SM Energy Co (SM) 2022 Q3 法說會逐字稿

Good morning. My name is Emma, and I will be your conference operator today. At this time, I would like to welcome everyone to the SM Energy Third Quarter 2022 Financial and Operating Results Q&A. (Operator Instructions). Jennifer Samuels, Vice President of Investor Relations. You may begin.

早上好。我的名字是艾瑪，今天我將成為您的會議接線員。在此，歡迎大家參加SM Energy 2022年第三季度財務和經營業績問答。 （操作員說明）。投資者關係副總裁詹妮弗·塞繆爾 (Jennifer Samuels)。你可以開始了。

Good morning, and thank you for joining us. To answer your questions today, we have our President and CEO, Herb Vogel, and CFO, Wade Pursell. As usual, before we get started, our discussion today may include forward-looking statements and discussion of non-GAAP measures. I direct you to Slide 2 of the accompanying slide deck, Page 5 of the accompanying earnings release, and the Risk Factors section of our most recently filed 10-K and 10-Q, which describe risks associated with forward-looking statements that could cause actual results to differ. We may also refer to non-GAAP measures, please see the slide deck appendix and earnings release for definitions and reconciliations of non-GAAP measures to the most directly comparable GAAP measures and discussion of forward-looking non-GAAP measures. Also, look for our third quarter 10-Q filed this morning.

早上好，感謝您加入我們。今天，為了回答您的問題，我們請來了我們的總裁兼首席執行官 Herb Vogel 和首席財務官 Wade Pursell。像往常一樣，在我們開始之前，我們今天的討論可能包括前瞻性陳述和非公認會計原則措施的討論。我將您引導至隨附幻燈片的幻燈片 2、隨附的收益發布的第 5 頁以及我們最近提交的 10-K 和 10-Q 的風險因素部分，其中描述了與可能導致的前瞻性陳述相關的風險實際結果不同。我們也可以參考非公認會計原則措施，請參閱幻燈片附錄和收益發布，了解非公認會計原則措施與最直接可比的公認會計原則措施的定義和調節以及前瞻性非公認會計原則措施的討論。另外，請查看我們今天早上提交的第三季度 10-Q。

And with that, I will turn it over to Herb for brief opening commentary.

有了這個，我將把它交給 Herb 來做簡短的開場評論。

Thank you, Jennifer. Good morning. Thank you for your interest in SM Energy and joining us this morning. We've reached a really exciting time for our business, and I would like to reiterate that we are very pleased to initiate our return of capital program ahead of expectations. Our initiation of share repurchases in September was earlier than expected, and our first increased fixed dividend gets paid next week. We designed our sustainable dividend program assuming $60 oil and $3 gas, which gives us upside flexibility in a stronger commodity price environment, including acceleration of buybacks.

謝謝你，詹妮弗。早上好。感謝您對 SM Energy 的興趣並今天早上加入我們。我們的業務已經到了一個非常激動人心的時刻，我想重申，我們非常高興能夠提前啟動我們的資本回報計劃。我們在 9 月啟動股票回購的時間比預期的要早，我們第一次增加的固定股息將在下週支付。我們設計了可持續股息計劃，假設石油價格為 60 美元，天然氣價格為 3 美元，這使我們在更強勁的大宗商品價格環境中具有上行靈活性，包括加速回購。

With that, let me now turn it to Emma to open the line for questions. Emma?

有了這個，現在讓我把它交給艾瑪來打開問題線。艾瑪？

(Operator Instructions). First question today comes from the line of Param Lynn with JPMorgan.

（操作員說明）。今天的第一個問題來自摩根大通的 Param Lynn。

This is Zach Parham from JPMorgan. First, just wanted to ask on the oil cut, which moved a little lower in the 4Q guide. Can you just talk about the drivers of that oil cut moving lower and how you expect the oil cut to trip and as we move into 2023?

