Kalei Akamine

Kalei Akamine asked about Viper's portfolio of lower zoned rights and whether competitive portions have already been transferred or leased to Diamondback.

Answer

Kaes Van't Hof, CEO, clarified that not all deep rights have been leased yet, and Viper Energy will likely be a first call for Diamondback's development on a market basis. He cited Spanish Trail, where Viper owns 100% of minerals, as a prime example of the long-term dividends from the parent-sub relationship for deeper zone development.

Kalei Akamine asked about the wide range in Viper Energy's 2026 oil production guidance, seeking clarity on whether it reflects visibility or performance. She also inquired if Diamondback's new gas contracts, securing higher gas realizations, would benefit Viper's revenue, and about the proportion of Viper's lower zoned rights portfolio that has been transferred to Diamondback.

Answer

President Austen Gilfillian explained that the wide guidance range primarily reflects limited visibility into third-party activity beyond existing DUCs and permits for the second half of 2026, with better visibility for the first half. CEO Kaes Van't Hof confirmed that Diamondback's marketing contract benefits would roll through to a good majority of Viper's production, positively impacting gas realizations. Regarding deep rights, Mr. Van't Hof stated that not all have been leased, with a significant amount of unleased deep rights remaining, and Viper Energy is a logical first call for Diamondback's development, citing Spanish Trail as a prime example of their long-term partnership.

Kalei Akamine asked how long Viper's Permian volumes could continue to grow, given basin-wide activity reductions and expectations of zero oil growth, especially since Viper is exposed to about half of all third-party activity and benefits from its Diamondback relationship. He also inquired if Diamondback (FANG) would consider using its free cash to purchase more VNOM shares, given Viper's current valuation.

Answer

CEO Kaes Van't Hof attributed Viper's growth to the Diamondback-Viper relationship, expecting a 5-7% interest in Diamondback's wells for the next five years, combined with broad third-party exposure. Regarding FANG buying VNOM shares, he stated it's 'certainly on the table' but noted Diamondback's own strategic priorities, including reducing its share count. He emphasized Viper's undervalued status and the rationale for the non-Permian asset sale to enable Viper to reduce its own share count.

Kalei Akamine (Bank of America) asked Greg Givens about the 15/16 pads, specifically the sequencing of completions for the three zones, frac job details, and where in the basin this successful design, which has de-risked 130 upside locations, will be applied next. She also asked about the Montney plant turnarounds scheduled for Q2, inquiring about their typical cadence (e.g., annual), the notice period from operators, and whether improved plant performance or yield is expected post-maintenance.

Answer

Greg Givens (EVP and COO, Ovintiv) detailed the 15/16 pad in the Carr area, which utilized 14 wells per section, adding a third zone (lower Montney/Sexsmith) and increasing upper cube density with a 'fairly normal frac design.' After over 100 days online, lower zones exceed expectations, and upper zones are holding up. This design proves up 130 of ~600 upside locations, with plans to apply it systematically across other parts of Carr, Wapiti, and additional acreage. He also explained that Montney plant turnarounds are routine, occurring every 2-3 years for maintenance, with ample prior notice. He noted that Q2 will see an infrequent alignment of five simultaneous turnarounds, requiring significant coordination to minimize impact, leading to guidance at the lower end of 83,000-87,000 bbl/day for Montney production. Post-maintenance, he expects no significant yield increase, as these are typically routine rather than capacity-enhancing upgrades.

Kalei Akamine (Bank of America) asked for details on the 15/16 pad, including the sequencing of completions for the three zones, frac job specifics, and where this design will be applied next in the basin. She also inquired about the cadence of Montney plant turnarounds, typical notice from operators, and whether improved performance or yield is expected post-maintenance.

