Earthstone Energy Inc (ESTE) 2020 Q1 法說會逐字稿

Good morning, and welcome to Earthstone Energy's Conference Call. (Operator Instructions)

早安，歡迎參加 Earthstone Energy 的電話會議。 （操作員說明）

As a reminder, this conference call is being recorded. Joining us today from Earthstone are Robert Anderson, Chief Executive Officer and President; Mark Lumpkin, Executive Vice President and Chief Financial Officer; and Scott Thelander, Vice President of Finance. Mr. Thelander, you may now begin.

謹此提醒，本次電話會議正在錄音中。今天加入我們的是 Earthstone 執行長兼總裁羅伯特·安德森 (Robert Anderson)；倫普金 (Mark Lumpkin)，執行副總裁兼財務長；和財務副總裁 Scott Thelander。塞蘭德先生，您現在可以開始了。

Thank you, and welcome to our first quarter conference call. Before we get started, I would like to remind you that today's call will contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 as amended and Section 21E of the Securities Exchange Act of 1934 as amended.

謝謝您，歡迎參加我們的第一季電話會議。在我們開始之前，我想提醒您，今天的電話會議將包含經修訂的 1933 年證券法第 27A 條和經修訂的 1934 年證券交易法第 21E 條含義內的前瞻性陳述。

Although management believes these statements are based on reasonable expectations, they can give no assurance that they will prove to be correct. These statements are subject to certain risks, uncertainties and assumptions as described in the earnings announcement and quarterly report on Form 10-Q that we released yesterday, and in our annual report on Form 10-K for 2019.

儘管管理階層認為這些陳述是基於合理預期，但他們不能保證這些陳述將被證明是正確的。這些陳述受到我們昨天發布的收益公告和 10-Q 表格季度報告以及 2019 年 10-K 表格年度報告中所述的某些風險、不確定性和假設的影響。

These documents can be found in the Investors section of our website, www.earthstoneenergy.com. Should one or more of these risks materialize or should underlying assumptions prove incorrect, actual results may vary materially. This conference call also includes references to certain non-GAAP financial measures. Reconciliations of these non-GAAP financial measures to the most directly comparable measure under GAAP are contained in our earnings announcement released yesterday.

這些文件可以在我們網站 www.earthstoneenergy.com 的投資者部分找到。如果其中一項或多項風險成為現實，或者基本假設被證明不正確，則實際結果可能會產生重大差異。本次電話會議也提到了某些非公認會計準則財務指標。這些非公認會計原則財務指標與公認會計原則下最直接可比較指標的對帳包含在我們昨天發布的收益公告中。

Also, please note information recorded on this call speaks only as of today, May 7, 2020. Thus, any time-sensitive information may no longer be accurate at the time of any replay. A replay of today's call will be available via webcast by going to the Investors section of Earthstone's website and also by telephone replay.

另請注意，本次通話記錄的資訊僅截至今天（2020 年 5 月 7 日）。今天的電話會議將透過網路廣播重播，您可以造訪 Earthstone 網站的投資者部分，也可以透過電話重播。

You can find information about how to access those on our earnings announcement released yesterday. Today's call will begin with comments from Robert Anderson, our CEO, regarding near-term strategy and operations, followed by remarks from our CFO, Mark Lumpkin, regarding financial matters and performance and then some closing comments from Robert.

您可以在我們昨天發布的收益公告中找到有關如何存取這些資訊的資訊。今天的電話會議首先由我們的首席執行官羅伯特·安德森(Robert Anderson) 就近期戰略和運營發表評論，然後由我們的首席財務官馬克·倫普金(Mark Lumpkin) 關於財務問題和業績發表評論，最後由羅伯特發表總結評論。

I'll now turn the call over to Robert.

我現在將把電話轉給羅伯特。

Thank you, Scott, and good morning, everyone. We appreciate you're joining us for our first quarter conference call. Like many of you, we are working remotely from our homes this morning or with very limited staff in our offices as we follow the guidelines of health experts and regulatory agencies. The safety of our employees is top priority, and we are pleased that we've been able to manage and conduct both field and non-field functions effectively thus far. Non-field personnel have been working remotely since middle of March using information technology we previously invested in. Our field personnel that must go to a work location are following the safety protocols that we put in place and are performing their job responsibilities with no issues so far.

謝謝你，斯科特，大家早安。我們感謝您參加我們的第一季電話會議。和你們中的許多人一樣，我們今天早上在家中遠距工作，或者在我們辦公室的工作人員非常有限，因為我們遵循健康專家和監管機構的指導方針。員工的安全是重中之重，我們很高興迄今為止能夠有效地管理和執行現場和非現場職能。自三月中旬以來，非現場人員一直在使用我們先前投資的資訊科技進行遠端工作。遠的。

We appreciate the diligence of our team and service provider partners. These are challenging times, and I thank our staff for their continued focus on achieving our goals and objectives and for doing their part to keep themselves and the community safe. We had a good first quarter and hit on our internal targets for production, adjusted EBITDAX and cash costs, which Mark will discuss in more detail shortly. But I'd like to highlight that our low-cost business practices and our prudent balance sheet management have continued to serve us well, especially in the current environment.

我們感謝我們的團隊和服務提供者合作夥伴的勤奮。這是一個充滿挑戰的時代，我感謝我們的員工持續專注於實現我們的目標和目標，並盡自己的一份力量來確保自己和社區的安全。我們第一季表現良好，並實現了內部生產目標、調整後的息稅折舊攤提前利潤和現金成本，馬克很快就會對此進行更詳細的討論。但我想強調的是，我們的低成本業務實踐和審慎的資產負債表管理繼續為我們提供良好服務，尤其是在當前環境下。

With the energy industry facing unprecedented challenges due to the COVID-19 pandemic and resulting historic low oil prices, we are fortunate to have a very strong hedge position, consisting of fixed price swaps that afford the maximum downside protection and low leverage with ample liquidity. We also have no long-term service contracts, no minimum volume commitments, and earlier in the year, we negotiated extensions on all our 2020 drilling obligations, which gives us the flexibility to actively adjust our capital program and curtail production as we see fit. We expect to focus on cash flow generation and reducing debt for the remainder of 2020.

由於新冠肺炎(COVID-19) 大流行以及由此導致的歷史性低油價，能源行業面臨著前所未有的挑戰，我們很幸運擁有非常強大的對沖頭寸，包括提供最大下行保護的固定價格掉期和具有充足流動性的低槓桿。我們也沒有長期服務合同，沒有最低產量承諾，今年早些時候，我們談判延長了 2020 年所有鑽井義務，這使我們能夠靈活地積極調整資本計劃並在我們認為合適的情況下削減產量。我們預計 2020 年剩餘時間將重點放在現金流產生和減少債務。

With the deterioration of oil prices, we began shutting in low volume, high-cost producers in mid-April. As prices declined further in late April to what looked like single-digit net oil prices for May, we decided to voluntarily reduce a significant portion of production from our operated wells for the near term. We currently expect to curtail or shut in 70% to 80% of our net operated May production. Where we are a non-operated partner, the shut-ins appear to be a little lower and therefore, we estimate that shut-ins for May could range from 55% to 70% of total net company production volumes.

