Extraction Oil & Gas, Inc. (NASDAQ:XOG) Q1 2020 Earnings Conference Call - Final Transcript

May 11, 2020 • 04:30 pm ET

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Extraction Oil & Gas, Inc. (NASDAQ:XOG) Q1 2020 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Good afternoon. I am Julie, and I will be your conference facilitator today. I would like to welcome everyone to the Extraction Oil & Gas first-quarter 2020 financial and operating results conference call.

[Operator Instructions]

Please be advised that remarks today, including answers to your questions, include statements that the company believes to be forward-looking statements within the meaning of the Private Securities Litigation Reform Act. These forward-looking statements are subject to risks and uncertainties that could cause actual results to be materially different from those currently anticipated. Those risks include, among others, matters that the company described in its financial and operating results news release issued this afternoon and in its filings with the Securities and Exchange Commission. Extraction disclaims any obligation to update these forward-looking statements.

While the company believes these forward-looking statements are reasonable, they are subject to factors such as commodity prices, general economic conditions, competition, technology and environmental and regulatory compliance, the company's drilling schedules, capital plans and other factors that may cause these results to differ materially. I would now like to turn the call over to Louis Baltimore, Extraction's director of investor relations.

Executive
Louis Baltimore

Thank you, and good afternoon to everyone. We're glad you could join us today for our first quarter earnings call. With us today on the call, we have Matt Owens, our President and CEO; and Marianella Foschi, our VP of Finance.

I'd like to remind you that today's call, in addition to the aforementioned forward-looking statements, also includes a discussion of certain non-GAAP financial measures. Please be sure to read our full disclosure on forward-looking statements and GAAP reconciliations in our earnings release and in our filing on Form 10-Q, which we provided earlier today after the close of trading.

I'll now turn over the call to Matt Owens, our President and CEO, to quickly touch on the quarter and provide some additional details on our go-forward operational plan.

Executive
Matt Owens

Thanks, Louis. Good afternoon, everyone. Welcome to our first quarter earnings call. I'd like to quickly touch on our first quarter results and our thoughts about the future as it relates to the COVID-19 pandemic and turbulent commodity prices. Then I'll turn it over to Marianella Foschi, our VP of Finance, to talk more about our liquidity position.

Extraction is known for having some of the best acreage in the DJ Basin and for an operations team that uses outstanding management practices to safely develop those assets. During the first quarter, our ops team once again delivered as we successfully drilled 34 gross, 25 net wells with an average lateral length of 2.3 miles. We completed another 28 gross, 23 net wells with an average lateral length of 2.3 miles, and we turned to sales 13 gross, 12 net wells with an average lateral length of 2.1 miles.

On our last call, we told you about our first set of 3-mile wells we turned online in Broomfield. These wells have produced at a peak 90-day rate of approximately 1,500 BOE per day