合適的間距是多少，逐個台階地觀察哪些井與什麼井連通，哪裡有當地的地質特徵，您已局部化來自抵消運營商的消耗增加，以確保您正在優化未來的資本。

And Russell, kind of looking forward with that development in that area, do you think you'll have enough data kind of post this set, post assessment to have a good feel for what spacing should be as you guys look to develop that out in 2024 and 2025.

拉塞爾，有點期待這個領域的發展，你認為你會有足夠的數據來發布這組數據，進行評估後對間距應該有一個很好的感覺，因為你們希望在2024 年和 2025 年。

Absolutely. Well, not only are we looking at fit for purpose on the DC&F side, but we've actually really started to unlock some of the other team members as we change our structure and really take into account and analyze quite a bit more data than we have in the past as a company. We're actually doing a lot of exciting things around machine learning and predictions and reservoir simulation to help us improve the accuracy of our models and really have a good handle on how you can iterate on different spacing, different landing, which how many individual wells and what completion time it takes to optimize NAV per bench, which business we see are communicating with one another.

絕對地。好吧，我們不僅在尋找適合 DC&F 方面的目標，而且隨著我們改變結構並真正考慮和分析比我們多得多的數據，我們實際上已經開始釋放其他一些團隊成員。過去作為一家公司。實際上，我們圍繞著機器學習、預測和油藏模擬做了很多令人興奮的事情，以幫助我們提高模型的準確性，並真正很好地掌握如何在不同的間距、不同的平台、有多少個單獨的井上進行迭代。以及優化每個工作台的資產淨值需要多長時間，我們看到哪些業務正在相互溝通。

We've been doing some exciting experiments actually to figure out fluid typing and actually being able to really see what zones are communicating with what other zones by doing what's called like a fluid fingerprint. So absolutely, it's an incredible focus of our technical team, not only in this space, but everywhere, because the same learning -- or the same process can be used to help you optimize your NAV all your assets.

我們一直在做一些令人興奮的實驗，實際上是為了弄清楚流體打字，並且實際上能夠透過所謂的流體指紋來真正看到哪些區域正在與其他區域進行通訊。所以絕對，這是我們技術團隊令人難以置信的焦點，不僅在這個領域，而且在任何地方，因為相同的學習或相同的過程可以用來幫助您優化所有資產的資產淨值。

I'm going to work on your side. One final, if I could, just on Page 8. Looking out into 2024, could you speak to how impactful 3-mile lateral development could be in your operational plan?

我會在你身邊工作。最後，如果可以的話，就在第 8 頁。展望 2024 年，您能否談談 3 英里橫向開發對您的營運計畫有何影響？

Sorry, you said, how impactful 3-mile lateral.

抱歉，你說，3 英里橫向行駛的影響有多大。

Correct. Yes.

正確的。是的。

Yes. Well, part of what we wanted to show there was actually not only just record lateral, but record time, which the first time saves money. In terms of how many locations we'll have next year, that will be 3 miles, but we're still working on our budget and figuring that out. I'd say probably the P50 answers that we're still drilling 350, 10,000-foot wells. But we are looking for places where we could extend that wherever possible. As matter of fact in one particular location, we couldn't even drill a straight 15,000-foot hole.

是的。好吧，我們想要展示的部分內容實際上不僅是記錄橫向，還有記錄時間，這第一次可以省錢。至於明年我們將擁有多少個地點，這將是 3 英里，但我們仍在製定預算並弄清楚這一點。我想說，P50 可能會回答我們仍在鑽探 350 口、10,000 英尺的井。但我們正在尋找可以盡可能擴展這一點的地方。事實上，在某個特定位置，我們甚至無法直接鑽出 15,000 英尺深的孔。

So we -- but we drilled basically, if you will, like an L-shape well almost or well with a bend in it in order to, one, optimize depletion of the reservoir dealing with these situations that we had, the acreage situation that we had, our footprint, but also thereby maximizing our returns. So we're going to be looking at that. We're going to be looking at U-shaped wells. We're going to look at a lot of different concepts in order to optimize our NAV but also kind of opening our lines to all within the art of the possible in terms of well shape, landing, length and time to depth.

