Strong Free Cash Flow and Cash Generation
Generated cash flow from operations before working capital of $1.3 billion and over $650 million in free cash flow for 2025, enabling $86 million in dividends, $231 million in share repurchases and $186 million of net debt reduction.
Improved Per-Unit Margins and Realized Price Premium
Expanded per-unit cash margin by roughly 20% to $1.64 per Mcfe. Achieved an average hedged realized price of $3.60 per Mcfe vs NYMEX Henry Hub average of $3.43 in 2025, a $0.17 (≈5%) premium supported by commodity mix, hedging and diversified transportation/sales portfolio.
Operational Efficiency and Drilling/Completion Productivity
Q4 all-in capital of $183 million; full-year 2025 capital invested $674 million. Operated 2 horizontal rigs in Q4, drilling ~225,000 horizontal feet across 15 laterals (avg ~15,000 ft/well). For 2025 drilled 69 laterals (avg 14,800 ft) and exceeded 1 million lateral feet drilled. Completed ~1,200 frac stages in Q4 and nearly 3,800 stages in 2025 with completion efficiency of 9.7 stages/day (Q4 ≈10 stages/day/crew), setting a new yearly benchmark.
Large, Flexible Inventory to Support Optionality
Built a growth-focused inventory of more than 500,000 lateral feet (≈100,000 lateral feet more than previously discussed), providing flexibility to either produce ~2.6 Bcfe/d with < $600M annual D&C capex (sub $0.60/Mcfe) or spend $650–700M in 2027 for continued growth into 2028.
Export and Marketing Strength
Benefited from strong U.S. export demand: LNG exports averaged >17 Bcf/day in Q4 (up 10% sequentially); waterborne ethane exports estimated at 622,000 bpd in Q4 (up >40% YoY and 24% sequentially). Marketing optimized sales during winter storm Fern (redirected ~5 Bcf/day of LNG feed gas domestically) and captured strong midweek pricing (February settled > $7/MMBtu).
Service Cost Stability and Contracting Wins
Annual RFP for 2026 drilling and completions returned pricing flat to slightly lower vs 2025; multiple long-term agreements (including a 2-year base electric frac fleet agreement starting 1/1/2026) provide service pricing stability and support peer-leading well costs and capital efficiency.
Capital Allocation and Shareholder Returns Framework
Purchased >33 million shares since 2019 (~$744 million invested); Board increased buyback capacity to $1.5 billion. Plan to increase quarterly dividend by $0.01 (≈11%) at next announcement; demonstrated balanced allocation between buybacks, dividends and debt reduction.
Safety and Environmental Actions
Delivered strong operational performance while achieving one of the best company safety performance levels; committing $15–25 million in 2026 for software and production facility upgrades and completing pneumatic retrofit project by year-end to reduce emissions.