Answer

EVP and COO Greg Givens explained that the 15/16 pad in Carr used 14 wells per section, adding a third zone (Sexsmith) and increasing density in upper zones with a normal frac design, showing strong initial results and proving up 130 upside locations. He stated that Montney plant turnarounds are routine (every 2-3 years), usually well-known in advance, but Q2 2026 has an unusual cluster of five. He clarified that these are typically for routine maintenance, not upgrades, so significant performance or yield increases are not expected.

Kalei Akamine questioned the capital efficiency trajectory in the Montney, asking if the full impact of well cost savings is reflected in the current year's program, and also asked if Ovintiv would consider monetizing its Permian water infrastructure assets.

Answer

EVP & COO Greg Givens clarified that the $1.5 million per well savings in the Montney were already baked into the original guidance and that future improvements would be in the low single digits annually. President and CEO Brendan McCracken responded that monetizing the valuable water infrastructure is something the company evaluates on an ongoing basis.

Kalei Akamine asked about the 2026 guidance, specifically the number of targeted drills and fills, the DUC backlog supporting the program, and the level of conservatism in the volume guidance, given new efforts like surfactants and Barnett. She also inquired about the 64% working interest in the Barnett, which is the lowest in Diamondback's stack, and opportunities to increase it organically or inorganically.

Answer

CEO Kaes Van't Hof explained that the disclosure is simplified to completed lateral feet, maintaining a solid DUC backlog for flexibility. He noted that 2026 CapEx is guided towards the lower end for Q1 and Q2, with potential for further reduction if Barnett costs and surfactant trends improve, but this is not yet factored into guidance due to conservatism. Regarding Barnett working interest, Kaes Van't Hof stated they are always looking to increase it through organic growth, swaps, trades, and mineral acquisitions, as the position was built organically. He also clarified that the model doesn't show a meaningful build or draw of DUCs this year.

Kalei Akamine inquired about the 2026 guide, specifically targeted drills and completions, DUC backlog, and conservatism in volume given new efforts. She also asked about opportunities to increase Diamondback's 64% working interest in the Barnett.

Answer

CEO Kaes Van't Hof stated disclosure is simplified to lateral feet completed, emphasizing capital efficiency and a solid DUC backlog for flexibility. He noted 2026 CapEx is guided towards the lower end for Q1/Q2, with potential for further reduction in H2 if Barnett/surfactant trends are favorable. Kaes Van't Hof addressed Barnett working interest, confirming continuous efforts to increase it through organic growth, swaps, trades, and mineral acquisitions, built through partnerships.

Kalei Akamine sought clarification on the definition of maintenance capital at $925 million per quarter, asking for the associated maintenance oil production level and if it includes non-D&C spend. She also asked for an update on the D&C backlog at year-end and how Diamondback plans to activate it, specifically if continuous pumping would reduce the need for additional frac crews.

Answer

Kaes Van't Hof (CEO, Diamondback Energy) explained that the Q4 CapEx range, multiplied by four, is a reasonable estimate for total DC&E plus non-DC&E CapEx to maintain approximately 510,000 barrels of oil per day (505,000 bbl/day in Q1 2026). He highlighted improved capital efficiency compared to previous years. Regarding the DUC backlog, Kaes Van't Hof stated that it remains well-positioned due to higher-than-expected drilling activity, providing a structural advantage. He noted that continuous pumping is exciting because it allows for using 'one less crew, most likely half to one less crew on an annual basis.'

Kalei Akamine of Bank of America asked about the company's 2026 oil hedging strategy and potential operational synergies from the pending Endeavor water asset sale.

Answer

CEO Kaes Van't Hof explained their patience on 2026 hedges is due to the high cost of deferred puts, and the need for hedging decreases as the balance sheet strengthens. He stated that the base dividend is protected at $37-$38 oil. Regarding the water assets, he noted that while a sale would create synergies for the combined system, it would not meaningfully change Diamondback's own operational capabilities, which are already set up for large-scale development.

Kalei Akamine asked for an update on frac efficiency goals (wells per crew) and inquired about the conditions that would lead to hitting the low end of the revised capital guidance range.

