Aug 13, 2026 earnings call — Powder River Basin drilling and production guidance
Company provided first production guidance for second half 2026, with midpoint showing high teens production growth and almost 200% oil growth.
Revenue $0.0B · EPS $0.23
Key quotes
"We have started to execute our development plan as expected and anticipate meaningful quarter-over-quarter production growth through the remainder of 2026, primarily driven by crude volumes in the Powder River Basin."
"As a result of the progress we have made across the portfolio, for the first time, we are providing production guidance for the second half of 2026."
"That said, we're very comfortable we can execute our plans while staying within our target leverage level of 1.5x EBITDA."
Analyst Q&A 1
guidance, gas maintenance, hedging
Q (Anthony Perala · Punch & Associates): He asked how the company will give guidance into 2027 and beyond. He also asked for details on Pennsylvania gas maintenance and production declines, hedging for a possibly warmer winter, the Powder/ Parkman sell-down and well timing, rig availability, and talks with other operators.
A: They said full year '27 guidance will come in the first quarter of next year before year-end '26 results and will be refined throughout the year with quarters. On Pennsylvania gas they said the operator curtailed volumes when netbacks were sub-$2 and they maximized production when realized prices were almost $5.50 versus $1.80; because curtailment came from increasing gathering line pressure they cannot precisely split natural decline from the impact of curtailment, and they expect depletion mode until the fourth quarter of this year when incremental volumes will appear. They said they target 50% PDP hedged over the next 18 months using collars for gas and have no plans to exceed 50% coverage; on Powder they sold Parkman working interest from mid-90s into the low 70s to improve returns and mitigate risk, captured rig availability to move 3 wells earlier, and see about 13 rigs running in Campbell and Converse with 9 on shales and 4 on sandstones.
"Yes, Anthony, we target -- in terms of volume coverage, as I've mentioned in previous calls, we target 50% PDP hedged over the next 18 months." — J. Williamson (CFO)