Oliver Wang

Oliver Wong questioned the triggers for altering the capital program, such as deferring completions or dropping rigs, and asked for an update on oilfield service cost trends.

Answer

President and CEO Christopher Stavros responded that due to significant well outperformance, the company is not currently pressured to drop a rig or make major activity changes. He emphasized their flexibility and adherence to the 55% reinvestment rate cap. He also noted that service costs are currently flat, with potential for some softness in the second half of the year if commodity prices remain at current levels.

Oliver Wang of TPH&Co. asked for details on the non-D&C portion of the 2025 budget, specifically the magnitude of non-operated CapEx. He also requested an update on the company's progress in optimizing its natural gas netbacks and realizations.

Answer

Executive Hays Mabry clarified that non-operated spending is minimal, accounting for less than $50 million per year. Regarding gas marketing, he stated that while it's a priority, significant changes to gas realizations are more likely in 2026 and beyond as the company pursues longer-term contracts to access markets beyond Waha. He noted more immediate progress has been made on crude oil realizations.