Release Date: May 06, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q: Can you clarify the impact of the Harkey shale issue on your future development plans and inventory depth? A: Thomas Jorden, CEO, explained that the Harkey issue is a local mechanical problem, not a strategic or inventory issue. The company is optimistic about resolving it with revised pipe design and cementing programs. The 3-year plan remains intact, and they do not foresee any long-term impact on inventory.
Q: How does the change in activity affect your 3-year plan for oil growth? A: The 3-year plan is unchanged, with expectations of 5% oil volume growth. The current adjustments are temporary, and the company remains committed to its long-term growth strategy.
Q: What is your outlook on the current weak oil environment and its duration? A: Jorden noted the volatility introduced by the new administration and global factors. The company is prepared for the weak environment to persist and is adjusting its capital allocation accordingly, with a focus on flexibility and resilience.
Q: How do you prioritize between buybacks and debt reduction if commodity prices weaken? A: CFO Shannon Young emphasized that debt repayment is the priority for 2025 to maintain low leverage, which enables shareholder returns. Buybacks will be opportunistic and back-end weighted.
Q: What are your plans for the Marcellus given the current natural gas outlook? A: Jorden highlighted the company's efficient redesign of the Marcellus program, which supports a growth profile. The company is encouraged by the economic and reservoir performance of its natural gas assets and plans to continue investing in the Marcellus.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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