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    Phillips Johnston • Capital One Securities, Inc.

    Phillips Johnston's questions to Granite Ridge Resources Inc (GRNT) leadership

    Phillips Johnston's questions to Granite Ridge Resources Inc (GRNT) leadership • Q2 2025

    Question

    Phillips Johnston of Capital One Securities, Inc. inquired about the drivers for the increased oil mix in the second half of the year, the company's appetite for increasing net debt beyond 2025, and the structure of its operator partnerships, specifically regarding earn-outs or working interest reductions.

    Answer

    President and CEO Tyler Farquharson clarified that the oil mix would be around 52%, driven by new, oilier Permian projects. He affirmed the company's comfort with a leverage ratio of 1.0x to 1.25x and its strategy to outspend cash flow to acquire inventory in the current market. Regarding partnerships, Farquharson explained that there is no upfront promote, but a portion of the interest reverts to the operator partners after a specific return hurdle is achieved.

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    Phillips Johnston's questions to Granite Ridge Resources Inc (GRNT) leadership • Q1 2025

    Question

    Phillips Johnston inquired about the production contribution from Q1 2025 acquisitions, the timing of their closing, and sought confirmation on the full-year guidance for lease operating expenses (LOE).

    Answer

    Luke Brandenberg, President and CEO, stated that a key Delaware Basin acquisition is expected to contribute about 450 barrels per day for 2025, with minimal impact in Q1 due to its late-quarter closing. Tyler Farquharson, CFO, confirmed that the company expects full-year LOE to be at the low end of its guidance range, driven by increasing scale from its operating partnerships.

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    Phillips Johnston's questions to Granite Ridge Resources Inc (GRNT) leadership • Q3 2024

    Question

    Phillips Johnston of Capital One sought clarity on the production trajectory, asking about the magnitude of the expected Q1 2025 production increase and whether the guided mid-teens growth for 2025 applies to total Boe or specifically to oil. He also inquired about the year-end Proved Developed Producing (PDP) decline rate.

    Answer

    Executive Luke Brandenberg projected a significant Q1 production jump due to 2024 capital spending on wells turning to sales in early 2025. He specified that full-year 2025 growth is expected to be in the mid-teens on a Boe basis, driven primarily by oil. He also stated the current PDP decline rate is around 40%, up slightly from the high-30s a year ago due to higher working interest wells.

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    Phillips Johnston's questions to Northern Oil and Gas Inc (NOG) leadership

    Phillips Johnston's questions to Northern Oil and Gas Inc (NOG) leadership • Q2 2025

    Question

    Phillips Johnston sought clarification on the production cadence for the remainder of the year, particularly the magnitude of the expected Q3 decline, and asked what a 'maintenance mode' in 2026 would imply for oil volume targets.

    Answer

    CEO Nicholas O’Grady clarified that Q3 volumes would see a 'modest dip,' likely in the mid-single digits, before rebounding in Q4 to levels similar to Q2. He also stated that a 2026 maintenance scenario would aim to hold production flat against the full-year 2025 average, not the lower second-half levels.

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    Phillips Johnston's questions to Northern Oil and Gas Inc (NOG) leadership • Q1 2025

    Question

    Phillips Johnston questioned what NOG's maintenance capital expenditure would be for 2026 and 2027 if spending falls to the low end of the 2025 range. He also asked if Q1's favorable production taxes and gas price realizations would normalize back toward full-year guidance.

    Answer

    CTO Jim Evans projected that maintenance CapEx for 2026-2027 would remain around the current level of approximately $850 million, assuming no significant change in drilling costs. CFO Chad Allen confirmed that both production taxes and gas price realizations are expected to trend back into the guided range for the full year, explaining that production taxes will likely rise as the higher-tax Permian basin constitutes a larger portion of the production mix.

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    Phillips Johnston's questions to Northern Oil and Gas Inc (NOG) leadership • Q3 2024

    Question

    Phillips Johnston asked if the delay in six XCL wells would materially impact Q4 production and questioned the company's comfort level with the implied Q4 production ramp.

    Answer

    An executive, likely President Adam Dirlam or CEO Nicholas O'Grady, confirmed the XCL delay would not have a material impact due to the company's diversified asset base and outperformance elsewhere, such as from the Point acquisition. CEO Nicholas O'Grady stated that achieving the high end of the Q4 production guidance is possible but depends heavily on the timing of well completions, which is out of their control.

