Release Date: March 04, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q: The midpoint of your full-year production guidance shows some nice growth. Is that all coming from restarting fields that were shut in and recompletions and workovers? I didn't see any mention of new drilling in the press release. A: Yes, you're correct. The growth doesn't include any new drilling, although we are considering asset acquisitions that may change our plans. We still expect to be drilling in 2026, but acquisitions might defer some drilling scheduled for late 2025.
Q: Can you provide an update on the drilling partnership you spoke about in 2024? A: We are continuing with the drilling program, starting with the Holy Grail at our Magnolia fields. We have another prospect lined up after that. However, potential acquisitions could alter our drilling plans as the market for acquisitions seems to be loosening.
Q: On the acquisition front, is your preference still to add immediate cash flow by acquiring producing properties rather than drilling new wells? A: Yes, substituting acquisitions for drilling is preferable as it reduces risk. We believe oil prices are stabilizing around $70, and gas has potential for price increases, which aligns with our recent hedges.
Q: How much progress did you make in 2024 on the refurbishment of the Cox assets, and how much is left for 2025? Can you provide some color around the range of $280 to $310 million for lease operating expenses in 2025? A: We made significant progress on refurbishment, but there is still work to be done in 2025 to bring platforms up to W&T standards. We expect most of this work to be completed in 2025.
Q: On the two West Delta and Main Pass fields scheduled to come online in the second quarter, do those facilities need much work, or have you already completed it? A: The Main Pass facilities were affected by the Cox bankruptcy, but work is mostly done, and we're waiting to bring them online. For West Delta, maintenance and work are mostly completed to get the field back online.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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