這是摩根大通的紮克·帕勒姆。首先，只是想問一下石油削減，它在 4Q 指南中移動了一點。您能否談談導致石油減產走低的驅動因素，以及隨著我們進入 2023 年，您預計石油減產將如何發生？

Yes. Zach, that's a question we hear quite a bit. And it's really just driven by how many completions come on in Midland versus how many completions come on in South Texas. We look at it longer term and the quarterly variations in that oil cut really don't make a difference. We just know it's ultimately going to be driven by the capital allocation between South Texas and Permian, but the returns are what they're important, and those returns are very comparable between the 2 areas.

是的。扎克，這是我們經常聽到的一個問題。它實際上只是由米德蘭的竣工數量與德克薩斯州南部的竣工數量驅動。我們從長遠來看，石油削減的季度變化確實沒有什麼影響。我們只知道它最終將由南德克薩斯和二疊紀之間的資本配置驅動，但回報才是他們最重要的，這兩個地區的回報非常可比。

Got it. And then just shifting over to cash return, particularly on the buyback. You did about $20 million in buybacks in September. Can you talk about the pace of that buyback going forward? And is that going to be systematic or purely opportunistic and utilized when you're not blacked out?

知道了。然後只是轉向現金回報，特別是在回購方面。你在 9 月份進行了大約 2000 萬美元的回購。你能談談未來回購的步伐嗎？當你沒有被昏迷時，這會是系統的還是純粹的機會主義和利用？

Yes, it's a great question. This is Wade. Yes, I would say it will be somewhat systematic and methodical but also very opportunistic. We'll certainly take harder looks on down days, I would say that. But it will be done over time, and we'll do some each quarter, and that's just the way we'll play it. We always have a view of NAV, and we certainly believe we're trading below that right now. That makes it easy.

是的，這是一個很好的問題。這是韋德。是的，我會說這會有點系統和有條不紊，但也非常投機取巧。我會這麼說，我們肯定會在下跌的日子裡更加努力地看待。但這會隨著時間的推移而完成，我們每個季度都會做一些，這就是我們的比賽方式。我們總是對資產淨值有看法，我們當然相信我們現在的交易價格低於這個值。這很容易。

Just one quick follow-up. Are you planning on putting in a 10b5-1 plan so that you can buy back stock consistently when you're in blackout periods?

只需快速跟進。您是否打算制定 10b5-1 計劃，以便在停電期間可以持續回購股票？

We have not done that. And I would say right now, that's not the plan, but that could change, but currently not.

我們沒有這樣做。我現在要說，這不是計劃，但可能會改變，但目前不會。

Your next question comes from the line of Timothy Rezvan with KeyBanc.

您的下一個問題來自 Timothy Rezvan 和 KeyBanc 的一行。

In your press release, you mentioned 3 high-performing wells that proved up the Western flank of Sweetie Peck. I was curious if you could provide some more details on the zones? Or what essentially you proved up and why you felt the need to call that out in the release.

在您的新聞稿中，您提到了在 Sweetie Peck 西部側翼的 3 口高效油井。我很好奇您能否提供有關這些區域的更多詳細信息？或者你從本質上證明了什麼，以及為什麼你覺得有必要在發布中指出這一點。

Tim, great question. Yes, those 3 wells were 1-mile step-out to the west from our closest producers, and they were in 3 different zones, and we were quite pleased with the outcome of the wells. So that's why we called those out.

蒂姆，好問題。是的，這 3 口井距我們最近的生產商向西步行 1 英里，它們位於 3 個不同的區域，我們對井的結果非常滿意。所以這就是為什麼我們把它們叫出來。

Okay. And do you have any information on the zones you tested? And how much acreage maybe that derisks freewill?

好的。你有關於你測試的區域的任何信息嗎？多少面積可能會破壞自由意志？

So the one is Middle Spraberry, one is Lower Spraberry and the other Wolfcamp A. And it just moves to prove the proved category an area that would have been in probable or possible previously. So it's more or less what we've been doing, which is, at the same time, we're concentrating on development in the core parts. We're also extending our boundaries, and that's a great example of doing that.

所以一個是Middle Spraberry，一個是Lower Spraberry，另一個是Wolfcamp A。它只是為了證明已證明的類別是一個以前可能或可能的區域。所以這或多或少是我們一直在做的事情，同時，我們正專注於核心部分的開發。我們也在擴展我們的界限，這是一個很好的例子。

Okay. And my follow-up, I wanted to touch on a big topic in the Midland Basin on well degradation. A lot of operators are talking about it. You all seem to have been less impacted looking at your results over time. So I'm just curious what -- how you think you've sidestepped this issue and how you're thinking about that going forward.

