EP Energy Corporation (NYSE:EPE) Q4 2018 Earnings Conference Call Transcript

Mar 15, 2019 • 10:00 am ET


EP Energy Corporation (NYSE:EPE) Q4 2018 Earnings Conference Call Transcript


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Good morning and welcome to EP Energy's Fourth Quarter and Year End 2018 Results Conference Call. All participants will be in listen-only mode. (Operator Instructions) Please also note, today's event is being recorded. At this time, I would like to turn the conference over to Mr. Jordan Strauss. Sir, please go ahead.

Jordan Strauss

Thank you, operator, and good morning, everyone. Thank you for joining us today for EP Energy's fourth quarter and year end 2018 financial and operational results conference call. I hope you've had a chance to review the earnings release and the supplemental presentation we published yesterday. The earnings release and presentation are available in the Investors Section of our website at epenergy.com. Also, please note, we intend to communicate our key points on this call today and will not be hosting the Q&A session.

I'd like to remind everyone that on today's call we'll discuss forward-looking statements and certain non-GAAP financial measures. We encourage everyone to read our full disclosure on forward-looking statements and GAAP reconciliations, which can be found at the end of the Company's earnings release and our documents on file with the SEC. These documents are also available on our website.

Joining me on the call this morning are EP Energy's President and Chief Executive Officer, Russell Parker; and Senior Vice President and Chief Financial Officer, Kyle McCuen.

And with that, I'll turn the call over to Russell.

Russell E. Parker

Thanks, Jordan, and good morning, everyone. Thank you for joining the call and your continued interest in EP Energy. For today's agenda, I'm going to start by reviewing a summary of our 2018 results and performance of our asset program. Kyle will then go through some of the key financial results and discuss our 2019 outlook. We also plan to do something a little different than previous calls and refer to certain slides to make sure that key points we want to make about each slide or understood. But before we get into the slides, I'd like to make a few remarks to explain how we adapted to this volatile commodity price cycle that came about in the second half of 2018. We've been maintaining a lower net completion count per month during the fourth and first quarters compared to prior period. We've also been utilizing our existing drilling rig fleet to build our DUC inventory, such that the company can quickly take advantage of commodity price changes in the future.

With all that said, there are few things we will not change. We will maintain our focus on capital efficiency, building off of the successes and completion design improvements seen in 2018, as well as expanding our horizontal program in Northeastern Utah. To that end, Slide 5 and 6 highlight how we delivered on driving down LOE and Cash G&A, while maintaining production flat from 2017. We refreshed the Northeastern Utah as horizontal cumulative oil production chart again this quarter. On Slide 7, you can see these two horizontals are still performing quite strongly. We expect to