The following is excerpted from the question-and-answer section of the transcript.
(Questions from industry analysts are provided in full, but answers are omitted - download the transcript to see the full question-and-answer session)
Question: Adam Gill - Ventum Financial Corp - Analyst
: Thank you. Good morning, gents. Two-part question for me. As production cools off through 2026 and you're working on waterfloods, what
kind of improvement do you expect in the decline rate over the year? And then with that, how much capital would be needed in 2027 to
main production in and around 38,000, 39,000 BOEs a day? improvement do you expect in the decline rate over the year? And then with
that, how much capital would be needed in 2027, the main production in around 38,000, 39,000 BOEs a day?
Question: Adam Gill - Ventum Financial Corp - Analyst
: Okay. Sounds good. Thank you and have a merry Christmas.
Question: Parvin Mamedov - Equinox Partners - Analyst
: Hi. I have a quick question about hedging. Could you go over the hedges you have for next year? And what is the expected gain at $60
oil?
Question: Parvin Mamedov - Equinox Partners - Analyst
: And that's included in your free cash flow guidance?
Question: Parvin Mamedov - Equinox Partners - Analyst
: Yeah. Thank you.
Question: Jesus Sanchez - Casta±ar Investments - Analyst
: Thank you very much. Just a question piggybacking on the waterflood question before. Why only 5% of the CapEx invested in waterflood
initiatives is because we are not seeing return on capital or we are not seeing good return on investment? Or is this because drilling is
considered to have a better return on investment right now?
Question: Jesus Sanchez - Casta±ar Investments - Analyst
: Understood. It's a matter of cost opportunity. Yes, I was just asking because waterflood has been very successful for the companies. So
great to see that part of the CapEx growing and growing year after year.
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