Q4 2020 Bonanza Creek Energy Inc Earnings Call
Ladies and gentlemen, please standby your Q4 2020 of Bonanza Creek Energy, Inc. And your earnings Conference call will begin momentarily. Thank you for your patience and please standby.
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Ladies and gentlemen, and thank you for standing by and welcome to the Q4 2020 Bonanza Creek Energy, Inc. Earnings Conference call. At this time, all participants are in a listen only mode. After the speaker presentation and there'll be a question and answer session basket question. During the session you'll need the press star one on your telephone please be advised that today's conference is being recorded.
So you acquire and further assistance. Please press star Zero and I would now like turn the conference over to your Speaker today Scott Landreth. Please go ahead Sir.
Thanks, Jeff Good morning, everyone and welcome to the Bonanza Creek fourth quarter of 2020 earnings conference call and webcast.
On the call. This morning, and I am joined by Eric Gregor President and CEO Brandon here.
Executive Vice President and Chief Financial Officer, and other members of the senior management team yesterday.
Yesterday, we issued our earnings press release posted a new investor presentation and filed our 10-K with the SEC all of which can be found on the Investor Relations section of our website.
Some of the slides and the current investor presentation, maybe referenced during our remarks this morning.
Please be aware that our remarks will include forward looking statements that are subject to many risks and uncertainties that could cause actual results to differ materially from these statements you should read our full disclosures regarding forward looking statements contained in our 10-K and other SEC filings.
Also during this call we will refer to certain non-GAAP financial measures because we believe there are good metrics to use and evaluate the performance reconciliations of these measures to the most directly comparable GAAP measures are contained in our earnings release and Investor presentation.
We will start the call with prepared remarks, and then move to Q&A as with previous earnings calls, we will take questions from those on the sell side analysts community on today's call I ask that investors and others with the questions. Please reach out to me directly the schedule and call you can find my contact information on the Investor Relations section of our web site or within.
Yesterday's release, now I would like to turn the call over to Eric Eric Gregor Eric.
Thanks, Scott Good morning, everyone and thank you for joining us this morning.
Despite the challenges Bonanza Creek had a very successful 2020, and the team delivered safe and consistent operational performance stretching base production lowering our cost structure and improving our occupational safety and health rates.
The year concluded with the announcement of a transformative acquisition of Highpoint resources.
The combination of Bonanza Creek and high point is expected to provide significantly more scale and the rural D. J, enabling us to continue expanding our margins delivering synergy value and generating significant and resilient free cash flow.
I'll have more to say on this transaction before opening the line for Q&A, but first I want to summarize a few of the other highlights from 2020.
And early March when faced with the dramatic decline in commodity prices, we quickly flex down our pace of development to maintain financial strength.
These actions enabled us to generate over $100 million of free cash flow and 2020, and and the year with no debt and $25 million of cash on the balance sheet.
Despite a 70% reduction and capital investment 2020 production exceeded our March expectations, while we forecasted was and average annualized rate of approximately equal of 2019, while we delivered was an 8% improvement over 2019 and a substantial beat of our original guidance.
And early January of 2021, we started our DUC stimulations, and we're expecting to turn new wells to sales and late March.
More recently, the Arctic weather impacting much of the nation also created freeze offs and our operations.
And our release yesterday, we reduced our total production guidance to a range of 20 to 23 <unk> a day for <unk> 'twenty one.
But our oil volumes were less impacted which youll notice and the improved oil mix guidance.
This remains of cost and margin business and in 2020 of the BCA team drove the unit allo and recurring cash G&A expenses to levels that had not been reached and our company's history.
We're excited to work with the high point team to apply the best of both companies on the combined base of assets.
Briefly I would like to address one item on the financial statements relating to the $61 million deferred income tax benefit on our balance sheet as of year and.
Sandy and Brant can provide more color during Q&A, if there's interest but in summary. This is due to the company being on a sustained net income position for the foreseeable future. According to tests performed during our year end on it.
As a result of this income we will now be able to take advantage of our deferred tax assets that were previously offset by evaluation allowance.
And the removal of the valuation of allowance at year end results and a tax benefit on our income statement.
More exciting and taxes, we continue to make steady progress toward closing our acquisition of high point.
Last week, we announced key milestones and scheduled on March 12th shareholder meeting to approve the transaction.
We refer everyone to our February 10th joint proxy statement and prospectus on.
