Crescent Energy Co (CRGY) 2024 Q2 法說會逐字稿

Good morning, and thank you for joining Crescent's second quarter 2024 conference call. Our prepared remarks today will come from CEO, David Rockecharlie; and CFO, Brandi Kendall. Our Chief Accounting Officer, Todd Falk; and our Executive Vice President of Investments, Clay Rynd will also be available during Q&A.

早安，感謝您參加 Crescent 的 2024 年第二季電話會議。我們今天準備好的演講將來自執行長 David Rockecharlie；和財務長布蘭迪·肯德爾。我們的首席會計官 Todd Falk；我們的投資執行副總裁 Clay Rynd 也將出席問答環節。

Today's call may contain projections and other forward-looking statements within the meaning of the federal securities laws. These statements are subject to risks and uncertainties, including commodity price volatility, global geopolitical conflict, our business strategies and other factors that may cause actual results to differ from those expressed or implied in these statements and our other disclosures.

今天的電話會議可能包含聯邦證券法含義內的預測和其他前瞻性陳述。這些陳述受到風險和不確定性的影響，包括商品價格波動、全球地緣政治衝突、我們的業務策略以及其他可能導致實際結果與這些陳述和我們其他揭露中明示或暗示的結果不同的因素。

We have no obligation to update any forward-looking statements after today's call. In addition, today's discussion may include disclosure regarding non-GAAP financial measures. For a reconciliation of historical non-GAAP financial measures to the most directly comparable GAAP measure, please reference our 10-Q and earnings press release available on our website.

在今天的電話會議後，我們沒有義務更新任何前瞻性聲明。此外，今天的討論可能包括有關非公認會計準則財務指標的揭露。有關歷史非 GAAP 財務指標與最直接可比較的 GAAP 指標的調節，請參考我們網站上提供的 10 季和收益新聞稿。

With that, I will turn it over to our CEO, David.

這樣，我將把它交給我們的執行長大衛。

Good morning and thank you for joining us. We have another great quarter to go over today and we're eager to get started.

早安，感謝您加入我們。今天我們還有一個精彩的季度要回顧，我們渴望開始。

Before we get into the details, I want to begin with a few key points I hope you take away from this call. First, our standalone business continues to produce strong results, generating significant cash flow and attractive returns on our invested capital. We are increasing standalone guidance for production for the second time this year and improving our expectations for capital spend as the team continues to capture efficiencies in our development program.

在我們討論細節之前，我想先講幾個重點，希望您能從這次電話會議中學到一些要點。首先，我們的獨立業務持續產生強勁的業績，產生大量的現金流和有吸引力的投資回報。隨著團隊繼續提高開發計劃的效率，我們今年第二次增加了獨立的生產指導，並提高了我們對資本支出的預期。

Second, we closed on our transformative acquisition of SilverBow Resources. We are grateful for the trust from our original Crescent shareholders and our new SilverBow shareholders who voted almost unanimously to approve our merger and elected to take equity consideration in order to participate in the go-forward company highlighting their belief in the value proposition ahead.

其次，我們完成了對 SilverBow Resources 的變革性收購。我們感謝原 Crescent 股東和新 SilverBow 股東的信任，他們幾乎一致投票批准了我們的合併，並選擇考慮股權考慮以參與未來的公司，突顯了他們對未來價值主張的信念。

This complementary and accretive combination represents another major step forward for our business creating a premier growth-through-acquisition company with one of the largest positions in the Eagle Ford.

這種互補和增值的組合代表著我們的業務又向前邁出了重要一步，我們將創建一家透過收購實現成長的一流公司，並在 Eagle Ford 擁有最大的地位之一。

Today, we are focused on rapidly integrating our new assets and personnel and delivering on the significant synergies we've identified. The SilverBow assets enhance our overall business profile, which combines a substantial base of long life, low decline production and a deep inventory of proven development locations to drive advantaged stability of production and free cash flow generation.

今天，我們專注於快速整合我們的新資產和人員，並實現我們已經確定的重大協同效應。SilverBow 資產增強了我們的整體業務形象，它結合了長壽命、低產量衰退的堅實基礎和經過驗證的開發地點的大量庫存，以推動生產的有利穩定性和自由現金流的產生。

And finally, Crescent has never been better positioned. Through disciplined investing in operations, we've delivered profitable growth of both production and cash flow, tripling the size of our business over the last four years. And I'm confident in our ability to continue executing on our strategy going forward.

最後，Crescent 處於前所未有的有利位置。透過嚴格的營運投資，我們實現了生產和現金流的獲利成長，在過去四年中將我們的業務規模擴大了兩倍。我對我們繼續執行未來策略的能力充滿信心。

Crescent offers investors a compelling value proposition with a sales and balanced portfolio of high-quality assets, substantial free cash flow with a disciplined capital allocation framework and a demonstrated track record of accretive returns-driven growth through M&A.

Crescent 為投資者提供了令人信服的價值主張，包括優質資產的銷售和均衡投資組合、大量自由現金流、嚴格的資本配置框架以及透過併購實現增值回報驅動型成長的良好記錄。

We believe we have established Crescent as a must-own mid-cap company which uniquely combines the discipline, stability and capabilities of large-cap operator with the value and growth potential of a proven mid-cap business. The SilverBow transaction represents a significant step change for our business. Today, we have a leading position in the Eagle Ford and we are just getting started.

