Q4 2024 SM Energy Co Earnings Call - Pre-Recorded
In our 2025 operating plan before we get started on our prepared remarks, I remind you that our discussion today will include forward looking statements I direct you to slide two of the accompanying slide deck page eight of the accompanying earnings release and the risk factors section of our most recently filed 10-K, which describe risk associated.
I direct you to slide two of the accompanying slide deck page eight of the accompanying earnings release and the risk factors section of our most recently filed 10-K, which describe risk associated with forward looking statements that could cause actual results to differ we will also discuss non-GAAP measures and metrics definitions and.
Operator: include forward-looking statements. I direct you to slide two of the accompanying slide deck, page eight of the accompanying earnings release, and the risk factors section of our most recently filed 10-K, which describe risks associated with forward-looking statements that could cause actual results to differ.
Operator: We will also discuss non-GAAP measures and metrics. Definitions and reconciliations of non-GAAP measures and metrics to the most directly comparable GAAP measures and discussion of forward-looking non-GAAP measures can be found in the back of the slide deck and earnings release.
With forward looking statements that could cause actual results to differ we will also discuss non-GAAP measures and metrics definitions and reconciliations of non-GAAP measures and metrics to the most directly comparable GAAP measures and discussion of forward looking non-GAAP measures can be found in the back of the slide deck and earnings release.
Speaker Change: <unk> of non-GAAP measures and metrics to the most directly comparable GAAP measures and discussion of forward looking non-GAAP measures can be found in the back of the slide deck and earnings release, today's prepared remarks will be given by our president and CEO Herb Vogel, our C O O Bath Mcdonald and our CFO weight per cell I will.
Jennifer Samuels: Today's prepared remarks will be given by our President and CEO, Herb Vogel, our COO, Beth McDonald, and our CFO, Wade Purcell.
Speaker Change: Today's prepared remarks will be given by our president and CEO Herb Vogel, our C O O Beth Mcdonald's and our CFO weighed herself I will now turn the call over to her.
Now I'll turn the call over to her.
Herbert Vogel: I will now turn the call over to Herb.
Speaker Change: Thank you Jennifer.
Jennifer: Good afternoon, everyone and thank you for your interest in SM energy will start on slide five.
Herbert Vogel: Thank you, Jennifer. Good afternoon, everyone, and thank you for your interest in SM Energy. We'll start on slide five.
Jennifer: 2024 was an outstanding year for our company. So we have a lot to cover today, we exceeded expectations and delivering on our three strategic objectives, and we ended the year, a notably larger operator with the addition of Uinta basin assets.
Speaker Change: Thank you Jennifer.
Herbert Vogel: 2024 was an outstanding year for our company, so we have a lot to cover today. We exceeded expectations in delivering on our three strategic objectives and we ended the year a notably larger operator with the addition of UN2 Basin assets. Execution in 2024 supported record oil production, record year-end net proved reserves, and the highest level of dividends paid to stockholders. We are starting 2025 well-positioned with greater scale, a strong balance sheet, and an expanded SM Energy team capable of an even better 2025. We are excited about our plans for 2025, and we'll spend most of the time today looking ahead.
Speaker Change: Good afternoon, everyone and thank you for your interest in SM energy will start on slide five.
Speaker Change: 2024 was an outstanding year for our company. So we have a lot to cover today.
Speaker Change: We exceeded expectations and delivering on our three strategic objectives, and we ended the year, a notably larger operator with the addition of Uinta basin assets.
Jennifer: Execution in 2024 supported record oil production record year end net proved reserves and the highest level of dividends paid to stockholders.
Speaker Change: Execution in 2024 supported record oil production record yearend net proved reserves and the highest level of dividends paid to stockholders.
Jennifer: We are starting 2025, well positioned with greater scale, a strong balance sheet and an expanded SM energy team capable of an even better 2025.
Speaker Change: We are starting 2025, well positioned with greater scale, a strong balance sheet and an expanded SM energy team capable of an even better 2025.
We are excited about our plans for 2025, and we will spend most of the time today looking ahead.
Jennifer: I'd like to start with some big picture thoughts, perhaps helpful to the generalist investors listening in.
Speaker Change: We are excited about our plans for 2025, and we will spend most of the time today looking ahead.
Herbert Vogel: I'd like to start with some big picture thoughts, perhaps helpful to the generalist investors listening in. I don't think there is any dispute that energy and electricity demand are growing substantially for the foreseeable future. Whether it be to support better health and prosperity in developing nations, or the burgeoning needs of technology here at home, access to reliable and affordable energy is a growing necessity. The latest EIA, International Energy Outlook, forecasts primary energy demand to increase by up to 50% by 2050 and electricity demand to grow even more. More recently, we've seen even higher projections from Wall Street.
Jennifer: I don't think theres any dispute that energy and electricity demand are growing substantially for the foreseeable future whether it be to support better health and prosperity in developing nations or the burgeoning needs of technology here at home access to reliable and affordable energy is a growing necessity.
Speaker Change: I'd like to start with some big picture thoughts, perhaps helpful to the generalist investors listening in.
Speaker Change: I don't think theres any dispute that energy and electricity demand are growing substantially for the foreseeable future whether it be to support better health and prosperity in developing nations or the burgeoning needs of technology here at home access to reliable and affordable energy is a growing necessity.
Jennifer: The latest EIA International energy outlook forecast primary energy demand to increase by up to 50% by 2050 and electricity demand to grow even more more recently, we've seen even higher projections from wall Street.
Speaker Change: The latest EIA International energy outlook forecast primary energy demand to increase by up to 50% by 2050 and electricity demand to grow even more more recently, we've seen even higher projections from wall Street.
Jennifer: Producers of energy in North America are well positioned to responsibly support the huge growth with ample natural resources plus abroad and collective effort to identify an employee technological advancements that ensure energy is produced in the safest and cleanest manner.
Herbert Vogel: Producers of energy in North America are well positioned to responsibly support this huge growth with ample natural resources, plus a broad and collective effort to identify and employ technological advancements that ensure energy is produced in the safest and cleanest manner. At SM Energy, we set top-tier targets every year for safety and emissions, seeking to remain leaders among our peers in responsibly producing energy, while at the same time optimizing our operations plan for long-term, sustainable profitability. We differentiate ourselves by focusing on high-quality, low-breakeven assets and employing our differential team of geoscientists, engineers, and data analysts to optimize well-performance and expand our portfolio organically.
Speaker Change: Producers of energy in North America are well positioned to responsibly support the huge growth with ample natural resources plus abroad and collective effort to identify an employee technological advancements that ensure energy is produced in the safest and cleanest manner.
