德文能源 (DVN) 2023 Q3 法說會逐字稿

Hello, everyone, and welcome to Devon Energy Third Quarter Earnings Conference Call. (Operator Instructions) This call is being recorded. I would now like to turn the call over to Mr. Scott Coody, Vice President of Investor Relations. Sir, you may begin.

大家好，歡迎參加戴文能源第三季財報電話會議。 （操作員說明）此通話正在錄音。我現在想將電話轉給投資者關係副總裁史考特·庫迪先生。先生，您可以開始了。

Good morning, and thank you for joining us on the call today. Last night, we issued an earnings release and presentation that cover our results for the quarter and updated outlook. Throughout the call today, we will make references to the earnings presentation to support prepared remarks, and these slides can be found on our website.

早安，感謝您今天加入我們的電話會議。昨晚，我們發布了收益報告和演示文稿，其中涵蓋了本季度的業績和更新的前景。在今天的電話會議中，我們將參考收益簡報來支持準備好的言論，這些投影片可以在我們的網站上找到。

Also joining me on the call today are Rick Muncrief, our President and CEO; Clay Gaspar, our Chief Operating Officer; Jeff Ritenour, our Chief Financial Officer; and a few other members of our senior management team. Comments today will include plans, forecasts and estimates that are forward-looking statements under U.S. securities law. These comments are subject to assumptions, risks and uncertainties that could cause actual results to differ materially from our forward-looking statements. Please take note of the cautionary language and risk factors provided in our SEC filings and earnings materials.

今天與我一起參加電話會議的還有我們的總裁兼執行長 Rick Muncrief；克萊‧加斯帕 (Clay Gaspar)，我們的營運長； Jeff Ritenour，我們的財務長；以及我們高階管理團隊的其他一些成員。今天的評論將包括根據美國證券法屬於前瞻性陳述的計劃、預測和估計。這些評論受到假設、風險和不確定性的影響，可能導致實際結果與我們的前瞻性陳述有重大差異。請注意我們向 SEC 提交的文件和收益資料中提供的警告性語言和風險因素。

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

這樣，我就把電話轉給里克。

Thank you, Scott. It's a pleasure to be here this morning. We appreciate everyone taking the time to join us. For today, I plan to focus my comments on the trajectory of our business for the remainder of 2023 and highlight the steps we're taking to further improve capital efficiency as we head into 2024.

謝謝你，斯科特。很高興今天早上來到這裡。我們感謝大家抽空加入我們。今天，我計劃重點討論 2023 年剩餘時間裡我們的業務軌跡，並重點介紹我們在進入 2024 年時為進一步提高資本效率而採取的步驟。

Now let's start with a brief review of our financial and operating performance. In the third quarter, Devon delivered a production per share growth rate of 10% year-over-year. This strong growth rate was fueled by our franchise asset in the Delaware Basin, accretive acquisitions and an opportunistic share repurchases over the past year. On a barrel of oil equivalent basis, our total volumes were within the guidance range, but oil volumes were slightly softer due to select well performance in the Williston coupled with minor infrastructure constraints in the Delaware.

現在讓我們先簡要回顧一下我們的財務和營運表現。第三季度，德文郡每股產量年增10%。這一強勁的成長率是由我們在特拉華盆地的特許經營資產、增值收購和過去一年的機會性股票回購所推動的。以每桶石油當量計算，我們的總產量在指導範圍內，但由於威利斯頓的部分油井表現以及特拉華州基礎設施的輕微限制，石油產量略有下降。

We will cover the Delaware in greater detail later in the call, but these constraints were temporary and have a visible pathway to correction with the industry's ongoing build-out of infrastructure. Turning to capital for the quarter. With our disciplined plan, we've kept reinvestment rates to just over 50% of cash flow. This resulted in our free cash flow more than doubling versus the second quarter, and we rewarded shareholders with a 57% increase to our dividend payout.

我們將在稍後的電話會議中更詳細地介紹特拉華州，但這些限制是暫時的，並且隨著該行業正在進行的基礎設施建設，有一個明顯的糾正途徑。轉向本季的資本。透過嚴格的計劃，我們將再投資率保持在現金流的 50% 以上。這導致我們的自由現金流比第二季度增加了一倍以上，並且我們將股息支付增加了 57% 來回報股東。

In the fourth quarter, we expect Devon's production to be around 650,000 BOE per day, of which oil is expected to approximate 315,000 barrels per day. Now as a reminder, we dropped our fourth frac crew in the Delaware midyear to replenish our DUC inventory and the impact of this lower completion activity will lead to a minor decline in our production versus the third quarter.

第四季度，我們預計德文郡的產量約為每天 65 萬桶油當量，其中石油預計約為每天 31.5 萬桶。現在提醒一下，我們年中在特拉華州放棄了第四支壓裂人員，以補充我們的 DUC 庫存，而完井活動減少的影響將導致我們的產量與第三季度相比略有下降。

We've also modeled in the effects of project timing and weather impacts, some of which we've already experienced. However, we do expect our financial performance in the fourth quarter to be very strong with operating margins set to expand and free cash flow to be quite robust. Overall, the fourth quarter is set up to round out another successful year financially for our company. And while we have certainly faced some challenges this year, we're on track to deliver one of the best years in our 50-plus year history in terms of returns and free cash flow generation.

我們還對專案時間和天氣影響的影響進行了建模，其中一些我們已經經歷過。然而，我們確實預期第四季的財務業績將非常強勁，營業利潤率將擴大，自由現金流也將相當強勁。總體而言，第四季度將為我們公司帶來財務上又一個成功的一年。儘管今年我們確實面臨一些挑戰，但就回報和自由現金流生成而言，我們有望實現 50 多年來歷史上最好的一年之一。

Importantly, as we head into 2024, our focus remains the same. We intend to deliver growth on a per share basis and maximize free cash flow generation, while balancing the need to appropriately reinvest in our business for the future. To achieve these objectives, we have incorporated our learnings over the past year, pushed service costs lower and sharpen our capital allocation to deliver a step-change improvement in well productivity and efficiency.

重要的是，當我們邁入 2024 年時，我們的重點保持不變。我們打算實現每股成長並最大限度地產生自由現金流，同時平衡未來適當再投資業務的需求。為了實現這些目標，我們總結了過去一年的經驗教訓，降低了服務成本，並加強了資本配置，以實現油井產能和效率的逐步提高。

Now on Slide 8, we outlined the key attributes underpinning our improved outlook for 2024. First and foremost, with continued volatility in commodity pricing, we believe it is prudent to conduct -- construct a capital plan with consistent activity levels to maintain production at a level around 650,000 BOE per day with oil at approximately 315,000 barrels per day.

現在，在投影片8 中，我們概述了支撐2024 年前景改善的關鍵因素。首先也是最重要的是，隨著大宗商品價格的持續波動，我們認為謹慎的做法是製定一項活動水平一致的資本計劃，以將產量維持在產量約為每天 650,000 桶油當量，石油產量約為每天 315,000 桶。

With ongoing macro uncertainty and with the ample spare capacity that OPEC Plus possesses, we have no intention of adding incremental barrels into the market at this point in time. This disciplined approach reflects our commitment to pursuing value over volume and shareholders will benefit from our high-graded slate of development projects designed to enhance capital efficiency and returns on capital employed.

由於持續的宏觀不確定性以及歐佩克+擁有充足的閒置產能，我們目前無意向市場增加增量石油。這種嚴格的方法體現了我們追求價值而非數量的承諾，股東將從我們旨在提高資本效率和所用資本回報的高品質開發項目中受益。

To deliver this production profile in 2024, we anticipate a capital investment of $3.3 billion to $3.6 billion. This level of spending represents an improvement of 10% compared to 2023, and we expect to fund this program at pricing levels below $40 per barrel.

為了在 2024 年實現這項生產概況，我們預計資本投資為 33 億至 36 億美元。與 2023 年相比，這一支出水準提高了 10%，我們預計以低於每桶 40 美元的定價水準為該計劃提供資金。

In summary, we see delivering flat production for 10% less CapEx. Now turning to Slide 9. Our improved capital efficiency in 2024 is driven by concentrating more than 60% of our spending in the Delaware Basin. Our plan will shift a higher mix of activity to multizone Wolfcamp developments in New Mexico, which is the core of the play as infrastructure constraints have eased over the past and will continue over the coming months.

總之，我們認為以減少 10% 的資本支出來實現穩定的生產。現在轉向幻燈片 9。我們將 60% 以上的支出集中在特拉華盆地，從而推動我們在 2024 年提高資本效率。我們的計劃將把更多的活動轉移到新墨西哥州的多區 Wolfcamp 開發項目，這是該項目的核心，因為基礎設施限制在過去已經緩解，並將在未來幾個月繼續下去。

We also plan to high-grade capital activity across other key assets in our portfolio. This includes limiting Williston Basin activity to only our highest impact opportunities and decreasing activity -- appraisal activity in the Eagle Ford. With this refined capital allocation, we expect to improve well productivity by 5% to 10% in 2024, anchored by our franchise asset in the Delaware Basin.

我們還計劃對我們投資組合中的其他關鍵資產進行高等級資本活動。這包括將威利斯頓盆地的活動限制在影響力最大的機會範圍內，並減少鷹灘的評估活動。透過這種精細的資本配置，我們預計到 2024 年，以我們在特拉華盆地的特許經營資產為基礎，油井產能將提高 5% 至 10%。

And lastly, we expect -- our capital efficiency would also benefited from improved service costs as contracts refresh over the next few quarters. Now with this operating plan in 2024, we are positioned to deliver free cash flow growth of around 20% in 2024 at $80 WTI pricing.

最後，我們預計，隨著未來幾季合約的更新，​​我們的資本效率也將受益於服務成本的提高。現在，根據 2024 年的營運計劃，我們的目標是在 2024 年以 80 美元的 WTI 定價實現自由現金流成長約 20%。

As you can see on Slide 11, with this strong outlook, that translates into a uniquely attractive free cash flow yield of 11%, which is up to 3x higher than what the broader equity markets can offer. Simply put, this is one of the most critical aspects of the Devon plan. On Slide 12, with the stream of free cash flow, as we've done in the past, we plan to target a cash return payout of around 70%, which is in line with our average annual payout to shareholders since we unveiled this industry-first model in 2020.

正如您在投影片11 中看到的那樣，憑藉這種強勁的前景，這意味著11% 的自由現金流收益率具有獨特的吸引力，比更廣泛的股票市場所能提供的收益率高出3 倍。簡而言之，這是德文郡計劃中最關鍵的方面之一。在幻燈片 12 上，隨著自由現金流的增加，正如我們過去所做的那樣，我們計劃將現金回報率目標定為 70% 左右，這與我們推出這個行業以來向股東支付的平均年度股息一致- 2020 年首款車型。

A key priority heading into next year is to continue to grow our fixed dividend. We believe the certainty that comes with a fixed dividend is valued by shareholders and is better capitalized within our equity price, especially if the yield is competitive with that of the broader markets.

