SilverBow Resorces, Inc.

Good day, and thank you for standing by. Welcome to Silver Bowl Resources' first quarter 2022 earnings conference call. At this time, all participants line 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 will 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 call over to your speaker today, Mr. Jeff Magidz. Director of Finance and Investor Relations. Please go ahead.

Thank you, Buena, and good morning, everyone. Thank you very much for joining us for our first quarter 22 conference call. With me on the call today are Sean Wolverton, our CEO, Steve Adam, our COO, and Chris Labundis, our CFO. Yesterday afternoon, we posted a new corporate 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 now turn the call over to Sean.

Thank you, Jeff, and thank you everyone for joining our call this morning. Silver Bow is off to a strong start to the year. Our first quarter results, borrowing base increase, and recently announced transactions exemplify the winning strategy we have consistently executed on. The Sundance and Sandpoint acquisitions mark the fourth and fifth transactions we have announced since August 21. Combined, we view these acquisitions as attractively valued at a purchase price of less than $30,000 per flowing BOE per day of current production and at a cash flow multiple of 2.1 times. We are excited about adding scale to our legacy position in the Western Eagle Fern, the efficiencies we stand to gain, and the projected growth from the combined asset base. For the past several quarters, we have outlined our strategic objectives. First, we are targeting double-digit production growth while living within cash flow. Second, we are focused on expanding our inventory through accretive acquisitions and organic leasing. Third, we want to lead our peers in capital efficiency and cost structure. And last, our fourth objective is to deliver the balance sheet through debt reduction and cash flow generation. During the first quarter, we continued to progress these objectives, and in doing so, we are seeing strong performance in the equity. Year to date, our stock is up over 60%, and that is coming off a 300% plus increase in 21. In the first quarter, we generated $28 million of free cash flow and reduced our net debt by the same amount. We further reduced our leverage ratio quarter over quarter and ended one Q with $262 million of liquidity. Notably, our quarter end liquidity position does not reflect the increase to our borrowing base, which went into effect on April 12th. Operationally, we drilled three Austin Chalkwells at La Mesa in the quarter. with the first being a single well brought online earlier this year. The other two Austin Chalk wells were part of an eight-well La Mesa pad we drilled in the corridor, which is the largest pad drilled in our company's history and represents a shift towards full-scale development of our Austin Chalk assets. As shown on slide 20, the Austin Chalk formation continues to exhibit some of the highest returns across our portfolio and we plan to drill additional locations this year. Currently, we have 50-plus Austin Chalk locations in our inventory, and we are actively pursuing opportunities to add to that count. In April, we made several major announcements which enhanced Silver Bow's shareholder value proposition going forward. First, we announced our spring redetermination results, which increased our borrowing base to $525 million. The $65 million increase further enhances our liquidity. Notably, we did not include any contribution or uplift from the pending acquisitions. We expect to receive consents from the bank group to substantially increase our borrowing base upon closing of the Sundance acquisition, which should further increase our RBL availability. Following the announcement of the borrowing base redetermination, We announced two accretive acquisitions for a combined transaction value of $425 million. The Sandpoint acquisition adds approximately 27,000 net acres in LaSalle and McMullen counties with a PDP PV10 value of $89 million, which is $18 million more than what we paid for the assets. With two new wells coming online, we anticipate these assets to contribute five MBOE per day with expected closing to occur later this month. The Sundance acquisition adds approximately 39,000 net acres with a PDP PB10 value of $277 million and significantly increases our oil weighted production and inventory with approximately 200 gross locations. As of January, the Sundance assets were producing 11 MBOE per day. Combined, these deals have compelling industrial logic given the acreage overlap with our positions in LaSalle and McMullen counties, or what we refer to as our AWP and Artesia fields. The contiguous pro forma position shown on slides 9 and 15 will provide synergistic opportunities for both OpEx and G&A as we achieve greater scale in areas in which Silverbow has extensive experience. On a pro forma basis, Silverbow will have ample high return drilling locations representing over 20 rig years, a PDP PB10 value of $1.6 billion in an oil production mix of roughly 25%, which is a meaningful step change compared to the 11% oil mix in 2021. A core pillar of our strategy has focused on a balanced commodity portfolio in which we can quickly shift between oil and gas development based upon prevailing commodity prices. We believe this has been and will continue to be a competitive advantage in generating greater returns in the long term compared to peers who do not have the same flexibility in their portfolios. The increase to our oil production and inventory is a transformational and candidly a much needed shift in ensuring Silver Bow can benefit from the strength in liquids pricing moving forward. While at the same time we have a deep inventory of high rate of return gas locations, especially with the emergence of the Austin shock in Webb County. We have not published updated guidance for 2022 at this point. We anticipate closing the Sundance acquisition in June or July, at which time will release updated guidance. For reference on slide 14, we show the full year 2022 pro forma company projections, which convey the magnitude of the increase from these deals compared to standalone Silver Bowl. Additionally, on slide 16, we highlight the accretion across key financial metrics, particularly free cash flow per share. Upon closing the Sundance acquisition, we anticipate adding a second rig, which will primarily focus on those assets. Our near-term plan is to allocate capital 50-50 between our oil and gas inventory. We essentially will have one drilling rig for oil and one drilling for gas full-time, which should drive greater efficiencies in full utilization of a frack crew. The optimized development plan we can pursue with our pro forma asset base will enable continued double-digit production growth annually. In fact, we are now projecting 20% to 30% growth over the next few years. We can achieve the growth with a reinvestment rate below 60% while driving free cash flow greater than $1 billion through 2024. Assuming latest strip pricing, we have line of sight towards $700 million of adjusted EBITDA in 2023, an incredible pace of growth compared to adjusted EBITDA of just under $250 million in 2021. At the same time, we expect to accelerate delevering and achieve our year-end 2022 leverage ratio target of less than one times. Silver Bow's value creation proposition thus far has focused on growth through the drill bit while converting enterprise value from debt to equity through free cash flow generation. With the accretive acquisitions we have made over the last year, Silver Bow has rapidly scaled its cash flows within a favorable commodity price environment and improved its balance sheet in per share metrics. For the near term, our focus will remain on the successful closing and integration of the acquisitions. In a strong commodity price environment, it is easy to forget where prices were just a year ago. And furthermore, we are seeing continued inflationary pressures across all services. Therefore, capital discipline, operational efficiencies, and prudent risk management will remain critical towards realizing the full value of our growth strategy. We have optionality given our balance sheet and strong cash flow outlook, which will allow Silver Bow to remain active in further consolidation opportunities. Right now, two things are clear to us. First, Performance Silver Bow is set up to deliver strong growth in the coming years which will bolster our portfolio and drive stakeholder value. And second, the Eagleford is ripe for consolidation, and Silverbow has a track record and capabilities to lead the charge. With that, I will turn the call over to Steve to provide an operational update. Steve, please go ahead.