Speaker Change: At SM energy, we said top tier targets every year for safety and emissions seeking to remain leaders among our peers and responsibly producing energy while at the same time optimizing our operations plan for long term sustainable profitability, we differentiate ourselves by focusing on high quality low break even.
SM Energy: At SM energy, we said top tier targets every year for safety and emissions seeking to remain leaders among our peers and responsibly producing energy while at the same time optimizing our operations plan for long term sustainable profitability.
Speaker Change: Assets and employing our differential team of Geoscientists engineers and data analysts to optimize well performance and expand our portfolio organically.
SM Energy: We differentiate ourselves by focusing on high quality low breakeven assets and employing our differential team of Geoscientists engineers and data analysts to optimize well performance and expand our portfolio organically.
Speaker Change: Energy is an exciting place to invest delivers among the highest yields across sectors.
Herbert Vogel: Energy is an exciting place to invest, delivers among the highest yields across sectors, and in a current environment of uncertainty, offers comparatively lower risk given strong balance sheets and pervasive capital discipline. We hope you like our story.
Speaker Change: And in a current environment of uncertainty offers comparatively lower risks given strong balance sheets and pervasive capital discipline.
SM Energy: Energy is an exciting place to invest delivers among the highest yields across sectors and in the current environment of uncertainty offers comparatively lower risks given strong balance sheets and pervasive capital discipline.
Speaker Change: We hope you like our story to sum it up again it is quite simple we are a premier operator of top tier assets that means we have a truly differential technical team capable of first identifying where the most economic hydrocarbons can be produced second optimizing field developments to maximize financial returns and third.
Herbert Vogel: To sum it up again, it is quite simple. We are a premier operator of top tier assets. That means we have a truly differential technical team capable of first, identifying where the most economic hydrocarbons can be produced. Second, optimizing field developments to maximize financial returns. And third, operating our developments in a safe, cost effective and environmentally sound manner. This differential capability that we have clearly demonstrated was not built overnight. Rather, it is the result of sustained focus and investment in people and leadership development over many years. If you invest in SM Energy, you are investing in a company that can create opportunities and expand inventory over the long term, not a company that just acquires production.
SM Energy: We hope you like our story.
SM Energy: To sum it up again it is quite simple we are a premier operator of top tier assets that means we have a truly differential technical team capable of first identifying where the most economic hydrocarbons can be produced.
Speaker Change: Operating our developments in a safe cost effective and environmentally sound manner.
SM Energy: Optimizing field developments to maximize financial returns and third operating our developments in a safe cost effective and environmentally sound manner.
Speaker Change: This differential capability that we have clearly demonstrated was not built overnight.
Speaker Change: It is the result of sustained focus and investment in people in leadership development over many years.
This differential capability that we have clearly demonstrated was not built overnight rather it is the result of sustained focus and investment in people in leadership development over many years.
Speaker Change: If you invest in SM energy you are investing in a company that can create opportunities and expand inventory over the long term not accompanying that just requires production.
SM Energy: If you invest in SM energy you are investing in a company that can create opportunities and expand inventory over the long term not accompanying that just requires production.
Speaker Change: Turning to slide six and looking forward now our 2025 strategy and operational plan is intended to support long term profitability and value creation by focusing on operational execution returning capital to stockholders.
Herbert Vogel: Turning to slide six, and looking forward now, our 2025 strategy and operational plan is intended to support long-term profitability and value creation by focusing on operational execution, returning capital to stockholders, and expanding our portfolio of top-tier economic drilling inventory.
SM Energy: Yeah.
SM Energy: Turning to slide six and looking forward now our 2025 strategy and operational plan is intended to support long term profitability and value creation by focusing on operational execution, returning capital to stockholders and expanding our portfolio of top tier economic drilling inventory.
Speaker Change: And expanding our portfolio of top tier economic drilling inventory.
Speaker Change: With those objectives in mind I'll turn the call over to Beth to give you an update on our regional operations and introduce you to our 2025 operational player.
Beth Mcdonald: With those objectives in mind, I will turn the call over to Beth to give you an update on our regional operations and introduce you to our 2025 operational plan.
With those objectives in mind I'll turn the call over to Beth to give you an update on our regional operations and introduce you to our 2025 operational player Beth.
Speaker Change: Yes.
Speaker Change: We have an exciting year unfolding in 2025 with the addition of the Utah assets, we expect to generate and I'll use round numbers more than 20% production growth and more than 30% oil production growth year over year, we expect to realize this step change in scale, while maintaining our high caliber operations.
Beth Mcdonald: Beth?
Beth Mcdonald: Thank you, Herb. We have an exciting year unfolding in 2025. With the addition of the Utah assets, we expect to generate, and I'll use round numbers, more than 20% production growth and more than 30% oil production growth year over year. We expect to realize this step change in scale while maintaining our high caliber operational execution. First and foremost, we are diligently working through integration of our new Utah asset, which is no small task, while welcoming our 83 new employees from Xeon Altamont to the SM team. You cannot put this effort into a spreadsheet, but our comprehensive efforts to integrate all aspects of the business in a timely manner are a testament to our people and being a premier operator.
Beth Mcdonald: Thank you herb.
Beth Mcdonald: We have an exciting year unfolding in 2025 with the addition of the Utah assets, we expect to generate and I'll use round numbers more than 20% production growth and more than 30% oil production growth year over year, we expect to realize this step change in scale, while maintaining our high caliber operational execution.
Speaker Change: <unk> execution.
Speaker Change: First and foremost we are diligently working through integration of our new Utah asset, which is no small task while welcoming our 83, new employees from Axion Altamont to the <unk> you can answer this effort into a spreadsheet, but our comprehensive efforts to integrate all aspects of the business in a timely manner.
Beth Mcdonald: First and foremost we are diligently working through integration of our new Utah asset, which is no small task.
Beth Mcdonald: Welcoming our 83, new employees from Axion Altamont to the SMB team.
Speaker Change: Testament to our people and being a premier operator.
Beth Mcdonald: You can answer this effort into a spreadsheet, but our comprehensive efforts to integrate all aspects of the business in a timely manner are a testament to our people and being a premier operator.
Speaker Change: Before I turn to the 2025 plan, let's look at yearend reserves on slide seven.
Beth Mcdonald: Before I turn to the 2025 plan, let's look at year-end reserves on slide 7. Our record year-end estimated net proof reserves totaled 678 million barrels of oil equivalent. Reserves grew 12% from year-end 2023 and oil reserves grew 29%. This chart demonstrates our track record in replacing and growing reserves over time, noting that we produced 222 million barrels of oil equivalent for the years 2021 through 2024. Year-end 2024 reserves were estimated at SEC prices as shown, which resulted in a standardized measure value of $7.3 billion and a pre-tax PB10 value of $8.4 billion.
