Greta Drefke

Greta Drefke asked about the key operational steps and timeline for the Monument project's path to first oil by year-end 2026, specifically clarifying the March spud timing for both wells. She also inquired about the remediation plan for the Genovesa safety valve issue, including equipment procurement and rig mobilization for the fix.

Answer

Paul Goodfellow, President and CEO of Talos Energy, explained that Beacon will continuously operate one rig for both Monument wells starting in March, with completion expected by year-end. Regarding Genovesa, he detailed the piston failure, the plan to use an intervention vessel to run an insert safety valve in early H2 2026, and differentiated it from the earlier Sunspear issue.

Greta Drefke from Goldman Sachs inquired about the key operational steps and timeline for the Monument project's first oil by year-end 2026, specifically asking if the March spud timing applies to both wells. She also asked for details on the remediation plan for the Genovesa safety valve issue, including equipment delivery and rig procurement timelines.

Answer

Paul Goodfellow, President and CEO of Talos Energy, confirmed that Beacon will continuously operate one rig for the Monument project, drilling both wells back-to-back starting in March, with completion expected by year-end. Regarding Genovesa, Mr. Goodfellow explained the isolated piston failure on the 2018 well, noting no environmental incident. He detailed the plan to run an insert safety valve using an intervention vessel in early H2 2026, aligning with the facility operator, and differentiated this from the earlier Sunspear issue.

Greta Drefke from Goldman Sachs sought details on the near-term targets within the $100 million cost savings plan and asked for the outlook on the pace of share repurchases, questioning if the Q2 level is a sustainable run rate.

Answer

VP & Interim CFO Gregory Babcock detailed that near-term savings are coming from capital efficiency and commercial improvements. He explained that the share repurchase program aims for up to 50% of free cash flow but advised viewing the cadence over multiple quarters, as offshore results can be lumpy. He confirmed the stock remains attractive and the program will continue.

Greta Drek of Goldman Sachs inquired about the M&A outlook in the Gulf of Mexico for both Talos and the broader industry, and asked about the company's appetite for further debt reduction versus other capital allocation priorities.

Answer

Interim President & CEO Joseph Mills noted that the administration's financial assurance plan has had a 'chilling effect' on M&A but hopes for a rollback. He stated Talos will focus on high-impact asset acquisitions rather than large corporate takeovers. EVP & CFO Sergio Maiworm added that the near-term priority is repaying the revolver by year-end, after which the board will weigh other options like share repurchases against investment opportunities.

Greta Drefke from Goldman Sachs inquired about National Fuel Gas Company's optimal production growth rate amidst natural gas price volatility and plans for further delineation to expand Upper Utica inventory.

Answer

Justin Loweth, President of Seneca Resources and National Fuel Midstream, affirmed a mid-single-digit growth rate (3%-7%) as the base plan, primarily governed by interstate pipeline capacity, and indicated ongoing appraisal and delineation efforts to potentially expand the 400+ Utica locations.

Greta Drefke from Goldman Sachs asked for details on the spending cadence and key milestones for the Tioga Pathway project in fiscal 2026, and also inquired about the outlook for D&C costs, considering service cost deflation versus input cost inflation.

Answer

President & CEO David Bauer stated that for the Tioga project, construction will begin in the spring with the bulk of spending in the summer. Justin Loweth, President of Seneca Resources, addressed costs by saying he sees more tailwinds than headwinds for service costs, expecting them to be 'slightly down to neutral' and noting the company is insulated from near-term steel price volatility.

Greta Drefke inquired about the outlook for growing in-basin demand, power-related agreements, and the attractiveness of National Fuel Gas's integrated business model, plus regulated M&A.

Answer

Justin Loweth discussed opportunities for other producers investing less capital and potential industrial development. CEO David Bauer noted the pipeline business as the most attractive near-term opportunity and interest in regulated M&A.

Greta Drefke (Goldman Sachs) asked how Range Resources evaluates free cash flow allocation among share repurchases, debt reduction, and other investments, given its achievement of target net debt, and sought the company's latest thoughts on M&A, specifically regarding accretive acreage packages.

Answer

CFO Mark Scucchi stated that Range Resources will continue to do 'all of the above,' balancing deleveraging, opportunistic share repurchases (e.g., 50% of FCF year-to-date 2025), and investing in its growth plan. CEO Dennis Degner noted that while large-scale M&A is limited by blocked-up acreage, opportunities exist for 'white space' acreage additions and extending laterals within their footprint, including potential state park leasing.

Greta Drefke inquired about Range Resources' free cash flow allocation strategy, specifically between share repurchases, debt reduction, and other investments, and sought the company's latest thoughts on M&A opportunities for accretive acreage packages.

Answer

CFO Mark Scucchi stated that Range's capital allocation priorities have shifted from deleveraging to increasing shareholder returns, with share repurchases and dividends growing as a percentage of free cash flow. He indicated a continued balanced approach, executing efficiently and opportunistically. CEO Dennis Degner noted that while large-scale M&A is limited by Range's blocked-up acreage, opportunities exist for 'white space' leasing and extending laterals within their footprint, with some potential for state park leasing in the future.

Greta Drefke questioned the company's hedging strategy for 2026 and 2027 and asked at what debt level Antero might significantly increase its capital returns to shareholders.

Answer

CFO Michael Kennedy described the 2026 hedges as an opportunistic move to capitalize on a rare market dynamic, noting they are not essential given the company's low debt. He stated that the pace of capital returns is driven more by the stock's valuation than a specific debt target, and Antero is already positioned to use all its free cash flow for buybacks if opportunities arise.