好的。在我的後續行動中，我想談談米德蘭盆地的一個大話題，即油井退化。很多運營商都在談論它。隨著時間的推移，你們似乎都受到了較小的影響。所以我只是好奇什麼——你認為你是如何迴避這個問題的，以及你是如何考慮這個問題的。

Yes. Tim, that is an excellent question. So I think if you look in our deck, that's really the whole latter part of the deck is how much time we spend on modeling the fracs and the wells to get the well spacing tuned to each DSU driven by how much oil is in place in each zone, the vertical and horizontal interference. And that's where I think we really stand out with our ability with the proprietary tools we've developed. And we have that one slide where we show the cloud of all the potential completion designs and where we are compared to the competitors in the Midland Basin. So that's why we view ourselves as really having predictable wells for us. It's very easy to predict them. The performance is spot on always with what we expect on a per lateral foot basis and on a per well basis if we've got the lateral length fully delivered. So it's -- that's really what drives it.

是的。蒂姆，這是一個很好的問題。所以我認為如果你看一下我們的甲板，那實際上是甲板的整個後半部分，我們花費了多少時間來對壓裂和油井進行建模，以使井間距調整到每個 DSU 驅動的油量每個區域，垂直和水平干擾。這就是我認為我們憑藉我們開發的專有工具的能力真正脫穎而出的地方。我們有一張幻燈片，其中展示了所有潛在完井設計的雲，並將我們與米德蘭盆地的競爭對手進行了比較。所以這就是為什麼我們認為自己真的擁有可預測的井。很容易預測它們。如果我們已經完全交付了橫向長度，那麼性能總是與我們對每側腳和每口井的預期一致。所以它 - 這就是它的真正驅動力。

Okay. And then if I could just follow up on that, your spacing assumptions over the last couple of years versus how you're thinking about the next 2 years? Are those consistent or have you made any up spacing changes?

好的。然後，如果我能跟進一下，您對過去幾年的間距假設與您對未來兩年的看法？這些是一致的還是你做了任何間距變化？

We have basically lined out by DSU. And after all these years of tuning, there's less and less tuning going on each year. So I think we're pretty much right on. We have done really well with the Dean wells. Those have really outperformed. And so we modified some when we saw zones that performed particularly well. We've done some minor modifications. But in the entirety, it's pretty much the same.

我們基本上已經被 DSU 排好了。經過這麼多年的調整，每年進行的調整越來越少。所以我認為我們非常正確。我們在 Dean Wells 上做得非常好。這些確實表現出色。因此，當我們看到表現特別好的區域時，我們進行了一些修改。我們做了一些小的修改。但總的來說，它幾乎是一樣的。

Your next question comes from the line of Gabriel Daoud with Cowen and Company.

您的下一個問題來自 Cowen and Company 的 Gabriel Daoud。

Gabe here. Thanks for all the prepared remarks last night. I was curious if we could maybe just get an update on some of the supply chain issues that were referenced in the pre-release about a month ago or a couple of weeks ago and then also the offset frac issue. I guess, how long do you think these issues could linger? And just given all the wells that were anticipated to come on and maybe push it to the right a bit, should we expect a pretty nice start to the year 2023?

加佈在這裡。感謝昨晚所有準備好的評論。我很好奇我們能否獲得關於大約一個月前或幾週前預發布中提到的一些供應鏈問題的更新，然後還有抵消壓裂問題。我想，你認為這些問題會持續多久？考慮到所有預期會出現的油井，並且可能會將其推向右側，我們是否應該期待 2023 年有一個不錯的開端？

Yes, great question. We put that early release out to cover the production differences from our expectations. And that was really about 60% from delays and turning wells in line and about 40% from offset activity. The supply chain difficulties really is where we're -- we've got a really finely tuned instrument out there, especially when we're simul fracking or even one we zipper fracking. And if the provider has to wait for parts, that slows us down. If there's slowdowns in trucking, whether that is spare parts or other materials required on the site, that can slow us down. And then for the service sector finding and keeping experienced folks, labor on the job, that's another challenge.