Answer

President Kaes Van’t Hof confirmed that the goal of 120 wells per crew per year is achievable, which could mean needing fewer fleets in the future. He clarified that reaching the low end of the capital range ($3.4 billion) would be a negative outcome, likely triggered by a 'red light' macro scenario with sub-$50 oil prices, forcing another crew to be dropped.

Kalei Akamine asked about the potential financial structure of a data center deal, including how benefits like land sales or gas pricing would flow back to Diamondback. He also inquired about the possibility of creatively using Viper Energy (VNOM) shares to manage the Endeavor share overhang.

Answer

President Kaes Van't Hof indicated the main benefit of a data center deal would be equity participation in the power plant and supplying the gas, rather than a simple land sale. The structure is flexible, with discussions ongoing about fixed price, collars, or index pricing for gas. He declined to comment on specific strategies for the share overhang but reiterated that Diamondback is happy with its majority ownership in Viper (VNOM), which was structured to keep Viper under-levered for future consolidation.

Kalei Akamine requested more detail on the 2025 CapEx plan, including original well cost assumptions and non-D&C spending. He also asked about the potential deal structure for the Deep Blue asset drop-down and whether the large royalty drop-down to Viper would be a single transaction.

Answer

President and CFO Kaes Van't Hof noted the original well cost assumption was ~$625/foot, now down to $600. He mentioned some one-time environmental and infrastructure spending in 2025 that should normalize lower. For asset sales, he stated a preference for cash from Deep Blue but will remain flexible. For the Viper transaction, the preference is to complete most, if not all, of the drop-down at once to quickly establish the new, larger scale of the business.

Kalei Akamine inquired about the cadence of lower cash OpEx (LOE plus GP&T) for the full year 2026 compared to 2025, and whether it reflects GP&T optimization efforts related to NGLs.

Answer

John Raines, SVP of E&P Asset Management, attributed the lower OpEx to consistent improvements in workover optimization, reduced failure rates, condition-based maintenance, and the energizing of two microgrids in the Delaware Basin. He confirmed that the drop in Q4 GP&T was directly related to new gathering and processing contracts in the Delaware Basin at a much lower rate. He noted a Q1 uptick due to weather-related downtime and higher workover activity in the Williston and Eagle Ford.

Kalei Akamine questioned the cadence of lower cash OpEx (LOE + GP&T) for the full-year guide versus Q1 2026, and whether it reflects GP&T optimization efforts.

Answer

SVP of E&P Asset Management John Raines attributed full-year OpEx drops to workflow improvements, workover optimization, and reduced failure rates. Q4 benefited from condition-based maintenance and microgrids. The Q1 2026 uptick is due to weather downtime and higher workover activity in the Williston and Eagle Ford. Q4 GP&T drop is linked to a new, lower-rate Delaware Basin gathering and processing contract.

Kalei Akamine asked about the performance of Devon Energy's Wolfcamp drilling program in the Delaware Basin for the current year, comparing results to expectations, and whether a similar proportion of the program is anticipated for 2026. She also inquired about Devon's strategy for federal lease sales, which are now occurring with steady cadence, and if they will be a part of the company's cash allocation priorities for 2026.

Answer

SVP of Asset Management John Raines, CEO Clay Gaspar, and SVP of Operations Tom Hellman confirmed that Wolfcamp wells are performing well, meeting or exceeding expectations, as part of a diversified 2025 program. Tom Hellman highlighted significant D&C efficiency gains in the Delaware Basin, including a new record of 1,800 feet per day, driven by AI tools and benchmarking. Clay Gaspar stated that Devon is well-positioned to compete in federal lease sales due to its existing footprint, operational efficiencies, and infrastructure, and will actively participate in the process as part of its ground game strategy.

