SM Energy Co Q3 2021 Earnings Call - Q&A Session Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Leo Paul Mariani - KeyBanc Capital Markets Inc., Research Division - Analyst : Just wanted to kind of ask a little bit about kind of the plan as we head into fourth quarter. Clearly, it looks like you guys are kind of slowing down on the activity side here in 4Q. Perhaps, maybe you could talk a little bit about sort of rig pace and translate that into kind of what's happening in the field or you have -- you're dropping some rigs or are you temporarily dropping some crews, maybe there's some frac holidays? Can you give us a little insight into how you're slowing down here in 4Q? And then I guess just the other sort of related question there is, obviously, commodity prices are best they've been in a number of years. How do you think about that decision to kind of slow a bit as we head into the fourth quarter, given that the returns right now are so great and the payouts on these wells look great?

Question: Leo Paul Mariani - KeyBanc Capital Markets Inc., Research Division - Analyst : Okay. I appreciate it. I guess just wanted to ask about the Chalk. Certainly, some very strong well results certainly helped drive the great earnings here of late. Just wanted to get a sense of how you're thinking about what kind of phase of window to drill here in the Chalk. Obviously, you guys have got acreage that kind of ranges more on the oily side to the gassier side. Do you guys kind of have a preference? Are you thinking about drilling maybe some of the more gassy stuff, given that we have the highest gas prices we've had in a number of years here?

Question: Leo Paul Mariani - KeyBanc Capital Markets Inc., Research Division - Analyst : Okay. That's good to hear. And just lastly, can you talk about well costs in the Chalk as you move into development mode? Are you starting to see money on those wells? Can you comment on that?