是的，很好的問題。我們發布了早期版本，以彌補與我們預期的生產差異。這實際上是大約 60% 來自延遲和轉井，大約 40% 來自抵消活動。供應鏈的困難確實是我們所在的地方——我們有一個非常精細的儀器，尤其是當我們進行模擬壓裂甚至是拉鍊壓裂時。如果供應商必須等待零件，這會減慢我們的速度。如果卡車運輸速度放緩，無論是備件還是現場所需的其他材料，都會減慢我們的速度。然後對於服務部門來說，尋找和留住有經驗的人，在工作中勞作，這是另一個挑戰。

So those sorts of things with the activity at the highest level it's been in several years now. That's what's really driving that. In overall, the number of completions in the Midland Basin, we completed 14 but some came on later in the quarter than expected. And in South Texas, we could have brought online for fewer, and 2 of those are already online now, but 2 more are yet to come. So our base production looks great, but it's just a matter of what the uplift timing is. That's really the story on that one. On the offset activity, we -- it's funny actually that we've been out being conservative in our forecast, and it's funny that we -- 3 quarters in a row, we're acutely conservative, well, that offset activity was lower than we expected. And then this quarter, the offsite activity was higher, and that's -- than what we had baked into our estimates. So that will happen at times and not much really we can do about it.

因此，這些活動的最高水平是幾年來的。這才是真正的驅動力。總體而言，米德蘭盆地的完工數量為 14 個，但有些在本季度晚些時候出現，超出預期。而在德克薩斯州南部，我們本可以以更少的價格上線，其中 2 個現在已經上線，但還有 2 個尚未上線。所以我們的基礎產量看起來不錯，但這只是上升時間的問題。這就是那個故事。關於抵消活動，我們 - 實際上很有趣，我們的預測一直很保守，有趣的是我們 - 連續三個季度，我們非常保守，好吧，抵消活動低於我們預計。然後本季度，場外活動更高，這比我們估計的要高。所以這有時會發生，我們對此無能為力。

Okay. Got it. That's great color and very helpful. Maybe now just on the buyback, maybe just curious what do you have to see to get comfortable with either accelerating it or even raising it. You noted it's on a pretty conservative price deck in calendar '23 TIs showing $84 or so. So like how is that to be sustained? Or is it something on the debt side? Obviously, you're pretty close to or about to exceed your targets. So maybe just help us think about upside to that program and what you guys need to see.

好的。知道了。這是很棒的顏色，非常有幫助。也許現在只是回購，也許只是好奇你必須看到什麼才能對加速甚至提高它感到滿意。您注意到它在日曆 '23 TI 中的價格相當保守，顯示 84 美元左右。那麼如何維持這種狀態呢？還是在債務方面？顯然，您已經非常接近或即將超過您的目標。因此，也許只是幫助我們考慮該計劃的好處以及你們需要看到的內容。

Sure. Great question. As you mentioned, we are right at our target on the leverage side of well below 1x and right around the $1 billion of net debt. And all I can say right now is that we'll move forward. We will deliver on our commitment to return the levels to the shareholders that we've talked about. And as you mentioned, we built that in pretty conservatively to make sure that would happen. So we used [6 and 3]. So as we move forward into finalizing our plans for '23 and looking at other opportunities we might have and seeing how stable the commodity prices end up being. That will just be part of the decision-making as we go -- as we move forward. I can't give you any metrics to watch for right now. But the more comfortable we get with the stability of the commodity and the free cash flow we're generating, there's obviously an opportunity and a possibility that we'll increase the levels on the return to the shareholder side, but too early to indicate any of that yet.