明年的首要任務是繼續增加我們的固定股利。我們相信，固定股息帶來的確定性受到股東的重視，並且可以在我們的股價中得到更好的資本化，特別是如果收益率與更廣泛的市場相比具有競爭力的話。

With the remainder of our free cash flow, we will stay flexible as we always have been by judiciously allocating toward the best opportunities, whether that be increased stock buybacks, variable dividends or taking additional steps to improve our balance sheet.

對於剩餘的自由現金流，我們將一如既往地保持靈活性，明智地分配給最佳機會，無論是增加股票回購、可變股息還是採取額外措施來改善我們的資產負債表。

However, given our current stock price, we expect to pursue buybacks at a level that will most likely result in our variable payout being below the 50% threshold in the near term to capture the incredible value our equity offers at these trading levels.

然而，考慮到我們目前的股價，我們預期回購的水平很可能會導致我們的可變派息在短期內低於50% 的門檻，以捕捉我們的股票在這些交易水平上提供的令人難以置信的價值。

And with that, I'll now turn the call over to Clay for a rundown of our recent operational performance.

現在，我將把電話轉給克萊，以簡要介紹我們最近的營運表現。

Thank you, Rick, and good morning, everyone. For today, I plan to focus my comments on our Delaware Basin operations as well as outlining the actions we plan to take to sharpen our capital allocation and drive efficiencies in our business over the next year.

謝謝你，瑞克，大家早安。今天，我計劃專注於評論我們的特拉華盆地業務，並概述我們計劃在明年採取的加強資本配置和提高業務效率的行動。

Let's begin on Slide 15 with an overview of our Delaware Basin activity, which accounts for roughly 60% of our capital spending for this year. With this level of investment during the quarter, we ran a consistent program of 16 rigs and brought on 59 new wells. Well productivity was very strong with 30-day rates averaging 3,000 BOE per day and improved average productivity combined with the benefits of elevated completion activity in the first half of the year drove another quarter of production growth from our franchise asset.

讓我們從幻燈片 15 開始，概述我們的特拉華盆地活動，該活動約占我們今年資本支出的 60%。憑藉本季度的這一投資水平，我們執行了 16 台鑽機的一致計劃，並開發了 59 口新井。油井生產力非常強勁，30 天平均產量為每天 3,000 桶油當量，平均生產力的提高加上上半年完井活動增加的好處，推動了我們特許經營資產的另一個季度產量增長。

That said, our growth rate in the quarter was held back by a few wind and lightning storms that impacted power for our facilities as well as our third-party infrastructure. These storms stranded a few thousand barrels per day during the quarter. The infrastructure and the wells are back online, and we don't see any negative impacts on the ultimate recovery of these wells.

也就是說，我們本季的成長率受到一些風雷暴影響，影響了我們的設施以及第三方基礎設施的電力。本季度，這些風暴每天導致數千桶石油滯留。基礎設施和油井已恢復正常運行，我們認為這些油井的最終恢復不會受到任何負面影響。

On Slide 16, you can see our impressive well productivity in the Delaware Basin during the quarter. It was highlighted by 3 important projects. On the far left of the slide, Devon's top result for the quarter was the Bora Bora project. Developing the Upper Wolfcamp at our Todd area, with 30-day rates from Bora Bora, averaging 4,600 BOEs per well, with the cost coming in under budget, these returns are expected to be well into the triple digits for this project.

在幻燈片 16 上，您可以看到本季特拉華盆地令人印象深刻的油井生產力。其中突出了3個重要項目。在幻燈片的最左側，德文郡本季的最高業績是波拉波拉島計畫。在我們的 Todd 地區開發 Upper Wolfcamp，從波拉波拉島開始 30 天，平均每口井 4,600 個 BOE，成本在預算之內，預計該項目的回報將達到三位數。

Another noteworthy project was our CBR 17 development in Texas, where 30-day production rates averaged 4,100 BOE per day per well. The CBR 17 results were enabled by a 3,000-acre trade completed about a year ago that I highlighted on the previous call. This key trade, which unlocked our ability to pursue extended reach laterals by extending our laterals to 2 miles for this project, we added several million dollars of net present value in this project alone.

另一個值得注意的項目是我們在德克薩斯州的 CBR 17 開發項目，該項目 30 天的平均產量為每口井每天 4,100 桶油當量。 CBR 17 的結果是由大約一年前完成的 3,000 英畝交易促成的，我在上次電話會議中強調了這一點。這項關鍵交易透過將本項目的支線延伸至 2 英里，釋放了我們追求擴展支線的能力，僅在該項目中我們就增加了數百萬美元的淨現值。

On the right, another key result for us was the [Half linear] project, where we co-developed multiple zones in the Wolfcamp A and B. While rates were restricted due to infrastructure, recoveries on this are on track to reach 1.5 million BOE per day per well -- excuse me, per well. With solid returns from our Wolfcamp B appraisal today, we now plan on bringing forward the value of this opportunity by co-developing the Upper Wolfcamp where possible in the future activity.

右邊，我們的另一個關鍵成果是[半線性] 項目，我們在Wolfcamp A 和B 中共同開發了多個區域。雖然費率因基礎設施而受到限制，但該項目的回收率有望達到150 萬桶油當量每天每口井——對不起，每口井。憑藉今天 Wolfcamp B 評估的豐厚回報，我們現在計劃透過在未來的活動中盡可能共同開發 Upper Wolfcamp 來提升這一機會的價值。

Looking forward to the project level details. Slide 17 provides a nice visual of the well productivity we achieved in the Delaware Basin during the third quarter. On the left, as I touched on earlier, 30-day average rates for the Delaware wells we brought online reached 3,000 BOE per day. These high-impact wells exhibited a 20%-plus improvement from the first half of 2023 reaching the highest quarterly level in more than a year.

期待項目級別的詳細資訊。幻燈片 17 很好地展示了我們第三季度在特拉華盆地取得的油井產能。在左邊，正如我之前提到的，我們上線的特拉華油井的 30 天平均產量達到了每天 3,000 桶油當量。這些高影響井較 2023 年上半年表現出 20% 以上的進步，達到一年多以來的最高季度水準。

This performance is great to see, given our well productivity over the past year has been held back slightly by elevated appraisal requirements, and infrastructure constraints. The 2023 infrastructure constraints resulted in a shifting of our -- a portion of our capital to less prolific areas in the basin and at times, constrained peak rates across a subset of our new wells.

鑑於過去一年我們的油井生產力因評估要求提高和基礎設施限製而略有下降，這一表現令人欣喜。 2023 年的基礎設施限制導致我們的部分資本轉移到盆地內產量較低的地區，有時會限制我們部分新井的峰值產量。

As you can see on the right-hand side of the slide, we also made progress improving our cycle times across our drilling and completions operations in the basin. Third quarter results were highlighted by our completion space exceeding 2,000 feet per day for the fifth consecutive quarter, and we drilled several pacesetting wells that achieved spud rig release times of less than 15 days. With the momentum we've established, we believe we can build upon these results and capture further efficiencies, as we head into 2024.

正如您在幻燈片右側所看到的，我們在改善盆地鑽井和完井作業的周期時間方面也取得了進展。第三季的業績突顯在，我們的完井空間連續第五個季度超過每天 2,000 英尺，並且我們鑽了幾口標竿井，實現了短樁鑽機釋放時間不到 15 天。憑藉我們已經建立的勢頭，我們相信在進入 2024 年時，我們可以在這些成果的基礎上進一步提高效率。

Turning to Slide 18. As Rick touched on earlier, we're excited about the plan we have in place to drive improved well productivity in the Delaware with our 2024 plan. With the ongoing industry build-out of infrastructure in the form of electrification, compression, localized processing and downstream takeaway, we plan to allocate approximately 70% of our capital to the Delaware Basin and specifically to the core of New Mexico, while we can optimize the remaining activity across our acreage in Texas.

轉向幻燈片 18。正如 Rick 之前提到的，我們對透過 2024 年計劃推動特拉華州油井產能提高的計劃感到興奮。隨著電氣化、壓縮、本地化加工和下游外賣等形式的行業基礎設施建設不斷推進，我們計劃將大約 70% 的資本分配給特拉華盆地，特別是新墨西哥州的核心地區，同時我們可以優化我們在德克薩斯州土地上的剩餘活動。

As you can see on the chart on the left, by refining our focus on high-impact Wolfcamp zones in the core of the play with less appraisal requirements, we expect Delaware productivity to improve by 10% in 2024. Looking beyond 2024, we have a long runway of high-value inventory in the Delaware that positions Devon to deliver highly competitive results for the foreseeable future. As we've discussed in the past, we've identified more than a decade of risked inventory across the Delaware and we expect to steadily replenish this inventory over time as we successfully characterized the many upside opportunities across this back play resource.

正如您在左側圖表中所看到的，透過將我們的重點放在遊戲核心的高影響力Wolfcamp 區域並減少評估要求，我們預計特拉華州的生產力將在2024 年提高10%。展望2024年之後，我們有特拉華州擁有長長的高價值庫存，使德文郡能夠在可預見的未來提供極具競爭力的業績。正如我們過去所討論的，我們已經確定了特拉華州十多年來的風險庫存，隨著我們成功地確定了這一後資源的許多上行機會，我們預計隨著時間的推移，將穩步補充該庫存。

In addition to our internal estimates, there are plenty of third-party services that can provide in-depth evaluation of our resource base. A great example of this on Slide 19 that references the recent Enverus Permian inventory report. While I won't go through all of the details on the slide, there are 3 key takeaways you should have. First, one of the -- we have one of the largest remaining inventories of any operator in the Delaware. Second, the quality of this inventory is excellent with returns exceeding a PV-10 breakeven at $40 WTI.

除了我們的內部估算之外，還有大量第三方服務可以對我們的資源庫進行深入評估。投影片 19 就是一個很好的例子，它引用了最近的 Enverus 二疊紀庫存報告。雖然我不會詳細介紹投影片上的所有細節，但您應該了解 3 個關鍵要點。首先，我們擁有特拉華州剩餘庫存最多的營運商之一。其次，該庫存的品質非常好，其回報超過了 40 美元 WTI 的 PV-10 盈虧平衡點。

And third, we possess significant upside to our risk resource from many known geological viable zones that have yet to be fully characterized. So in summary, with the Delaware accounting for roughly 60% of Devon's total risk resource, we're going to be delivering some excellent results for quite some time. And with that, I'll turn the call to Jeff for a financial review. Jeff?