All of which are available on our website as the best and most comprehensive sources of information regarding the high point transaction with that I will turn the call to the operator for Q&A.
Sure.
Thank you as a reminder to ask a question you will need the press star one on your telephone to ensure all of your question request the balance sheet, please standby and compile the Q&A roster.
Yeah.
Our first question comes from Leo Mariani of Keybanc. You May proceed with your question.
Hey, guys just wanted to touch on.
A little bit on on kind of how youre thinking about 2021, I know you've got the the first quarter guidance out there and clearly you're waiting on that and the timing of the high point deal and just kind of give us a little bit more on your open.
And update but from a high level, we've clearly seen great strength and commodity prices are in the start the year price and is arguably a lot better than the most people sort of spot here.
Obviously, you guys Didnt really have any activity and the second half of 'twenty, you've kind of started to the Frac wells, I guess, where I'm on getting ads and trying to get a sense of.
And when do you think you might be able to get a rig back out there you're still thinking second half 'twenty one might of rig.
And earlier just based on the the robust commodity prices, we're looking at here.
And I might you consider a little bit more activity and you don't want to be kind of cool.
Flattish year over year of pro forma or could there be a little bit of growth, given how well commodities and that.
Thanks Leo.
I think that's of Great question, and we've certainly given it some thought I think.
We are still planning for <unk>.
Standard up a rig in the second half I think and it'd be safe to call that kind of mid Q3.
And it takes it will take us a little bit of time. The good news is we've got we've got a lot of docs will have a steady diet of docs to stimulate between now and that time.
And and that obviously, that's duck stimulation program is independent of the drilling operation. So we start to replenish those docs when we pick up the rig.
The idea is still to operate.
Or at least contemplate operating one level loaded rig of crossed the combined assets.
And we.
We talked about flat to slightly declining when we announced the deal I think given the relatively significant.
<unk>.
Recovery and commodity prices, both on the natural gas side and the crude oil side.
Probably fair to use the term you use which is flattish.
And and and try to maintain kind of flat stable production over time as opposed to allowing it to decline, but you know rather than front run that too significantly.
That's going to be driven by returns and well have a new board in place after closing.
So.
And those sensitivities on returns will be discussed with the board.
But I think it's I'm confident to say flattish is a good is a good way to go and picking up of rig early in the second half of the year and and kind of think mid Q3 makes a lot of sense to us.
Okay. That's helpful.
And obviously, we're getting kind of closer to the point, where you guys really of what we're going to close the the HCR deal, which is obviously a big milestone from guys and roughly doubles the size of the company.
Looking forward I imagine there may be some other opportunities out there on the DJ you think 50000 viewing per day roughly speaking.
Is the right scale or would you have ambitions to continue to potentially do other deals and become a little bigger company and the next couple of years.
While our posture is to remain engaged and the conversation on a on the M&A front, whether that's asset acquisitions or kind.
Kind of corporate level.
And it all depends on valuation you know it requires obviously the the high point deal was a.
Value accretive deal for our shareholders on just about any per share metric you'd like to look at.
But I think there's still value Leo and and gaining scale and those.
You have more and more opportunities to diversify.
The risks whether those are.
Asset risks reservoir risk takeaway risks or other kinds of risks and the business and scale, obviously not only gives us economies.
But also gives us the opportunity to mitigate risk across the portfolio. So we we won't be satisfied necessarily at 50, because it's 50 and we certainly appreciate that 50 is is is twice 25, and that's a great improvement and scale, we will continue to look for value accretive opportunities.
Two to continue to.
And to continue to grow the business.
It's got to make sense, there's gotta be of fair exchange of value and we'll be looking for those.
Okay, that's great color and just lastly from me and it's maybe a tricky question, but obviously he came out and redacted the guide a little bit for the first quarter for the extreme weather events.
And are there was pretty much cleared up on your asset at this point do you think the the weather's past and kind of everything back up and running and you have a pretty wide range on the first quarter. So just trying to get the chance you could think everything's baked in or is there just kind of a lot of guesswork involved because you still got a bunch of wells downloads and kind of tell us about first quarter.
Now, we feel pretty good Leo that the 'twenty to 'twenty three M. B O E. A day for Q1 captures.
The range of outcomes and.
And and where we are definitely on the man I mean weather is still tough it's still cold, it's still below zero and.
Some challenges and the field, but we're well on the mend and we feel confident that it's captured in the range.
