Vital Energy Inc (VTLE) 2024 Q3 法說會逐字稿

Good day, ladies and gentlemen and welcome to Vital Energies Inc, third quarter 2024 earnings conference call. My name is Jericho and I will be your operator for today.

女士們、先生們，美好的一天，歡迎參加 Vital Energies Inc 2024 年第三季財報電話會議。我叫 Jericho，今天我將擔任您的接線生。

(Operator Instructions) As a reminder, this conference is being recorded for replay purposes.

（操作員說明）謹此提醒，本次會議正在錄製以供重播之用。

It's now my pleasure to introduce Mr. Ron Hagood, Vice President, Investor Relations. You may proceed, sir.

現在我很高興向大家介紹投資者關係副總裁 Ron Hagood 先生。您可以繼續了，先生。

Thank you and good morning. Joining me today are Jason Pigott, President and Chief Executive Officer; Brian Lemmerman, Executive Vice President and Chief Financial Officer; Katie Hill, Senior Vice President and Chief Operating Officer, as well as additional members of our management team.

謝謝你，早安。今天加入我的還有總裁兼執行長傑森‧皮戈特 (Jason Pigott)； Brian Lemmerman，執行副總裁兼財務長； Katie Hill，資深副總裁兼營運長，以及我們管理團隊的其他成員。

During today's call. We'll be making forward-looking statements, these statements including those describing our beliefs, goals, expectations, forecasts and assumptions are intended to be covered by the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995.

在今天的通話中。我們將做出前瞻性陳述，這些陳述包括描述我們的信念、目標、期望、預測和假設的陳述，旨在涵蓋 1995 年《私人證券訴訟改革法案》的安全港條款。

Our actual results may differ from these forward-looking statements for a variety of reasons, many of which are beyond our control. In addition, we'll be making reference to non-GAAP financial measures, reconciliations to GAAP financial measures are included in the press release and presentation we issued yesterday afternoon. Press release and presentation can be accessed on our website at www.vitalenergy.com.

由於多種原因，我們的實際結果可能與這些前瞻性陳述有所不同，其中許多原因是我們無法控制的。此外，我們將參考非 GAAP 財務指標，GAAP 財務指標的調整表包含在我們昨天下午發布的新聞稿和簡報中。新聞稿和簡報可在我們的網站 www.vitalenergy.com 上存取。

We now turn the call over to Jason Pigott, President and Chief Executive Officer.

我們現在將電話轉給總裁兼執行長傑森·皮戈特 (Jason Pigott)。

Good morning and thank you for joining us today. We are delighted to announce that Vital Energy has delivered exceptional results in the third quarter surpassing our expectations. Our recent strategic acquisitions particularly the transformative Point acquisition have propelled us to new heights. We reached a new production record during the quarter and our cost reduction initiatives are significantly improving our cash flow.

早安，感謝您今天加入我們。我們很高興地宣布，Vital Energy 在第三季取得了超乎我們預期的出色業績。我們最近的策略性收購，特別是變革性的 Point 收購，將我們推向了新的高度。我們在本季創下了新的生產記錄，我們的成本削減措施正在顯著改善我們的現金流。

Before we take your questions today, I'll cover four key items. First, some quick highlights from the third quarter. importantly, recent results will increase our fourth quarter production outlook. Next, I'll provide additional information about our recent Point acquisition, this asset has exceeded expectations early on and provides us with the luxury of adding activity in a higher productivity area in 2025. Then I will discuss how our team is continuing to improve and extend our inventory. Lastly, I will share some early thoughts on our 2025 outlook while we won't share full details until early next year, we expect to build on the strengths we've reinforced with our third quarter results.

