Battalion Oil Corporation

to the Battalion Oil Q2 2022 earnings call. As a reminder, today's conference is being recorded. Now I'll turn it over to Battalion Oil Corporation's Director, Finance and Investor Relations, Chris Lang, to open the call. Mr. Lang, you may begin.

Good morning. I'm joined by a few of my colleagues today that I'd like to introduce battalions chief executive officer Richard little our chief financial officer Kevin Andrews and our chief operating officer Daniel rolling. This conference call contains forward looking statements for a detailed description of our disclaimer see our earnings release issued yesterday and posted on our website. This conference call also includes references to certain non gap financial measures. Reconciliations of these non-GAAP financial measures to the most directly comparable measure under GAAP are contained in our earnings release announcement released yesterday. We have also published an investor presentation, which may be found on our website and will be referenced during this webcast. Now, our team will present a few scripted remarks followed by Q&A. And with that, I'd like to turn it over to Rich to start things off. Rich?

Thanks, Chris. It's great to be here this morning. Welcome, everyone, to our second quarter 2022 earnings call. I'd like to thank everyone who's taken the time to join us today. We really appreciate your interest in Battalion and the story we had to tell. The second quarter was an exciting one for us as we welcomed a return to growth. Over the course of the entire quarter, we put online five new wells, the first from our 2022 capital program, and saw our daily production begin to trend up as we exited the quarter. These new volumes are critical for us as we look to drive an increase in cash flow in the second half of the year. With much of our base production hedged coming into the year, our ability to participate in this higher pricing environment relied on our ability to bring on new volumes. Our results this quarter do a great job illustrating what happens when we execute. So, despite volumes remaining roughly flat quarter over quarter, we saw an adjusted EBITDA increase of over 50 percent. With a full quarter of production from these new wells ahead of us and our next three-well pad on track to come online late in the third quarter, We're building solid momentum as we accelerate into the second half of the year. Getting to this point hasn't come without its challenges, though. You've no doubt heard from operators and service providers across the energy sector on how supply chain disruptions and inflation have hit the industry hard this year. And like others, we felt these pressures, too. That's why it's important to remind you that we did factor some of this uncertainty into our original budgeting and capital planning process. While these market dynamics have received a significant amount of our attention this year and will continue to do so, we believe the steps we've taken in our planning process and our ability to capture capital and operational efficiencies leave us well equipped to continue executing on our plan without disruption while offsetting some of the inflationary pricing pressures that we've been seeing. As our activity levels continue to increase and our business continues to build momentum, it's important that we also emphasize our commitment to operating the right way. We believe we have a responsibility to our team, our industry, and the communities around us to operate in a safe and environmentally friendly way, and we back that up with our performance. So I'm proud to say over the last 12 months, we've had zero recordable incidents, and we've methodically reduced our flare intensity to below industry standards. We want to win, but we also want to do it the right way. Before I pass it off to Danny, I would also like to take this chance to highlight the joint venture we announced in May to develop a strategic acid gas treatment facility in Winkler County. This is a significant development for Battalion and one that checks every box. Operationally, the facility provides a comprehensive solution for our current and future processing needs with multiple expansion opportunities beyond phase one. Environmentally, we meaningfully reduce our environmental impact with the ability to fully sequester virtually all CO2 and H2S from our monument draw production. And then financially, we meaningfully reduce our operating costs while minimizing the incremental capital requirements of the company by utilizing an existing wellbore. This is a milestone agreement for us as we transition to a profitable growth and accelerate balance sheet improvements, and one that I believe sets us apart from our peers in the basin. Now I'd like to pass it over to Danny to continue providing some detail on the project and our operational results. Danny?