Q1 2020 Earnings Call
Yep.
Bye-bye. Julie. Are you still there?
Do you leave this is Kelly. I'm sorry, sir. Can you can you hear me? Yes, I can hear you.
Can you hear us Julie? Can you hear us?
Yeah, yeah, we know.
Julia this is Kelly. Can you hear us?
You were connected that Julia. This is Kelly. Are you there?
Julie are you on mute?
Or first quarter results in our remarks as you all know events in our nation and throughout the world remained very fluid due to the challenges brought into society by the covid-19 virus off. We we know many of you on today's call, especially in the larger cities in the Northeast have been affected by this in some way via your family friends or co-workers. Our thoughts are with, you know, we've all been impacted from an economic perspective because of this we've stressed the need for patience as the upcoming recovery unfolds for wpx. Our immediate game plan is pretty simple. We're protecting our people our liquidity in our balance sheet as we said here today, all three are quite strong.
Are cash and revenue-generating Power in the first quarter by completing a very well-received acquisition in March that boosted our base oil production by more than 35% We also had a portion of those volumes in the high fifties. We've now integrated those great assets following a successful Transitions. And I'd like to thank our field organization Our IT staff and Command Staff or cutting everything over onto our systems. We actually put a lot of boots-on-the-ground from all over the company to make it happen quickly and efficiently.
Those assets are going to be an important part of our story once Global supply and demand comes back into balance. Now. Let's turn to page three, you know in crunch time. You better have a great team that you can put on the field. This is ours. Our assets are proactive approach are enviable Financial strength and our talented Workforce when you're in the eye of the storm. It's too late to prepare for a rainy day and wpx wash and is prepared everything we've accomplished financially and operationally has positioned us for an attractive future obviously things are in are in flux as we adjust our approach on how we manage our Capital expenses and revenue generation, but we have a great deal of flexibility and optionality in hand write down part of this club from our Midstream marketing the transactional expertise that allows us to maximize our molecules while we sell them for where we sell them at how we get them there and the flow ashirwad
No doubt, there are near-term challenges. It's been sobering I've seen a great deal of my for decades in this industry, but nothing exactly like this. We're not alone. However, his birthday every sector has been impacted today. We'll discuss what we've done so far what we're doing next and provide some color on how we're thinking about the recovery and our future off while uncertainty remains front and center. Our team has responded appropriately. I'm pleased with the communication and continued execution. I see throughout the organization realize these cost reductions teamwork and advancing r r e s g agenda have been impressive to say the least that being said, we like many other companies are suspending of guidance for now until more normal times return the seriousness of the current situation is forcing producers to not only cut back on Capital spending but also to shut in, Georgia
We have to keep them moving. We've established a strong track record of staying one step ahead and you can count on us to continue that Legacy. We get quite a few questions about tactics and our plans about how we Market our products suffice to say, we're not going to get into the intricate details as this is obviously a distinct competitive advantage that being said one example of our strategies are 50/50 joint venture in the Permian Basin for gas processing and crude oil gathering at the end of the day this partnership and our expertise at a significant value to our Core Business of producing oil and natural gas when the market does turn back in our favor. We have Decades of inventory to develop and while we weather this storm, we're not offer any immediate pressure with debt maturities. Our next sizable one does not occur until 2023. We also have an experienced leadership here team here at wpx and
Existing production in all honesty there's an upside that will come from this. I believe a transition was already beginning to happen for many MP companies and what is referred to as shell 2.0 Turbo or she'll 3.0 depending on your perspective the events of the past few months will only accelerate this ultimate transition over time that will be incredibly beneficial to shareholders. The industry will look much different than it does today in a good way. Strong companies will get stronger in the sector will be healthier as a whole Turn the Page to one of the reasons our confidence remains strong in a time like this is because we've diligently worked to have the right capital structure and flexibility We Now find ourselves well position for the downturn were experiencing.
We finished 2019 at just over 1 and 1/2 x leverage and we have one of the straw.
obviously age books in the entire industry for twenty twenty approximately 90% of our oil revenues for the remainder of this year are protected at around $57 per barrel that gives us a utility to stay on track even with lower for