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    Phillips Johnston's questions to Comstock Resources Inc (CRK) leadership

    Phillips Johnston's questions to Comstock Resources Inc (CRK) leadership • Q2 2025

    Question

    Phillips Johnston of Capital One Securities, Inc. followed up on the non-core asset sale, asking about potential proceeds and tax implications. He also questioned how CapEx could remain flat in H2 2025 despite a higher rig count and more wells being drilled.

    Answer

    CEO M. Jay Allison and President/CFO Roland Burns declined to specify potential proceeds for the non-core asset sale but stated they expect no significant tax leakage. COO Daniel Harrison and Roland Burns explained that H2 CapEx remains flat due to significant D&C cost reductions (around 10%), particularly in pipe prices, and the cadence of completions, with less completion activity scheduled for the second half.

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    Phillips Johnston's questions to Comstock Resources Inc (CRK) leadership • Q1 2025

    Question

    Phillips Johnston asked for clarification on the quarterly turn-in-line (TIL) cadence and the company's confidence in the significant second-half production ramp-up implied by guidance. He also asked if Comstock expects to fund any capital outlays for the BKV carbon capture agreement.

    Answer

    President and CFO Roland Burns explained the production ramp is a function of both the number and timing of TILs, noting that Q2 TILs are weighted toward the second half of the quarter, leading to sequential production growth in Q3 and Q4. Regarding the BKV agreement, Burns confirmed Comstock does not expect any significant capital investment; BKV will fund the outlays and get the tax credits, while Comstock will sell its CO2, resulting in a net reduction to operating costs.

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    Phillips Johnston's questions to Expand Energy Corp (EXE) leadership

    Phillips Johnston's questions to Expand Energy Corp (EXE) leadership • Q2 2025

    Question

    Phillips Johnston inquired whether the company would consider M&A in Canada and asked for an update on D&C well costs per foot in its three operating areas, given the new drilling speeds.

    Answer

    President, Director & CEO Domenic Dell’Osso said that expanding to Canada is not in the company's near-term plans, as it's unclear if it would meet their 'non-negotiable' criteria. Executive VP & COO Josh Viets provided updated costs, noting Haynesville wells are now around $1,200/ft, Bossier wells are under $1,500/ft, and Appalachian wells are within 5% of previous guidance.

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    Phillips Johnston's questions to Expand Energy Corp (EXE) leadership • Q2 2025

    Question

    Phillips Johnston from Capital One Securities, Inc. inquired if Expand Energy would consider expanding its footprint into Canada. He also asked for an update on how much D&C well costs have fallen in their three main operating areas.

    Answer

    President, Director & CEO Domenic Dell’Osso indicated that expanding into Canada is not in their near-term plans. Executive VP & COO Josh Viets provided updated well costs, noting Haynesville costs are now around $1,200/foot, Bossier is just under $1,500/foot, and Appalachian costs are within 5% of the original guide.

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    Phillips Johnston's questions to Expand Energy Corp (EXE) leadership • Q2 2025

    Question

    Phillips Johnston from Capital One Securities, Inc. asked if Expand Energy would consider expanding into Canada and requested an update on D&C well costs per foot in its operating areas following recent efficiency gains.

    Answer

    President & CEO Domenic Dell’Osso indicated that an expansion into Canada is not in the company's near-term plans, citing the need to understand the 'above ground economics.' EVP & COO Josh Viets provided updated well costs, stating Haynesville wells are now around $1,200/foot, Bossier wells are just under $1,500/foot, and Appalachian well costs are within 5% of previous guidance.

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    Phillips Johnston's questions to Ovintiv Inc (OVV) leadership

    Phillips Johnston's questions to Ovintiv Inc (OVV) leadership • Q2 2025

    Question

    Phillips Johnston asked for the rationale behind the implied lower capital spending rate in the fourth quarter guidance and the company's confidence in achieving that reduction.

    Answer

    President and CEO Brendan McCracken explained that the lower Q4 capital spend is entirely performance-driven. The company has reduced rig counts in the Permian and Montney and has significantly increased drilling and completion speeds, leading to a front-end loaded capital profile for the year.

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    Phillips Johnston's questions to Ovintiv Inc (OVV) leadership • Q1 2025

    Question

    Phillips Johnston of Capital One asked what specific price or circumstances would trigger a reduction in activity and also inquired about the company's outlook for the AECO gas market as LNG exports ramp up.

    Answer

    Executive Brendan McCracken stated that a decision to cut capital below maintenance levels would be considered if WTI prices dropped below $50 and were expected to remain there for a sustained period. Regarding AECO, he said the company's strategy is to continue diversifying its market access away from the hub, anticipating that production will likely grow to meet new takeaway capacity.

