Amplify Energy Corp.

Welcome to Amplify Energy's first quarter 2022 investor conference call. Amplify's operating and financial results were released yesterday after market close on May 4, 2022 and are available on Amplify's website at www.amplifyenergy.com. During this conference call, all participants will be placed into listen-only mode. Today's call is being recorded. A replay of the call will be accessible until Thursday, May 19th by dialing 855-859-2056 and then entering conference ID number 6891368 or by visiting Amplify's website at www.amplifyenergy.com. I would now like to turn the conference call over to Jason McGlynn Senior Vice President and Chief Financial Officer of Amplify Energy Corp. Please go ahead, sir.

Good morning and welcome to the Amplify Energy Conference call to discuss operating and financial results for the first quarter of 2022. Joining me on the call today is Martin Wilshire, Amplify's President and Chief Executive Officer. Before we get started, we would like to remind you that some of our remarks may contain forward-looking statements, which reflect management's current views of future events and are subject to various risks, uncertainties, expectations, and assumptions. Although management believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to be correct and undertakes no obligation and does not intend to update these forward-looking statements to reflect events or circumstances occurring after this earnings call. Please refer to our press release and SEC filings for a list of factors that may cause actual results to differ materially from those in the forward-looking statements made during this call. In addition, the unaudited financial information that will be highlighted here is derived from our internal financial books, records, and reports. For additional detailed disclosure, we encourage you to read our Form 10-Q that was filed yesterday afternoon. Non-GAAP financial measures may be disclosed during this call. Reconciliations of those measures to comparable GAAP measures may be found in our earnings release or on our website at www.amplifyenergy.com. During the call, Martin will first provide an update regarding our Southern California assets, followed by our first quarter highlights and revised full-year guidance. I will then discuss the first quarter results in detail and provide updates to our hedging program, balance sheet, and additional items regarding guidance for the remainder of the year. Martin will then deliver final comments regarding performance during the quarter, current projections, and strategic goals. Following our prepared remarks, we'll have a question and answer session.

Before we get into the quarterly results, I would like to provide an update regarding the progress we have made toward returning our Southern California assets to production. During our most recent earnings call, I discussed the approvals required from PHMSA and the Army Corps of Engineers proceed with the permanent repair plan for the pipeline. In mid-April, we received approval from PHMSA for the permanent repair plan. We are now working cooperatively with the Army Corps of Engineers to obtain the remaining permit to commence repair operations. Although we cannot predict when we will receive approval from the Corps, we expect that within three to four months from the approval date, we can complete the PHMSA-approved repairs, satisfy the regulatory requirements to safely restart the pipeline, and return the platforms to production. Now onto the quarter. Production for the first quarter averaged approximately 20,400 barrels of oil equivalent per day, down slightly from 20,800 barrels of oil equivalent per day in the full quarter of 2021. First quarter adjusted EBITDA of approximately $24.9 million, exceeded internal projections, and was an increase of approximately $14 million from the previous quarter. This increase was primarily attributable to stronger price realizations and additional loss of production income insurance payments that were recognized in the quarter. As a result of production outperformance and improved pricing realizations, we have increased our four-year 2022 production and adjusted EBITDA guidance, which Jason will detail later on the call. Capital spending for the first quarter was approximately $6.9 million, focused primarily on accelerated work over projects in Oklahoma to capitalize on current commodity prices and non-operated Eagleford and East Texas development programs. Free cash flow, defined as adjusted EBITDA, Last capex and cash interest expense was approximately $14.9 million in the first quarter of 2022. Amplified free cash flow outlook has continued to improve since our last earnings call, and we now expect to generate $215 million to $340 million in cumulative free cash flow over the next three years, a significant increase from the $150 to $250 million stated during our last call. Now for an update on our operations. In Oklahoma, Amplify is currently running three workover rigs as part of our accelerated program to return offline wells to production and converting ESPs to rod lift. This program continues to support our comprehensive strategy for production and expense optimization and will generate incremental free cash flow for the company going forward. In East Texas and North Louisiana, we've committed to efficiently managing production and costs while pursuing high return workover and joint development projects. The company is participating in three non-operated development wells, which are expected to be brought online in the third quarter of this year. We continue to evaluate additional development opportunities in the area and will participate in high-return projects as they arise. In the Eagleford, we continue to optimistically participate in attractive projects with the highest economic viability. Operators are actively developing their positions in areas in which we jointly own interests and it is expected that seven growths The 0.4 net new development wells will be online by the end of the second quarter of 2022. At Barrel, production increased by approximately 4% quarter-over-quarter as a result of improved run times and positive results from workovers and well simulations performed earlier this year. Our annual facility maintenance turnaround is scheduled for up to 10 days in June, which will reduce production for the second quarter. We continue to implement technological improvements to enhance operational performance and efficiencies. and maximize the economic returns of our work over program. I will now turn the call over to Jason to provide a detailed review of our financial and operational results.