and gentlemen, and welcome to
the Murphy Oil Corporation Second Quarter 2018 Earnings Call and Webcast Conference Call. I would now like to turn the conference over to Kelly Whitley, Vice President, Investor Relations and Communications. Please go ahead.
Thanks, Pamela. Good morning, everyone, and thank you for joining us on our call today. With me are Roger Jenkins, President and Chief Executive Officer and David Lamey, Executive Vice President and Chief Financial Officer. Please refer to the informational slides we have placed on the Investor Relations section of our website as you follow along with our webcast today. Please keep in mind that some of the comments made during this call will be considered forward looking statements as defined in the Private Securities Litigation Reform Act of 1995.
As such, no assurances can be given that these events will occur or that the projections will be attained. A variety of factors exist that may cause actual results to differ. For further discussion of risk factors, see Murphy's 2017 Annual Report on Form 10 ks on file with the SEC. Murphy takes no duty to publicly update or revise any forward looking statements. I will now turn the call over to Roger Jenkins.
Good morning, Kelly. Good morning, everyone, and thank you for listening to our call today. Our second quarter results clearly validate the strength of our diversified portfolio as robust production from our oil weighted onshore and offshore plays continued to drive high margin realizations. Enabled us to return 13% of our operating cash flow to our shareholders through our long standing dividend policy. We also have achieved an annualized EBITDA for capital employed of 20%.
Our adjusted net income was 63,000,000 and we maintained our balance sheet strength. Production for the 2nd quarter averaged 171,000 barrels equivalent per day at 59% liquids. Production exceeded the high end of guidance by 2,000 barrels of oil equivalent per day. This beat was driven by outperformance on our onshore Canada and Gulf of Mexico assets with the liquids production accounting for 50%
of this beat. As we look to
the strengthening of our portfolio, we achieved exploration success at our Samurai II well in the Gulf of Mexico. In our onshore business, we're able to show continuous improvements in cost reductions by achieving our drilling and completion cost goals in the Kaybob Duvernay of $6,500,000 per well, which is well ahead of our target date. In the Q2, on slide 4, we continue to successfully execute our focused strategy. We've returned to offshore exploration, with successful Samurai-two well just mentioned. And in Vietnam, we've worked with our partner to assume operatorship for the 15105 Block, which shows the existing LDV discovery and will increase our working interest there to 40%.
Our teams delivered excellent operational performance in quarter and the Gulf of Mexico production exceeded guidance of about some 1700 barrels equivalent per day, driven by better performance and uptime. The Kaybob Duvernay continues to exceed our expectations with production increases by more than 100% year over year, while simultaneously achieving record low drilling and completion costs. During the Q2, we benefited from the strength of our diversified portfolio, achieving high margin realizations with a weighted average of $68 per barrel of oil sold. Slide 5. Over the first half of the year, we delivered strong EBITDA per BOE from 3 core areas.
These areas received premium pricing, which is the key of our high margin generation and account for 70% of our production and 70% of our capital. First in Malaysia, achieved an EBITDA of over $36 per BOE. 2nd, North America Offshore, EBITDA of $39 per BOE. And thirdly, Eagle Ford Shale achieved an EBITDA of $38 per BOE. These assets have a full year CAGR of 7% production growth as per disclosed long range production plan.
On Slide 6 now. We're increasing our full year CapEx guidance by $65,000,000 to 1,180,000,000 dollars We're allocating $55,000,000 to Onshore Canada, primarily in Kaibab Duvernay for additional wells and required infrastructure. We're planning to bring the additional wells online later this year. The remaining 10,000,000 is for the deepening and successful logging program of our Samurai-two well in the Gulf of Mexico. Production for the 3rd quarter is expected to be in the range of 165 500,000 to 168,500 barrels equivalent per day.
3rd quarter production is lower than the 2nd quarter due to the annual turnaround of our non operated offshore Canada fields and to executing operated capital projects in Malaysia, accounting for some 7,400 barrels equivalent per day. The decrease will be partially offset by onshore production growth in the Eagle Ford J. O. And Kaybob of 3,900 barrels equivalent per day. Because of our strong production in first half of twenty eighteen, we're also increasing the midpoint of our full year guidance by 1,000 barrels equivalent per day to a range of 168.5 to 170,500 barrels equivalent per day.
I'll now turn the call over to our CFO, David Looney, who will give a financial update for us this morning.
