Q1 2025 Gulfport Energy Corp Earnings Call
Speaker Change: John Reinhart, Michael Hodges, John Reinhart, Michael Hodges, John Reinhart
Speaker Change: Greetings and welcome to the Gulfport Energy Corporation First Quarter 2025. At this time, all participants are now listening only mode. A question and answer session will follow the formal presentation. If anyone should require an operated assistance, please press stars
Speaker Change: As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Jessica Antle. Thank you. You may begin.
Speaker Change: Thank you and good morning. Welcome to Gulfport Energy Corporation's first quarter 2025 earnings conference call. I am Jessica Antle, Vice President of Investor Relations.
Speaker Change: Today's speakers include John Reinhart, Prevident, and CEO , Michael Hodges, Executive Vice President, and CFO , and in addition, we have Matthew Rucker, Executive Vice President, and Chief Operating Officer will be available for the Q&A portion of today's call.
Speaker Change: 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 conditions, results of operations, plans, objectives, future performance, and discipline.
Speaker Change: We caution you that the actual results differ materially from those that are indicated in these forward-looking statements due to a variety of factors.
Speaker Change: Information concerning these factors can be found in the company's filings with the SST. In addition, we may reference non-GAAP measures . Reconciliation to the comparable GAAP measures will be posted on our website. An updated Gulfport presentation was posted yesterday evening to the website in conjunction with the Ernie's announcement.
Speaker Change: 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 for joining our call today.
John Reinhart: Gulfport began 2025 with strong momentum, delivering first quarter results that exceeded internal expectations.
John Reinhart: The company realized a 45 cent per MCFE premium to 9MX Henry Hub on a natural gas price equivalent basis, opportunistically repurchased 60 million of Gulfport common shares at attractive prices amid market volatility.
John Reinhart: Highlighted Corporate Planning Flexibility with a shift in second half 2025 capital allocation towards natural gas drilling.
John Reinhart: and reaffirmed the company's full-year guidance driven primarily by a forecasted 20% growth in our natural gas volumes by the fourth quarter of 2025.
John Reinhart: The success of the marketing, operational, and planning teams positions the company attractively throughout the year and into year-in, aligning well with a constructive natural gas outlook for 2026.
John Reinhart: Our priorities remain centered while maintaining an attractive balance sheet, generating significant free cash flow, executing a robust shareholder return program, enhancing operational efficiencies and advancing our development program to support production growth throughout the year.
John Reinhart: Moving to our first quarter results, our average daily production totaled 929 million cubic feet equivalent per day Aligning with company expectations and keeping us on track to deliver our previously stated full-year production guidance of 1.04 to 1.065 billion cubic feet equivalent per day
John Reinhart: and are positioned favorably for meaningful natural gas production growth and the upcoming quarters.
Thank you.
John Reinhart: The company remains committed to developing our assets in a responsible manner, an allocating capital to the highest value opportunities.
John Reinhart: Given the current commodity environment, as you will see from the Investor Deck on Slide 11, we have updated our drilling plan to include a four-well drag-ass Utica pad during 2025 and deferred a four-well Marcellus pad to 2026.
John Reinhart: These planning optimizations highlight the company's flexibility to be dynamically responsive to market conditions in order to maximize shareholder value and inclusive of these changes we are reaffirming our full-year operated drilling and completion capo guidance.
of $335 million to $355 million.
John Reinhart: On the landfront, through March 31, 2025, we have invested roughly 11 million on maintenance and land investment.
John Reinhart: Focus on bolstering our near-term drilling programs with increases of working interest and lateral footage in units we plan to drill near-term.
John Reinhart: While we did not have any discretionary acreage acquisition spend during the first quarter, we continued to assess the landscape and remain optimistic about the opportunities to meaningfully increase our leasehold footprint.
John Reinhart: to enhance resource depth and believe these opportunities rank very high as we evaluate uses of free cash flow in 2025.
John Reinhart: Operationally in Ohio during the first quarter, the company completed drilling on 13 gross wells, seven targeting Ohio Utica, four targeting Ohio Marcellus, and two in the Scoop targeting the Woodford.
John Reinhart: We entered the year with three operated rigs running, and as planned, released a scoop drilling rig in mid-February and released the second Ohio drilling rig just last week.
John Reinhart: We currently have one rig running in Ohio and anticipate this drilling cadence to continue for the remainder of 2025.
