Rosehill Resources Inc. (NASDAQ:ROSE) Q3 2019 Earnings Conference Call - Final Transcript

Nov 08, 2019 • 11:00 am ET

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Rosehill Resources Inc. (NASDAQ:ROSE) Q3 2019 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Ladies and gentlemen, thank you for standing by, and welcome to the Rosehill Resources Third Quarter Conference Call. At this time, all participants are in a listen-only mode. [Operator Instructions]. I would now like to hand the conference over to your speaker today, Mr. John Crain, Director of IR. Sir, please go ahead.

Executive
John Crain

Thank you, Marjolin. Good morning, everyone, and welcome to today's conference call to review Rosehill Resources' third quarter 2019 operating and Financial performance. After I cover the forward-looking statements, Dave French, our President and Chief Executive Officer will provide opening comments and key highlights for the quarter.

Following Dave, providing additional details on our operational and financial results will be Bryan Freeman, Senior Vice President of Operations; Brian Ayers, Senior Vice President of Geology; and Craig Owen, Chief Financial Officer. We will then have a question-and-answer session, and Dave will close the call with some brief comments. Also joining us today on the call is David Mora, Vice President of Commercial and Reserves.

I'd like to remind you that today's call includes forward-looking statements and certain non-GAAP financial measures. We believe our expectations are based on reasonable assumptions. However, a number of factors could cause results to differ materially from what we discuss. We encourage you to read our full disclosure on forward-looking statements in our SEC filings and the GAAP reconciliations included in yesterday's earnings release.

With that, I will now turn the call over to Dave.

Executive
Dave French

Thank you, John, and thank you to everyone for attending Rosehill's third quarter 2019 earnings call today. As in the comments in last night's earnings release, we were pleased with the execution in our third quarter, which was highlighted by a resumption of drilling activity and a return to production growth. We provided an early view of these operational results in September, we've built upon that performance with a strong finish to the quarter.

Total September production was over 23,000 BOEs per day. During that month, we achieved a Company record for total daily production as we work through our completions backlog, providing nice momentum as we finish the year. We're very active on technical efforts for both our Northern and Southern Delaware assets, as Brian Ayers will talk more about in a few moments. On the financial front, we achieved a meaningful enhancement to our liquidity profile, and Craig will give those details in the financial review.

Moving to the update. The third quarter of 2018 was characterized by returning to volume growth. Our production increase was driven by a strong pace of completions in Northern Delaware, supplemented by a few in the Southern Delaware. We also returned several simultaneous operations, or SIMOPs, shut-in wells in the North back to production, and expanded gathering capacity in Loving County at the Kyle 26.

Turning to our plans for the remainder of the year, we recently elected to continue a 1-rig drilling program through the end of the year by adding up to six drilling targets. These wells are currently planned