Speaker Change: Our record year end estimated net proved reserves totaled 678 million barrels of oil equivalent.
Beth Mcdonald: Before I turn to the 2025 plan, let's look at yearend reserves on slide seven.
Speaker Change: Service grew 12% from year end 2023, and oil reserves grew 29%.
Beth Mcdonald: Our record year end estimated net proved reserves totaled 678 million barrels of oil equivalent.
Speaker Change: This chart demonstrates our track record and replacing and growing reserves over time, noting that we produced 222 million barrels of oil equivalent for the years 2021 through 2024.
Beth Mcdonald: Reserves grew 12% from year end 2023, and oil reserves grew 29%.
Beth Mcdonald: This chart demonstrates our track record and replacing and growing reserves over time, noting that we produced 222 million barrels of oil equivalent for the years 2021 through 2024.
Speaker Change: Year end 2020 for reserves were estimated at SEC prices as shown on which resulted in a standardized measure value of $7 3 billion and a pretax PV 10 value of $8 4 billion.
Beth Mcdonald: Year end 2020 for reserves were estimated at SEC prices as shown which resulted in a standardized measure value of $7 3 billion.
Speaker Change: Okay.
Speaker Change: Turning to slide eight and inventory.
Beth Mcdonald: Turning to slide 8, Inventory. As a reminder, since inventory data across the sector is not standardized or necessarily comparable, our inventory is composed of nearly 90% 3P reserves, and all wells within our 3P reserves estimate are economic, have an area-specific type curve, defined lateral length, specific well spacing, and an assigned spot on the latest development schedule. Simply put, we have a long-duration, high-quality, low-breakeven inventory setting SM apart from many of our SMITCAP peers. With the addition of the Utah acquisition, we have a higher pace of drilling, yet continue to have approximately 10 plus years inventory with an impressive projected average return over that time period.
Beth Mcdonald: And a pretax PV 10 value of $8 4 billion.
Speaker Change: As a reminder, since inventory data across the sector is not standardized or unnecessarily comparable our inventory is composed of nearly 90% <unk> reserves.
Beth Mcdonald: Turning to slide eight and inventory.
Beth Mcdonald: As a reminder, since inventory data across the sector is not standardized or unnecessarily comparable our inventory is composed of nearly 90% <unk> reserves and all wells within our three P reserves estimate are economic.
Speaker Change: All wells within our three P reserves estimate are economic have an area specific type curve define lateral link specific well spacing and then assign spot on the latest development schedule simply.
Speaker Change: Simply put we have a long duration high quality low breakeven inventory setting us apart from many of our smid cap peers.
An area specific type curve define lateral link specific well spacing and an ensign spot on the latest development schedule.
Speaker Change: With the addition of the Utah acquisition, we have a higher pace of drilling you continue to have approximately 10 plus years inventory with an impressive projected average return over that time period.
Beth Mcdonald: Simply put we have a long duration high quality low breakeven inventory setting SM apart from many of our smid cap peers.
Beth Mcdonald: With the addition of the Utah acquisition, we have a higher pace of drilling you continue to have approximately 10 plus years inventory with an impressive projected average return over that time period.
Speaker Change: As herb and we'd have emphasized in prior years. Our operational plan is the first year of a three year plan intended to optimize free cash flow over time as previously.
Beth Mcdonald: As Herb and Wade have emphasized in prior years, our operational plan is the first year of a three-year plan intended to optimize free cash flow over time. As previously discussed with the addition of Utah, we will not retain last year's steep growth trajectory from the previous operator, and instead we will seek to optimize the allocation of capital across our three core assets. On slide 9, the 2025 capital program is expected to approximate $1.3 billion excluding acquisitions and before certain non-operated activity that is yet to be confirmed and approved. High level, we expect to allocate drilling and completion capital approximately 35 to 40% to Midland, 35 to 40% to Utah, where we have margins that are very comparable, and 25% to South Texas.
Beth Mcdonald: As herb and we'd have emphasized in prior years. Our operational plan is the first year of a three year plan intended to optimize free cash flow over time.
Speaker Change: As we discussed with the addition of Utah, we will not retain last year's steep growth trajectory from the previous operator and.
Speaker Change: And instead, we will seek to optimize the allocation of capital across our three core assets.
Beth Mcdonald: As previously discussed with the addition of Utah, we will not retain last year's steep growth trajectory from the previous operator and.
Speaker Change: On slide nine the 2025 capital program is expected to approximate $1 3 billion, excluding acquisitions and before certain non operated activity that is yet to be confirmed and approved.
Beth Mcdonald: And instead, we will seek to optimize the allocation of capital across our three core assets.
Beth Mcdonald: On slide nine the 2025 capital program is expected to approximate $1 3 billion, excluding acquisitions and before certain non operated activity that is yet to be confirmed and approved.
Speaker Change: High level, we expect to allocate drilling and completion capital approximately 35% to 40% to Midland, 35% to 40% to Utah, where we have margins that are very comparable.
Beth Mcdonald: High level, we expect to allocate drilling and completion capital approximately 35% to 40% to Midland, 35% to 40% to Utah, where we have margins that are very comparable.
Speaker Change: And 25% to South Texas.
Speaker Change: <unk> makes up about 90% of the budget with the remainder for facilities land and other and.
Beth Mcdonald: DC&E makes up about 90% of the budget, with the remainder for facilities, land, and other. In 2025, we expect to drill approximately 105 net wells and complete approximately 150 net wells. facilities capital will contribute to continuing to expand oil handling capacity in South Texas.
Beth Mcdonald: And 25% to South Texas.
Speaker Change: In 2025, we expect to drill approximately 105 net wells and complete approximately 150 net wells.
Beth Mcdonald: Do you see any makes up about 90% of the budget with the remainder for facilities land and other and.
<unk> capital will contribute to continuing to expand oil handling capacity in south Texas.
Beth Mcdonald: In 2025, we expect to drill approximately 105 net wells and complete approximately 150 net wells.
Speaker Change: On slide 10 activity by area is generally expected to be as follows.
Beth Mcdonald: <unk> capital will contribute to continuing to expand oil handling capacity in south Texas.
Beth Mcdonald: On slide 10, activity by area is generally expected to be as follows. In Utah, we will pursue a combination of delineation and development in order to demonstrate the value of our new assets. Our focus is on creating value in the lower cube and advancing our understanding of the upper and deep cubes. We expect to drill approximately 35 net wells and complete approximately 50 net wells. The rig count will decrease from three at the beginning of the year to two at year-end while running one frat crew. In Midland, we will continue delineation work around our Sweetie Peck extension in the Woodford Barnett and up in Klondike while progressing our established development program.
Speaker Change: Can you tell we will pursue a combination of delineation and development in order to demonstrate the value of our new asset.
