SM Energy Co (SM) 2024 Q2 法說會逐字稿

Thank you for standing by. My name is Jinnie, and I will be your conference operator today. At this time, I would like to welcome everyone to the SM Energy's second-quarter 2024 financial and operating results Q&A conference call. (Operator Instructions)

謝謝你的支持。我叫金妮，今天我將擔任你們的會議操作員。現在，我歡迎大家參加 SM Energy 2024 年第二季財務與營運績效問答電話會議。 （操作員說明）

I would now like to turn the conference over to Jennifer Martin Samuels, Vice President, Investor Relations and ESG Stewardship. You may begin.

我現在將會議交給投資者關係和 ESG 管理副總裁 Jennifer Martin Samuels。你可以開始了。

Thank you, Jinnie. Good morning, everyone. In today's call, we may reference the earnings release, IR presentation or prepared remarks, all of which are posted to our website. Thank you for joining us. To answer your questions today, we have our President and CEO, Herb Vogel and CFO, Wade Pursell.

謝謝你，金妮。大家早安。在今天的電話會議中，我們可能會參考收益發布、IR 演示或準備好的評論，所有這些都發佈在我們的網站上。感謝您加入我們。今天請我們的總裁兼執行長 Herb Vogel 和財務長 Wade Pursell 來回答您的問題。

Before we get started, I need to remind you that our discussion today may include forward-looking statements and discussion of non-GAAP measures. I direct you to the accompanying slide deck, earnings release, and Risk Factors section of our most recently filed 10-K, which describe risks associated with forward-looking statements that could cause actual results to differ.

在我們開始之前，我需要提醒您，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。我將引導您查看我們最近提交的 10-K 中隨附的幻燈片、收益發布和風險因素部分，其中描述了與可能導致實際結果不同的前瞻性陳述相關的風險。

Also, 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 second-quarter 10-Q that was filed this morning.

此外，請參閱投影片附錄和收益發布，以了解非公認會計原則措施與最直接可比較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二季 10-Q 報告。

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

接下來，我將把它交給赫伯進行簡短的開場評論。草本植物？

Thank you, Jennifer. Good morning and thank you for joining us. It was an outstanding quarter with a lot of great news. So let's go ahead and get started with the Q&A.

謝謝你，詹妮弗。早安，感謝您加入我們。這是一個出色的季度，有很多好消息。那麼就讓我們繼續開始問答吧。

I'll turn it back to Jinnie to start taking your questions.

我會把它轉回給金妮，開始回答你的問題。

(Operator Instructions)

（操作員說明）

Gabe Daoud, TD Cowen.

加布·達烏德，TD·考恩。

I was hoping we can maybe learn a little bit more about the Woodford-Barnett results. I guess, curious about the development plan here whether or not there are more wells in the formation that are expected to turn in line this year? What does development look like from a spacing standpoint? And then, I guess, what are the oil cuts expected on these wells?

我希望我們能夠更多地了解伍德福德-巴尼特的結果。我猜想，好奇這裡的開發計劃，今年地層中是否還會有更多的井預計轉線？從間距的角度來看，開發是什麼樣的？然後，我想，這些油井預計會減產多少？

Yeah. we're excited about the Woodford-Barnett in the Permian. It's an overpressured play, which is great. The wells initially flowed naturally and for quite a while before we put artificial lift on. They are 56% to 58% oil, and that's on a two-stream basis. I imagine it'll be -- the gas will be quite rich. I don't know the BTU content there yet. It's about 50 API oil.

是的。我們對二疊紀的伍德福德-巴尼特感到興奮。這是一場壓力過大的比賽，非常棒。這些井最初是自然流動的，並且在我們進行人工舉升之前持續了相當長的一段時間。它們含有 56% 至 58% 的石油，這是基於兩股石油。我想，天然氣會非常豐富。我還不知道那裡的 BTU 含量。大約是50 API油。

In terms of the development, we're a ways away from that. but we do know that we're well surrounded by offset operators. And we showed that in one of the slides that the performance of these wells is really excellent. And we'll be working the development plans over the coming months. We do not have any additional turn in lines planned for this year in Woodford-Barnett.

就發展而言，我們距離這一點還有很長的路要走。但我們確實知道我們周圍都是偏移運算子。我們在一張幻燈片中展示了這些井的表現非常出色。我們將在未來幾個月內制定開發計劃。我們今年沒有計劃在伍德福德-巴尼特增加任何額外的轉線線路。

And then, I guess, just as a follow-up shifting gears to the buyback and commentary around maybe, more of a focus on debt reduction near-term versus leaning into the buyback? I think last several quarters you've been around, $40 million to $50 million a quarter on buyback. So what does the pace look like to close 2024? And then any additional color on the pace in 2025?

