Meager, Meager Daily Activity Report -- July 27, 2017

Active rigs:

$49.12	7/27/2017	07/27/2016	07/27/2015	07/27/2014	07/27/2012
Active Rigs	60	35	73	193	207

Seven permits renewed:

• Petro-Hunt (6): six Maverick permits in McKenzie County
• Denbury: one CHSU ML permit in Bowman County

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COP 2Q17 Earnings Conference Call

Link here: https://seekingalpha.com/article/4091576-conocophillips-cop-q2-2017-results-earnings-call-transcript?part=single.

Asset sales program this year, update

• closed the previously announced Canadian transaction
• announced the sale of their San Juan Basin and Barnett shale assets
• announced an agreement for the sale of our Panhandle assets
• progressing on the sale of their Anadarko position
• asset sales: $16 billion this year

Asset sales proceeds: to include (maintaining) shareholders distributions)

Operations

• made money on $50 Brent
• fourth consecutive quarter where operating cash flow more than covered our CAPEX and dividend
• able to generate free cash flow at oil prices in the $45 - $50 / bbl range

Operations continued

• plays mentioned in this order: Eagle Ford, Bakken, Permian, Barnett, Niobrara
• 12 development rigs: Eagle Ford (5), Bakken (4), Permian (3)
• recently added a sixth rig in the Eagle Ford

Q&A

Q: great question: proceeding too quickly in unconventional?
A: COP agrees; COP is not moving into manufacturing mode until they understand the geology/completion strategies better, but that doesn't mean they are slowing down

Q: Permian or Eagle Ford
A: Eagle Ford infrastructure in place; not so, in the Permian; in the Permian, COP has to make additional significant commitments to infrastructure in order to expand there

Q; manufacturing mode, when?
A: 2019, most likely; possible as late as 2020

Q: flexibility if oil trends down again?
A: yes

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Sophia In Southern California