John Reinhart: On the completions front, we brought online seven gross eutical wells in March, including three eutica drag-ass wells and four eutica condensate wells, which represent our caged development in southwest Harrison County, that are highlighted on slide 12 of the investor presentation.
John Reinhart: Located further west in the condensate window relative to the Lake Seven Pad, the cage is performing exceptionally well and delivering early production rates nearly double those of the nearby highly productive Lake Seven Pad.
John Reinhart: This outperformance reflects continued optimization in completion and facility designs, as well as the Revised Managed Pressure Flowback Strategy.
John Reinhart: Taking our learnings from the Lake Seven Pads, we refined the stimulation procedures and redesigned the cage facilities to accommodate higher flow rates and during the initial flow back we have increased production volumes to take advantage of strong reservoir productivity and higher liquids yields being observed.
John Reinhart: These early results in combination with the continued strong performance of the Lake Seven Development reinforced the perspective nature of this acreage and development optionality that it possesses.
John Reinhart: Specific to our Marcellus activity, we continue to be very encouraged by our Hendershopped results. The company's first operated Marcellus Wells on our stack pay acreage in Belmont County, Ohio, that were turned to sales in November of 2023.
John Reinhart: Following roughly a year and a half of production history, our forecasted oil EURs, per foot of lateral, placed these two wells in the top 5% of all Marcellus oil wells drilled today.
John Reinhart: We are excited to transition to development mode in the Marcellas during 2025.
John Reinhart: The company completed drilling the four well Yankee pad during the first quarter and recently finished stimulation operations on the pad and planned to bring these wells online late in the second quarter.
John Reinhart: Lastly, as noted in our opening comments, the team's continuous focus on operational improvements led to several new execution records.
John Reinhart: On the drilling side, in the Utica, we experienced a 28% improvement over a full year, 2024, and Footage Drilled Pradeg.
John Reinhart: The company's average fund-to-rig release days also decreased by over 30% when compared to the full year in 2024.
John Reinhart: which included records of 13.7 days spud to rig release for a 15,000 foot Utica lateral and 15.1 days spud to rig release on a Utica lateral reaching over 20,000 feet.
John Reinhart: On the completion side and subsequent to the quarter, our Utica Frack provider set two new company records for continuous pumping performance in the Northeast, both of which were on Gulfport operated paths.
John Reinhart: While the recently completed Marcellus Pad, the teams achieved 97 and a half continuous pumping hours, completing 69 stages, placing over 23 million pounds of sand and pumping roughly 490,000 barrels of water in that time period.
John Reinhart: At the same time, a second fleet achieved over 105 continuous pumping hours on a Gulfport Utica Dragass pad, completing 63 stages while placing over 21 million pounds of sand.
John Reinhart: Both of these milestones significantly surpass their previous records and highlight the strong collaboration and alignment with our vendors to make these results possible.
John Reinhart: In closing, we experienced a strong quarter of execution and are well positioned to continue delivering on our financial and strategic objectives for 2025.
John Reinhart: The reallocation of activity to more dry gas development and strong natural gas growth throughout the year will position the company to capitalize on the strengthening commodity environment as we enter 2026.
John Reinhart: Ultimately improving free cash flow generation and further allowing us to continue to prioritize returning capital to shareholders.
John Reinhart: Now, I will turn the call over to Michael to discuss our financial results.
Michael: Thank you, John . Good morning, everyone. Our first quarter financial performance highlights a strong start to the year with results ahead of company expectations and the operational momentum that John described positioning us well for the remainder of 2025.
Michael: Netcash provided by operating activities before changes in working capital, totaled approximately $207 million during the first quarter. More than funding our capital expenditures despite a capital program that is roughly 75% weighted to the first half of 2025.
Michael: We reported an adjusted EBITDA of approximately $218 million during the quarter and generated adjusted free cash flow of $36.6 million for the same period, both served by our strong realized pricing and gas differentials better than analysts and company expectations.
Michael: Cash operating cost for the first quarter totalled $1.31 per million cubic feet equivalent in line with the company expectations and an expected quarterly high point for Gulfport as we anticipate declines moving forward.
Michael: with our production cadence expected to accelerate throughout 2025. The fixed charges embedded in our operating costs are expected to decline on a per unit basis over the course of the year and land within the range of our full-year guidance.
Michael: Similar to previous years and consistent with our internal expectations, our first quarter operating costs were impacted by winter weather operations that led to slightly higher per unit costs early in the year than in other periods.