在今天回答大家的問題之前，我將介紹四個關鍵項目。首先，我們來回顧一下第三季的一些亮點。重要的是，最近的業績將提高我們第四季的生產前景。接下來，我將提供有關我們最近收購 Point 的更多信息，該資產超出了早期的預期，並為我們提供了在 2025 年在更高生產力領域增加活動的機會。然後我將討論我們的團隊如何繼續改進和擴展我們的庫存。最後，我將分享對 2025 年前景的一些早期想法，雖然我們要到明年初才會分享完整的細節，但我們預計將在第三季度業績所強化的優勢基礎上再接再厲。

Now let's talk about the third quarter. Our financial results surpassed expectations driven by higher than expected production in line capital and a solid demonstration of our ability to lower operating costs over time on acquired assets. For the quarter, both standalone Vital Energy and the Point Energy assets delivered at the high end of production expectations combining to produce about 59,200 barrels of oil per day.

現在我們來談談第三季。我們的財務表現超出了預期，這是由於生產線資本產量高於預期，並且有力地證明了我們有能力隨著時間的推移降低所收購資產的營運成本。本季度，獨立的 Vital Energy 和 Point Energy 資產均達到了產量預期的上限，總計每天生產約 59,200 桶石油。

Our oil production guidance for the quarter was 55,000 barrels to 58,000 barrels of oil per day and did not include any volumes for Point. However, the team did a great job to close this transaction early giving us a boost for the quarter, if it weren't for some weather related flooding in Howard County which caused approximately 650 barrels of oil per day to be shut in, our beat would have been almost 6% altogether.

我們本季的石油產量指引值為每天 55,000 桶至 58,000 桶石油，不包括 Point 的任何產量。然而，該團隊做得很好，提前完成了這筆交易，這給我們這個季度帶來了提振，如果不是霍華德縣發生了一些與天氣有關的洪水，導致每天大約650 桶石油被關閉，我們的勝利總共大約是 6%。

Help demonstrate why we are so excited about the Point transaction, we have a slide in today's deck with two charts showing Point production, surpassing underwriting expectations for both base production and on a new 10 well package. Additionally, these wells were completed with an optimized frac design on wider spacing than the previous operator, paving the way for us to develop this asset at a significantly reduced cost compared to the prior operator.

為了幫助說明為什麼我們對 Point 交易如此興奮，我們在今天的幻燈片中放了一張幻燈片，其中有兩張圖表顯示 Point 產量，超出了基礎產量和新 10 井包的承保預期。此外，這些井採用了最佳化的壓裂設計，間距比之前的作業者更寬，為我們以比之前的作業者顯著降低的成本開發該資產鋪平了道路。

Lease operating expenses substantially improved during the quarter, coming in at 878 per BOE a low guidance of 895 per BOE a 9% improvement over our second quarter operating expense. These costs are inclusive of higher LOE related to the Point assets excluding Point, LOE would have been just over 870 per BOE.

本季租賃營運費用大幅改善，為每桶油當量 878 美元，低於指引值每桶油當量 895 美元，比第二季營運費用提高 9%。這些成本包括與點資產（不包括點）相關的較高 LOE，每個 BOE 的 LOE 略高於 870。

In the third quarter, we delivered on our planned reduction in operating costs through several targeted initiatives aimed at improving efficiency, and optimizing resource use. Key projects included optimizing our work over fleet and transitioning several rigs to 24 hour operations which reduced downtime and improved cost efficiency. We also implemented changes to our H2S chemical processing and introduced chemical improvements across both the Midland and Delaware Basins, reducing material costs and improving product quality.

第三季度，我們透過幾項旨在提高效率和優化資源利用的有針對性的舉措，實現了降低營運成本的計畫。關鍵項目包括優化我們的車隊工作以及將多個鑽機轉變為 24 小時作業，從而減少了停機時間並提高了成本效率。我們還對硫化氫化學工藝進行了變革，並在米德蘭和特拉華盆地進行了化學改進，降低了材料成本並提高了產品品質。

Throughout the quarter, we made strategic labor and staffing adjustments to better align with the long term based operational needs. We continue to use our cross base and scale to support a cost effective power strategy and have locked in a significant portion of our power cost through hedging to reduce volatility and de risk future cost pressure.