我們相信，我們已經將 Crescent 打造成一家必須擁有的中型企業，它將大型企業運營商的紀律、穩定性和能力與經過驗證的中型企業的價值和增長潛力獨特地結合在一起。SilverBow 交易代表了我們業務的重大轉變。今天，我們在 Eagle Ford 中處於領先地位，而我們才剛剛開始。

Following those quick highlights, I will now discuss things in a bit more detail beginning with our standalone second quarter results. We had solid financial performance this quarter beating consensus expectations again on both EBITDA and free cash flow driven by strong operational execution.

在這些簡短的要點之後，我現在將從我們獨立的第二季業績開始更詳細地討論一些事情。在強勁的營運執行力的推動下，本季我們的 EBITDA 和自由現金流表現強勁，再次超越了市場普遍預期。

Our team continues to deliver impressive results with another quarter of production outperformance alongside our ongoing improvements in capital costs. With this quarter's outperformance and the consistent execution from our team, we have increased full year production guidance for the standalone Crescent business for the second consecutive quarter with lower expected capital expenditures.

我們的團隊持續取得令人印象深刻的成果，生產表現優於其他季度，同時我們的資本成本也不斷改善。憑藉本季的優異表現和我們團隊的一貫執行力，我們連續第二個季度提高了獨立 Crescent 業務的全年生產指引，並降低了預期資本支出。

In the Eagle Ford, we've continued to build momentum and increase capital efficiency delivering more production and cash flow for less capital. We are seeing meaningful and sustained improvements to well productivity since taking over the assets we acquired in the Western Eagle Ford last fall with average production per well roughly double the results seen by the prior operator to date. We've been able to accomplish this by bringing industry best practices to the field and we look forward to further demonstrating the quality of the assets we acquired.

在 Eagle Ford，我們繼續增強動力並提高資本效率，以更少的資本提供更多的產量和現金流。自從去年秋天接管我們在 Western Eagle Ford 收購的資產以來，我們看到油井生產力得到了有意義和持續的改善，每口井的平均產量大約是之前運營商迄今為止的結果的兩倍。我們透過將行業最佳實踐帶到現場來實現這一目標，我們期待進一步展示我們所收購資產的品質。

In addition to the improved well performance, we've captured significant synergies since our Western Eagle Ford acquisitions with roughly $60 million in annual cash flow uplift relative to $850 million of combined purchase price, driven by a number of active initiatives across the field.

除了改善油井性能外，自收購Western Eagle Ford 以來，我們還獲得了顯著的協同效應，在該領域多項積極舉措的推動下，相對於8.5 億美元的合併收購價格，年度現金流增加了約6 千萬美元。

First and foremost is capital execution where more efficient operations and the introduction of simul-frac have improved well costs by up to 15% versus our underwriting. This combined with the successful oil blending campaign and active field management have generated significant incremental cash flow for our investors.

首先也是最重要的是資本執行，與我們的承保相比，更有效率的營運和同步壓裂的引入將油井成本降低了高達 15%。這與成功的石油混合活動和積極的現場管理相結合，為我們的投資者帶來了可觀的增量現金流。

We've also begun to see solid results from our Austin Chalk development in the Western Eagle Ford with early time production generally in line with our lower Eagle Ford performance and investment returns expected to exceed our two times multiple of invested capital benchmark. We intend to continue to allocate capital to the Austin Chalk in this area going forward.

我們也開始看到我們在 Western Eagle Ford 的 Austin Chalk 開發案取得了堅實的成果，早期生產總體上與我們較低的 Eagle Ford 業績一致，投資回報預計將超過我們投資資本基準的兩倍。我們打算繼續在這一領域向 Austin Chalk 分配資金。

Moving to point number two, the closing of the SilverBow acquisition. This acquisition is transformative for our business. Not only was it one of the most compelling investment opportunities we've seen in the market with cash-on-cash returns in excess of our returns hurdles and immediately accretive to cash flow and NAV per share, but it also provides significant strategic benefits with increased scale, substantial synergy opportunities, enhanced operating capabilities ,extended inventory life and an improved credit profile.

接下來是第二點，SilverBow 收購的完成。此次收購對我們的業務具有變革性意義。它不僅是我們在市場上看到的最引人注目的投資機會之一，其現金回報超過我們的回報障礙，並立即增加每股現金流和資產淨值，而且還提供了顯著的戰略優勢：規模擴大、協同機會巨大、營運能力增強、庫存壽命延長以及信用狀況改善。

This transaction firmly positions Crescent as one of the largest operators in the Eagle Ford alongside ConocoPhillips and EOG with a broader portfolio of low-decline, long-life production and a deep high-quality inventory that supports compelling returns through cycles.

這筆交易使Crescent 成為伊格爾福特最大的營運商之一，與康菲石油公司和EOG 齊名，擁有更廣泛的低衰退、長壽命生產組合和深厚的高品質庫存，可支持令人矚目的週期回報。

We were able to close the SilverBow acquisition ahead of schedule and integration is well-underway. We're very optimistic about the future of our business and what we can accomplish with our high-quality asset base and the talented people from both organizations working together.