第三，我們在許多尚未完全表徵的已知地質可行區域中擁有顯著的風險資源優勢。總而言之，德拉瓦州約佔德文郡總風險資源的 60%，我們將在相當長的時間內提供一些出色的結果。然後，我會打電話給傑夫進行財務審查。傑夫？

Thanks, Clay. I'll spend my time today reviewing our financial performance in the third quarter and discussing our cash return approach for the future. In general, revenues and expenses came in line with expectations for most categories in the third quarter. However, high natural gas price realizations and lower tax rate due to R&D tax credits taken in the quarter drove our earnings beat versus the Wall Street consensus. .

謝謝，克萊。今天我將花時間回顧我們第三季的財務業績，並討論我們未來的現金回報方法。整體而言，第三季大多數類別的收入和支出符合預期。然而，高天然氣價格實現和本季研發稅收抵免帶來的較低稅率推動我們的利潤超出了華爾街的共識。 。

Putting it all together, operating cash flow totaled $1.7 billion in the third quarter with capital reinvestment rates at 52% of cash flow, generating $843 million of free cash flow and more than twofold increase versus the prior period. With this free cash flow, a key priority for us was to strengthen our financial position. In August, we paid off $242 million of maturing debt, and we bolstered liquidity with cash balances increasing by 56% to $761 million.

總而言之，第三季營運現金流總計 17 億美元，資本再投資率為現金流的 52%，產生 8.43 億美元的自由現金流，比上一季成長兩倍多。有了這種自由現金流，我們的首要任務就是加強我們的財務狀況。 8 月份，我們償還了 2.42 億美元的到期債務，並透過現金餘額增加 56% 至 7.61 億美元來增強流動性。

With these actions, Devon exited the quarter with a net debt-to-EBITDA ratio of just over 0.5 turn. Moving forward, we plan to add to our financial strength in each quarter by committing around 30% of our free cash flow back to the balance sheet. This will allow us to further pare down our absolute debt balance with repayment of roughly $1 billion of maturities coming due in 2024 and 2025 and maintain a minimum cash balance in excess of $500 million.

透過這些行動，Devon 在本季結束時的淨債務與 EBITDA 比率略高於 0.5 倍。展望未來，我們計劃將約 30% 的自由現金流歸還給資產負債表，以增強我們每季的財務實力。這將使我們能夠進一步削減我們的絕對債務餘額，償還 2024 年和 2025 年到期的約 10 億美元的債務，並維持超過 5 億美元的最低現金餘額。

Cash returns to shareholders increased materially in the third quarter. Based on third quarter results, we declared a fixed plus variable dividend of $0.77 per share, an increase of 57% from the prior quarter. This dividend payout represents an attractive annualized yield of over 6% at today's share price. In addition to the dividend, we have a $3 billion share repurchase authorization in place.

第三季股東現金回報大幅增加。根據第三季業績，我們宣布固定股息和可變股息為每股 0.77 美元，比上一季增加 57%。以目前的股價計算，此次股利意味著年化報酬率超過 6%，頗具吸引力。除了股息之外，我們還獲得了 30 億美元的股票回購授權。

To date, we've repurchased 400 million shares at a total cost of $2.1 billion. With this program, we are on pace to decrease Devon's outstanding share count by up to 9%. Although we temporarily paused our repurchase activity in the third quarter, retire debt and cash -- excuse me, and to build cash, we continue to review buyback -- or we continue to view buybacks as a critically important tool for us to compound per share growth for investors over time.

迄今為止，我們已回購 4 億股股票，總成本達 21 億美元。透過該計劃，我們預計將 Devon 的流通股數量減少最多 9%。儘管我們在第三季暫時暫停了回購活動，償還了債務和現金——對不起，為了積累現金，我們繼續審查回購——或者我們繼續將回購​​視為我們實現每股複利的極其重要的工具隨著時間的推移，投資者的成長。

As Rick stated earlier, we'll target 70% of free cash flow for cash returns to shareholders moving forward. With the recent weakness in our share price, investors should expect us to be an aggressive buyer of our equity once we come out of the earnings blackout and the general weighting of cash returns to be balanced towards share repurchases and our growing fixed dividend over the near term. With that, I'll turn the call back to Rick for some closing comments.

正如 Rick 之前所說，我們的目標是將 70% 的自由現金流用於未來股東的現金回報。由於近期我們的股價疲軟，一旦我們擺脫盈利封鎖，現金回報的總體權重將與股票回購和近期不斷增長的固定股息相平衡，投資者應該預期我們將成為我們股票的積極買家。學期。接下來，我會將電話轉回給 Rick，以徵求一些結束語。

Thank you, Jeff. I would like to close today by reiterating a few key messages from our prepared remarks. Number one, we plan to incorporate our learnings from the past year, tighten a few things up and refine our capital allocation in 2024 to deliver a step-change improvement in capital efficiency. Number two, this improved capital efficiency is anchored by our franchise asset in the Delaware Basin, where we expect well productivity to improve by up to 10% year-over-year.

謝謝你，傑夫。今天結束時，我想重申我們準備好的演講中的一些關鍵訊息。第一，我們計劃在 2024 年總結過去一年的經驗教訓，加強一些工作並完善我們的資本配置，以實現資本效率的跨越式提高。第二，這種資本效率的提高是由我們在特拉華盆地的特許經營資產支撐的，我們預計該地區的油井生產力將比去年同期提高高達 10%。

Number three, with our long-duration resource base, we have a depth of inventory to deliver sustainable results through the cycle. And number four, we are deeply committed to a disciplined pursuit of per share value creation and our carefully designed cash term framework that has the flexibility to allocate free cash flow across multiple avenues to optimize shareholder value. We've demonstrated that and we'll continue to do so in the future. And now with that, I'll now turn the call back over to Scott for Q&A.

第三，憑藉我們長期的資源基礎，我們擁有豐富的庫存，可以在整個週期中提供可持續的結果。第四，我們堅定地致力於嚴格追求每股價值創造，並精心設計現金期限框架，該框架能夠靈活地跨多種途徑分配自由現金流，以優化股東價值。我們已經證明了這一點，並將在未來繼續這樣做。現在，我將把電話轉回給斯科特進行問答。

Thanks, Rick. We'll now open the call to Q&A. (Operator Instructions) With that, operator, we'll take our first question.

謝謝，瑞克。我們現在將開始問答電話。 （操作員說明） 操作員，接下來我們將回答第一個問題。

(Operator Instructions) First question comes from Doug Leggate from Bank of America Merrill Lynch.

（操作員指令）第一個問題來自美銀美林的 Doug Leggate。

Rick, obviously, the issues in the Bakken in North Dakota are obviously well telegraphed at this point. Your commentary in the slide deck suggests that you're taking steps to improve productivity. I wonder if you could just walk us through what some of those steps are in terms of how the market can get confidence in the results? And at the same time, perhaps you could address your latest thoughts on inventory depth in that asset?

里克，顯然，北達科他州巴肯的問題在這一點上顯然得到了很好的傳達。您在幻燈片中的評論表明您正在採取措施提高生產力。我想知道您能否向我們介紹其中的一些步驟，以便讓市場對結果產生信心？同時，也許您可以談談您對該資產庫存深度的最新想法？

Good question. One of the things that we've talked about in improving productivity really across the company is focusing on the capital program as we go into 2024. Obviously, throughout this past year, we've done a fair amount of assessment across our resource base and virtually all of our basins. And so I think that what we have learned, we're going to watch the performance from those wells that we did the assessment on.

好問題。我們在提高整個公司的生產力方面所討論的一件事是，在進入 2024 年時，重點關注資本計劃。顯然，在過去的一年裡，我們對我們的資源庫和資源進行了大量的評估。幾乎我們所有的盆地。因此，我認為根據我們所學到的知識，我們將觀察我們進行評估的那些油井的表現。

And then furthermore, as we've talked about, really zone in on some of our most productive areas. And so I think, while the market may not have fully appreciated the value of assessment work we know over the long haul, that's how you truly build inventory organically and it's very, very helpful for us. So I think that's the thing that investors need to watch for as we're going to stay very focused there. And can you repeat the second part of your question?

此外，正如我們所討論的，真正專注於我們一些最富有成效的領域。因此，我認為，雖然市場可能沒有完全認識到我們從長遠來看評估工作的價值，但這就是真正有機地建立庫存的方式，這對我們非常非常有幫助。所以我認為這是投資者需要關注的事情，因為我們將非常關注這一點。您能重複問題的第二部分嗎？

Yes. And just for Mr. Coody, this is not a second question here.

是的。對庫迪先生來說，這不是第二個問題。

I was expecting it then.

我當時就很期待。

Yes, inventory in North Dakota.

是的，北達科他州的庫存。

Right. Well, I mentioned the -- that's how you can build inventory organically. And I think that that's a thing really value about the staff that we have here. We've got the depth and the breadth, and we talk about the resource that we have here in-house. And so at times, you need to spend a little money assessing some of those resources. That's what we've done in 2023. And so what you're hearing us say today, we've learned some things. We're tightening some things up. And we're going to watch some performance, and we're going to be very, very focused going into '24. Clay, do you have anything you want to add to that?

正確的。嗯，我提到了——這就是你如何有機地建立庫存的方法。我認為這對我們這裡的員工來說是非常有價值的。我們有深度和廣度，我們談論我們內在擁有的資源。因此有時，您需要花一點錢來評估其中一些資源。這就是我們在 2023 年所做的事情。因此，從您今天聽到的內容來看，我們學到了一些東西。我們正在加強一些事情。我們將觀看一些表演，我們將非常非常專注地進入 24 年。 Clay，你還有什麼要補充的嗎？

Yes. Doug, I'll just add to that. I appreciate Rick's comments. And one thing we've learned, we've been very open on the amount of surprise we've had or specifically around some of the partially depleted wells that we've drilled. We've gotten operationally better. We've made 3 or 4 very specific changes that improved how we develop those wells, how we bring them online, how we keep them online, small things like artificial lift and even the design of the completion itself.

是的。道格，我補充一下。我很欣賞里克的評論。我們了解到的一件事是，我們對我們所遇到的意外情況非常開放，特別是對於我們所鑽探的一些部分枯竭的油井。我們的運作變得更好了。我們做了三到四項非常具體的改變，改善了我們開發這些井的方式、如何將它們上線、如何保持它們在線、人工舉升等小事情，甚至完井本身的設計。

And so as we get better, that improves the productivity, ultimately, the economics of those wells in the later life. And so those are learnings that eventually will apply to lots of other basins and feel real confident that given that same circumstance, we now have a better arsenal of tools to approach those wells.

因此，當我們變得更好時，生產力就會提高，最終會提高這些井在以後的經濟狀況。因此，這些經驗教訓最終將適用於許多其他盆地，並且我們非常有信心，在同樣的情況下，我們現在擁有更好的工具來接近這些油井。

Okay. We'll watch with interest. I'm torn on what to ask next, but I'm going to go with the variable dividend question. M&A was the other one, Rick, but I'm guessing you wouldn't answer that. I guess, Jeff, you -- it sounds like you're starting to recognize the opportunity to transfer value from debt-to-equity with your balance sheet comment. But you haven't rolled out the variable dividend despite the comments around buybacks. Why not just take the variable off the table? Because if I may say so, it seems to me that your share price hasn't had any value recognition for that whatsoever?