在整個季度中，我們進行了策略性的勞動力和人員配置調整，以更好地滿足長期營運需求。我們繼續利用我們的跨基礎和規模來支持具有成本效益的電力策略，並透過對沖鎖定了我們電力成本的很大一部分，以減少波動性並降低未來成本壓力的風險。

These combined efforts have delivered substantial cost savings, enhancing our overall profitability and positioning us for sustained operational efficiency. Capital investments for standalone vital energy were $236 million for the quarter, within guidance of $215 million to $240 million. The early close of Point resulted in $6 million of additional capital in the quarter resulting in a total capital expenditure of $242 million for the quarter. The momentum from production outperformance and cost savings will carry into the fourth quarter.

這些共同努力節省了大量成本，提高了我們的整體獲利能力，並使我們能夠保持持續的營運效率。本季獨立重要能源的資本投資為 2.36 億美元，指引範圍為 2.15 億至 2.4 億美元。Point 的提前關閉導致該季度獲得了 600 萬美元的額外資本，使得該季度的資本支出總額達到 2.42 億美元。生產表現優異和成本節約的動能將延續到第四季。

We have increased the midPoint of our oil production guidance by 1,500 barrels of oil per day and 3,000 BOE per day of total production., while reiterating our previous capital guidance. Since April of 2023 we have completed six acquisitions and have fundamentally changed our Permian basin footprint growing our Delaware position to almost 90,000 acres.

我們將石油產量指引的中點提高了 1,500 桶石油/日，總產量提高了 3,000 桶油當量，同時重申了先前的資本指引。自 2023 年 4 月以來，我們已完成六次收購，從根本上改變了我們二疊紀盆地的足跡，將特拉華州的面積擴大到近 90,000 英畝。

The Point acquisition materially enhanced the quality of our Delaware Basin assets and complements our overall Permian position. Our portfolio today has more optionality and flexibility to shift capital to our highest return projects than ever before.

Point 收購極大地提高了我們特拉華盆地資產的質量，並補充了我們在二疊紀盆地的整體地位。今天，我們的投資組合比以往任何時候都具有更多的選擇性和靈活性，可以將資金轉移到最高回報的項目。

Team has done an incredible job of adding inventory organically over the last couple of years through innovating on well-designed like horseshoe shaped wells, reducing our cost structure and testing new formations. Through these efforts, we have added over 300 locations representing just under 3.5 years of inventory.

在過去的幾年裡，團隊透過對馬蹄形井等精心設計的創新、降低成本結構和測試新地層，在有機地增加庫存方面做出了令人難以置信的工作。透過這些努力，我們增加了 300 多個地點，相當於近 3.5 年的庫存。

We have a large number of wells that sit just above our $50 breakeven cutoff, as little as a 5% improvement in the cost of these wells would shift 155 wells into the sub $50 breakeven range, extending our runway of sub $50 breakeven wells to just over six years, 5 times the number of wells we had available to us in January of 2023.

我們有大量油井的價格略高於50 美元的盈虧平衡點，只要這些油井成本提高5%，就有155 口油井的盈虧平衡點將達到50 美元以下，從而將我們的50 美元以下盈虧平衡井的範圍擴大到六年來，我們可使用的油井數量是 2023 年 1 月的 5 倍。

Our operations team has already reduced costs in the Delaware Basin from $1,200 per foot to $1,040 per foot since we entered the basin. 2025 expectation is $925 per foot with longer laterals and faster drill times next year. We have delivered at a rapid rate of change and we see plenty of opportunities to continue this trend.

自從我們進入特拉華盆地以來，我們的營運團隊已將特拉華盆地的成本從每英尺 1,200 美元降低到每英尺 1,040 美元。 2025 年的預期為每英尺 925 美元，明年支管更長，鑽孔時間更快。我們以快速的速度實現了變革，並且我們看到了繼續這一趨勢的大量機會。

In addition to ads via cost cutting measures, new formations like the Burnet could also lengthen our inventory runway. Crane County Barnett well reached a peak rate over 1,000 barrels of oil per day. These initial results are very encouraging. Our second Crane County well is being completed right now with a smaller more efficient completion design. The relative performance of these two wells will help triangulate the optimal design for the future.

