Q4 2023 Gulfport Energy Corp Earnings Call

Operator: Good day, ladies and gentlemen, and welcome to the Gulfport Energy Corporation fourth quarter 2023 earnings call. All lines have been placed on a listen-only mode, and the floor will be open for questions and comments following the presentation. If you should require assistance throughout the conference, please press star zero to reach a live operator. At this time, it is my pleasure to turn the floor over to your host, Jessica Antle. Welcome, Jessica. The floor is yours.

Good day, ladies and gentlemen, and welcome to the Gulfport Energy Corporation fourth quarter 2023 earnings call.

Things have been placed on a listen only mode and the floor will be opened for questions and comments. Following the presentation. If you should require assistance throughout the conference. Please press star zero to reach a live operator at this time and it's my pleasure to turn the floor over to your host Jessica Antle welcome Jessica the floor.

Or is yours.

Jessica R. Antle: Thank you, Karen, and good morning. Welcome to Gulfport Energy Corporation's fourth quarter and full year 2023 earnings conference call. I am Jessica Antle, Vice President of Investor Relations. Speakers on today's call include John Reinhart, President and CEO, and Michael Hodges, Executive Vice President and CFO. In addition, Matthew Rucker, Senior Vice President of Operations, will be available for the Q&A portion of today's call. I would like to remind everybody that during this conference call, the participants may make certain forward-looking statements relating to the company's financial condition, results of operations, plans, objectives, future performance, and business. We caution you that actual results could differ materially from those that are indicated in these forward-looking statements due to a variety of factors. Information concerning these factors can be found in the company's filings with the SEC. In addition, we may reference non-GAAP measures.

Thank you Karen and good morning, welcome to Gulfport Energy Corporation's fourth quarter and full year 2023 earnings conference call I Am Jessica Antle, Vice President of Investor Relations.

Jessica Antle: On today's call include John Reinhart, President and CEO, and Michael Hodges Executive Vice President and CFO. In addition, Matthew Rucker Senior Vice President of operations will be available for the Q&A portion of today's call I would like to remind everybody that during this conference call. The participants may make certain forward looking statements relating to.

The company's financial condition results of operations plans objectives future performance and business. We caution you that the actual results could differ materially from those that are indicated in these forward looking statements due to a variety of factors information concerning these factors can be found in the company's filings with the SEC. In addition, we may reference non-GAAP.

Jessica R. Antle: Information relating to the comparable GAAP measures will be posted on our website. An updated Gulfport presentation was posted yesterday evening on our website in conjunction with the earnings announcement. Please review at your leisure. At this time, I would like to turn the call over to John Reinhart, President and CEO. Thank you, Jessica, and thank you to everyone for listening to our call.

Jessica Antle: The issue to the comparable GAAP measures will be posted on our website an updated gulfport presentation. We're supposed to do yesterday evening to our website in conjunction with the earnings announcement. Please review at your leisure at this time I would like to turn the call over to John Reinhart, President and CEO.

John Reinhart: Thank you Jessica and thank you to everyone for listening to our call taken.

John K. Reinhart: Taking a step back to reflect on the message we provided on our conference call in February of last year, I noted that during 2023, we would be focused on actions that facilitate efficient and sustainable development of our quality inventory, enhance margins, optimize efficiencies within our capital programs, all while maintaining an attractive balance sheet and utilizing our free cash flow to position the company for value enhancement. The company delivered on those commitments. I'd like to highlight a few of the accomplishments the team achieved over the course of 2023.

Taking a step back to reflect on the message we provided on our conference call in February of last year. I noted during 2023, we would be focused on actions that facilitate that.

John Reinhart: Fishing and sustainable development of our quality inventory enhanced margins.

John Reinhart: Optimize efficiencies within our capital programs, all while maintaining an attractive balance sheet and utilizing our free cash flow to position the company for value enhancement. The company delivered on those commitments I'd like to highlight a few of the accomplishments of the team achieved over the course of 2023.

John K. Reinhart: The company delivered net production above the high end of the initial guidance range while staying below the midpoint of our initial capital budget provided in February, despite adding incremental activity in the fourth quarter that was not included in our original capital guidance. We augmented our attractive acreage portfolio by allocating $48 million of our adjusted free cash flow to strategic acquisitions of Utica Liquids Rich Acreage that extended our inventory base by one and a half years, and also by delineating two years of Liquids Rich Marcellus locations overlying our existing Utica acreage with no incremental land acquisition costs. Our 2023 development program led to meaningful free cash flow generation, totaling approximately $199 million for the year.

John Reinhart: The company delivered net production above the high end of the initial guidance range, while staying below the midpoint of our initial capital budget provided in February despite adding incremental activity in the fourth quarter that was not included in our original capital guidance we.

John Reinhart: We augmented our attractive acreage portfolio by allocating $48 million of our adjusted free cash flow to strategic acquisitions of Utica liquids rich acreage that extended our inventory base by one and a half years.

John Reinhart: And also by delineating two years of liquids rich Marcellus locations overlying, our existing Utica acreage with no incremental link acquisition costs.

John Reinhart: Our 2023 development program led to meaningful free cash flow generation.

John Reinhart: Totaling approximately $199 million for the year and after adjusting for cash flow utilized for discretionary acreage acquisitions, we allocated approximately 99% of our adjusted free cash.

John K. Reinhart: And after adjusting for cash flow utilized for discretionary acreage acquisitions, we allocated approximately 99% of our adjusted free cash to repurchase our common stock, all of which was achieved while maintaining our strong balance sheet, ample liquidity, and financial leverage below one time. Production for the year averaged 1,054 million cubic feet equivalent per day, roughly three percent above the high end of our initial guidance range provided in early 2023. The outperformance was driven by improved cycle times, accelerating the timing of wells brought online, as well as continued strong well performance from our development program. We remain excited about our shift to a pressure-managed flowback program, which drives longer production plateau periods, shallower declines, and capital efficiencies associated with reduced facility costs. Furthermore, based on flowing pressures as a leading indicator, this program should contribute improved EURs and enhance development economics while improving corporate-based decline and lowering future capital intensity. Operationally, for the full year, the company drilled and turned on 24 gross wells, which included two Marcellus, two Scoop, and 20 wells in the Utica.

John Reinhart: To repurchase our common stock.

John Reinhart: All of which was achieved while maintaining our strong balance sheet ample liquidity and financial leverage below one times.

John Reinhart: Production for the year average 1050 4 million cubic feet equivalent per day, roughly 3% above the high end of our initial guidance range provided in early 2023.

John Reinhart: The outperformance was driven by improved cycle times accelerating the timing of wells brought online as well as continued strong well performance from our development program.

John Reinhart: We remain excited about our shift to a pressure managed flowback program, which drives longer production plateau periods shallower declines and capital efficiencies associated with reduced facility cost.

John Reinhart: Furthermore, based on flowing pressures as a leading indicator. This program should contribute improved eur's and enhanced development economics, while improving corporate base decline and lowering future capital intensity.

John Reinhart: Yeah.