Michael: For the full year of 2025, we are reaffirming our per unit operating cost guidance, which includes L.O.E., midstream, and taxes other than income of $1.20 to $1.29 per MCFE.
Michael: Our All-In Realized Price for the first quarter was $4.11 per MCSE before the impact
Michael: This realized unit price is $0.45 or 12% above the 9x10 rehab 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.
Michael: As you are likely aware, winter weather this year delivered daily pricing during periods of peak demand that was above what would otherwise be expected.
Michael: As a result, our natural gas price differential before Hedges was an 8 cent per MCF premium to the average daily 9 mix settled price during the quarter, ahead of analysts consensus expectations and meaningfully better than even the narrow end of our full year guidance range.
Michael: Turning to the balance sheet, our financial position remains strong, with trailing 12-month net leverage exiting the quarter at approximately 0.9 times. Down from the prior quarter and benefiting from the increasing cash flow our business has delivered over the past year.
Michael: As of March 31st, 2025, our liquidity totaled $960 million, comprised of $5.3 million of cash plus $901.1 million of borrowing-based availability.
Michael: We recently completed our spring borrowing base redetermination and our lenders unanimously reaffirmed our borrowing base of $1.1 billion, with the elected lender commitments remaining at $1 billion.
Michael: 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.
Michael: With respect to EBITDA on adjusted free cash flow generation, the rising natural gas curve over the next 12 months, along with our continuous operational improvements, position 2025 to be a transformative year for Gulfport from a cash flow perspective.
Michael: Based on current strict pricing, we forecast our adjusted free cash load to grow significantly over the coming quarters, which should further strengthen our already top tier free cash load yield relative to our natural gas peers.
Michael: We continue to view share repurchases as a compelling capital allocation opportunity, and during the first quarter we repurchased 341,000 shares of common stock for approximately $60 million.
Michael: and since the inception of the program, we have re-purchased approximately 5.9 million shares of our common stock at an average price of $108.99. Lowering our share account by approximately 17% at a weighted average price that is 40% below our current share price. We are now at the end of the program. We are now at the end of the program.
Michael: As of March 31, we had approximately $356 million available under our $1 billion share repurchase program.
Michael: and remain steadfast in our free cash flow allocation framework as we plan to return substantially all of our adjusted free cash flow, excluding discretionary acreage acquisitions to our shareholders through common stock repurchases.
Michael: We believe our committed approach to sharing purchases over the past few years has delivered tremendous value to our shareholders, and we will remain opportunistic rather than programmatic, allowing us to allocate capital dynamically when we believe the current valuation does not reflect the strength of our underlying fundamentals.
Michael: In summary, this year's development program is off to a solid start as we execute on what we believe will be a pivotal year for the company with regard to free cash flow generation.
Michael: We continue to succeed operationally on all fronts, prudently allocating capital to highest value opportunities and returning a significant portion of our adjusted free cash flow to shareholders through our Common Share Repurchase Program. With that, I will turn the call back over to the operator to open up the call for questions.
Thank you.
Michael: Thank you. We will now be conducting a question-and-answer session. If you would like to ask a question, please press star one on your telephone keypad.
Michael: A confirmation toll will indicate your line is in the questioning queue. You may press start to to remove yourself from the queue for a participant using speaker equipment, and may be necessary to pick up the hands that before pressing the start keys.
One moment while we pull four questions.
Speaker Change: Our first question comes from the line of Tim Rezvan with Keybank Capital Markets Inc. Please proceed with your question.
John Reinhart, John Reinhart, John Reinhart
Speaker Change: Good morning, folks, and thank you for taking our questions. I want to follow first John . You have this front-end-loaded capital program that you've run a couple of years, and when you look at kind of the first quarter results.
Speaker Change: Is there any kind of regret that maybe this big sequential decline in production impacted your ability to take advantage of the strongest quarter of the year in terms of demand and pricing, and kind of how committed are you to this sort of front-end loaded program going forward?
Speaker Change: Atem, I appreciate the question and thanks for being on the call.
Speaker Change: What I'll tell you is, as we look for development cadence throughout the year, we're very sensitive to the commodity environments and certainly having the hindsight of seeing where prices were, you know, certainly dictates what the company and how we would allocate capital. I'll tell you that in the first quarter, the volumes were planned to be lower. This was as of a cadence to your point from a turn in line shortage in Q4. I think moving forward is
Speaker Change: We look at the mix, the well mix, between dry gas, which has a lot more stable production level with regards to flat production profile versus the liquids. We'll certainly take that into account and the shift towards the dry gas in and of itself will actually work to accelerate cash flows for the company. So, I wouldn't say I was regret cap frontloaded cap or program. We've used this for the past two years. I think what would happen this year was in particular a shift towards liquids. And the short.
