Q3 2019 Earnings Call

From an operational update at this time all participants are in listen only mode. Please be advised todays conference call is being recorded if you're acquiring any further systems. Please press star zero.

I like to end the converts over to your speaker today, James at worst director of Investor Relations. Thank you. Please go ahead.

Thank you Jesse good morning, everyone and welcome Jagged peak Energy's third quarter 2019 earnings and operational update conference call.

Morning, Jim Kleckner, President and CEO will be providing a shorts that are prepared remarks.

In our press released last evening, we will not be hosting accuen et cetera call today, nor do we haven't investor presentation to accompany this call copy the release in our 10-Q can best be found on our website at Chesapeake energy Dotcom. During this call will make certain forward looking statements about the Companys financial condition results of operations plans objectives future performance.

Activities, we caution that are actual results could differ materially from these results on the results that are indicated in the forward looking statements due to Grady factors.

Information about these factors can be found the companys <unk> SEC filings, including a 2018 10-K in 2019 excuse.

Sure. It also includes certain non-GAAP financial measures such as adjusted EBITDAX and adjusted net income. We believe these non-GAAP measures provide harrison across periods activity. Other long gas operators reconciliation of the brokerage GAAP financial measures to the non-GAAP financial measures can be found in our earnings release.

I'll now turn the color Jim for his review work.

Thanks James.

Good morning, everyone and thank you for joining us for a review third quarter conference call.

Overall third quarter performance was strong as we continued to successfully execute on what to call somebody to play, particularly nobody to drive down Capex and she promotional truck.

All in 117 wells during the quarter on the high end of our expectations work our capital expenditures in the quarter came in lower metal as we continued to drive improved capital efficiency.

Third quarter DCT caused average lucky or 60.

Lateral foot down from 1200 50 in the second quarter, 7% below where 2000 Archie annual goal 1200 50 per lateral foot.

These efficiencies were driven by continued execution improvements and maybe the Walker house.

Production, we averaged 3000 barrels oil per day right at the midpoint of course third quarter guidance range.

We're pleased with the drilling and completion activities on our first two larger scale as Corey ever done because they came online on time on budget.

These first two larger Pathlogic, we were able to capture lessons learned that provides immediate benefit some of the adjacent subsequent wells dropping down per lateral foot project costs.

According to project how to do you see cost of approximately.

90 per lateral foot lower quarterly average can have a peak IP 30, 102 Girls War Dalton lateral foot.

I don't project had an average do seem you cost of approximately 420 per lateral foot.

These costs were somewhat higher than coriander project is wells had shorter somebody not I missed what levels compared 8500 foot laterals Coriander project.

I don't wells were just recently turned online that have yet to establish a T. P 30 right.

Well, we have limited data set.

Actual results from these two projects. The early results look encouraging look forward to seeing how they produce overtime.

In summary.

Very pleased with the progress we've made some for this year and look forward to additional by you've seen it personally shoot to combine set of assets coming years.

We believe that pro forma for sleep Jagged peak company provides Jack if youve shareholders Premier acreage in both Midland and Delaware basins.

Biting additional scale significant operational synergies and free cash flow in this competitive environment.

I'd like to thank both current and former membership, which I can speak to you for all the time to put together such a great absolutely years like to take on Investor base for their support two and a half years, new kind of public company.

That closing remark I will conclude the call.

This is safe conference you may now disconnect.