John Reinhart: Operationally for the full year the company drilled and turned to sales 24 gross wells, which included two Marcellus to Scoop and 20 wells in the Utica.

John K. Reinhart: On the drilling side, we achieved meaningful cycle time improvements throughout the year, experiencing over a 60% year-over-year improvement in total footage drilled per day when compared to year-end 2022. The company's fourth-quarter average total footage drill per day was the highest for the year, providing strong momentum as we commenced drilling on a three-well pad in the scoop. We look forward to applying our Utica learnings and operational efficiencies realized in 2023 to our 2024 scoop development program. On the completion side, we also saw a significant efficiency improvement in the frack and drill-out phases of our operation, improving average frac pumping hours per day by 30% in 2023 and average plugs drilled per day by almost 50%. Exiting the year with a quarterly average of 20.8 frac pumping hours per day.

John Reinhart: Well on the drilling side, we achieved meaningful we achieved meaningful cycle time improvements throughout the year experiencing over a 60% year over year improvement in total footage drilled per day, when compared to year end 2022.

John Reinhart: The Companys fourth quarter average total footage drilled per day was the highest for the year, providing strong momentum as we commenced drilling on a three well pad in the scoop.

John Reinhart: And look forward to applying our Utica learnings and operational efficiencies realized in 2023, two or 2024 skewed development program.

John Reinhart: On the completion side, we also saw a significant efficiency improvement in the Frac and drill all phases of our operations.

John Reinhart: Improving average frac pumping hours per day by 30% in 2023 and average plugs drilled per day by almost 50% exiting.

John Reinhart: Exiting the year with a quarterly average of 28 Frac pumping hours per day again, our highest quarterly average for the year.

John K. Reinhart: Again, our highest quarterly average for the year. Our operating team's high level of efficiency and cost reduction focus resulted in over $35 million in capital savings during 2023. And, as previously announced, we elected to reinvest those savings into the development of our high-quality assets by adding incremental drilling and completion operations during the fourth quarter. Even with this acceleration of activity, we continue to deliver within expectations of full-year 2023 capital expenditures, which totaled approximately $443 million, excluding discretionary acreage acquisitions. Specific to our Marcellus development, we drilled and completed the company's first two operated Marcellus wells on our Stackpay acreage in Belmont County.

John Reinhart: Our operating team's high level of efficiency and cost reduction focus resulted in over $35 million in capital savings during 2023, and as previously announced we elected to reinvest those savings into the development of our high quality assets by adding incremental drilling and completion operations during the fourth quarter.

John Reinhart: Even with this acceleration of activity, we continued to deliver within expectations of full year 2023 capital expenditures, which totaled approximately $443 million, excluding discretionary acreage acquisitions.

John Reinhart: Specific to our Marcellus development, we drilled and completed the company's first two operated Marcellus wells on our stack pay acreage in Belmont County.

John K. Reinhart: When normalized to a 15,000-foot lateral, the wells delivered an average 60-day initial production rate of approximately 860 barrels per day of oil and 5.2 million cubic feet a day of natural gas. As a reminder, these wells are located on an existing Utica pad, allowing significant midstream flexibility in our ability to blend the rich gas from the Marcellus wells with existing Utica dry gas production. We remain very encouraged as we continue to gain more production data and produce the wells under pressure-managed flow, currently experiencing less than 6 psi pressure drop per day following 60-plus days of production. We believe the Hindershot development, along with existing industry offset development in Ohio and West Virginia, has significantly de-risked our Marcellus position, and now estimate we have delineated approximately 50 to 60 gross wells.

John Reinhart: When normalized to a 15000 foot lateral the wells delivered an average 60 day initial production rate of approximately 860 barrels per day of oil and $5 2 million cubic feet a day of natural gas as a reminder, these wells are located on an existing Utica pads, allowing significant.

John Reinhart: <unk> midstream flexibility and our ability to blend the rich gas from the Marcellus wells with existing Utica dry gas production.

John Reinhart: We remain very encouraged as we continue to gain more production data and produce the wells under pressure managed flow currently experiencing less than six psi pressure drop per day, following 60 plus days of production.

John Reinhart: We believe the Henry Schein development, along with existing industry offset development in Ohio, and West Virginia has significantly derisked, our Marcellus position and now estimate we have delineated approximately 50 to 60 gross wells.

John K. Reinhart: Assuming a Marcellus development cadence of roughly 25 wells per year, this equates to approximately two years of liquids-rich inventory. When considering these strong results and the attractive rates of return that compete for capital across our premier asset portfolio, we anticipate additional Marcellus development beginning in early 2025. On the discretionary acreage acquisition front, the company expanded its acreage position by investing $48 million in 2023 towards targeted Utica liquids-rich acreage within our Belmont County development footprint. [inaudible] When coupled with the de-risking of our Marcellus acreage, the additional inventory provides durable, fundamental value to the company, as well as expands optionality in our go-forward development plan. The company is prioritizing the development of the recently acquired Utica Acreage and plans to begin pad construction in the area in late 2024, with plans to commence drilling in early 2025.

John Reinhart: Assuming our Marcellus development cadence of roughly 25 wells per year. This equates to approximately two years of liquids rich inventory.

John Reinhart: When considering these strong results and the attractive rates of return that compete for capital across our Premier asset portfolio, We anticipate additional Marcellus development beginning in early 2025.

John Reinhart: On the discretionary acreage acquisition front the company expanded our acreage position by investing $48 million in 2023 towards targeted Utica liquids rich acreage within our Belmont County development footprint.

John Reinhart: With our current drilling pace approximately one five years of core liquids rich locations were added at an average cost of approximately $1 7 million per net location.

John Reinhart: When coupled with the Derisking of our Marcellus acreage. The additional inventory provides durable fundamental value to the company as well as expanding optionality in our go forward development plans.

John Reinhart: The company is prioritizing development of the recently acquired Utica acreage and plans to begin pad construction in the area in late 2024 with plans to commence drilling in early 2025.

John K. Reinhart: The discretionary acreage acquisition spending in 2023 allowed us to organically extend our high-quality inventory base at extremely attractive returns. We will continue to monitor opportunities to meaningfully increase our leasehold footprint to enhance resource depth and believe these opportunities rank very high as we continuously assess and evaluate uses of free cash flow in 2024. As we move into 2024, the current volatile natural gas environment reinforces the importance of developing our assets in an efficient and sustainable manner. Building on the momentum from 2023, we plan to remain focused on further optimizing our margins, development program cycle times, and operating costs. The company forecasts delivering relatively flat production year over year on 10% less capital investment.

John Reinhart: The discretionary acreage acquisition spending in 2023 allowed us to organically erste and extend our high quality inventory base at extremely attractive returns. We will continue to monitor opportunities to meaningfully increase our leasehold footprint to enhance resource step and believe these opportunities ranked very high as we can.

John Reinhart: Tenuously assess and evaluate uses of free cash flow in 2024.

John Reinhart: As we move into 2024, the current volatile natural gas environment reinforces the importance of developing our assets in an efficient and sustainable manner.

