Financial Data and Key Metrics Changes - Revenue for Q1 was $650.7 million, down 5% year over year and 2% sequentially, primarily due to known NEMT contract attrition, lower build hours in PCS, and membership churn in monitoring [20][21] - Net loss for the quarter was $50.4 million, up from $22.3 million a year ago, mainly due to higher interest expense which rose to $38.8 million [21] - Adjusted net loss was $24.5 million or negative $1.71 per share, reflecting the exclusion of restructuring-related costs and amortization of intangibles [21] - Adjusted EBITDA was $32.6 million, essentially flat year over year but down sequentially, with key drivers including an $8 million impact from net NEMT contract development [21][22] Business Line Data and Key Metrics Changes - In NEMT, revenue was $449 million, representing 69% of total revenue, declining 6% year over year due to previously disclosed contract losses [22] - Average monthly members in NEMT declined 19% year over year and 20% sequentially, while utilization from the normalization of healthcare increased to 12% [22] - PCS contributed $181.8 million in revenue or 28% of total revenue, with revenue per hour rising 1.1% while service hours declined 2.1% due to expected seasonality [24] - Monitoring contributed $18.1 million in revenue, representing just 3% of total revenue but 16% of total adjusted EBITDA, with adjusted EBITDA at $5.2 million for a 29% segment margin [25] Market Data and Key Metrics Changes - The broader opportunity in the 2026 pipeline exceeds $500 million in potential contract value, with the company securing two new Medicaid managed care contracts worth approximately $52 million [6][7] - Retention remains a key performance priority, with four strategic agreements signed in Personal Care expected to generate 90,000 monthly service hours [9] Company Strategy and Development Direction - The company is focused on five strategic objectives: growing core customer relationships, digitizing and automating the Care Access platform, optimizing the operating model, increasing capital efficiency, and delivering high-impact client-centric supportive care [4][5] - The long-term vision is to become the digital infrastructure for supportive care, unifying fragmented benefits and delivering a coordinated member experience [19] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in improving cash flow generation as contracts are restructured and working capital needs decrease [38] - The company is not issuing formal guidance for 2025 but is focused on executing measurable initiatives and communicating progress through clear KPIs [28] Other Important Information - The company launched a company-wide G&A reduction initiative targeting approximately $25 million in annualized savings [13][14] - The company is in the process of restructuring the organization to build a more tech-first model, adding talent in data, AI, and agile operations [12] Q&A Session Summary Question: Can you walk us through how we should be thinking about cash flow generation throughout the rest of the year? - Management indicated that EBITDA is driving cash flow and expects meaningful improvement in cash flow generation as the year progresses, particularly with contract restructuring [32][38] Question: Why did contract receivables increase despite overall revenue decline? - Management explained that the increase in accounts receivable was due to shared risk contracts that had not yet been converted, leading to a disconnect between revenue and receivables [39][40] Question: Is there a positive cash flow possibility in Q3? - Management confirmed that while Q2 and Q4 will see negative cash flows due to large debt payments, they feel good about cash flow generation for the rest of the year [51][53] Question: Can you elaborate on the G&A savings? - Management stated that the $25 million in G&A savings primarily comes from labor reductions in corporate and shared service areas due to increased operational efficiency [56][58]