好的。我們將饒有興趣地觀看。我不知道接下來要問什麼，但我要問可變股息問題。併購是另一件事，里克，但我猜你不會回答這個問題。我想，傑夫，你——聽起來你開始認識到透過你的資產負債表評論將價值從債務轉移到股權的機會。但儘管有關於回購的評論，但您還沒有推出可變股息。為什麼不直接把這個變數從表中刪除呢？因為如果我可以這麼說，在我看來，你的股價對此沒有任何價值認同？

Yes. I appreciate it, Doug. And yes, no, we understand the bias that the markets had for share repurchases, and that's certainly going to be our bias going forward. But frankly, we always think the variable dividend can be a component of our framework and expect it to be as we move forward. I appreciate your comments on the balance sheet because, again, I'll just remind folks is always that that's our primary priority as we work our way into any year in any budget, we want to make sure we maintain the financial strength.

是的。我很感激，道格。是的，不，我們理解市場對股票回購的偏見，這肯定會成為我們未來的偏見。但坦白說，我們始終認為可變股息可以成為我們框架的一個組成部分，並期望隨著我們的前進，它將成為我們框架的一個組成部分。我感謝您對資產負債表的評論，因為我再次提醒大家，這始終是我們的首要任務，因為我們在任何預算中都在努力進入任何一年，我們希望確保保持財務實力。

And as you heard in my opening comments, we're committed to continuing to reduce our absolute debt level. Beyond that, we're going to grow the fixed dividend as we've talked about as well. We always take that up with our Board in the first quarter of the upcoming year. And as we highlighted in our materials, we expect to grow the fixed dividend again next year. Beyond that, I think it's -- at least in our view, it's pretty clear that the equity price is disconnected from the fundamentals of our business and moving forward here in the near term, we're going to lean in on the share repurchases. And as Rick said in his comments, that could have an impact on the variable dividend going forward.

正如您在我的開場白中所聽到的，我們致力於繼續降低我們的絕對債務水平。除此之外，正如我們所討論的那樣，我們還將增加固定股息。我們總是在來年第一季向董事會討論這個問題。正如我們在材料中所強調的那樣，我們預計明年將再次增加固定股息。除此之外，我認為，至少在我們看來，很明顯，股價與我們業務的基本面脫節，並且在短期內繼續前進，我們將依靠股票回購。正如里克在評論中所說，這可能會對未來的可變股息產生影響。

But I don't want to exclude it as an option for us because, frankly, we think it's a key component of continuing to deliver cash returns to shareholders. But without doubt, our bias is going to be towards the share repo here in the near term.

但我不想將其排除在我們的選擇之外，因為坦白說，我們認為這是繼續為股東提供現金回報的關鍵組成部分。但毫無疑問，我們的偏見將是短期內的股票回購。

Our next question comes from Nitin Kumar from Mizuho.

我們的下一個問題來自 Mizuho 的 Nitin Kumar。

Rick, it's good to see the refocused energy around the Permian. I want to touch a little bit you show about 3,000 potential locations in the Delaware in your deck. As you go back to the New Mexico Wolfcamp, the specific area that you're targeting, can you talk a little bit about how much of that inventory is focused on that area alone?

瑞克，很高興看到二疊紀周圍的能量重新集中。我想談談你在你的套牌中展示的特拉華州大約 3,000 個潛在位置。當您回到新墨西哥州沃爾夫坎普（您的目標特定區域）時，您能談談有多少庫存僅集中在該區域嗎？

Yes. A lot of it, to be honest with you, Nitin. And I think that we've actually talked here internally. If you think about our rig count, about 2/3 of our rigs that we have run are in that area. So that's a good way to look at it. So 2/3 of that number that you see is pretty accurate, we think. Clay, anything you want to add to that?

是的。老實說，有很多，尼丁。我認為我們實際上已經在內部進行了討論。如果您考慮我們的鑽孔機數量，我們運行的鑽孔機中約有 2/3 位於該地區。所以這是一個很好的看待它的方式。我們認為，您看到的數字中有 2/3 是相當準確的。克萊，你還有什麼要補充的嗎？

Well, I'll just -- as we think about kind of the 70-30 split, it does parallel our inventory. And so we think about most of our inventory being on that north side. Clearly, in '23, we were very clear we want to do a little bit more assessment work spread some of that out. As I mentioned in my prepared remarks, we had to reach in a little bit deeper in some of the areas that we wouldn't normally have kind of reach into that bolt in.

好吧，我只是 - 當我們考慮 70-30 的分配時，它確實與我們的庫存平行。因此，我們認為我們的大部分庫存都位於北側。顯然，在 23 年，我們非常清楚我們想要做更多的評估工作，以分散其中的一部分。正如我在準備好的發言中所提到的，我們必須在一些我們通常無法觸及的領域進行更深入的研究。

That kind of diluted a little bit the average productivity that we delivered. I think working through that inventory -- or excuse me, working through that assessment work and really having a better understanding of where that sits. We're now leveraging those learnings into the activity in '24 and then also allowing that infrastructure to mature a little bit also allows us to leverage back the benefits of the work we did in '23 for the benefiting '24. So there's a good parallel there, and I don't see us falling out of too much out of sync with that inventory run.

這稍微削弱了我們交付的平均生產力。我認為要完成該清單，或者對不起，完成該評估工作，並真正更好地了解它的位置。我們現在正在將這些經驗教訓運用到 24 年的活動中，然後讓基礎設施稍微成熟一點，也使我們能夠利用我們在 23 年所做工作的好處，讓 24 年受益。因此，這是一個很好的相似之處，我認為我們與庫存運行沒有太多不同步。

Great. As I follow up, Rick, I'm going to not assume that you won't answer the M&A question. So look, industry consolidation is certainly front and center, you have been part of that consolidation in the past. Can we maybe get some thoughts -- updated thoughts on how you're viewing the go-forward path for Devon, either as an independent company or as a consolidator?

偉大的。里克，在我跟進時，我不會假設您不會回答併購問題。所以看，產業整合肯定是前沿和中心，你過去一直是整合的一部分。我們能否得到一些想法——關於您如何看待 Devon 的前進道路（無論是作為獨立公司還是作為整合者）的最新想法？

Yes, I think it's something that's very -- obviously very topical in light of some of the recent transactions out there. Really as you know, you've been covering this sector a long time, many people on the call are, but it's really, it's part of the fabric of this industry sector. The one thing that won't change is our approach. And that's -- we've always had a -- been very compelled, just have a high bar be very disciplined and make sure that it fits within the framework that we have as you've heard Jeff talk about in my prepared remarks, I mean, right now, we see one of the greatest, most clear-cut opportunities is just ourselves with our share repurchases.

是的，我認為鑑於最近的一些交易，這顯然是一個非常熱門的話題。如你所知，您已經報導這個領域很長一段時間了，很多人都參加了電話會議，但它確實是這個行業結構的一部分。不會改變的一件事是我們的方法。那就是——我們一直有——非常被迫，只是有一個很高的標準，非常自律，並確保它符合我們的框架，正如你聽到傑夫在我準備好的講話中談到的那樣，我意思是，現在我們看到最大、最明確的機會之一就是我們自己的股票回購。

And so that's how we're looking at it. I do think that, that you'll continue to see consolidation. We've been on record as saying we support continued consolidation in the sector. We think it's the right thing to do for investors. But as far as Devon's participation, I'm going to go back to those key elements, and that's -- we're going to have a high bar be very disciplined, be very thoughtful and make sure we can sell that to shareholders, if it's the right thing to do.

這就是我們的看法。我確實認為，您將繼續看到整合。我們一直公開表示，我們支持該行業的持續整合。我們認為這對投資者來說是正確的事情。但就德文郡的參與而言，我將回到那些關鍵要素，那就是——我們將有一個很高的標準，非常自律，非常周到，並確保我們可以將其出售給股東，如果這是正確的做法。

Our next question comes from Neil Mehta from Goldman Sachs.

我們的下一個問題來自高盛的尼爾·梅塔。

The question I had was -- the first question was just around the cadence of production. Obviously, Q4 and Q1 a little softer and then a nice ramp over the course of the year. Can you talk about the confidence interval you have around that ramp as you get into through 2024 and help the market get comfortable on the oil side, in particular, as that's been a little bit shakier this year.

我的問題是——第一個問題是關於製作節奏的。顯然，第四季和第一季有點疲軟，然後在一年中出現了良好的成長。您能否談談進入 2024 年時圍繞該增速的置信區間，並幫助市場在石油方面感到舒適，特別是因為今年石油方面有點不穩定。

Yes. Thanks, Neil. Appreciate the question. We've been staring at this kind of saddle in fourth quarter, first quarter for quite a while. We don't provide detailed guidance typically ahead of the coming quarter. And so having the activity really that fourth frac crew in the front half of '23, we benefited certainly in this quarter, and we'll see a rollover in the fourth and first before we build that DUC cadence back up again, and we're able to bring that fourth frac crew up.

是的。謝謝，尼爾。感謝這個問題。我們在第四季、第一季已經關注這種鞍座有一段時間了。我們通常不會在下一季之前提供詳細的指導。因此，在23 年前半段進行的第四次壓裂工作人員的活動，我們在本季度確實受益，並且在我們再次建立DUC 節奏之前，我們將在第四次和第一次中看到滾動，我們'我們能夠將第四名壓裂人員帶上來。

That provides some lumpiness. We realize that that's not ideal. We're trying to make sure that we telegraph not just this fourth quarter, but the first quarter has a little bit of a saddle as well. I think once we get that frac crew back, we reestablished the higher rate. It's pretty -- it's steadier throughout the year. So think of 2, 3, 4 being a little bit flatter, the fourth could come down just a little bit, but probably not quite as much as a saddle as we saw in this fourth and first coming quarters.

這提供了一些塊狀。我們意識到這並不理想。我們試圖確保我們不僅報導第四季的情況，而且第一季也有一點困難。我認為一旦我們讓壓裂人員回來，我們就重新建立了更高的利率。很漂亮——全年都比較穩定。因此，考慮到 2、3、4 有點平坦，第四個可能會下降一點，但可能不像我們在第四和第一個季度中看到的那麼多。

Okay. And then Talk about the CapEx guide for 2024. It's a little bit lower than consensus, which is good, although partially offset by lower activity or lower production. So maybe just talk about what gets you to the top end and what gets you to the bottom end of the range? And the modeling that went into building that '24 forecast.