John Reinhart: River Plateau Period had the production levels fall off, you know, a little bit more aggressively versus Dragass, but moving forward with the shift in Dragass, I think will be mindful of the program and ensure that we capitalize on volumes in the peak seasons for pricing. So hopefully that answers your question.
Speaker Change: Yeah, that's a good context with the liquid wells, thanks for that. And then as my follow-up...
Speaker Change: You reminded us in your prepared comments, John , that you haven't budgeted for discretionary
Speaker Change: but you see opportunities, typically CEOs don't state that by accident in their comments.
Speaker Change: What you're seeing on the dry gas or wet gas side of things, and how is that market, you know, obviously the oil market seeing quite a bit of volatility and
Speaker Change: A&D is probably stuck in the mud. So can you talk about what you're seeing on that on the wet gas side and what gives you optimism that you may have an opportunity in front of you? Thank you.
Speaker Change: I appreciate the question. Yeah, I think first of all, the companies in a really fortunate position this year to have a fairly robust free cash flow profile. And as we noted, we're going to continue the same framework, moving forward into this year's, we have the last two years, prioritizing shareholder returns and reinvesting in the company to your point with the discretionary acquisitions.
Speaker Change: As we look through the landscape in Ohio, I will tell you that the teams are currently assessing what we're very picky about, you know, where we're focusing.
Speaker Change: Very much related to economics and what's going to deliver the highest cash flows.
Speaker Change: Michael Hodges, John Reinhart, John Reinhart, Michael Hodges, John Reinhart, John Reinhart,
Thank you.
Thanks
Speaker Change: Thank you. Our next question comes from the line of Zach Parham with JP Morgan, Glee for C with your question.
Zach Parham: Thanks for taking my question. First, could you just talk a little bit more about the cage pad? Maybe what's driving the outperformance of the cage development versus the lake pad? Is it something in well design or fragment of that? Is it geology or facilities that you have in place? Just would like to get a little more color there on the outperformance.
Zach Parham: Yeah, thanks back. I'll take that one. You know, we took that late pad. The teams did a really good job kind of dissecting the outcome of that pad. I think a couple things going to play there for us.
really around for act design, kind of right sizing.
The Fracture Around
Zach Parham: Proper Sand Loading, Water Loading, as well as just what we consider.
Zach Parham: to be a really effective kind of cluster spacing design on that pad, as well as with, you know, we talked last time about kind of our testing of going a little more aggressive on that lake after a period of choke management.
Zach Parham: to assess those results. I tell you, through those results, we kind of got a better understanding of the reservoir as well as just what it would take from the facility standpoint to be able to flow at higher rates. So all of those things kind of were put together here on this pad with a really, really good efficient development. Thank you.
Zach Parham: We've been very pleased with the first 30 days results here, still early but very strong results, minimal drawdown and speaks for itself around the IP30 there. Very good result from the teams there and certainly something we think we can take and apply forward to the rest of our inventory out there when we get to it.
Speaker Change: Thanks for that. I'm also wanting to ask on the shift in activity. Shifting a little bit about activity in the set amount of the year towards dry gas, first wet gas.
Speaker Change: You know, I know it certainly, but how are you thinking about 2026? Could you be looking to grow gas a little bit next year? You know, they're 4Q implied gas rate is just over a BCF today. If you held that flat next year, that'd be 5 or 6% growth.
Speaker Change: and they're just looking for some early thoughts on how you're thinking about 2026.
Speaker Change: Yeah, Zach, appreciate the question. I mean, to your point on the 25 schedule, what we really wanted to do was highlight the team's flexibility here, and as we look at these wells, it will be drilling and not turn to sales. We feel like it was a very prudence shift towards natural gas by pushing out the Marcellus pad into 26 and prioritize in the four-wheel drag-ass pad. We won't be providing guidance on 26, I think, to your question.
Speaker Change: But what I will tell you is that we certainly are looking at the macro environment on the oil side of the supply demand, it's impact on price.
Speaker Change: and gas is setting up extremely constructively, which kind of shifts us towards a more weighted wet gas, kind of dry gas program for 26.