我們提前完成了對 SilverBow 的收購，整合工作正在順利進行中。我們對我們業務的未來以及透過我們的優質資產基礎和來自兩個組織的人才的共同努力所能取得的成就感到非常樂觀。

With increased scale and significant operational overlap, we see incredible opportunities for needle-moving synergies as a combined company and we are confident in our ability to create incremental value for our investors. We've already made great strides towards our announced synergy expectations, capturing roughly $35 million or one-third of the high end of our target, ahead of closing through a successful bond offering and improved cost of capital relative to SilverBow standalone.

隨著規模的擴大和顯著的業務重疊，我們看到了合併後的公司帶來巨大的協同效應的機會，並且我們對為投資者創造增量價值的能力充滿信心。我們已經在實現我們宣布的協同效應預期方面取得了長足的進步，在通過成功的債券發行和相對於SilverBow 獨立的資本成本的改善來完成交易之前，獲得了大約3500 萬美元，即我們目標高端的三分之一。

SilverBow's business has also continued to generate strong results since we announced our combination in May with performance in line or exceeding expectations for the second quarter. Coming together, we believe our business is well-positioned to continue delivering meaningful value from our growth-through-acquisition strategy, combining safe efficient operations with returns-driven and free cash flow-focused investing.

自從我們五月宣布合併以來，SilverBow 的業務也持續取得強勁業績，第二季業績符合或超乎預期。綜上所述，我們相信我們的業務處於有利位置，能夠繼續從我們的收購成長策略中提供有意義的價值，將安全高效的營運與回報驅動和以自由現金流為重點的投資相結合。

Looking forward, we expect to run four rigs across the combined business for the remainder of the year with three rigs in the Eagle Ford and one in the Uinta. We are still in the early days of operational integration and expect capital allocation to remain largely consistent with Crescent and SilverBow's standalone business plans for the near-term. But we expect to begin realizing both capital and operating cost synergies over the next few quarters as we capture the benefits of the combined asset profile.

展望未來，我們預計在今年剩餘時間內在合併後的業務中運營四台鑽機，其中三台位於 Eagle Ford，一台位於 Uinta。我們仍處於營運整合的早期階段，預計資本配置將與 Crescent 和 SilverBow 的近期獨立業務計劃基本保持一致。但我們預計，隨著我們獲得合併資產狀況的好處，我們將在未來幾季開始實現資本和營運成本的協同效應。

Crescent has the operational and investing expertise required to execute on our growth-through-acquisition strategy and we are looking forward to delivering more value from our existing asset base and future acquisitions. We are a proven growth-through-acquisition company, and currently we have one of the largest pipelines of M&A opportunity in our recent history.

Crescent 擁有執行我們透過收購實現成長的策略所需的營運和投資專業知識，我們期待從我們現有的資產基礎和未來的收購中創造更多價值。我們是一家經過驗證的透過收購實現成長的公司，目前我們擁有近代史上最大的併購機會管道之一。

The Eagle Ford in particular remains one of the most fragmented basins in the US and we see meaningful opportunity there. With our increased scale, strong operating and financial performance and solid balance sheet we've never been better positioned for accretive growth and further value creation over the remainder of 2024 and beyond.

尤其是伊格爾福特仍然是美國最分散的盆地之一，我們在那裡看到了有意義的機會。隨著我們規模的擴大、強勁的營運和財務業績以及穩健的資產負債表，我們處於前所未有的有利位置，可以在 2024 年剩餘時間及以後實現增值成長和進一步創造價值。

Crescent's value proposition has never been clear as we continue towards our goal of being a valuable and industry-leading investment-grade business.

Crescent 的價值主張從未如此明確，因為我們繼續致力於成為一家有價值且行業領先的投資級企業的目標。

With that, I'll turn the call over to Brandi, to provide more detail on the quarter. Brandi?

這樣，我會將電話轉給布蘭迪，以提供有關該季度的更多詳細資訊。布蘭迪？

Thanks David. Crescent's standalone performance for the quarter built on our strong first quarter results with production of 165,000 barrels of oil equivalent per day significant cash flow generating $320 million of adjusted EBITDA and $147 million in levered free cash flow.

謝謝大衛。Crescent 本季的獨立業績建立在我們第一季強勁的業績基礎上，每天生產 165,000 桶石油當量，大量現金流產生 3.2 億美元的調整後 EBITDA 和 1.47 億美元的槓桿自由現金流。

We had $120 million of capital expenditures during the quarter less than forecast with meaningful savings to-date. We brought online six gross operated wells in the Eagle Ford and five gross wells in the Uinta, all of which are generating strong initial results and are on track to exceed our returns target of two times our capital invested at current commodity prices.

本季我們的資本支出比預期少 1.2 億美元，但迄今已節省了大量資金。我們在Eagle Ford 投入了6 口總作業井，在Uinta 投入了5 口總作業井，所有這些井都產生了強勁的初步成果，並且有望超過我們的回報目標，即按當前商品價格投資資本的兩倍。

Turning to our outlook for the remainder of 2024, as David mentioned, we increased standalone production guidance for the second time this year to 160,000 to 162,500 barrels of oil equivalents per day, while improving our full year capital guidance to $550 million to $600 million.