Thank you, Roger, and good morning. We're now on Slide 7. Consolidated results in the Q2 of 2018 included net income of $46,000,000 or $0.26 per diluted share compared to a loss of $17,000,000 or $0.10 per diluted share in the same quarter 1 year ago. Our adjusted net income was a profit of $63,000,000 or $0.36 per diluted share in the Q2 2018 versus a loss of $19,000,000 in the comparable quarter last year. The adjusted income varies from our net income, primarily due to a $10,000,000 after tax mark to market loss on open crude oil hedge contracts and foreign exchange losses of 7 tax.
At June 30, 2018, Murphy's total debt amounted to $2,800,000,000 excluding capital leases or 38% of total capital, while net debt amounted to slightly less than 30% of capital at $1,900,000,000 As of June 30, we had no outstanding borrowings under our $1,100,000,000 revolving credit facility. Worldwide cash and invested cash balances totaled $900,000,000 at quarter end. In keeping with our stated goal of living within cash flow, Slide 8 is a snapshot of our 6 month cash flow statement presented on a GAAP basis and displays how certain one off items negatively impacted us during this period. Primarily two things. Number 1, the $35,000,000 withholding tax on funds repatriated from Canada earlier this year.
And number 2, an inordinate amount of 2017 CapEx being paid in 2018 led to a greater than expected reduction in our cash balances at June 30. As we begin the second half of the year with $900,000,000 in cash on our balance sheet, we expect that we will rebuild a good portion of this first half deficit over the remainder of the year given current pricing, production and CapEx mechanics. With that, I'll turn it over to Roger to review the company's operations.
Let's move to Slide 10. During the quarter, we brought 26 wells online in the Eagle Ford Shale, 10 in Karnes, 10 in Catarina and 6 in the Tilden area. In the second half of twenty eighteen, plan to bring an additional 13 operated wells, all in Catarina for a total of 45 operated wells online this year. 10 well pad in Karnes had an average IP30 of 17.50 barrel oil equivalent per day, 7 of these wells produced at the highest peak rates that Murphy's ever achieved in the Karnes to date. The 24 hour peak rate for the Lower Eagle Ford Shale was some 2,300 barrels of oil per day, not BOE.
And while the average 24 hour peak rate for the Upper Eagle Ford Shale with some 1800 barrels of oil per day, again, not BOE. We have over 2 40 remaining locations in the Karnes area, including the Upper and Lower Eagle Ford Shale and plus our very successful Austin Chalk formation. We're also pleased with the encouraging results from staggered lateral tests in Catarina well as recent IP30 improvements in the Tilden area. Our team also continues to lower drilling and completion costs as well as operating expenses in this play. On Slide 11, in the Tupper Montney, we brought a 5 well pad online during the quarter.
We continue to be impressed with the outstanding well performance in the play, with these wells producing in line of our 18 Bcf type curve. In the Q2, our realizations in Tupper Montney were CAD1.84 per Mcf compared to an average AECO price of CAD1.19 per Mcf. During the Q2, we approved the Tupper Expansion project, the long term project adds 200,000,000 cubic feet per day of production beginning in late 2020. The project is expected to increase reserves by more than 400 Bcf. The expansion has strong economics with full cycle breakeven prices of CAD1.75 per Mcf.
Our assumptions are based on a very conservative AECO price of CAD2 in 20.20 with modest price increases to slightly above CAD3 in 2,030. Together with these assumptions, our new tariff and outstanding execution, we're able to deliver an income producing long term project expected to generate approximately $125,000,000 of free cash flow per year every year going forward. This project, under this set of assumptions, has an NPV-ten of over $600,000,000 with an IRR of over 25%. In our Kaybob area on Slide 12, we brought a 4 well pad on at the 3 of 33 online at Kaybob West late in the 2nd quarter. Wells are currently producing with initial rate approaching 800 barrels equivalent per day at 80% liquids.
We're allocating $50,000,000 of additional capital to the KBOP due to outstanding execution and production results and achieving lower and drilling completion costs well ahead of schedule. We now plan to drill and complete 25 wells and bring a total of 27 wells online during the year. With this plan, we're on track to deliver a 4th quarter exit rate of more than 11,000 barrels equivalent per day. We continue to reduce the remaining drilling carry, which will be completed by the end of next year. Slide 13.
