Strategic Execution and Operational Drivers
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Achieved record quarterly adjusted EBITDAX of $115 million, driven by a 75% year-over-year increase in net production following the integration of Antero assets.
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Transitioned from integration to active development in the Ohio Utica, utilizing a single-rig strategy to improve field efficiency and eliminate redundant infrastructure costs.
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Realized a 15% improvement in lateral feet drilled per day compared to the 2025 average, maintaining 100% geosteering accuracy through optimized bottom hole assemblies.
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Validated a revised completion design in Guernsey County that reduced costs by $50 per foot by increasing proppant loading and extending stage spacing.
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Increased midstream system utilization by 30% since Q1, with 70% of gross gas production now flowing through company-owned, low-cost infrastructure.
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Shifted production mix toward liquids, which increased per-unit revenue and margins despite higher associated processing and fractionation costs.
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Strengthened leadership depth by appointing Cary Baetz as CFO and Andrew Judge as SVP of Finance to support public company scaling and M&A execution.
Outlook and Strategic Priorities
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Reaffirmed full-year 2026 production guidance of 345-375 Mmcfe per day, assuming a steep ramp-up in the second half of the year.
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Maintained development CapEx guidance of $450-$500 million, with operational efficiencies expected to offset inflationary pressures in diesel and steel.
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Anticipate structural declines in controllable unit costs as higher volumes increase utilization of the 1 Bcf per day gathering capacity.
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Planning to turn seven wells in line during Q3, including a four-well pad in the Volatile Oil Window and a three-well pad in the Pennsylvania Marcellus.
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Evaluating deep dry gas Utica potential in Pennsylvania following the successful drilling of a 9,500-foot lateral and vertical pilot core.
Strategic Assets and Risk Factors
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Assumed a REX Zone 3 firm transportation contract via the Antero acquisition, providing critical flow protection and premium market access.
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Began taking NGL products in-kind in March 2026, resulting in an immediate uplift in propane price realizations.
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Maintained a disciplined hedging profile with 81% of remaining 2026 natural gas volumes locked in to de-risk project-level returns.
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Identified $25 million in annual synergy targets, primarily through infrastructure optimization and marketing improvements.
Q&A Session Summary
Strategic rationale for timing of oil versus gas well completions
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Management clarified that completion timing is driven by rig cadence and project-level hedging rather than attempting to time seasonal gas price fluctuations.
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The company prioritizes de-risking returns at the time of investment over speculative commodity price chasing.
Operational synergies and well performance on acquired Antero acreage
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Early results from the first three wells met or exceeded underwriting expectations, with new completion designs using 1,000 pounds more sand per foot than the previous operator.
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Significant capital savings are being realized by combining previously separate drilling pads to eliminate redundant road and pipeline construction.
Midstream utilization and third-party revenue opportunities
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Current system utilization is approximately 35%, providing significant headroom for growth without incremental infrastructure investment.
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Management expects third-party midstream revenue to remain small in the near term, prioritizing the system's role in lowering breakevens for internal production.
Status and evaluation of the deep dry gas Utica pilot
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The drilling and science phase is complete, but management noted that core analysis will take several months to finalize.
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A decision on when to complete the Utica well will be made after evaluating the data alongside the Marcellus wells on the same pad.