John Reinhart: Building on the momentum from 2023, we plan to remain focused on further optimizing our margins development program cycle times and operating costs. The company forecast delivering relatively flat production year over year on 10% less capital invested the total capital spending for the year is projected to be in the range of 380.

John K. Reinhart: The total capital spending for the year is projected to be in the range of $380-420 million, with more focus on liquids-rich development in both Utica and SCOOP than prior programs. Our total capital spend includes $50-$60 million of maintenance, land, and leasehold investment focused on bolstering our near-term drilling program with increases in working interest and lateral footage in units we plan to drill near-term. The company's 2024 Utica Turn-in-Line operated working interest is anticipated to be 97%, an increase of 5% over 2023's program, with the average lateral length of the planned activity up nearly 30% over 2023, increasing our exposure to our high-return operated development program. Simply put, our significant operational efficiencies and reinvestment in our asset base through our land maintenance program allow us to deliver a 2024 program in line with 2023 production results on less well activity and capital investment.

John Reinhart: $420 million.

John Reinhart: With more focus on liquids rich development in both the Utica and scoop than prior programs are.

John Reinhart: Our total capital spend includes $50 million to $60 million of maintenance land and lease hold investment.

John Reinhart: Focused on bolstering our near term drilling program with increases of working interest and lateral footage in units, we plan to drill near term.

John Reinhart: The company's 2024 Utica turn in line operated working interest is anticipated to be 97% an increase of 5% over 2020 Threes program.

John Reinhart: With the average lateral length of the planned activity up nearly 30% over 2023, increasing our exposure to our high return operated development program.

John Reinhart: If we put our significant operational efficiencies and reinvestment in our asset base through our land maintenance program allows us to deliver a 2024 program in line with 2023 production results on less well activity and capital invested.

John K. Reinhart: It is worth highlighting that our 2024 program also includes roughly $30 to $35 million of capital allocated towards building strategic ducts beyond our normal operating cadence, enhancing future capital program optionality, and further highlighting our significant year-over-year efficiencies and our ability to deliver similar production in 2024 on meaningfully lower capital. We currently forecast that approximately 70% of our drilling and completion capital will be allocated in the first half of 2024 and will trend lower in both the third and fourth quarters of the year. Turning to production, we anticipate this level of spin will deliver 1.045 to 1.08 billion cubic feet of equivalent per day in 2024, relatively flat over our full year 2023 average.

John Reinhart: It is worth highlighting that our 2024 program also includes roughly $30 million to $35 million of capital allocated towards building strategic ducks beyond our normal operating cadence enhancing future capital program Optionality and further highlighting our significant year over year efficiencies and our ability.

John Reinhart: City to deliver similar production in 'twenty, four while meaningfully lower capital.

John Reinhart: We currently forecast approximately 70% of our drilling and completion capital will be allocated in the first half of 2024 and trend lower in both the third and fourth quarters of the year.

John Reinhart: Turning to production, we anticipate this level of spend will deliver 1.0 405 to 1.08 billion cubic feet equivalent per day in 2020 for relatively flat over our full year 2023 average we are remaining flexible in light of the commodity backdrop and possess the ability to moderately differ.

John K. Reinhart: We are remaining flexible in light of the commodity backdrop and possess the ability to moderately defer or accelerate completions should commodity prices and rates of return warrant. In our investment deck, on slide 11, we included a more detailed outlook of our expected 2024 capital and production cadence. We currently forecast our 2024 production to total 92% natural gas, which will be higher in the first half of 2024 as a result of our natural gas-directed activity late last year and move slightly towards a higher liquids weighting towards the back half of 2024 and into 2025 as we bring online our more liquids-rich development.

John Reinhart: Or accelerate completions should commodity prices and rates of return warrant.

John Reinhart: In our investment deck on slide 11, we included a more detailed outlook of our expected 2020 for capital and production cadence.

John Reinhart: We currently forecast our 2024 production to total, 92% natural gas, which will be higher.

John Reinhart: Higher than the first half of 2024 as a result of our natural gas directed activity late last year and moved slightly towards a higher liquids weighting towards the back half of 2024 and into 2025 as we bring online are more liquids rich development.

Michael L. Hodges: In closing, despite a challenging commodity backdrop, we project Gulfport will continue to generate meaningful adjusted free cash flow in 2024 and currently forecast a top decile free cash flow yield relative to our natural gas peers. We plan to continue to focus on the return of capital to our shareholders and, excluding acquisitions, expect to allocate substantially all of our full-year 2024 adjusted free cash flow towards common share repurchase. Now I will turn the call over to Michael to discuss our financial results. Thank you, John, and good morning, everyone.

John Reinhart: In closing despite a challenging commodity backdrop, we project Gulfport will continue to generate meaningful adjusted free cash flow in 2024, and currently forecast a top decile free cash flow yield relative to our natural gas peers. We plan to continue to focus on our return of capital to our shareholders and excluding ACA.

John Reinhart: Physicians expect to allocate substantially all of our full year 2024, adjusted free cash flow towards common share repurchases now I will turn the call over to Michael to discuss our financial results.

Michael Hodges: Thank you John and good morning, everyone since John hit on a number of the results for the full year of 2023 I'll start by summarizing our fourth quarter results, which further emphasize our operational momentum as we closed out the year and have positioned us to hit the ground running in 2024.

Michael L. Hodges: Since John hit on a number of the results for the full year of 2023, I'll start by summarizing our fourth quarter results, which further emphasize our operational momentum as we closed out the year and have positioned us to hit the ground running in 2024. Net cash provided by operating activities before changes in working capital totaled approximately $184 million during the fourth quarter, more than doubling our capital expenditures and allowing us to make significant common share repurchases, all while maintaining our balance sheet strength. We reported adjusted EBITDA of $191 million during the quarter and generated adjusted free cash flow of $85 million for the same period, driven by our strong hedge position, consistent production base, and low operating cost structure. Said another way, we delivered our best quarter of 2023 from an adjusted free cash flow perspective and leveraged that outcome by adding incremental high-quality locations to our portfolio while buying back nearly 3% of our market capitalization through our share repurchase program. It was a tremendous finish to what was an outstanding year for Gulfport. Production costs for the fourth quarter totaled $1.16 per million cubic feet equivalent, better than analyst consensus expectations.

Michael Hodges: Net cash provided by operating activities before changes in working capital totaled approximately $184 million during the fourth quarter more than doubling our capital expenditures and allowing us to make significant common share repurchases, all while maintaining our balance sheet strength.

Michael Hodges: We reported adjusted EBITDA of $191 million during the quarter and generated adjusted free cash flow of $85 million for the same period, driven by our strong hedge position consistent production base and low operating cost structure.

Michael Hodges: Said another way, we delivered our best quarter of 2023 from an adjusted free cash flow perspective, and leverage that outcome by adding incremental high quality locations to our portfolio, while buying back nearly 3% of our market capitalization through our share repurchase program. It was a tremendous finish to what was an outstanding year for.

Michael Hodges: Gulfport.