談到我們對2024 年剩餘時間的展望，正如David 所提到的，我們今年第二次將獨立產量指引提高至每天160,000 至162,500 桶石油當量，同時將全年資本指引提高至5.5 億至6 億美元。

We also released second half 2024 guidance for our full combined business pro forma for the closing of our SilverBow acquisition. This updated guidance reflects five months of SilverBow contribution and highlights the strength of the combined business. At the commodity prices we expect to generate substantial free cash flow in 2024 and beyond.

我們也發布了 2024 年下半年我們完成 SilverBow 收購的完整合併業務預計指南。此次更新的指引反映了 SilverBow 五個月的貢獻，並凸顯了合併後業務的實力。以大宗商品價格計算，我們預計 2024 年及以後將產生大量自由現金流。

In conjunction with our SilverBow acquisition, we were thoughtful about positioning our capital structure to maintain our balance sheet strength and enhance our credit profile. David already mentioned our successful notes offering to refinance a portion of SilverBow's debt outstanding.

在收購 SilverBow 的同時，我們對資本結構的定位進行了深思熟慮，以維持我們的資產負債表實力並提高我們的信用狀況。David 已經提到了我們成功提供的票據為 SilverBow 的部分未償債務進行再融資。

And we also secured an upside to our existing credit facility of $2 billion to ensure significant liquidity and flexibility, as we continue to execute our growth strategy. Today we are within our targeted leverage threshold of 1.5 times with no near-term maturities and believe the increased scale and asset profile of the combined business positions Crescent for further cost of capital improvements as we look forward, highlighted by our recent corporate ratings upgrade by Fitch.

在我們繼續執行成長策略的同時，我們也確保了現有 20 億美元信貸額度的上行空間，以確保顯著的流動性和靈活性。今天，我們的槓桿率達到了1.5 倍的目標門檻，且沒有短期到期的情況，並且相信合併後的業務頭寸Crescent 的規模和資產狀況的增加將進一步改善我們的資本成本，這一點從我們最近的企業評級上調就可以看出。

Alongside earnings last night, we announced another dividend of $0.12 per share under our recently enhanced framework, which provides certainty and simplicity to our shareholders with a peer-leading yield of around 4%, excluding the impact for active share buyback program. We've exercised 15% of the total $150 million buyback authorization to-date. And we continue to view share repurchases as an attractive tool in our shareholder return framework.

除了昨晚的盈利之外，我們還根據最近增強的框​​架宣布了每股0.12 美元的股息，這為我們的股東提供了確定性和簡單性，收益率在同行中領先，約為4%，不包括主動股票回購計畫的影響。迄今為止，我們已行使了 1.5 億美元回購授權總額的 15%。我們繼續將股票回購視為股東回報框架中一個有吸引力的工具。

With that, I'll turn the call back over to, David.

這樣，我會將電話轉回大衛。

Thank you, Brandi. Before we wrap-up, I want to reiterate a few key takeaways for this quarter.

謝謝你，布蘭迪。在結束之前，我想重申本季的一些關鍵要點。

First, our standalone business continues to outperform. And we've improved guidance for the second time this year with increased production for less capital. Our advantaged asset profile combining long life, low decline production and high-return drilling inventory is generating significant cash flow for our investors.

首先，我們的獨立業務持續表現出色。我們今年第二次改進了指導，以更少的資本增加了產量。我們的優勢資產狀況結合了長壽命、低產量遞減和高回報鑽井庫存，正在為我們的投資者產生大量現金流。

Second, our combination with SilverBow, provides significant benefits to all of our shareholders and meaningfully enhances the Crescent value proposition for current and future investors. Crescent now has one of the largest positions in the Eagle Ford with opportunity for significant synergies and incremental value.

其次，我們與 SilverBow 的合併為我們的所有股東帶來了顯著的利益，並為當前和未來的投資者有意義地增強了 Crescent 的價值主張。Crescent 現在擁有 Eagle Ford 最大的職位之一，有機會實現顯著的協同效應和增量價值。

And lastly, we are in a great position and we are just getting started. We are proud of how we get here. And we've done what we said we would do. Number one, combined operating and investing expertise to deliver strong free cash flow risk management and returns on capital.

最後，我們處於有利地位，而且才剛開始。我們為我們如何走到這一步感到自豪。我們已經做到了我們所說的。第一，結合營運和投資專業知識，提供強大的自由現金流風險管理和資本回報。

Number two, transformed the business through accretive M&A. Number three enhanced our peer-leading dividend framework. Number four, maintained a strong balance sheet including achieving BB credit ratings and number five accomplished our goal at IPO of establishing a capital markets presence in line with the company of our size.

第二，透過增值併購實現業務轉型。第三，增強了我們同業領先的股息框架。第四，維持了強勁的資產負債表，包括獲得 BB 信用評級；第五，實現了我們在 IPO 時的目標，即建立與我們公司規模相符的資本市場存在。

We remain focused on continuing to execute enhancing our business and generating value for our shareholders. We have the unique combination of operating and investing expertise required to execute on our growth-through-acquisition strategy. And we will continue doing exactly what we've said we're going to do. We believe Crescent offers a uniquely compelling value proposition in our sector.

我們仍然專注於繼續增強我們的業務並為股東創造價值。我們擁有執行收購成長策略所需的營運和投資專業知識的獨特組合。我們將繼續按照我們所說的去做。我們相信 Crescent 在我們的行業中提供了獨特且引人注目的價值主張。

The combined company is the second largest operator in the Eagle Ford. Crescent is a leading mid-cap E&P with a scaled balanced portfolio of high-quality assets. We generate substantial free cash flow with a disciplined capital allocation framework. And we've never been better positioned for future growth through accretive returns-driven M&A. Crescent is a great business. And we're just getting started.