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    Phillips Johnston's questions to California Resources Corp (CRC) leadership

    Phillips Johnston's questions to California Resources Corp (CRC) leadership • Q1 2025

    Question

    Phillips Johnston from Capital One sought clarification on whether PPA discussions are now focused only on industrial customers, moving away from other counterparties. He also asked about the company's strategy for the pace of share buybacks following a strong first quarter.

    Answer

    President and CEO Francisco Leon clarified that while interest has expanded to other industrial players, the primary focus for the Elk Hills PPA remains data centers. CFO Clio Crespy explained the aggressive Q1 buyback was an opportunistic response to a stock value dislocation and that future buybacks will continue to be evaluated against other capital priorities to maximize shareholder value.

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    Phillips Johnston's questions to Chord Energy Corp (CHRD) leadership

    Phillips Johnston's questions to Chord Energy Corp (CHRD) leadership • Q3 2024

    Question

    Phillips Johnston requested key modeling assumptions for the 3-year outlook, including the expected number of gross wells, lateral feet, and average working interest per year. He also asked how much lower the company's base decline rate could fall from the current 35% by the end of the plan.

    Answer

    CEO Daniel Brown provided directional guidance, stating that the operated well count is expected to decrease due to longer laterals, while non-operated activity will increase, leveraging recent acquisitions. Regarding the decline rate, Brown did not provide a specific target but confirmed he expects continued downward pressure on it, driven by the higher mix of 3-mile wells and the shift to a maintenance capital program.

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    Phillips Johnston's questions to Permian Resources Corp (PR) leadership

    Phillips Johnston's questions to Permian Resources Corp (PR) leadership • Q3 2024

    Question

    Phillips Johnston inquired about the drivers for the expected increase in GP&T costs in the second half of the year and the company's expected year-end PDP decline rate.

    Answer

    An unnamed executive explained the GP&T variance is due to the mix of wells coming online with different contract rates, with a minor upward pressure from the recently acquired Barilla Draw assets. Co-CEO William Hickey stated he does not expect the corporate decline rate to change significantly, remaining in the mid-to-high 30% range as organic growth offsets the lower decline of acquired assets.

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    Phillips Johnston's questions to Devon Energy Corp (DVN) leadership

    Phillips Johnston's questions to Devon Energy Corp (DVN) leadership • Q3 2024

    Question

    Phillips Johnston requested clarification on the shareholder return framework, asking what would happen in a higher oil price scenario: would the company boost buybacks to maintain its 70% free cash flow payout target, or would it stick to the guided buyback range and use excess cash to accelerate debt reduction?

    Answer

    Chief Financial Officer Jeff Ritenour explained that the company has the flexibility to do both. The near-term plan is a consistent fixed dividend and a $200-$300 million quarterly buyback, with excess cash potentially going to the balance sheet. However, in a sustained "above mid-cycle" price environment, he said they would reevaluate, potentially increasing buybacks or even reintroducing the variable dividend.

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    Phillips Johnston's questions to ConocoPhillips (COP) leadership

    Phillips Johnston's questions to ConocoPhillips (COP) leadership • Q3 2024

    Question

    Phillips Johnston followed up on the Alaska transactions, asking for the associated production volume and confirming that its impact is not included in the fourth-quarter guidance.

    Answer

    Kirk Johnson, SVP of Global Operations, clarified that the production associated with the transactions is marginal, at 'several thousand barrels a day.' He confirmed the deals are expected to close in Q4 but that this production has not yet been formally factored into the company's guidance.

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    Phillips Johnston's questions to Magnolia Oil & Gas Corp (MGY) leadership

    Phillips Johnston's questions to Magnolia Oil & Gas Corp (MGY) leadership • Q3 2024

    Question

    Phillips Johnston asked for directional guidance on where unit LOE (Lease Operating Expense) and GP&T (Gathering, Processing & Transportation) costs might trend in 2025 relative to the second half of 2024 exit rate. He also questioned if the $15 million in small Q3 deals included any significant production.

    Answer

    President and CEO Christopher Stavros stated that while they always aim for improvement, maintaining the current reduced LOE levels would be a fair expectation for 2025, with potential for modest gains. He noted this positions the company well against price volatility. Stavros also confirmed that the $15 million in Q3 acquisitions did not include any production of consequence, as they were primarily for incremental working and mineral interests.

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