W&T Offshore Inc (WTI) 2023 Q3 法說會逐字稿

Ladies and gentlemen, thank you for standing by. Welcome to the W&T Offshore Third Quarter 2023 Conference Call.

女士們先生們，謝謝你們的支持。歡迎參加 W&T Offshore 2023 年第三季電話會議。

(Operator Instructions)

（操作員說明）

This conference is being recorded, and a replay will be made available on the company's website following the call. I would now like to turn the conference over to Al Petrie, Investor Relations Coordinator. Please go ahead.

本次會議正在錄製中，電話會議後將在公司網站上提供重播。我現在想將會議交給投資人關係協調員 Al Petrie。請繼續。

Thank you, Sarah. And on behalf of the management team, I'd like to welcome all of you to today's Conference Call to review W&T Offshore's Third Quarter 2023 Financial and Operational Results.

謝謝你，莎拉。我謹代表管理團隊歡迎大家參加今天的電話會議，回顧 W&T Offshore 2023 年第三季的財務和營運表現。

Before we begin, I would like to remind you that our comments may include forward-looking statements. It should be noted that a variety of factors could cause W&T's actual results to differ materially from the anticipated results or expectations expressed in these forward-looking statements.

在我們開始之前，我想提醒您，我們的評論可能包含前瞻性陳述。應指出的是，多種因素可能導致 W&T 的實際結果與這些前瞻性陳述中表達的預期結果或期望有重大差異。

Today's call may also contain certain non-GAAP financial measures. Please refer to the earnings release that we issued yesterday for disclosures on forward-looking statements and reconciliations of non-GAAP financial measures.

今天的電話會議也可能包含某些非公認會計準則財務指標。請參閱我們昨天發布的收益報告，以了解前瞻性陳述的揭露以及非公認會計準則財務指標的調節表。

With that, I would like to turn the call over to Tracy Krohn, our Chairman and CEO.

說到這裡，我想把電話轉給我們的董事長兼執行長特雷西·克羅恩(Tracy Krohn)。

Thanks, Al. Good day, everyone, and thanks for joining us this morning.

謝謝，艾爾。大家好，感謝您今天早上加入我們。

With me today are William Williford, our Executive VP and Chief Operating Officer; Sameer Parasnis, our Executive VP and Chief Financial Officer; and Trey Hartman, our Chief Accounting Officer. They're all available to answer questions later during the call.

今天與我在一起的有我們的執行副總裁兼營運長 William Williford； Sameer Parasan，我們的執行副總裁兼財務長；以及我們的首席會計官 Trey Hartman。他們稍後都可以在通話期間回答問題。

So before I get into the operational and financial results, I would like to begin by reviewing our long-standing and successful strategic rationale. Our strategy has always been simple, generate free cash flow, maintain high-quality conventional production and opportunistically capitalize on accretive opportunities to build shareholder value.

因此，在討論營運和財務表現之前，我想先回顧一下我們長期且成功的策略理由。我們的策略一直很簡單，產生自由現金流，保持高品質的傳統生產，並伺機利用增值機會來建立股東價值。

We've delivered 23 consecutive quarters of free cash flow because we prioritize cash flow through our operational and cost-controlling initiatives. We have a prolific asset base that delivers strong production and generates meaningful EBITDA. We have generated positive free cash flow every quarter since the beginning of 2018. And in Q3 2023, we delivered over $25 million in free cash flow.

我們已連續 23 個季度實現自由現金流，因為我們透過營運和成本控制計畫優先考慮現金流。我們擁有豐富的資產基礎，可實現強勁的生產並產生可觀的 EBITDA。自 2018 年初以來，我們每季都產生正的自由現金流。2023 年第三季度，我們實現了超過 2,500 萬美元的自由現金流。

So by prioritizing cash flow, we've built a strong balance sheet with ample cash to navigate our cyclical business, opportunistically acquire complementary assets and now be able to pay a quarterly cash dividend on our common stock. Our Board this week adopted a program to report -- to return a portion of our strong cash flow that we generate each quarter directly to our shareholders to enhance the return on their investment.

因此，透過優先考慮現金流，我們建立了強大的資產負債表，擁有充足的現金來駕馭我們的周期性業務，伺機收購補充資產，現在能夠為我們的普通股支付季度現金股息。我們的董事會本週通過了一項報告計劃，將每季產生的部分強勁現金流直接回饋給股東，以提高他們的投資回報。

Our first dividend of $0.01 per share will be paid on December 22 to shareholders of record on November 28, 2023.