當然。好問題。正如您所提到的，我們的目標是槓桿率遠低於 1 倍，淨債務約為 10 億美元。我現在只能說我們會繼續前進。我們將兌現承諾，將水平返還給我們已經討論過的股東。正如你所提到的，我們非常保守地構建了它以確保這會發生。所以我們使用了[6和3]。因此，當我們繼續完成我們的 23 年計劃並尋找我們可能擁有的其他機會並看到商品價格最終有多穩定時。在我們前進的過程中，這將只是決策的一部分。我現在不能給你任何值得關注的指標。但是，我們對商品的穩定性和我們產生的自由現金流越感到滿意，顯然我們有機會和可能提高股東方面的回報水平，但現在表明任何跡像還為時過早還沒有。

Your next question comes from the line of Oliver Huang of TPH&Co.

您的下一個問題來自 TPH&Co 的 Oliver Huang。

I just wanted to follow back up on the Q4 guide. Just I guess, compared to prior to initial expectations of having encountered the offset frac and supply chain issues in Q3, does that 60-40 mix that you just referenced for Q3 also hold for Q4? Or does it lean a bit heavier one way or the other?

我只是想跟進 Q4 指南。只是我猜，與之前在第三季度遇到抵消壓裂和供應鏈問題的最初預期相比，您剛剛在第三季度引用的 60-40 組合是否也適用於第四季度？或者它是否以一種或另一種方式變得更重？

Yes. Oliver, for 4Q, all we'd say is there's been delays in when we can turn some wells in line. Offset activity is something that's really hard to forecast. So what we did for 4Q was just more or less delayed the turn-in lines somewhat. And then for the opposite activity, if we just use our asset activity model where we know our own offset activity and then we know what offset operators will do. Sometimes they'll change their schedules. Sometimes we'll have a delay. But it's -- there's nothing specific that I would say, into on percentages of one versus the other all group together.

是的。奧利弗，對於第 4 季度，我們只能說我們可以將一些井排成一行的時間有所延遲。抵消活動確實很難預測。所以我們為第 4 季度所做的只是或多或少地延遲了上交線。然後對於相反的活動，如果我們只使用我們的資產活動模型，我們知道我們自己的抵消活動，然後我們知道抵消運營商會做什麼。有時他們會改變他們的日程安排。有時我們會有延遲。但它 - 我不會說任何具體的，關於一個與另一個所有組的百分比。

Okay. That makes sense. And for a second question, I know you all historically baked in some risk in for us that break down time, but just given the strong commodity prices, more players and activity in the basin. Just wondering if you all are expecting a more elevated impact relative to historical norms when thinking about 2023 just based on conversations that other operators have communicated with you in the planning phase for next year at this point in time.

好的。那講得通。對於第二個問題，我知道你們在歷史上都為我們承擔了一些崩潰時間的風險，但只是考慮到強勁的商品價格、更多的參與者和盆地的活動。只是想知道在考慮到 2023 年時，你們是否都期望相對於歷史規範產生更大的影響，這只是基於其他運營商在明年計劃階段與你們溝通的對話。

Not really. It's something that it's -- every month, we'll get an update on things that sort of thing. So it's really hard to forecast exactly what the rig count will be in Howard County. That's one proxy just look at the rig count in Howard County, when it's way up. There's going to be more activity in the area. So South Texas is different because we've got quite a bit of -- it's only our own wells, really, very few places where we've got offset activity directly off us.

並不真地。就是這樣——每個月，我們都會收到關於這類事情的更新。因此，很難準確預測霍華德縣的鑽機數量。這是一個代理，只要看看霍華德縣的鑽機數量，當它上升時。該地區將有更多的活動。所以南德克薩斯是不同的，因為我們有很多——只有我們自己的水井，真的，很少有地方可以直接從我們身邊獲得抵消活動。

(Operator Instructions). Your next question comes from the line of Gregg Brody with Bank of America.

（操作員說明）。您的下一個問題來自美國銀行的 Gregg Brody。

Just to follow up. In terms of the debt side, clearly, you're below your leverage target, and you've paid down your revolver. So still going to another $600 million or so to reduce in terms of debt from the bond side to try to get to your $1 billion target. Just talk to us about how you're planning on approaching that? Should we think about you just calling on the first maturities as they come due? Or are you thinking about it in a different way?