In our Kaybob Duvernay asset, we increased production by 35% from last quarter and more than 100% from Q2 of 'seventeen. Since assuming operatorship of this asset 2 years ago, we've increased production by approximately 500%. At the same time we've been growing production, we've been significantly reducing drilling and completion costs. Early in the year, we laid out an aggressive well cost target to reach $6,500,000 development costs by end of year 2019. I'm pleased to say that we met that target in the Q2 of this year, which is more than 1 year ahead of plan.
We've also drilled an industry leading pacesetter well and completed for only $5,900,000 We expect cost to continue decreasing as we move the asset further into development mode. Slide 14. In the Gulf of Mexico, we finished the recompletion of Medusa 5 well during the quarter. The recompletion proved the producibility of a new zone in that field. In Malaysia, assets continue to be reliable free cash flow generating business.
Our Kikei DTU Gas Lift project is now approximately 95% complete, and we expect to bring it online in the Q3. At South Axis Field, we mobilized a jackup rig for some in field drilling campaign and our Block H Roton floating LNG project remains on track with first production in 2020. In Vietnam, it's expected to receive full approval to signal operatorship and increase our working interest to 40% in the Block 15105 well. Our development team continues to progress the field development plan for the LDV field and we expect to declare commerciality by year end. Slide 15, returning to successful exploration.
As we previously discussed, Murphy implemented a new focused exploration strategy. I'm very pleased that the first well drilled on this new strategy, the Samurai 2 appraisal well, is a success. As expected, we encountered thicker and better quality sand in the well than original Samurai I well. So far, we've encountered more than 150 feet of pay, which is primarily from 2 zones and have sampled high quality oil from each. We're also encountering additional pay zones that have not present Samurai 1 well.
As a result, we extended the planned total depth of the well over 32,000 feet and are currently logging deeper integral. Along with our partner, we are currently evaluating options to drill the sidetrack into the adjacent block to the south to further appraise this discovery. We've exceeded our pre drill resource estimates of 75,000,000 barrel equivalent. However, we could see upside if the planned sidetrack as well as current evaluation proved successful. Slide 16.
For the remainder of 2018, we have an exciting exploration program with 3 exploration wells. We expect to spud the Gulf of Mexico Kinkade well late in the Q3 and the Vietnam LDT and Mexico Plan K wells in the Q4. Success at one of these wells will be very meaningful to our company. Slide 17. Finally, I'd like to leave you with a few points this morning.
Our second quarter results demonstrate the advantage and strength of our diversified portfolio, allowing us to increase our full year production guidance for 2nd consecutive year quarter, I'd rather say. In our offshore business, we successfully returned to exploration with the Samurai-two well. On our onshore business, we achieved record low drilling and completion costs in the Eagle Ford Shale and Kaybob Duvernay. In keeping with our long standing focus on shareholder returns, we once again paid a competitive dividend to our shareholders while achieving our goals on cash returns over invested capital. Looking ahead to our long term plan, our production remains on track to deliver 10% to 15% CAGR over the next 4 years while spending thin cash flow.
So I'd like to thank our people who successfully execute our strategy every day for us here at Murphy Oil. And that's all my comments today, and we'd like to now take your questions at this time. Thank you.
Thank you. Ladies and gentlemen, we will now begin the question and answer session.
Hello? Roger, is that you?
I'm sorry, I didn't hear anything. Yes, Roger here. Good morning. Strange price action off the quarter, but I thought your results were good and the guidance was certainly favorable.
Can you walk us through
Yes, Roger, you're exactly right.
Can you walk us through how you're looking at the Gulf of Mexico exploration? And I'm just curious, the Kosmos transaction announced earlier this week, did you look at it? Or is that the type of thing you might be interested in?
We really don't discuss ins and outs of business development too much, but you can safely say that any significant cash flow accretive, very good EBITDA multiple asset in the Gulf of Mexico that Murphy is involved and looking at those as best we can because we feel that's the best way for us going forward with all the value we can add with our operating ability and our long term history of working in the Gulf of Mexico. In general, the Gulf of Mexico for us is really building up nicely. We're working with a new group of an exploration shop to deliver prospects to us, which we're drilling next to King Cake. We had this asset for a very long time, Samurai. We had to refigure all of our partners.