然後，我想，就像後續行動轉向回購和評論一樣，也許更多地關注短期債務削減而不是傾向於回購？我認為過去幾個季度，每季的回購金額為 4,000 萬至 5,000 萬美元。那麼 2024 年結束時的進度如何呢？那麼 2025 年的步伐還有其他的變化嗎？

As we've said, with the acquisition, we're taking on an additional deleverage, we will be prioritizing free cash flow in the near term to debt reduction, before we kind of get back into the pace that we were on buying back shares.

正如我們所說，透過收購，我們將進行額外的去槓桿化，在我們回到回購股票的步伐之前，我們將在短期內優先考慮自由現金流以減少債務。

I will say though that it's not an all or nothing during this period prioritizing debt reduction. There very well maybe times, probably will be times, where we step into the market and buy back some shares, especially on days of weakness or other times. We certainly still like stock price. I mean, there's no doubt about that. We have our internal view of NAV. But that'll be the priority with free cash flow though, until we get back below kind of in that 1 times area, which we project being the middle of next year depending on commodity prices, of course.

但我要說的是，在這段期間優先減少債務並不是全有或全無的問題。很可能有時，也可能有時，我們會進入市場並回購一些股票，尤其是在市場疲軟的日子或其他時候。我們當然仍然喜歡股價。我的意思是，這一點毫無疑問。我們對淨值有自己的內部看法。但這將是自由現金流的優先事項，直到我們回到該 1 倍區域以下，當然，我們預計該水平將在明年年中取決於大宗商品價格。

Okay. Thanks. So not all or nothing approach. Okay. It's very helpful. Thanks a lot.

好的。謝謝。所以並不是全有或全無的方法。好的。這非常有幫助。多謝。

Zach Parham, JPMorgan.

札克·帕勒姆，摩根大通。

First, just wanted to ask a little bit on the trajectory of oil volumes from here and as we move into '25. Your implied 4Q guidance rate is around 115,000 barrels a day pro forma for the Uinta deal. That compares to the preliminary guide you gave of 100,000 barrels a day for 2025. Can you just talk a little bit about the production trajectory you expect through the year? Do you expect -- As you slow down activity, do you expect a pretty steep decline early in '25 and then you kind of level out? Just curious on kind of tying those two numbers together.

首先，我想問一下從現在開始以及進入 25 年時石油產量的軌跡。對於 Uinta 交易，您隱含的第四季度指引產量約為每天 115,000 桶。與您給出的 2025 年每日產量 10 萬桶的初步指導相比。您是否預期—當您放慢活動速度時，您是否預計 25 年初會出現相當陡峭的下降，然後趨於平穩？只是好奇如何將這兩個數字連結在一起。

In projecting what -- how many TILs we have, we're obviously early days here. It's August and we're still in the HSR approval stage. So we'll figure out how many completions, XCL actually puts online and that'll sort out where we are at year end and how 2025 will play out. We're still working a lot of scenarios on -- depends on what the commodity prices will be next year. And so we're really sorting that out. We don't know the details of all the rig contracts yet on the XCL side.

在預測我們擁有多少個 TIL 時，我們顯然還處於早期階段。現在是八月，我們仍處於高鐵審批階段。因此，我們將計算出 XCL 實際上線的完工數量，這將確定我們在年底的情況以及 2025 年將如何進行。我們仍在研究很多情景——取決於明年的大宗商品價格。所以我們真的正在解決這個問題。我們還不知道 XCL 方面所有鑽機合約的細節。

So we work in the rig cadence, the completion cadence. But what we'll really look at is, how do we get the best capital efficiency between the three assets. We know the returns are similar between the three, which is a great position to be in. Now, how do we get the capital efficiency as good as possible? So that's what we're working right now, and we'll get a lot more information, assuming HSR approval in late August.

所以我們按照鑽機節奏、完井節奏工作。但我們真正要考慮的是，如何在這三種資產之間獲得最佳的資本效率。我們知道三者之間的回報相似，這是一個很好的位置。這就是我們現在正在做的事情，假設 HSR 在 8 月底獲得批准，我們將獲得更多資訊。

My follow-up, just wanted to ask on OpEx, particularly LOE. This quarter, it was $4.82 per BOE. That's significantly below the low end of the full-year guidance range. Can you just give us any color on why LOE came in so low this quarter and maybe, your expectations on how LOE trends from here?