Okay, great. Thanks, guys. Thank you Leah ex Lille.
Thank you. Our next question comes from Neal Dingmann with true Securities from the proceed with your question.
Good morning, all.
And my question is just looking at the obviously the massive footprint you have on slide 12.
So if you can comment sort of post high point, yet and maybe too premature on that but I'm. Just my question is really on well cadence.
And when looking at that acreage if you could just give us a little color on how you maybe for the remainder of this year and into next year, how youre thinking about that and I don't know if you can as I mentioned with or if you want to just keep it without high point at this point.
No I think the best way to talk about it is as of pro forma of enterprise you know over 200000 net acres as you indicated Neil on slide 12.
We will continue with the DUC stimulation work and putting those to sales.
And that should be in the range of.
40 to 45 docks of all of you know all throughout the year, but our DUC stimulation program on the Standalone Bonanza side for Q1 is.
And is weighted to the first half of the year and then we start blending in a high points after close.
And in terms of cadence or pace of development you know those turn ons are going to start in March.
And there'll be a pretty steady diet of of turn in lines through the second quarter.
Of those wells that were stimulated by Bonanza stand alone and Q1, and then as we start to blend in the high point DUC inventory as you move into Q2 and Q3.
Turning those in line and as we pick up the rig and we start replenishing the DUC inventory.
The idea of essentially Neil is to two <unk>.
Solve for something that feels like Notionally about of flat production profile there'll be some there'll be some wildly and us on a quarter to quarter basis, just based on variability of turn in lines and so on but generally speaking we want to maintain flat stable production profile over time, and and that's a slight a slight correction to the.
The flat to slightly declining, which we rolled out and in November.
But that's obviously based on higher returns and our returns orientation.
Given the rally and both natural gas and crude oil pricing.
On a one rig operated pace of development. If you think about over time that one rig kind of one frac crew operated pace of development will turn on a mix of ex Rls and S. R LS and about 50 per year. So notionally.
And we'll be able to drill off inventory and per.
Permit inventory and location inventory across the acreage.
Out of pace of about 50 wells per year, and we've got two years of one rig development queued up already and approved permits and far more than that in terms of the high quality locations and inventory.
Wow.
And I loved the inventory of all of them and then just as a quick follow ups on the <unk>.
Slide 13, looking on the infrastructure I think of no the answer but I'd just love to hear your color on it seems to me you have more than more of an appropriate sort of infrastructure at this time and it looks the gas oil and water, but maybe I would just love to hear your comments a little more on that slide as far as and when it the combined company sort of how you think about and total infrastructure.
Structure, yes.
We couldnt be more excited to put these two gathering systems together as you point out it's not just the gas gathering system. It's the gas gathering system of produced water gathering system and an oil gathering system.
We've got multiple.
Multiple interconnects to multiple midstream gas processors.
Multiple interconnects to different crude oil pipeline access points and terminals and.
And the gathering system assets.
Obviously.
Represent intrinsic value on their own which gets better by connecting them lowering the system wide gas gathering pressure, which improves the base performance of the wells all wells connected to it.
And then you take that and you compounded even further when you have got.
And in the examples where we have four for example, too.
Sections of body and one another or adjacent where Bonanza would have developed and one on section lengths and high point would of develop the adjacent on section lengths. We can now develop both.
Pick up the idle resource that would've otherwise been and the setback of those two sections. So that's true incremental resource added and then also the economies of scale that are provided by drilling longer laterals and then you combine that with tying those systems into.
Either high points gathering system at the surface or Bonanza is gathering system at the surface and you can see that it basically takes the level of supply cost of the entire 2000 200000 net acre position down the cost curve and we just couldnt be more excited the sink our teeth into that.
We quantified some of the benefits and some of the synergies, but we think there's a lot there as we continue to dig through.
Just continuing to lower the level of supply costs and improve our cost structure.
Fantastic details. Thanks, so much again.
Thank you Neil.
Thank you. Our next question comes from Michael <unk> with Stifel. You May proceed with your question.
Yeah.
Hey, good morning, guys.
Eric You mentioned, you have and inventory of a couple of years of permits based on the one rig program have you received any permits since the oil and gas Commission implemented new rules and in fourth quarter and just wanted to get your thoughts on how those new rules might impact you in terms of timing and costs and the other aspects.
Hey, Mike. Thanks, Yeah. Thanks for the question, we have been receiving a very steady.
Inbound pace of permits.