Financial Data and Key Metrics Changes - The company reported a net income of $9.1 million or $0.05 per diluted share for Q1 2025, compared to $5.7 million or $0.03 per diluted share in Q4 2024 [19] - Adjusted EBITDA for Q1 2025 was $46.4 million, down from $50.9 million in Q4 2024, primarily due to lower oil revenue [20] - Revenue for Q1 2025 was $79.1 million, with oil accounting for 97% of total revenue, while total sales volumes were 18,392 BOE per day, exceeding guidance [17][14] Business Line Data and Key Metrics Changes - The company sold 12,074 barrels of oil per day, exceeding the high end of guidance despite weather-related downtime [9] - Seven wells were drilled, completed, and placed on production in Q1 2025, with production from these assets averaging over 2,500 BOE per day in April, representing a 9% increase over initial estimates [10][11] - The acquisition of LimeRock CVP assets added over 40 gross drilling locations to the existing inventory, enhancing production metrics [10] Market Data and Key Metrics Changes - The overall realized price increased by 4% to $47.78 per BOE in Q1 2025 from $46.14 per BOE in Q4 2024 [15] - The average crude oil differential from NYMEX WTI futures pricing improved to negative $0.89 per barrel in Q1 2025 from negative $1.42 per barrel in Q4 2024 [16] - The company anticipates a modest reduction in production during the last half of the year, guiding to approximately 2% annual production growth over 2024 [12] Company Strategy and Development Direction - The company emphasizes a value-focused strategy aimed at maximizing cash flow generation and maintaining production levels in low price environments [25][26] - Capital spending for 2025 is expected to be reduced by more than 47%, with a focus on debt reduction and maintaining financial flexibility [12][23] - The company is actively pursuing organic growth opportunities in the Central Basin Platform while remaining selective in acquisitions [61][62] Management's Comments on Operating Environment and Future Outlook - Management noted the high level of oil price volatility and emphasized the importance of maintaining a strong financial position to navigate these challenges [25][28] - The company plans to allocate more cash flow to debt reduction rather than increasing capital spending, even if oil prices recover [27][28] - Management expressed confidence in the production outperformance from new wells and the benefits of the LimeRock acquisition to support future growth [12][28] Other Important Information - The company ended the period with $460 million drawn on its credit facility, with a leverage ratio of 1.9 times [20] - The company has approximately 1.7 million barrels of oil hedged for the last nine months of 2025, providing downside protection at an average price of $64.44 [21] - The company is focusing on acquiring and leasing opportunities in the Central Basin Platform to expand its inventory life [75] Q&A Session Summary Question: Does the company have a leverage target in mind for debt reduction? - Management stated the long-term goal for the leverage ratio is to be comfortably below one, emphasizing the importance of reducing debt in a low price environment [30][32] Question: Will cost improvements affect the capital spending guidance? - Management confirmed that current capital spending forecasts include current prices, and any cost reductions would be directed towards debt repayment rather than increasing project numbers [34][38] Question: What is the state of activity in the Central Basin Platform? - Management noted a mix of interest in the Central Basin Platform, with some larger operators entering the market, while the company remains focused on acquiring undervalued assets [56][60]

Financial Data and Key Metrics Changes - The company generated $54 million of operating cash flow before working capital, converting it to $39 million of upstream free cash flow, with a capital expenditure (CapEx) of only 35% reinvested into upstream while keeping volumes mostly flat [21] - Debt was reduced by $21 million quarter over quarter, resulting in a leverage ratio of 0.9 times [21] - Average daily net production was 15,620 barrels of oil per day and 24,430 barrels of oil equivalent per day for Q1 2025, with a slight decline in net production from 1.46 million to 1.41 million barrels quarter over quarter, but a 19% increase compared to the same quarter last year [11][12] Business Line Data and Key Metrics Changes - The company completed 10 wells in Q1 2025, with five wells flowing back and beginning production in May, while the other five will come online in the second half of 2025 [11] - Operating costs were lowered, with lease operating expenses (LOE) per BOE for Q1 2025 at $8.34, a 2% reduction from Q4 2024 and an 8% reduction from the same quarter last year [12] Market Data and Key Metrics Changes - The company noted a 10% compression in many service costs compared to last year, despite potential tariff impacts [13] - The acquisition of Silverback Exploration is expected to enhance the company's long-term upstream development potential and increase its working interest in existing units [6][8] Company Strategy and Development Direction - The company is prioritizing the acquisition and preservation of high-quality inventory over the conversion of inventory to production, indicating a focus on long-term growth [8] - The strategic acquisition of Silverback Exploration for $142 million in cash is aimed at expanding the company's footprint in New Mexico and enhancing its operational capabilities [5][6] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's position to succeed in the current market environment, citing a strong asset base and disciplined capital allocation philosophy [8] - The company anticipates that favorable market conditions will return for bringing on new production, despite current market volatility [26] Other Important Information - The company achieved a total recordable incident rate of zero for Q1 2025, with 93% safe days, marking a record percentage of safe days in a quarter [9][10] - The company is exploring financing alternatives for midstream projects and may reaccelerate project spending based on market conditions [27] Q&A Session Summary Question: What do you think the motivation for the seller was regarding the Silverback acquisition? - The seller was a large private equity firm that often focuses on larger entities, and the asset may have been too small for them [33] Question: Does the larger contiguous acreage position change the scope of your midstream project? - The acquisition supports the decision to invest in infrastructure, and additional gathering and compression may be needed over time [39] Question: What impact could the Silverback assets have on Riley's borrowing base during redetermination? - The PDP value is estimated to be about half of the purchase price, and the company expects some incremental benefit to the borrowing base [46] Question: Can you discuss how you are thinking about hedging downside risk in the current market environment? - The company views hedging as a risk management tool and has laid in some swaps for 2026 to provide clearer cash flow streams [47] Question: Are there any significant permitting differences between power projects in New Mexico versus Texas? - The permitting process is manageable, with some additional costs for air permits in New Mexico [51]