Michael Hodges: Production costs for the fourth quarter totaled $1 16 per million cubic feet equivalent better than analyst consensus expectations. The company continued to focus on optimizing and reducing costs in the field combined with our strong production performance. During 2023 drove our per unit expenses to the low end of our guidance on an.

Michael L. Hodges: The company continued to focus on optimizing and reducing costs in the field. This, combined with our strong production performance during 2023, drove our per unit expenses to the low end of our guidance on an annual basis, highlighting again our 2023 operational performance. As John mentioned, despite our focus on a more liquids-rich activity program in 2024, we currently forecast our per-unit operating costs, including LOE, taxes other than income, and midstream expenses, will be in line with 2023 and total in the range of $1.15 to $1.23 per MCFE. Our all-in realized price during the fourth quarter was $3.20 per MCFE, including the impact of cash settled derivatives.

Michael Hodges: Noel basis, highlighting again, our 2023 operational performance.

Michael Hodges: As John mentioned, despite our focus on a more liquids rich activity program. In 2024, we currently forecast our per unit operating costs, including LOE taxes other than income in midstream expenses will be in line with 2023 and total in the range of $1 15 to $1 23 per Mcf.

Michael Hodges: Hey.

Michael Hodges: Our all in realized price during the first quarter fourth quarter was $3 20 per mcf, including the impact of cash settled derivatives. This realized unit price is 30 <unk> above the Nymex Henry hub index price highlighting the benefit of Gulfport diverse marketing portfolio for natural gas and the pricing uplift from our.

Michael L. Hodges: This realized unit price is $0.33 above the NYMEX Henry Hub Index price, highlighting the benefit of Gulfport's diverse marketing portfolio for natural gas and the pricing uplift from our liquids portfolio in both of our asset areas. We realized a cash hedging gain of approximately $50 million during the quarter, demonstrating the strength of our hedge book and its impact on our cash flows. Our natural gas price differential before hedges was negative 51 cents per MCF compared to the average monthly NYMEX settled price during the quarter, slightly tighter than the third quarter of 2023.

Michael Hodges: <unk> portfolio in both of our asset areas.

Michael Hodges: We realized a cash hedging gain of approximately $50 million during the quarter, demonstrating the strength of our hedge book and its impact to our cash flows.

Michael Hodges: Our natural gas price differential before hedges was negative 51 per mcf compared to the average monthly Nymex settled price during the quarter slightly tighter than the third quarter of 2023, however basis prices have continued to be under pressure during the quarter driven by elevated storage levels and rising production, especially in the.

Michael L. Hodges: However, basis prices continued to be under pressure during the quarter, driven by elevated storage levels and rising production, especially in the Northeast. As we expected and had previously communicated, we ended the year near the wide end of our 2023 guidance of $0.20 to $0.35 per MCF below the NYMEX price and currently forecast a similar natural gas differential for the full year of 2024. On the capital front, incurred capital expenditures during the fourth quarter before discretionary acreage acquisitions totaled $69.4 million related to drilling and completion activity and $13.4 million related to maintenance, leasehold, and land investment.

Michael Hodges: East.

Michael Hodges: As we expected and had previously communicated we ended the year near the wide end of our 2023 guidance of 20 to 35 per Mcf below the Nymex price and currently forecast a similar natural gas differential for the full year of 2024.

Michael Hodges: On the capital front incurred capital expenditures during the fourth quarter before discretionary acreage acquisitions totaled $69 $4 million related to drilling and completion activity and $13 $4 million related to maintenance leasehold and land investment.

Michael L. Hodges: As a reminder, this includes accelerated activity predominantly focused in the liquid areas of the Utica and the Scoop. Even with this incremental activity, as John previously mentioned, we ended the year below the midpoint of our initial capital budget range provided in February, as well as below the midpoint of the updated capital guidance range provided in October, further highlighting the strong operational performance by the team over the course of 2023. The financial results our team has delivered for 2023 have been exceptional, and we're poised to capitalize on these improvements as we deliver more with less in 2024 and beyond. I want to focus some of my comments this morning on our hedge book, which I believe differentiates Gulfport in its ability to play offense in delivering value to shareholders during 2024, while others play defense, fortifying their balance sheets or protecting their dividends.

Michael Hodges: As a reminder, this includes accelerated activity predominantly focused in the liquids areas of the Utica and the scoop.

Michael Hodges: Even with this incremental activity as John previously mentioned, we ended the year below the midpoint of our initial capital budget range provided in February as well as below the midpoint of the updated capital guidance range provided in October further highlighting the strong operational performance by the team over the course of 2023.

Michael Hodges: The financial results. Our team has delivered for 2023 had been exceptional and we are poised to capitalize on these improvements as we deliver more with less in 2024 and beyond.

Speaker Change: I wanted to look at some of my comments. This morning on our hedge book, which I believe differentiates gulfport and its ability to play offense and delivering value to shareholders. During 2024, while others play defense fortifying their balance sheets are protecting their dividends with respect to the current hedge position and we are pleased to have downside protection covering five.

Michael L. Hodges: With respect to the current hedge position, we are pleased to have downside protection covering 590 million cubic feet per day in 2024, or over 60 percent of our gas production at an average floor price of $3.69 per MCF. We have been opportunistically layering in hedges for 2025 and currently have natural gas swap and collar contracts totaling approximately 310 million cubic feet per day at an average floor price of $3.80 per MCF.

Speaker Change: 590 million cubic feet per day in 2024 or over 60% of our gas production at an average floor price of $3 69 per Mcf, we have been opportunistically layering in hedges for 2025, and currently have natural gas swap in color contracts totaling approximately 310.

Speaker Change: 10 million cubic feet per day at an average floor price of $3 80 per Mcf on the basis front, we have locked in over 40% of our 2024 natural gas basis exposure and have a nice base of our anticipated 2025 basis exposure locked in as well providing pricing security at our largest sales Paul.

Michael L. Hodges: On the basis front, we have locked in over 40% of our 2024 natural gas basis exposure and have a nice base of our anticipated 2025 basis exposure locked in as well, providing pricing security at our largest sales points. [inaudible] We believe both the scale and the quality of our natural gas hedge book provide the de-risked foundation for free cash flow expansion that differentiates Gulfport from its peers. Due to our premium hedge position, we are confident that the company will generate adjusted free cash flow in 2020-24, while others are far more uncertain. In fact, before acquisitions or share repurchases, we project that Gulfport will generate adjusted free cash flow at Henry Hub prices down to approximately $1 per MMBTU for natural gas.

Speaker Change: In addition to the risk mitigation, our diverse portfolio of firm transportation offers we believe but the scale and the quality of our natural gas hedge book provides a derisked foundation for free cash flow expansion that differentiates gulfport from its peers.

Michael Hodges: Due to our premium hedge position, we are confident that the company will generate adjusted free cash flow in 2000, and 2024, while others are far more uncertain in fact before acquisitions our share repurchases, we projected that gulfport will generate adjusted free cash flow at Henry hub prices down to approximately one.

Michael Hodges: <unk> per <unk> for natural gas.

