Release Date: October 23, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q: Neal Dingmann from Truist Securities asked about the company's open market share purchases and whether stock repurchases would become a larger part of shareholder returns. A: Joseph Foran, Chairman and CEO, explained that while they consider buybacks, they currently favor fixed dividends as a more effective way to return value to long-term shareholders. He noted that buybacks might benefit short-term shareholders more and emphasized the importance of maintaining a strong dividend policy.
Q: Scott Hanold from RBC Capital Markets inquired about capital allocation for 2025, especially in light of the new Emer assets. A: Joseph Foran and Brian Willey, CFO, discussed the company's strategy for measured growth, highlighting their inventory of 2,000 locations with high returns. They plan to run nine rigs throughout the year, which will result in slightly higher capital expenditures compared to 2024.
Q: Zach Parham from JPMorgan asked about the company's tax refund and expectations for cash taxes in 2025. A: Robert Macalik, EVP and Chief Accounting Officer, stated that the actual cash tax rate for 2025 will depend on their plan and available deductions. They are confident in their 2024 estimates and will provide more details in February.
Q: John Freeman from Raymond James questioned the potential for further efficiency gains in drilling and completion costs. A: Christopher P. Calvert, EVP and COO, highlighted the use of Trimol Frac and remote frac operations as key drivers of cost reduction. He emphasized ongoing improvements in drilling times and operational efficiencies.
Q: Kevin MacCurdy from Pickering Energy Partners asked about the production increase from the Emer assets and future activity plans. A: Glenn Stetson, EVP of Production, and Edmund Frost, EVP of Geosciences, explained that recent well results have exceeded expectations, and they are optimistic about continued strong performance from these assets.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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