SilverBow Resorces, Inc.

Ladies and gentlemen, this is the operator. Today's conference is scheduled to begin momentarily. Until that time, your lines will again be placed on music hold. Thank you for your patience. THE END THE END THE END Ladies and gentlemen, thank you for standing by and welcome to the Silver Bell Resources second quarter 2021 earnings conference call. At this time, all participants are in a listen-only mode. After the speaker's remarks, there will be a question and answer session. To ask a question during the session, simply press star followed by the number one on your telephone keypad. Please be advised that today's call is being recorded. If you require any further assistance, please press star zero. Thank you. I would now like to hand the conference over to Jeff Magnus, Director of Finance and Investor Relations. Please go ahead.

Thank you, Hillary, and good morning, everyone. Thank you very much for joining us for our second quarter 2021 conference call. With me on the call today are Sean Wolverton, our CEO, Steve Adam, our COO, and Chris Abundance, our CFO. Yesterday afternoon, we posted the presentation to our website and will 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 their closest GAAP measure in the earnings press release. Our discussion today may include forward-looking statements which are subject to risks 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's second quarter results continued our positive momentum from the first quarter. With the first half of the year now behind us, I would like to detail the progress we have made towards a number of our key objectives, which we show on slide seven of this presentation. Our first objective is to grow production in EBITDA while living within cash flow. Yesterday, we increased our full-year production guidance by 8% at the midpoint, which now implies 12% growth year over year. As oil production comes online in the third quarter, we anticipate that the second quarter should be the low-water mark for our EBITDA this year. We also increased our free cash flow guidance by 25% at the midpoint, to a range of $45 to $55 million. We accomplished these increases while remaining at an implied reinvestment rate of approximately 70%, inclusive of our revised capital budget range. Steve will further detail our cap ads and scheduling optimizations in his section. Our second objective is focused on expanding inventory through Austin Chalk delineation and accretive acquisitions. Our initial Austin Chalk well in Webb County continues to exhibit attractive economics, and we plan to drill additional appraisal wells this year. Subsequent to quarter end, we closed on an accretive bolt-on acquisition in our high-return La Mesa field. which included incremental working interest in our existing wellbores, as well as an additional section of new acreage directly offsetting our current position. We were able to fund this transaction using a combination of cash and stock. The deal provides us with $10 million per day of incremental production, as well as future inventory upside in the prolific Eagleford and Austin Chalk trends. As many of you know, our La Mesa wells over the last two years contributed to much of Silver Bow's success. Our third objective is to drive peer-leading capital efficiency and cost structure. Our total cash operating expenses for the second quarter were below $1 per MCFE. We have seen continued improvement in our cycle times and our total BNC cost per lateral foot. As Chris will detail, we lowered our full-year LOE and T&P guidance, given higher production and further cost efficiencies. Our cost structure allows us to continue generating attractive full-cycle returns, and Silver Bow is at the high end of our peers on free cash flow yield, which we show on slide 20 of our presentation. Last but not least, we seek to deliver our balance sheet through further debt reduction and accretive transactions. Year over year, we reduced our total debt by $72 million, and we have now paid down $92 million since the end of the first quarter of 2020. At quarter end, our leverage ratio was 1.9 times down from 2.5 at year end 2020 and ahead of our previous target of below two times by year end 2021. As we reduce debt and increase our liquidity, we better position ourselves to strategically deploy cash towards both on acquisitions, such as our recent La Mesa deal. Accretive transactions like these will be more than offset by our objectives to decrease leverage and grow reserves. I'm extremely proud of the progress Silverbow has made to date. Going forward, we see the opportunity to set even more ambitious targets. By year end, we believe our leverage ratio could be below 1.75 times. As we look into 2022, our preliminary forecast at a three-quarter rig pace and grow annual production by double digits. We project 2022 free cash flow above 2021 levels with an implied reinvestment rate below 70%. We may reinvest additional capital as warranted by our return thresholds, such as the New Eagleford and Austin Chalk locations acquired in our La Mesa acreage. Reinvesting at the right time in the right wells provides for increased EBITDA, sustained free cash flow, and lower leverage as we look to 2022 and beyond. With that said, I will turn the call over to Steve to provide an operational update. Steve, please go ahead.