好的。然後談論 2024 年的資本支出指南。它比共識略低一點，這很好，儘管部分被較低的活動或較低的產量所抵消。那麼，也許只是談談是什麼讓你到達了最高點，以及是什麼讓你到達了該範圍的最低點？以及用於建構 24 年預測的模型。

Neil, we -- so we do a lot of work, as you can imagine. We talked last quarter about some of the work we do at with the Board and back in September, really looking out 5 and 10 years. And that leads to a kind of a more focused look this time of year, in November, we have a call with the Board. We're really starting to kind of firm things up. During that process, we run lots of sensitivities of what-ifs.

尼爾，我們——所以我們做了很多工作，正如你可以想像的那樣。我們在上個季度與董事會討論了我們所做的一些工作，並在 9 月進行了討論，真正展望了 5 年和 10 年的情況。這導致了每年這個時候，也就是 11 月，當我們與董事會進行電話會議時，我們的目光更加集中。我們確實開始把事情確定下來。在這個過程中，我們會考慮很多假設的敏感度。

We think about different deflation cadences, how that impacts us different capital allocation and what we've gotten to is we feel really good about this plan, refocusing, as we've talked about, on the Delaware Basin, benefiting from the work that we've done in '23 around some of the assessment work.

我們考慮不同的通貨緊縮節奏，這如何影響我們不同的資本配置，我們對這個計劃感覺非常好，正如我們所討論的，重新關注特拉華盆地，從我們的工作中受益'23年左右做了一些評估工作。

And so leveraging into that, we feel really good about the continued focus of the activity that we have and paring back on some of the other basins that probably could use a little bit more breathing room and then feel really good about the deflation that we've baked in, call it, roughly 5% or so that we have in hand today, we feel really good about those numbers. The balance, the remaining 5% is a little bit pare-back in activity. And then of course, we're striving to exceed those expectations every day inside our shop.

因此，利用這一點，我們對繼續關注我們的活動感到非常滿意，並減少了其他一些盆地的投入，這些盆地可能需要更多的喘息空間，然後對我們的通貨緊縮感覺非常好我們今天掌握的數據大約是5% 左右，我們對這些數字感覺非常好。其餘 5% 的活動略有減少。當然，我們每天都在店裡努力超越這些期望。

Our next question comes from Scott Gruber from Citigroup.

我們的下一個問題來自花旗集團的史考特·格魯伯。

I wanted to get just a bit more detail on the infrastructure constraints in the Delaware. It sounds like it started to improve. But are you still seeing some peak rates constrained? Is it still impacting where your rigs are running today? And if the answer is yes, when do you think these constraints can be fully alleviated?

我想更詳細地了解特拉華州的基礎設施限制。聽起來好像開始好轉了。但您是否仍然看到一些高峰費率受到限制？它仍然影響您的鑽孔機今天的運作嗎？如果答案是肯定的，您認為這些限制什麼時候可以完全緩解？

Scott, the good news is we're in the hottest basin in the world. The bad news is when you're in the hottest base in the world, you're always going to have some kind of constraint. And so we work really closely with our third parties on trying to stay ahead of that. In fact, we do proactive work on even modeling their own infrastructure.

史考特，好消息是我們正處於世界上最熱的盆地。壞消息是，當你身處世界上最熱的基地時，你總是會受到某種限制。因此，我們與第三方密切合作，努力保持領先地位。事實上，我們甚至積極主動地為他們自己的基礎設施建模。

We've done some big projects this year. The Stateline processing facility that we are part of. We added a $200 million a day of that processing, that not only benefits Stateline, but certainly some of the gas that we have in New Mexico as well. We've worked very hard on some of the water infrastructure, made some great improvements on that. Some redundancy there. So we feel really good about that really good work. Now we're really focused on some of the electrification. While we've made good progress, I can tell you that's going to be a continued focus for us and for industry.

今年我們做了一些大專案。我們所屬的 Stateline 處理設施。我們每天增加 2 億美元的加工費用，這不僅有利於 Stateline，而且肯定有利於我們在新墨西哥州擁有的一些天然氣。我們在一些水利基礎設施方面付出了很大的努力，並做出了一些重大改進。那裡有一些冗餘。所以我們對這項出色的工作感到非常滿意。現在我們真正關注的是一些電氣化。雖然我們取得了良好的進展，但我可以告訴您，這將成為我們和行業的持續焦點。

The weather specifically around July, we had some serious windstorm, blew over a lot of power lines. And as you can imagine, it's not just getting those power lines back up. It's not just getting our wells back up, but it's all of the third-party infrastructure that's [Daisy] chain together. And so that's where we saw some of the real tightness of that infrastructure, not having alternative outlets that you typically would in a looser environment.

特別是七月左右的天氣，我們遇到了一場嚴重的風暴，吹斷了許多電線。正如您可以想像的那樣，這不僅僅是恢復這些電源線那麼簡單。這不僅是讓我們的油井恢復正常，而是將所有第三方基礎設施以[菊花]鏈方式連接在一起。因此，這就是我們看到基礎設施真正緊張的地方，沒有在寬鬆的環境中通常會出現的替代出口。

So that continues to build out. There's been some really material improvement, but just know that this is a very active basin certainly, Devon is not the only company very active in the basin. And so we'll continue to try our best to stay ahead, not just on our own controllable activity, but working with our third parties so that they can stay ahead with us.

所以這會繼續發展。確實有了一些實質的改進，但要知道，這當然是一個非常活躍的盆地，德文郡並不是該盆地唯一一家非常活躍的公司。因此，我們將繼續盡力保持領先地位，不僅是在我們自己可控的活動上，而且與我們的第三方合作，以便他們可以與我們一起保持領先地位。

Got it. And just a quick one following up on the budget. Do you have a rough sense for the well count that's incorporated in the budget for next year?

知道了。只是對預算進行快速跟進。您對明年預算中包含的井數有一個大致的了解嗎？

Yes. I'm pulling the number now. Yes, about 400. Yes, it's about 400 wells, relatively flat. It looks like we're -- we kind of peak a little bit more towards the middle 2 quarters, but relatively flat during the year.

是的。我現在就拉號碼了是的，大概有400口。是的，大概有400口井，比較平坦。看起來我們在中間兩個季度達到了峰值，但全年相對持平。

Our next question comes from Neal Dingmann from Truist.

我們的下一個問題來自 Truist 的 Neal Dingmann。

My first question, guys, is just on the Permian infrastructure. I'm just wondering -- did that -- Rick, you and Clay have highlighted and I think you've been out there about the lack of infrastructure in recent quarters. I'm just wondering was some of that did that come as a surprise? Or was it you were thinking that some was going to be built out? I'm just wondering, if you could speak to maybe what had changed. And then maybe speak to the build-out you're seeing now and then what you anticipate next year?

夥計們，我的第一個問題是關於二疊紀基礎設施的。我只是想知道 - 是嗎 - 里克，你和克萊已經強調了，我認為你最近幾個季度一直在關注基礎設施的缺乏。我只是想知道其中一些是否令人驚訝？或者您認為要建造一些？我只是想知道，您是否可以談談發生了什麼變化。然後也許可以談談您現在看到的擴建以及您明年的預期？

Yes. I think you try and plan this stuff years in advance because many of these big projects are multiyear projects. And sometimes that those projects slip they ultimately funding decisions are outside of your control. So some of those things can be typically accounted for and baked in. What we're really focused on in '23 is making sure that we're honoring our flaring percentages.

是的。我認為你應該提前幾年嘗試和計劃這些東西，因為許多大型專案都是多年期專案。有時，這些專案一旦失敗，最終的融資決策就超出了你的控制範圍。因此，其中一些事情通常可以考慮和考慮。我們在 23 年真正關注的是確保我們尊重我們的燃燒百分比。

We've done an amazing job of driving that down. We're really thoughtful about these outlets and making sure that we have the ability to flow these wells back. And so we want to make sure that we're staying ahead of any bumps and disruptions. As you know, in the New Mexico side, there's a lot more federal land, you're relying a lot more on the BLM, even small things like Right Away, which are pretty standard course take a little bit longer these days.

我們在降低這種情況方面做得非常出色。我們對這些出口非常重視，並確保我們有能力將這些油井回流。因此，我們希望確保能夠領先於任何障礙和乾擾。如您所知，在新墨西哥州一側，有更多的聯邦土地，您對BLM 的依賴程度更高，甚至像“立即出發”這樣的小事情，這些都是當今相當標準的課程，需要更長的時間。

And so during that transition, when we're accounting for that and our third-party partners are accounting for that, there can be a little bit of an extended drag. I think we've gotten a lot of really good important progress during the course of '23 that we will benefit from. But we will continue to see constraints all the way around the Permian Basin as this is a materially growing basin that's so incredibly prolific.

因此，在過渡期間，當我們考慮到這一點並且我們的第三方合作夥伴也考慮到這一點時，可能會出現一些長期的阻力。我認為我們在 23 年期間取得了許多非常好的重要進展，我們將從中受益。但我們將繼續看到二疊紀盆地周圍的各種限制，因為這是一個物質不斷增長的盆地，而且資源豐富得令人難以置信。

Yes. Well said. And then probably my second question is just on your comment over high grading the upcoming multizone Wolfcamp wells in New Mexico. I'm just wondering, was it infrastructure? Or what was the limitations to not high-grade this Delaware sooner. And I'm just wondering what kind of runway do you all anticipate you'll have in this core area?

是的。說得好。我的第二個問題可能是關於您對新墨西哥州即將到來的多區 Wolfcamp 井高品位的評論。我只是想知道，這是基礎建設嗎？或者說，不盡快升級特拉華州的限制是什麼？我只是想知道你們預計在這個核心區域會有什麼樣的跑道？

Yes, Neil, I would say with the combination of -- we did some assessment work. I highlighted on the last call specifically the B Zone, really understanding how does this work as we codevelop, how does this work independently, what's the right business decision, and that takes time to evaluate.

是的，尼爾，我想說的是，我們做了一些評估工作。我在上次電話會議中特別強調了 B 區，真正了解我們共同開發時如何運作、如何獨立工作、什麼是正確的業務決策，這需要時間來評估。

So that's some of the things that we did dozens of other tests as well. But some of the work that we invested in during the course of '23. Some of the things that we're learning, obviously, we're applying to '24. And then parallel to that was the infrastructure comments that I just went through.

這就是我們還進行了數十項其他測試的一些內容。但我們在 23 年期間投入的一些工作。顯然，我們正在學習的一些東西，我們將應用到「24」。與此並行的是我剛剛經歷過的基礎設施評論。

So I think there's a parallel as we think about what this concentration of activity means. Again, I'll go back to the kind of 2/3, 1/3 of our inventory is in the New Mexico side. So we're not overly leveraging New Mexico versus Texas. Now we're certainly high-grading. We're always trying to drill our best stuff first, but that's no different than what we're doing in other basins. And obviously, other operators are doing as well.