合併後的公司是 Eagle Ford 的第二大營運商。Crescent 是一家領先的中型勘探與生產公司，擁有規模化、均衡的優質資產組合。我們透過嚴格的資本配置架構產生大量的自由現金流。透過以增值回報驅動的併購，我們為未來的成長做好了前所未有的準備。新月是一項偉大的事業。我們才剛開始。

With that, I'll open it up for Q&A. Operator?

這樣，我將打開它進行問答。操作員？

Thank you. Ladies and gentlemen, we will now be conducting a question-and-answer session. (Operator Instructions)

謝謝。女士們、先生們，我們現在將進行問答環節。（操作員說明）

Neal Dingmann with Truist Securities.

Truist 證券公司的 Neal Dingmann。

Good morning, David, Brandi and team, really nice results. David my first question is on the future sort of looking at the efficiency gains, as you show in the Eagle Ford around Slide 7. And I guess my question there would be when you look at sort of your future D&C plan that now includes SilverBow in that area, any comments I'd love to hear what your thoughts are on future efficiency that it is just that combination's going to add? Is it just the continued trajectory of what that legacy business? I'd just love to hear how you're thinking about those efficiencies in Eagle Ford going forward.

早安，大衛、布蘭迪和團隊，成果非常好。大衛，我的第一個問題是關於未來的效率提升，正如您在幻燈片 7 周圍的 Eagle Ford 中所展示的那樣。我想我的問題是，當您查看未來的 D&C 計劃（現在包括 SilverBow）時，我很想聽聽您對未來效率的想法，這只是該組合將添加的任何評論？這只是傳統業務的持續發展軌跡嗎？我很想聽聽您對 Eagle Ford 未來的效率有何看法。

Yes, Neal, thanks for the question. I think I didn't count it as I was talking but one of the things, hopefully people hear is that we've executed on synergies in the last Eagle Ford acquisition that we completed last year. And we see significant opportunity for synergies from the SilverBow transaction.

是的，尼爾，謝謝你的提問。我想我在講話時並沒有算在內，但希望人們聽到的一件事是，我們在去年完成的最後一次鷹福特收購中發揮了協同作用。我們看到了 SilverBow 交易帶來的巨大綜效機會。

To your question specifically, I would expect to continue to get better at what we do. We've tried to bring the best of both together from the two companies. We were able to spend a lot of time at a high-level planning for an integration. But we really just closed a week ago.

具體到你的問題，我希望我們的工作能繼續做得更好。我們試著將兩家公司的優點結合在一起。我們能夠花費大量時間來進行整合的高層規劃。但我們確實一週前才關門。

So we've just gotten started taking advantage of the combined company's footprint, expertise, personnel. So I think we're performing very well at this point but we see significant opportunity for improvement both in the actual execution but also in the knowledge base across the Eagle Ford in particular, where we're both bringing history and expertise together.

因此，我們剛開始利用合併後公司的足跡、專業知識和人員。因此，我認為我們目前的表現非常好，但我們看到了在實際執行方面以及特別是在鷹福特的知識庫方面都有很大的改進機會，我們將歷史和專業知識結合在一起。

And then I think that remains to be seen but we're very optimistic about improving the combined drilling and completion practices from both of us. We were both good at what we're doing, but we also had some areas where we were both good in different ways. And so when you bring all that together, I would just tell you I think we're very optimistic about continuing to improve.

我認為這還有待觀察，但我們對改善我們雙方的鑽井和完井綜合實踐非常樂觀。我們都擅長我們正在做的事情，但我們也有一些領域我們都擅長以不同的方式。因此，當你把所有這些放在一起時，我只想告訴你，我認為我們對繼續改進非常樂觀。

Great to hear. And then just my follow-up would be maybe for Brandi just on shareholder return. I know you all plan to continue to focus really on a lot of that debt repayment. Just wondering how do you also combine the opportunistic share repurchases, given how incredibly low it looks like the shares now trade on a multiple basis?

很高興聽到。然後我的後續行動可能是布蘭迪的股東回報。我知道你們都計劃繼續真正關注大量債務的償還。只是想知道，考慮到現在的股票交易價格低得令人難以置信，您如何將機會主義股票回購結合在一起？

Neal, it's Brandi. Thanks for the question. So as you pointed out, the priorities continue to be the base dividend and the balance sheet. But we do have $125 million remaining on the authorization today. And I think you'll see us look to use it opportunistically, when our stock is significantly disconnected to intrinsic value. So opportunistic tool that we'll look to continue to use going forward.

尼爾，我是布蘭迪。謝謝你的提問。正如您所指出的，優先事項仍然是基本股息和資產負債表。但今天我們的授權還剩 1.25 億美元。我認為，當我們的股票與內在價值顯著脫節時，您會看到我們尋求機會主義地使用它。這是我們未來將繼續使用的機會主義工具。

Thank you.

謝謝。

Tim Rezvan, KeyBanc Capital Markets. Please go ahead.