Speaker Change: So more to come whenever we come to the end of the year for specific details but what I will tell you is we like how the macros shaping up for the gas weighted areas in our portfolio and this shift in the second half of 2025 with the drilling to give you an idea of how we're thinking about 26 early on.
Thank you John .
Thank you. Thank you.
Thank you.
Speaker Change: Thank you. Our next question comes from the line of Noah Hungness with Bank of America. Please proceed with your question.
Speaker Change: Good morning, everyone. For my first question here, I want to hear drilling efficiencies seem to continue to improve. And I was wondering if the cutting edge drill times and lack efficiencies are contemplated in the current 25 CAPEX guidance.
Speaker Change: Yeah, no, this is Matt. You know, you're right. I think the teams have...
Speaker Change: You know, anything above and beyond that certainly would be a benefit to us and so those aren't, we don't continuously upgrade those throughout the calendar year but you know based on where we're at today I think just reaffirming the capital guide with the activity we have is where we are so but. Bye bye.
Speaker Change: A lot of upside there, I think, for the guys, specifically on the drilling side, we continue to make larger chunks of gain there and really excited about what that team can deliver force.
Speaker Change: at Gulfport that we can take on, you know, what I would consider premium opportunities if they fit in our portfolio versus a competitor that perhaps doesn't have that flexibility. So yeah, I would just tell you that we look at all that stuff. Our marketing team has done a really excellent job here in the first quarter on our differentials, and I think to the extent we find projects like that that makes sense, then you'll see us likely be involved.
Great color. Thank you.
Thank you.
Speaker Change: Our next question comes from the line of Gabe Dowd with TD Cowan. Please proceed with your question.
Gabe Dowd: Thanks. Hey, morning, everyone. I was hoping to maybe just ask on Utica DNC per foot.
Speaker Change: Give me some of the efficiencies you've highlighted. I think targeting less than 900 foot for 2025 is that, is that a level that you're currently at today or are you progressing towards that level? I'm just curious.
Gabe Dowd: Again, given the appendices just continue to screen off the charts if there's some more downside potential to that number.
Gabe Dowd: Yeah, Gabe, thanks for the questions Matt. Certainly that's something we're hitting today as we kind of rolled out the budget.
Gabe Dowd: and the Capitol Guide there, those numbers that you highlighted there were part of that plan.
Gabe Dowd: as we've delivered on some of these efficiencies, on some select pads here. We are seeing those costs drive a little bit lower. So if we can sustain that and continue to improve there, obviously there's continuous downside to those per well cost. But
Gabe Dowd: Currently achieving that have been for the year and that's kind of what's rolling into the Reaffirm Capital Guide.
Speaker Change: Got it, got it. Okay, thanks. That's helpful. And then, maybe just a follow-up going back to Tim's question, John , just around lamp purchases and A&D generally would love maybe your thoughts on larger scale M&A in the basin and how maybe Gulfport fits into that. Thanks, guys.
Speaker Change: I appreciate the question, Dave. I think it's opportunities to rise and they come in, you know.
Speaker Change: It's certainly multiple forms, you know, will assess anything that would be potentially accreted to the shareholders. What I will say is that we certainly have a high bar with regards to return on capital, what that might look like.
Speaker Change: based on the other uses of cash flow that we have in a company with share repurchases with discretionary acreage spend. So we certainly remain open and we will assess any opportunities that would provide value fundamentally for the company and be accreted to our shareholders, but we do also have a pretty high bar that we may be letting in.
Thanks, John. Very helpful. Thanks, guys.
Thank you.
Speaker Change: Our next question comes from a line of Carlos Escalante with Wolf Research. Please receive with your question.
Speaker Change: Hey, good morning team. Thank you for taking another question. I guess we would like to first ask about your, to dig in a little more about your decision to pivot into the dry gas Unica Hey, which I suppose the drilling that Marcel as well towards the end of the year.
Speaker Change: Our specific question is, what is the guiding principle under which you decide to make this move?
Speaker Change: and if I can elaborate a little more on that, what are the key commodity levels at which you believe for each of the relevant commodities?
Speaker Change: that it's more favorable as you point out to bolster your economics than your free cash flow from one to the other.
Speaker Change: Yeah, it's a great question, Carlos, thanks. I'll start by saying that's kind of a moving target for us as we look at efficiency gains.
Speaker Change: Capital Costs, Reductions, Pricing, EURs, and Well Productivity, that's a dynamic kind of scenario that we continuously assess and upgrade.
