SilverBow Resorces, Inc.

Good day and thank you for standing by. Welcome to the Cerebral Resources first quarter 2021 conference call. At this time, our participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you'll need to press star 1 on your telephone. Please be advised that today's conference is being recorded. If you require any further assistance, please press star 0. I would now like to hand the conference over to your speaker for today, Jeff Maggots. Director of Finance and Investor Relations. Please go ahead.

Thank you, LaShonna, and good morning, everyone. Thank you very much for joining us for our first quarter 2021 conference call. With me on the call today are Sean Wolverton, our CEO, Steve Adam, our COO, and Chris Abundas, our CFO. Yesterday afternoon, we posted a new corporate presentation to our website, and we'll occasionally refer to it during this call. We encourage listeners to download the latest materials. Please note that we may make references to certain non-GAAP financial measures which are reconciled to the closest GAAP measure in the earnings press release. Our discussion today may include forward-looking statements which are subject to risk and uncertainties, many of which are beyond our control. These risks and uncertainties are described more fully in our documents on file with the SEC, which are also available on our website. With that, I will turn the call over to Sean.

Thank you, Jeff, and thank you, everyone, for joining our call this morning. Silver Bow hit the ground running this year. Our first quarter results exceeded our expectations and positioned us to deliver on our key objectives this year and beyond. This morning, I will talk about our recent accomplishments and go-forward strategy. Maximizing free cash flow and paying down debt remain at the forefront of our business plan. First quarter free cash flow was 24 million, bringing our trailing 12 months free cash flow to 60 million. The primary use of free cash flow remains debt reduction. Silver Bowl paid down 30 million of RVL borrowings during the first quarter and 90 million of borrowings from a year ago. Due to continued efficiency gains, flexibility in our drill schedule, and favorable pricing, we raised our full year free cash flow guidance to a range of 30 to 50 million, a 33% increase at the midpoint from our prior range of 20 to 40 million. Furthermore, we anticipate our leverage ratio to drop below two times by the end of this year. I would also like to highlight the closing of our amended credit facility, which extends our maturity date out to 2024 and provides Silver Bow with the liquidity in Covenant Headroom to continue pursuing its business strategy. Chris will expand on this in his section, and I'd like to thank our Bait Syndicate, including both existing and new lenders, for their support. Core to Silver Bow's strategy is a well-balanced portfolio of high return inventory and the flexibility to optimize our D&C program real-time alongside dynamic commodity prices. This quarter's update is an example of the plug-and-play optionality we have at our disposal. Without changing our full year CapEx guidance of 100 to 110 million, we have accelerated and expanded our mid-year oil development program. This accomplishes two things. First, it increases Silver Bow's exposure to the recent strength in oil prices with volumes to come online late in the third quarter. Second, it furthers our appraisal of Austin Chalk potential across our acreage. Our initial test well is exceeding our expectations. This well is producing above our internal forecast, both with its cumulative production today and its low decline rate. The results we have seen and the improvements we are implementing on our next oxygen shock well provide line of sight to further DNC activity and inventory additions. We have meaningfully shifted our DNC allocation for the remainder of the year, while remaining within our original budget range. 60% of our full-year budget is now directed towards liquids development, as compared to just 30% in our original 2021 plans presented in March. With our expanded oil development program now underway, we have increased our full-year oil production guidance by 12% at the midpoint. Note that this increase really only captures partial year production contribution as these wells are planned to come online late in the third quarter. This shift in mix is a great demonstration of how Silver Bow is actively navigating the commodity price environment by employing our flexible, adaptable, and returns-focused approach. Looking ahead, we will continue living up to the operational efficiencies and low-cost platform that we are known for. We plan to focus on free cash flow generation and further debt reduction while living within a 70% to 80% reinvestment rate. In some instances, we may choose to reinvest additional capital as warranted by our returns threshold. Reinvesting at the right time in the right wells provides for increased EBITDA, sustained free cash flow, and lower leverage as we plan beyond 2021. Finally, we continue to be opportunistic, with small-scale A&D being a key factor to our success to date. Our demonstrated ability to reduce costs and increase efficiencies on such opportunities has driven greater returns for our stakeholders. As Silverbow establishes a consistent free cash flow platform and further strengthens its balance sheet, we will continue to evaluate accretive deals, both large and small. With our appraisal of the Austin Chalk ongoing, Silver Bow has multiple catalysts on the horizon. With that, I will turn the call over to Steve to provide an operational update. Steve, please go ahead.