And permits for for locations and wells themselves. So those are forms two and two way.
We've continued to get those throughout 2020 during the rulemaking and then and.
And the time sense, so we feel pretty good about all of the about all the work that's ongoing.
I think.
The C O GCC and now with the kind of permanent full time commissioners in place, they're able to get a lot more of kind of steady pace of work done and it feels to us like things are incrementally stabilizing and we've got the rule, making the bulk of the rulemaking behind us and 2020 and.
The January 15th effective date, there is a little bit more rulemaking ahead of us, but we don't we don't see that as necessarily.
Yeah difficult or otherwise challenging in terms of the company's ability to develop.
We just we just want to see continued stabilization and and.
And pace on permit generation of permit clearing and C O GCC.
Hearings and the activities at the commission.
Yeah, and dissipate any incremental costs with the of the.
The new rules.
Incremental sense since January 15th I would say no. It has been a pretty steady increase in the rigor.
Of things like leak detection and repair site visits site inspections.
And reporting requirements.
We've been involved and the rulemaking and sort of front running those and those anticipated costs over the last.
Three to six quarters as we see it coming we generally build processes and procedures in place.
And so what I would suggest you know on that answer Mike.
Mike is that we've got most of it built in.
It's.
It's again, you don't you don't sort of wake up on January 15th.
With the New Commission and the new rules in place and then put the processes in place so the.
Cost structure, we've had over most of 2020 has most of the procedures and rigor built in and obviously the associated cost built in.
Got you, Okay and.
Looking at the free cash flow, you're going to generate over the next few years it looks like you're going to be able to reduce the debt you inherit from.
And I point pretty quickly when you get that too.
Where you want it.
Just wanted to get your thoughts on on how Youre looking at the use of free cash flow after that they.
And maybe in terms of dividend or buyback or or other uses yeah. All of those are on the table Mike.
And we will have a new board in place.
At the closing and.
I'd hate to front run those board decisions and the and the proper and rigorous analysis, but it's going to be drill.
Driven like it always has been at Bonanza driven by returns.
So there's going to be probably a mix in that and that basket of consideration I think dividends certainly is something we want to talk about and want to better understand share repurchases as well, although with just 35 million shares out.
Repurchasing the shares is going to be.
It has the downside to it.
But there is a return associated with that activity as well and then getting the the leverage ratio down to half of turned isn't going to take long and.
So there is an opportunity to use.
Some combination of cash and stock should we find a good opportunity to.
And to continue inorganically growing the business through combinations with other companies.
Great. Thanks, Eric Thanks, Mike.
Thank you. Our next question comes from Phillips Johnston with capital one and you May proceed with your question.
Hey, guys. Thanks, just one from me.
Page four of the slide deck shows $642 million of.
PV 10 value at the year and strip I'm just wondering if you could provide just the PDP component of that.
Yes Phillips.
And thanks for the question so.
At year end strip just to be specific.
The PDP PV 10 is $437 million.
Okay.
And for me. Thanks, guys. Thanks that was easy.
And.
Thank you. Our next question comes from Noel Parks with Tuohy Brothers You May proceed with your question.
Good morning.
Good morning.
Hi, I think since we last spoke.
We've got what 15 Bucks improvement on the oil price.
How much can change.
Much of along those lines.
Just wondering you know as far as.
Oh, the different scenarios you're contemplating.
Into the the.
And I'd point well.
Of the high point of the acquisition.
I'm just wondering do you.
And then do you have any thoughts about.
And that may be what.
Cost structure.
Look like going forward I guess I'm, just wondering on the service side.
After a really slow year on the base and and.
On the call of setting so much down and now when things do come back do you believe we finally see the the trough and the service prices or do you think there's still capacity and.
People on the equipment out there that the badly wants to get to work again.
Thanks, Noel it's of Great question, and there's a different strategy for different parts of the cycle and I think as we as we reach this this inflection here over the last quarter, where things started kind of dramatically grinding up into the right and the commodity prices.
We see.
Ample idle capacity on the drilling contractor side of the business there is going to be.
Crews available and rigs available and contractors and they're not going to be as far as I can tell and a position to really command pre.
Premiums for the most part of.
That's on the kind of the drilling side of the business the full the full suite of.
Drilling location services.
When it when it comes to stimulation services I think it's quite the opposite I think the stimulation market has tightened.
Meaningfully just in the last few months and it was already beginning to tighten even in the back half of 2020.
