Oasis Petroleum Inc.

Good day and welcome to the OASIS-Petroleum first quarter earnings results conference call. All participants will be in a listen-only mode. Should you need assistance, please signal a conference specialist by pressing star then zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then one on a touch-tone phone. To withdraw your question, please press star then two. Please note this event is being recorded. I would now like to turn the conference over to Michael Liu, Chief Financial Officer. Please go ahead, sir.

Thank you, Matt. Good morning, everyone. Today we are reporting our first quarter 2022 financial and operational results. Good to have you on our call. I'm joined today by Danny Brown and Taylor Reed, as well as members of the team. Please be advised that our remarks, including the answers to your questions, statements that we believe to be forward-looking statements within the meaning of the Private Securities Litigation Reform Act. These forward-looking statements are subject to risks and uncertainties that could cause actual results to be materially different from those currently disclosed in our earnings releases and conference calls. Those risks include, among others, matters that we have described in our earnings releases as well as in our filings with the Securities and Exchange Commission. including our annual report on Form 10-K and our quarterly reports on Form 10-Q. We disclaim any obligation to update these forward-looking statements. During this conference call, we will make reference to non-GAAP measures, and reconciliations to the applicable GAAP measures can be found in our earnings releases and on our website. We may also reference our current investor presentation, which you can also find on our website. With that, I'll turn the call over to Danny.

Good morning everyone and thanks for joining our call. Today we'll discuss our first quarter 2022 operating and financial results and give an update on our pending merger with Whiting Petroleum. But first, I'd like to take a moment to address and acknowledge our employees and also those of Whiting for their hard work and dedication. I've had the opportunity to visit with many of you over the course of the past two months and have been impressed across the board. We've got two strong organizations with talented people that will be stronger together. All the employees for both companies should be proud of their organization and accomplishments which have made this merger possible. Your efforts are very much appreciated and have put the future combined company in an excellent position for continued success moving forward. With that, turning back to the quarter, I'm pleased to report that the first quarter exhibited strong operational performance from both a volume and cost perspective. Volumes exceeded the high end of guidance by around 3%, reflecting good uptime as we've lowered the number of wells offline and strong performance from a group of Indian Hills wells that were brought online late last year. Simultaneously, price differentials were strong and most costs trended better than we modeled on both an absolute and per unit basis. As a result, we generated approximately $222 million of organic free cash flow over the first quarter. From a development standpoint, we completed two wells at the tail end of the first quarter with seven additional wells completed and expected to be cleaned out shortly. These wells were in the South Nessun area, between Wild Basin and South Antelope, and early performance is encouraging. As expected, our completion crew has departed, but is scheduled to return in June and work through the year end to complete the remainder of our program, which is about 30 additional wells. Turning our attention to the second quarter, I want to spend a moment discussing the severe winter storms which have affected so many in North Dakota in mid to late April. This truly was an extraordinary event, and unfortunately, along with the heavy snow and winds, came significant damage to power infrastructure, which has hampered the recovery effort. As a result, we are adjusting our second quarter guidance to reflect this impact, but are not adjusting the full year, as we believe our previous guidance appropriately reflects our expectations on a standalone basis. We're still in the process of bringing production back online and currently have about 65% of pre-storm volumes back up, with the remainder of volumes expected to be online by the end of the month. Again, our second half 2022 outlook is essentially unchanged from February, and excluding the impact of the storm, we have generally been trending at or better than planned. As we look forward, service pricing and availability do remain challenged. Fortunately, OASIS has been running a steady two-rig program and proactively worked with our providers to secure equipment and consumables required to execute our plan. As a reminder, OASIS budgeted for a 15% inflation from the first quarter to the fourth quarter of 2022. Frankly, at the time, we believed this was likely a conservative estimate, but as you heard from other EMPs, inflation is pervasive across most items, putting upward pressure on budgets and pricing. Based on our current outlook, we are still confident in our full-year capital guidance on a standalone basis, while recognizing subsequent quarters will see increased capital spending due to our development plan being weighted toward the second half of the year. I look forward to discussing combined OASIS and widening guidance after the deal closes. And speaking of OASIS and widening, work on the pending merger is going as expected, and we remain excited at the strategic, operational, and financial benefits of the merger. We believe the combination will result in a company with enhanced scale, better operating efficiency, and significant financial strength, which will deliver value across commodity cycles. Over the past couple of months, we've been on the road meeting with many of our shareholders, and we're very appreciative of the support we've heard. We're confident the combined company is stronger than either standalone entity and will deliver superior long-term value for our shareholders. As many of you are aware, the HSR waiting period ended April 18th and the S-4 was filed on April 28th. Once the S-4 is effective, the companies will mail proxies and set dates for special meetings to approve the transaction. We currently expect to close sometime in the third quarter and look forward to announcing our new company name and ticker at that time. In summary, it was a great quarter. I'm very pleased with our operating results and the progress we've made on transforming our organization. We remain committed to our core strategy, which revolves around return on and of capital, balance sheet strength, and being a sustainable operator. In short, we strive to be responsible stewards and strong capital allocators through the cycle. I'll now turn it over to Michael for some financial updates.