Kalei Akamine asked about the performance of Devon Energy's Wolfcamp drilling program in the Delaware Basin for the current year, how results compare to expectations, and if a similar proportion of the program is anticipated for 2026. He also inquired about Devon's strategy for participating in federal lease sales, given their steady cadence, and if they will be a part of the 2026 cash allocation priorities.

Answer

SVP of Asset Management John Raines stated that Wolfcamp is performing well, meeting or exceeding expectations, and noted a diversified 2025 program across multiple zones. He expects stability and consistency in the Delaware's multi-zone co-development for 2026, balancing well productivity with NPV and inventory runway. SVP of Operations Tom Hellman highlighted D&C efficiency gains in the Delaware, including AI tools for faster drilling (achieving 1,800 ft per day) and other operations. CEO Clay Gaspar confirmed that Devon will participate in federal lease sales, leveraging its existing footprint, efficiencies, infrastructure, and business optimization to be highly competitive, viewing it as an interesting opportunity in the Delaware Basin.

Kalei Akamine questioned EQT's learnings from the MVP Mainline's performance above nameplate capacity and how these insights apply to expansion projects. She also asked about the rationale behind upsizing the Clarington Connector pipeline and the market options available for clearing gas once it reaches Clarington.

Answer

President and CEO Toby Rice noted that the MVP Mainline's new record flow of over 2.1 Bcf/d shows its limit under cold weather, reinforcing the need for more volume, which Boost will address. CFO Jeremy Knop explained that the Ohio market opportunity, driven by new demand and rolling over FT contracts, along with the anticipated decline of Ohio Utica gas inventory, led to the Clarington Connector's upsizing. This pipeline will allow EQT to backfill volumes from Pennsylvania, capture premium pricing, and potentially grow volumes sustainably.

Kalei Akamine asked about EQT's learnings from the Mountain Valley Pipeline (MVP) mainline operating above nameplate capacity and how these insights apply to expansion projects. She also questioned the rationale behind upsizing the Clarington Connector pipeline and the market options available for clearing gas in Ohio.

Answer

EQT President and CEO Toby Rice noted that MVP's new record flow of over 2.1 Bcf/d demonstrates demand, and Boost will address market needs with anticipated high utilization. CFO Jeremy Knop explained that the Clarington Connector upsizing targets the Ohio market opportunity, driven by new demand, rolling over FT contracts, and the projected decline of Ohio Utica gas inventory, positioning EQT to capture premium pricing and grow volumes.

Kalei Akamine asked about EQT's view on 2026 maintenance production given recent portfolio changes, the potential for data center projects in Ohio, and an update on XCL midstream system projects like Clarington Connector.

Answer

Jeremy Knop, CFO, stated that 2026 maintenance production is expected to be approximately flat to the 2025 exit rate. Toby Rice, President and CEO, confirmed EQT is engaged in conversations for Ohio data center opportunities, leveraging its commercial footprint. He updated that the Clarington Connector project is planned for 2026, with some spend in 2025, aiming to de-bottleneck the system for high-return, low-capital gains.

Kalei Akamine sought clarity on EQT's maintenance production for 2026, given recent portfolio changes. She also asked about EQT's reach for data center projects in Ohio and an update on XCL midstream system projects like Clarington Connector.

Answer

Jeremy Knop (CFO, EQT) stated that EQT expects 2026 production to be approximately flat to the 2025 exit rate. Toby Rice (President and CEO, EQT) confirmed EQT considers opportunities across its upstream, midstream, and commercial footprints, including Ohio. He noted Clarington Connector is planned for 2026 to de-bottleneck the system, with some spend in 2025.

Kalei Akamine of Bank of America asked for guardrails on the CapEx profile for EQT's new growth options and inquired about leading-edge D&C capital efficiency metrics compared to 2024, as well as the remaining runway for improvement.