And when we talk about our exploration strategy, it's really so it's changed so much and so different now. We could just get people to recognize that. For example, we changed out all the partners in Samurai and brought in the new experienced holder in the area that has great success and great acreage position in the area. That's what we call working with better partners. Our next well at King Cake has involved a successful exploration shop that has over 78% success.
Through that, they're looking at the southwestern part of the Gulf and our teams are looking at the northeastern parts of the Gulf, building a nice portfolio to drill 2 or 3 wells every year that range in size from tieback on everything to tieback plus facilities if they're larger and are building a very nice position and tying that in and managing that with the same team in Houston and our Mexico Block 5, one of the most prolific blocks, probably some of the nicest prospects I've seen in my career. Then we have the Brazil upside in that same hemisphere. So, a lot of positivity positive action in the Gulf for us and momentum building in the Gulf. And we're very, very pleased with our Gulf of Mexico business.
Appreciate that. And then maybe just taking a quick look at the Eagle Ford Shale, you mentioned, if I wrote the number down correctly, 248 well locations. So I'm not sure if I got that right as we go through everything pretty quickly. But can you give us an idea?
Sorry? That's just Karnes, Roger. I think it's $240,000,000
Okay. Sorry about that. So 2 $40,000,000 in Karnes, you mentioned also the Austin Chalk. Can you give us an idea of maybe how that's evolved over the last several, at least quarters, if not years? And then maybe an idea of we hear from a number of the companies, the core keeps expanding kind of how your core in Karnes County and some
of the other parts has maybe expanded as you've delivered obviously record wells this quarter and continue to prosecute on that?
Well, we're doing very well and I think all of our acreage is prolific there. We've had some our best well ever is an Austin Chalk well there. And we have some 50 something locations remaining, which we're very happy about. It's just a matter of getting to them and staggered completions with that with the Upper Eagle Ford and Lower Eagle Ford and how best to minimize offset frac impacts, how best to drill a wine rack type design, which we're all over right now and all of our pads today are even in Catarina and Karnes are both drilling lower and upper Eagle Ford Shale with great success and just right to the curves that we have. And we I don't know about the core expanding.
We think of all of our acreage is core and I think it's pretty clear where acreage is located at its core. It's also a real misnomer that I have about 2 locations left there, which I think some people believe. I have 100 left and it's getting better all the time, down spacing all the time. And it's a great part for us to work in there. But other areas are working too.
Our Catarina in the oil weighted area is very, very successful. And our Kildon area is really coming on with lots of issues around staying in zone better, designing wells better, drilling longer laterals, more completion and a positive moves there. And all in all, it's a very good business and going to continue to be one for us for a long time.
All right. Thank you.
Thank you.
Your next question comes from Paul Chen with Barclays. Please go ahead.
Hey, guys. Good morning, Paul.
How are you doing? Doing very good. Hey, Roger, when you talk about the 2 40 in claims and if I'm looking at your presentation on Page 29, it seems like it's 325. Is that just the difference between the gross well and the net well for the working interest?
I would say so, Paul. Yes.
All right. And that you haven't talked anything about the Permian wells that you drilled early in the year. Are those wells that are being tied in or that you are still doing what that means? Is there any update that you can give us?
Paul, we drilled a couple of wells there. It didn't work out to our expectation there. And we have been really hard with capital allocation like it is, we had some capital there, but with a $20 advantage price over Permian to Eagle Ford, we felt like that through earlier part of the year, we moved some money down there and is involved in the capital that we have today. And but today in the press, you might have seen that one of the companies, FANG, has purchased acreage there, which touches our acreage that we purchased and lease sale there as a couple of years ago. So now we have to reevaluate that and they pay a lot of money for that acreage right next to where we work.
And this year, we were focusing our capital in Eagle Ford due to the incredible price advantages that we have there over the Permian. And so it's that's the situation. I find it incredible that we ask a question about 2 wells and a permanent one. We have a significant discovery in the Gulf of Mexico, Paul, but that's your question.
Yes. We still want to get an update that on Mexico, you're going to drill 1 well in the 4th quarter. And for the next year that in total, how many well you're going to drill in Mexico or that is the only well?
That is the only well planned at present. We have many, many prospects there. We have many amplitude paid prospects with direct hydrocarbon indicators around our first well, and we have some very nice sub salt prospects there as well. And we'll be drilling additional wells there in the future. But we need to get our first well in and to get that executed.
And I'm sure we'll base on that success, and we're hoping for that success. I believe it will be successful. We'll be looking at other wells to drill there.