除了透過削減成本措施進行廣告之外，像伯內特這樣的新形式也可以延長我們的庫存跑道。Crane County Barnett 油井的產量達到了每天超過 1,000 桶石油的峰值。這些初步結果非常令人鼓舞。我們的第二口 Crane County 井目前正在採用更小、更有效率的完井設計完成。這兩口井的相對性能將有助於對未來的最佳設計進行三角測量。

The rapid increase in inventory length and quality that we have delivered on over the last few years allows us to take a pause on M&A and put more emphasis on operational excellence instead of asset transitions. Going forward, we will use nearly all of our free cash flow for debt reduction which will provide the greatest positive impact for our shareholders.

過去幾年，我們交付的庫存長度和品質迅速增加，使我們能夠暫停併購，更加重視卓越營運而不是資產轉型。展望未來，我們將使用幾乎所有的自由現金流來減少債務，這將為我們的股東帶來最大的正面影響。

We anticipate that at current commodity prices, we should be able to generate more than $400 million of adjusted free cash flow over the next five quarters or through the end of 2025. Our strong hedge position over this time frame supports our cash flows and our forecast for lower debt and maintaining leverage.

我們預計，以目前的大宗商品價格，我們應該能夠在未來五個季度或到 2025 年底之前產生超過 4 億美元的調整後自由現金流。我們在這段時間內強大的對沖頭寸支持了我們的現金流以及我們對降低債務和維持槓桿率的預測。

Looking forward, we expect to hold oil production flat with our original 4Q guidance range midPoint of 66,500 barrels of oil per day with a capital range of around $900 million below consensus expectations of around $925 million for 2025. And as efficiencies continue to improve our intention is to maintain flat production with improving capital efficiency and we believe we can maintain this trend for the next five years.

展望未來，我們預計石油產量將與最初的第四季度指導範圍中位數持平，即每天 66,500 桶石油，資本範圍約為 9 億美元，低於 2025 年約 9.25 億美元的普遍預期。隨著效率的不斷提高，我們的目的是透過提高資本效率來維持平穩生產，我們相信我們可以在未來五年內保持這一趨勢。

To conclude my comments for this morning, we beat expectations for the third quarter. We are raising guidance for the fourth quarter. Point is a great asset for us. Our operating efficiencies are progressing on all fronts resulting in lower expected capital spending for 2025 and well quality and operational efficiencies should allow us to maintain production for the next five years with flat to decrease in capital costs.

作為我今天早上的評論的總結，我們對第三季度的預期超出了預期。我們正在提高第四季度的指導。點對我們來說是一筆寶貴的財富。我們的營運效率在各個方面都在進步，導致 2025 年的預期資本支出較低，良好的品質和營運效率將使我們能夠在未來五年內維持生產，同時資本成本持平或下降。

Operator, we are now ready for questions.

接線員，我們現在準備好提問了。

(Operator Instructions)

（操作員說明）

Neal Dingmann, Truist Securities.

尼爾‧丁曼 (Neal Dingmann)，Truist 證券公司。

Morning guys. My first question just on your cost reductions on slide 6, where you show the D&C per foot target 925 mix. I'm just wondering how much this improvement is driven by the lateral like efficiency you mentioned. And maybe could you give details about other upside, within that well cost that you're experiencing? It sort of notable on that side.

早安各位。我的第一個問題是關於您在幻燈片 6 上降低成本的問題，其中您展示了每英尺 D&C 目標 925 的組合。我只是想知道這種改進在多大程度上是由你提到的橫向效率所驅動的。也許您能詳細介紹一下您正在經歷的井成本範圍內的其他好處嗎？這方面值得注意。

And Neal, and we were really excited about all the progress we've made in the Delaware Basin -- in both basins, really, the team has not had a lot of swings at that but have been improving very quickly over time. But I'll turn it over to Katie to give you some more color on the future.