我的後續行動只是想問 OpEx，特別是 LOE。本季度，每桶油當量為 4.82 美元。這大大低於全年指導範圍的下限。您能否告訴我們為什麼本季 LOE 如此之低，以及您對 LOE 未來趨勢的預期？

Yeah. On the LOE side, the second quarter was excellent. We obviously have seen some cost reductions in a number of areas across the board other than labor. And we do expect a little bit of increase in the third quarter with some additional electric generators, as we're waiting for the utility to connect up some of our well pads. And then, there's some additional water handling costs also that we'll have to cover. So I don't want to say it's an anomaly. We're going to keep driving costs down, but we do expect third quarter to be a bit higher than second quarter.

是的。 LOE方面，第二季表現出色。顯然，除了勞動力之外，我們在許多領域都看到了成本的全面下降。我們確實預計第三季會增加一些發電機，因為我們正在等待公用事業公司連接我們的一些井場。然後，我們還必須承擔一些額外的水處理費用。所以我不想說這是一個異常現象。我們將繼續降低成本，但我們確實預計第三季的成本將略高於第二季。

Neal Dingmann, Truist Securities.

尼爾‧丁曼 (Neal Dingmann)，Truist 證券公司。

Good morning. Nice quarter, guys. My first question is around the Eagle Ford activity. Specifically, can you discuss the sort of the future Briscoe C activity? I'm just wondering, will you co-develop the middle and lower Austin Chalk going forward along with Eagle Ford now that you've had that success on the Briscoe C. I'm just wondering how you're going to sort of get after that.

早安.夥計們，這個季度不錯。我的第一個問題是關於伊格爾福特活動的。具體來說，您能討論一下 Briscoe C 未來的活動嗎？我只是想知道，既然你已經在 Briscoe C 上取得了成功，你會與 Eagle Ford 一起共同開發中下部 Austin Chalk 嗎？

Yes, Neil, I'll answer your question. I didn't catch one word that you said there. But I'll just start and then tell me if there was another question there. But on the Eagle Ford, on the West side, we do anticipate co-developing the upper and the lower landing zone that we have in the Austin Chalk and staggering those, we had great results on the first place, where we had fully bounded a number of wells altogether, and we're judicious, we will also tie in Eagle Ford wells over on that Western acreage.

是的，尼爾，我會回答你的問題。我沒有聽清楚你在那裡說的一個字。但我會先開始，然後告訴我是否還有其他問題。但在西側的鷹福特，我們確實預計會共同開發奧斯汀粉筆的上部和下部著陸區，令人震驚的是，我們首先取得了很好的成果，在那裡我們完全限制了總共有多少口井，而且我們很明智，我們還將在西部地區連接Eagle Ford 井。

On the Eastern acreage, we probably won't be staggering wells to that degree just because the off the charts a bit thinner over there and gassier. But it sure looks to work great on the western side to go with all three.

在東部地區，我們可能不會因為那裡的油井更薄、含氣量更大，就將油井打到那種程度。但它看起來確實在西邊與這三者搭配得很好。

Well said. And then just to make sure on the -- my question this one is just on the Uinta side, now that you're able to add additional acres. Is the plan to develop all those acres sort of that same pattern that you had talked about with the original XCL acquisition or is there any change now that you have that additional inventory?

說得好。然後只是為了確保——我的問題，這個只是在 Uinta 一側，現在你可以增加額外的英畝數。開發所有這些土地的計劃是否與您在最初的 XCL 收購中討論過的模式相同，或者現在您有了額外的庫存，是否有任何變化？

Yeah. great question. You can imagine what the state of play is currently. we are -- we'll be inheriting a lot of activity underway. We will be inheriting quite a few docks. We'll be looking to optimize the capital. And then ultimately, by the time we get to 2026, we'll be looking at an integrated how do we optimize the infrastructure that's in place, how do we benefit from XCL's infrastructure for the Altamont assets? So we're looking forward to that optimization because we see that as some low-hanging fruit there to take advantage of what XCL pre-invested in throughout their acreage.

是的。很好的問題。你可以想像現在的比賽狀態是什麼。我們將繼承許多正在進行的活動。我們將繼承相當多的碼頭。我們將尋求優化資本。最終，到 2026 年，我們將考慮如何優化現有基礎設施，如何從 XCL 的 Altamont 資產基礎設施中受益？因此，我們期待這種優化，因為我們認為這是一些容易實現的成果，可以利用 XCL 在其整個土地上預先投資的資源。

Mike Scialla, Stephens.