我們將於 12 月 22 日向 2023 年 11 月 28 日登記在冊的股東支付每股 0.01 美元的首次股利。

So we began 2023 by making a decision with regard to how we were going to manage our debt going forward. We have the ability to pay it all off, but we know that in times of uncertainty, maintaining liquidity is extremely important. So we redeemed all of our existing second lien notes in the amount of $552 million and did a new issuance of $275 million due in 2026, thus significantly reducing our debt and interest payments going forward, while also strengthening our balance sheet.

因此，2023 年伊始，我們就如何管理未來的債務做出了決定。我們有能力全部還清，但我們知道，在不確定的時期，保持流動性極為重要。因此，我們贖回了所有現有的價值5.52 億美元的第二留置權票據，並於2026 年發行了2.75 億美元的新留置權票據，從而大大減少了我們未來的債務和利息支付，同時也加強了我們的資產負債表。

We have a low leverage profile of 1.2x net debt to trailing months adjusted EBITDA, which, coupled with the significant cash we have on hand, provides us with financial flexibility to act quickly should we see the right acquisition opportunity arrives.

我們的槓桿率較低，淨債務與過去幾個月調整後的EBITDA 之比為1.2 倍，再加上我們手頭上有大量現金，為我們提供了財務靈活性，可以在看到合適的收購機會到來時迅速採取行動。

Over the years, we've created significant value by seamlessly integrating producing property acquisitions, while maintaining strong operational excellence. In the third quarter, we were pleased to complete another acquisition. In late September, we finalized the purchase of 8 shallow water producing properties for $28.9 million, net of purchase price adjustments, that immediately added free cash flow to W&T after the closing date, while increasing our production of reserves.

多年來，我們透過無縫整合生產性資產收購創造了巨大的價值，同時保持了強大的卓越營運能力。第三季度，我們很高興完成了另一項收購。 9 月下旬，我們最終以 2,890 萬美元的價格購買了 8 個淺水生產資產（扣除購買價格調整後），這在交割日期後立即為 W&T 增加了自由現金流，同時增加了我們的儲量產量。

These properties are in our existing areas of operation in the Central and Eastern Gulf of Mexico and met our acquisition criteria of generating free cash flow, a solid base of accrued reserves and upside potential and the ability to reduce costs. We funded the acquisition with cash on hand and still ended the quarter with nearly $150 million of cash.

這些物業位於我們在墨西哥灣中部和東部的現有營運區域，符合我們產生自由現金流、應計儲備和上升潛力的堅實基礎以及降低成本的能力的收購標準。我們以手頭現金為此次收購提供資金，本季末仍有近 1.5 億美元現金。

We have the experience and expertise to execute and try and true acquisition strategy that allows us to grow value for our shareholders. Now we believe that we are very well positioned to continue to make acquisitions, but we also feel that patience is important as we look for strategic value and free cash flow generation potential in all acquisition opportunities that we are continuously evaluating. So we can make acquisitions that add value, and we believe that there are numerous opportunities arising that will allow us to continue with that strategy.

我們擁有執行和嘗試真正的收購策略的經驗和專業知識，使我們能夠為股東增加價值。現在，我們相信我們處於繼續進行收購的有利位置，但我們也認為耐心很重要，因為我們在不斷評估的所有收購機會中尋找戰略價值和自由現金流產生潛力。因此，我們可以進行增加價值的收購，我們相信會出現大量機會，使我們能夠繼續實施這項策略。

Now turning to our outstanding third quarter results. I'd like to point out some key highlights and accomplishments. While we reported net income of $2.1 million or $0.01 per diluted share in the third quarter of 2023 compared to a net loss of $12.1 million in the second quarter of 2023. We increased adjusted EBITDA by 45% quarter-over-quarter to $56.3 million. These increases were primarily driven by our ability to maintain production levels with highly economic workovers and cash flow associated with probable reserves that are not currently booked as proven reserves.