所以我們——但是我們基本上鑽探，如果你願意的話，就像一個L形井或帶有彎曲的井，目的是，第一，優化儲層的消耗，處理我們遇到的這些情況，面積情況我們擁有我們的足跡，但也因此最大化了我們的回報。所以我們將對此進行研究。我們將研究 U 形井。我們將研究許多不同的概念，以優化我們的淨值，同時也在井的形狀、著陸、長度和深度時間方面向所有可能的藝術領域開放我們的生產線。

Our next question comes from Scott Hanold with RBC Capital Markets.

我們的下一個問題來自加拿大皇家銀行資本市場的史考特漢諾德。

And hopefully, this hasn't been asked yet. I've been just jumping around to a couple of calls that are going on. But just in terms of what you all saw in the Delaware West and what you're learning there. Can you talk about like your asset base just more at large? Is there other areas that have regional [position] or spacing that is something you'll be cognizant of? Or is this -- is this more Delaware West specific? And can you talk about where Delaware West fits into your, like, overall inventory and activity levels moving forward?

希望這還沒被問到。我只是忙著接聽正在進行的幾個電話。但就你們在特拉華州西部所看到的以及你們在那裡學到的東西而言。您能更廣泛地談談您的資產基礎嗎？是否還有其他區域具有您會意識到的區域[位置]或間距？或者這是特拉華州西部更具體的情況嗎？您能否談談特拉華州西部在您未來的整體庫存和活動水平中的位置？

So I'd say, going forward into next year, I see we're probably going to be more heavily weighted in the East and in the Midland Basin. However, we do already have some slated projects in South and West. And honestly, you can map this, we've actually made some cool little movies about it, little videos. Regional pressure decline is real in all benches within the Permian. If anybody tells you that it's not, then they're not looking at the data. That doesn't mean you can't make money, however. That just means you got to take it into account when you're building your development plans and as you continue to learn and modify your development plans.

所以我想說，展望明年，我認為我們在東部和米德蘭盆地的權重可能會更大。然而，我們確實已經在南部和西部有一些預定的項目。老實說，你可以繪製這個，我們實際上製作了一些關於它的很酷的小電影，小影片。在二疊紀盆地的所有長凳中，區域壓力下降都是真實存在的。如果有人告訴你事實並非如此，那麼他們就沒有查看數據。然而，這並不意味著你不能賺錢。這只是意味著您在製定開發計劃以及繼續學習和修改開發計劃時必須考慮到這一點。

So I think, look, the process and what we learned in the Delaware West is something that you can apply everywhere. Do you see that same level of pressure decline all throughout the Permian, no, it's specific by bench, it's specific by area depth, which portion of the country that you're in. So it's not a blanket answer, which again is why I kind of come back to when you're developing your asset, the same thing for Callon. You want to do a fit-for-purpose design, because not each area is seeing a similar phenomenon, but not at the same level ought the same degree, not the same -- not at the same with every bench, right? You don't see it, because maybe the reservoirs that start out with the same in-situ GOR and start out with the same historical -- our geologic history and diagenesis. So there's all sorts of reasons that produce different results, but the process and the learnings we can apply everywhere.

所以我認為，看，這個過程以及我們在特拉華州西部學到的東西可以應用到任何地方。你是否看到整個二疊紀的壓力下降水平相同？不，這是根據長凳具體的，根據區域深度具體的，你所在的國家的哪個部分。所以這不是一個籠統的答案，這又是為什麼我回到你開發資產的時候，卡倫也是。你想做一個適合目的的設計，因為不是每個區域都看到類似的現象，但不是在同一水平，應該是相同的程度，不是相同的——不是每個長凳都相同，對嗎？你看不到它，因為也許儲層以相同的原位 GOR 開始，並以相同的歷史 - 我們的地質歷史和成岩作用開始。因此，有各種各樣的原因會產生不同的結果，但我們可以在任何地方應用這個過程和學習的知識。

In terms of, yes, where I see us spending money or where we see ourselves spending money, definitely a lot of -- probably more weighted to the Delaware East and Midland asset in '24. We do still have projects still in the South and in the West and then we're working on some things longer term to make the investment opportunity even more exciting in those basins, those part of our assets, but more to come on that. That's the teaser for next year.

就我而言，是的，我認為我們在哪裡花錢，或者我們自己在哪裡花錢，絕對是很多——可能對 24 年特拉華東部和米德蘭資產的權重​​更大。我們在南部和西部仍然有項目，然後我們正在做一些長期的事情，以使這些盆地、我們資產的一部分的投資機會更加令人興奮，但還會有更多的項目。這是明年的預告片。

Okay. More specifically to that answer then, and you talked about that everything is kind of a region specific to a certain extent, and you got to fit to design to that area. Do you all feel you have a pretty good handle on that moving forward? Or is there still some learning -- is 2024 is still going to be a partial learning year? Or do you feel good about where you're entering the year and setting those expectations?