麥克‧斯夏拉，史蒂芬斯。

I wanted to follow up on the Barnett-Woodford wells. Just to clarify, those were on that Western Extension acreage, I believe, correct me if I'm wrong there. And how do you get to the 20,000 plus net acres perspective for that? Is that assuming all 9,100 of the extension area plus a portion of the legacy Sweetie Peck. And I guess also are those zones perspective anywhere else in the Midland, where you in particular, in Howard County, where you have acreage?

我想跟進巴尼特-伍德福德井的情況。只是澄清一下，這些是在西部延伸區，我相信，如果我錯了，請糾正我。您如何獲得 20,000 多英畝淨英畝的前景？假設所有 9,100 個擴展區域加上部分舊甜佩克區域。我想這些區域也可以在米德蘭的其他地方看到嗎，特別是在霍華德縣，你們在那裡有土地？

Great question, Mike. And I can see why there could be some confusion about that. The 20,000 acres basically is the entirety underneath Sweetie Peck. We did some quite a bit of land work to secure the deep rights under our Sweetie Peck position. And then, we added that 9,100 acres to the West.

好問題，麥克。我明白為什麼對此可能會有些困惑。這 20,000 英畝的土地基本上就是 Sweetie Peck 下面的全部。我們做了相當多的土地工作，以確保我們的甜佩克職位下的深層權利。然後，我們將 9,100 英畝的土地添加到西部。

If you look at the Woodford-Barnett well control of offset operators, you'll see that there was a gap under Sweetie Peck. So, those two wells that we just did are actually under Sweetie Peck. And that's why we have the confidence, why we said the 20,000 acres, because we are surrounded by good Woodford-Barnett wells over there. And then, just obviously, there's a lot of vertical well control around and that enhances our ability to map the play. And that's why we have the confidence and obviously, we'll be working overtime to figure out the optimal spacing for the play. But we're excited that over-pressured nature of it and the oiliness of it is really helps on getting the economics improved over time too.

如果您觀察伍德福德-巴尼特對偏移操作員的良好控制，您會發現在 Sweetie Peck 的領導下存在差距。所以，我們剛剛做的那兩口井其實是在 Sweetie Peck 的下面。這就是為什麼我們有信心，為什麼我們說 20,000 英畝，因為我們周圍都是優質的伍德福德-巴尼特井。然後，很明顯，周圍有很多垂直井控制，這增強了我們繪製作業圖的能力。這就是為什麼我們有信心，顯然，我們將加班加點地找出比賽的最佳空間。但我們興奮的是，它的超壓性質和它的油膩性確實有助於隨著時間的推移改善經濟狀況。

Okay. And not really looking anywhere outside of Sweetie Peck.

好的。除了甜佩克之外，並沒有真正去尋找任何地方。

S I would say I'm never going to speak for our geoscience team, because what they come up with is pretty amazing sometimes and we'll see. I have no doubt that we have Woodford-Barnett Maps and if we can, with the discipline we have in terms of putting capital to land, if they come up with good opportunities, we pursue them, but they have definitely mapped the Woodford-Barnett. and I'm sure I'll be seeing stuff in the future that I don't know about yet.

我想說，我永遠不會代表我們的地球科學團隊發言，因為他們有時得出的結論非常驚人，我們拭目以待。我毫不懷疑我們有伍德福德-巴尼特地圖，如果可以的話，按照我們在投資土地方面的紀律，如果他們提出好的機會，我們就會追求他們，但他們肯定已經繪製了伍德福德-巴尼特地圖。我確信我將來會看到一些我還不知道的東西。

Okay. Look forward to that. And then, just wanted to follow up on the Altamont Energy assets. It looks like that acquisition like you said previously is mostly acreage. How would you characterize that? Has it been delineated? Is it more exploratory in nature than the XCL properties just looking for a little more color there?

好的。期待這一點。然後，只是想跟進阿爾塔蒙特能源資產。看起來像你之前所說的收購大部分是面積。您如何形容這一點？已經劃定了嗎？它在本質上是否比 XCL 屬性更具探索性，只是在那裡尋找更多的顏色？

Yes. it's a great question, Mike. There's quite a bit of vertical well control around. So, we can map it quite well. The industry has learned quite a bit over what makes successful at Uinta wells. The southern portion of the acreage is really well delineated and then a little bit less delayed as you go further north. The technology applied is not as advanced on Altamont as it is on XCL. And I just got to say the XCL team is really excellent at what they do in terms of optimizing and driving capital efficiencies and putting smart infrastructure in place.