Tim Rezvan，KeyBanc 資本市場。請繼續。

Hey, good morning, folks and thank you for taking my question. David, I thought your prepared comments were interesting. You put a couple of interesting clues out there talking about your leading position in the Eagle Ford but you're just getting started. And then you talked about the large pipeline of M&A activity. So if the right deal presents itself now or in the near-term future, is the organization ready to transact again? Or do you believe you're going to need a couple of quarters of integration first? Just trying to understand those comments. Thanks.

嘿，早安，夥計們，謝謝你們提出我的問題。大衛，我認為你準備的評論很有趣。您提出了一些有趣的線索，談論您在 Eagle Ford 中的領先地位，但您才剛剛開始。然後您談到了大規模的併購活動。因此，如果現在或在不久的將來出現了正確的交易，該組織是否準備好再次進行交易？或者您認為您首先需要幾個季度的整合？只是想理解這些評論。謝謝。

Yes. Good morning. Tim thanks for the question. Very simply we feel like we'll be ready to go when the market presents itself. But more specifically, we've had a long history of making acquisitions and integrating them. And I think you have also correctly read that integration for us in the Eagle Ford has been something we've done multiple times and done well.

是的。早安.提姆感謝你的提問。很簡單，我們覺得當市場出現時我們就準備好了。但更具體地說，我們在收購和整合方面有著悠久的歷史。我認為您也正確地了解我們在 Eagle Ford 中的整合是我們已經做過多次並且做得很好的事情。

So we expect this integration and transition to happen relatively quickly and allow us to be able to both focus on capturing the synergies and making sure things go well. This is an important transaction. It's a large one for us, but also being prepared to opportunistically continue to execute on the M&A strategy.

因此，我們預計這種整合和過渡會相對較快地發生，使我們能夠專注於捕捉協同效應並確保一切順利。這是一筆重要的交易。這對我們來說是一件大事，但我們也準備好機會主義地繼續執行併購策略。

So I think we feel great about where we are. We're well prepared to make this integration happen and we're also well prepared to continue to look at the market.

所以我認為我們對自己所處的位置感覺很好。我們已做好充分準備來實現這一整合，我們也已做好繼續關注市場的準備。

Okay. That's great. Thanks for that color. And then as my follow-up, I just wanted to ask about leverage. In the presentation I think the number was 1.5 times. I was curious, what your thoughts are on the pace or how kind of rapidly you need to maybe get down to or below 1 times. And then related to that, is there anything in the portfolio you might consider selling for example the minerals portfolio that would likely transact well above where the equity is today? Thank you.

好的。那太棒了。謝謝那個顏色。然後作為我的後續行動，我只想問槓桿問題。在演示中我認為這個數字是 1.5 倍。我很好奇，你對速度有什麼想法，或者你需要多快的速度才能達到或低於 1 次。與此相關的是，您可能會考慮出售投資組合中的任何東西，例如交易價格可能遠高於當前股本水準的礦產投資組合？謝謝。

Tim, I'll start, it's Brandi from a balance sheet standpoint. So I think overall we feel really good with where the balance sheet sits today. We exited the quarter at 1.3. Pro forma SilverBow, we're still within our target of 1 times to 1.5 times. We've been successful in our ability to term out that debt. So we feel good again overall balance sheet and where the maturities sit they range from 28 to 33. Our pro forma business generates a significant amount of cash flow and we've continued to be an active hedger which allows us to delever closer to the one time target over the next handful of quarters. I'll maybe pass it to Clay just as it relates to potential divestiture opportunities.

提姆，我先來說說，從資產負債表的角度來看，這是布蘭迪。因此，我認為總體而言，我們對目前的資產負債表狀況感到非常滿意。我們以 1.3 結束本季。預計 SilverBow，我們仍處於 1 倍至 1.5 倍的目標之內。我們已經成功地償還了這筆債務。因此，我們對整體資產負債表感覺良好，而且期限在 28 至 33 之間。我們的預期業務產生了大量現金流，我們繼續成為積極的對沖者，這使我們能夠在接下來的幾個季度中更接近一次性目標。我可能會將其傳遞給克萊，因為它與潛在的剝離機會有關。

Hey Tim. Listen, we'd like to say that we're both in the acquisition business and the investor business. And so, you've seen us divest assets, particularly noncore assets over time and do that opportunistically when we think the buyer sees value that we can't capture. And we've sold $150 million worth of assets over the last 18 months. So I think you continue to see us look to be in the market where there's value where there's opportunity. We're not a core seller of assets into a tough tape. But certainly, I think over time streamline the portfolio and capturing value that way is core to what we do.

嘿蒂姆。聽著，我們想說我們既從事收購業務又從事投資者業務。因此，您已經看到我們隨著時間的推移剝離資產，特別是非核心資產，並且當我們認為買家看到了我們無法捕獲的價值時，我們會趁機剝離資產。在過去 18 個月裡，我們已經出售了價值 1.5 億美元的資產。因此，我認為您會繼續看到我們進入的市場充滿價值、充滿機會。我們並不是將資產出售給艱難的資產的核心賣家。但當然，我認為隨著時間的推移，精簡投資組合併以這種方式獲取價值是我們工作的核心。

Thank you for the comments.

謝謝您的評論。

Oliver Huang, TPH & Company.

