SilverBow Resorces, 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 the silver bow resources first quarter 2023 earnings conference call today's conference is being recorded all lines have been placed on me 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 would like to withdraw your question press star one once again I'll now turn the call over to Jeff Magid, Vice President of Finance and Investor Relations. You may begin your conference.

Thank you, David, and good morning, everyone. Thank you very much for joining us for our first quarter 2023 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 their 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 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 great start as our team continues to execute on our 2023 plan. Our development plan remains the same with both of our drilling rigs dedicated to our oil assets through the end of the year. Our full year production and capital budget guidance also remains the same from last quarter's update. As Steve will further detail, our team continues to drive operational efficiencies and identify DNC cost savings. Costs have come down to begin the year and we expect to see continued cost deflation as we progress throughout the year. First quarter oil production was at the high end of our guidance range and increased 140% year over year. Based on our full year guidance, Twenty-three oil production will increase by approximately 100 percent compared to 22. Initial performance from our wells brought online year to date are producing at or above expectations and should result in sequential liquids production growth as we move through the year. The shift to more oil this year is resulting in higher revenue per unit and expansion of cash margins. As Chris will further detail, first quarter hedged revenue per MCFE was the highest revenue per unit Silver Bow has realized to date. By year end, our production mix should be comprised of 40 to 50% liquids. On the gas front, we produced near firm takeaway levels in Webb County during the quarter as expected. Pipeline capacities remain uncertain in the near term, although we expect regional takeaway to improve as new pipelines come online by year end. Silver Bow's cash flows are well insulated from lower gas prices this year, as our gas production is over 90% hedged at a weighted average price of $3.79, assuming the floor price of our callers. Should gas prices improve, we have a Fasken duct pad which we can complete later this year. It's worth highlighting that the acquisitions we made in 21 and 22 added ample runway to our oil inventory and supports our opportunistic oil pivot this year. Our strategy focuses on operational flexibility and capital allocation to our highest returns on investment. As a result of our recent acquisitions, two-thirds of our 10-plus years of inventory are now oil-weighted. The ability to pivot between oil and gas development has been and will continue to be a competitive advantage for Silverboat. To wrap up my prepared remarks, our near-term focus on oil development is one piece of a multi-year strategy which remains the same. We have the roadmap and the levers to pull to grow production, EBITDA, and free cash flow while simultaneously expanding our inventory and strengthening our balance sheet. With that said, we will continue to monitor commodity prices and have the flexibility to adjust our activity levels accordingly. Our team has an established track record of delivering on our key objectives through commodity price cycles. We see a robust pipeline of opportunities ahead that will continue to unlock value for our stakeholders. With that, I will hand the call over to Steve.