Michael L. Hodges: This is a testament to not only our advantageous derivative position but also to the improvement in capital efficiencies and focus on lowering operating costs that is more than offsetting the weakness in the natural gas market today. While we continue to believe there are better days ahead for natural gas, we remain committed to a disciplined approach to hedging our cash flows, and we believe Gulfport delivers a differentiated combination of free cash flow generation capacity and downside protection over the next couple years. Turning to the balance sheet, our financial position remains top tier, with a 12-month net leverage exiting the quarter at 0.9 times and our liquidity totaling $720.1 million, comprised of $1.9 million of cash plus $718.2 million of borrowing-based availability.

Michael Hodges: This is a testament to not only our advantage derivative position, but also to the improvement in capital efficiencies and focus on lowering operating costs that is more than offsetting the weakness in the natural gas market today, while we continue to believe there are better days ahead for natural gas, we remain committed to a disciplined approach for hedging our cash flows and we believe Gulfport Dill.

Michael Hodges: <unk> is a differentiated combination of free cash flow generation capacity and downside protection over the next couple of years.

Michael Hodges: Turning to the balance sheet, our financial position remains top tier with a 12 month net leverage exiting the quarter at <unk> nine times, and our liquidity totaling $7 $721 million comprised of $1 $9 million of cash plus $718 $2 million of borrowing base availability.

Michael L. Hodges: Our liquidity today is more than sufficient to fund any development needs we might have for the foreseeable future and provides tremendous flexibility from a financial perspective going forward. As we are positioned to be opportunistic, should low gas prices give rise to dislocations that allow us to capture value for our stakeholders, During the fourth quarter, we repurchased 490,000 shares of common stock for approximately $66 million, which included direct repurchases of common stock from two of our largest shareholders, totaling approximately 292,000 shares that allowed us to capture larger blocks of unrecognized equity value with limited impact on our public float.

Michael Hodges: Our liquidity today is more than sufficient to fund any development need needs, we might have for the foreseeable future and provides tremendous flexibility from a financial perspective going forward as we are positioned to be opportunistic should low gas prices give rise to dislocations that allow us to capture value for our stakeholders.

Michael Hodges: During the fourth quarter, we repurchased 490000 shares of common stock for approximately $66 million, which included direct repurchases of common stock from two of our largest shareholders totaling approximately 292000 shares that allowed us to capture a larger blocks of unrecognized equity value with limited.

Michael Hodges: Impact to our public float.

Michael L. Hodges: Since initiating the repurchase program in March 2022 and as of February 26, we have repurchased approximately 4.5 million shares of common stock at an average share price of $92.41, reducing our common shares outstanding by 15% at a weighted average price more than 35% below our current share price. We currently have approximately $236 million of availability under the $650 million share repurchase program and plan to continue to use substantially all of our adjusted free cash flow to shareholders through common share repurchases, excluding acquisitions, for the foreseeable future. In summary, our operational efficiency improvements, robust hedging position, healthy balance sheet, and strong cash margins provide significant flexibility as we navigate 2024. The Gulfport team delivered on all fronts during 2023, and our push to demonstrate the fundamental value of our asset base and our company propels us into 2024.

Michael Hodges: Initially initiating the repurchase program in March 2022, and as of February 26, we have repurchased approximately four 5 million shares of common stock at an average share price of $92 41.

Michael Hodges: Reducing our common shares outstanding by 15% at a weighted average price of more than 35% below our current share price. We currently have approximately $236 million of availability under the $650 million share repurchase program and plan to continue to use substantially all of our adjusted free cash.

Michael Hodges: Cash flow.

Michael Hodges: Shareholders through common share repurchases, excluding acquisitions for the foreseeable future.

Michael Hodges: In summary, our operational efficiency improvements robust hedging position healthy balance sheet and strong cash margins provide significant flexibility as we navigate 2024. The gulfport team delivered on all fronts. During 2023 and are pushed to demonstrate the fundamental value of our asset base and our company propelled.

Michael Hodges: US into 2024, as we lay out a plan today to deliver more with less we firmly believe our best days are still ahead of us and perhaps most importantly, we continue to generate premium free cash flow yields relative to our peers and utilize that free cash flow to deliver value to our investors as we have the five year free cash flow.

Michael L. Hodges: As we lay out a plan today to deliver more with less, we firmly believe our best days are still ahead of us. And, perhaps most importantly, we continue to generate premium free cash flow yields relative to our peers and utilize that free cash flow to deliver value to our investors, as we have the five-year free cash flow capacity capable of retiring our current market capitalization at future gas prices below $4. With that said, I'll turn the call back over to the operator to open up the call for questions. Thank you.

Michael Hodges: <unk> capable of retiring our current market capitalization at future gas prices below $4 with that said I'll turn the call back over to the operator to open up the call for questions.

Operator: Ladies and gentlemen, the floor is now open to questions. If you do have a question, please press star 1 on your telephone keypad at this time. Again, that's star 1 if you have a question or comment.

Speaker Change: Thank you ladies and gentlemen, the floor is now open for questions. If you do have a question. Please press star one on your telephone keypad at this time again Thats Star. One if you do have a question or comment please hold as we poll for questions.

Operator: Please hold as we poll for questions. And we'll take our first question from Bert Donnes from Truist. Please go ahead, Bert. Hey, good morning, everybody.

Donnie Moore: And we will take our first question from Bert Donna's from choice. Please go ahead Bert.

Donnie Moore: Hey, good morning, everybody.

Bertrand William Donnes: Good morning, Bert. I just want to start off on the, maybe a question on the new guidance. The 10% lower capital requirement is certainly impressive. Just wondering if you could, you know, isolate some of the drivers of those savings you're seeing, and then you mentioned the 30 to 35 million. Maybe you could quantify where that program leaves you on a duck count or a well-in-progress count and how you'd utilize that. Yeah, Bert, this is Matt.

Donnie Moore: Very good morning, Barry.

Donnie Moore: Just wanted to start off on the maybe a question on the new guidance.

Donnie Moore: 10% lower capital requirement is certainly impressive just wondering if you could isolate some of the drivers of those savings Youre seeing and then you mentioned the 30% to $35 million, maybe you could quantify where that program leaves you on a DUC count or are well in progress count and how you utilize that.

Donnie Moore: Yeah. Bert this is Matt I'll talk a little bit on the capital efficiency side as John highlighted in the call or the script. There we've seen quite a bit on the drilling side, obviously, 50% kind of year over year on the Frac side teams did an excellent job in the field getting those pumping hours per day pretty much it.

Matthew H. Rucker: I'll talk a little bit about capital efficiency. As John highlighted in the call or the script there, you know, we've seen quite a bit on the drilling side, obviously 50 percent, kind of year over year. On the frac side, the team's doing an excellent job in the field getting those pumping hours per day pretty much at maximum at this point. We're over 20 hours a day on average.

Matt: Maximum at this point, we're over 20 hours a day on average so all of that translates into that sticky savings, we would expect to see kind of going forward on a year over year basis.