Beth Mcdonald: On slide 10 activity by area is generally expected to be as follows.
Speaker Change: Our focus is on creating value in a lower cube and advancing our understanding of the upper indeed cubes.
Beth Mcdonald: Can you tell we will pursue a combination of delineation and development in order to demonstrate the value of our new assets.
Speaker Change: We expect to drill approximately 35 net wells and complete approximately 50 net wells the rig count will decrease from three at the beginning of the year to two at year end, while running one frac crew.
Beth Mcdonald: Our focus is on creating value in a lower cube and advancing our understanding of the upper indeed cubes.
Beth Mcdonald: We expect to drill approximately 35 net wells and complete approximately 50 net wells the rig count will decrease from three at the beginning of the year to two at year end, while running one frac crew.
Speaker Change: And Midland We will continue delineation work around our Sweetie Peck extension in the Woodford Barnett and up and Klondike, while progressing our established development program.
Beth Mcdonald: And Midland We will continue delineation work around our Sweetie Peck extension in the Woodford Barnett and up and Klondike, while progressing our established development program.
Speaker Change: In Sweetie Peck, our subsurface understanding and operational execution continue to excel.
Beth Mcdonald: and Sweetie Peck, our subsurface understanding and operational execution continue to excel. Our Woodford Barnett welds are outperforming our peers in the area and we will continue to drive value for the company through this delineation. The plan is to run four rigs through the summer and two rigs at year-end with one frack crew. As a result, we expect to drill approximately 40 net wells and complete approximately 60 net wells. South Texas will be a continuation of our Austin Chalk Development Plan with one to two rigs and a partial frac group. We have very strong returns from our recent Austin Chalk Laterals, and we will continue to further our executional efficiencies and our off-azimuth welds.
Speaker Change: Our Woodford Barnett wells are outperforming our peers in that area.
Beth Mcdonald: In Sweetie Peck, our subsurface understanding and operational execution continued to excel.
Speaker Change: And we will continue to drive value for the company through this delineation.
Speaker Change: The planets around four rigs through the summer and two rigs at year end with one Frac crew.
Beth Mcdonald: Our Woodford Barnett wells are outperforming our peers in that area.
Beth Mcdonald: And we will continue to drive value for the company through this delineation.
Speaker Change: As a result, we expect to drill approximately 40 net wells and complete approximately 60 net wells.
Beth Mcdonald: The plan is around four rigs through the summer and two rigs at year end with one Frac crew.
Speaker Change: South, Texas will be a continuation of our Austin chalk development plan with one to two rigs and a partial frac crews.
Beth Mcdonald: As a result, we expect to drill approximately 40 net wells and complete approximately 60 net wells.
Speaker Change: We have very strong returns from our recent Austin chalk laterals, and we will continue to further our execution efficiencies and our off azimuth wells.
Beth Mcdonald: South, Texas will be a continuation of our Austin chalk development plan with one to two rigs and a partial frac crews.
Beth Mcdonald: We have very strong returns from our recent Austin chalk laterals, and we will continue to further our execution efficiencies and our off azimuth wells.
Here, we expect to drill approximately 30 net wells and complete approximately 40 net wells.
Beth Mcdonald: Here we expect to drill approximately 30 net wells and complete approximately 40 net wells.
Speaker Change: 2025 capital expenditures are in line with 2024 at $1 3 billion.
Beth Mcdonald: Here, we expect to drill approximately 30 net wells and complete approximately 40 net wells.
Beth Mcdonald: 2025 capital expenditures are in line with 2024 at $1.3 billion, yet include a 10% increase in the number of net completions and an approximate 20% increase in production.
Yes include a 10% increase in the number of net completions and an approximate 20% increase in production.
Beth Mcdonald: 2025 capital expenditures are in line with 2024 at $1 3 billion.
Speaker Change: Now turning to slide 11.
Speaker Change: Yes include a 10% increase in the number of net completions and an approximate 20% increase in production.
Beth Mcdonald: Now turning to slide 11. The key to optimizing free cash flow is capital efficiency. The 2025 plan is designed to maximize returns from all three of our assets with focused drilling execution and streamlined frac operations for further efficiency. Here we highlight capital efficiencies realized at our Texas operations. Looking at progress from 2022 through 2024, we see that in Midland, the team has improved drilling footage per day by 20% and nearly doubled efficiencies and completion. Our execution teams are currently drilling four-mile laterals in Sweetie Peck. As a reminder, SM was the first operator in the Midland Basin to drill and complete a four-mile lateral, and our drilling team finished the first wellness development faster than planned.
Speaker Change: Key to optimizing free cash flow with capital efficiency. The 2025 plan is designed to maximize returns from all three of our assets with focus drilling execution and streamline frac operations for further efficiency.
Beth Mcdonald: Now turning to slide 11.
Beth Mcdonald: Kita optimizing free cash flow with capital efficiency. The 2025 plan is designed to maximize returns from all three of our assets with focus drilling execution and streamline frac operations for further efficiency.
Here, we highlight capital efficiencies realized at our Texas operations.
Speaker Change: Looking at progress from 2022 through 2024, we see that in Midland. The team has improved drilling footage per day by 20% and nearly doubled efficiencies and completions.
Beth Mcdonald: Here, we highlight capital efficiencies realized at our Texas operations.
Beth Mcdonald: Looking at progress from 2022 through 2024, we see that in Midland. The team has improved drilling footage per day by 20% and nearly doubled efficiencies and completions.
Speaker Change: Our execution teams are currently drilling four mile laterals in Sweetie Peck.
Speaker Change: As a reminder, <unk> was the first operator in the Midland basin to drill and complete a four mile lateral and our drilling team finished the first wellness development faster than planned.
Beth Mcdonald: Our execution teams are currently drilling four mile laterals in Sweetie Peck.
Beth Mcdonald: As a reminder, <unk> was the first operator in the Midland basin to drill and complete a four mile lateral and our drilling team finished the first wellness development faster than planned.
Speaker Change: This exceptional execution continues to drive capital efficiency in our Midland asset.
Beth Mcdonald: This exceptional execution continues to drive capital efficiency in our Midland asset. Same story in South Texas, where we improved drilling by 27% and completion efficiency by 18%. We continue to utilize a combination of our subsurface understanding and operational excellence to drive step changes in our performance.
Speaker Change: Same story in South, Texas, where we improved drilling by 27% and completion efficiency by 18%. We continue to utilize a combination of our subsurface understanding on operational excellence to drive step changes in our performance.
Beth Mcdonald: This exceptional execution continues to drive capital efficiency in our Midland asset.
Beth Mcdonald: Same story in South, Texas, where we improved drilling by 27% and completion efficiency by 18%.