Speaker Change: What I will tell you from a commodity price specific, we take a look at the next year, two years, we follow the macro and just right now as we look at the landscape there's just a lot of
Speaker Change: Potential Volatility and Downward Pressure on the Oil Side. I will reiterate though that these Marcello's condensate wells and these use of the condensate wells still perform exceptionally well economically. What I'll tell you is for us it's more of a making sure that we're developing and maximizing the returns on the resources that we have in a company. That drives how we kind of allocate capital and that shifted us to move towards our second Marcello.
Speaker Change: Ellis Padd for this year, pushing it to 26 and prioritizing dry gas. The macro is very favorable for gats in 26 throughout the end of this year and in the next and given the volatility in the other commodity environments, that was approved move we felt.
that you're hedging strategy on gas changes, given that…
Speaker Change: You know, the meces is kind of a hedge to your gas production. Does your hedge in philosophy change with that incremental exposure to liquids, or do you still, you have the same thoughts about that around that as you did before?
that you move forward on the gas side.
Speaker Change: I think when you look at us in liquids, I think, again, that's an area we've grown in, but it's still a smaller part of our revenue stream, and so I don't think it really changes our strategy around liquid-teaching. I think we'll protect some downside there, where we see opportunities, but again, we're still in 89% gas company, I think John , he mentioned in his comments, we're still focused on gas at this point as we move into later in 25 and 26, so no real change in the overall strategy there, I think, you know, we do feel like the macro has John pointed out.
Speaker Change: that's up well next year and we're adapting the hedging approach to fit that strategy.
Great color. Thank you guys.
Thank you.
Speaker Change: Alright, next question comes from the line of Jacob Roberts with TVH. Please proceed with your question.
Good morning.
Morning, Jake.
and one of the circle back to the cage pad there, I was—
I'm wondering if, uh...
Speaker Change: You guys have planned there for the year. I believe so. I'm just wondering.
Speaker Change: When you do get back this area, how you're thinking about any potential well design changes from here, given the step up from the lake pad, and then I was wondering if
Speaker Change: If you guys had foreseen these types of results and if you if you didn't or would you have sent more activity here potentially or we should be looking for more activity in a better oil price environment.
Speaker Change: Yeah, Jacob, this is Matt, on the first one there as far as well, design changes, I think.
Speaker Change: We're always consistently pad to pad in each of our type career areas looking at tweaks we can make to improve, you know, not only well performance but just, you know, the economics right from a cost effect on this standpoint. So, I think there's certainly things to take away from here. I would say very pleased with the subsurface results in the initial 30 days. There's still a lot of time left to go. So, we've, you know, we've, you know,
Speaker Change: with giving ourself some time here with the development schedules you mentioned, so we'll continue to assess kind of the overall recoveries.
Speaker Change: of that pad and the well-spacing and the fractal eyes. And then, you know, moving forward, I think what we've seen is continuous improvement on the cost side that we can lean into a little bit more which bolsters the economics. So both of those things, I think we'll take those learnings from when we're ready to develop the next one.
John Reinhart: and I'll pass it on to John for kind of part two of that question.
Speaker Change: Yeah, I appreciate the question, Jake. I think even though we're not guiding the 26th, you know, we've talked a little bit about some of the shifts towards the wet and dry gas.
Speaker Change: and Lake 25 Drillin that will lead to some production impact in 26. To your point, I think
Speaker Change: We are going to be continuously focused on that wet and dry gas, but what I will tell you is the Marcellus in the condensate, especially at these rates and well productivity, and its capital goes down. You know, it's still an attractive option. So I wouldn't roll out necessarily. We're going to have a diverse mix next year, but what I will tell you is just more specifically, we feel very comfortable leaning in considering the macro with dry gas and wet gas development with other areas of hydrocarbon maturities.
Speaker Change: You know, put into the program, but certainly probably not something we're leaning into next year with regards to liquids.
Speaker Change: All right. Thank you very much. Appreciate the time. All right. Thank you.
Thank you.
Speaker Change: and we have reached the end of the question and answer session. I would like to turn the floor back to John Reinhart for closing remarks.
Speaker Change: Yes thank you everybody for taking the time to join our call today. Should you have any questions, please do not hesitate to reach out to our investor relations team. This concludes our call. Have a great day.
Speaker Change: And ladies and gentlemen, this concludes today's conference. You made this connection a lot at this time. Thank you for your participation. Have a great day.