隨著油價惡化，我們從四月中旬開始關閉小批量、高成本的生產商。隨著 4 月底油價進一步下跌至 5 月的個位數淨油價，我們決定在短期內自願減少已營運油井的大量產量。我們目前預計將削減或關閉 5 月淨營運產量的 70% 至 80%。如果我們是非營運合作夥伴，停產似乎要低一些，因此，我們估計 5 月的停產可能占公司總淨產量的 55% 至 70%。

We made this decision in spite of the fact that our direct operating costs across all our assets averaged $6.50 per BOE in the first quarter, and with production taxes, get approximately $8.60 per BOE of operating costs. As you can appreciate, this has been a moving target over the past week or 2 and is subject to further change. While it seems to us as though a significant volume of voluntary curtailments is occurring across the industry and that forced shut-ins seem less likely in the near term, we cannot guarantee such will be the case for all of May or in future months as storage potentially fills up and demand recovery remains uncertain.

儘管第一季我們所有資產的直接營運成本平均為每桶油當量 6.50 美元，加上生產稅，我們還是做出了這項決定，每桶油當量的營運成本約為 8.60 美元。正如您所理解的，這在過去一周或兩週內一直是一個不斷變化的目標，並且可能會進一步變化。雖然在我們看來，整個行業正在發生大量自願限電，而且短期內強制關閉的可能性似乎不大，但我們不能保證整個 5 月或未來幾個月都會出現這種情況，因為存儲可能會被填滿，需求復甦仍不確定。

Our actions for June shut-ins will be determined based on prices later this month as well as how these other factors look to be playing out. Accordingly, we have withdrawn our 2020 production guidance as well as our per unit cost guidance, and we will revisit this later in the year as we gain further clarity on production volumes and oil prices.

我們六月的停產行動將根據本月稍後的價格以及這些其他因素的表現來決定。因此，我們撤回了 2020 年產量指導以及單位成本指導，隨著產量和油價的進一步明確，我們將在今年稍後重新審視這一點。

As a brief operational update in March, we announced that we reduced our capital program to a range of $50 million to $60 million for 2020, and we're not making any changes to that guidance. In the first quarter, we reported capital expenditures of $41.8 million so the annual spend is largely complete. In late May, we expect to release our 1 operated rig, which is in the Permian Basin, drilling on our 6-well pad in our Ratliff project in Upton County, Texas.

作為 3 月的簡短營運更新，我們宣布將 2020 年的資本計畫減少至 5,000 萬至 6,000 萬美元，並且我們不會對該指導進行任何更改。第一季度，我們報告的資本支出為 4,180 萬美元，因此年度支出已基本完成。 5 月下旬，我們預計將釋放我們位於二疊紀盆地的 1 個營運鑽機，在德克薩斯州厄普頓縣 Ratliff 項目的 6 井平台上進行鑽探。

Obviously, we are quite disappointed that this crisis is causing us to lose the strong momentum we had worked hard to create in the Permian Basin. As an example of our continued focus on capital efficiency during the first quarter, we completed and brought online 3 gross and net operated wells that were drilled in late 2019 on our WTG project in Reagan County.

顯然，我們對這場危機導致我們失去在二疊紀盆地努力創造的強勁勢頭感到非常失望。作為我們在第一季持續關注資本效率的一個例子，我們完成了 3 口總作業井和淨作業井，這些井於 2019 年底在雷根縣的 WTG 專案上鑽探並上線。

These 3 wells achieved an all-in drilling, completion and equipment cost per lateral foot of about $760, about a 10% reduction over the 2019 average cost per foot. We also had 15 gross or 3.1 net non-operated wells brought online in Martin County during the quarter.

這 3 口井的每側英尺總鑽井、完井和設備成本約為 760 美元，比 2019 年每英尺平均成本降低約 10%。本季度，我們在馬丁縣還有 15 口總未作業井或 3.1 口淨未作業井上線。

Also during the first quarter, we finished drilling a 5-well project on our Hamman 30 Unit that was in process at year-end. And as I mentioned, we plan to finish drilling the 6-well Ratliff pad, which is in progress now, but we will delay the completions of all 11 wells and the drilling of future wells until there is an improvement in oil prices. So our adjusted capital budget results in bringing online 3 operated wells and the 3.1 net non-operated wells. At this point, we expect no additional new wells coming online in 2020.

同樣在第一季度，我們完成了 Hamman 30 裝置上的 5 口井專案的鑽探，該專案已於年底進行。正如我所提到的，我們計劃完成目前正在進行中的 6 口井 Ratliff 平台的鑽探工作，但我們將推遲所有 11 口井的完成以及未來井的鑽探，直到油價有所改善。因此，我們調整後的資本預算導致上線 3 口營運井和 3.1 口淨非營運井。目前，我們預計 2020 年不會再有新井上線。

With that, I'll turn it over to Mark to review the financials.

這樣，我會將其交給馬克來審查財務狀況。

Thank you, Robert. As we did in the fourth quarter call, we're going to start today with a recap of our balance sheet and liquidity, particularly given the current market conditions. On March 27, 2020, our borrowing base under our senior secured revolving credit facility was set at $275 million. Despite the much lower price deck assumed by the banks in the recent determination, the borrowing base was only reduced by 15% from our previous borrowing base, which we think is a reflection of the quality of our assets and financial profile. As of March 31, our outstanding borrowings under the credit facility were $152 million, a reduction of 11% compared to the $170 million in outstanding borrowings as of December 31.

謝謝你，羅伯特。正如我們在第四季度電話會議中所做的那樣，我們將從今天開始回顧我們的資產負債表和流動性，特別是考慮到當前的市場狀況。 2020 年 3 月 27 日，我們的優先擔保循環信貸安排下的借款基礎定為 2.75 億美元。儘管銀行在最近的決定中假設的價格要低得多，但藉款基礎僅比我們先前的借款基礎減少了 15%，我們認為這反映了我們的資產品質和財務狀況。截至 3 月 31 日，我們在信貸安排下的未償還借款為 1.52 億美元，比截至 12 月 31 日的 1.7 億美元未償還借款減少了 11%。

And I'll remind you that the debt we have drawn under the credit facility is our only outstanding debt. As of March 31, we had approximately $5.1 million in cash and approximately $123 million unused borrowing capacity for a total of approximately $128.1 million of funds available.

我要提醒您的是，我們根據信貸安排提取的債務是我們唯一的未償債務。截至 3 月 31 日，我們擁有約 510 萬美元現金和約 1.23 億美元未使用借款能力，可用資金總額約為 1.281 億美元。

In response to the dramatic decline in oil prices in March, we hedged our 2020 -- excuse me, in March, we reduced our 2020 capital plan by 67% to a range of $50 million to $60 million. While heavily hedged for 2020 before the COVID-19 crisis impacted oil prices, we have continued to build our hedge book, including having added incremental oil hedge volumes in March for the second quarter and the third quarter to more closely match our PDP profile. Given that nearly all of our PDP oil production is hedged at a WTI price of $57 per barrel for 2Q through 4Q and that we have initiated actions to reduce our 2020 cash G&A by a targeted 25% from our previous plan, we do expect to generate significant cash flow beginning in the second quarter of 2020.