現在轉向我們出色的第三季業績。我想指出一些關鍵的亮點和成就。雖然我們報告 2023 年第三季淨利潤為 210 萬美元，即稀釋後每股收益 0.01 美元，但 2023 年第二季淨虧損為 1,210 萬美元。調整後 EBITDA 環比增長 45%，達到 5,630 萬美元。這些增長主要是由於我們透過高度經濟的修井和與目前未登記為探明儲量的可能儲量相關的現金流來維持生產水準的能力。

We also benefited in the quarter from increased realized oil and natural gas pricing. These factors helped us generate $25.4 million of free cash flow, our 23rd consecutive quarter of free cash flow.

本季我們也受惠於石油和天然氣實際定價的增加。這些因素幫助我們產生了 2,540 萬美元的自由現金流，這是我們連續 23 個季度實現自由現金流。

So we adhere to our strategy to achieve sustainable and consistent results. I believe that our continued success is driven by the ability of both our operations and finance teams to execute at a high level and our outstanding asset base in the Gulf of Mexico. Our ability to pay down debt and improve our balance sheet has put us in a favorable position today and we remain focused on operational execution in '23 and beyond to continue building on our already outstanding results.

因此，我們堅持我們的策略，以實現可持續和一致的結果。我相信，我們的持續成功得益於我們的營運和財務團隊的高水準執行能力以及我們在墨西哥灣的出色資產基礎。我們償還債務和改善資產負債表的能力使我們今天處於有利地位，我們將繼續專注於 23 年及以後的營運執行，以繼續鞏固我們已經出色的業績。

So in the third quarter of 2023, we reported strong production of nearly 36,000 barrels oil equivalent per day. Our production was above the midpoint of guidance with 1.23 million barrels of oil, 348,000 barrels of NGLs and 10.4 Bcf of natural gas for the quarter.

因此，在 2023 年第三季度，我們報告了每天近 36,000 桶石油當量的強勁產量。本季我們的產量高於指導中位數，包括 123 萬桶石油、348,000 桶液化天然氣和 10.4 Bcf 天然氣。

We focused on acquisitions over the last few years rather than on drilling many new wells. For the fourth quarter of 2023, we expect production to be in the range of 34,000 and 38,000 barrels oil equivalent per day. This reflects the benefit of the acquisition we closed in late September that has helped mitigate the low natural production decline of our asset base compared with much higher declines in unconventional onshore reservoirs.

過去幾年我們專注於收購，而不是鑽探許多新井。 2023 年第四季度，我們預計產量將在每天 34,000 至 38,000 桶油當量之間。這反映了我們在 9 月底完成的收購的好處，與非常規陸上油藏大幅下降相比，該收購有助於緩解我們資產基礎的較低自然產量下降。

We saw the benefit of 6 workovers during the third quarter, and we'll continue to focus on high-returning workover and recompletions to help mitigate production decline going forward.

我們在第三季看到了 6 次修井的好處，我們將繼續專注於高回報的修井和重新完井，以幫助緩解未來的產量下降。

On the cost side, while we continue to see inflationary pressures in the industry, our third quarter results were very encouraging as we lowered our lease operating expense on an absolute basis and on a per share basis quarter-over-quarter. Our per barrel equivalent LOE declined from $19.60 in Q2 2023 to $18.72 in Q3 2023.

在成本方面，雖然我們繼續看到行業的通膨壓力，但我們第三季的業績非常令人鼓舞，因為我們按絕對值和按每股計算的季度環比降低了租賃營運費用。我們的每桶當量 LOE 從 2023 年第二季的 19.60 美元下降至 2023 年第三季的 18.72 美元。

We remain focused on cost control and margin expansion despite the current inflationary environment. For the fourth quarter, our guidance for lease operating expense is expected to be between $60.5 million and $67 million. So we also continue to control our G&A costs in the third quarter. We reported cash G&A of $16.7 million, which was within our guidance range. For the fourth quarter, we expect cash G&A to be similar within a range of $15.4 million to $17 million.

儘管當前存在通膨環境，但我們仍專注於成本控制和利潤擴張。對於第四季度，我們的租賃營運費用指引預計在 6,050 萬美元至 6,700 萬美元之間。因此，我們在第三季也繼續控制一般管理費用。我們報告的現金管理費用為 1,670 萬美元，在我們的指導範圍內。對於第四季度，我們預計現金管理費用將在 1540 萬美元至 1700 萬美元之間。

So turning to our balance sheet. During 2023, we've reduced total debt by almost $300 million from year-end 2022. At the end of the third quarter, we had net debt of $248.2 million, which was a total debt of $397.2 million net of cash and cash equivalents of $149.0 million.

