Financial Data and Key Metrics Changes - In 2024, the company achieved a 15% increase in oil production and a 22% increase in total production, while upstream cash capital expenditures declined by 27% [6][14][25] - The company reduced debt by $90 million year-over-year, achieving a leverage ratio of one times at year-end [25][30] - The average daily net production for Q4 2024 was 15.91 thousand barrels of oil per day and 25.03 thousand barrels of oil equivalent per day [14] Business Line Data and Key Metrics Changes - The company drilled 30 wells, completed 20, and turned in line 22 gross operated wells in 2024 [11] - The cost per foot for drilling decreased by 11% year-over-year, with an average of approximately $520 per foot in Q4 2024 [12][56] - The company maintained low operating costs, with lease operating expenses per BOE for 2024 at $8.66, roughly flat compared to 2023 [17] Market Data and Key Metrics Changes - The company captured and sold more produced gas in Texas, resulting in a lower percentage of oil in the overall production mix [15] - The company is focusing on developing its New Mexico assets, which are expected to provide significant long-term growth potential [7][46] Company Strategy and Development Direction - The company plans to shift more development activity to New Mexico in 2025, with a focus on midstream projects to enhance operational control [7][8] - The strategic development includes a 15-year gas purchase agreement and a high-pressure natural gas pipeline capable of transporting up to 150 million cubic feet per day [8] - The company aims to build complementary assets across upstream, midstream, and power sectors to create multiple revenue opportunities [33] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the capital efficiency of the asset base and the ability to generate positive free cash flow [26][30] - The 2025 plan includes a total production growth range of 9% to 14%, with oil production growth of 5% to 8% [26] - Management highlighted the importance of maintaining balance sheet flexibility and access to capital markets for future opportunities [10][30] Other Important Information - The company achieved a total recordable incident rate of zero for 2024, demonstrating excellence in operational safety [11] - The company is expanding its power joint venture to reduce reliance on the grid and capitalize on market fundamentals within the Texas power grid [9] Q&A Session Summary Question: Can you provide updates on the ERCOT project and potential upside? - Management confirmed that the ERCOT project is progressing well, with construction expected to start soon and potential for additional projects being explored [41][70] Question: What are the benefits of the New Mexico Gas Midstream project? - Management explained that building the midstream project allows for better control over gas transportation and processing, addressing the regional lack of takeaway capacity [51][52] Question: How did D&C costs progress throughout 2024? - Management noted a continued improvement in D&C costs, with a decrease of 11% year-over-year, and plans to maintain this trend in 2025 [56][57] Question: What is the status of the ERCOT deals? - Management indicated that they are deep into Phase 2 of the ERCOT project and are exploring various opportunities, with updates expected in the near future [70][72] Question: Are there concerns regarding service availability or cost pressures? - Management stated that service availability is good, with slight improvements in drilling costs, and they are modeling a slight increase in well costs for 2025 [76][77]