為了因應3月份油價的大幅下跌，我們對2020年進行了對沖——請問，3月份，我們將2020年的資本計劃削減了67%，至5000萬至6000萬美元的範圍。儘管在COVID-19 危機影響油價之前，我們在2020 年進行了大量對沖，但我們仍在繼續建立對沖賬簿，包括在3 月份增加第二季度和第三季度的石油對沖交易量，以更接近我們的PDP 狀況。鑑於第二季至第四季幾乎所有 PDP 石油產量都以每桶 57 美元的 WTI 價格進行對沖，並且我們已採取行動，將 2020 年現金管理費用比之前的計劃減少 25%，我們確實預計將產生2020年第二季開始出現大量現金流。

So this puts us in a strong financial position to improve our working capital position and further reduce our borrowings in our credit facility to provide additional financial cushion and flexibility. As an aside, on use of expected free cash flow in the near term, I would expect that during the second quarter, we will work down our working capital deficit, not considering hedge assets and liabilities quite a bit. And I would expect to have a bit higher debt balance at quarter end 2Q versus at quarter end 1Q on that basis.

因此，這使我們處於強大的財務狀況，以改善我們的營運資金狀況，並進一步減少我們的信貸安排借款，以提供額外的財務緩衝和靈活性。順便說一句，關於近期預期自由現金流的使用，我預計在第二季度，我們將減少營運資本赤字，而不是考慮對沖資產和負債。在此基礎上，我預計第二季末的債務餘額將略高於第一季末。

Now looking at our 2020 first quarter financial metrics and starting with the top line, revenues for the first quarter were $45.1 million, with oil contributing about 91% of revenues. From a production standpoint, our first quarter sales volumes averaged 15,767 barrels of oil equivalent per day and were comprised of approximately 61% oil with 19% natural gas and 19% natural gas liquids.

現在來看看我們 2020 年第一季的財務指標，從營收開始，第一季的營收為 4,510 萬美元，其中石油約佔營收的 91%。從生產角度來看，我們第一季的平均銷售量為每天 15,767 桶油當量，其中約 61% 為石油，19% 為天然氣，19% 為液態天然氣。

Now let me take a minute to discuss our hedge position in a bit more detail. As of quarter end, we had approximately 8,000 barrels of oil per day swapped for the remainder of the year at an average WTI price of $57. This is a bit sculpted, starting at 9,000 barrels per day in 2Q, stepping down to 8,000 barrels per day in 3Q and then down to 7,000 barrels per day in 4Q. And we have 4,000 barrels per day of oil swapped in 2021, above $55 WTI prices.

現在讓我花一點時間更詳細地討論我們的對沖部位。截至季度末，我們每天大約有 8,000 桶石油用於今年剩餘時間，WTI 平均價格為 57 美元。這有點經過精心設計，從第二季每天 9,000 桶開始，第三季降至每天 8,000 桶，然後第四季降至每天 7,000 桶。 2021 年，我們每天有 4,000 桶石油互換，高於 55 美元的 WTI 價格。

We also largely have the underlying basis differential swapped and on the natural gas side, we continue to benefit from strong hedges, though this is less impactful. Just to provide some context on the financial benefit of our hedge book, as of March 31, the mark-to-market of our hedge book was approximately $93 million.

我們也很大程度上交換了基本基差，在天然氣方面，我們繼續受益於強有力的對沖，儘管影響較小。為了提供有關我們對沖帳簿財務收益的一些背景信息，截至 3 月 31 日，我們對沖帳簿的按市價計價約為 9,300 萬美元。

In terms of commodity pricing during the first quarter, our oil prices averaged $46.59 per barrel, which was right around 100% of NYMEX. Natural gas prices were $0.65 per Mcf or about 33% of NYMEX and natural gas liquids prices were $11.01 per barrel. This resulted in an unhedged average realized price of $31.46 per barrel of oil equivalent during the quarter.

就第一季的大宗商品定價而言，我們的油價平均為每桶 46.59 美元，約為 NYMEX 的 100%。天然氣價格為每立方英尺 0.65 美元，約為 NYMEX 的 33%，液體天然氣價格為每桶 11.01 美元。這導致本季未對沖的平均實現價格為每桶石油當量 31.46 美元。

Our hedging program significantly improved our price realizations to $52.62 per barrel for oil, $1.19 per Mcf for gas, with NGL which is not hedged, remaining at $11.01. And this resulted in an average realized price, including the hedge settlements of $38.25 per barrel of oil equivalent during the quarter.

我們的對沖計劃顯著提高了石油實現價格至每桶 52.62 美元，天然氣每立方英尺 1.19 美元，未對沖的 NGL 仍保持在 11.01 美元。這導致平均實現價格（包括本季每桶石油當量 38.25 美元的對沖結算）。

On the expense side, we again achieved our targeted sub-$10 per barrel of LOE and cash G&A, with LOE coming in at $6.51 per BOE and cash G&A coming in at $3.09 per BOE for $9.60 per BOE in aggregate. We have targeted a 25% reduction in cash G&A on an absolute basis versus our prior guidance, which is around the low end of the updated $15.5 million to $16.5 million guidance for the year. We aim to achieve this primarily through a reduction in executive compensation, but also through some further cost-saving initiatives that are in progress.

在費用方面，我們再次實現了每桶低於 10 美元的 LOE 和現金 G&A 目標，其中 LOE 為每桶油當量 6.51 美元，現金 G&A 為每桶油當量 3.09 美元，總計每桶油當量為 9.60 美元。我們的目標是與先前的指導相比，現金管理費用絕對減少 25%，大約是今年更新的 1550 萬美元至 1650 萬美元指導的下限。我們的目標主要是透過減少高階主管薪酬來實現這一目標，同時也透過一些正在進行的進一步節省成本的措施來實現。

We do really highly value our employee base and remain very focused as a management team on doing everything in our control to keep our employees fully utilized. We are making an investment in our people, and it's a team effort, and we'll continue to view our employees in that light.

我們確實非常重視我們的員工基礎，並且作為管理團隊仍然非常專注於盡我們所能控制的一切，以確保我們的員工得到充分利用。我們正在對我們的員工進行投資，這是團隊的努力，我們將繼續從這個角度看待我們的員工。

We also reduced our interest expense by about 5% from the fourth quarter, and our production and ad valorem taxes were 22% lower sequentially. From an income standpoint, we reported GAAP net income in the first quarter of $36.7 million or $0.57 per diluted share, which reflected the pretax gain of $99.8 million on our derivative contracts.