尼爾，我們對特拉華盆地所取得的所有進展感到非常興奮——實際上，在這兩個盆地中，團隊並沒有出現很大的波動，但隨著時間的推移，進步非常快。但我會把它交給凱蒂，讓你對未來有更多的了解。

Morning, Neal. Like Jason said, we're really excited about that 925 afoot. It reflects a lot of great work across both the operations team and our land team and getting a position put together that allows us to drill extended laterals next year. Like Jason said, we've already reduced costs in the basin by about 20% since we entered a little over a year ago. And I think something that's really worth noting is that it's really less than 15 wells that we've had the opportunity to take from Spud to turn line. And we've been able to deliver that dollar per foot reduction with a small program so far.

早安，尼爾。正如 Jason 所說，我們對即將推出的 925 感到非常興奮。它反映了營運團隊和我們的土地團隊所做的大量出色工作，並取得了一個位置，使我們能夠在明年進行延伸的支管鑽探。正如 Jason 所說，自從我們一年多前進入該盆地以來，我們已經將成本降低了約 20%。我認為真正值得注意的是，我們有機會從 Spud 到轉向線開採的井實際上不到 15 口。到目前為止，我們已經能夠透過一個小計劃實現每英尺成本的降低。

So excited about the opportunity going forward. That 925 reflects both the operating efficiencies that we've already implemented and are executing on today, plus some additional work that we have line of sight on being able to implement over the next few months and then also the ability to drill extended laterals next year that's helping to drive that cost down even further.

對未來的機會感到非常興奮。925 既反映了我們今天已經實施和正在執行的營運效率，也反映了我們計劃在未來幾個月內實施的一些額外工作，以及明年鑽探延伸支管的能力這有助於進一步降低成本。

One of the areas that we're really pleased with progress is looking at drilling cycle times when we first started and looked at underwriting back at the end of 23 the expectations were 25 to 30 day wells from Spud to rig release. And we're consistently delivering much lower than that today, closer to 20 days of well, and have even set a record at 16 days per well. And that trend is really consistent across all phases. So just great work by the by the execution team and still some opportunity in front of us.

我們對進展感到真正滿意的領域之一是我們剛開始時考慮了鑽井週期時間，並在 23 年底考慮了承保，預計從開井到鑽機釋放需要 25 至 30 天的時間。我們的交付量始終遠低於今天，接近 20 天的油井交付量，甚至創下了每口井 16 天的記錄。這種趨勢在所有階段都是一致的。因此，執行團隊的工作非常出色，我們面前仍然有一些機會。

Great details and then maybe just my follow up, I think it's still so important on just your operations is looking at 25 regional operations, can you remind me maybe broadly how much will be in Delaware versus mid and then within the [Delaware], will most of that be the Point and I assume so, and if so, what type of potential LOE benefit or sort of trajectory could we get if you continue in that direction?

非常詳細，然後也許只是我的後續行動，我認為這對您的業務仍然非常重要，正在考慮25 個區域業務，您能否提醒我大概特拉華州與中部地區以及[特拉華州]內的業務量將有多少？

The Delaware is a great opportunity for us, particularly with the Point asset that we're working to integrate today, you can see on slide 5, early out performance on the Point well. So really excited about what that can do to our portfolio. We're going to take capital with that asset almost immediately, we're shifting activity there towards the end of this year and certainly really heavily investing next year, about 75% of our 2025 capital will be in the Delaware, 25% in the midland of that 75% about half will be on the Point asset and then half will be on other Delaware assets that we put together over the last year or so.

特拉華州對我們來說是一個很好的機會，特別是我們今天正在努力整合的 Point 資產，您可以在幻燈片 5 中看到 Point 的早期表現。對於這對我們的投資組合有何影響，我感到非常興奮。我們將幾乎立即利用該資產獲取資本，我們將在今年年底將活動轉移到那裡，明年肯定會進行大量投資，我們2025 年資本的約75% 將在特拉華州，25% 將在特拉華州。

I think the LOE question is a great one and an important one for us to draft. We had a great quarter, really pleased with the 878 that we were able to report in Q3, we executed on a lot of the projects that we've talked about delivering in '24 that helped to drive cost down across both basins. And a lot of those opportunities are absolutely applicable to Point.