Financial Data and Key Metrics Changes - Cotera Energy reported pre-hedge revenues of $2 billion, up from $1.4 billion in the previous quarter, with a significant increase in natural gas price realizations contributing to this growth [21] - The company generated net income of $516 million or $0.68 per share, and adjusted net income of $608 million or $0.80 per share [21] - Discretionary cash flow for the quarter was $1.135 billion, significantly up from $776 million in the prior quarter, while free cash flow was $663 million after cash capital expenditures [22] Business Line Data and Key Metrics Changes - Oil production was approximately 2% above the midpoint of guidance, while natural gas production exceeded the high end of guidance [20] - The company reported net turn-in lines of 37 in the Permian, below the guidance midpoint of 40, and zero in the Marcellus as expected [20] - The full-year production guidance remains unchanged despite a slight reduction in capital expenditures [18][24] Market Data and Key Metrics Changes - The company is experiencing a modest pullback in activity in the Permian Basin while incrementally adding activity in the Marcellus Shale, resulting in a projected $100 million reduction in 2025 CapEx [11][12] - Natural gas production is expected to average between 2.725 and 2.875 Bcf per day, delivering over 1 Tcf of gas on an annualized basis [27] Company Strategy and Development Direction - Cotera Energy emphasizes flexibility in capital allocation, describing its approach as a "guided missile" that can adapt to changing market conditions [13] - The company is committed to debt reduction, particularly focusing on a $1 billion term loan executed in conjunction with recent acquisitions [14][30] - The strategic focus includes optimizing investment allocation while lowering capital expenditure by $100 million for 2025, maintaining a strong balance sheet to navigate market volatility [24][30] Management's Comments on Operating Environment and Future Outlook - Management expressed concerns regarding the oil outlook but maintained a constructive view on natural gas, indicating a cautious approach to capital spending [11][62] - The company is prepared for potential market volatility and is optimistic about the long-term performance of its diverse asset portfolio [39] - Management highlighted the importance of maintaining a fortress balance sheet to protect shareholder returns and capitalize on market opportunities [30] Other Important Information - The company announced a quarterly dividend of $0.22 per share, maintaining one of the highest yielding base dividends in the industry at over 3.4% [29] - The Windom Row project included 73 total wells, with strong performance from Wolfcamp wells, while Harkey wells faced mechanical issues that are being addressed [14][15] Q&A Session Summary Question: Clarification on Harkey shale issues - Management confirmed that the issues were related to cementing and are considered temporary, with remediation steps underway [42][46] Question: Impact on future development plans - Management reassured that the three-year growth plan remains intact and does not foresee significant changes due to the current issues [45][46] Question: Production guidance and ramp-up expectations - Management indicated that the production guidance does not rely on the return of Harkey volumes, with expectations for substantial sequential production increases in the latter half of the year [78][79] Question: Prioritization between buybacks and debt reduction - Management emphasized that debt repayment will be the priority in 2025, while buybacks will be opportunistic and back-end weighted [64][65] Question: Update on Barbara Row development - Management confirmed that Harkey wells have been removed from the current frac schedule, with a focus on Wolfcamp completions [67][68] Question: Natural gas priorities and macro view - Management expressed optimism about the Marcellus program and its growth potential, supported by favorable market conditions [72][73]