But still any kind of current plan has been formulated?
We are taking seismic there with our partner group. I think we're over 65% with the seismic across all the blocks and a very large seismic acquisition. And my big partner there doesn't like me to talk about it. So it's we're very, very proud of it and it's a great position for us and we'll be disclosing those plans at a later
time. So we assume that it's probably any drilling is probably 2020 or 2021, given that you're
That's the safe assumption on that, Paul.
Okay. And then a final one, I know you're early on. 2019 CapEx versus 2018, should we assume to be up somewhat or a lot more or flat? Any kind of direction that you can give?
What was the question about 2019, Paul? What was your
CapEx outlook versus 2018? Is it
going by that? Paul, your conference hasn't even come yet. We haven't even got football season going real football. And it's going to be in the 1, 2 range probably, Paul, I don't know. We're standing by our long range plan, which is about that number.
I don't see it to be significantly different from that. And we'll be disclosing that in January. So but that's there's nothing in our long range plan that I don't see. It won't be the same or positive at this time. Fine.
Thank you.
Your next question comes from Arun Jayaram, JPMorgan. Please go ahead.
Good morning, Arun. Hi, John. Good morning.
I'm doing well, sir. Roger, I'm wondering if you could spend a little bit more time on Samurai on Page 15 of the slide deck. It looks like the aerial extent it could kind of extend into block 476. I was just wondering if you could give us your thinking about the sidetrack and down the road potential development options for the discovery?
Well, thank you for asking. No one's asked about it yet. We appreciate at least someone closing on the room. Yes, I mean, you can see all the green dots and it's quite clear there could be a very large structure here. We're very happy with the results we have.
We have a commercial discovery today with what we found and have many, many flowback options. We are contemplating and planning a side chat with our partner. It's a matter of the displacement. We're actually involved with some logging now that could pick what's the best depth and asthma to drill that. It's highly likely that the sands do sticking in the 4 76 block that we feel good about, so to our partner.
And I would be surprised if we didn't do a sidetrack here. And there is a possibility of larger accumulations we laid out originally a 75,000,000 barrel mean with an upside to 200,000,000. I mean, 200,000,000 is quite a big number, but it's not out of the question with what we have. And but we're very pleased with 75,000,000 barrels. And I can tell you that your NAV estimate and your report for that on a per share basis is probably about what we lost today.
So yes, you're spot on with that share price improvement. It's a nice discovery, super economic discovery, great full cycle returns and low F and D costs with just what we have today. So we're very, very excited about it.
Yes. And Roger, I don't know
if you could just walk us through what are potential development options. I know
a front runner is somewhat in
the area. Just talk us through what could timing and what you're thinking about for development options here?
Well, what we're seeing, we're highly likely to have to drill another appraisal well because we've been successful. And a lot of these small tiebacks are just drill 1 zone and bring them back. So price is drilling well a year finishing a year from now. Of course, that's what we're partners on all that. And then if we sanction at that time, we could have an early production 2 well system flowing in 2021, mid- to 3rd quarter 2021, some of that fact.
The Christmas trees for something like this takes 18 months. If we're able to have continued success and want to buy some long lead items early, we can move that forward a bit, I suppose. Again, we have to work with our partners on that. And we would probably be going back to there are 3 different host facilities. We have one of our own.
Our partner has 1, of course, some nearby, a new facility being built by some other folks. So there'll be a lot of options for tiebacks. And it would be that type and it could turn into a facility here, but that's not until we get a lot more information and get it ahead of this mean number where we are, we're just we're talking tieback game here. And but all these are very, very accretive and very, very income providing and great F and D metrics for our company.
Great. Roger, you did increase your capital allocation, I think, to Kaybob. What's your current thinking about that play? And thoughts on how active you could be here in 2019?
Well, I mean, I was told when I was a young man, if you're going to pay to keep drilling. And that's what we do at Samurai and that's what we do there. And it's going very, very well. This is part of a long term business that we bought there. We bought this at the total collapse in February of 2016.
At that time, this involved a very low amount of money. And let's go back up to what the goal was. The goal was there to replace the production from Syncrude at lower operating expenses as an operator and lower total cost between DD and A plus OpEx. At the end of the year, we would have done that with the Placid asset plus us. We would accomplish all of our goals, hitting all of our targets.