因此，我認為當我們思考這種活動集中意味著什麼時，就會有相似之處。我再說一遍，我們的庫存 2/3、1/3 位於新墨西哥州一側。因此，與德克薩斯州相比，我們並沒有過度利用新墨西哥州。現在我們的等級肯定很高。我們總是試圖先鑽探我們最好的東西，但這與我們在其他盆地所做的沒有什麼不同。顯然，其他業者也在這樣做。

Our next question comes from Charles Meade from Johnson Rice.

我們的下一個問題來自約翰遜賴斯公司的查爾斯·米德。

Clay, I want to take one more run at the Delaware Basin infrastructure question. As you were making your prepared remarks or earlier Q&A, I wrote down there's electricity build-out, compression, processing, takeaway and then also you added water. And so as you look at -- if those are the right categories, as you look at those, could you tell us what's your best guess for '24? Or is it going to be your -- your top 1 or top 2 concerns? And I'm less thinking about where you have work to do, but more in the framing of what's -- which of those is most likely to emerge as a bottleneck in '24?

克萊，我想再討論一下特拉華盆地基礎設施問題。當您發表準備好的演講或先前的問答時，我寫下了電力建設、壓縮、處理、外賣，然後您還添加了水。所以，當你看到時，如果這些是正確的類別，當你看到這些時，你能告訴我們你對 24 世紀的最佳猜測是什麼嗎？或者它會成為您的第一大或第二大問題嗎？我較少考慮哪些地方有工作要做，而是更多地考慮哪些內容最有可能成為 24 世紀的瓶頸？

Yes, Charles, it's a bit of a whack-a-mole kind of opportunity. You bring on these big pads, and you're really focused on gas takeaway or gas compression or processing. But as you bring these wells on, you're also testing water. What we're seeing is with everyone -- the incredible electrical demand, some of the electricity providers are struggling to keep up with that growth.

是的，查爾斯，這有點像是打地鼠式的機會。當您使用這些大墊時，您將真正專注於氣體外帶或氣體壓縮或處理。但當你打開這些井時，你也在測試水。我們所看到的是每個人的情況——令人難以置信的電力需求，一些電力供應商正在努力跟上這種成長。

So we're moving forward with some things to take a little bit more self-control on some of those projects and behind-the-meter opportunities to control our own destiny even a little bit more. But I can tell you as soon as we get 1 issue resolved, there's other issues that pop up, and that's just part of working in a very hot dynamic play.

因此，我們正在推進一些事情，以便對其中一些項目採取更多的自我控制，並在幕後提供更多的機會來控制我們自己的命運。但我可以告訴你，一旦我們解決了一個問題，就會出現其他問題，而這只是在一個非常熱門的動態遊戲中工作的一部分。

Now what I will add to that, and I think is very important, we also see these as not just constraints, but opportunities. And we truly believe if we can identify them early, then we have options. We can wire around the issue. We can figure out how to work with third parties and develop and make sure that, that is built in time for our needs.

現在我要補充一點，我認為非常重要的是，我們也認為這些不僅是限制，而且是機會。我們堅信，如果我們能夠及早識別它們，那麼我們就有選擇。我們可以解決這個問題。我們可以弄清楚如何與第三方合作並開發並確保及時滿足我們的需求。

We can certainly choose to drill alternate wells, reshuffle the portfolio or number four, we can lean in and be aggressive about capturing that value and leveraging that. And you've seen us do that a number of times. So I think the most important thing is being opportunistic, make sure we're really thinking far out ahead and making sure we're acting on that.

我們當然可以選擇鑽替代井，重新調整投資組合或第四，我們可以積極主動地獲得並利用這個價值。您已經多次看到我們這樣做了。所以我認為最重要的是機會主義，確保我們真正考慮長遠並確保我們採取行動。

Charles, this is Rick. I'd like to -- yeah, one thing I'd like to add is we are really pleased with how the midstream providers are building out their capacity. So we think that some here in the next 6 to 8 quarters, you're going to see another 2 Bcf a day, plus or minus, in the Permian Basin of processing. So when you step back and you look at the capital investment on the midstream, if you look at the -- it's a long haul getting pipe built in the ground, getting those getting out of the gas to the Gulf Coast area and then over into Louisiana and there are areas like that for the LNG facilities. We just think the -- the right amount of focus is being placed on it, and I feel very confident future.

查爾斯，這是瑞克。我想——是的，我想補充的一件事是，我們對中游提供者如何增強其能力感到非常滿意。因此，我們認為，在接下來的 6 到 8 個季度中，您將在二疊紀盆地的加工過程中看到每天另外 2 Bcf（上下）。因此，當你退後一步，看看中游的資本投資時，如果你看看——在地下建造管道，將這些管道從天然氣輸送到墨西哥灣沿岸地區，然後再輸送到墨西哥灣沿岸地區，這是一個漫長的過程。路易斯安那州也有類似的液化天然氣設施區域。我們只是認為——我們對它給予了適當的關注，我對未來感到非常有信心。

And the other thing I'd say, I've got is a pretty good time to interject this, but we continue to see growth into Mexico. That is a market that has grown from 2 Bcf a day up 6, 7 Bcf a day, and there's no basin more well suited for that, I think, than the Permian when you start looking at Western margins of the Permian Basin. So whether you're on the Delaware side, the Midland side, you're going to benefit I think, from that Mexican growth over the next decade or 2.

我想說的另一件事是，現在是插入這一點的好時機，但我們繼續看到墨西哥的成長。這個市場已經從每天 2 Bcf 成長到每天 6、7 Bcf，當你開始關註二疊紀盆地的西部邊緣時，我認為沒有比二疊紀盆地更適合這個市場了。因此，無論你是在特拉華州還是米德蘭州，我認為你都會從墨西哥未來十年或兩年的成長中受益。

Clay I was going to say I came up -- I consider using that term whack-a-mole, but I came up with the term cycling bottlenecks instead.

克萊 我本來想說我想到了——我考慮使用“打地鼠”這個術語，但我想出了“循環瓶頸”這個術語。

You're more eloquent than I am.

你比我更能言善道。

Maybe a follow-up question. Well, you feel free to use that one. A follow-up question perhaps for Jeff. Jeff, I think you clearly sent the message that you guys are tilting towards buybacks in the current circumstances that you see. But I wonder if you could elaborate a bit more on the framework that you guys have used to come to that conclusion. And with an eye towards, if we do have the happy evolution, where your stock price does go up at what point does it flip back towards the -- more towards a variable dividend?

也許是一個後續問題。好吧，你可以隨意使用那個。也許是傑夫的後續問題。傑夫，我認為你清楚地傳達了這樣的訊息：在你所看到的當前情況下，你們傾向於回購。但我想知道你們是否可以詳細說明你們用來得出這個結論的框架。著眼於，如果我們確實有愉快的演變，你的股價確實會上漲，在什麼時候它會轉向——更多地轉向可變股息？

Yes. I appreciate that, Charles. And I think your last comment is important because that's why we want to maintain flexibility and we believe the framework that we have today allows for that as we kind of navigate the different market conditions and whether that's specific to Devon or on a more macro basis.

是的。我很感激，查爾斯。我認為你最後的評論很重要，因為這就是我們想要保持靈活性的原因，我們相信我們今天擁有的框架允許我們在不同的市場條件下進行導航，無論這是特定於德文郡還是更宏觀的基礎。

As it relates to how we evaluate the share repurchase, I think I've talked about this in the past, but just like you all, we have our own internal models, obviously, around intrinsic value, but we also watch closely how our peers are trading, how we're trading relative to them. And I think without question, you've seen compression of our multiple over the last 12 months.

由於它涉及我們如何評估股票回購，我想我過去已經討論過這一點，但就像你們所有人一樣，我們顯然有自己的內部模型，圍繞內在價值，但我們也密切關注我們的同行如何正在交易，我們相對於他們的交易方式。我認為毫無疑問，過去 12 個月我們的本益比有所壓縮。

And so, where we sit today, it feels pretty clear to us. Given what we know and how we feel about the go-forward business, which I thought Clay did a great job of articulating our game plan here over the next 12 months, we feel like it's the right time to jump in and be more aggressive on the share repo than we've been in the past.

因此，我們今天坐的地方，感覺很清楚。鑑於我們對前進業務的了解和感受，我認為克萊在闡明我們未來 12 個月的遊戲計劃方面做得很好，我們覺得現在是介入並更加積極進取的最佳時機股票回購比我們過去的要多。

And so you'll see us execute that over the coming quarters. And it's always a little bit challenging with the earnings blackouts that we have as it relates to the timing of how that plays out. But we've got a game plan to go execute on that and be pretty consistent as we move forward over the next several quarters.

因此，您將看到我們在接下來的幾個季度中執行該計劃。我們的獲利中斷總是有點具有挑戰性，因為這關係到盈利的時間表。但我們已經制定了一個執行計劃，並且在接下來幾季的進展中保持一致。

Our next question comes from Matthew Portillo from TPH.

我們的下一個問題來自 TPH 的 Matthew Portillo。

Maybe starting out a question for Clay. Just curious if you could speak to some of the learnings from the downspacing tests in the Eagle Ford. Maybe as it relates to the type curve performance on those tighter space wells and how many of your (inaudible) in 2023 were impacted by these tests versus kind of the high grading plan heading into 2024 that might improve that capital efficiency?

也許可以向克萊提出一個問題。只是好奇您是否可以談談從鷹福特的縮減測試中獲得的一些經驗教訓。也許因為它與那些更狹窄空間井的類型曲線性能有關，以及 2023 年有多少（聽不清楚）受到這些測試的影響，而不是進入 2024 年可能提高資本效率的高分級計劃？

Yes. Thanks for the question, Matt. I'd say it's all very much a work in progress. Definitely, the South Texas Eagle Ford area is a maturing basin. Similar to Williston, but very different in many ways. The rock is incredibly forgiving in the sense of downspacing, refracs.

是的。謝謝你的提問，馬特。我想說這一切都在進行中。毫無疑問，南德克薩斯州伊格爾福德地區是一個成熟的盆地。與威利斯頓相似，但在許多方面都有很大不同。從縮小空間、折射的角度來看，岩石具有令人難以置信的寬容度。

We continue to find and uncover new ways to extract more and more of that oil in place. So we're very encouraged with that. Now, that said, it doesn't always come out exactly as planned. I would say it was less about the learnings around downspacing more a little bit about regional. And so as we moved into specific areas, we found that the recipe from what we call the Black Hawk area or kind of our legacy business isn't exactly the same recipe as we should apply to our Falcon, the new assets.