Beth Mcdonald: We continue to utilize a combination of our subsurface understanding on operational excellence to drive step changes in our performance.
Speaker Change: On slide 12, we are highlighting our sand mine in our Utah asset the mine adds significant value to our operation and provides low cost local sand to enhance our returns.
Beth Mcdonald: On slide 12, we are highlighting our sand mine and our Utah asset. The mine adds significant value to our operation and provides low-cost local sand to enhance our return. In 2024, the mine produced over a half million tons of sand to use in our operation. We shut down for several weeks during the height of the winter season as planned, but our completions crews have been so efficient that we are restarting our mining operations early. We are very excited about this operation and the value it's providing our team.
Beth Mcdonald: On slide 12, we are highlighting our sand mine in our Utah asset the mine adds significant value to our operation and provide low cost local fans to enhance our returns.
In 2020 for the mine produced over one 5 million tons of sand to use in our operations.
Speaker Change: We shut down for several weeks during the height of the winter season as planned, but our completions crews have been so efficient that we are restarting our mining operations. Early we are very excited about this operation and the value it's providing our team.
Beth Mcdonald: In 2020 for the mine produced over a half million tons of sand to use in our operations.
Beth Mcdonald: We shut down for several weeks during the height of the winter season as planned, but our completions crews have been so efficient that we are restarting our mining operations. Early we are very excited about this operation and the value it's providing our team.
Speaker Change: Moving to slide 13.
Speaker Change: Optimizing capital efficiency means achieving high return wells with superior well performance here.
Beth Mcdonald: Moving to slide 13. Optimizing capital efficiency means achieving high return wells with superior well performance. Here we have updated our standard productivity slides for the Midland Basin and Austin Chalk, comparing well performance to regional peers, reflecting 30% and 40% superior performance, respectively, in each area.
Speaker Change: Here, we have updated our standard productivity slides for the Midland Basin, and Austin chalk, comparing well performance to regional peers, reflecting 30% and 40% superior performance respectively in each area.
Beth Mcdonald: Moving to slide 13.
Beth Mcdonald: Optimizing capital efficiency means achieving high return wells with superior well performance.
Beth Mcdonald: Here, we have updated our standard productivity slides for the Midland Basin, and Austin chalk, comparing well performance to regional peers, reflecting 30% and 40% superior performance respectively in each area.
Speaker Change: Before I turn the call over to Wade I'll run through some new well results and updated performance graph since we last reported.
Beth Mcdonald: Before I turn the call over to Wade, I will run through some new well results and updated performance graphs since we last reported. On slide 14, we have peak IP30 rates for 18 new wells in Utah, including both the upper and lower cube zones. These very oily wells continue to show strong returns and value creation for SM in the Uinta Basin. Of course, new wells to date were drilled by the previous operator with a different development strategy. The SM team is actively employing our geotechnical work to enhance the program going forward, similar to our efforts to optimize performance in Howard County and the Austin Chalk.
Beth Mcdonald: Before I turn the call over to Wade I'll run through some new well results an updated performance graph since we last reported.
Speaker Change: On slide 14, we have peak IP 30 rates for 18, new wells in Utah, including both the upper and lower <unk> zones.
Beth Mcdonald: Yeah.
Speaker Change: On slide 14, we have peak IP 30 rates for 18, new wells in Utah, including both the upper and lower acute zones.
Wade: He is very oily wells continue to show strong returns and value creation for SM in the Uinta basin.
Of course, new wells to date were drilled by the previous operator with a different development strategy. The SM team is actively employing our geotechnical work to enhance the program going forward.
Speaker Change: These very oily wells continue to show strong returns and value creation for SM in the Uinta basin.
Speaker Change: Of course, new wells to date were drilled by the previous operator with a different development strategy.
Wade: Two our efforts to optimize performance in Howard County, and the Austin chalk as we look into the future. Our initial designs will modify wells per section increased average lateral links and bolster our completion design all while focusing on strong operational execution.
Sam team is actively employing our geotechnical work to enhance the program going forward similar to our efforts to optimize performance in Howard County, and the Austin chalk as we look into the future. Our initial designs will modify wells per section increased average lateral lengths and bolster our completion design all while focusing.
Beth Mcdonald: As we look into the future, our initial designs will modify wells per section, increase average lateral length, and bolster our completion design, all while focusing on strong operational execution.
Wade: Slide 15 updates of previously shown slide that compares the Uinta basin upper and lower cube oil production performance normalized to 10000 feet to SM Midland Basin in Austin chalk on the left side and compares the upper and lower cubes to other key industry basins on the right side both.
Beth Mcdonald: Slide 15 updates a previously shown slide that compares the Uinta Basin upper and lower cube oil production performance, normalized to 10,000 feet, to SM Midland Basin in Austin Chalk on the left side, and compares the upper and lower cubes to other key industry basins on the right side, both continuing to demonstrate the competitive performance of Utah Wells and our excitement for the Utah Act.
Speaker Change: <unk> on strong operational execution.
Speaker Change: Slide 15 updates of previously shown slide that compares the Uinta basin upper and lower cube oil production performance normalized to 10000 feet to SM Midland Basin in Austin chalk on the left side and compares the upper and lower cubes to other key industry basins on the right side.
Wade: Continuing to demonstrate the competitive performance of Utah wells and our excitement for the Utah asset.
Wade: Moving to Klondike on slide 16.
Speaker Change: With continuing to demonstrate the competitive performance of Utah wells and our excitement for the Utah assets.
Beth Mcdonald: Moving to Klondike on slide 16. We have peak IP30 rates for six new wells that average 829 barrels of oil equivalent per day with very high oil content. We have completed eight wells to date in the area, all in Nadine. Wells to date have shown a broad range of results due to expected variations in water cut. The last two wells saw significantly stronger results as we shifted focus on geologic area and certain completion techniques. These last two wells achieved an impressive average peak IP30 rate of 1,312 barrels of oil equivalent per day. We will apply the newer methodology going forward and look forward to the results from the next six wells to be completed later this summer.
Wade: We have peak IP 30 rates for six new wells that averaged 829 barrels of oil equivalent per day with very high oil content. We have completed eight wells to date in the area all in Nadeem.
Speaker Change: Moving to Klondike on slide 16.
Speaker Change: We have peak IP 30 rates for six new wells that averaged 829 barrels of oil equivalent per day with very high oil content.
Wade: Wells to date have shown a broad range of results due to expected variations in water cut the last two wells saw significantly stronger results as we shifted focus on geologic area and certain completion techniques. These.
Speaker Change: We have completed eight wells to date in the area all in Nadeem.
Speaker Change: Wells to date have shown a broad range of results due to expected variations in water cut the last two wells saw significantly stronger results as we shifted focus on geologic area and certain completion techniques fees.