Answer

President and CEO Toby Rice indicated a low single-digit production growth profile to meet new demand, enabled by EQT's scale and low-cost structure. He highlighted single-digit well cost improvements from 2024 to H1 2025, with more benefits expected from the compression program and Olympus integration. CFO Jeremy Knop added that past infrastructure investments are a key driver of current well cost reductions, reinforcing their strategy of "spending money to make money."

Kalei Akamine asked about the volume of gas committed to long-term sales agreements, the flexibility to shift gas to higher-value markets (especially in Haynesville), and Expand Energy's desired LNG exposure post-merger, including the necessity of physical matching.

Answer

Mike Wichterich, Chairman of the Board and Interim President and CEO of Expand Energy, noted that commitments are made daily, some requiring roll-off, and sees the Gulf Coast (Haynesville) as a key area for growth and meeting demand due to its competitive advantage. Josh Viets, EVP and COO, added that commitments are staged, with many sales over a five-year timeframe, providing optionality. Brittany Raiford, VP, Treasurer, and Interim CFO, explained that the company is agnostic to specific premium markets (LNG, power, industrial) and seeks the highest return to diversify sales exposure, not being overly prescriptive on LNG percentages.

Kalei Akamine from Bank of America asked about the amount of Expand Energy's gas committed to long-term sales agreements, seeking to understand the flexibility in its portfolio to shift gas to higher-value markets, and if Haynesville molecules offer more flexibility. She also inquired about the company's desired LNG exposure (e.g., a quarter or a third of gas) and whether it's necessary to physically match the molecule at the wellhead to take away on the water, or if synthetic methods could be used.

Answer

Mike Wichterich, Chairman of the Board and Interim President and CEO, stated that while commitments are made daily, the Gulf Coast (Haynesville) offers the most growth potential and marketing opportunities due to its ability to increase production to meet demand. Josh Viets, EVP and COO, added that commitments are staged, with many sales over a five-year timeframe, and that sales can become assets, allowing for molecule movement to higher-priced markets. Brittany Raiford, VP, Treasurer, and Interim CFO, clarified that the company is agnostic to the exact premium markets (LNG, power, industrial) and is not overly prescriptive on LNG exposure, focusing on the highest return way to diversify sales, given the changed gas markets since previous LNG targets.

Kalei Akamine inquired about Pinnacle Gas Services, specifically the plan to address preferred equity, the associated costs, and the size and sufficiency of a new bank facility to support midstream ambitions. Kalei Akamine then followed up, asking if interest had already been fielded for the potential equity sell-down and the timing rationale for the Marquez expansion, particularly if it's motivated by the NextEra Data Center project timing.

Answer

Roland Burns, President and CFO, explained the plan to recapitalize Pinnacle by replacing preferred equity with common equity, which will eliminate expensive dividends and allow cash flow to fund CapEx and a new low-cost credit facility. He expects a new credit facility soon and hopes to complete an equity sale for full redemption by summer. Jay Allison, Chairman and CEO, added that Pinnacle has a giant foothold in the Western Haynesville and will mature with increased activity. Roland Burns further clarified that Marquez Train Two will be operational by summer, emphasizing the need for midstream assets ahead of production and the opportunity to capture third-party business. He expects Pinnacle to be free cash flow positive in the second half of the year after heavy CapEx.

Kalei Akamine of Bank of America asked about the strategy for the planned non-core asset sale, including its potential size and focus. He also inquired about the company's coring program in the Western Haynesville and whether it would help confirm their inventory assumptions.

Answer

President & CFO Roland Burns clarified the asset sale would focus on undeveloped drilling locations that the company cannot develop in the near term, rather than significant producing properties. Chairman & CEO M. Jay Allison added this monetization makes sense as they add new inventory in the Western Haynesville. Regarding the coring program, COO Daniel Harrison confirmed it is designed to gain geological data for steering laterals and to conduct scientific analysis to optimize completions and confirm gas-in-place estimates.