好的。更具體地說，對於這個答案，你談到一切在某種程度上都是特定於某個區域的，你必須適應該區域的設計。你們都覺得自己對這件事有很好的把握嗎？還是仍需學習－2024 年仍是部分學習年嗎？或者您對進入這一年並設定這些期望感到滿意嗎？

Well, one, we feel good about where we are. But two, I think you're always learning. We should learn on each and every path. So I wouldn't say we've never stopped learning and never expect to stop learning or modifying, tweaking and improving. If the organization does that, you kind of dial in -- you dial in on the line. But no, I think we feel good about where we are, where our current set of expectations are. We feel good about what we've learned.

嗯，第一，我們對自己所處的位置感覺良好。但第二，我認為你總是在學習。我們應該在每一條道路上學習。所以我不會說我們從未停止學習，也從未期望停止學習或修改、調整和改進。如果組織這樣做，你就可以撥入——你在線上撥入。但不，我認為我們對自己所處的位置以及當下的期望感到滿意。我們對所學到的東西感覺很好。

And then all that said, from here, we look to try to improve and improve and improve. And again, you never -- and actually, this is a new focus on the team. We review each completion at the time of [AAP]. We reviewed each completion 2 weeks before we actually complete it (inaudible). And with each pad, each field where each business unit is working on little tweaks, little design implement, little things that we're learning from ourselves, from offset operators that will notch out another 3%, 4% rate of return. Just like when it was in the slide deck you saw, there were couple of little things you could do, add 3, 4%, 5%, 6%, 7%, 8%.

儘管如此，從這裡開始，我們希望嘗試改進、改進、改進。再說一遍，你永遠不會——事實上，這是團隊的新焦點。我們在 [AAP] 時審核每項完成情況。我們在實際完成之前兩週對每個完成情況進行了審查（聽不清楚）。對於每個墊片，每個業務部門正在努力進行的每個領域的小調整，小設計實施，我們從自己身上學習的小東西，從膠印運營商那裡學習的小東西，這些東西將獲得另外3 %、4% 的回報率。就像您在幻燈片中看到的那樣，您可以做一些小事情，添加 3%、4%、5%、6%、7%、8%。

Well, same thing happens with completion design. Same thing happens with (inaudible) landing and spacing. Same thing happens with your role texture cost structure. And all of a sudden, you take inventory that might have been 20% rate of return, you're making at 40% or 50%. It takes a lot of effort to get you there, but that's going to be an ongoing process. But I'd say generally, we feel good about where we are, but I don't expect us to stop learning, we should always keep learning and always keep modifying.

嗯，竣工設計也會發生同樣的情況。 （聽不清楚）著陸和間隔也會發生同樣的情況。同樣的事情也會發生在你的角色紋理成本結構上。突然間，您的庫存回報率可能為 20%，而您的利潤率為 40% 或 50%。你需要付出很多努力才能到達那裡，但這將是一個持續的過程。但我想說的是，一般來說，我們對自己所處的位置感覺良好，但我不希望我們停止學習，我們應該不斷學習，不斷修改。

Understood. And Joe, this one might be for you. I mean, obviously, you guys are very focused on getting the operations where they need to be, getting the cost down. I mean that's obviously priority #1, but certainly, consolidation has become extremely topical here over the last few months. You guys have -- yourselves have been involved in it for a number of years as well. Can you talk about the thoughts on Callon and where it's on sort of consolidation where you'd like to see the company over the next few years?

明白了。喬，這可能適合你。我的意思是，顯然，你們非常專注於讓營運達到所需的水平，降低成本。我的意思是，這顯然是第一要務，但毫無疑問，在過去的幾個月裡，整合已經成為這裡非常熱門的話題。你們自己也參與其中很多年了。您能談談對 Callon 的想法以及您希望在未來幾年看到該公司正在進行的整合嗎？

Yes, Scott, I'll hit that at a high level. I mean, obviously, we've seen a lot of consolidation of assets and some corporate activity out there. That shouldn't be all that surprising anyone who's been around this business that happens over time, not only as people pursue inventory. But with this latest iteration, obviously, cost of capital for this industry has gone up and largely speaking, bigger companies are afforded a better cost of capital.