是的。這是一個很好的問題，麥克。周圍有相當多的垂直井控制。所以，我們可以很好地繪製它。業界對於 Uinta 油井的成功秘訣已經有了相當多的了解。南部地區的面積輪廓非常清晰，當你再往北走時，延遲會稍微少一些。 Altamont 所採用的技術並不像 XCL 那麼先進。我想說的是，XCL 團隊在優化和提高資本效率以及建立智慧基礎設施方面確實非常出色。

And so, that's why we feel really good about Altamont also. We'll see ultimately we put 75 locations on it for now, and we'll see over time how much more we can add. and that doesn't include any deep cube or anything like that, that has upside inventory potential.

因此，這也是我們對阿爾塔蒙特感覺非常好的原因。我們最終會看到目前我們在上面放置了 75 個位置，隨著時間的推移，我們將看到我們可以添加多少位置。這不包括任何深立方體或類似的東西，具有上升的庫存潛力。

Timothy Rezvan, KeyBanc.

蒂莫西·雷茲萬 (Timothy Rezvan)，KeyBanc。

An area that really hasn't been discussed in the release or today is on Klondike. And I know, I think recent dialogue suggested you'd have more to say with Q3 earnings. But I know there's a lot of completion work going on. So Herb, can you maybe, give like a qualitative assessment of what's happening up there right now?

在發布中或今天確實沒有討論過的一個領域是 Klondike。我知道，我認為最近的對話表明您對第三季收益有更多話要說。但我知道還有很多完成工作正在進行中。那麼赫伯，你能否對目前正在發生的事情進行定性評估？

Yes. great question, Tim. We had to hold something back for the third quarter. So, I would say that the Klondike wells, we have them online, doing well. We've got two that have been online for a while, two more that have come on just recently. We anticipate two more during the third quarter and then there'll be a final two. So, it looks like we're tracking for eight completions in Klondike this year.

是的。很好的問題，提姆。我們不得不在第三季保留一些東西。所以，我想說的是克朗代克井，我們把它們放在網路上，做得很好。我們有兩個已經上線了一段時間，另外兩個是最近才上線的。我們預計第三季還會有兩場比賽，然後還會有最後兩場比賽。因此，看起來我們今年正在追蹤克朗代克的八個完工項目。

I guess, I'll say is, we don't give rates until we get the IP30s and they're still I wouldn't call them IP30s yet, even though they're -- they've been some of them have been producing for a bit. So, they're still ramping, some of them are still ramping up.

我想，我要說的是，在我們獲得 IP30 之前我們不會給出費率，而且它們仍然是我不會稱它們為 IP30，即使它們是——它們中的一些已經是生產一點。所以，他們仍在增加，其中一些仍在增加。

Okay. That's fair. We'll stay tuned I guess. And then, I just wanted to follow up on Gabe's question on Sweetie Peck. I understand it's early days and you don't have much to -- too much to disclose. We've heard some peers talk about oil cuts more in the 75% to 80% range. I mean, obviously, 50% to 60% is a good number. Can you talk to what you know about, how those should trend and if there is sort of variability across that formation, if there's any insight helpful?

好的。這很公平。我想我們會繼續關注。然後，我只想跟進加布關於甜佩克的問題。我知道現在還處於早期階段，你沒有太多要透露的東西。我們聽到一些同行談論石油減產幅度在 75% 到 80% 之間。我的意思是，顯然 50% 到 60% 是一個不錯的數字。您能否談談您所了解的情況，這些趨勢應該如何，以及該形態是否存在某種變化，是否有任何有用的見解？

Tim, you could be a geologist there. The east side is deeper. So that will be gassier and the west side of our acreage is shallower and will be oilier. So, you'll see that trending, as you move west from our existing wells, you'll see them get oilier and that's simply the depth and the thermal maturity level in the Woodford-Barnett there. So, you will see some variability. And so, I fully expect, if you look at some of our peer wells that are just off our Western Flank, they will be higher oil percentage.

提姆，你可以成為那裡的地質學家。東邊更深一些。因此，那裡的氣體含量會更高，而我們土地的西側會更淺，石油含量也會更高。所以，你會看到這種趨勢，當你從我們現有的油井向西移動時，你會看到它們變得更加含油，這就是伍德福德-巴尼特那裡的深度和熱成熟度水平。因此，您會看到一些變化。因此，我完全預計，如果你看看我們西翼附近的一些同行油井，它們的石油百分比將會更高。

Oliver Huang, TPH.