我認為 LOE 問題是一個很好的問題，對我們來說是一個重要的問題。我們度過了一個很棒的季度，對我們在第三季度報告的878 個項目感到非常滿意，我們執行了許多我們談到的24 年交付的項目，這些項目有助於降低兩個流域的成本。其中許多機會絕對適用於 Point。

We've left Q4 at 935 per BOE really just to reflect that we're in a period of asset integration and onboarding. That is not our expected long term run rate. A lot of the work that again we've done in '24 in both Midland and Delaware, we can take to a Point and we're starting to do that already. So I'd expect to exit this year around 935. We'll be driving cost down across 2025 and expect by end of next year to be back into the high [eight]. So just really pleased with the opportunity to be investing, great asset, it does a lot for our portfolio.

我們將第四季的每股 BOE 定為 935，實際上只是為了反映我們正處於資產整合和入職階段。這不是我們預期的長期運轉率。我們在 24 年在米德蘭和特拉華州所做的許多工作，我們可以達到一個目標，而且我們已經開始這樣做了。所以我預計今年會在 935 左右退出。我們將在 2025 年降低成本，預計到明年年底將恢復到高水準[八]。因此，我對投資機會感到非常高興，這是一筆巨大的資產，它對我們的投資組合有很大幫助。

Great details. Look forward to LOE. Thanks, Katie.

很棒的細節。期待LOE。謝謝，凱蒂。

Zach Parham, JPMorgan.

札克·帕勒姆，摩根大通。

Hey guys, thanks for taking my question. First, you commented on the Barnett Wells a little bit earlier. Can you talk a little bit about the cost there and how those will compete with your wells in the Delaware, Midland Basin?

嘿夥計們，謝謝你提出我的問題。首先，您早些時候對巴尼特威爾斯發表了評論。您能否談談那裡的成本以及這些成本將如何與您在特拉華州、米德蘭盆地的油井競爭？

We're really excited about the Barnett, Zach. It's still also very early. I wouldn't take our cost that we for these wells to be what we plan on for the future. We did these about as inefficiently as you can. We drilled four wells spaced across our footprint, both on our HPP and in the new acreage. And when you're drilling a well in a new formation and completing it as one well, instead of a zipper rack, like those costs aren't as relative.

我們對巴內特感到非常興奮，扎克。現在還很早。我不會認為這些井的成本就是我們未來計畫的成本。我們做這些事情的效率已經非常低了。我們在 HPP 和新土地上鑽了四口井，分佈在我們的足跡上。當您在新地層中鑽一口井並將其作為一口井完成時，而不是使用拉鍊架，這些成本並不是相對的。

And it's still early as I mentioned, we pumped a very large rack with a lot of sand on it, on the first one, my message to the team was like, we're going to see exactly how much these wells can deliver and it can deliver 1,000 barrels a day or more.

正如我所提到的，現在還為時過早，我們泵了一個非常大的架子，上面有很多沙子，在第一個架子上，我給團隊的信息是，我們將看看這些井到底能輸送多少，每天可以交付1000桶或更多。

The next phase for us is test a smaller frac on it, which would be much cheaper. And see, does that -- does the performance come down or not? It's we're kind of doing the same thing that we saw in Point where they pump big fracs, then you step it down to a smaller frac. So I think it's just still too early. These wells are new, they haven't hit. We don't have a good estimate on final decline rates. They're very different production profile and we see from other assets, these wells kind of get slowly better every day versus our old [camp] well.