John K. Reinhart: So all that translates into that sticky savings we'd expect to see kind of going forward on a year-over-year basis. You know, as you think about our decreased dollar-per-foot well cost from 2023, primarily 65 percent or so of that is on the efficiencies that are long-lasting. And then we've done a really good job on the supply chain front, working towards the softening market and also just restructuring some contracts that were in place when we got here early in the year. So, you know, that kind of translates to the other 35 percent of those savings. So, you know, all in all, those things can fluctuate on the commodity pricing side, but certainly those efficiencies are where we're focused because those are long-lasting. Yeah, Bert, and I'll take the question on the ducks.

Donnie Moore: As you think about our decrease dollar per foot well costs from 2023.

Matt: Primarily 65% or so of that is on the efficiencies of this long lasting and then we've done a really good job on the supply chain front.

Matt: Working towards the softening market and also just restructuring some contracts are in place when we got here early in the year, so that kind of translates to the other 35% of those savings. So all in all of those things can fluctuate on the commodity pricing side, but certainly those efficiencies are where we're focused because those are long lasting.

Speaker Change: Yes, Bert and I'll take the.

Bert: Question on the <unk> I appreciate you asking that I think.

John K. Reinhart: I appreciate you asking that. I think carrying those six ducks, which is roughly the number that we would call your non-routine type duck inventory carried for the company, really holds a lot of strategic value. It provides optionality for us to actually accelerate completion should commodity prices warrant it. But whenever you think about that $30 to $35 million that's being spent this year on it, I think, to your point, that is incremental actual capital that if you look at a go-forward type maintenance level program, not only are we realizing 10% year-on-year reduction, but also that non-reoccurring type duck just kind of reinforces how much efficiency gains and how So I'm really pleased with the execution and performance and efficiencies, and hopefully that kind of clarifies the duck count and the questions regarding it for capital. It sure does.

Bert: Carrying those six deaths, which is roughly the number that we would call. Your non routine type DUC inventory carried for the company and really holds a lot of strategic value. It provides optionality for us to actually accelerate completions should commodity prices warrant, but whenever you think about that 30% to $35 million is spent this year on it I think to your point.

Bert: Is that is incremental actual.

Bert: Capital that if you look on a go forward type maintenance level program not only are we realizing 10% year on year reduction, but also that non reoccurring type Doug just kind of reinforces how much efficiency gains and how much cost reductions. The team has achieved over the past year. So real pleased with the execution of performance and efficiency.

Bert: And.

Bert: Hopefully that kind of clarifies the DUC count in the questions regarding them for capital.

Speaker Change: That sure does and then my second question is if I'm not mistaken on your slide the new Marcellus oil rates seem to shake up the IRR ranking I know there are certain commodity assumptions in there but.

Bertrand William Donnes: And then my second question is, if I'm not mistaken on your slides, the new Marcellus oil rates seem to, you know, shake up the IRR ranking. I know there are certain commodity assumptions in there, but you outlined 50 to 60 locations. I think in the prepared remarks, you mentioned, you know, maybe dipping your toe into it at 25. I just wasn't sure. Is there a role for this to become a bigger part of the program? And how does that work?

Bert: You outlined 50 to 60 locations I think in the prepared remarks, you mentioned, maybe dipping your toe into it in 25 I just wasn't sure.

Bert: Is there a role for this to become a bigger part of the program and how does that work does it pull capital away or is it incremental.

John K. Reinhart: Does it pull capital away? Or is it an incremental, you know, activity if pricing permits it? It's a great question. I mean, we're very excited about Marcellus, and we spent a great deal of time actually talking about it in the script, and it's certainly on the IR deck. Big value component for the company with regard to, you know, the inventory count and the delineation efforts at zero land cost. You know, as we think about this, to your point about returns, we're very pleased with how we're sitting with our investment in the Utica condensate window and the delineation efforts in the Marcellus condensate window. We've got the scoop liquids-rich development, and you've got really high-quality Utica dry gas. So all of these, you can see, I think there's a slide in the investor deck that kind of gives you an approximate return level. These all compete for capital, which is in a very good place; it's a very good place to be for the company. So it gives us a lot more optionality.

Bert: Activity if pricing permits.

Speaker Change: It's a great question I mean, we're very excited about the Marcellus spin it's been a great deal time actually talking about in the script and its certainly in the IR deck big value component for the company with regards to the.

Speaker Change: The inventory count in a delineation efforts at zero planned costs.

Speaker Change: As we think about this to your point about returns we're very pleased with how we're sitting with our investment in the Utica condensate window. The delineation efforts in our Marcellus condensate window, we've got the scoop liquids rich development and you've got really high quality Utica dry gas. So all of these you can see I think theres a slide in the investor deck that kind of gives you an approximate.

Speaker Change: Return level. These all compete for capital, which is in a very good. It's a very good place to be for the company. So it gives us a lot more optionality. So I think on a point forward perspective, you certainly will see and a 24% to 25% a bit more balanced liquids.

John K. Reinhart: So I think on a point forward perspective, you certainly will see into 24, into 25, a bit more balanced liquids, you know, participation within our portfolio. So yes, I would certainly consider, as we talked about, accelerating the Utica acquisitions recently in 25. We talked about accelerating some 25% activity for the Marcellus. You'll see a more balanced scoop liquids-type rich mix within the portfolio of development moving forward than what we've seen historically, just sheerly because of economics. So, great place to be, and it's nice to be able to delineate and spend some money on acreage that you can immediately kind of take the bid to within 12 to 18 months. It really juices the returns, and I'm really pleased with the program moving forward. Great update. Thanks, guys. Thank you. Once again, that's star one if you have a question or comment. And next, we'll go to Tim Rezvan from KeyBank Capital. Please go ahead, Tim.

Speaker Change: Participation within our portfolio. So, yes, I would certainly consider as we've talked about accelerating the Utica.

Speaker Change: Acquisitions recently in 'twenty five we talked about the accelerated to 25 activity for the Marcellus Youll see a more balanced scoop liquids type rich.

Speaker Change: Mix within the portfolio of development moving forward than what we've seen historically, just shirley because of economics, so great place to be and it's nice to be able to delineate and spend some money on acreage that you can immediately kind of take the bit to within 12 to 18 months. It really juices of returns and real pleased with the program moving forward.

Speaker Change: Okay, Great update thanks, guys.

Speaker Change: Thanks.

Speaker Change: Once again Thats Star one if you have a question or comment.

Speaker Change: And next we'll go to Tim resin from Keybanc capital. Please go ahead Ken.

Timothy A. Rezvan: Good morning, folks. When we spoke recently, I know you all said you would balance repurchases against your ability to sort of, you know, find more inventory. So, I was just kind of curious, you had line of sight last year on that 40 to 50 million. How does the ground game look today?

Tim Rezvan: Hey, good morning folks.

Tim Rezvan: Do we spoke recently I know you all said you would balance repurchases against your ability to sort of find.

Tim Rezvan: More inventory. So I was just kind of curious you had line of sight last year on that on that 40% to $50 million. How does the ground game look today are you Opportunistically Opportunistically I guess are you confident you can add more and.