我們也比第四季減少了約 5% 的利息支出，生產稅和從價稅較上季降低了 22%。從營收的角度來看，我們第一季的 GAAP 淨利潤為 3,670 萬美元，即稀釋後每股收益 0.57 美元，這反映了我們衍生性商品合約的稅前收益 9,980 萬美元。

The 2020 first quarter results also included a $60.4 million impairment expense, of which $42.8 million was related to an oil and gas property impairment, driven by low commodity prices and $17.6 million was a goodwill impairment. Our adjusted net income, a non-GAAP measure, was $8.2 million or $0.13 per adjusted diluted share for the first quarter. We reported adjusted EBITDAX, also a non-GAAP measure, of $38.2 million in the first quarter. Please see our earnings release for explanations and reconciliations of non-GAAP measures.

2020年第一季業績還包括6,040萬美元的減損支出，其中4,280萬美元與石油和天然氣財產減損有關，這是由於大宗商品價格低迷造成的，1,760萬美元是商譽減損。第一季調整後淨利潤（非公認會計準則衡量標準）為 820 萬美元，即調整後稀釋每股收益 0.13 美元。我們報告第一季調整後的 EBITDAX（也是非 GAAP 衡量標準）為 3,820 萬美元。請參閱我們的收益發布，以了解非公認會計原則措施的解釋和調節。

With that, I'll turn it back over to Robert.

這樣，我會把它轉回給羅伯特。

Thanks, Mark. Again, I'll reiterate, we had a really good first quarter. While the severely depressed commodity prices persist, we will be even more diligent about cost control and efficient management practices while we continuing -- while continuing to focus on health and safety of our employees and contractors as well as the protection of the environment and the communities where we work.

謝謝，馬克。我再次重申，我們第一季的表現非常好。儘管大宗商品價格持續嚴重低迷，但我們將更加努力地控製成本和提高管理效率，同時繼續關注員工和承包商的健康和安全以及對環境和社區的保護我們工作的地方。

As I said earlier, we continue to manage and produce our properties as we wind down drilling and completion activities, experiencing no complications arising from our COVID-19 mitigation efforts. We are also focused on maintaining our strong balance sheet position throughout the year and continue to target being below 1x levered at year-end 2020. Our strategy has not changed despite the current, challenging industry conditions. We continue to focus on low-cost, efficient operations and on building scale through value-enhancing

正如我之前所說，隨著鑽井和完井活動的結束，我們將繼續管理和生產我們的資產，沒有遇到因我們的 COVID-19 緩解工作而出現的任何併發症。我們也致力於全年保持強勁的資產負債表狀況，並繼續目標是到 2020 年底槓桿率低於 1 倍。我們繼續專注於低成本、高效運營，並透過增值來擴大規模

(technical difficulty)

（技術難度）

be plentiful in this distressed environment. We expect to be a part of the consolidation that will occur as a result. Before we take your questions, we would like to say thank you again to our dedicated personnel who are working smart and adapting to this new challenges we have. Our hearts go out to those being affected by this pandemic and our deepest thanks to those working tirelessly to help us persevere through it. We will continue to focus on making the best long-term decisions for our company and key stakeholders and believe our experience and resilience will make Earthstone stronger in the days and years ahead.

在這個苦難的環境中，一定要豐富。我們預計將成為由此發生的整合的一部分。在回答您的問題之前，我們要再次向我們敬業的人員表示感謝，他們聰明地工作並適應我們面臨的新挑戰。我們的心與那些受到這場流行病影響的人同在，並向那些不知疲倦地幫助我們堅持到底的人們致以最深的謝意。我們將繼續專注於為公司和主要利益相關者做出最佳的長期決策，並相信我們的經驗和韌性將使 Earthstone 在未來的日子和歲月中變得更加強大。

With that, operator, we'll turn it over to questions.

這樣，接線員，我們將把它轉入問題。

(Operator Instructions) The first question comes from the line of Brad Heffern with RBC Capital Markets.

（操作員說明）第一個問題來自 RBC Capital Markets 的 Brad Heffern。

I have a couple of questions on the shut-ins. So first of all, what was the rationale behind the shut-ins? Because obviously, it's not close to the op cost. So was there some components of difficulty marketing the barrels? Or was it purely based on sort of the forward curve and the outlook for oil?

我有幾個關於關閉的問題。那麼首先，關閉背後的理由是什麼？因為顯然，它與營運成本並不接近。那麼，這些酒桶的銷售是否存在一些困難呢？或者它純粹基於某種遠期曲線和石油前景？

It's really, Brad, based on not wanting to sell our oil at $5, $6, $7, $8 is what it was appearing to look like in late April. So we made that decision. And it's a game time decision to adjust that as we move through the month.

布拉德，這確實是基於我們不想以 5 美元、6 美元、7 美元、8 美元的價格出售我們的石油，這就是 4 月底的情況。所以我們做出了這個決定。隨著整個月的推移，這是一個遊戲時間的決定來調整它。

Okay. Fair enough. And I guess, can you talk about the confidence that you have that the wells will come back to something like the rates that they were at? And then also, does this have any implications for the lease agreements?

好的。很公平。我想，您能談談您對油井將恢復到原來水準的信心嗎？另外，這對租賃協議有什麼影響嗎？

Sure. One thing is from the lease agreement standpoint, we're not shutting wells very long, and we're rotating wells throughout our different leases. So in general, wells will produce, at some point, a little bit during the month. So that satisfies that issue. We have confidence that our wells will come back to where they were based on wells that were frac hit in the past, coming back to the line, the forecast. And again, we're not shutting wells in for a very long time. And the majority of our wells, other than a few new wells, have been on long enough that we don't think there's any detrimental effects. The other thing is, we're not sitting in an old waterflood where you've got momentum built up in energy and things like that, that create issues from a reservoir dynamic standpoint. So we just felt like the reservoir risk was pretty darn low.

當然。一件事是，從租賃協議的角度來看，我們不會關閉油井很長時間，並且我們會在不同的租賃期內輪換油井。因此，一般來說，油井在一個月內的某個時候會生產一點。這樣就滿足了這個問題。我們有信心，我們的油井將回到過去壓裂井的水平，回到預測線。再說一次，我們在很長一段時間內都不會關閉油井。除了幾口新井外，我們的大多數井都已經運行了足夠長的時間，我們認為不會產生任何有害影響。另一件事是，我們並沒有坐在舊的注水中，那裡的能量和類似的東西積累了動力，從油藏動態的角度來看，這會產生問題。所以我們只是覺得水庫風險非常低。

Okay. Got it. And then at the end of your comments, Robert, you mentioned that you might be part of the resulting consolidation from this. I guess how do you think about the contrast between there likely being distressed assets out there, but also the uncertainty of the situation and probably the desire to also just hunker down?

好的。知道了。羅伯特，在您的評論結束時，您提到您可能會成為由此產生的整合的一部分。我猜你如何看待可能存在的不良資產、情況的不確定性以及可能只是想靜觀其變之間的對比？

Yes. I think both of those things are true. There's going to be distressed assets and therefore, sales of properties. We'll participate in those properties that make sense. And then you're going to have the asset market shut down until there's a little bit more stability in prices. With the movement in prices here recently, that should help sellers who, for whatever reason, need to sell or want to sell, maybe again, foregoing stress in the fall, something like that. It just -- these times create opportunities and we're going to try and take advantage of gaining some more scale through this.