奧利弗·黃，TPH。

Just had a couple of follow-ups. Starting in South Texas, I know you all highlight the new Briscoe C wells performing well. Just wondering how did the initial results that you all seen thus far on that 625 foot spaced fully bounded test impact your thinking about optimal spacing on future development in that liquids rich area, a part of the play for you all?

剛剛進行了幾次後續行動。從德克薩斯州南部開始，我知道你們都強調新的 Briscoe C 井表現良好。只是想知道，到目前為止，你們在 625 英尺間距的全邊界測試中看到的初步結果如何影響您對液體豐富區域未來開發的最佳間距的思考，這是你們所有人的遊戲的一部分？

And then just kind of additionally on the Briscoe C wells, notice that while you all typically drill wells going northwest to southeast, there's this one pad, where the geometry of the wells are moving northeast to southwest. Any sort of observations or takeaways worth highlighting that came about from that set of wells?

另外，在 Briscoe C 井上，請注意，雖然你們通常都從西北向東南鑽探井，但有一個平台，井的幾何形狀從東北向西南移動。從這組井中得到了什麼值得強調的觀察或重點？

Hey, Oliver. Hey, thanks for that question. That's actually an excellent question. And very few people have noticed that. But let me start with the spacing. We believe that we could get to that spacing and get good results with co-development and pretty much the results confirmed what we expected and there's quite a few wells there.

嘿，奧利佛。嘿，謝謝你提出這個問題。這實際上是一個很好的問題。而且很少人注意到這一點。但讓我從間距開始。我們相信，透過共同開發，我們可以達到這個間距並獲得良好的結果，結果幾乎證實了我們的預期，並且那裡有相當多的井。

We'll continue to track on that kind of spacing, where it makes sense. And obviously, the returns did not degrade like some people expected and it kind of was in line with what -- how we modeled it in terms of the reservoir models. So that is something that we will continue, where it makes sense, and then Eagle Ford will be selective, depending on where there's less Eagle Ford development currently. The off-azimuth wells that you noted are performing excellent.

我們將繼續追蹤這種有意義的間距。顯然，回報並沒有像一些人預期的那樣下降，這與我們根據儲層模型對其進行建模的方式是一致的。因此，我們將在有意義的情況下繼續這樣做，然後 Eagle Ford 將根據目前 Eagle Ford 開發較少的地區進行選擇性。您所提及的偏方位井表現良好。

We were doing that to see if we could get costs down and lower the risks on some of the wells in terms of, just the -- because of the orientation there. And those have turned out excellent, better than we expected. You'll note that our first three wells over in the (inaudible) area that, 8,000 net acre drill-to-earn area, we have drilled three off-azimuth wells over there also. So, you'll be seeing the results from those also. So we see that as a way to really help capital efficiency with those off-azimuth wells.

我們這樣做是為了看看我們是否可以降低成本並降低某些油井的風險，因為那裡的方向。結果非常好，比我們預期的還要好。您會注意到，我們的前三口井位於（聽不清楚）區域，即 8,000 淨英畝的鑽探區域，我們還在那裡鑽了三口非方位角井。因此，您也會看到這些結果。因此，我們認為這是真正提高異方位井資本效率的一種方法。

Perfect. That's helpful color. And just a quick follow-up on Permian LOE, just kind of considering next year's preliminary outlook that you all had alongside BU into deck back in June. Anything that we should be aware of or thinking about that might be driving another leg down further to the low-6s on Permian LOE after the step-down we saw this quarter?

完美的。這是有用的顏色。只是對二疊紀 LOE 的快速跟進，只是考慮一下你們在 6 月與 BU 一起討論的明年的初步前景。在我們本季看到的下降之後，有什麼我們應該意識到或考慮的可能會導致二疊紀 LOE 進一步下降到低 6 的水平嗎？

Yes. Oliver, I don't know yet on 2025. We haven't worked up the plans on 2025. So, if we get in areas, where there's already power supply. then, it's pretty straightforward to keep the LOE down. If we're near our existing water injectors, it's going to be lower cost than when we go to third-party water. So, it really depends on specific -- very specific things on where we're locating the wells in 2025.

是的。奧利佛，我還不知道 2025 年。然後，降低 LOE 就非常簡單了。如果我們靠近現有的注水器，其成本將比我們使用第三方水時更低。因此，這實際上取決於具體的事情——非常具體的事情，即我們在 2025 年將油井定位在哪裡。

And I don't have that yet. The team is working that up right now. But just rest assured we're going to be really driving capital efficiency again, and we're in a good operating environment right now with the activity reductions in the industry for both rigs and frac spreads.