只是為了跟進。在債務方面，很明顯，你低於你的槓桿目標，並且你已經償還了你的左輪手槍。因此，仍然需要另外 6 億美元左右來減少債券方面的債務，以達到 10 億美元的目標。只需與我們談談您打算如何解決這個問題？我們是否應該考慮您只是在到期時調用第一個到期日？還是您以不同的方式考慮它？

Yes. Thanks, Gregg. Good question. I would -- you know how we operate typically by maturity. So you can assume that when we're ready to reduce the absolute debt numbers to get down to that $1 billion. As you mentioned, we have a lot of cash right now. That's why we can say net debt is close to $1 billion. We would probably be the $25 million would be the first target, although we watch the trading levels and the others as well, but that's just generally speaking, how we would do that. We tapped the brakes a little bit on that just given the uncertainty with inflation and interest rates. It feels like a good time in this time of uncertainty and rising rates to have cash. So that's the way we're running things right now. As we move forward and build more cash, then that we'll make those decisions as we move forward. But that's the general thinking.

是的。謝謝，格雷格。好問題。我會 - 你知道我們通常如何通過成熟度來運作。所以你可以假設，當我們準備好將絕對債務數量減少到 10 億美元時。正如你所說，我們現在有很多現金。這就是為什麼我們可以說淨債務接近 10 億美元。我們可能會將 2500 萬美元作為第一個目標，儘管我們也會觀察交易水平和其他水平，但這只是一般而言，我們將如何做到這一點。考慮到通脹和利率的不確定性，我們稍微踩了剎車。在這個充滿不確定性和利率上升的時期，擁有現金感覺是個好時機。這就是我們現在運行的方式。隨著我們前進並積累更多現金，我們將在前進時做出這些決定。但這是一般的想法。

That's helpful. And then you had some comments in your precall, but I just wanted to clarify to make sure I understand that. So I think you -- when you were talking about inflation, you talked about how this year you modeled for '22, you average in 25% to 30%. And I think you said that you expected exit rate to be above that number. So implying 23 inflations higher than 25% to 30%. Did I understand that correctly? And just how does that translate potentially for your capital budget when we think about what you may have often from this year already? And maybe how you're approaching contracting? Are you thinking about having longer-duration contracts to try to address some of the inflation?

這很有幫助。然後你在預審中有一些評論，但我只是想澄清一下，以確保我理解這一點。所以我認為你 - 當你談論通貨膨脹時，你談到了今年你如何為 22 年建模，你平均在 25% 到 30% 之間。我想你說過你預計退出率會高於這個數字。因此暗示 23 次通脹高於 25% 至 30%。我理解正確嗎？當我們考慮您今年可能經常擁有的東西時，這對您的資本預算有何潛在影響？也許你是如何處理合同的？您是否正在考慮簽訂更長期限的合同來解決部分通貨膨脹問題？

Yes. I'll respond to your comment on my prepared remarks, they let her at any color he wants, but you did hear it correctly, 25 30 and that we're seeing an exit rate out of 22 higher and we listed the things that are still going up. Too early to give any specifics on 23 in those areas, though.

是的。我會回應你對我準備好的評論的評論，他們讓她用他想要的任何顏色，但你確實沒聽錯，25 30，我們看到退出率高於 22，我們列出了還在上漲。不過，在這些領域給出關於 23 的任何細節還為時過早。

Yes, the only thing I'll -- Gregg, the only thing I'll add on that is that we have not done the 2023 budget. We're watching things really closely. We've as much as we can to lock in the supply chain for next year. But there's no doubt there's inflation coming on, and we don't know when it will top out.

是的，我唯一要說的——格雷格，我唯一要補充的是，我們還沒有完成 2023 年的預算。我們正在密切關注事情。我們已經盡可能多地鎖定明年的供應鏈。但毫無疑問，通脹即將到來，我們不知道它何時會見頂。

Are you considering smaller duration contracts now with some of your providers is to also address some of the supply chain issues that occurred this quarter?

您是否正在考慮與您的一些供應商簽訂更短期限的合同，以解決本季度出現的一些供應鏈問題？

Yes. It's a mix of the contracts themselves, getting the steel making sure we've got the feel that we can drill the well. That's a critical starting point. And then on the frac service providers, making sure we're set there. We're really going to stand supply. We're in great shape because we do lock that in a bit longer term. So we really work that hard as we add some it up.

