Koppers Holdings Inc. (NYSE:KOP) Q4 2017 Earnings Conference Call - Final Transcript

Feb 27, 2018 • 11:00 am ET

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Koppers Holdings Inc. (NYSE:KOP) Q4 2017 Earnings Conference Call - Final Transcript

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Presentation
Executive
Lance Lauck

of our team.

Implied in our 2019 projections are a cash flow of about $1.15 billion at the midpoint and represents almost two times our 2017 cash flow, and that's based upon a $55 and $3 NYMEX price in 2019. So, to summarize, this case demonstrates the company's flexibility to drive capital efficiency, our commitment to the balance sheet while projecting a material cash flow build in 2019.

This final slide summarize what we project will be a very exciting 2018. Let me summarize several of our key initiatives for the year. First off, production growth to about 40 million Boe total at the midpoint in 2018 with a year-end debt to EBITDAX of 1.4. Projected oil production mix of 42% to 45% with 100% growth in our Delaware production volumes compared to 2017. Our outspend is projected to be less than $90 million, and the proceeds from Utica and Black Diamond transactions are projected to cover two-thirds of that outspend. In Block 4, we're pursuing downspacing tests in the Wolfcamp A of 12 equivalent wells per section, and we're also testing our first Wolfcamp C bench. And we continue to focus on margins with LOE projected at less than $3 per Boe. In closing, we want to thank our employees for their strong contributions to the success of PDC.

And with that, I'll turn it over to the operator for Q&A.