而我還沒有那個。該團隊現在正在努力解決這個問題。但請放心，我們將再次真正提高資本效率，而且我們目前處於良好的營運環境中，鑽機和壓裂價差產業的活動都在減少。

(Operator Instructions)

（操作員說明）

Nicholas Pope, Seaport Research Partners.

尼可拉斯波普，海港研究合作夥伴。

Hope we could dig a little bit more into South Texas. because I mean it was a huge jump in oil production and just kind of curious with this basket of wells that you saw come online during the quarter. I mean, I know you have a lot of well control in South Texas. What is your ability to kind of maintain that oil percentage that we saw here in the second quarter? And in terms of how you're, I guess, selecting wells and what you're going to bring it online, I guess how consistent can we expect these kind of oil percentages going forward in South Texas?

希望我們能更多地了解德克薩斯州南部。因為我的意思是石油產量大幅躍升，並且對您在本季度看到的這一籃子油井感到好奇。我的意思是，我知道你在德克薩斯州南部有很多良好的控制權。你們維持我們在第二季度看到的石油百分比的能力有多大？我想，就您如何選擇油井以及將其上線的內容而言，我想我們對德克薩斯州南部未來此類石油百分比的預期有多一致？

So on South Texas, we regularly optimize and we keep improving the performance in each area. When you look at oil percentage, that's going to depend a little bit on how much capital allocation is on the west side and how many turn-in lines we have on the west side versus on the east side, which is higher BOE rates on the east side, but lower oil percentage.

因此，在南德克薩斯州，我們定期優化並不斷提高每個區域的性能。當你看石油百分比時，這將在一定程度上取決於西側的資本配置量以及西側與東側的上交線數量，即東側的京東方利率較高。 。

So you'll just see that move around somewhat. But the more capital we put in the west side; we'll wind up with a higher oil percentage. The more capital we put on the east side. we'll wind up with a higher gas, higher NGL percentage. And that really drives it. But overall, if you just look at it, we just keep improving the well performance. And we're really aware of where they're high oil percentage and where they're higher gas percentage. And we're really just looking at the returns. We're not worried about the oil percentage so much. It's we're driving the capital efficiency side of things. So that's really the way I'd sum that up.

所以你只會看到它有所移動。但是我們在西邊投入的資金越多；我們最終會得到更高的石油百分比。我們在東邊投入的資金越多。我們最終會得到更高的天然氣、更高的液化天然氣百分比。這確實推動了它。但總的來說，如果你只看它，我們只是在不斷改進油井性能。我們確實知道哪裡的石油百分比較高，哪裡的天然氣百分比較高。我們實際上只專注於回報。我們不太擔心石油百分比。我們正在推動資本效率的發展。這就是我總結的方式。

Got it. I appreciate it. The other thing and I know there's like digging a little more that I think, you all probably want to. but in 2025, the production kind of broad range that you all gave during the XCL release that 195, gotten a lot of pushback on that number. Just kind of curious as you kind of look at where things are now, what's your current kind of implied guidance is with the added production in Uinta and coming in that you added this with this release. Kind of how you're thinking about that the implied decline that you're seeing there in 2025 from that fourth quarter rate? And if there's anything, I guess maybe when we can get some more clarity on kind of what you're expecting there for 2025?

知道了。我很感激。另一件事，我知道你們可能都想挖掘更多，我想。但到了 2025 年，你們在 XCL 發布期間提供的廣泛生產範圍（195）在這個數字上受到了極大的阻力。只是有點好奇，當你看看現在的情況時，你目前的隱含指導是什麼，在 Uinta 中增加了生產，並且你在這個版本中添加了這個。您如何看待 2025 年第四季成長率的隱含下降？如果有什麼問題的話，我想也許我們什麼時候才能更清楚地了解您對 2025 年的期望？

Yes, Nick. it's a real fair question. When it's early days like this on a new acquisition, we're working out scenarios and really figuring out the capital efficiency that we can gain. We are somewhat limited in what we can see in terms of rig contracts and other contracts, because we are in that HSR period. So, the best we can see are redacted contracts.

是的，尼克。這是一個真正公平的問題。當新收購處於早期階段時，我們正在製定方案並真正弄清楚我們可以獲得的資本效率。我們在鑽機合約和其他合約方面看到的內容有些有限，因為我們正處於高鐵時期。因此，我們能看到的最好的就是經過編輯的合約。

So we don't know the -- how the term of the contracts and what will make sense. So, we are working that. I will say we'll really be able to ramp up our certainty after HSR approval, assuming we get that at the end of August. And then, we'll be baking that into our 2025 plans that we released in February. So, we're just excited that all three assets have really similar returns and we're just looking at how we can optimize that in terms of rig and frac spread cadence. We know that we get better capital efficiency, we can get the right mix of rig and frac spread in a given play.