是的，斯科特，我會以高水準做到這一點。我的意思是，顯然，我們已經看到了大量的資產整合和一些企業活動。任何從事這一行業的人都不會感到驚訝，這種情況隨著時間的推移而發生，而不僅僅是當人們追求庫存時。但顯然，隨著最新的迭代，這個行業的資本成本已經上升，而且在很大程度上，更大的公司可以獲得更好的資本成本。

So we're laser-focused on what's happening around us. And as we said, we've actively participated in that in shapes and forms over time. I think we have to be nimble and make sure that we're positioned to participate in the right way consolidation and that boils down to 2 things. One is having a robust inventory, the strong economics, which we have and a good balance sheet that's improving, which we have. And that gives you options across the spectrum moving forward.

因此，我們高度關注周圍發生的事情。正如我們所說，隨著時間的推移，我們以各種形式積極參與其中。我認為我們必須保持靈活性，確保我們能夠以正確的方式參與整合，這可以歸結為兩件事。一是擁有強勁的庫存、強勁的經濟狀況，以及正在改善的良好資產負債表。這為您提供了各種向前發展的選擇。

Our next question comes from Paul Diamond with Citi.

我們的下一個問題來自花旗銀行的保羅·戴蒙德（Paul Diamond）。

A couple of quick ones for me. In the prepared remarks, you guys talked about some learnings around deeper zone being able to be developed separately from other benches. Just wondering if you can provide a bit more color there?

對我來說有幾個快速的。在準備好的發言中，你們談到了一些關於更深區域的學習，這些知識可以與其他板凳分開開發。只是想知道你是否可以在那裡提供更多的顏色？

We did an experiment earlier this year in which we fingerprinted, if you will, the fluid from a bunch of -- from all the different benches. And then we use that fingerprint along with several fluid samples in each of the wells in each bench that we took over time, to see which wells we're communicating with which wells over time. And it was very interesting, you'd see a different mix of communication from early in life to late life. But from that process, we could figure out which benches basically we're not communicating, which our outpart apart the well needs to be in which you really didn't see that communication, if not early time, but over the long term, meaning you have the opportunity to potentially develop those benches at a later date.

我們今年早些時候做了一個實驗，如果你願意的話，我們對來自所有不同長凳的一堆液體進行了指紋識別。然後，我們使用該指紋以及隨著時間的推移我們接管的每個工作台的每個井中的幾個流體樣本，以了解隨著時間的推移我們正在與哪些井進行通信。這非常有趣，從早年到晚年，你會看到不同的溝通方式。但從這個過程中，我們可以找出哪些長凳基本上我們沒有溝通，哪些是我們需要在井外的部分，你真的沒有看到這種溝通，如果不是早期的話，但從長遠來看，這意味著您以後有機會開發這些長凳。

So it's through a process of fluid fingerprinting quite detailed, and there's a couple of different companies that specialize in this, but that's how we've done it. And we're applicable, we may be -- a few more experiments where we get that kind of data again to help us better understand exactly what reservoirs are communicating with what reservoirs and of which pattern, because it also -- the order in which you develop the reservoirs will impact that, whether not you're drilling upper wells versus lower wells or lower well or suffer wells and which order they come in over time. So -- but that's how we did it. It was a fluid fingerprinting experiment.

因此，這是透過一個非常詳細的流體指紋識別過程，有幾家不同的公司專門從事這方面的工作，但這就是我們所做的。我們是適用的，我們可能是 - 進行更多的實驗，我們再次獲得此類數據，以幫助我們更好地了解哪些水庫正在與哪些水庫進行通信以及哪種模式，因為它也 - 順序你開發的油藏會影響這一點，無論你是鑽上部井還是下部井，還是下部井或受災井，以及隨著時間的推移它們的順序。所以——但我們就是這麼做的。這是一個流體指紋實驗。

Understood. Were there any geographic areas that was more focused in? Or is it pretty much the entire Permian?

明白了。是否有更關注的地理區域？還是它幾乎是整個二疊紀？

That particular experiment I'm referring to was in the South, but we may look at doing some similar experiments elsewhere in our acreage in '24.

我提到的那個特定實驗是在南方進行的，但我們可能會考慮在 24 年在我們的其他地區進行一些類似的實驗。

Understood. Just one quick follow-up. On Slide 8, you had some pretty interesting kind of trend data on spud to rig release, competitive laterals and D&C per lateral. Just wanted to get an idea of how you guys are viewing as those trends going forward into '24 and beyond? Should we assume somewhat linear or diminishing returns or just how you guys are thinking about that?