Kalei Akamine of Bank of America inquired about the non-core asset sale strategy, including the potential size, focus on inventory over production, and market valuation metrics. He also asked if the company's coring program was intended to confirm a development thesis of approximately 3,000 locations across three fairways.

Answer

President & CFO Roland Burns explained that the asset sale strategy is focused on monetizing drilling inventory that the company cannot develop in the near term, capitalizing on a market that now values locations highly. CEO M. Jay Allison added this is possible because of the vast new inventory being proven in the Western Haynesville. COO Daniel Harrison confirmed the coring program's goal is to gain geological data for well control and to scientifically validate gas-in-place estimates, aligning with the development view Akamine described.

Kalei Akamine of Bank of America asked about the strategy for the planned non-core asset sale, including its potential size and focus on PDP vs. undeveloped locations. He also inquired about the goals of the Western Haynesville coring program.

Answer

President and CFO Roland Burns clarified that the divestiture strategy is focused on monetizing undeveloped drilling locations that the company would not develop in the near term, rather than selling producing assets, to capitalize on strong market demand for inventory. CEO M. Jay Allison added this is logical as they add significant new inventory in the Western Haynesville. Regarding the coring program, COO Daniel Harrison confirmed it is designed to gain critical geological data for well steering, calculate original gas in place, and gather mechanical properties to optimize future completion designs.

Kalei Akamine of Bank of America asked about the strategy for non-core asset sales, including size and focus, and inquired about the goals of the coring program in the Western Haynesville and its alignment with the company's long-term development view.

Answer

President/CFO Roland Burns clarified that the divestiture plan focuses on monetizing drilling inventory that won't be developed soon, rather than selling current production, to capitalize on strong market demand. COO Daniel Harrison confirmed the coring program is designed to gain geological data for steering laterals and to analyze rock properties, which helps in understanding gas-in-place and optimizing future completions across the vast acreage.

Kalei Akamine of Bank of America asked about the strategy for the planned non-core asset sale, including its potential size and focus. He also inquired about the company's coring program in the Western Haynesville and whether it aims to confirm a development model of approximately 3,000 locations across three fairways.

Answer

President and CFO Roland Burns stated the asset sale will focus on monetizing drilling locations in the legacy Haynesville that Comstock cannot develop in the near term, capitalizing on strong market demand for inventory. Chairman & CEO M. Jay Allison added this is feasible due to the large inventory being added in the Western Haynesville. On the coring program, COO Daniel Harrison confirmed the analyst's view was 'spot on,' explaining the cores provide essential geological data for well steering and completion optimization to de-risk the vast acreage.

Kalei Akamine asked how the backfill commitment wells (7 and 8) fit into Tamboran's plans, given the North pilot was sufficient for production targets, and inquired about the associated net spend to Tamboran. He also asked if the company anticipates having surplus cash at year-end 2026 without additional fundraisers or farm-down, considering operating plans and first revenues.

Answer

CEO Todd Abbott explained that wells 7 and 8 are contractual commitments with Daly Waters Energy, where Tamboran acts as contract operator, adding resiliency to gas production. Regarding funding, he stated that as a high-growth, capital-intensive public company, Tamboran will access capital markets (equity early, debt later) from time to time, also mentioning other funding mechanisms like farm-outs, and emphasizing a thoughtful approach for shareholders.

Kalei Akamine from Bank of America asked about the farmout process, seeking to understand what a successful outcome would entail for Tamboran Resources. She also questioned whether the company, under its current leadership and in preparation for a new CEO, remains committed to its original business plan of pursuing both domestic gas sales and LNG development opportunities.

Answer

Dick Stoneburner, Chair & Interim CEO, stated it was premature to discuss specific valuation expectations for the farmout, emphasizing it's an ongoing, negotiated process with strong interest from a wide range of counterparties. Regarding market opportunities, Stoneburner affirmed Tamboran's continued interest in both domestic gas sales (initially to the Northern Territory by mid-2026, then potentially Southeast markets as Phase Two) and long-term LNG development (brownfield Darwin LNG or greenfield Northern NT LNG), noting that the timing and specific approach might be influenced by the farmout partner.