是的。我認為這兩件事都是真的。將會出現不良資產，因此也會出現房產銷售。我們將參與那些有意義的專案。然後資產市場就會關閉，直到價格變得更穩定。隨著最近價格的變動，這應該會幫助賣家，無論出於何種原因，需要出售或想要出售，也許再次，擺脫秋季的壓力，類似的事情。只是——這些時代創造了機會，我們將嘗試利用這個機會來獲得更大的規模。

Our next question is from the line of Neal Dingmann with SunTrust.

我們的下一個問題來自 SunTrust 的 Neal Dingmann。

My first question just on your future activity. I'm just wondering, are you able to address the prospects efficiently going forward with the 1 rig? Or would you occasionally -- again, I know that makes a lot of sense now and especially given the pristine balance sheet you all continue to keep. But I'm just wondering, is there a point to either because HBP or just whatever with this acreage going forward where it would make sense from either -- because of that reason or just efficiency that it would make sense that if you come back, you'd have to come back with more than 1 rig, 2 or 3 rigs or anything like that?

我的第一個問題是關於你未來的活動。我只是想知道，您能否有效解決 1 號鑽孔機的前景問題？或者你偶爾會——再說一遍，我知道現在這很有意義，特別是考慮到你們都繼續保持原始的資產負債表。但我只是想知道，是否有一個點是因為 HBP 或只是因為這個面積的發展，無論是因為這個原因還是僅僅因為效率，如果你回來，這都是有意義的，您必須攜帶超過1 台、2台或3 台或類似的設備回來嗎？

That's sort of a mouthful, Neal. So we -- at some price, we're going to be comfortable to come back. And what is that exact price? I don't know what it is, but definitely a 4 handle gets us a little more excited about coming back with the rigs, especially if we can see reduced costs. I think we're going to have to build up the efficiency when we come back because we will -- you put a new team back on the field, it's going to take a little bit of time.

尼爾，這有點拗口。所以我們——在一定的價格下，我們會放心地回來。確切的價格是多少？我不知道它是什麼，但 4 個手柄肯定會讓我們對帶著鑽孔機回來更加興奮，特別是如果我們可以看到成本降低的話。我認為當我們回來時我們必須提高效率，因為我們會——你讓一支新球隊回到球場上，這將需要一些時間。

From an HBP status, and obligation status, we pushed everything out a year. So we've got lots of time to evaluate. And if prices remained at some low level to where the economics didn't justify, then we would go back to those same groups and ask for another annual extension or in some cases, we may, depending on the size of the acreage position, just let those go by the wayside. It depends what the environment looks like. But we're optimistic that oil prices are going to recover, and we're going to get back to work. And we think sometime in 2021, whether it's January or maybe it takes all year, but we think that, that's the case.

從 HBP 狀態和義務狀態來看，我們把一切都推遲了一年。所以我們有很多時間來評估。如果價格保持在某個低水平，達到經濟不合理的水平，那麼我們會回到這些相同的群體並要求再次年度延期，或者在某些情況下，我們可能會根據種植面積的大小，只是讓這些都拋到一邊吧。這取決於環境是什麼樣的。但我們對油價將會復甦持樂觀態度，我們也將重返工作崗位。我們認為 2021 年的某個時候，無論是 1 月還是可能需要一整年，但我們認為情況就是這樣。

And then just lastly on the non-op, what's -- any thoughts? I guess I had heard -- I don't search too often on just like what CrownQuest and -- any thoughts or forecast for what you're thinking there for the remainder of the year?

最後，關於非操作，有什麼想法嗎？我想我聽說過——我不會像 CrownQuest 那樣經常搜尋——對今年剩餘時間你的想法或預測有什麼想法或預測嗎？

So speaking to all of our parties who operate in areas for us, they have all put our particular acreage and any new activity on hold. We had some plans in Midland County with one of our parties to drill a couple of wells. And then when prices started deteriorating rapidly in March, we put that on hold as a group. So right now, there's no discussion of having any capital plans for the rest of this year.

因此，與在我們地區開展業務的所有各方交談時，他們都暫停了我們的特定土地和任何新活動。我們計劃在米德蘭縣與我們的一個團隊一起鑽幾口井。然後，當三月價格開始迅速惡化時，我們將其作為一個整體擱置。因此，目前還沒有討論今年剩餘時間的任何資本計劃。

Our next question comes from the line of Dun McIntosh with Johnson Rice.

我們的下一個問題來自鄧·麥金托什和約翰遜·賴斯的對話。

Actually most of my questions were asked, but a quick question on the revolver. You all got out there early in just a 15% cut. Wondering if you get any sense from the banks as we look out to the fall redetermination and if prices do materialize that, do you think that kind of the level you're at here -- do you feel pretty comfortable with the $275 million? And how they're thinking about the bank's exposure to the industry?

實際上我的大部分問題都被問到了，但有一個關於左輪手槍的簡單問題。你們都早早就退出了，只有 15% 的折扣。想知道當我們期待秋季重新確定時，您是否從銀行那裡得到任何信息，如果價格確實實現了這一點，您認為您現在所處的水平 - 您對 2.75 億美元感到滿意嗎？他們如何看待銀行在該行業的風險敞口？

Hey, Mark. You handle that one, please.

嘿，馬克。請你處理一下。

Yes. I'll pick up on that, Dun. Thanks, that's a great question. We obviously -- when prices fell pretty sharply in March, we made some pretty decisive decisions even before oil got to a worse spot. And to us, we're looking at the economic decisions, and that's true as it relates to the CapEx. It's also true as it relates to the shut in.

是的。我會繼續討論這一點，鄧。謝謝，這是一個很好的問題。顯然，當三月油價大幅下跌時，我們甚至在油價跌至更糟糕的水平之前就做出了一些相當果斷的決定。對我們來說，我們正在考慮經濟決策，這與資本支出有關。這也是事實，因為它與封閉有關。

Our number one job is to be good stewards of our resources for our shareholders. And then secondly, for our employees. That's what we're going to do every step of the way, whether it's making decisions on, well, do we want to sell a barrel of oil for $8 or $10? Or do we want to not sell it? Realize the hedges and sell that barrel later for a higher price or the CapEx, how we spend our G&A, et cetera. And in terms of the borrowing base, we did go early because we saw some signs, certainly not to the extent that occurred, but we saw some signs that things could get a little bit choppy and the banks could be a bit nervous and yes, certainly, we're seeing more of that play out as more folks have gotten the processes done.

我們的首要任務是為股東妥善管理我們的資源。其次，對於我們的員工。這就是我們每一步要做的事情，無論是做出決定，我們想以 8 美元還是 10 美元的價格出售一桶石油？或者我們不想賣它？實現對沖並稍後以更高的價格或資本支出出售該桶，我們如何花費我們的一般行政費用等等。就借貸基礎而言，我們確實很早就採取了行動，因為我們看到了一些跡象，當然還沒有達到所發生的程度，但我們看到一些跡象表明情況可能會變得有點不穩定，銀行可能會有點緊張，是的，當然，隨著越來越多的人完成了流程，我們會看到更多這樣的事情發生。

Realistically, because we set the rig down, and we're not bringing on any new wells, I mean the borrowing base is just going to go down between now and the fall because you're really looking at a natural PDP decline for the most part. Now can you get into some math about if you shut in x barrels for x period of time, does it actually push some of the PDP further out? Yes. But we're honestly not doing that. We've got enough liquidity that we feel very comfortable at the rate that we'll be paying down debt and kind of what the PDP roll off, is that even what the decks the banks are using now, we're going to have plenty of liquidity. Now that does go into our thinking of CapEx and acquisitions and maybe to answer a little bit of Brad's question on the M&A, there are a lot of distressed situation out there. We're not going to become one of them, whether it's organically or doing some acquisition.