所以轉向我們的資產負債表。 2023 年，我們的總債務比 2022 年底減少了近 3 億美元。第三季末，我們的淨債務為 2.482 億美元，扣除現金和現金等價物後的總債務為 3.972 億美元。1.49 億美元。

So as I mentioned previously, the large reduction in total debt was driven by issuing new 2026 senior secured lien notes in January 2023. Those were issued at par totaling $275 million in a private offering and using the proceeds along with a portion of our considerable cash position to retire all of our outstanding 2023 senior second lien notes.

正如我之前提到的，總債務大幅減少是由於2023 年1 月發行了新的2026 年優先擔保留置權票據。這些票據是透過私募發行的，面額總額為2.75 億美元，並使用所得收益以及我們大量現金的一部分有權註銷我們所有未償還的 2023 年高級第二留置權票據。

We continue to have the flexibility and dry powder to make additional acquisitions, continue to build cash and all the while further paying down debt.

我們繼續擁有靈活性和乾粉來進行更多收購，繼續累積現金，同時進一步償還債務。

Now in quarter 3, 2023, we spent $8 million in CapEx and have invested $31 million for the first 9 months of this year. As I mentioned in our second quarter call, we lowered our CapEx range for 2023 by about $40 million to be in the range of $50 million and $70 million. Included in this range are planned expenditures related to long lead drilling-related items, capital costs for facilities, leasehold, seismic and recompletions.

截至 2023 年第 3 季度，我們在資本支出上花費了 800 萬美元，並在今年前 9 個月投資了 3,100 萬美元。正如我在第二季電話會議中提到的，我們將 2023 年的資本支出範圍降低了約 4,000 萬美元，達到 5,000 萬美元至 7,000 萬美元之間。此範圍包括與長鑽探相關項目、設施資本成本、租賃、地震和重新完井相關的計畫支出。

We expect to continue generating meaningful free cash flow which provides us flexibility to execute on accretive opportunities very quickly. So as we look to next year, we plan to begin drilling again. We'll provide additional details on our 2024 capital investment plan during our year-end call in early March.

我們期望繼續產生有意義的自由現金流，這為我們提供了快速執行增值機會的靈活性。因此，展望明年，我們計劃再次開始鑽探。我們將在 3 月初的年終電話會議上提供有關 2024 年資本投資計畫的更多詳細資訊。

In the meantime, we plan to spud our deepwater Holy Grail prospect at Magnolia in the first quarter of 2024. We have the rig under contract and expect the well to take around 6 to 8 months to drill and complete. It will be drilled off the Magnolia platform, which will allow the well to be placed on production soon after drilling.

同時，我們計劃於 2024 年第一季在 Magnolia 開鑽我們的深水聖杯勘探區。我們已簽訂合同，預計該井需要大約 6 至 8 個月的時間才能鑽完。它將在 Magnolia 平台上鑽探，這將使該井在鑽探後很快就投入生產。

We identified this proved undeveloped opportunity after we acquired Magnolia in December 2019. We believe it's a low-risk opportunity with large production potential for us since we are the sole leaseholder. We are hoping to further advance our outstanding results through the recent acquisition of significant depth and breadth to our leadership team. Over the past several months, we've appointed or promoted several members to our leadership team that I believe will be great additions to help maintain W&T's successful efforts into the future.

2019 年 12 月收購 Magnolia 後，我們發現了這項尚未開發的機會。我們認為，這是一個低風險的機會，但對我們來說具有巨大的生產潛力，因為我們是唯一的租賃人。我們希望透過最近對我們的領導團隊進行深度和廣度的收購，進一步推進我們的傑出業績。在過去的幾個月裡，我們任命或提拔了幾名成員加入我們的領導團隊，我相信這些成員將是幫助 W&T 未來保持成功的重要補充。

So as I mentioned on the last call, in early July, we appointed Sameer Parasnis as our new Chief Financial Officer, and welcomed him to our senior leadership team. In early September, we promoted Ford Peters to Vice President of Land. In early October, we appointed John Poole as our new Vice President of HSE&R. John's experience will be particularly important toward enhancing our commitment to sustainability.

