Jeff Jay

Jeff Jay from Daniel Energy Partners asked how the longer cycle times associated with 4-mile laterals would impact the cadence of spending and production in future years and sought clarification on whether this shift would degrade the company's inventory life.

Answer

CEO Daniel Brown explained that while the cycle time per well increases, the cycle time per lateral foot decreases, which improves overall capital efficiency. He clarified that the company's inventory life, measured by production capacity and reserve delivery rather than simple well count, should not see significant degradation from the move to longer laterals.

Jeff Jay sought clarification on the Giddings appraisal program, asking how significant a successful outcome would be for the company's drilling location inventory.

Answer

President and CEO Christopher Stavros described the potential as a 'really big deal' given the company's vast 550,000-acre position. He explained that even small successes in expanding the field's boundaries can make a sizable impact on the overall resource base relative to the annual drilling program, and the cumulative effect over multiple years could be 'quite sizable.'

Jeff Jay asked about Argentina, noting the more favorable political climate under the new government and inquiring how Chevron views the changing opportunity set in the country.

Answer

CEO Mike Wirth expressed encouragement over the new government's reform agenda and the improving economic situation. While remaining watchful for durable reforms before committing significantly more capital, he confirmed Chevron is actively evaluating a midstream pipeline opportunity to enhance export capabilities from its Vaca Muerta assets.