REPX(REPX)2024-11-09 18:11Financial Data and Key Metrics Changes - Third quarter 2024 operating cash flow was 60.5 million before changes in working capital, which increased by 5% quarter-over-quarter due to higher oil production volumes and lower total unit costs [22] - Net income decreased by 24% or 99 million, which is 2.7 times the same metric for the first nine months of 2023, corresponding to approximately a 21% yield on equity value [25][28] Business Line Data and Key Metrics Changes - Net production grew from 1.34 million to 1.42 million barrels of oil quarter-over-quarter, a 6% increase, while equivalent production rose 11% from 1.94 million to 2.16 million barrels of oil equivalent [16] - Lease operating expenses were 12 million [20] - The company aims for 10% year-over-year oil volume growth while cutting capital spending by 10%, with current guidance suggesting a 14% to 15% increase in full-year 2024 oil production over 2023 [29][30] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving growth despite macroeconomic volatility, with a focus on maintaining capital efficiency and operational excellence [36] - The company is hedged approximately 40% on total oil production for the next year, providing some cushion against price volatility [38] Other Important Information - The company paid down 300 million, with a debt-to-total enterprise value of 34% [27][28] - The company has returned $98 million to shareholders since 2021, with an annual dividend growth rate of 11% [6] Q&A Session Summary Question: Capital efficiency and upcoming D&C plan - Management indicated that the strategy for 2025 would likely remain similar, with potential adjustments based on oil price environments [36][38] Question: Power-focused joint venture - Management discussed the two phases of the power JV, with the first phase focused on powering operations and the second on selling power to ERCOT, highlighting progress in permitting and interconnection agreements [41][42] Question: Infrastructure investment details - Management elaborated on the infrastructure investment for the Red Lake asset, emphasizing the importance of a compressor station for reliable gas takeaway and future development [46][47] Question: Economic benefits of the compression system - Management confirmed that the new compression system would enhance operational reliability and potentially lower operating costs [49][50] Question: Impact of CO2 pilot discontinuation - Management clarified that discontinuing the CO2 pilot would not significantly impact operating costs, with some savings expected from avoided CO2 contract costs [54]