Oliver Huang，TPH & Company。

Good morning, David, Brandi and team and thanks for taking my questions. Just wanted to start off on the Austin Chalk. The initial results here look encouraging as you've shown in your updated slides and the wells online earlier this year looked to have seen a positive rate of change year-over-year on early days. Granted it's a pretty small sample set, but I was hoping that you all might be able to talk in a little bit more detail about the initial takeaways from your first few wells.

早安，大衛、布蘭迪和團隊，感謝您回答我的問題。只是想從奧斯汀粉筆開始。正如您在更新的幻燈片中所示的那樣，這裡的初步結果看起來令人鼓舞，並且今年早些時候的線上油井看起來在早期同比出現了正變化率。當然，這是一個相當小的樣本集，但我希望你們都能夠更詳細地討論前幾口井的初步收穫。

And you mentioned in the prepared remarks David that it will be garnering capital allocation going forward. But just any way kind of speak to or quantify what level of step-up we might see over the next 12 to 24 months especially since SilverBow had done a number of wells in that horizon on their Western acreage.

你在準備好的演講中提到大衛，它將繼續獲得資本配置。但無論如何，我們都可以談論或量化未來 12 至 24 個月內我們可能會看到的提升水平，特別是因為 SilverBow 在其西部地區的這一地平線上打出了許多油井。

Hi Oliver, it's Clay. I can take that. So you've analyzed it, right? I think we're excited about it. Early results are good and encouraging and consistent with our lower Eagle Ford which I think gives us the consistency to feel good about continuing to allocate capital there.

嗨，奧利佛，我是克萊。我可以接受。那你已經分析過了，對吧？我想我們對此感到興奮。早期結果良好且令人鼓舞，並且與我們較低的伊格爾福特一致，我認為這使我們對繼續在那裡分配資本感到良好。

And in particular as you noted on the heels of SilverBow, the combined Western Eagle Ford position certainly sits in a place where the reservoir characteristics are strong, but you've also seen the results be very strong across the horizon.

特別是正如您在 SilverBow 之後所指出的，合併後的 Western Eagle Ford 位置無疑位於油藏特徵較強的地方，但您也看到了跨地平線的結果非常強勁。

So, I think you'll continue to see us prudently allocate capital to the chalk and be thoughtful about it. And as we go into 2025 and firm up a capital program there, it would certainly be a piece of it. But that we continue to be excited and I think there's real opportunity there.

因此，我認為您將繼續看到我們謹慎地將資本分配給粉筆並對此進行深思熟慮。當我們進入 2025 年並確定資本計劃時，它肯定會成為其中的一部分。但我們仍然感到興奮，我認為那裡有真正的機會。

Okay. Makes sense. And maybe just a follow-up on efficiencies and simul-frac driving better cycle times. Should we expect for this to drive any sort of meaningful acceleration versus the initial pace of well counts envisioned in the forecasting at the start of the year? Or was that pretty much already contemplated?

好的。有道理。也許只是效率和同步壓裂推動更好的周期時間的後續行動。我們是否應該期望這會推動與年初預測中設想的井數初始速度相比出現任何有意義的加速？或者這幾乎已經考慮過了？

And just wanted to confirm that these savings are already being, I guess, embedded in the revised lower well cost that you're kind of talking about this morning in the Eagle Ford?

我只是想確認一下，我想，這些節省已經融入了您今天早上在鷹福特談論的修訂後的較低井成本中？

Hey, Oliver, it's Brandi. So yeah, a lot of these savings, both from what we're seeing from a D&C efficiency standpoint, but then also some of the service cost deflation that's captured in the pro forma guidance for the back part of the year and really was the driver for the improvement in the full year capital guide for the standalone Crescent business.

嘿，奧利佛，我是布蘭迪。所以，是的，從我們從 D&C 效率的角度來看，節省了大量成本，而且還有今年下半年的預計指導中所體現的一些服務成本通貨緊縮，這確實是驅動因素改進獨立Crescent 業務的全年資本指南。

Okay, perfect. Thanks for the time.

好的，完美。謝謝你的時間。

Michael Scialla, Stephens.

麥可夏拉，史蒂芬斯。

Hi. Good morning. I just want to go back to slide 10. You've already achieved most of those cost of capital savings you were anticipating right upfront with the SilverBow deal. Just wondering from here, Brandi, you mentioned the ratings upgrade. Is there anything else you can do over the next 12 months to take that up to that $45 million number that you were forecasting for the potential savings there?

你好。早安.我只想回到投影片 10。透過 SilverBow 交易，您已經實現了預期的大部分資本成本節省。只是想知道，布蘭迪，你提到了收視率升級。在接下來的 12 個月內，您還可以做些什麼來將這一數字提高到您預測的 4500 萬美元的潛在節省金額嗎？

Hey Mike, good question. I think, I'm not going to speak about the rating agencies. But I think more time and continued execution for our business, right is ultimately the answer just from an additional ratings movement. I talked about Fitch improving their corporate rating on us. So we now have two BB- corporate ratings from the agencies. But we captured a lot of the low-hanging fruit, if you will, with the high yield, and then our RBL also contributed to some of the improved cost of capital.