實際上，因為我們關閉了鑽井平台，並且我們沒有引入任何新井，我的意思是從現在到秋季，借款基礎只會下降，因為您實際上看到的是最自然的 PDP 下降部分。現在你可以進行一些數學計算，如果你將 x 桶關閉 x 時間，它實際上是否會將一些 PDP 進一步推出？是的。但老實說我們並沒有這麼做。我們擁有足夠的流動性，我們對償還債務的速度感到非常滿意，而且 PDP 推出的方式是，即使銀行現在使用的平台，我們也將擁有足夠的流動性流動性。現在這確實進入了我們對資本支出和收購的思考，也許可以回答布拉德關於併購的一些問題，那裡有很多令人沮喪的情況。我們不會成為其中之一，無論是有機的還是進行一些收購。

And as it relates to the borrowing base, we're looking at that, and we've done our forecast and feel comfortable with where things are headed, frankly, not just later this year, but even next year if we weren't drilling. And with the hedges, we could not produce the barrels and still pay down pretty significant amounts of debt between now and the end of this year, especially, but also next year.

由於它與借款基礎有關，我們正在考慮這一點，並且我們已經完成了預測，並對事情的發展方向感到滿意，坦率地說，不僅是今年晚些時候，甚至是明年（如果我們不進行鑽探的話） 。透過對沖，我們無法生產石油，但從現在到今年年底，尤其是明年，我們仍然無法償還大量債務。

All right. Great. And then a follow-up, I was wondering if you could provide a little color on your marketing arrangements. I know that one of the things that's kind of been brought to light as prices have collapsed has been the role factor in these marketing agreements. And I think it's gotten a little better as contango has flattened out some. But kind of what are you seeing on that front? And kind of what role does that play in your decision to start opening up the chokes on some of those wells that you've got cut back right now?

好的。偉大的。然後是後續行動，我想知道您是否可以為您的行銷安排提供一些色彩。我知道隨著價格暴跌而暴露出來的事情之一就是這些行銷協議中的作用因素。我認為隨著期貨溢價趨於平緩，情況已經好轉。但你在這方面看到了什麼？這對您決定開始打開目前已削減的一些油井的扼流圈有何作用？

Maybe I'll stick with first part of that question and then turn it over to Robert. In terms of the roles, yes, it's typically plus or minus $0.25 to $0.50 and with what happened with prices collapsing especially in the near months, you ended up in a situation where the role is calculated on basically the month before. So by late April, we knew the role was going to be minus $6 or $7 or $8. We also knew that we're going to get a pretty good negative differential on basins, both in Permian and Eagle Ford as Cushing over that time was trading at a premium to those 2 basins. That absolutely was a critical piece of our decision on the shut-ins for May. It looks a lot better looking forward to how that will apply to June. Probably by -- if you take the role plus the diff and it's probably about $10 better. And that's a different economic decision. And then certainly, strips risen since late April. So you do think about that different from an economic decision.

也許我會堅持這個問題的第一部分，然後交給羅伯特。就角色而言，是的，通常是正負 0.25 美元到 0.50 美元，而且隨著價格暴跌，特別是在近幾個月內，您最終會遇到角色基本上是根據前一個月計算的情況。因此，到 4 月底，我們知道該職位的薪水將是 - 6 美元、7 美元或 8 美元。我們也知道，我們將在二疊紀盆地和伊格爾福德盆地獲得相當不錯的負差價，因為當時庫欣的交易價格高於這兩個盆地。這絕對是我們五月停工決定的關鍵部分。看起來更期待這將如何適用於六月。可能是——如果你接受這個角色加上差異，可能會好10美元左右。這是一個不同的經濟決策。當然，自四月下旬以來，帶鋼價格有所上漲。所以你確實會考慮與經濟決策不同的問題。

In terms of the marketing, maybe I'll kick that over to Robert to pick up what is going on there. And certainly, that's something everybody's had to be a lot more focused on given the disruption we're currently seeing with shut-ins and talking curtailment and no curtailment, et cetera.

在行銷方面，也許我會把它交給羅伯特來了解那裡發生的事情。當然，考慮到我們目前看到的停工、談論限電和不限電等造成的破壞，這是每個人都必須更加關注的事情。

Yes. I would just say that on the marketing front, we're dealing daily with our purchasers, both relative to May and what June volumes we're thinking about. And we have a multiple -- multitude of purchasers that we're dealing with, and it gets complicated. We have some on truck, we have some on pipe. And so its nominations are in progress or thinking about it and all that.

是的。我只想說，在行銷方面，我們每天都在與買家打交道，無論是與我們正在考慮的五月銷量還是六月銷量有關。我們正在與眾多的購買者打交道，這變得非常複雜。我們有一些在卡車上，有一些在管道上。因此，它的提名正在進行中或正在考慮等等。

So as we look to June, what June might look like, I'm getting more comfortable that we're going to turn more volume on in June. However, as shut-ins come back on, we may be our worst enemy and prices may take a turn for the other direction, and we're going to have to just play that out as we get closer to the beginning of the month.

因此，當我們展望六月時，六月可能會是什麼樣子，我對我們將在六月增加銷量感到更加放心。然而，隨著停工重新開始，我們可能是我們最大的敵人，價格可能會轉向另一個方向，當我們接近本月初時，我們將不得不解決這個問題。

Our next question comes from the line of Jeff Grampp with Northland Capital.

我們的下一個問題來自 Jeff Grampp 與 Northland Capital 的對話。

I thought it was interesting, it looks like you guys added on Slide 10, kind of a future pad size expectation of 4 to 5 wells per pad. Obviously, a big step-up from where you've been historically. Should we think about that as being basically happening irrespective of the overall rig count that you guys have? And I guess where I'm headed with that is you guys seemingly are maybe more comfortable, even in a 1-rig scenario with the extended cycle times and that maybe the efficiencies more than offset the extension there? Am I thinking about that right?

我認為這很有趣，看起來你們在幻燈片 10 上添加了未來的墊尺寸預期，每個墊有 4 到 5 個孔。顯然，與歷史上的水平相比，這是一個巨大的進步。我們是否應該認為這種情況基本上正在發生，而不管你們擁有的總鑽機數量如何？我想我的想法是，你們似乎可能更舒服，即使在循環時間延長的 1 台鑽機場​​景中，也許效率不僅僅是抵消了那裡的延長？我這樣想對嗎？

There's a couple of things. You picked up on efficiency, and that's definitely true. The other thing is reservoir dynamics, Jeff. So stacked benches, making sure you develop them in the best way possible and kind of capture as much as the resource economically as possible. That seems to be another benefit. So those 2 combined give us the pad size. So right now, we're drilling a 6-well, finishing up on the 6-well pad. And (inaudible) going forward or in that range, 4 or 5 on average wells per pad. So we hope that we can pick up where we are leaving off on the efficiency side and also gain that on the reservoir side.

