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    Zachary Parham • JPMorgan Chase & Co.

    Zachary Parham's questions to Vital Energy Inc (VTLE) leadership

    Zachary Parham's questions to Vital Energy Inc (VTLE) leadership • Q1 2025

    Question

    Zachary Parham inquired about Vital Energy's hedging strategy, noting the recent additions for the second half of 2025 and the lack of 2026 hedges. He also asked about the production and CapEx trajectory into 2026, given the expected spending decline in late 2025.

    Answer

    CEO Mikell Pigott explained that hedges were added for the remainder of 2025 to lock in free cash flow and ensure debt reduction targets are met, aligning with peak Q4 production. He reiterated a general strategy to be ~75% hedged a year out. COO Katie Hill stated the 2026 plan is for flat year-over-year volume and capital, with significant flexibility and cost savings expected as service contracts roll off in late 2025 and early 2026.

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    Zachary Parham's questions to Vital Energy Inc (VTLE) leadership • Q4 2024

    Question

    Zachary Parham asked for more details on the 140 new inventory locations in deeper zones and inquired about the potential for acquiring more stranded acreage blocks using horseshoe lateral drilling techniques.

    Answer

    President and CEO Mikell Pigott directed attention to the presentation deck, highlighting successful tests in the Wolfcamp B and C formations where longer laterals enhance economics. He affirmed that the team is actively focused on acquiring 'white space' acreage adjacent to their current positions, citing the recent 8-mile project as a prime example of creating significant value by converting potential 5,000-foot wells into more economical 10,000-foot wells.

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    Zachary Parham's questions to Vital Energy Inc (VTLE) leadership • Q3 2024

    Question

    Zachary Parham asked about the cost profile of the new Barnett wells and how they compete for capital against established Delaware and Midland Basin wells. He also requested specifics on the Cave Bear pad, including its development strategy, well spacing, and the zones targeted.

    Answer

    CEO Mikell Pigott addressed the Barnett wells, stating it's too early to determine their final cost structure as the initial wells were drilled inefficiently for testing purposes. He highlighted the strong initial production of over 1,000 bbl/d and explained the next step is to test a smaller, cheaper frac design. COO Katie Hill clarified that the Cave Bear pad was a 10-well project developed across the A and B zones. While Vital's completion design was used, the wells were drilled by Point at a tighter spacing (5 wells per section) than Vital plans for future development.

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    Zachary Parham's questions to Permian Resources Corp (PR) leadership

    Zachary Parham's questions to Permian Resources Corp (PR) leadership • Q1 2025

    Question

    Zachary Parham asked about current trends in service costs given the drop in industry activity. He also inquired about the drivers behind the lower Q1 operating expenses and the outlook for the remainder of the year.

    Answer

    Hays Mabry, an executive, responded that service costs are beginning to move lower as some providers offer price concessions to maintain market share. He attributed the strong Q1 OpEx performance to production outperformance, which lowered per-unit costs due to the fixed-cost nature of lease operating expenses (LOE).

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    Zachary Parham's questions to Permian Resources Corp (PR) leadership • Q4 2024

    Question

    Zachary Parham of JPMorgan Chase & Co. asked for a breakdown of the recent D&C cost reductions, specifically the split between efficiency gains and service cost deflation. He also inquired about the long-term strategic role of the Midland Basin asset within the company's Delaware-focused portfolio.

    Answer

    Co-CEO William Hickey detailed that D&C cost reductions were driven approximately 55% by structural efficiency gains, particularly in drilling days, and 45% by deflation in materials and services. Executive Hays Mabry described the Midland asset as a valuable cash-flowing component that is not a primary focus but fits well in the portfolio, adding that the company remains open to optimization opportunities.

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    Zachary Parham's questions to Permian Resources Corp (PR) leadership • Q3 2024

    Question

    Zach Parham inquired about current trends in oilfield service costs and the outlook for cash taxes in 2025, including potential exposure to the Alternative Minimum Tax (AMT).

    Answer

    Co-CEO William Hickey noted that while some material costs like sand have seen deflation, major service costs remain sticky, and the company is focused on constructive partnerships. An unnamed executive stated that the 2024 cash tax reduction was due to Earthstone synergy optimization, and they do not expect to be subject to the AMT in 2025, anticipating continued meaningful tax deferrals.

