Civitas Resources, Inc.

Good morning. My name is David and I'll be your conference operator today. At this time, I'd like to welcome everyone to Civitas Resources' fourth quarter 2021 earnings conference call. Today's conference is being recorded. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there'll be a question and answer session. If you'd like to ask a question during this time, simply press the star key followed by the number one on your telephone keypad. If you'd like to withdraw your question, press star one once again. Thank you, John Wren. You may begin your conference.

Well, thank you, operator. Good morning and welcome to Civitas' fourth quarter and full year 2021 earnings conference call. I'm joined today by Ben Dell, chairman and interim CEO, Marian Elifoski, CFO, Matt Owens, COO, and other members of the executive management team. Yesterday, we issued our earnings press release, filed our 10-K, and posted the new investor presentation, all of which are available on the investor relations section of our website. Please be aware that on today's call, we may make forward-looking statements. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from projections. Please read our full disclosures regarding forward-looking statements in our 10-K and other SEC filings. On today's call, we may also refer to certain non-GAAP financial metrics. Reconciliations to certain non-GAAP metrics can be found in our earnings release and SEC filings as well. I'll now turn the call over to Ben Dell. Thanks, John, and good morning, everyone.

The fourth quarter was a transformational and highly successful one for Civitas as we closed the merger with the extraction and the acquisition of Crestone Peak on November 1st and began building the future of Civitas. Before discussing our performance, I want to thank all the employees for their hard work over the last several months in diligently integrating the three companies and beating expectations on the first quarter as a combined company. As Colorado's largest pure play EMP and the first carbon neutral EMP company on a scope one and scope two basis, we are very excited about the company's future. Civitas is leading the industry in executing on the new EMP business model. We have a simple business model focused on optimizing the development of our high-quality assets, a relentless focus on costs, expanding our cash margins, protecting our balance sheet, and returning excess cash flow generation to shareholders. This is also being done with an acute awareness of our environmental footprint, which we continue to minimize. As we stated in conjunction with the closing of the mergers, we are firm believers in the value of disciplined consolidations. On this note, we recently closed our acquisition of DJ Basin operator Bison Oil and Gas II. While small, this acquisition is a perfect case study of the rigor and discipline that goes into our acquisition evaluation. The Bison assets, which are expected to add an annualized average of 9,000 barrels of oil equivalent per day of oily high-margin contribution to our March to December 2022 production, were acquired at a discount to PDP PV12 and 1.6 times 2022 estimated EBITDA in an all-cash transaction. Civitas does not expect any additional G&A headcount from this transaction, further highlighting the synergies and cost savings we're able to extract through consolidation. Civitas will integrate these assets under its carbon-neutral policy, further reducing basin-wide net emissions. On the ESG front, Civitas is committed to producing energy in the most responsible manner and will always strive to be a part of the solution for challenges faced by our communities. Civitas is a clear leader in the industry when it comes to emissions intensity. We're very proud of our recently announced commitment to voluntarily plug 42 wells that were orphaned by previous operators in and around our operating areas in the Adams, Arapaho, Albert, Larimer, Broomfield, and Weld counties in Colorado. These wells represent roughly 10% of the 410 total orphan wells in the state of Colorado right now. Lastly, before I turn it over to Marianella, we're excited to follow through on our commitment to have an industry-leading shareholder return policy with the announcement of a $1.21 per share total quarterly dividend to be payable on March 30th to shareholders of record on March 18th. This is composed of our previously announced and paid 0.4625 per share base dividend, and an inaugural variable dividend of 0.75 per share. This is one of the highest payout ratios in the industry, and at our current share price implies a top-tier roughly 10% yield, all while maintaining our pristine balance sheet. Now, I will turn the call over to our CFO, Marin Alifoski, to walk through some financial highlights.