Kalei Akamine inquired about the modest year-over-year downtick in coal mine methane volumes, seeking to understand the activity set behind these volumes, how it compares to the previous year, and the visibility for future years. She also asked for an update on the company's hedging strategy, specifically when they expect to complete their 2027 hedging program.

Answer

Alan Shepard, President and CEO, explained that coal mine methane volumes are primarily driven by the underlying mining activity of a 20+ year metallurgical mine in Virginia, with volume fluctuations related to the pace of longwall operations. Everett Good, CFO, stated that the company targets approximately 80% hedging for 2027, aiming for a weighted average NYMEX price of about $4. Alan Shepard added that they are currently over 60% hedged for 2027 and will be opportunistic in completing the remaining book.

Kalei Akimine asked about the modest year-over-year downtick in coal mine methane volumes, seeking an understanding of the activity set behind these volumes, how it compares to last year, and the visibility for future years. He also requested a reminder on the company's hedging strategy and when they expect to be done with 2027 hedges.

Answer

Alan Shepard, President and Chief Executive Officer, explained that coal mine methane volumes are primarily driven by the underlying mining activity at a metallurgical mine with a 20+ year life, and any volume fluctuations are a function of the longwall pace. Everett Good, Chief Financial Officer, stated that the company targets approximately 80% hedging for 2027, with a current weighted average NYMEX price of about $4, and is already over 60% hedged. Alan Shepard added that they would be opportunistic in placing the remaining hedges.

Kalei Akamine asked about key operating wins in the Marcellus since the Cabot deal four years ago and if the application of Coterra's best practices could create value through M&A. She also questioned the Marcellus inventory math, specifically if it's a simple calculation of current TIL count versus years and if it includes DMIC delineation work.

Answer

Blake Sirgo, Executive Vice President of Business Units, highlighted significant increases in lateral length, optimized well spacing, and cost reductions across the value chain, such as piping frac water. Michael DeShazer, Executive Vice President of Operations, clarified that inventory math uses a three-year average of wells drilled and adjusts for capital spend and new go-forward costs, allowing more wells for the same capital as costs decrease.

Kalei Akamine asked about key operating wins in the Marcellus since the Cabot deal four years ago, and whether Coterra Energy's best practices could create value through M&A in the Marcellus landscape. She also questioned the Marcellus inventory math.

Answer

Blake Sirgo, Executive Vice President of Business Units, highlighted significant improvements in the Marcellus asset, including increased lateral length, optimized well spacing, and cost reductions (e.g., piping frac water). Michael Deshazer, Executive Vice President of Operations, clarified that Marcellus inventory math is not a simple calculation but considers a three-year average of wells drilled and adjusts for capital spend and new go-forward costs, allowing more wells for the same capital.

Kalei Akamine of Bank of America challenged the use of cash, asking why Coterra prioritizes term loan repayment over more aggressive share buybacks, especially given the stock's discount and strong balance sheet. He also inquired about plans to participate in federal lease sales in New Mexico.

Answer

EVP & CFO Shane Young defended the debt paydown as a facilitator for more robust and consistent buybacks in the long term by reducing volatility. He did not rule out an increased pace of buybacks in the second half of the year. CEO Thomas Jorden confirmed Coterra hopes to be a competitive participant in upcoming federal lease sales, which he noted were an important part of the calendar in the past.

Kalei Akamine (Bank of America) asked about potential upside opportunities for Range Resources' 2026 and 2027 plans, specifically regarding capital and volume performance, and sought an outlook on the NGL macro, including demand growth for propane and ethane and its impact on regional pricing.