是的。這是合同本身的混合，獲得鋼材以確保我們有可以鑽井的感覺。這是一個關鍵的起點。然後是壓裂服務提供商，確保我們在那裡。我們真的要堅持供應。我們的狀態很好，因為我們確實會在更長的時間內鎖定它。所以我們真的很努力，因為我們加了一些。

Your next question comes from the line of Daniel John with Daniel Energy Partners.

您的下一個問題來自 Daniel John 與 Daniel Energy Partners 的對話。

I got a quick question on just the supply chain. If the industry activity stabilizes from here, do you think the industry sees these headaches eased in '23. But what happens in your view if we see another 5% to 10% activity across the board? How -- what's the duration of the headaches, if you will?

我有一個關於供應鏈的快速問題。如果行業活動從這裡開始穩定下來，您認為行業是否會在 23 年看到這些令人頭疼的問題得到緩解。但是，如果我們看到另外 5% 到 10% 的活動全面展開，您認為會發生什麼？怎麼樣——如果你願意的話，頭痛的持續時間是多久？

Yes, John, thanks for the question. You probably know better than anyone on what it looks like. There's areas that are quite tight. And if there was a hypothetical of increase in activity, those tight areas will obviously have more inflation. I think there's quite a bit of discipline on the E&P side and the service side -- but I'm not -- I think the thing is if you're going to forecast, forecast often, I don't think we're ready to forecast. We're going to make -- put a budget together with our expectations in November through January time frame, and we'll go with that, and then we'll see where things come. But we are focused on our relationships with those key suppliers and service providers and materials. So that's just what I'd say on that.

是的，約翰，謝謝你的問題。您可能比任何人都更了解它的外觀。有些地方很緊張。如果假設活動增加，那麼這些緊張地區顯然會有更多的通貨膨脹。我認為勘探與生產方面和服務方面有相當多的紀律——但我不是——我認為問題是如果你要預測，經常預測，我認為我們還沒有準備好預測。我們將在 11 月到 1 月的時間框架內製定預算以及我們的預期，然後我們將繼續這樣做，然後我們會看到事情的發展方向。但我們專注於與那些關鍵供應商、服務提供商和材料的關係。這就是我要說的。

Fair enough. I've got a dumb guy question for you now. Where are we on the evolution of well-completion designs? Any big picture thoughts on that? Like how often are you testing new designs?

很公平。我現在有一個愚蠢的問題要問你。我們在完井設計的演變過程中處於什麼位置？對此有什麼大的想法嗎？比如你多久測試一次新設計？

So John, I'm going to point you to one slide in our deck. I don't know if you've looked at it, but... You really just showed...

約翰，我要給你指點我們甲板上的一張幻燈片。我不知道你有沒有看過，但是......你真的只是展示了......

[My truck], sorry. I haven't had…

[我的卡車]，對不起。我沒有...

I'm going to point you to Slide 13, and you can see how we've moved our completion design to add value. And in some cases, it does take additional capital, but the performance, that incremental return for that additional capital is phenomenal. We're going to continue to do that. You're going to continue to see us get better and you're going to see our competitors moving towards our designs over time. I think we're right at the cutting edge on that, and it's a place we want to be.

我將帶你看幻燈片 13，你可以看到我們如何移動完成設計以增加價值。在某些情況下，它確實需要額外的資本，但表現，即額外資本的增量回報是驚人的。我們將繼續這樣做。您將繼續看到我們變得更好，您將看到我們的競爭對手隨著時間的推移轉向我們的設計。我認為我們在這方面處於最前沿，這是我們想要成為的地方。

This concludes today's Q&A. I now turn the call back to Herb Vogel, Vice President and CEO.

今天的問答到此結束。我現在將電話轉回副總裁兼首席執行官 Herb Vogel。

Thank you, Emma, and thank you all for your interest in SM Energy. Thank you.

謝謝你，Emma，也感謝大家對 SM Energy 的關注。謝謝你。

That concludes today's call. Thank you for attending. You may now disconnect.

今天的電話會議到此結束。感謝您的出席。您現在可以斷開連接。