Financial Performance & Capital Allocation - Diamondback generated $1,545 million of Free Cash Flow ("FCF") in Q1 2025 ($5.33/share) and $1,583 million of Adjusted FCF ($5.47 / share)[18] - The company expects to generate at least $4.7 billion of Adjusted FCF in 2025 at current commodity prices[18] - Diamondback returned $864 million to stockholders in Q1 2025, representing ~55% of Q1 2025 Adjusted FCF, through base dividend and share repurchases[15, 18] - The company has a $6.0 billion share buyback authorization in effect, with ~$1.8 billion remaining[18] - Diamondback is committed to returning at least 50% of quarterly FCF to stockholders[18] Production & Operations - Q1 2025 oil production was 475.9 Mbo/d (850.7 Mboe/d)[25] - The company's unhedged realized cash margin was 77% in Q1 2025[25] - Total operating cash expenses were $10.48 per Boe in Q1 2025[25] - The company's oil production per $MM of CAPEX was 45.5 (Mbo / $MM CAPEX) in Q1 2025[25] 2025 Guidance - Full year 2025 oil production guidance is 480 – 495 Mbo/d (857 – 900 Mboe/d)[58] - Full year 2025 CAPEX budget is $3.4 – $3.8 billion[58]

Financial Data and Key Metrics Changes - The company reported a capital expenditure (CapEx) reduction of $100 million, representing a 7% decrease, while still achieving a 17% year-over-year increase in production [9][10] - The company reduced its debt by $190 million, bringing the total debt to approximately $400 million, with a projected free cash flow of 1.5 to 2 times that debt this year [26][27] Business Line Data and Key Metrics Changes - The company is prioritizing capital efficiency, with a focus on high grading operational equipment and drilling efficiencies, which is expected to maintain a 17% year-over-year growth in barrels of oil equivalent (BOE) per day [11][12] - The midstream business is projected to have an unrealized value of approximately $1.5 billion that is not reflected in the stock price, with plans for an initial public offering and other strategic transactions [13][14] Market Data and Key Metrics Changes - The company has identified a potential gas bank in the Haynesville and Cotton Valley formations, estimating between 200 to 300 billion cubic feet (Bcf) of gas potential that can be accessed when prices stabilize [33][34] Company Strategy and Development Direction - The company is focused on a balanced approach, maintaining a strong balance sheet while exploring opportunities for share buybacks, acquisitions, and increasing dividends, which have been raised six times in four years [25][26] - The company is committed to a "brick by brick" acquisition strategy, closing deals weekly and maintaining a pipeline of opportunities [21][29] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's growth trajectory, projecting a 17% increase in reserves while managing costs effectively [30][31] - The company is hedging production to protect against price volatility, while also preparing for potential opportunities if commodity prices rise [27][28] Other Important Information - The company has initiated a share repurchase program, buying back 250,000 shares at approximately $41.5 each, with plans to continue as long as the buying opportunity exists [5][6] - The annual shareholders meeting is scheduled for June 12, providing an opportunity for shareholders to engage directly with the management team [7] Q&A Session Summary Question: What adjustments are being made to activity levels? - The company is reducing CapEx by 7% while still achieving a 17% year-over-year growth in production, indicating a more capital-efficient program [9][10] Question: What is the outlook for the midstream business? - The midstream business is expected to have significant unrealized value, with plans for strategic transactions to help shareholders realize this value [13][14] Question: Can you explain the gas bank concept? - The gas bank refers to the potential in the Haynesville and Cotton Valley formations, with significant gas reserves that can be accessed when market conditions are favorable [33][34]

Group 1: Stock Performance - ConocoPhillips (COP) shares fell 10.23% to close at $95.25, nearing a 52-week low of $86.81, with trading volume at 13,869,000 shares, significantly higher than previous days [1] Group 2: Acquisition and Upstream Presence - The acquisition of Marathon Oil has strengthened COP's upstream presence in the Lower 48, enhancing scale, production capacity, and operational efficiencies [3] Group 3: Reserve Replacement and Capital Efficiency - COP achieved a reserve replacement rate of 244% last year, with an organic reserve replacement of 123%, indicating strong performance in discoveries and drilling [5] - The company focuses capital projects in key regions like Permian, Eagle Ford, and Bakken, which have short payback periods and high margins [7] Group 4: Dividend Yield and Shareholder Returns - COP offers a dividend yield of 3.28%, higher than the industry composite yield of 2.4%, and comparable to EOG's 3.25% but lower than Chevron's 4.4% [8] Group 5: Valuation Metrics - COP is considered relatively undervalued, trading at a trailing 12-month EV/EBITDA of 5.19x, below the industry average of 11.24x and lower than CVX and EOG [11] Group 6: Market Context and Recommendations - Despite the stock price decline, it is suggested not to sell COP shares immediately, as the company is currently undervalued and should be monitored until uncertainties subside [13][14]

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 ...