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 second quarter 2023 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, Jeff Maggots, 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 second quarter 2023 conference call. With me on the call today are Sean Wolverton, our CEM, Steve Adam, our COO, and Chris Abundas, 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 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's second quarter results demonstrated the impact of our oil-focused development program and the team's ability to meet and exceed our objectives. Our differentiated strategy is delivering growth while living within cash flow this year. and we are well positioned to generate significant free cash flow over the next 18 months. I'm pleased to report that during the quarter, we published our inaugural sustainability report. With this report, we now have the standardized framework in place for investors and other key stakeholders to fully appreciate our ESG stewardship. Turning to results. Second quarter production came in at the high end of guidance and increased 40% year over year. Our production growth was driven by strong performance from our oil assets as our oil production exceeds the high end of guidance and has nearly tripled year over year. As Chris will further detail, the rapid shift of our production mix resulted in 75% of revenue derived from liquids compared to less than 33% a year ago. On the cost front, our operating expenses came in below guidance across the board. For the full year, we're lowering our CapEx guidance by approximately 10% to a range of 400 to 425 million. Our efficiency gains and cost savings year to date along with several optimizations to the DNC schedule by Steve's team, are allowing us to reduce our capital spend while still delivering our full year production guidance. We also introduced full year 2023 free cash flow guidance of 10 to 30 million. Higher liquids production, lower capex spend, and a ramp in our gas volumes at year end is expected to drive positive free cash flow on a full year basis. The ability to self-fund our differentiated growth profile is a core tenet of our strategy. While 2023 represents a significant increase in oil production, we remain focused on a balanced commodity approach. During the quarter, we made several strategic advancements and our long-term gas development plans. In Webb County, we leased additional acreage near our Dorado dry gas position, where we have seen some of the best returns in our portfolio. Importantly, we also entered into pipeline gathering agreements on new infrastructure coming online by year end, which will support our multi-year development plans in this area. We are planning to allocate capital to our gas assets over the second half of the year where we plan to complete a duct four well Austin shock pad and move in a drilling rig in the fourth quarter. These actions will ramp up our gas volumes at year end and into 2024 alongside higher anticipated natural gas prices. Turning to our portfolio, We currently have 10 plus years of inventory identified, consisting of approximately 650 locations, with roughly two-thirds liquids locations and one-third gas locations. We have flexibility to adjust development to prevailing commodity prices. A key objective of the company is to continue to expand our inventory through unlocking incremental opportunities on our existing assets, leasing of additional acreage, and making accretive acquisitions. To wrap up my prepared remarks, our near-term focus is on oil development. Our exit rate liquids production at year end, combined with plans to ramp gas production next year, positions Silver Bow to generate significant free cash flow in 2024. This free cash flow will be used to drive our leverage ratio towards our stated target of less than one time. Our team has an established track record of delivering on our key objectives through commodity cycles. With that said, I'll turn the call over to Steve.