正如我在上次電話會議中提到的那樣，7 月初，我們任命 Sameer Parasaki 為新任首席財務官，並歡迎他加入我們的高級領導團隊。九月初，我們將福特彼得斯 (Ford Peters) 提升為土地副總裁。 10 月初，我們任命 John Poole 為新任 HSE&R 副總裁。約翰的經驗對於加強我們對永續發展的承諾尤其重要。

So before I close the call, I'd like to tell you about our 2022 ESG report that we issued in mid-August. W&T's cultural success and sustainability is built on environmental stewardship, sound corporate governance and contributing positively to our employees and the communities where we work and operate. Ongoing commitment to ESG includes making a concerted effort in reaching out to our major shareholders for feedback and addressing their concerns, while continuously improving our ESG metrics and transparency.

因此，在結束通話之前，我想先向大家介紹一下我們在 8 月中旬發布的 2022 年 ESG 報告。 W&T 的文化成功和永續發展建立在環境管理、健全的公司治理以及為我們的員工以及我們工作和運營的社區做出積極貢獻的基礎上。對 ESG 的持續承諾包括共同努力向我們的主要股東尋求反饋並解決他們的擔憂，同時不斷改進我們的 ESG 指標和透明度。

To assist with development, implementation and monitoring of ESG initiatives and policies, we've established an ESG committee with our newest Board member, Dr. Nancy Chang, as the Chair of the committee. We believe that Dr. Chang will help guide our continuous improvement and assist us in our commitment to the highest standards of ESG and corporate governance.

為了協助制定、實施和監督 ESG 措施和政策，我們成立了 ESG 委員會，由我們最新的董事會成員 Nancy Chang 博士擔任委員會主席。我們相信張博士將幫助指導我們的持續改進，並協助我們致力於最高標準的 ESG 和公司治理。

So since our inaugural 2019 report, we've seen our total Scope 1 GHG emissions decreased by 20%. Our onshore facility emissions have also decreased over that same period with sulfur dioxide emissions down 54%. In addition to improvements in our reportable emissions, we've also implemented new procedures that allow us to estimate and track waste that is recycled, injected or sent to landfills.

因此，自 2019 年首份報告以來，我們的範圍 1 溫室氣體排放總量減少了 20%。同期我們的陸上設施排放量也有所下降，二氧化硫排放量下降了 54%。除了改善可報告排放量外，我們還實施了新程序，使我們能夠估算和追蹤回收、注入或送往垃圾掩埋場的廢棄物。

We're also reaching out to our shareholders to elicit feedback on say-on-pay, performance alignment and ESG initiatives. In 2023, we've enacted additional substantive changes to compensation programs based on this feedback and plan to continue to engage with our major shareholders to ensure alignment. So in closing, we're very pleased with how well we performed thus far in 2023, both operationally and financially.

我們也與股東聯繫，徵求有關薪酬發言權、績效調整和 ESG 措施的回饋。 2023 年，我們根據這些回饋對薪酬計劃進行了額外的實質變更，並計劃繼續與我們的主要股東合作以確保一致。最後，我們對 2023 年迄今的營運和財務表現感到非常滿意。

I'd like to thank our team at W&T as I believe we're well positioned for continued success in the future. Our strong financial position provides us with optionality and flexibility moving forward. Our liquidity and cash position enables us to continue to evaluate growth opportunities, both organically and inorganically.

我要感謝我們 W&T 的團隊，因為我相信我們已經做好準備，可以在未來繼續取得成功。我們強大的財務狀況為我們提供了前進的選擇和靈活性。我們的流動性和現金狀況使我們能夠繼續有機和無機地評估成長機會。

And we're poised to execute on creating opportunities that meet our long-standing improving criteria. We believe the Gulf of Mexico is and will continue to be a world-class basin strong producing assets. Quickly evaluating and executing on opportunities within our focus area is a pillar of our success. We have a premier portfolio of both shallow water, deepwater properties in the Gulf of Mexico that have low decline rates and significant upside.

我們準備好創造符合我們長期改進標準的機會。我們相信墨西哥灣現在並將繼續是一個世界級的盆地，擁有強大的生產資產。快速評估和執行我們重點領域內的機會是我們成功的支柱。我們在墨西哥灣擁有一流的淺水和深水資產組合，這些資產遞減率低且具有顯著的上升空間。

Our management team's interests are highly aligned with those of our shareholders, given our 34% stake in W&T's equity, which is one of the highest of any public E&P company. We welcomed the positive mood and improved outlook for our industry and believe W&T will continue to build value for shareholders as we execute our strategy. We're happy to be returning value again to shareholders in cash.