我們繼續尋找和發現新的方法來提取越來越多的石油。所以我們對此感到非常鼓舞。話雖如此，但結果並不總是完全按照計劃進行。我想說，這不是關於縮小空間的學習，更多是關於區域性的。因此，當我們進入特定領域時，我們發現我們所謂的黑鷹地區或我們的傳統業務的配方與我們應用於獵鷹（新資產）的配方並不完全相同。

And so some of those learnings certainly have accounted for the results in '23. We have a little bit less activity during this quarter. So you saw the oil production roll over. Second quarter third. I'll caution you to look back, make sure you look back at the first quarter because we had about a 10% improvement or increase in production quarter-over-quarter from 1% to 2% and then down from 2% to 3%. So that's more related to activity, less about individual well results. But as we continue to explore refracs, downspacing combinations of how we do this co-development. I would say we're very encouraged about what we're seeing there. And this rock continues to be the rock that keeps on giving.

因此，其中一些經驗教訓肯定已經解釋了 23 年的結果。本季我們的活動略有減少。所以你看到了石油產量的下降。第二季第三。我會提醒你回顧一下，一定要回顧第一季度，因為我們的產量比上一季度提高了約 10%，從 1% 到 2%，然後從 2% 下降到 3% 。因此，這與活動相關，而不是與個人的井結果相關。但隨著我們繼續探索折射，縮小了我們如何進行這種共同開發的組合。我想說，我們對在那裡看到的一切感到非常鼓舞。這塊岩石仍然是不斷奉獻的岩石。

Perfect. And then as a follow-up question, maybe for Rick or for Clay. Like the shift here and further improvement on the capital efficiency into 2024. I guess one of the questions that continues to come up, and Rick highlighted in your prepared remarks that we're kind of in an uncertain time with spare capacity within OPEC and kind of the volatility in the crude markets as well as what might be challenged 2024 gas market.

完美的。然後作為後續問題，也許是針對里克或克萊的。就像這裡的轉變以及到2024 年資本效率的進一步提高。我想這是繼續出現的問題之一，里克在您準備好的演講中強調，我們正處於一個不確定的時期，歐佩克內部有閒置產能，以及原油市場的波動性以及 2024 年天然氣市場可能面臨的挑戰。

Just curious, as you guys think through your capital allocation plans for '24, we're just seeing stand at the moment in the Powder River Basin and the Anadarko just thinking through the return profile there versus areas like the Delaware and is there further optimization that could occur if we end up in a bit of a lower commodity price environment?

只是好奇，當你們思考 24 年的資本分配計劃時，我們只是看到粉河盆地和阿納達科目前的情況，只是考慮那裡與特拉華州等地區的回報情況，是否有進一步的優化如果我們最終處於商品價格較低的環境中，這種情況可能會發生嗎？

Yes. It's a really good question, Matt. I think I'm going to start with the Anadarko there. So we actually were running 4 rigs. We dropped a rig as you probably recall, midyear with the [Del] partnership we have is going really well even though the strip is supportive for gas, the outlook we think is really good. One of the things that we were faced with or we made the decision to do is just scale back capital just a little bit and going from 4 to 3 rigs.

是的。這是一個非常好的問題，馬特。我想我將從阿納達科號開始。所以我們實際上運行了 4 台鑽孔機。您可能還記得，我們​​放棄了一個鑽機，年中我們與[Del]的合作關係進展得非常順利，儘管該地帶對天然氣有支持，我們認為前景非常好。我們面臨或決定要做的一件事就是稍微縮減資本，將鑽機數量從 4 台減少到 3 台。

We think that's the right thing to do. Obviously, the promote keeps those returns in a pretty good spot. So that's how we're looking at that. I think as we go into -- going to '24, we plan to keep a 3-rig program is our plan. Now up in the Powder, we -- our original plan contemplated running -- running 2 rigs, possibly even considering a third rig up there just because of some of the encouraging results. But the fact of the matter is that we are still challenged somewhat on the well cost a little bit.

我們認為這是正確的做法。顯然，促銷活動使這些回報保持在相當不錯的位置。這就是我們的看法。我認為，當我們進入 24 年時，我們的計劃是保留 3 台鑽機專案。現在在粉雪場，我們——我們最初的計劃考慮運行——運行兩台鑽機，甚至可能考慮在那裡安裝第三台鑽機，只是因為一些令人鼓舞的結果。但事實是，我們仍然在油井成本方面面臨一些挑戰。

And some of that is just a function of your activity level being somewhat depressed. Quite honestly, they're slower than you need to drive those costs down. We've made a decision to be just returns focused and make sure that we get that capital efficiency increase that we referred to. And the best way for us to do that is drop that back to 1 rig versus the plan 2 or 3. It's a -- I think it's the right thing to do short term. Now longer term, we know that you need to put additional capital in there. So we're working with service providers. We can see some creative ways to do that. But that's probably something we'd need to contemplate more into 2025. But we are seeing some -- some really, really encouraging results. So real pleased with that asset at that point in time.

其中一些只是您的活動水平有所下降的結果。老實說，它們的速度比您降低成本所需的速度要慢。我們決定只專注於回報，並確保我們獲得我們提到的資本效率提高。我們做到這一點的最佳方法是將其放回 1 台設備，而不是計劃 2 或 3。我認為短期內這樣做是正確的。從長遠來看，我們知道您需要在那裡投入額外的資金。因此，我們正在與服務提供者合作。我們可以看到一些創造性的方法來做到這一點。但這可能是我們在 2025 年需要更多考慮的事情。但我們看到了一些——一些非常非常令人鼓舞的結果。當時對該資產非常滿意。

Our next question comes from Kevin MacCurdy from Pickering Energy Partners.

我們的下一個問題來自 Pickering Energy Partners 的 Kevin MacCurdy。

We appreciate all the details on 2024. You've talked about oil production taking a little bit before bouncing back up to what it looks like to maybe close to current levels at year-end 2024. And my question is, given that lumpiness, do you see the 2024 CapEx range is a good proxy for maintenance CapEx? And would that production level and the maintenance scenario would be kind of at the current production levels?

我們對 2024 年的所有細節表示讚賞。您談到石油產量在 2024 年底反彈到可能接近當前水平之前需要一點時間。我的問題是，考慮到這種波動性，您認為2024 年資本支出範圍可以很好地代表維護資本支出嗎？生產水準和維護方案是否符合目前的生產水準？

Yes, I've always struggled with the maintenance capital question because there's always a way to kind of game the system. If you just want to focus on oil or gas or whatever, I would say this is a maintenance capital with a longer-term mindset in mind because we are still doing work to really prove up future value. We're doing things to always kind of enhance our portfolio. At the same time, maintenance capital of essentially roughly the same production excuse me, '23 to '24. And then as we look out to '25, we're at least that level, maybe a little bit of growth in '25 based on this investment. So yes, rough numbers, I would call that a maintenance capital, but a healthy maintenance capital.

是的，我一直在努力解決維護資金問題，因為總有一種方法可以欺騙系統。如果你只想專注於石油或天然氣或其他什麼，我會說這是一個具有長期思維的維護資本，因為我們仍在努力真正證明未來價值。我們正在做一些事情來始終增強我們的產品組合。同時，抱歉，23 年至 24 年的生產維護成本基本上相同。然後，當我們展望 25 年時，我們至少達到了這個水平，基於這項投資，我們可能會在 25 年實現一點點增長。所以，是的，粗略的數字，我稱之為維護資本，但是是健康的維護資本。

I think that clarity is helpful. And as a follow-up on the Eagle Ford, spending there has been a bit high this year. But my takeaway from your CapEx budget is that it will be a little bit more efficient in 2024. Is that the right takeaway? And I respect you guys -- that you guys are still nailing down the details, but anything you can share a high level on what's driving maybe better efficiency in the Eagle Ford?

我認為清晰是有幫助的。作為 Eagle Ford 的後續產品，今年的支出有點高。但我從你們的資本支出預算中得出的結論是，到 2024 年，它的效率會更高一些。這是正確的結論嗎？我尊重你們——你們仍在敲定細節，但你們能分享一下什麼是推動 Eagle Ford 提高效率的高水準內容嗎？

Yes. We are certainly still nailing things down, and this is all preliminary based on the Board's approval. But I think directionally, you're right. We had looked at what is the constant 2 rigs for us to operate scenario look like? What does a 1 rig for us to operate scenario look like? And then, of course, we're working with our JV partners, BPX on activity level for that side of the base in the Black Hawk side.

是的。我們當然仍在敲定事情，這一切都是基於董事會批准的初步決定。但我認為從方向上來說，你是對的。我們已經了解了我們操作的恆定 2 台鑽孔機的場景是什麼樣的？供我們操作的 1 台鑽孔機場景是什麼樣的？當然，我們正在與我們的合資夥伴 BPX 就黑鷹基地一側的活動水平進行合作。

And so I think what we're working towards and we're finalizing looks like a high-graded activity consistent with what we've talked about in the other basins. And you'll see a really nice uptick in efficiency -- capital efficiency from that. Now still bear in mind, I mean, we're doing some really inventive things there. We're looking forward on a lot of projects. We're not starving the asset of how do we create more value moving forward. That's very important to us that we're balancing the short-term wins with also longer-term value creation.

因此，我認為我們正在努力和正在完成的工作看起來像是一項高級別活動，與我們在其他流域所討論的內容一致。你會看到效率——資本效率——的一個非常好的提升。現在仍然請記住，我的意思是，我們正在那裡做一些真正有創意的事情。我們期待著很多項目。我們並不缺乏如何創造更多價值的資產。這對我們來說非常重要，我們要平衡短期勝利與長期價值創造。

Our next question comes from Paul Cheng from Scotiabank.

我們的下一個問題來自豐業銀行的 Paul Cheng。

Two questions, please. you guys have been indeed over there and that you have seen a lot of improvement. So if I'm looking out for the next 1 or 2 years, where is the area that you see the most opportunity for you to further improve? The second question is on the bottom. You've been struck over there. I think from that standpoint, what have we learned from the RimRock acquisition in terms of future A&D due diligence process and all that. And whether Bakken, given your substantially reducing activity, what's the role for your longer-term portfolio? Do they have a role there?

請教兩個問題。你們確實去過那裡，並且看到了很多進步。那麼，如果我展望未來一兩年，您認為最有機會進一步改進的領域在哪裡？第二個問題在最下面。你在那邊被擊中了。我認為從這個角度來看，我們從 RimRock 收購中學到了未來 A&D 盡職調查流程等方面的經驗。鑑於您的活動大幅減少，巴肯是否對您的長期投資組合起什麼作用？他們在那裡發揮作用嗎？

Paul, this is Rick. I'm going to start, and then I'll put it over to Clay and Jeff, but I'm going to start with that second part. I think one of the most interesting things we've learned with the RimRock acquisition, some of which was a little bit of a surprise, some was not. And that was our spacing RimRock and Devon that had historically somewhat slightly different development schemes, if you will. And I think what we have learned is it, it really drove home the point that Devon's approach was probably the right approach as far as density per spacing unit.