我們的下一階段是測試一個較小的壓裂，這會便宜得多。看看，性能是否會下降？我們正在做與我們在 Point 看到的相同的事情，他們泵送大型壓裂，然後將其降低到較小的壓裂。所以我認為現在還為時過早。這些井是新井，還沒開採過。我們對最終下降率沒有很好的估計。它們的生產情況非常不同，我們從其他資產中看到，與我們的舊[營地]井相比，這些井每天都在慢慢好轉。

They start off at high peaks and decline. So it's just, it's early, but we're really excited about it. For me when I think of what we've done in Ukraine, this is the first time that we've gone out there and had an idea for a new concept in a zone that's been tested but not tested where we were, bought acreage and have a really good initial production test on it. We started this two years ago and then we're doing it in parallel with all of our acquisitions. And that's setting up the future that we have today where we don't need M&A to add wells and we can add it organically. So we'll give you some more color in the future, but it's still really early, but results are very positive so far.

它們從高峰開始，然後下降。所以，雖然現在還為時過早，但我們對此感到非常興奮。對我來說，當我想到我們在烏克蘭所做的事情時，這是我們第一次走出去，在一個已經過測試但尚未在我們所在的地方進行測試的區域中提出一個新概念的想法，購買了土地並對它進行了非常好的初始生產測試。我們兩年前開始這樣做，然後我們與所有收購同時進行。這就是我們今天的未來，我們不需要併購來增加油井，我們可以有機地添加它。所以我們將來會給你更多的色彩，但現在還很早，但到目前為止結果非常積極。

Thanks Jason and did my follow up. I wanted to ask on the cave bear well or cave bear pad that you had in the slide deck. Can you give some detail on how that pad was developed? I knew you said it was drilled and completed by Point but with the Vital design was that at four wells per section? And is that kind of how you expect to develop those assets going forward? And any comment on which zones that pad developed as well? Thanks.

謝謝傑森並做了我的跟進。我想問一下滑梯上的洞穴熊井或洞穴熊墊。能詳細介紹一下該墊是如何開發的嗎？我知道你說它是由 Point 鑽探和完成的，但根據 Vital 設計，每個部分有四口井？您期望今後以這種方式開發這些資產嗎？對於該墊還開發了哪些區域有什麼評論嗎？謝謝。

Thanks Zach. This is a 10 well pad that was being developed during the transition. Point drill, these a little bit tighter spacing than our long term plans. These are five wells per section. It's across the A and the B, we did pump our completion design on all the wells. This is reflective of what our go forward, completion looks like, but we expect to up space and plan to up space on the remainder of the development going forward.

謝謝扎克。這是一個在過渡期間開發的 10 口井平台。點鑽，這些間距比我們的長期計劃要緊一些。每個部分有五個井。跨越 A 和 B，我們確實在所有井上泵送了完井設計。這反映了我們的進度、完工情況，但我們預計會增加空間，並計劃在未來的開發剩餘部分增加空間。

Thanks a lot.

多謝。

Noah Hungness, Bank of America.

諾亞·洪尼斯，美國銀行。

Good morning, all. I just wanted to start off here on hedges just given that the strip for oil in the second half of '25 and '26 is below $70. How should we think about you get you all adding hedges kind of as we move through this year and into next year.

大家早安。我只是想從對沖開始，因為 25 年和 26 年下半年的石油價格低於 70 美元。當我們進入今年和明年時，我們應該如何考慮讓你們都添加對沖措施。

We've been very consistent with our hedges. We again we tend to be -- tended to be 75% hedged out into the future. What we've done, I think the team has done a great job of lately here is just playing volatility. And when we see it, we'll add hedges in that $75 range, we added them when we had this conflict in the Middle East, this flare up in the Middle East.

我們的對沖策略一直都非常一致。我們再次傾向於將 75% 的風險對沖到未來。我們所做的，我認為團隊最近做得很好，就是玩波動性。當我們看到它時，我們將在 75 美元的範圍內添加對沖，當我們在中東發生衝突時，我們在中東爆發衝突時添加了它們。

So that's kind of where we are as we get closer to the end of next year, we may add those. But for right now, we're two thirds hedged for '25 I think, or 88% hedge or so far, the end of the rest of this year. So that's what we've been doing, we make $24 million barrel per year. $5 a barrel, is over $100 million impact to our free cash flow. So we want to give opportunity for oil prices to rise, but also protect cash flows as we get closer to year end. And we're setting up a '26 budget.