Wade: These last two wells achieved an impressive average peak IP 30 rate of 1312 barrels of oil equivalent per day.
Wade: We will apply the newer methodology going forward and look forward to the results from the next six wells to be completed later this summer.
Speaker Change: These last two wells achieved an impressive average peak IP 30 rate of 1312 barrels of oil equivalent per day.
Wade: Turning to slide 17, and updating our performance graph of our Woodford Barnett wells located in the Sweetie Peck extension area.
Speaker Change: We will apply the newer methodology going forward and look forward to the results from the next six wells to be completed later this summer.
Beth Mcdonald: Turning to slide 17 and updating the performance graph of our Woodford Barnett Wells located in the Sweetie Peck Extension Area. Our first two test wells continue to outperform peer tests on average by around 50%, normalized to 10,000 feet, lending to upside value from prospective development of the Woodford Barnett on this approximate 20,000 net acre position.
Our first two test wells continue to outperform peer tests on average by around 50% normalized to 10000 feet lending to upside value from prospective development of the Woodford Barnett on this approximate 20000 net acre position.
Speaker Change: Turning to slide 17, and updating our performance graph of our Woodford Barnett wells located in the Sweetie Peck extension area.
Speaker Change: Our first two test wells continue to outperform peer tests on average by around 50% normalized to 10000 feet lending to upside value from prospective development of the Woodford Barnett on this approximate 20000 net acre position.
Wade: And finally, turning to slide 18, and our new wells in South, Texas, We have 21, new robust wells that have reached peak IP 30 rates in the Austin chalk. The strong performance of these wells continues to deliver high returns across our entire acreage position.
Beth Mcdonald: And finally, turning to slide 18 and the new wells in South Texas, we have 21 new robust wells that have reached peak IP30 rates in the Austin Chalk. The strong performance of these wells continues to deliver high returns across our entire acreage position. Our recent development includes five pads comprising 21 wells. Specifically, on the left side of the map, you will notice two Briscoe pads that incorporate six new Austin Chalk wells. Overall, the six wells located in the oily area have exhibited strong performance with an average peak IP30 rate of over 1000 barrels of oil equivalent per day per well, with 49% oil and 75% liquid.
Speaker Change: And finally, turning to slide 18, and our new wells in South, Texas, We have 21, new robust wells that have reached peak IP 30 rates in the Austin chalk. The strong performance of these wells continues to deliver high returns across our entire acreage position.
Wade: Our recent development includes five pads, comprising 21 wells specifically on the left side of the map you will notice two briscoe pads that incorporate six new Austin chalk wells overall, the six wells located in the oily area have exhibited strong performance with an average peak IP 30 rate of over 1000 barrels.
Speaker Change: Our recent development includes five pads, comprising 21 wells specifically on the left side of the map you will notice two briscoe pads that incorporate six new Austin chalk wells overall, the six wells located in the oily area have exhibited strong performance with an average peak IP 30 rate of over 1000 barrels.
Wade: Oil equivalent per day per well with 49% oil and 75% liquids.
Wade: In the liquids rich area, we have seen impressive outcomes from three pads that include 15, Austin chalk wells.
Speaker Change: The oil equivalent per day per well with 49% oil and 75% liquids.
Beth Mcdonald: In the liquid-rich area, we have seen impressive outcomes from three pads that include 15 Austin Chalk Welts. These wells have achieved an average peak IP30 rate of 2,352 barrels of oil equivalent per day, with 26% oil and 61% liquid. These wells have an expected payout of one and a half years. Overall, the Austin Chalkwells are exceeding our expectations and are delivering excellent returns. The chart on the right highlights the strong cumulative production curve averages for both areas, underscoring the success of our initiatives and the repeatable performance of our new wells.
Wade: These wells have achieved an average peak IP 30 rate of 2000, and 352 barrels of oil equivalent per day, with 26% oil and 61% liquids.
Speaker Change: In the liquids rich area, we have seen impressive outcomes from three patents that include 15, Austin chalk wells.
Speaker Change: These wells have achieved an average peak IP 30 rate of 2000, and 352 barrels of oil equivalent per day, with 26% oil and 61% liquids.
These wells have an expected payout of one and a half years.
Wade: Overall, the Austin chalk wells are exceeding our expectations and are delivering excellent returns.
Speaker Change: These wells have an expected payout of one and a half years.
Wade: The chart on the right highlights the strong cumulative production curve averages for both areas underscoring the success of our initiatives and the repeatable performance of our new wells.
Speaker Change: Overall, the Austin chalk wells are exceeding our expectations and are delivering excellent returns.
Speaker Change: The chart on the right highlights the strong cumulative production curve averages for both areas underscoring the success of our initiatives and the repeatable performance of our new wells.
Wade: The team is very active on several fronts.
Beth Mcdonald: The team is very active on several fronts. Overall, we are well positioned to execute an exciting program that will support a step change in scale.
Wade: We're all we are well positioned to execute an exciting program that will support a step change in scale and with that I will turn the call over to Wade to talk about the financial highlights of 2024 and put some numbers around the 2025 plant Wade.
Speaker Change: The team is very active on several fronts.
Wade Purcell: And with that, I will turn the call over to Wade to talk about the financial highlights of 2024 and put some numbers around the 2025 plan.
Speaker Change: Overall, we are well positioned to execute an exciting program that will support a step change in scale and with that I will turn the call over to Wade to talk about the financial highlights of 2024 and put some numbers around the 2025 plant Wade.
Wade: Thank you Beth and good afternoon, everyone.
Wade Purcell: Wade. Thank you, Beth.
Wade: I'll start on slide 19.
Wade Purcell: Good afternoon, everyone. I'll start on slide 19. Highlights for 2024 are many, but I'll just summarize with record daily oil production, which was up 23% year over year, and a 12% increase in total production that resulted in $2 billion in adjusted EBITDAX, $485 million in adjusted free cash flow, and an increase in our sustainable annual fixed dividend to $0.80 per share, which was also a record. Looking ahead to 2025 and turning to slide 20, we ran our 2025 budget at $70 WTI, $3.25 gas, and $27 NGLs. The drilling program Beth just described is expected to deliver a year-over-year increase in free cash flow of more than 40%.
Wade: Highlights for 2024 are many but I'll just summarize with record daily oil production, which was up 23% year over year and a 12% increase in total production that resulted in $2 billion and adjusted EBITDAX $485 million and adjusted free cash flow and an increase in our <unk>.
Wade: Thank you Beth and good afternoon, everyone.
Wade: I'll start on slide 19.