Financial Data and Key Metrics Changes - The company reported quarterly earnings of $572 million, with record quarterly adjusted EBITDA of $1.254 billion, and record quarterly adjusted cash flow from operating activities of $922 million or $1.59 per share [6][7] - For the full year 2024, earnings reached $1.874 billion, with record annual adjusted EBITDA of $4.408 billion, a 15% increase from 2023, and record full year adjusted cash flow from operating activities of $3.265 billion or $5.70 per share [7][22] - The fourth quarter adjusted EBITDA increased by 21% compared to the same period in the prior year [19] Business Line Data and Key Metrics Changes - In the pipelines segment, higher contributions were noted from Alliance due to increased ownership and higher demand for seasonal contracts, while lower net revenue was observed on the Cochin pipeline due to lower firm tolls [20] - Facilities saw an increase in contributions from PGI due to higher revenue associated with oil batteries acquired in Q4 2024 [20] - The marketing and new ventures segment reflected higher net revenue from contracts with customers due to increased ownership interest in Aux Sable and higher NGL margins [20] Market Data and Key Metrics Changes - Total volumes were 3.67 million barrels per day in Q4, representing a 6% increase over the same period in the prior year [22] - The company executed contracts for approximately 170,000 BOE per day of pipeline transportation, primarily on Alliance and Peace Pipeline [9] Company Strategy and Development Direction - The company aims to strengthen its existing franchise, increase exposure to lighter hydrocarbons, and access global market pricing for Canadian energy products [8] - Pembina is focusing on capital-efficient projects, including the Cedar LNG project and the Phase VIII Peace Pipeline expansion, to accommodate growing production in the Western Canadian Sedimentary Basin [10][11] - The company is also exploring opportunities in the data center industry through the Greenlight Electricity Centre project [12][13] Management's Comments on Operating Environment and Future Outlook - Management expressed excitement about the growth opportunities in the Western Canadian Sedimentary Basin and the company's strategic positioning to benefit from this growth [24] - The company anticipates continued momentum into early 2025, reflecting a strong position in the Canadian energy industry [17] Other Important Information - The company announced a 3.4% increase in the common share dividend, reflecting strong financial results [22] - The ratio of proportionally consolidated debt-to-adjusted EBITDA was 3.5 times, indicating a strong balance sheet and a BBB credit rating [23] Q&A Session Summary Question: What kind of commercial and growth opportunities might the rights to the NGLs off the Yellowhead mainline project create? - The company estimates it could build approximately 500 million cubic feet per day of extraction capacity, resulting in about 25,000 barrels of NGL extraction [29] Question: Can you talk about the potential capital requirement for the NGLs off the Yellowhead mainline? - The estimated cost for an asset of this size is in the range of $400 million to $500 million [49] Question: How is the company progressing in contracting capacity for Cedar LNG? - The company has received positive responses from a broad range of customers and is working through the contracting process [54] Question: What is the expected return profile for the Greenlight project? - The returns are expected to be consistent with midstream infrastructure returns, with ongoing negotiations for long-term contracts [66] Question: How is the company addressing the ongoing rate case situation with shippers on the Alliance pipeline? - The company is actively engaging with shippers to reach a negotiated settlement and is evaluating expansion opportunities based on shipper demand [41][72] Question: How does the company view the appetite for risk and purchase returns in the current market? - The company continues to evaluate opportunities across its value chain, focusing on creative solutions and maintaining a strong track record in capital execution [111]

Chord Energy Corporation (NASDAQ:CHRD) Q4 2024 Earnings Conference Call February 26, 2025 11:00 AM ET Company Participants Bob Bakanauskas - Vice President of Investor Relations Daniel Brown - President and Chief Executive Officer Darrin Henke - Executive Vice President and Chief Operating Officer Richard Robuck - Executive Vice President and Chief Financial Officer Michael Lou - Executive Vice President, Chief Strategy Officer and Chief Commercial Officer Conference Call Participants Scott Hanold - RBC Cap ...

Financial Data and Key Metrics Changes - For Q4 2024, net cash provided by operating activities before changes in working capital totaled approximately $185 million, more than triple the capital expenditures for the quarter [23] - Adjusted EBITDA for the quarter was reported at $203 million, with adjusted free cash flow of $125 million, marking the best quarter of 2024 from a free cash flow perspective [24] - Cash operating costs for Q4 totaled $1.19 per million cubic feet equivalent, better than analyst expectations and within the full year 2024 guidance range [25] Business Line Data and Key Metrics Changes - The company drilled 21 gross wells in 2024, primarily focused in the Utica, and completed 19 gross wells, including three SCOOP wells and twelve Utica dry gas wells [16] - The 2025 development program is expected to maintain flat total production while growing liquids production by 30% year over year [9][13] - The company anticipates total equivalent production to be relatively flat compared to full year 2024, with an increasing production profile as the year progresses [14] Market Data and Key Metrics Changes - The all-in realized price for Q4 was $3.36 per Mcfe, a $0.57 premium to NYMEX Henry Hub index prices, driven by a differentiated hedge position and diverse marketing portfolio [28] - The company has downside protection covering roughly 50% of 2025 natural gas production at an average floor price of $3.62 per MMBtu [29] Company Strategy and Development Direction - The 2025 development program reflects significant efficiency gains and capital allocation optimizations, allowing for a focus on liquids-rich production while maintaining a low decline production base [9][12] - The company plans to return substantially all 2025 adjusted free cash flow, excluding discretionary acreage acquisitions, through common stock repurchases [10][32] - The company is focused on operational improvements and optimizing asset development to maximize free cash flow generation and value for investors [22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to generate significant free cash flow in 2025, potentially more than double compared to 2024, driven by rising natural gas prices and operational efficiencies [31] - The company remains constructive on gas prices in 2025 and 2026, with a strategic hedge position allowing for participation in prices above $4.00 per MMBtu [29] Other Important Information - The company repurchased approximately 7% of its common shares outstanding in 2024, returning 96% of available adjusted free cash flow to shareholders [15] - The proved reserve base increased by approximately 6% when excluding the impact of pricing revisions, reflecting high-quality inventory additions and operational improvements [33][34] Q&A Session Summary Question: Liquids volume sustainability and bolt-on opportunities - Management confirmed that the 30% liquids growth is sustainable and that they have flexibility to allocate towards liquids or gas depending on market conditions [41][43] - The company prefers sizable undeveloped assets for bolt-on opportunities rather than PDP-heavy assets [45][46] Question: Capital efficiency and future capital allocation - Management indicated that front-loaded capital programs are conducive to driving capital efficiencies and that this approach is expected to continue [54] - The company continuously assesses free cash flow allocation options, balancing share repurchases and inventory additions [58][60] Question: Development strategy and inventory allocation - Management clarified that the Marcellus development will be paced responsibly, with a focus on corporate inventory life rather than specific area allocations [72][74] Question: Production cadence and capital efficiency - Management noted that production is expected to increase throughout the year, with a focus on optimizing the timing of well turn-ins [82][84] - Continuous improvement in operational efficiency is anticipated, although future gains may be more moderate compared to past improvements [86] Question: NGL realizations and market conditions - Management highlighted strong NGL realizations due to favorable contracts and market conditions, particularly in Appalachia [97][98]