保羅，這是瑞克。我要開始，然後我會把它交給克萊和傑夫，但我將從第二部分開始。我認為我們從 RimRock 收購中學到的最有趣的事情之一，其中有些有點令人驚訝，有些則不然。這就是我們的 RimRock 和 Devon 的間隔，如果你願意的話，它們在歷史上的開發計劃略有不同。我認為我們學到的是，它確實讓我們明白了這一點：就每間隔單位的密度而言，德文郡的方法可能是正確的方法。

We were a little more relaxed. In other words, we had wider spacing. And I think that's why we had better recoveries. But some of those -- sometimes those points aren't really made until you have several years of production history, and I think that's what we have learned with this. The other thing I'd say is that -- we also have seen the impacts of something that's not controllable, like weather. And last year, not do we ask too much or make excuses, but the fact of the matter is we had one of the worst weather events in that area in the last century.

我們稍微放鬆了一些。換句話說，我們的間距較寬。我認為這就是我們恢復得更好的原因。但其中一些——有時這些要點只有在你有幾年的生產歷史之後才能真正提出，我認為這就是我們從中學到的東西。我要說的另一件事是——我們也看到了一些不可控因素的影響，例如天氣。去年，我們並沒有要求太多或找藉口，但事實是我們經歷了上世紀該地區最嚴重的天氣事件之一。

And so timing was not our friend at that time, but you just have to, I think, think through that as you execute, implement your capital program. So I think those are the things we've learned as far as I can assure you the Williston has an absolute place in our portfolio going forward. It's an area we've worked in a long time. We've had a great track record up there over the last decade, going back to the WPX days.

因此，當時時機對我們來說不是朋友，但我認為，你必須在執行、實施你的資本計劃時仔細考慮這一點。因此，我認為這些就是我們所學到的東西，我可以向您保證，威利斯頓在我們未來的投資組合中佔有絕對的地位。這是我們長期工作的領域。回溯到 WPX 時代，過去十年我們在這方面取得了良好的業績記錄。

And we see that continuing. We still see opportunities to even be better yet in the future. So we've learned quite a bit from this and we've applied that. I can tell you, I can personally challenged the team to step up during that period, sometimes that happens, when you're a leader, sometimes you push a little too hard. And I think that's a learning for us as well. So Clay, what else you want to add to those questions?

我們看到這種情況仍在繼續。我們仍然看到未來有機會做得更好。所以我們從中學到了很多東西並且我們已經應用了它。我可以告訴你，我可以親自挑戰團隊在那段時間挺身而出，有時會發生這種情況，當你是領導者時，有時你會有點太用力了。我認為這對我們來說也是一種學習。那麼，Clay，您還想對這些問題補充什麼嗎？

Yes. I'll go back to kind of what are we excited about when we look at the footprint that we have today, as we think about innovation in that space. Paul, last week, I did a couple of days of intensive conversation did an off-site with my team. And we're really focused on what distinguishes us 2 years from now, 5 years from now. And most importantly, what are the actions that we can take to ensure that exceptional performance.

是的。當我們思考該領域的創新時，當我們審視我們今天的足跡時，我將回顧我們對什麼感到興奮。保羅，上週，我與我的團隊在場外進行了幾天的深入交談。我們真正關注的是 2 年後、5 年後我們的獨特之處。最重要的是，我們可以採取哪些行動來確保卓越的表現。

I think the 2-year conversations, there was a lot about recovery factor. How do we intent -- how do we intentionally go after more of that oil that we already knows there. We sit in 5 amazing basins, have incredible land footprints already under our feet. And how do we think about extracting just a little bit more from the resources that we have.

我認為在兩年的談話中，有很多關於恢復因素的內容。我們如何意圖——我們如何有意識地追求更多我們已經在那裡知道的石油。我們坐落在 5 個令人驚嘆的盆地中，腳下已經留下了令人難以置信的土地足跡。我們如何考慮從我們擁有的資源中提取更多的資源。

So a lot about stimulation design, a lot about integrated approach, thinking like geologists and reservoir engineers and completion engineers all at the same time in extracting that value really leaning in some of the great work that we found around refracs, some of the other things that we have. And as we move towards 5-year really things start coming in more focus around things like enhanced oil recovery, how are we progressing those learnings. And again, leveraging the amazing footprint that we already have today, how do we enhance that ballpark 10% recovery to 12%, 15%, 20%, essentially doubling the resource that we have.

因此，很多關於增產設計，很多關於綜合方法，像地質學家、油藏工程師和完井工程師一樣思考，同時提取價值，真正依賴我們在折射、其他一些事情上發現的一些偉大工作。我們有。隨著我們邁向五年期，真正的事情開始更加關注提高石油採收率等問題，我們如何推進這些學習。再說一次，利用我們今天已經擁有的驚人足跡，我們如何將大約 10% 的回收率提高到 12%、15%、20%，基本上使我們擁有的資源翻倍。

Specifically, the learnings around the acquisitions that was a little bit more than a year ago. We're still a pretty fresh team. I can tell you, the acquisitions were fantastic. Value-creating opportunities for us. They fit the portfolio. And what we really learned is that we need to do a better job in the process of the handoff and how do we pick those opportunities up.

具體來說，就是一年多前圍繞收購的經驗教訓。我們仍然是一支非常新鮮的團隊。我可以告訴你，這些收購非常棒。為我們創造價值的機會。他們適合投資組合。我們真正學到的是，我們需要在交接過程中做得更好，以及我們如何抓住這些機會。

When these companies, the prior owners may have a little different mindset on how far ahead they are on infrastructure, on permitting, on how they manage the day-to-day operations things like ESG or a very high important factor to us. So moving through that kind of -- that transition period, I think we have gotten materially better from the first to the second and when the third one comes, we'll make another material improvement.

這些公司的前任所有者可能對他們在基礎設施、許可、如何管理日常營運等方面的領先程度有一些不同的看法，例如 ESG 或對我們來說非常重要的因素。因此，在經歷那種過渡期時，我認為我們從第一個到第二個階段已經取得了實質的進步，當第三個階段到來時，我們將做出另一項實質改進。

So real pleased with the team, the work that David's team, the greater team does in that evaluation. We're in every day [RimRock] look hard at everything. We keep an exceptionally high bar and we'll continue to get very much better on that handoff and really improving the ultimate value from these opportunities.

對團隊、大衛的團隊、更大的團隊在評估中所做的工作非常滿意。我們每天都在 [RimRock] 認真審視一切。我們保持著極高的標準，我們將繼續在交接方面做得更好，並真正提高這些機會的最終價值。

Our next question comes from Scott Hanold from RBC.

我們的下一個問題來自加拿大皇家銀行的斯科特·漢諾德。

I think this one is for Jeff. And just to be a little bit more pointed on the kind of the buyback kind of theme. Your stock is down circa 30% year-to-date, certainly underperforming the peer group by quite a bit. Like why not do buybacks in the third quarter? I know you -- obviously, the stock is bit down here in the last, say, week or so, but it had points during the third quarter to where it was at similar levels. Just kind of curious why not 3Q and more so going forward.

我認為這是給傑夫的。只是為了更具體地說明回購類型的主題。今年迄今為止，您的股票下跌了約 30%，表現肯定遠遠落後於同業。例如為什麼不在第三季回購？我知道你——顯然，該股在過去一周左右的時間裡略有下跌，但在第三季度曾達到類似水平。只是有點好奇為什麼不推出 3Q 以及更多的產品。

Yes, Scott, you bet. The answer for the third quarter is real simple. As you'll recall, at the end of the second quarter, we disclosed our cash balance a dip below $500 million. As you might recall, when we rolled out our framework 3 years ago, one of the key criteria was that we maintain a cash balance in excess of that $500 million level.

是的，斯科特，你敢打賭。第三季的答案非常簡單。您可能還記得，在第二季末，我們揭露的現金餘額降至 5 億美元以下。您可能還記得，3 年前我們推出框架時，關鍵標準之一是我們維持現金餘額超過 5 億美元的水平。

So our first priority was to take care of the maturity that we had in the third quarter. Second priority was to build back our cash balance above that $500 million level, which, as you saw in our reported results here in the third quarter, we've done that. So that married with our commitment to deliver on the variable dividend that we talked about in the previous quarter. We weren't in a position to buy any incremental shares in the quarter.

因此，我們的首要任務是照顧好第三季的成熟度。第二個優先事項是將我們的現金餘額恢復到 5 億美元以上的水平，正如您在第三季報告的業績中看到的那樣，我們已經做到了這一點。因此，這與我們在上一季談到的提供可變股息的承諾結合在一起。我們無法在本季購買任何增量股票。

But going forward. We've -- I think we've hopefully clearly telegraphed today our intention on the share repo as well as the potential impact to the variable dividend going forward. And so we look forward to getting to our next call in February and kind of talking about the results.

但繼續前進。我想我們希望今天已經清楚地傳達了我們對股票回購的意圖以及對未來可變股息的潛在影響。因此，我們期待著二月份的下一次電話會議並討論結果。

Okay. Got it. And then my follow-up is, when you look at oil production next year around 315,000, do you see that as your new baseline? I know, I think, a prior kind of, I guess, market expectation would be closer to 320. And so is 315 the new baseline? And was -- is that driven more about like where you think it's best sustainable at? Or is it more reflecting of your view of the uncertainty in the macro and just wanting to kind of taper it a little bit?

好的。知道了。然後我的後續問題是，當你看到明年的石油產量約為 315,000 時，你是否認為這是你的新基準？我知道，我認為，之前的一種市場預期會更接近 320。那麼 315 是新的基準嗎？這是否更多地取決於您認為最可持續的方面？或者它更反映了您對宏觀不確定性的看法，只是想稍微減少一點？

Yes. We think it's a new baseline. The fact is we -- not too dissimilar from what the consensus was is that 320 was probably certainly doable. We've done it 2 or 3 quarters in a row. But the reality is, as we continue to see some constraints, some weather issues and real-world impacts, we think that 315 is absolutely the right baseline for us.

是的。我們認為這是一個新的基準。事實上，我們與共識並沒有太大不同，320 肯定是可行的。我們已經連續兩三個季度這樣做了。但現實是，隨著我們繼續看到一些限制、一些天氣問題和現實世界的影響，我們認為 315 對我們來說絕對是正確的基線。

Well, I appreciate everyone's interest in Devon day. I see that we're at the top of our time. So if you have any further questions, please don't hesitate to reach out to the Investor Relations team at any time. Once again, thank you for your interest, and have a good day.

嗯，我感謝大家對德文郡日的興趣。我發現我們正處於時代的巔峰。因此，如果您有任何其他問題，請隨時聯繫投資者關係團隊。再次感謝您的關注，祝您有美好的一天。

Thank you for joining. You may now disconnect your lines. Thank you.

感謝您的加入。現在您可以斷開線路。謝謝。