How about for 2024 are many but I'll just summarize with record daily oil production, which was up 23% year over year and a 12% increase in total production that resulted in $2 billion and adjusted EBITDAX $485 million and adjusted free cash flow and an increase in our.
Wade: Sustainable annual fixed dividend to <unk> 80 per share, which was also a record.
Wade: Looking ahead to 2025 and turning to slide 20, we ran our 2025 budget at $70 <unk> $3 25, since gas and $27 Ngls. The drilling program. Beth just described is expected to deliver a year over year increase in free cash flow of more than 40%.
Wade: Sustainable annual fixed dividend to <unk> 80 per share, which was also a record.
Speaker Change: Looking ahead to 2025 and turning to slide 20, we ran our 2025 budget at $70 <unk> $3 25, since gas and $27 Ngls. The drilling program. Beth just described is expected to deliver a year over year increase in free cash flow of more than 40%.
Wade: This level of free cash flow equates to a free cash flow yield to current market capitalization of approximately 15%.
Wade Purcell: This level of free cash flow equates to a free cash flow yield to current market capitalization of approximately 15%. I'll now share a few details. Production is forecast to average 200,000 to 215,000 BOE per day, up approximately 20% over the 2024 average. Oil production is estimated to be 51% to 52% of that total, or 102,000 to 112,000 barrels per day, up more than 30% from the 2024 average. Capital will be front-end loaded as we work through the plans initiated by the Uinta Basin Asset Seller, resulting in a production cadence that inclines over the first three quarters.
Wade: I'll now share a few details.
Speaker Change: This level of free cash flow equates to a free cash flow yield to current market capitalization of approximately 15%.
Wade: Production is forecast to average 200 to 215000 Boe per day of approximately 20% over the 2024 average oil production is estimated to be 51% to 52% of that total or 102 to 112000 barrels per day of <unk>.
Speaker Change: I'll now share a few details.
Speaker Change: Production is forecast to average 200 to 215000 Boe per day of approximately 20% over the 2024 average oil production is estimated to be 51% to 52% of that total or 102 to 112000 barrels per day.
Wade: More than 30% from the 2024 average capital will be front end loaded as we work through the plans initiated by the Uinta basin asset seller, resulting in a production cadence that inclines over the first three quarters.
Speaker Change: More than 30% from the 2024 average capital will be front end loaded as we work through the plans initiated by the Uinta basin asset seller, resulting in a production cadence that inclines over the first three quarters.
Wade: Production costs will include <unk> in a range between $5 30, and $5 50 per Boe.
Wade Purcell: Production costs will include LOE in a range between $5.30 and $5.50 per BOE, which includes workovers and transportation of $4.10 to $4.40 per BOE, which now includes rail costs for the majority of our Uinta Basin oil. G&A for the full year is expected to approximate $160 million, which includes $25 million of non-cash expenses, as well as about $7 million in one-time costs associated with the integration efforts in the Uinta Basin. Looking at just the first quarter 2025 expectations, the capital program is very active as we plan to drill approximately 40 net wells and complete approximately 45 net wells.
Wade: Which includes Workovers and transportation of $4 10 to $4 40 per Boe.
Speaker Change: Production costs will include <unk> in a range between $5 30, and $5 50 per Boe.
Wade: Which now includes rail cost for the majority of our Uinta basin oil <unk>.
Speaker Change: Which includes Workovers and transportation of $4 10 to $4 40 per Boe.
Wade: G&A for the full year is expected to approximate $160 million, which includes $25 million of non cash expenses as well as about $7 million in one time cost associated with the integration efforts in the Uinta basin.
Speaker Change: Which now includes rail costs for the majority of our Uinta basin oil <unk>.
Speaker Change: G&A for the full year is expected to approximate $160 million, which includes $25 million of non cash expenses as well as about $7 million in onetime costs associated with the integration efforts in the Uinta basin.
Wade: Looking at just the first quarter 2025 expectations. The capital program is very active as we plan to drill approximately 40 net wells and complete approximately 45 net wells. This level of activity is around one third of the full year program.
Speaker Change: Looking at just the first quarter 2025 expectations. The capital program is very active as we plan to drill approximately 40 net wells and complete approximately 45 net wells. This level of activity is around one third of the full year program.
Wade Purcell: This level of activity is around one third of the full year program, putting total capital expenditures between $425 to $435 million. Production is expected to range between 191 to 198,000 BOE per day at 52 to 53% oil, and LOE will be a little higher than the full year average at $5.45 to $5.55 due to cost associated with generators, on location in Midland, and increased work over expense. G&A is expected to be in the $40 to $42 million range and includes $3 to $4 million of the one-time charges related to the Uinta Basin integration effort.
Wade: Total capital expenditures between $425 million to $435 million.
Wade: Production is expected to range between 191 to 198000 Boe per day at 52% to 53% oil and <unk> will be a little higher than the full year average at $5 45.
Speaker Change: Total capital expenditures between $425 million to $435 million.
Speaker Change: <unk>.
Speaker Change: It is expected to range between 191 to 198000 Boe per day at 52% to 53% oil and <unk> will be a little higher than the full year average at $5 45 to.
Wade: To $5 55, due to cost associated with generators on location in Midland and increased Workover expense Jean.
Speaker Change: To $5 55, due to cost associated with generators on location in Midland and increased Workover expense.
Wade: <unk> is expected to be in the $40 to $42 million range and includes $3 million to $4 million of the one time charges related to the Uinta basin integration efforts.
Speaker Change: G&A is expected to be in the 40% to $42 million range and includes $3 million to $4 million of the one time charges related to the Uinta basin integration efforts.
Wade: I'll now turn to slide 21, which summarizes our current hedge positions.
Wade Purcell: I'll now turn to slide 21, which summarizes our current hedge positions. As a reminder, our philosophy is to align hedge volumes with leverage to protect cash flows and downside commodity risk. We are targeting around 30 to 35 percent of oil and gas volumes hedged to WTI and Henry Hub benchmark prices, respectively.
Wade: As a reminder, our philosophy is to align hedge volumes with leverage to protect cash flows and downside commodity risk, we're targeting around 30% to 35% of oil and gas volumes hedged to <unk> and Henry hub benchmark prices respectively.
Speaker Change: I'll now turn to slide 21, which summarizes our current hedge positions.
Speaker Change: As a reminder, our philosophy is to align hedge volumes with leverage to protect cash flows and downside commodity risk, we're targeting around 30% to 35% of oil and gas volumes hedged to <unk> and Henry hub benchmark prices respectively.
Slide 22 summarizes our strong balance sheet.