明白了。只需一個快速跟進。在投影片 8 上，您獲得了一些非常有趣的趨勢數據，涉及從樁到鑽機的釋放、競爭性支管以及每支管的 D&C。只是想了解你們如何看待 24 世紀及以後的這些趨勢？我們是否應該假設某種程度的線性或遞減回報，或者你們是如何看待這個問題的？

I think you'll see -- it will be a (inaudible) for sure. We're already realizing some of it. We're not to the end of the (inaudible) at all yet, I'd say. But with any program like this, as you look to make tweaks and look to make tweaks, kind of you hit your lowest-hanging fruit early, which may be say casing streams when we talk about well design, and then the more difficult tweaks come later, exact (inaudible) program, exact-fit program, all the other little pieces that will save time off, but maybe not as dramatically as say, eliminating a casing stream.

我想你會看到——這肯定是（聽不清楚）。我們已經意識到其中的一些。我想說，我們還沒結束（聽不清楚）。但是對於像這樣的任何程序，當您希望進行調整併希望進行調整時，您會儘早實現最容易實現的目標，這可能是當我們談論良好設計時的外殼流，然後更困難的調整來了後來，精確的（聽不清楚）程序，精確配合的程序，所有其他可以節省時間的小部件，但可能不像所說的那麼戲劇性，消除了套管流。

So I'd say we'll never stop trying. But obviously, in any design change, you always see the lowest hanging fruit first, which means you get your biggest impact first. That's why I said, I think we're already probably in that 10% savings range and end of the Q4, beginning Q1, looking at average 15% or better over the year. But as the year goes on, continue to tweak that and tweak, tweak that and tweak our science to find a little bit more. But yes, if you were to draw it out, it looks like an [asset], but you -- at the same time, if you are open-minded and fit for purpose, you'll always find something.

所以我想說我們永遠不會停止嘗試。但顯然，在任何設計變更中，您總是先看到最容易實現的目標，這意味著您首先獲得最大的影響力。這就是為什麼我說，我認為我們可能已經處於 10% 的節省範圍內，並且從第四季度末、第一季開始，全年平均節省 15% 或更好。但隨著時間的推移，繼續調整、調整、調整我們的科學，以找到更多的東西。但是，是的，如果你把它拿出來，它看起來像是一種[資產]，但你——同時，如果你思想開放並且適合目標，你總是會找到一些東西。

Our next question comes from Gabe Daoud with Cowen and Company.

我們的下一個問題來自 Cowen and Company 的 Gabe Daoud。

I was hoping, Joe, you could just go back to the comment around lower reinvestment rates. And I know you mentioned the goal of that is to better manage free cash initiatives. But just curious, how does that translate to top line growth? I think previously, you guys had mentioned maybe a 0% to 4% growth rate on production on an annual basis. So just curious then how does lower reinvestment rate equate to that number? I'm assuming maybe it's lower over time, but just curious to hear your thoughts.

喬，我希望你能回到關於降低再投資率的評論。我知道您提到其目標是更好地管理免費現金計劃。但只是好奇，這如何轉化為收入成長？我想之前你們曾經提到過產量的年增長率可能是 0% 到 4%。那麼只是好奇較低的再投資率如何等於這個數字？我假設隨著時間的推移它可能會降低，但只是想聽聽你的想法。

Yes, Gabe, Happy to take that. What I mentioned earlier going into '24, the priority is really going to be on capital efficiency and realizing all the things we've been talking here about in terms of DC&F costs, high-grading our asset base, improving cycle times. I think that will get us off to a good start, getting into '24. We'll obviously provide some more formal guidance as we move forward. But in the near term, we are prioritizing capital efficiency and cash flow versus any meaningful headline production growth. Now hopefully, we realize all these efficiencies, get going, hoping to do better. I think that's the time we look at adding some additional activity with reinvesting back in the asset base over time, but give us some time here to put all these things in motion.