嘿，麥克，好問題。我想，我不會談評級機構。但我認為，更多的時間和對我們業務的持續執行，最終的答案就是額外的評級變動。我談到惠譽提高了對我們的企業評級。因此，我們現在獲得了來自機構的​​兩個 BB- 企業評級。但如果你願意的話，我們以高產量獲得了很多容易實現的目標，然後我們的 RBL 也為資本成本的改善做出了貢獻。

Great. And then I also wanted to ask on slide 15, which I think you've had in your presentation before, but showing a five-year free cash flow forecast of something that's about 50% above your market cap right now based on $75 oil and $3.50 gas. Can you talk about some of the other assumptions embedded in that five-year forecast?

偉大的。然後我還想在幻燈片15 上提問，我認為您之前在演示中已經介紹過該問題，但顯示了基於75 美元的石油和美元的五年自由現金流預測，該預測比您目前的市值高出約50%。您能談談五年預測中包含的其他一些假設嗎？

Yeah. Mike, this is Brandi again. It's really just our straightforward existing kind of guidance carried forward. So, maintenance program across the pro forma business taking current service costs and commodity prices just as it relates to the operating cost inputs. Nothing special in the forecast there. But as you know, right, our business does generate a lot of cash flow, which ultimately gives us a lot of flexibility on how we ultimately use that cash flow.

是的。麥克，這又是布蘭迪。這其實只是我們簡單的現有指導的延續。因此，整個備考業務的維護計劃都會考慮當前的服務成本和商品價格，就像它與營運成本投入相關一樣。那裡的預報沒有什麼特別的。但如您所知，我們的業務確實產生了大量現金流，這最終為我們最終如何使用現金流提供了極大的靈活性。

Great. Thank you.

偉大的。謝謝。

John Freeman, Raymond James.

約翰·弗里曼，雷蒙德·詹姆斯。

Good morning. Thanks. When looking at the original SilverBow synergy guidance on that same slide that Mike was referring to on Slide 10, one area that you all don't have in there we have historically, seen some pretty nice improvement is from the marketing uplift, just the better pricing with you all's marketing efforts. Is that relevant here with SilverBow? And if so, how quickly can that kind of pricing uplift be realized?

早安.謝謝。當查看邁克在幻燈片 10 中提到的同一張幻燈片上的原始 SilverBow 協同指導時，我們歷史上沒有看到的一個領域，看到了一些相當不錯的改進來自營銷提升，只是更好定價與您所有的行銷努力。這與 SilverBow 有關嗎？如果是這樣，這種價格上漲能多快實現？

Hi, John, it's Brandi. So I would say, definitely relevant. Maybe reiterate David's comment earlier, we're less than a week out from closing. So, not a lot that we can talk about right now, but would expect to be able to update you all on broader synergies next quarter including, right whether or not we're able to capture or identify additional areas of synergies here.

嗨，約翰，我是布蘭迪。所以我想說，絕對相關。也許重申大衛早些時候的評論，我們距離交易結束還有不到一周的時間。因此，我們現在可以談論的內容不多，但希望能夠在下個季度向大家通報更廣泛的協同效應的最新情況，包括我們是否能夠捕獲或識別其他協同效應領域。

Got it. And the last follow-up for me, just on the updated cost per foot on the $825, a foot. Can you kind of characterize, kind of is that pretty consistent kind of across your position as some of the leading edge like, materially lower than that? Do you have some operations in your footprint that's meaningfully above that? Or is that a relatively tight range to get to that $825, a foot?

知道了。我的最後一個後續行動是關於每英尺的更新成本，每英尺 825 美元。您能否描述一下，在您的職位上，與某些領先的公司相比，這種情況是否相當一致，實質上低於這一水平？您的足跡中是否有一些業務明顯高於此範圍？或者說，達到每英尺 825 美元的範圍是否相對較小？

Yes. Hi, John. It's David. The easiest answer is that, kind of all the drilling and completion activities we undertake are pretty similar. So, there's not a huge change. What I would say though is, in some areas, we're able to get more efficiencies because of the number of wells on a pad, or because of existing facilities or other things like that. So in general, pretty tight range, which is probably the easiest answer, but we'd let you know that we're also looking for ways to continue to improve that number and is definitely part of the work that we're able to now begin on the synergy side.

是的。嗨，約翰。是大衛。最簡單的答案是，我們進行的所有鑽井和完井活動都非常相似。所以，沒有太大的變化。但我想說的是，在某些地區，我們能夠提高效率，因為一個平台上的井數量較多，或因為現有設施或其他類似的東西。所以總的來說，範圍很窄，這可能是最簡單的答案，但我們會讓你知道，我們也在尋找繼續提高這個數字的方法，這絕對是我們現在能夠做的工作的一部分從協同方面開始。

Great. Thanks. Nice quarter.

偉大的。謝謝。不錯的季度。

Thanks John.

謝謝約翰。

Thank you. Ladies and gentlemen, as there are no further questions, I would now hand the conference over to David Rockecharlie for closing comments.

謝謝。女士們、先生們，由於沒有其他問題了，我現在將會議交給 David Rockecharlie 進行總結評論。

Great. Thank you all again, for joining us today and for the continued support. And hopefully, what came through is the business is doing well and we see significant opportunity going forward. So we're going to get back to work and look forward to talking to you all again next quarter. Thank you.

偉大的。再次感謝大家今天加入我們並給予我們持續的支持。希望結果是業務表現良好，我們看到了未來的重大機會。因此，我們將重新開始工作，並期待下個季度再次與大家交談。謝謝。