In that deal with the low amount of money paid upfront was a carry that we needed to drill wells in certain locations over a certain period of time. It had a cost a price oil price index associated with that that allowed that carrier to be spent all the way to 2020. Oil prices are great higher, requiring the capital carry to be spent now between now and the end of 2019. So we're just executing that original purchase. We held the money out of CapEx until the team showed further ability to execute.
The team executed all the way through. We have this carry. We're very successful and we put capital in to get this carry behind us and then put us in a situation of perfect capital allocation Roger, my final question is kind of a housekeeping question. I was looking at
Hi, Roger. My final question is kind of a housekeeping question. I was looking at your guidance for 3Q. The pricing in Malaysia is a little bit light of our model, just given how it's tied to Brent, particularly at Sarawak. Could you just give us some color around that?
That? That all involves capital spending timing and liftings and loadings as per the capital for the quarter. And we base this usually on a these assets in Malaysia usually about a $375,000,000 to $425,000,000 positive over Brent, then we work through the PSC. But I still would say even after all PSC effects, we're probably ahead of WTI. And Kelly has given me the number now.
But so on a realized price basis that has a quarter has to do with timing of capital spend projects and production that we're doing and these things move around. But I still think these realized prices are pretty good compared to big hunk of the United States. All right. Fair enough. Thanks, Roger.
Okay. Thank you.
Your next question comes from Mohammed
Kahuloum, Raymond James. Please go ahead.
Thanks for taking the question. So, Obrador won the election in Mexico recently. And before the election, he had made several comments about his opposition to the country's energy reform. Since his victory, have
you guys heard anything new from the government?
Well, we did receive an approval that we highlighted in our highlights today, and we continue to progress that along. I think in recent statements by this leader, he's now pulling back a lot of that rhetoric and saying he's positive about this energy. There's some 50 plus wells to be drilled there with enormous amount of capital to be spent in the country and personnel to be hired in various support of these vessels. And it's our view that his latest statements have been recanting a lot of that and back supporting the PSC not PSCs, but the leases that we have today. I'm not sure about where the future leases will be, but we have ours.
We feel good about it. We feel good about what we're hearing, And we're progressing through a approval process to drill. And we're moving full on with that and do not see anything in the election to prevent that at this time.
So in other words, you guys don't think his victory is really going to change your plans anyway and you're pretty confident that the new government was going to respect the permit?
Yes, we are.
Okay. That's all for me. Thank you.
Okay. Thank you.
Your next question comes from David Meats, Morningstar. Please go ahead.
Hey, good morning. In response to an earlier question, you guys talked about low F and D cost for
the potential development of Samurai. And I was just wondering if
you can put a range on
what you consider low for F and D at this point?
Well, we placed in our original program of all of our exploration wells as a targeted F and D of $15 And even on an example of this, if the field is only $50 then the F and D would be not even $15 a barrel. So there's no outcomes here greater than like $12 at this time. So we feel that a bigger development would be around $1,000,000,000 growth and we feel that a smaller development would be around 500,000,000 dollars So the $15 F and D, which is outstanding, which means that the ultimate DD and A of the project would be 15 is good and industry leading and as good as anything there is onshore, I can tell you. And so that's where we are. I'd say this would be in the 10% to 15%, 15% at the ultimate top.
And that's industry leading to.
Okay. That's super helpful color. So in the I guess
the exploration upside case where you have
the development of Samurai or other discoveries like Samurai.
Is there any kind of scenario where
that exploration success and the resulting development justifies going away from living within cash flows for
a short period while you ramp up on the development?
I suppose that could happen. We have lots of capital allocation options and the different ways to execute these projects where we may not own a facility if a facility is built and things of that nature. But that's when things happen and things get sanctioned, you make decisions on capital allocation. We surely can't afford it. And so that would just have to be with the timing at that particular time and how our other assets are performing.
But we're not going to hold this back if it's a very successful project that we believe we have at this time. Okay. That's super helpful. Thanks a lot. Thank you.
There are no further questions from our phone lines. I would now like to turn the call back over to Roger Jenkins for any closing remarks.
That's all we have today. Had a good quarter.
We're happy with it. We'll be right back here next time, I think, on Halloween Day, lowering costs, raising EBITDA, drilling successful wells and hitting all our targets again. And we appreciate people calling in today and see you next time. Thank you.
Ladies and gentlemen, this concludes your