Michael L. Hodges: Are you opportunistically, I guess, confident you can add more? And, you know, I'm just trying to think, as you look, are you agnostic to oil versus gas or are you kind of focused on one area right now? Thanks. Hey, Tim, this is Michael.

Tim Rezvan: I'm just trying to think as your book are you agnostic to oil versus gas or are you kind of focused on one area right now.

Tim Rezvan: Hey, Tim This is Michael Great question. So I think as we look into 2024 the strategy really remains the same. So we've we've said last year that we're going to return substantially all of our free cash flow back to shareholders. After discretionary acreage acquisitions, that's really a similar strategy. This year, we're going to be opportunistic theres still opportunities that we like.

Michael L. Hodges: Great question. So I think as we look into 2024, the strategy really remains the same. So we said last year that we're going to return substantially all of our free cash flow back to shareholders after discretionary acreage acquisitions. You know, that's, that's really a similar strategy this year. We're going to be opportunistic. There are still opportunities that we like out there, but it's certainly getting more competitive, as the basin has gained more attention. But as we look at the opportunity to generate the highest rates of return with our free cash flow, there are two particular categories that always rise to the top of that list.

Speaker Change: There is certainly getting more competitive as the basin has gained more attention, but as we look at the opportunity to generate the highest rates of return with our free cash flow. There's two particular categories that always rise to the top of that that lift and those are our shares and that's also our opportunity to grab future location. So we're not guiding to it.

Michael L. Hodges: And those are our shares. And it's also our opportunity to grab future locations. So we're not guiding to it this year, but it's, it's something that we're always focused on. We do think that it brings tremendous value back to the company when we can add those types of locations. So at the point that we have line of sight, we'll certainly update the market. It's not programmatic.

Speaker Change: This year, it's something that we're always focused on we do think that it's a tremendous value back to the company. When we can add those types of locations. So at the point that we have line of sight, we will certainly update the market. It's.

Speaker Change: It's not programmatic and so we don't provide that guidance. This morning, but we're still very focused on it and I think we're optimistic that we can have similar levels of success, if thats not the case our equity we feel like it's a great place to spend money. So we will continue to go there as well.

Michael L. Hodges: And so we don't provide that guidance this morning, but we're still very focused on it. And I think we're optimistic that we can have similar levels of success. If that's not the case, our equity, we feel like it's a great place to spend money. So we'll continue to go there as well. Okay, okay, I was trying to get a number out of you, but I understand that you're not ready to give one now.

Speaker Change: Okay, Okay, just trying to get a number at it but I understand.

Speaker Change: Youre not ready to give one now so I appreciate the details Michael I guess as my follow up.

John K. Reinhart: So, I appreciate the details, Michael, and it's my follow-up. I kind of wanted to pick up the topic from the prior question on the ducks. You mentioned having strategic ducks. You mentioned the ability to defer or accelerate as needed in 2024. So I guess, you know, when you look at gas prices today at sub $2, you know, what would keep you from, you know, joining your neighbor at OKC and kind of letting production decline? You know, things seem pretty bleak here in the near term. So, you know, what would you look to do to actually do more of a strategic deferral volume? Yeah, that's a good question.

Speaker Change: I don't wanted to pick up the topics on the prior question on the Ducks, you mentioned, having strategic Ducks, you mentioned the ability to defer or accelerate as needed in 2024. So I guess when you look at gas prices today at sub $2.

Speaker Change: What what would keep you from.

Speaker Change: Joining your neighborhood okc and kind of lead production decline.

Speaker Change: <unk> seen pretty bleak here in the near term so.

Speaker Change: Sure.

Speaker Change: What would you look to to actually do more of a strategic deferral of volumes.

Speaker Change: Yes, that's a good question I think whenever we look at the company and the scale and size in our in our footprint and quite frankly, the quality of <unk>.

John K. Reinhart: I think whenever we look at the company and the scale and size and our footprint and, quite frankly, the quality of assets and the execution, we assess the PV and the returns on our total development program. And, I mean, if you kind of take a look at where we stand, we kind of wanted to come out with a maintenance-level program that was down the fairway with the ability to toggle down or toggle up without But I'll tell you is, so to the question of what it would take to decline volumes, I would say we look at them on an economic basis. So if we're looking at, for instance, pricing that's materially lower, it turns out to be materially lower with upside, you know, a quarter later or two quarters later, that's certainly something we're going to consider with regard to the value that the company will realize on developing those assets. So it's a real-time kind of assessment as we look at the program, and it really will depend on where we are in the commodity cycle should we choose to do something with regard to deferrals or acceleration. And it's very nice, actually, to have that toggle switch.

Speaker Change: Assets in the execution.

Speaker Change: We assess the PV and the returns on our total development program.

Speaker Change: And I mean, if you kind of take a look at it.

Speaker Change: Where we stand we kind of wanted to come out with a maintenance level program that was down the fairway with the ability to toggle down or toggle up without but I will tell you is the question of what it would take to decline volumes I would say, we look at them on an economic basis. So if we're looking at for instance, pricing thats material.

Speaker Change: Lower it turns out to be material lower was upsized a quarter later or two quarters. Later, that's certainly something we're going to consider with regards to the value that the company will realize on developing those assets. So it's a real time kind of assessment as we look at the program and it really will depend on where we are in the commodity cycle should we choose to do so.

Speaker Change: Something with regards to deferrals already we're acceleration.

Speaker Change: And it's very nice actually to have that toggle I mean, it's it may be a bad thing that we are in the environment that we're asking to consider those things, but what I will tell you is not having the the requirements of onerous nbc's ftes drilling to hold acreage I mean, these are all things that.

John K. Reinhart: I mean, it's maybe a bad thing that we're in the environment that we're asking to consider those things, but what I'll tell you is, not having the requirements of onerous NVCs, FTs, drilling to hold acreage, I mean, these are all things that, you know, that we are very fortunate not to be in a place to have to consider whenever we think about the cadence and control, and what And we're also very mindful of just the cadence of production and making sure that, you know, it flows year to year without any kind of dramatic decline. So hopefully that kind of covers it for you.

Speaker Change: We are very fortunate not to be in a place to have to consider whenever we think about the cadence and control and what we are going to deliver from a production standpoint is truly based on PV and economics and returns.

Speaker Change: We're also very mindful of just see the cadence of the production and making sure that it.

Speaker Change: Flows year to year without any kind of dramatic declines so hopefully that kind of buckets. It for you I think it's just more of an economic assessment real time as we go through the year and if we see some potential with the.

John K. Reinhart: I think it's just more of an economic assessment real-time as we go through the year. And if we see some potential with, you know, a quarter deferment, let's say, on a turning line where we can add some PV to those assets, that's certainly something that we're going to consider doing. Hey, thanks, John. I appreciate all the color.

Speaker Change: Quarter Deferment, let's say on a turn in line, where we can add some TV to those assets is certainly something that we're going to consider doing.

Speaker Change: Okay. Thanks, John I appreciate all the color.

Speaker Change: Yes, Sir thanks.