所以我們不知道合約條款如何以及什麼是有意義的。所以，我們正在努力。我想說的是，假設我們在八月底獲得高鐵批准後，我們確實能夠提高確定性。然後，我們將其納入 2 月發布的 2025 年計畫中。因此，我們很高興這三種資產具有非常相似的回報，我們只是在研究如何在鑽機和壓裂傳播節奏方面進行優化。我們知道，我們可以獲得更好的資本效率，我們可以在給定的作業中獲得鑽孔機和壓裂價差的正確組合。

And maximize free cash flow.

並最大化自由現金流。

Yes. And the objective is we will maximize free cash flow in the next two years to three years as we always do.

是的。我們的目標是像往常一樣，在未來兩年到三年內最大化自由現金流。

Got it. All right, that's all I had. I appreciate the time. Thanks.

知道了。好吧，這就是我所擁有的一切。我很感激時間。謝謝。

That concludes our Q&A session. I will now turn the conference back over to Herb Vogel, President and Chief Executive Officer, for closing remarks.

我們的問答環節到此結束。現在，我將把會議轉回總裁兼執行長 Herb Vogel 致閉幕詞。

Okay. Thank you, Jinnie, and thank you all for joining us. I do have one area that we got some questions on that did not come up today, and they're about the takeaway in the unit to basin for both oil and natural gas. And the question is really is it sufficient in terms of takeaway and can we grow production? And we believe that was a great question, because there are perceptions about takeaway or complications related to rail that are actually quite outdated now.

好的。謝謝你，Jinnie，也謝謝大家加入我們。我確實有一個領域，我們今天沒有提出一些問題，它們是關於石油和天然氣盆地單元的外賣。問題是外送真的足夠嗎？我們認為這是一個很好的問題，因為人們對與鐵路相關的外賣或併發症的看法實際上已經過時了。

Until mid-2021, waxy crude production was limited, like in the 80,000 barrel a day range for the industry and was all delivered to Salt Lake City refineries. The sharp rise since mid-2021 is due to growth in interest from Gulf Coast refineries incorporating waxy crude into their crude slates, favorable oil prices and gains in production efficiency. And that's increased to include Cushing and Wyoming refineries. There are no rail constraints for current production or for expanding production.

直到 2021 年中期，含蠟原油產量受到限制，例如該行業每天的產量為 80,000 桶，並且全部交付給鹽湖城煉油廠。自 2021 年中期以來的大幅上漲是由於墨西哥灣沿岸煉油廠將含蠟原油納入其原油結構的興趣增加、有利的油價以及生產效率的提高。並且還增加了庫欣和懷俄明州的煉油廠。目前生產或擴大生產沒有鐵路限制。

The railways are generally underutilized in the region, because there's less coal being moved as most of you know. While only a portion of the oil goes to Salt Lake City, there's a number of outlets by rail including Wyoming, Gulf Coast and Cushing and the oils in insulated cars, not heated cars.

該地區的鐵路普遍未被充分利用，因為正如大多數人所知，運輸的煤炭較少。雖然只有一部分石油運往鹽湖城，但有許多鐵路出口，包括懷俄明州、墨西哥灣沿岸和庫欣，而且石油都裝在隔熱汽車中，而不是加熱汽車中。

So in regards to gas, there have been constraints, but these are being alleviated. Pipeline expansion was completed last month by Mountain West, capable of moving an additional 80 million cubic feet a day. And Kinder Morgan recently announced that they're proceeding with a pipeline project to relieve constraints in the basin. Their pipe will carry up to 150 million cubic feet a day from the basin to a processing plant and will be in service in mid-2025.

因此，就天然氣而言，一直存在限制，但這些限制正在緩解。 Mountain West 上個月完成了管道擴建，每天可額外輸送 8,000 萬立方英尺。金德摩根公司最近宣布，他們正在進行一項管道項目，以緩解該盆地的限制。他們的管道每天將從盆地輸送多達 1.5 億立方英尺的水到加工廠，並將於 2025 年中期投入使用。

So with that, thank you for joining us, and we look forward to seeing a number of you at upcoming events.

因此，感謝您加入我們，我們期待在即將舉行的活動中見到您。

This does conclude today's call. You may now disconnect.

今天的電話會議到此結束。您現在可以斷開連線。