Wade Purcell: Slide 22 summarizes our strong balance sheet. We ended 2024 with a ratio of net debt to adjusted EBITDAX at 1.4 times and $1.9 billion of liquidity. Pro forma, if we include an estimate of XCL EBITDAX in the trailing 12-month number, the leverage ratio would be less than 1.2 times. We target leverage of one times net debt to adjusted EBITDAX or roughly $2.3 billion of absolute debt at current commodity prices. During the fourth quarter, we reduced the balance on our revolver by $121.5 million, from $190 to $68.5 million. And it is our intention to generally prioritize debt reduction to target leverage levels before directing free cash flow towards additional share buybacks.
Wade: We ended 2024 with a ratio of net debt to adjusted EBITDAX at one four times and one $9 billion of liquidity pro forma. If we include an estimate of Xel EBITDAX in the trailing 12 months number the leverage ratio would be less than one two times with.
Speaker Change: Slide 22 summarizes our strong balance sheet.
Speaker Change: We ended 2024 with a ratio of net debt to adjusted EBITDAX at one four times and $1 $9 billion of liquidity pro forma. If we include an estimate of Xel EBITDAX in the trailing 12 month number the leverage ratio would be less than one two times.
Wade: We target leverage of one times net debt to adjusted EBITDAX or roughly $2 $3 billion of absolute debt at current commodity prices during.
Speaker Change: We target leverage of one times net debt to adjusted EBITDAX or roughly $2 $3 billion of absolute debt at current commodity prices.
Wade: During the fourth quarter, we reduced the balance on our revolver by $121 $5 million from 190 to $68 $5 million and it is our intention to generally prioritize debt reduction to target leverage levels before directing free cash flow towards additional share buybacks.
Speaker Change: During the fourth quarter, we reduced the balance on our revolver by $121 $5 million from 190 to $68 $5 million and it is our intention to generally prioritize debt reduction to target leverage levels before directing free cash flow towards additional share buybacks.
Wade: We're very much on track and meeting our leverage target in a short timeframe following our $2 billion Uinta Basin acquisition at our current price deck, we expect to meet this target in the second half of this year.
Wade Purcell: We're very much on track in meeting our leverage target in a short time frame, following our $2 billion Uintah Basin acquisition. Our current price deck, we expect to meet this target in the second half of this year.
Speaker Change: We're very much on track and meeting our leverage target in a short timeframe following our $2 billion Uinta Basin acquisition at our current price deck, we expect to meet this target in the second half of this year.
Wade: I'm now on slide 23.
Wade: Return of capital to stockholders is one of our three top objectives for 2025 since the inception of our program in late 2022, we have returned more than $540 million returning more than 40% of free cash flow to stockholders. In 2025, we will have our <unk> 80 per share.
Wade Purcell: I'm now on slide 23. Return of capital to stockholders is one of our three top objectives for 2025. Since the inception of our program in late 2022, we have returned more than $540 million, returning more than 40% of free cash flow to stockholders. In 2025, we will have our $0.80 per share annual dividend in place and seek to reinitiate share repurchases with our $500 million authorization as just described. Moving to slide 24.
Speaker Change: I'm now on slide 23.
Speaker Change: Return of capital to stockholders is one of our three top objectives for 2025 since the inception of our program in late 2022, we have returned more than $540 million returning more than 40% of free cash flow to stockholders. In 2025, we will have our <unk> 80 per share.
Wade: Our annual dividend in place and seek to Reinitiate share repurchases with our 500 million odd.
Arthur: Arthur's Asian has just described.
Arthur: Moving to slide 24, we like to emphasize the importance of stewardship is a key component of being a premier operator.
Speaker Change: Our annual dividend in place and.
Speaker Change: Seek to Reinitiate share repurchases with our $500 million.
Wade Purcell: We like to emphasize the importance of stewardship as a key component of being a premier operator. Here we highlight our top priority safety with a beautiful drawing by Aisley Swartz, daughter of one of our geologists at SM, and the winner of our annual safety calendar contest. And on the right side, we note our recognition in leadership development with two awards from the prestigious Brandon Hall Group.
Speaker Change: <unk> authorization has just described.
Arthur: Here, we highlight our top priority safety with a beautiful drawing by idly Swartz daughter of one of our geologists that axiom and the winner of our annual safety calendar contest and.
Speaker Change: Moving to slide 24, we like to emphasize the importance of stewardship is a key component of being a premier operator.
Speaker Change: Here, we highlight our top priority safety with a beautiful drawing by Ashley Swartz, daughter of one of our geologists that axiom and the winner of our annual safety calendar contest.
Arthur: And on the right side, we note our recognition and leadership development with two awards from the prestigious Brandon Hall group.
Arthur: So in closing on slide 25, I will reiterate that 2024 was an outstanding year.
Speaker Change: And on the right side, we note our recognition and leadership development with two awards from the prestigious Brandon Hall group.
Wade Purcell: So in closing on slide 25, I will reiterate that 2024 was an outstanding year. Thank you to all of our amazing employees for delivering such exceptional results and welcome to our new team members from XCL and Altamont. We are poised for an even better 2025. It is a great time to be a part of the energy sector and a pivotal year for our company. In 2025, we will integrate our Uinta Basin expansion, significantly increasing our operational scale. We expect to maintain a strong balance sheet and deliver return of capital to our stockholders by reducing debt and transferring that enterprise value to our stockholders, sustaining our recently increased fixed dividend and repurchasing shares under our $500 million authorization at the appropriate time.
Arthur: To all of our amazing employees for delivering such exceptional results and welcome to our new team members from Xel in Altamont, we're poised for an even better 2025 it.
Speaker Change: So in closing on slide 25, I will reiterate that 2024 was an outstanding year.
Speaker Change: Thank you to all of our amazing employees for delivering such exceptional results and welcome to our new team members from Xel in Altamont, we're poised for an even better 2025 it.
Arthur: It is a great time to be a part of the energy sector and a pivotal year for our company in 2025, we will integrate our Uinta basin expansion significantly increasing our operational scale, we expect to maintain a strong balance sheet and deliver a return of capital to our stockholders by reducing debt and transferring that enterprise.
It is a great time to be a part of the energy sector and a pivotal year for our company in 2025, we will integrate our Uinta basin expansion significantly increasing our operational scale, we expect to maintain a strong balance sheet and deliver a return of capital to our stockholders by reducing debt and transferring that enterprise.
Arthur: All of you to our stockholders sustaining our recently increased fixed dividend and repurchasing shares under our $500 million authorization at the appropriate time.
Speaker Change: All of you to our stockholders sustaining our recently increased fixed dividend and repurchasing shares under our $500 million authorization at the appropriate time.
Arthur: Thank you for joining us today, and we look forward to our live call Tomorrow morning.
Wade Purcell: Thank you for joining us today and we look forward to our live call tomorrow morning.
Speaker Change: Thank you for joining us today, and we look forward to our live call Tomorrow morning.