Operator: Thank you, and we'll take our next question from Jacob Roberts from TPH. Please go ahead, Jacob. Warning.

Speaker Change: Thank you and we will take our next question from Jacob <unk> from Tpa. Please go ahead Jacob.

Jacob: Good morning.

Jacob Phillip Roberts: Morning. Looking at slides 23 and 24, is there anything you could point to in, may be well-designed methodology that is driving the outperformance relative to the peer group. Yes, well, what I'll point you to is, I think, coming in here about a year ago, historically, the guys have done a really good job here at being very aggressive on completion intensities. So as we looked across and assessed the development plan and development program, spacing was adjusted a bit wider, and the teams really were aggressively stimulating those, and I've been very clear for the past year where our focus was, was not going backwards on well productivity and not going backwards on EURs, as a matter of fact, taking all those advantages of aggressive stimulations and moderating spacing and actually getting our capital efficiencies up and our capital costs down and our expenses down.

Jacob: Hey, good morning Jacob.

Jacob: Looking at Slide 23, and 24 is there anything you could point to in terms of.

Jacob: Maybe well designer methodology that is driving the outperformance relative to the peer group.

Jacob: Yes.

Jacob: Yes.

Jacob: Yes, well what I point, you to is I think.

Jacob: Coming in here about a year ago historically, the guys have done a good really good job here at being very aggressive on completion intensity. So as we look to cross and assess the development plan and development program.

Jacob: Spacing was adjusted.

Jacob: A bit wider and the teams really were aggressively stimulating those and I've been very clear for the past year, where our focus was was not going backwards on well productivity and not going backwards on EUR as a matter of fact, taking all of those advantages of aggressive stimulations, and moderating spacing and actually getting our capital efficiencies up and our capital call.

Jacob: Costs down in our expenses down so.

Jacob Phillip Roberts: So we're really pleased to have a solid footprint and very good rock, and with that asset, if you go and employ a very aggressive stimulation program and you do it fairly efficiently from a capital perspective, that really just leads to overall economic results, and the well productivity results you're seeing on these slides are certainly driven by asset quality and spacing and stimulation aggressiveness from the teams. And Matt, if you have anything else to add, Yeah, no, I think you nailed it, John.

Jacob: We're real pleased to have a solid footprint in very good rock.

Jacob: And with that asset if you go and employ a very aggressive stimulation program and you do it fairly efficiently from a capital perspective that really just leads to overall economic results and the well productivity results Youre seeing on these slides is certainly driven by asset quality and spacing and stimulation aggressiveness from the teams and Matt If you have anything else to add.

Matt: Yes, no I think you nailed it John is certainly a little bit different developments in some of our peers, which we think adds tremendous value to the company and then we have talked a few times about the pressure managed.

John K. Reinhart: It's certainly a little bit different development than some of our peers, which we think adds tremendous value to the company, and then we have talked a few times about the pressure managed flowbacks and kind of lower for longer IP rates, which we believe helps with pressure maintenance over time and also ultimately recovery. So all of those things feel like they put us in a good position in each basin to kind of be peer leaders there. Thanks; I appreciate that. Staying on the same topic, in your prepared remarks, you mentioned applying learning to the scoop. I'm curious about the timeline before you kind of settle in on a development program or the methodology that you think works going forward, and is this in terms of applying completion design, flow back? I would like to explore those aspects.

Matt: Flow backs and kind of lower for longer IP rates, which which we believe helps us pressure maintenance over time and also the recovery. So all of those things we feel like put us in a good position in each basin, it's going to be peer leading there.

Speaker Change: Thanks appreciate that.

Speaker Change: Staying on the same topic in the prepared remarks, you mentioned applying learnings to the scoop.

Speaker Change: Just curious on the timeline before you kind of settle in on a development program or the or the methodology that you think works going forward.

Speaker Change: In terms of applying completion design flowback.

Speaker Change: We'd like to explore those aspects please.

Jacob Phillip Roberts: Yeah, this is Matt again. I'll take that, and John can add comments if he has any. You know, we're in the middle of kind of restarting our SCOOP program development. We did kind of two wells early last year, and with the new team in place, it kind of put the pause on that to focus on, you know, Marcello's delineation, and kind of get our arms wrapped around that asset.

Speaker Change: Yes. This is Matt again, I'll take that and John can add comments if he has any.

Matt: We're in the middle of kind of restarting up our Scoop program development, we did kind of two wells early last year and with the new team in place to kind of put the pause on that to focus on Marcellus delineation and kind of get our get our arms wrapped around that asset.

Matthew H. Rucker: You know, in that review this year, a lot of good things have come out of it, a lot of technical reviews, the team's been working pretty diligently on understanding how we best get repeatability in this basin from an execution standpoint. And so, you know, right now, we're on that first three-well pad. We're kind of right in the middle of that development, trialing some new things that we've kind of taken from Utica and applied here. So, you know, I would expect us throughout the next quarter or two to be able to start sharing some of those progress updates. But ultimately, for us, if we can kind of execute on that plan this year and kind of prove that repeatability, it just de-risks our program and the way we look at that asset for future planning on drilling cadence in that basin. If that helps, I totally forgot the time.

Matt: In our view this year a lot of good things have come out of it a lot of technical reviews team has been working pretty diligently on understanding how do we best get repeatability. This basin from an execution standpoint, and so right now we're on that first three well pad were kind of right smack in the middle of that development Trialing, some new things that we've kind of taken from the Utica.

Matt: And apply here so.

Speaker Change: I would expect for us throughout the next quarter or two to be able to start sharing some of those progress updates.

Speaker Change: But ultimately for us if we can kind of execute on that plan. This year and kind of prove that repeatability is just derisk our program and the way we look at that asset for future planning on drilling cadence in that basin if that helps.

Speaker Change: Absolutely I appreciate the time.

Speaker Change: Yes.

John K. Reinhart: Thank you, and I'll turn the floor to John Reinhart for closing. Thanks, everybody, for participating in our call. Very pleased with the progress from the teams in 2023 and the performance, and very happy with rolling out our plan for a great capital fishing 2024 program. Looking forward to our next call to share some results from the first quarter. Thanks, and have a great day! Thank you. Ladies and gentlemen, this does conclude today's teleconference. We thank you for your participation. You may disconnect your lines at this time and have a great day. (inaudible)

Speaker Change: Thank you and now I'll turn the floor to John Reinhart for closing remarks.

John Reinhart: Yes, thanks, everybody for participating on our call very pleased with the progress from the teams in 2023 and the performance in <unk>.

John Reinhart: Happy with Rolling out our plan for a very capital efficient 2024 program looking forward to our next call to share some results from from the first quarter, Thanks and have a great day.

Speaker Change: Thank you ladies and gentlemen, this does conclude today's teleconference. We thank you for your participation you may disconnect. Your lines at this time and have a great day.

John Reinhart: Okay.

John Reinhart: Yeah.

Speaker Change: Yes.

Speaker Change: Okay.

Speaker Change: Yeah.

Speaker Change: Okay.

Speaker Change: [music].