有幾件事。您提高了效率，這絕對是事實。另一件事是油藏動力學，傑夫。如此堆疊的長凳，確保以盡可能最好的方式開發它們，並盡可能經濟地捕獲盡可能多的資源。這似乎又是一個好處。所以這兩個數值的結合就是焊盤的尺寸。現在，我們正在鑽探 6 口井，並完成 6 口井平台的鑽探。 （聽不清楚）未來或在該範圍內，每個墊平均有 4 或 5 個井。因此，我們希望能夠在效率方面繼續我們未完成的工作，並在水庫方面取得進展。

Got it. Got it. Understood. And more kind of a modeling question, I don't know if this is more for Mark. But any expectations for where we should think about oil mix kind of heading the next few quarters, understanding that there's some GOR implications with kind of going to a PDP blowdown mode? Do you have a sense of when that maybe kind of stabilizes out and on what level?

知道了。知道了。明白了。更像是建模問題，我不知道這是否更適合馬克。但是，對於我們應該考慮未來幾季的石油混合走向，了解進入 PDP 排污模式會產生一些 GOR 影響，有什麼期望嗎？您是否知道這種情況何時會穩定下來以及穩定在什麼水平？

I mean honestly, it doesn't look drastically different to us. We actually tick down the oil content just a little bit. That probably wouldn't be a bad thing, but it's not like we think it's 55%. We think it's still pretty close to 60%, 62%. That being said, obviously, because we've got sort of an indefinite volume of shut-ins for an indefinite time, as the technical guys all remind me frequently, it's not as easy as just flipping a light switch and everything is back on exactly like it was. But generally speaking, we're not expecting a huge degradation in the oil content.

我的意思是，老實說，它對我們來說看起來並沒有太大不同。實際上，我們稍微降低了油含量。這可能不是一件壞事，但並不像我們想像的那樣是 55%。我們認為仍然非常接近 60%、62%。話雖這麼說，顯然，因為我們在無限期的時間內有無限量的關閉，正如技術人員經常提醒我的那樣，這並不像只需按一下電燈開關那麼簡單，一切都會完全恢復正常就像以前一樣。但一般來說，我們預期石油含量不會大幅下降。

Our next question comes from the line of John White with ROTH Capital.

我們的下一個問題來自約翰懷特（John White）與羅斯資本（ROTH Capital）的對話。

I don't have a question. I just wanted to say, Robert, with all the experience you've gained with all the crashes that you've been through is really paying off now. You got the company, in my opinion, positioned as well as you possibly could. So congratulations.

我沒有問題。我只是想說，羅伯特，你在經歷過的所有事故中獲得的所有經驗現在真的得到了回報。在我看來，你已經盡可能地為公司定位了。所以恭喜你。

Hey, will you send that note to Frank? Thanks, John. I appreciate it. I have a great mentor. So -- and a great team around us. It's not all me.

嘿，你能把這張紙條寄給弗蘭克嗎？謝謝，約翰。我很感激。我有一位偉大的導師。所以——我們周圍有一個偉大的團隊。這不全是我。

Our next question is from the line of Jason Wangler with Imperial.

我們的下一個問題來自帝國學院的 Jason Wangler。

It may kind of dovetail with the last question there. As you -- Robert, you mentioned kind of rotating the production things. Can you talk about the operating or even capital costs that, that entails as you kind of shut-in wells and bring them back on and things? And then also as you think about getting it back into full production, what would that kind of cost you? And I assume that's kind of budgeted in the budget this year?

這可能與最後一個問題相吻合。正如羅伯特，您提到了輪換生產的方式。您能談談關閉油井並重新啟動之類的操作甚至資本成本嗎？然後，當您考慮將其重新投入全面生產時，您會花費多少成本？我想今年的預算有這樣的預算嗎？

Sure, Jason. Good questions. And part of it is a little bit unknown, but I'll tell you that the ability to cycle from 1 well to the next in a unit makes us confident it will bring these wells back on with very little mechanical issues. Because we're putting chemicals around each wellbore and treating the rods and that kind of thing or -- and we did a good job before we shut in gas lift wells by enhancing the amount of chemicals we treated those wells with and gave them a big squeeze before we shut them in. So that gives us some confidence that when we turn these wells back on, we're not going to have a whole lot of remedial capital that needs to be spent to fix them.

當然，傑森。好問題。其中一部分尚不為人所知，但我會告訴您，在一個裝置中從一口井循環到下一口井的能力使我們相信，它將在幾乎沒有機械問題的情況下使這些井恢復運行。因為我們在每個井眼周圍都添加了化學品，並對鑽桿和類似的東西進行了處理，或者——在關閉氣舉井之前，我們通過增加處理這些井的化學品量並給它們帶來了很大的好處，做得很好。

Now that said, there's going to be some cases, I suspect, where we're going to learn something and go, oops, we would do it maybe a little bit differently in a particular area because each area is a little different, the chemical programs are a little different, definitely between the Eagle Ford and the Midland Basin. But in general, we don't think that there's going to be any material capital to bring all the wells back online.

話雖如此，我懷疑，在某些情況下，我們要學習一些東西，然後，哎呀，我們在特定領域的做法可能會有點不同，因為每個領域都有點不同，化學物質鷹灘和米德蘭盆地之間的計劃略有不同。但總的來說，我們認為不會有任何物質資本來使所有油井恢復運作。

Okay. And then you obviously have the DUCs kind of built up or you will here pretty shortly. As you think about, again, bringing all the wells back on and all that stuff, whenever it's appropriate, would it make sense that you'd probably complete some wells before bringing a rig back on? Or would you think that would be done kind of in tandem when appropriate?

好的。然後你顯然已經建立了 DUC，或者你很快就會在這裡。當你再次考慮，在適當的時候恢復所有油井和所有這些東西，在恢復鑽孔機之前你可能會完成一些油井是否有意義？或者您認為在適當的時候會同時進行嗎？

I think there are 2 different decisions. We get to the end of the year, and oil is hovering where it is today, maybe we go ahead and complete those wells, but we're not bringing a rig back. If oil is 40-ish at the end of the year, we're bringing a rig back and we're completing those wells. And it's a balance between liquidity, cash flow and all that.

我認為有兩個不同的決定。到了年底，石油價格徘徊在今天的水平，也許我們會繼續完成這些油井，但我們不會帶回鑽井平台。如果年底石油價格達到 40 左右，我們就會收回鑽井平台並完成這些油井。這是流動性、現金流等等之間的平衡。

So it is going to be sort of something we continue to watch throughout the year. We're not in a big hurry to bring those -- to complete those 11 wells. And it's somewhat price dependent. I don't really have a price that we're willing to do it. It's more of what the future looks like.