Devon Energy (DVN) Q4 2024 Earnings Call February 19, 2025 11:00 AM ET Company Participants Rosy Zuklic - VP - Investor RelationsRick Muncrief - President and CEOClay Gaspar - EVP & COOJeff Ritenour - EVP & CFOScott Hanold - Managing Director - Energy ResearchNeal Dingmann - Managing Director - Energy ResearchNeil Mehta - Head of Americas Natural Resources Equity ResearchArun Jayaram - Vice PresidentKevin MacCurdy - Managing DirectorJohn Freeman - Managing DirectorMatthew Portillo - Partner & Head of Resear ...

Financial Data and Key Metrics Changes - The corporate breakeven price has decreased from $40 per barrel to $37 per barrel, indicating improved cost efficiency [13][10] - The company is focused on free cash flow generation, with expectations of maintaining a high free cash flow margin [10][11] Business Line Data and Key Metrics Changes - The integration of Endeavor assets is expected to enhance free cash flow generation and lower the reinvestment rate [10][12] - The company has successfully integrated operational efficiencies from both Diamondback and Endeavor, leading to improved production metrics [30][31] Market Data and Key Metrics Changes - The company is cautious about the macroeconomic environment, anticipating a potential oversupply in 2025, which influences its growth strategy [55][46] - The company has significant pipeline capacity, with about $250 million a day of space on existing pipelines, which is expected to help improve gas pricing [87][88] Company Strategy and Development Direction - The company is prioritizing shareholder returns and free cash flow generation over aggressive growth, reflecting a conservative approach in a potentially oversupplied market [55][56] - There is a focus on leveraging surface acreage and water resources to create new revenue streams, particularly in the context of rising power prices in Texas [67][68] Management's Comments on Operating Environment and Future Outlook - Management expressed a cautious view for 2025, emphasizing the need for flexibility in capital allocation and operational adjustments based on market conditions [55][46] - The company aims to maintain a balance between capital expenditures and free cash flow generation, with a target of reducing net debt to $10 billion [115][116] Other Important Information - The company is exploring opportunities in data centers and power generation to enhance the value of its natural gas assets [23][68] - The integration of best practices from both companies is expected to yield long-term operational efficiencies and cost savings [111][112] Q&A Session Summary Question: What is the expected free cash flow per barrel next year? - The company expects to maintain a high free cash flow margin, with a focus on capital efficiency and lower breakeven costs [10][11] Question: Can you elaborate on the TRP asset trade valuation? - The valuation was based on the quality of the assets, with a focus on moving lower quartile inventory to higher quartile inventory [15][18] Question: How does the company plan to manage capital expenditures in 2025? - The company is targeting a budget of $4.1 to $4.4 billion for 2025, with flexibility to adjust based on market conditions [35][36] Question: What are the plans for monetizing smaller assets? - The company is actively pursuing monetization of smaller assets, with a focus on maximizing shareholder value [41][42] Question: How will the company approach share buybacks versus dividends? - The company maintains a flexible capital allocation strategy, balancing between share buybacks and dividends based on market conditions [60][61] Question: What operational changes have been implemented post-merger? - The company has adopted clear fluid drilling and simulfrac techniques across its operations, leading to improved efficiency [78][79] Question: How does the company plan to improve realized gas prices? - The company is focusing on leveraging its pipeline capacity and diversifying its gas marketing strategies to enhance pricing [86][88]