這就是我們在接近明年年底時所處的情況，我們可能會添加這些內容。但就目前而言，我認為我們三分之二的人對沖了 25 年，或者說 88% 的人對沖，或者到目前為止，今年剩餘時間的年底。這就是我們一直在做的事情，我們每年賺取 2400 萬美元桶的利潤。每桶 5 美元，對我們的自由現金流影響超過 1 億美元。因此，我們希望為油價上漲提供機會，同時在接近年底時保護現金流。我們正在製定 26 年預算。

That makes sense. And then could you guys give any maybe additional color on what you all may be planning to try to lower D&C costs, and just noting the impact of a 5% reduction, how that adds to your inventory. Is there anything -- any operational details you guys could give us on maybe what you're looking to implement.

這是有道理的。然後你們能否就你們可能計劃嘗試降低 D&C 成本的內容提供任何可能的額外說明，並僅注意減少 5% 的影響，以及這如何增加您的庫存。你們可以提供我們一些關於你們想要實施的操作細節嗎？

We've already implemented really good work on cycle time. And the kind of the turn in line efficiency that's been accomplished, what is still left to do and the team is constantly questioning and I would say, learning from repeat experiences in the Delaware, but what's still left to do is really working through every service cost, making sure that we're either at or better than market.

我們已經在周期時間方面做了非常好的工作。已經完成的生產線效率轉變，仍然需要做什麼，團隊不斷提出質疑，我想說，從特拉華州的重複經驗中學習，但仍然需要做的是真正完成每項服務成本，確保我們達到或優於市場水準。

And frankly working through with our partners that were implementing best practices both in the Midland and the Delaware. You noted that the continued 5% improvement, when I think about the work that we've been able to deliver on, in just a year on a pretty small subset of wells. I have a lot of confidence in our ability to continue to drive cost past at $925 a foot. The 5% sensitivity that we show on inventory is really a question of when and not if, and I think it's a really fair goal for us over the next couple of years.

坦白說，我們與在米德蘭和特拉華州實施最佳實踐的合作夥伴合作。您注意到，當我想到我們在短短一年內在一小部分油井上完成的工作時，持續的 5% 的改進。我對我們繼續將成本控制在每英尺 925 美元以上的能力充滿信心。我們對庫存表現出 5% 的敏感度實際上是一個何時而不是是否的問題，我認為這對我們未來幾年來說是一個非常公平的目標。

So excited to continue to be developing in the Delaware, we have a fair amount of capital allocation there next year. So there'll be a good opportunity for us to continue to drive cost down.

很高興能繼續在德拉瓦州發展，明年我們將在那裡分配大量的資本。因此，我們將有一個繼續降低成本的好機會。

Sounds good guys. Thank you.

聽起來不錯。謝謝。

Thank you.

謝謝。

There are no further questions. I'll hand the call over to Mr. Ron Hagood.

沒有其他問題了。我會把電話轉給羅恩·哈古德先生。

Well, thank you all for joining us today. We're -- we've discussed and you can hear we are very excited about this quarter and what the future has in store for us.

好的，謝謝大家今天加入我們。我們已經討論過，您可以聽到我們對本季以及未來的發展感到非常興奮。

Now, as we're slow down the M&A for the future, you're going to see this operational excellence showing up every quarter allowing us to again take our free cash flow and pay down our debt, which is going to be a great return for our shareholders in the future. So we look forward to talking to you on our next call. Thank you.

現在，隨著我們放慢未來的併購步伐，您將看到每個季度都會出現這種卓越的運營，使我們能夠再次利用自由現金流並償還債務，這將是巨大的回報為了我們的股東的未來。因此，我們期待在下次通話中與您交談。謝謝。

Conference is now concluded. Thank you for joining. Have a blessed day.

會議現已結束。感謝您的加入。祝你有美好的一天。