我們的管理團隊的利益與股東的利益高度一致，因為我們持有 W&T 34% 的股權，這是所有上市勘探與生產公司中最高的股權之一。我們對行業的積極情緒和改善的前景表示歡迎，並相信 W&T 在執行策略時將繼續為股東創造價值。我們很高興再次以現金方式向股東回報價值。

With that, operator, we can open the lines for questions.

接線員，有了這個，我們就可以打開提問線路了。

(Operator Instructions)

（操作員說明）

Our first question comes from Nate Pendleton with Stifel.

我們的第一個問題來自內特·彭德爾頓 (Nate Pendleton) 和史蒂菲爾 (Stifel)。

Congrats on another strong quarter and the new dividend.

祝賀又一個強勁的季度和新的股息。

Thanks, Nate.

謝謝，內特。

My first question, with your continued success in the M&A market, I wanted to get your thoughts on the opportunity set and the size of the packages you are seeing on the market today?

我的第一個問題，隨著您在併購市場的持續成功，我想了解您對今天市場上看到的機會集和套餐規模的看法？

Yes. The opportunity is always good. It's used to -- a matter of pricing and timing as the price of oil and natural gas float up and down, it makes it difficult for people to make decisions about how they want to move forward. We recognize that.

是的。機會總是好的。過去，隨著石油和天然氣價格的上下浮動，定價和時間安排成為問題，這使得人們很難決定他們想要如何前進。我們認識到這一點。

We're patient. We just -- we adhere to the principles that we've established over time, and that carries us through and -- but it does require some patience. I think that the company is well positioned going forward to either make acquisitions or drill. And we'll have a little bit more on that later on in the year.

我們很有耐心。我們只是——我們堅持我們長期以來建立的原則，這些原則帶領我們度過難關——但這確實需要一些耐心。我認為該公司在未來進行收購或鑽探方面處於有利地位。今年晚些時候我們將對此進行更多介紹。

And given your ability to optimize production and use workovers to mitigate decline rates in the quarter, can you provide us any details on what you are able to do from an optimization perspective and how much more running room you have for further initiatives?

鑑於您有能力優化生產並利用修井來減輕本季度的遞減率，您能否向我們提供任何詳細信息，說明您從優化的角度能夠做什麼，以及您還有多少運行空間來採取進一步的舉措？

Yes. This is William Williford, I'll answer that. Essentially, we kind of base it on projects that we can think we can turn cash flow around pretty quickly and get good production associated with it. That's why you can see us from a strong cash flow position, you will see a lot of expenses going out versus the cash we have going in, we kind of plan it out accordingly. So that's kind of how we said, so it can be officially spin our cash effectively.

是的。我是威廉‧威利福德，我來回答。從本質上講，我們將其建立在我們認為可以很快扭轉現金流並獲得良好生產的項目之上。這就是為什麼你可以看到我們擁有強勁的現金流狀況，你會看到很多費用支出與我們投入的現金相比，我們相應地進行了計劃。這就是我們所說的，因此它可以正式有效地旋轉我們的現金。

Our next question comes from Jeff Robertson with Water Tower Research.

我們的下一個問題來自 Water Tower Research 的 Jeff Robertson。

Tracy, can you provide any update on the Cox situation in the acquisition that you all talked about that I think is just tied up in court?

特雷西，您能否提供有關您都談到的收購中考克斯情況的最新情況，我認為這只是在法庭上進行的？

Yes. Yes, that's a very good question. The bankruptcy process is particularly difficult one. There's a lot of emotion, there's a lot of debts that haven't been paid. Otherwise, they wouldn't be there. So the process is at best variable as to how it proceeds. We were the high bidder at the auction. And since then -- and we've actually gotten to the point where we signed the PSA with the debtor. However, there are other interests -- that weren't interested in because it didn't relay a particularly good return to them.

是的。是的，這是一個非常好的問題。破產程序尤其困難。有很多的情感，有很多的債務沒有還清。否則，他們就不會在那裡。因此，該過程的進展方式充其量是可變的。我們是拍賣會上的最高出價者。從那時起，我們實際上已經與債務人簽署了 PSA。然而，還有其他興趣——他們不感興趣，因為它沒有為他們帶來特別好的回報。

But it's really a hard situation for everyone. Nobody is happy. Everybody is usually in a position where they're losing money, and nobody likes to lose. I think it just will require more patience. I can't tell you that I fully understand the process.