Answer

CEO Dennis Degner highlighted operational efficiencies, long lateral drilling, and timely infrastructure utilization as key upside drivers. VP of Marketing Alan Engberg expressed optimism for NGLs, citing increasing demand from commissioned infrastructure, new PDH units, and export capacity expansions, which are expected to improve ethane and LPG pricing relative to natural gas.

Kalei Akamine asked about potential upside to Range Resources' 2026 and 2027 plans regarding capital and volume, and sought an outlook on the NGL macro, including propane and ethane, and whether ethane demand could lead to natural gas parity.

Answer

CEO Dennis Degner identified operational efficiencies in drilling and completions, along with timely infrastructure utilization from midstream partners like MPLX, as key areas for potential upside. VP of Marketing Alan Engberg expressed optimism for the NGL macro, citing increasing demand and export capacity for both LPG and ethane. He noted record ethane exports in September and anticipated improved ethane spreads relative to natural gas, driven by global demand and new cracker startups.

Kalei Akamine from Bank of America inquired about Infinity Natural Resources' preliminary plans for its 2026 activity program, specifically regarding capital expenditure levels, and also asked for the company's perspective on evolving in-basin natural gas demand in Ohio.

Answer

President and CEO Zach Arnold stated that while it's early for 2026 guidance, he does not expect CapEx to decrease from 2025 levels as the company will continue to focus on growth. Regarding in-basin demand, Arnold expressed excitement about new power generation and data centers creating significant local demand, potentially improving local pricing differentials.

Kalei Akamine from Bank of America inquired about Infinity Natural Resources' preliminary thoughts on its 2026 activity program, specifically regarding capital expenditure levels and the balance between growth and free cash flow. He also asked for the company's perspective on in-basin demand and egress in Ohio, referencing a recent power plant acquisition and the Borealis pipeline project.

Answer

President and CEO Zach Arnold responded that while it's early for 2026 guidance, he does not expect capital expenditures to decrease, as the company will continue to focus on developing its high-return inventory to drive growth while maintaining free cash flow. Regarding in-basin demand, Arnold expressed excitement, stating that new power generation and data center demand effectively supplants the need for new takeaway pipelines, which should lead to improved pricing differentials in Ohio, West Virginia, and Pennsylvania.

Kaleinoheaokealaula Akamine from Bank of America inquired about the capital outlook for 2026, questioning if it would be a 'harvest year' following 2025's growth. She also asked what recent M&A transactions in the region signal about asset valuations and Infinity's ability to create value through acquisitions.

Answer

President and CEO Zack Arnold stated that while 2025 CapEx guidance is firm, the 2026 plan is still under evaluation, but the company remains focused on growth. Regarding M&A, Arnold noted that recent deals provide confidence that the bid-ask spread for gas assets is bridgeable. EVP and CFO David Sproule added that recent transaction multiples would have been accretive to Infinity and that the company's strong balance sheet allows them to be patient and selective.

Kalei Akamine of Bank of America asked if the company can now achieve its long-term production targets without the significant capital ramp previously forecasted, given the major efficiency gains.

Answer

Chairman and CEO Ryan Lance affirmed that achieving growth with high capital efficiency is precisely the goal. He noted that since the last long-term plan was issued, the Marathon acquisition and significant efficiency improvements have allowed them to deliver production growth without adding rigs. He reiterated a preference for stable, consistent execution, letting production growth be an output of an efficient capital program.

Kalei Akamine of Bank of America sought details on a proposed permitting bill, including a potential P&A requirement, and asked about the Elk Hills Power Plant's potential PPA, including breakeven economics and resource adequacy pricing.

Answer

President & CEO Francisco Leon advised that details on the permitting bill were premature but stated CRC's existing P&A program of ~1,500 wells/year would prevent it from being a bottleneck. Regarding Elk Hills, Leon declined to provide specific 2026 guidance but emphasized the focus is on securing a long-term, premium-priced contract with a behind-the-meter customer, leveraging the value of reliable power paired with CCS.