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    Zachary Parham's questions to Civitas Resources Inc (CIVI) leadership

    Zachary Parham's questions to Civitas Resources Inc (CIVI) leadership • Q1 2025

    Question

    Zachary Parham questioned the trend for operating expenses (OpEx), noting that Q1 LOE was above expectations due to water issues in the Permian, and asked for clarity on how the company will meet its full-year cost guidance. He also asked for reconciliation between the company's confidence in its $300 million asset sale target and its statement about not being 'price takers' in a challenged market.

    Answer

    CEO M. Doyle explained that higher Q1 LOE was due to a contractor's inability to meet obligations, requiring supplemental capacity, but these costs are expected to be recovered. He expressed confidence in meeting full-year guidance as water volumes decline, overall production increases, and cost optimization initiatives take effect in the second half. Regarding asset sales, Mr. Doyle clarified that their confidence stems from pursuing the monetization of non-producing assets, such as surface acreage and infrastructure, which are less dependent on volatile upstream commodity prices.

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    Zachary Parham's questions to Civitas Resources Inc (CIVI) leadership • Q3 2024

    Question

    Zachary Parham inquired about the preference for share buybacks over variable dividends, asking if the current stock price ensures buybacks will remain the priority. He also asked for details on the 2025 level-loaded capital program and its impact on production and CapEx.

    Answer

    CFO Marianella Foschi confirmed that at current valuations, the company is 'pretty far from stock prices at which we do a variable dividend' and expects the Q4 variable return to be higher and allocated to buybacks. CEO M. Doyle explained that due to efficiency gains, the 2025 maintenance CapEx will be much closer to the 2024 level of $1.95 billion than previously anticipated, with a goal of holding volumes flat.

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    Zachary Parham's questions to Gulfport Energy Corp (GPOR) leadership

    Zachary Parham's questions to Gulfport Energy Corp (GPOR) leadership • Q1 2025

    Question

    Zachary Parham asked for details on the outperformance of the Kage pad versus the Lake pad, questioning if it was driven by geology, well design, or facilities. He also inquired about the early outlook for 2026, particularly regarding potential gas production growth following the H2 2025 shift to dry gas.

    Answer

    EVP and COO Matthew Rucker attributed the Kage pad's success to applying learnings from the Lake pad, specifically in rightsizing the frac design and upgrading facilities to handle higher flow rates. President and CEO John Reinhart added that while 2026 guidance is not yet available, the constructive macro outlook for natural gas supports a shift toward a more wet and dry gas-weighted program, with the H2 2025 activity serving as an early indicator.

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    Zachary Parham's questions to SM Energy Co (SM) leadership

    Zachary Parham's questions to SM Energy Co (SM) leadership • Q1 2025

    Question

    Zachary Parham asked about the 2026 operational plan, specifically if the rig count would increase from six, and whether a six-rig program could maintain flat production with lower year-over-year CapEx.

    Answer

    President and CEO Herb Vogel explained that 2026 plans are scenario-based and dependent on future commodity prices, with no fixed plan yet. He and CFO Wade Pursell confirmed that a six-rig program would result in lower overall costs and could maintain production in a 'flattish' range, depending on the mix of oil and gas assets drilled.

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    Zachary Parham's questions to SM Energy Co (SM) leadership • Q4 2024

    Question

    Zachary Parham sought more detail on the Uinta Basin transport delays, asking if they were a one-off issue, and inquired about potential non-operated spending, including the assets involved and the potential capital amount.

    Answer

    COO Beth McDonald stated that Q4 takeaway constraints were due to refinery downtime and rail delays, and the company is building future flexibility with more storage and railcar capacity. President and CEO Herbert Vogel clarified that potential non-op spending would be in the Permian Basin, is not yet confirmed, would be back-end weighted, and could be a higher amount than the $19 million spent in 2024.

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    Zachary Parham's questions to National Fuel Gas Co (NFG) leadership

    Zachary Parham's questions to National Fuel Gas Co (NFG) leadership • Q2 2025

    Question

    Zachary Parham of JPMorgan Chase & Co. inquired about National Fuel's share buyback strategy, asking how stock price influences the pace and if the completion target might be extended.

    Answer

    President and CEO David Bauer responded that while price is a factor, the company remains committed to its buyback program. He affirmed that after ensuring balance sheet strength, the primary capital allocation preference is organic growth or M&A, with returning capital to shareholders as the subsequent priority. The program may take slightly longer to complete, but the intention remains firm.

