REPX(US:REPX)2024-03-07 18:16Financial Data and Key Metrics Changes - Overall net oil production increased by 49% year-over-year to 13.2 MBoe per day, and total net equivalent production rose by 62% year-over-year to 18.6 MBoe per day [5] - Cash flow increased by 22% for the full year, benefiting from new volumes from the 2023 New Mexico acquisition and organic growth [10] - Free cash flow increased by 26% year-over-year to $70 million, with 39% allocated to dividends, which increased by 9% year-over-year [10] - Shareholders' equity increased by $88 million or 26% year-over-year [10] Business Line Data and Key Metrics Changes - Proved reserves increased by 39% year-over-year to 108 million Boe, while proved developed producing reserves rose by 23% year-over-year to 60 million Boe [5] - Significant drilling efficiency improvements were noted, with the time from spud to total depth decreasing by 50% and drilled feet per day increasing by 58% [8] Market Data and Key Metrics Changes - The company anticipates a free cash flow growth of 50% or more if oil prices average $75 for the remainder of the year, potentially exceeding $100 million [12] - The company expects a flat year-over-year free cash flow if oil prices remain stable, with a reinvestment rate projected at 50% to 55% of operating cash flow [12] Company Strategy and Development Direction - The company is focused on driving profitable growth and investing in infrastructure, including gas takeaway and electrical upgrades, to enhance operations for 2024 and beyond [11] - The integration of the New Mexico acquisition has allowed the company to establish operating synergies and streamline operations [30] - The company is exploring opportunistic investments, including small acquisitions and the Power joint venture, to enhance returns [18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the future business, highlighting the ability to maintain dividends even at low oil prices [39] - The company is optimistic about its 2024 plan, with a capital program midpoint of over $120 million and plans to drill approximately 22 wells [32] - Management noted that the current hedge book is looking better than last year, which should positively impact cash flow [16] Other Important Information - The onsite power generation facility is expected to be fully operational by spring 2024, providing power to around 36% of operations in Yoakum County, Texas [28] - The company is committed to leveraging technology and best practices to enhance efficiencies further [30] Q&A Session Summary Question: Can you discuss the 2024 capital efficiency plan and the needed growth? - Management noted an advantaged opportunity with a plan to drill 22 wells and a reinvestment rate of just over 50%, leading to high free cash flow [37] Question: How do you evaluate acquisitions that could complement free cash flow capacity? - The company focuses on acquisitions with strong inventory and proximity to existing assets to optimize efficiencies [42] Question: What impact will the Power JV have on field operations and reliability? - Management indicated that while operating costs may not see a material improvement, the use of electric power could enhance reliability and efficiency [51] Question: What is the outlook for conventional versus unconventional assets in the market? - Management sees a trend towards conventional opportunities as companies digest their asset bases, with a focus on assets with significant undeveloped inventory [56]