是的，加布，很高興接受。我之前提到的，進入 24 世紀，首要任務實際上是提高資本效率，並實現我們在這裡討論的 DC&F 成本、高等級資產基礎、縮短週期時間等方面的所有內容。我認為這會給我們一個好的開端，進入 24 世紀。隨著我們的進展，我們顯然會提供一些更正式的指導。但在短期內，我們將優先考慮資本效率和現金流，而不是任何有意義的整體產量成長。現在希望我們意識到所有這些效率，開始行動，希望做得更好。我認為現在是我們考慮增加一些額外活動的時候了，隨著時間的推移，對資產基礎進行再投資，但請給我們一些時間來啟動所有這些事情。

Okay. Understood. And then I guess as a follow-up, you highlighted a lot of the, obviously, cost savings on the capital front. But just curious, you did another good job here on LOE. How does LOE trends into '24? And do you think there's more you could squeeze out of there?

好的。明白了。然後我想作為後續行動，您強調了資本方面的許多明顯的成本節約。但只是好奇，你在 LOE 上又做得很好。 LOE 的趨勢如何進入'24？你認為你還能從中擠出更多東西嗎？

I think our biggest opportunity on LOE long term is fixing our failure rate. Our failure -- ESPs account for about 5 days of our artificial lift -- that's where our highest value rate is. And that's probably the high -- the largest part of our expense structure, I'd say on the LOE front that has the opportunity -- some opportunity for improvement. That won't happen quickly. You don't change failure rate overnight or even in a quarter. That comes from a program change not only a fit-for-purpose artificial lift, but how you're optimizing the ESPs, what size they are, a whole host of what your surface facilities do in terms of maintaining electric power even when you're suffering power outages.

我認為從長遠來看，我們在 LOE 上最大的機會是解決我們的失敗率。我們的失敗——ESP 占我們人工舉升的大約 5 天——這就是我們的最高價值率。這可能是我們費用結構中最大的部分，我想說的是，在 LOE 方面，有機會改進。這不會很快發生。你不可能在一夜之間甚至一個季度內改變故障率。這來自於程序的改變，不僅是一個適合目的的人工舉升，還包括你如何優化 ESP、它們的大小、你的地面設施在維持電力方面所做的一切，即使你「正在遭受停電之苦。

So there's a whole host of things that you have to do there in order to improve that failure rate. But that portion of our spend is neighborhood $50 million a year. And it's all driven by the rate at which wells fail. So it will be a big focus of ours in '24 to try to widdle that down and see if over the next couple of years, we can't cut that in half or reduce it by 75%, ideally in time. But that's probably the biggest single opportunity.

因此，為了提高故障率，您必須做很多事情。但我們這部分的支出每年約 5000 萬美元。這一切都是由油井故障率驅動的。因此，我們 24 年的一大重點是嘗試解決這個問題，看看在接下來的幾年裡，我們是否不能將其減少一半或減少 75%，最好及時。但這可能是最大的機會。

Otherwise, what we're looking at structurally are some places in which we can improve our -- not only basically improve our chemical spend with some larger infrastructure projects that's going to take some time to implement. And of course, that's because we deal with sour gas, just like a lot of other people do in the Delaware Basin. I got a little bit of the Midland Basin, but not as prolific there. But I'd say those 2 areas are going to be our primary focuses on LOE. But don't take -- those will probably take longer to come to fruition.

否則，我們在結構上關注的是一些我們可以改進的地方，而不僅僅是基本上改善我們的化學品支出，以及一些需要一些時間才能實施的大型基礎設施項目。當然，這是因為我們處理的是酸性氣體，就像特拉華盆地的許多其他人所做的那樣。我得到了米德蘭盆地的一小部分，但那裡的產量沒有那麼豐富。但我想說這兩個領域將成為我們 LOE 的主要關注點。但不要認為——這些可能需要更長的時間才能實現。

There are no further questions at this time. I will now turn the call back to Joe Gatto for any closing remarks.

目前沒有其他問題。現在，我將把電話轉回給喬·加托，讓其發表結束語。

Thank you, everyone, for joining and the interest in Callon. We covered a lot of ground here today with a lot of exciting things going on. We'll have a lot more to fill in over the coming months and look forward to keeping you all up to date on that. And as always, with any questions, please be able to reach out. Thanks again.

感謝大家的加入以及對 Callon 的興趣。今天我們在這裡討論了很多內容，發生了很多令人興奮的事情。在接下來的幾個月裡，我們將有更多內容需要填寫，並期待為大家提供最新資訊。一如既往，如有任何疑問，請隨時與我們聯繫。再次感謝。

This concludes today's conference call. Thank you for joining us. You may now disconnect.

今天的電話會議到此結束。感謝您加入我們。您現在可以斷開連線。