As folks were both recognizing some of the idled capacity was was being taken.
Kind of out of immediate availability at the same time that which was immediately available was being contracted and so I would say on two fronts drilling there is idle capacity and operators will be able to drive of pretty hard bargain on the drilling side on the stimulation side.
It's going to be a little bit more difficult.
But we've got stimulation, we've got of stimulation crew under contract now and well maintained.
That that crew under contract for most of the year.
To maintain our steady diet of of Docs and then.
Kind of replenished DUC inventory throughout the balance of 'twenty, one so we feel pretty good about our access to those services.
And those are those are long running relationships I don't anticipate paying kind of spot.
Spot premiums for those as we as we've maintained.
And these relationships over time.
And if you think about <unk>.
Some of the other sub elements.
Roustabout services facilities construction services Pipelining services and alike, I think there's still plenty of slack and the system and most of those.
Service domains, so I wouldn't anticipate that tightening up significantly on the oil country tubular side of the business I do anticipate that starts to tighten here and kind of Q.
Q2 and continuing on.
If you look at the scrap metal market, it's kind of a precursor to oil country tubular goods and can be a leading indicator and thats up substantially worldwide.
Rice's for scrap metal so let me stop there and all and CFO. If you got other questions or comments on what I've just said.
No that was the that was really helpful. I mean, well.
And I Wonder if you talk about just any elements of the tightened. It does make me think hey, I guess, we're in the middle of the real and wish the best rally.
Sure.
After such a long time.
And I guess, one more from me.
Do you have any.
And that's on.
Your hedging policy going forward with the with the combined companies.
Yes, it's a good question.
Again.
Me trying to front run what might be on new audit Committee certainly will be.
Some of the composition of Ali at least a few new members of of the New Board.
I can't get too specific on that but what I would say is we intend to maintain a very strong balance sheet around the half a turn of leverage and net balance sheet means you don't you don't want to be too aggressive on hedging.
You want you want to be able to to allow that balance sheet some exposure.
And that's that's just kind of of fundamental balance sheet versus hedging and risk management.
Brad do you want to comment on on hedging beyond that what you. What you think the strong balance sheet and the larger company might might.
Ply without front running of audit Committee.
Not too specifically, but no I think the tactics will continue to be a.
A pretty disciplined layering strategy, which we've always employed here predominantly using zero cost collars and you can see that on.
Obviously the book is detailed in the 10-K, but you can see that.
And of our existing positions that day in the first quarter. We are about three quarters hedged on the oil side, but that debt declines off relatively quickly over the ensuing quarters.
And I think that structure will remain.
As is.
Even though we're doubling the size.
Great. That's all I had thanks.
Thanks Neil.
Thank you. Our next question comes from Chris Stevens with Chris Stevens with Goldman Sachs. You May proceed with your question.
Hi can you hear me.
Yeah, Chris.
So the freeze offs, and Colorado and the outrageously high spot prices is that causing any kind of derivatives whiplash or anything.
Okay.
Brent why don't you take the <unk>.
And thanks for the question Chris.
And I wouldn't call it of Whiplash clearly we have.
A good percentage of our Q1 Nash.
Natural gas hedged.
And the ceilings of those or are in the mid twos, two and a quarter and and.
Little bit higher than that on some.
So clearly that hedge.
As gas spikes works against you as they are structured to do I would say that the the.
The benefit of of the current situation as reflected in our and our realizations has been more on the natural gas liquid side, which has become a larger percentage of our product mix and we don't have any of the propane or any of the the component products hedged at this point of <unk>.
So between the improved recovery of Ngls.
And that's that.
It's been reflected in the overall improvement and realized prices on and oil equivalent basis does that help.
That helps I was just thinking if there's a freeze off of and you can't deliver and.
You have a options contract debt.
Offsets that.
It seems like that could be a big problem for some producers and I was just checking with you got it yes.
Actually the good.
Question, as well, our hedge contracts or financial contracts.
So we don't deliver physical against those contracts.
Okay.
But the $350 spot price.
And do you have to settle and normally you would settle but when you deliver of physical youre going to receive $357 and if you can't deliver physical that's what I worry about it.
Yeah, I'm actually I'm actually not concerned about our inability to deliver on on our contracts, Chris I think if that if that's.
Not entirely sure I understand the question, but what on what I think I'm hearing is perhaps some concern on whether or not we might have.