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    Zachary Parham's questions to CNX Resources Corp (CNX) leadership

    Zachary Parham's questions to CNX Resources Corp (CNX) leadership • Q1 2025

    Question

    Zachary Parham inquired about CNX's activity levels, specifically the timing for the remainder of the year's turn-in-lines (TILs), the expected production trajectory for the latter half of the year and into 2026, and the company's flexibility to add activity given gas price volatility.

    Answer

    Chief Financial Officer Alan Shepard explained that most completion activity was scheduled for the first half of the year, with more TILs in Q2, a lull in Q3, and additional TILs in Q4. He also stated that there are currently no planned changes to the activity set, as the company will monitor market conditions and storage levels through the shoulder season before making any decisions.

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    Zachary Parham's questions to CNX Resources Corp (CNX) leadership • Q4 2024

    Question

    Zachary Parham inquired about the run-rate spending required to maintain flat production levels given current efficiencies, and asked about alternative pathways beyond 45V for generating credits from the coal mine methane (CMM) business.

    Answer

    CFO Alan Shepard confirmed a target run-rate of sub-$500 million for maintenance capital, driven by Utica efficiencies and the low-decline base. Ravi Srivastava, President of New Technologies, highlighted that CMM has already validated premium pricing in manufacturing and power generation, and the company will continue to pursue opportunities in sectors like data centers.

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    Zachary Parham's questions to CNX Resources Corp (CNX) leadership • Q3 2024

    Question

    Zachary Parham inquired about the potential opportunity for the New Tech business, including incremental coal mine methane capture and CapEx, pending regulatory clarity on 45V and 45Q tax credits. He also asked about the company's share buyback strategy at the current higher stock price.

    Answer

    Ravi Srivastava, President of New Technologies Group, explained it is too premature to quantify the opportunity from 45V/45Q until regulations are finalized. CFO Alan Shepard added that the capital allocation process is unchanged by the stock price and that all capital return options, including buybacks, remain open due to balance sheet strength.

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    Zachary Parham's questions to Matador Resources Co (MTDR) leadership

    Zachary Parham's questions to Matador Resources Co (MTDR) leadership • Q1 2025

    Question

    Zachary Parham of JPMorgan Chase & Co. asked about Matador's long-term growth outlook, questioning whether the company would maintain current production levels or resume growth, given the updated guidance.

    Answer

    CEO Joseph Wm. Foran affirmed the company's intention to grow, stating the current slowdown is a temporary timing matter due to market conditions. He emphasized a strategy of 'profitable growth at a measured pace,' highlighting the company's strong balance sheet, debt repayment of $190 million, and 10-15 years of inventory. Van Singleton, President, added that the company not only replaced but grew reserves in Q1, preserving optionality for future profitable growth.

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    Zachary Parham's questions to Matador Resources Co (MTDR) leadership • Q4 2024

    Question

    Zachary Parham inquired about Matador's D&C cost guidance, which was lowered by 3% year-over-year to $880 per foot, asking for color on current leading-edge costs and the company's ability to drive them even lower.

    Answer

    Executive Christopher Calvert stated that the 2025 D&C cost guide being below the full-year 2024 actual cost already represents a leading-edge position. He attributed the savings to operational efficiencies, including optimizing simul-frac, increasing the use of trimul-frac from 14 to 16 wells, and securing strong vendor partnerships.

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    Zachary Parham's questions to Matador Resources Co (MTDR) leadership • Q3 2024

    Question

    Zachary Parham from JPMorgan Chase & Co. asked for more color on cash tax expectations for 2025 and beyond, following a reported tax refund and the company's expectation to not be subject to the Alternative Minimum Tax (AMT) in 2025.

    Answer

    Robert Macalik, EVP and CAO, expressed confidence in the reduced 2024 cash tax estimate and confirmed that avoiding the corporate AMT in 2025 is a significant win. He stated that the specific cash tax rate for 2025 will be dependent on the full operational and financial plan, with more details to be provided in February.

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    Zachary Parham's questions to Magnolia Oil & Gas Corp (MGY) leadership

    Zachary Parham's questions to Magnolia Oil & Gas Corp (MGY) leadership • Q4 2024

    Question

    Zachary Parham questioned the expected production trajectory for 2025, given that Q1 CapEx is projected to be the highest for the year, and also requested more detail on the appraisal work in the Karnes asset.

    Answer

    President and CEO Christopher Stavros projected that production would grow ratably throughout the year, potentially approaching 100 Mboe/d by year-end. Regarding Karnes, he explained the appraisal work is on a 25,000-acre, oily area from a small acquisition. While early results are encouraging, further study is needed before committing to full development.

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