Berry Corporation (bry)

Good day. Thank you for standing by. Welcome to the Barrett Corporation Second Quarter 2025 earnings conference call. At this time, all participants on the listen only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 1-1 on your telephone. You will then hear an automated message advising your hand is raised. Please note that today's conference may be recorded. I will now hand the conference over to Speaker Hov, Chris Dennison, Director of Investulations. Please go ahead.

Thank you, Livia, and welcome everyone. Thank you for joining us for Barry's Second Quarter 2025 earnings call. Yesterday afternoon, Barry issued an earnings release highlighting our quarterly results. Speaking this morning will be Fernando Araujo, our CEO, Danielle Hunter, our President, and Jeff Maggots, our CFO. Our website has a link to the earnings release and our updated investor presentation. I would like to call your attention to the Safe Harbor language found in the earnings release. The release, the presentation, and today's discussion contain certain projections and other forward-looking statements within the meaning of federal securities laws. These statements are subject to risks and uncertainties that may cause actual results to differ materially from those expressed or implied in these statements. These include risk and other factors that are disclosed in our filings with the SEC, including our quarterly report on Form 10Q, which will be filed shortly. We have no plans or duty to update our forward-looking statements except as required by law. Please refer to the tables in our earnings release and on our website for reconciliation between all adjusted measures mentioned in today's call and the related gap measures. We will also post the replay link of this call on our website. With that, I will turn the call over to Fernanda.

Thank you, Chris, and good morning everyone. Welcome to our second quarter earnings call. We continue to successfully execute our 2025 plan. Our strategy is focused on balance sheet strength, high return development projects, and delivering capital and operational efficiencies. Despite ongoing microvolatility, our 2025 guidance remains unchanged. Our business strategy is anchored by our high return assets, stable production base, low capital intensity projects, and inventory depths. We believe this unique combination of attributes provides a competitive advantage. Our ability to execute our strategy is supported by the fact that we have the permits in hand to fully support development projects into 2027. As tier one inventory becomes increasingly scarce across the industry, I want to highlight that there is inventory rich. In California, we have thousands of locations across this high return, low capital intensity conventional basin, including approximately 500 pod locations with 200 side tracks. In Utah, our horizontal delineation program is progressing, and we expect to unlock upside across our position. Turning to our results, we are on track to generate meaningful free cash flow for the year. Our strong hedge position provides visibility and protects our production outlook. For the remainder of the year, we have 71% of our expected oil production hedged at approximately $75 per barrel of Brent. During the quarter, we paid down $11 million of debt, bringing our year-end to date debt reduction to $23 million. In California, activity continued to ramp with 16 wells drilled in the second quarter, up from 12 in the first quarter and six in the fourth quarter of last year. We expect full production to be brought online within the quarter, which will increase California's production through the second half of the year. In Utah, we finished a significant portion of the completion activity earlier than expected for our horizontal pad in the second quarter. We successfully tracked 64 stages per well on average. We delivered meaningful cost savings of approximately $500,000 per well, supported by our fuel cost advantage and the use of a dual-fuel fleet in drilling and fracking activities. We also utilized approximately 50% produced water in our frags, which contributed to the savings. Our current cost outlook is approximately $680 per lateral foot, which is approximately 20% lower than the average of our six non-operated horizontal wells. We began flow back on our first two wells in August, and the remaining two wells are expected to be online later this month. For our non-operated wells, we continue to see strong results with production exceeding our pre-drilled estimates, pointing to an average EUR of about 55 to 60 barrels of oil per lateral foot and supporting further delineation of our acreage. We believe our 100,000 acre position with high working interest has significant upside and provides long-term optionality in capital allocation and growth. In the fourth quarter, we'll be participating in an additional non-operated well just north of our acreage to test the castle peak formation. This well is expected to be on production in November, and assuming success, we see longer-term potential for multi-bench cube development. In summary, our priorities remain unchanged to generate sustainable free cash flow, reduce debt while returning dividends, and create long-term value by investing in our deep inventory of high-return portfolio. With that, I will turn the call over to Dani.