Demands to deliver which we can't meet and we have no. We have no difficulty at this at this point despite the freeze offs.
That impact of the business over the weekend.
No problem delivering against our contracts.
Okay. Thank you very much really just the settlement price. Thank you Chris.
Thank you and as a reminder to ask a question you'll need the press star one on your telephone. Our next question comes from Ray Deacon with Petro Lotus You May proceed with your question.
Yeah, Hey, good morning, Eric and Brian.
I have the follow up on the your NGL comment.
And there's been a pretty big uptick and industrial demand from natural gas do you see any read through on NGL realizations relative to Nymex.
And <unk> or <unk>.
Right. Thanks for the question they continue to improve.
Natural gas liquids and made specifically propane has.
Has spiked pretty dramatically here in the last couple of months and and partially flowed through in the fourth quarter, but it continues to be and high demand obviously for heating.
And so I think we will continue to benefit from.
The unrealized high NGL prices.
Got it got it and.
Just.
The follow up I guess with what you mentioned about the Seo Gcc's.
But the strip.
And stricter policies around leak detection and repairs I guess do you feel like you might be maybe ahead of some of your peers and the Permian or other basins and in terms of being able to talk about.
The sustainability metrics admission metrics that most of the e&ps sort of kind of moving towards.
That's a great question and we absolutely believe.
And that understanding.
How to be of responsible steward of your resources, whether those are capital resources land resources oil and gas subsurface resources or in this case.
Air emissions resources, and the impacts of our that the externalities of our of our operating business.
We believe that we've got a competitive advantage operating in Colorado and operating with.
With the with the level of transparency and.
Surface cultural.
The tension that exists and D. J gives us the opportunity pushes us to be better and delivers to us.
Steel sharp and steel and it makes us better and that.
The improvement and our operating practices and our knowledge of state of the art best.
Best and available best available on the safest technologies means that we have a competitive advantage against most operators, who don't operate and the same environment.
And I think thats in terms of leak detection and repair it's in terms of reporting standards, whether those are CDP.
Two of the EPA titled Five management, According to EPA non attainment, which.
Which the.
The United Star the.
U S EPA has custody and stewardship over some jurisdictions, including the Denver Metro area.
In short we think it makes us better we think it's a competitive advantage and we think most E&P across the U S is probably lagging the state of Colorado and lagging and.
And the learnings and the tension.
We've been able to capitalize on it.
That's great. Thanks, very much and just a last quick one I think last quarter you didn't have clear communication from oxy on plans for French Lake does the current budget and include anything for drilling there.
Yes, 2021, it doesn't it does not.
Yes.
What we have is of great relationship with Oxy and we continue to work closely with them, we know they're working hard and.
And.
Beyond 2021.
They are a big organization and they've got kind of budgeting and long range plans in place for 'twenty two and beyond.
The short answer is no for 'twenty, one and I think 22, just remains to be discussed with oxy and and.
Remain remains on determined at this point, but great resources, great relationship and everyone's working hard to capitalize on it.
That's great thanks very much.
Thank you Ray.
Thank you and our next question comes from Tom Hughes with Wells Fargo. You May proceed with your question.
Hey, guys and I just wanted to see real quickly. If you re evaluated the flow back strategy just in light of oil prices and shape of the curve.
Yeah. Thanks, Tom It's a good question.
We'll always have.
<unk>, our economic optimization model of according to.
Constantly updating cost model and are constantly updating revenue model and that includes reservoir pressure management, which is what informs our flowback strategy. So it comes as part of the continuously evolving Dynamo.
The economic optimization tool.
So what that will do is it will tell us whether or not based on the.
The revenue model attached to the type curve.
Reach of the economic Optima.
With with changes, whether thats choking or opening.
And then it forecast and optimizes various streams and various value dollar values of according to the stream. So I guess the short answer is yes and.
And I think I think the short answer will always be yes based on the process.
The process is set to update continuously on continuously changing cost model and revenue model.
Assigned to a very specific set of type curves. According to the Dynamo physics engine.
Okay. Thank you.
Thanks, Tom.
Thank you and I'm not showing any further questions at this time on I'd like to turn the call back over to Eric Gregory for any further remarks.
Thank you I just want to thank everyone for joining the call. This morning and for your continued interest and Bonanza Creek.
Thank you ladies and gentlemen. This concludes today's conference call. Thank you for participating you may now disconnect.
Yeah.
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And.
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