1
Develop our Wolfcamp shale oil resource play
We have a large, multi-year inventory of identified drilling locations that provide us the opportunity to continue increasing production and reserves at a competitive cost. Focusing on the Wolfcamp shale oil resource play allows us to use our operating, technical and regional expertise important to interpreting geological and operating trends, enhancing production rates and maximizing well recovery.
2
Operate our properties as a low-cost producer
We believe our concentrated acreage position in the Midland Basin enables us to capture economies of scale and operating efficiencies. Through our investment in field infrastructure systems, we have reduced drilling and completion costs, per-unit lease operating expense and our fresh water use. We also drill multiple wells from a single pad, which reduces facilities costs and surface impact. We operate 100% of our reserve base, which allows us to better manage timing and risk.
3
Acquire strategic and complementary assets
We continually review opportunities to acquire producing properties, undeveloped acreage and drilling prospects in our existing core area in the Permian Basin. We focus particularly on opportunities where we believe our operational efficiency, reservoir management and geological expertise in unconventional oil and gas properties will enhance value and performance. We remain focused on unconventional resource opportunities, but will also look at conventional opportunities based on individual project economics.
4
Further strengthen our balance sheet and preserve financial flexibility by operating our business at or near cash-flow breakeven
We believe that over the long term we will be able to maintain and grow our production substantially out of operating cash flow. We have the operational flexibility to adjust our capital spending upward in response to a continued commodity price recovery. Operating our business at or near operating cash flow allows us to preserve liquidity so that we will be able to accelerate execution of our long-term strategy.