因此，這將是我們全年持續關注的事情。我們並不急著完成這 11 口井。這在某種程度上取決於價格。我真的沒有一個我們願意這樣做的價格。更重要的是未來的樣子。

Our next question is from the line of Noel Parks with Coker & Palmer.

我們的下一個問題來自 Noel Parks 和 Coker & Palmer。

Just had a couple of questions. You mentioned earlier about having extended the lease terms on some of your acreage. And if I'm reading that right, that's not reflected in the 10-K, right, the expiration schedule there?

只是有幾個問題。您之前曾提到延長部分土地的租賃期限。如果我沒看錯的話，這並沒有反映在 10-K 中，對吧，那裡的到期時間表？

That's probably correct because in the K, by the time -- when we filed it, and that's as of 12/31, our obligation drilling was set for the year. And so we did negotiate in a couple of instances where those obligatory wells were pushed out a year.

這可能是正確的，因為在 K 中，當我們提交該文件時，即截至 12 月 31 日，我們的義務鑽探已設定為當年。因此，我們確實在幾次情況下進行了談判，這些強制井被推遲了一年。

Okay. Great. I was just wondering because I took a quick look at the 2019 year-end and compared it to the '18, and numbers seemed like it had gone up, I mean, not a huge amount. So that would make sense that it was after that.

好的。偉大的。我只是想知道，因為我快速瀏覽了 2019 年年底並將其與 18 年進行了比較，數字似乎有所上升，我的意思是，上升幅度並不是很大。所以那是在那之後才有意義的。

Yes.

是的。

And as far as the -- one quick thing, kind of sort of housekeeping. Can you give me a rough idea of where the effective interest rate is headed for second quarter on the credit line? I noticed a note about some interest rate swaps are going to be taking effect this month?

至於──一件快速的事情，一種家事服務。您能給我大致了解第二季信貸額度的實際利率方向嗎？我注意到有關一些利率互換將於本月生效的說明？

Sure, Noel. It's Mark, I'll pick that one up. So what happened here in the past 3 or 4 months is LIBOR has tightened quite a bit, which really was what caused us to look into doing some interest rate swaps. Yes, we've effectively got our underlying LIBOR component swapped at a little under 30 basis points over a 4-year period with some step downs. That's not on all of our debt, but it's probably 75% of it or something like that. In terms of the underlying rate, right now, our kind of regular interest rate is about 3%. I think it's been a little below 3% the last few tranches. But if you use kind of a 3% number for 2Q, that's probably about right relative to where LIBOR is and what the margin above LIBOR in our credit agreement is.

當然，諾埃爾。我是馬克，我會接他的。所以過去三、四個月發生的事情是倫敦銀行同業拆借利率（LIBOR）收緊了很多，這確實是促使我們考慮進行一些利率掉期的原因。是的，我們實際上已經在 4 年期間以略低於 30 個基點的利率進行了基礎倫敦銀行間同業拆借利率 (LIBOR) 成分的互換，並進行了一些下調。這不是我們全部債務的一部分，但可能是 75% 或類似的債務。從基礎利率來看，目前我們的常規利率是3%左右。我認為最近幾期的比例略低於 3%。但如果你對第二季使用 3% 的數字，這可能與 LIBOR 的水平以及我們信貸協議中高於 LIBOR 的保證金大致相符。

Great. And you talked about consolidation, and that's been a topic that's been up quite a bit over the quarters, just with the strength of your balance sheet. And I was wondering in -- to the degree you're hearing about or in touch with some of those properties that might be available. Are you seeing any greater appetite for accepting equity as consideration? It sure seems to me people should want to accept equity, but it doesn't mean it's necessarily happening.

偉大的。您談到了整合，這個話題在幾個季度中已經出現了相當多的話題，只是因為您的資產負債表實力強勁。我想知道您聽說過或接觸過的一些可能可用的房產的程度。您是否認為接受股權作為對價的意願較大？在我看來，人們確實應該接受公平，但這並不意味著它一定會發生。

You said the right thing. It sure seems like people should be wanting to do, but it isn't happening. I think we're just in sort of a frozen state at the moment, and until things thaw out a little bit, what does demand look like, therefore, what do prices look like, then I think there'll be a little bit more appetite by sellers to look at opportunities where they can take equity and grow, whether that's a private or a public for that matter. So we are -- as our track record has proven out, we're always willing to use our equity and bring in a party and grow together.

你說得對。人們似乎確實應該想要這樣做，但它並沒有發生。我認為我們目前正處於一種凍結狀態，直到事情稍微解凍，需求是什麼樣子，因此，價格是什麼樣子，然後我認為會有更多賣家有興趣尋找可以獲得股權並實現增長的機會，無論是私人還是公共。所以我們——正如我們的業績記錄所證明的那樣，我們總是願意利用我們的股權並引入一個團隊並一起成長。

Great. And just -- I don't know if you have any thoughts on this. It strikes me, this is clearly probably a terrible time for people to be trying to unload non-core stuff. It's probably hard enough to get a bid for the really high-quality stuff. And I just wondered, as far as what you're seeing available, have you seen any -- maybe just some of the lower-tier stuff dropping out. Is the overall quality of what you're seeing kind of on the increase? Or is it just as you said, pretty much everything is frozen?

偉大的。只是——我不知道你對此有什麼想法嗎？讓我震驚的是，對於人們試圖卸載非核心內容的人來說，這顯然是一個可怕的時刻。想要買到真正高品質的東西可能已經夠難的了。我只是想知道，就你所看到的可用內容而言，你是否看到任何東西——也許只是一些較低層的東西被淘汰了。您所看到的整體品質是否有所提升？還是像你說的那樣，幾乎所有東西都被凍結了？

The few things I've seen that sort of would peak our interest, are frozen and then the things that I am seeing are -- and that we're seeing as a team are probably areas that have assets that are -- that were probably distressed coming into the beginning of the year and aren't in areas where we're really focused. We're really focused in the Eagle Ford and the Permian. We -- that's our main areas, and we're not going to deviate from that materially.

我所看到的幾件事會激發我們的興趣，被凍結，然後我所看到的事情 - 我們作為一個團隊所看到的可能是擁有資產的領域 - 可能是年初的時候我們很苦惱，而且不在我們真正關注的領域。我們真正關注的是伊格爾福特和二疊紀盆地。我們——這是我們的主要領域，我們不會實質地偏離這一點。

At this time, we've reached the end of our question-and-answer session, and I'll hand the floor back over to Robert Anderson for closing remarks.

現在，我們的問答環節已經結束，我將把發言權交還給羅伯特·安德森進行結束語。

Yes. Thanks, everybody, for listening in today. And as always, we're open to calls and e-mails and look forward to getting through the second quarter. Thanks.

是的。謝謝大家今天的收聽。一如既往，我們願意接受電話和電子郵件，並期待度過第二季。謝謝。

Thank you. This concludes today's conference. You may disconnect your lines at this time. Thank you for your participation.

謝謝。今天的會議到此結束。此時您可以斷開線路。感謝您的參與。