Ring Energy, Inc.

Hello and welcome to the Ring Energy first quarter 2023 earnings conference call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then one on your telephone keypad. To withdraw from the question queue, please press star then two. Please note, this event is being recorded. I would now like to turn the conference over to Al Petrie, Investor Relations. Please go ahead.

Thank you, Operator, and good morning, everyone. We appreciate your interest in Ring Energy. We'll begin our call with comments from Paul McKinney, our Chairman of the Board and CEO, who will provide an overview of key matters for the first quarter. We would then turn the call over to Travis Thomas, Ring Street Financial Officer, who will review our financial results. Paul would then return to discuss our future plans and outlook before we open the call for questions. Also joining us on the call today and available for the Q&A session are Alex Dias, Executive VP of Engineering and Corporate Strategy, Marinos Baghdadi, Executive VP of Operations, and Steve Brooks, Executive VP of Land, Legal, Human Resources, and Marketing. During the Q&A session, we asked you to limit your questions to one and a follow-up. You are welcome to re-enter the queue later with additional questions. I would also note that we have posted our first quarter 2023 earnings corporate presentation on our website. During the course of this conference call, the company were making forward-looking statements within the meaning of federal securities laws. Investors are cautioned that forward-looking statements are not guarantees of future performance and those actual results or developments may differ materially from those projected in the forward-looking statements, and the company can give no assurance that such forward-looking statements were proved to be correct. Ring Energy disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. Accordingly, it should not place undue reliance on forward-looking statements. These and other risks are described in yesterday's press release and in our fillings with the SEC. These documents can be found in the Investors section of our website, www.ringenergy.com. Should one or more of these risks materialize or should underlying assumptions prove incorrect, actual results may differ materially. This conference call also includes references to certain non-GAAP financial measures. Reconciliations of these non-GAAP financial measures to the most directly comparable measure under GAAP are contained in yesterday's earnings release. Finally, as a reminder, this conference call is being recorded. I would now like to turn the call over to Paul McKinney, our chairman and CEO.

Thanks, Al. Welcome, everyone, and thank you for your interest in Ring Energy and for joining us today on our earnings call. The first quarter marked a positive start to the year, where we once again posted record sales volumes, adjusted EBITDA and cash flow from operations. Contributing to our results was a full quarter of production from wells brought online in December, new wells drilled and placed on production during the first quarter, and increased production from our re-completion activities. During the first quarter, we grew sales volumes 2% from the fourth quarter of 2022 to a record 18,292 barrels of oil per day. This was at the high end of our guidance range. Looking at year-over-year metrics, we grew sales volumes 106%, which primarily reflects a contribution of our stronghold acquisition. With respect to our capital spending activity during the first quarter, we drilled and completed two 1-mile horizontal wells in the Northwest Shelf, each with 100% working interest, and drilled and completed two 1.5-mile horizontal wells in the Northwest Shelf, one with a working interest of 99.8% and the other with a working interest of 75.4%. Additionally, we drilled and completed three vertical wells and performed six recompletions in CBP South, all of which having a working interest of 100%. We produced record adjusted EBITDA of 58.6 million during the first quarter that was 4% higher than the fourth quarter of 2022 and 65% higher than the same quarter for the previous year. We spent 38.9 million on capital projects, which was within our guidance range of 36 to $40 million. The result was $10.5 million of free cash flow that was 92% higher than the fourth quarter and marked our 14th consecutive quarter of free cash flow generation. We ended the first quarter with $179 million of liquidity, which was 151% higher year-over-year, although 5% lower than at year-end of 2022. As previously planned, during the first quarter we made the final deferred payment of $15 million for the Stronghold acquisition. We also made a payment of $3.5 million for post-closing adjustments. Although this contributed to a temporary net increase in borrowings of $7 million on a revolving credit facility during the first quarter, we look forward to accelerating debt reduction for the remainder of the year based on our current outlook. Turning to our capital spending outlook, we reiterate our plans to spend between $135 and $170 million during 2023. That includes a capital-efficient combination of drilling horizontal wells on our Legacy acreage and vertical wells on our CBP South acreage. This amount also includes planned spending for recompletions, capital workovers, infrastructure upgrades, leasing costs, and ESG-related projects. As you may recall, our budget plans for 2023 are based on WTI oil prices of between $70 and $90 per barrel of oil, and Henry Hub prices are between $2 and $4 per MCF. As in the past, we have designed our spending program with flexibility to respond to changes in commodity prices and other market conditions. With respect to our second quarter, we expect to spend $34 to $38 million to drill, complete, and place on production six to seven wells, perform targeted recompletions, and execute other capital projects. With respect to 2023 production guidance, we are reiterating full-year sales volumes of between 17,800 and 18,800 barrels of oil equivalent per day. Looking at the midpoint of our full-year guidance, we anticipate a year-over-year increase of approximately 48% and a 2.5% increase over fourth quarter 2022. For the second quarter of 2023, we expect sales volumes to come in between 17,900 barrels of oil equivalent per day and 18,400 barrels of oil equivalent per day. So with that, I will turn this call over to Travis to discuss our financial results and guidance in more detail. Travis?