但這對每個人來說確實是一個艱難的處境。沒有人高興。每個人通常都處於賠錢的境地，而且沒有人喜歡賠錢。我認為這需要更多的耐心。我不能告訴你我完全理解這個過程。

I'm not sure if anyone fully understands the process. We've been in this position before looking for properties and through bankruptcy courts. It's a difficult situation for all. And the best thing to do is just be patient and see what develops because there's going to be changes all along the way. So I think it's going to take a little while longer to sort it out. We don't know 100% if this is something that will happen favorably toward us or how it will end up in the next several weeks.

我不確定是否有人完全理解這個過程。在尋找財產和通過破產法庭之前，我們一直處於這種境地。這對所有人來說都是一個困難的局面。最好的方法就是保持耐心，看看會發生什麼，因為一路上都會改變。所以我認為需要更長的時間來解決這個問題。我們並不百分百知道這是否會對我們有利，或者在接下來的幾週內會如何結束。

Tracy, the acquisition that you did close in the third quarter, can you talk about what impact, if any, that has on W&T's overall corporate decline?

Tracy，您在第三季完成的收購，您能談談這對 W&T 公司整體下滑有何影響（如果有的話）？

Yes. Essentially, if you look at the press release we put out there, I think, we said, it was around 2,400 barrels associated with quarter North once we added a full production. I think when we first got the asset under our roof, we actually kind of look at it and see what we can do as far as efficient things that we get more efficient, optimize production and that sort of things.

是的。本質上，如果你看一下我們發布的新聞稿，我認為，我們說過，一旦我們增加了全部產量，北四分之一地區的產量約為 2,400 桶。我認為，當我們第一次獲得資產時，我們實際上會對其進行研究，看看我們可以做些什麼來提高效率，優化生產等等。

Sometimes the -- we got to look at some of the facilities and do some -- spend some costs there to kind of look at the future and then maintaining production over time. And with that increase, that kind of helps maintain our overall decline for the company.

有時，我們必須查看一些設施並做一些工作，在那裡花費一些成本來展望未來，然後隨著時間的推移維持生產。隨著這種成長，這有助於維持公司整體的下滑。

I'll add to that just a little bit, Jeff, very often when we first make these acquisitions, the seller isn't spending a lot of money on maintenance and the other things they would normally spend money on.

傑夫，我要補充一點，當我們第一次進行這些收購時，賣方通常不會在維護和其他他們通常會花錢的事情上花很多錢。

And lastly, Tracy, are you willing to share an AFE for Holy Grail?

最後，Tracy，你願意分享 Holy Grail 的 AFE 嗎？

I don't think I have those total dollar amounts yet. We're still working on some of the longer lead items that we need to resolve. The rig will be coming from the bank to get offshore. So I'll probably be able to give you a little more clarity on that after the first few year.

我想我還沒有這些總金額。我們仍在處理一些需要解決的較長的潛在項目。鑽井平台將從岸邊運送至海上。因此，在最初的幾年之後，我可能能夠讓您更清楚地了解這一點。

And to be clear, the longer lead items are the some of the items that would allow you to tie this in pretty quickly, right?

需要明確的是，較長的引導項目是一些可以讓您很快將其聯繫起來的項目，對吧？

Yes.

是的。

(Operator Instructions)

（操作員說明）

Showing no further questions, I would like to turn the conference back over to Tracy Krohn for any closing remarks.

沒有再提出任何問題，我想將會議轉回給特雷西·克羅恩 (Tracy Krohn) 進行閉幕致辭。

Thank you, operator. Thanks for joining us this quarter. We're happy that we're on a really good track for this year and also very happy to be returning dividends again to shareholders. So we look forward to that for a long time. And we appreciate your attendance, and we'll talk to you very soon. Thank you.

謝謝你，接線生。感謝您本季加入我們。我們很高興我們今年的發展勢頭非常好，也很高興再次向股東返還股息。所以我們對此期待已久。我們感謝您的出席，我們很快就會與您聯繫。謝謝。

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.

會議現已結束。感謝您參加今天的演講。您現在可以斷開連線。