SilverBow Resorces, Inc.

Thank you for standing by at this time. I would like to welcome everyone to the Silver Bow Resources third quarter 2023 earnings conference call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you'd like to ask a question during this time, simply press star followed by the number one. Once again, star one on your telephone keypad. And if you'd like to withdraw your question, just press star one again. Thank you. And at this time, I would like to turn the call over to Jeff Maggots, Vice President of Finance and Investor Relations.

Jeff, please go ahead. Thank you, Greg, and good morning, everyone. Thank you very much for joining us for our third quarter 2023 conference call. With me on the call today are Sean Wolverton, our CEO, Steve Adam, our COO, and Chris Sabonis, 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 risk 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. Third quarter results highlight the success of Silver Bow's growth strategy. Production increased approximately 20% compared to a year ago and exceeded the high end of guidance. Our oil focused development program has resulted in a year over year increase of 80% in oil and a 25% increase in NGL production. Driven by the increase in our liquids production, adjusted EBITDA of $141 million was the highest quarterly EBITDA in Silver Bow's history. At the same time, we generated $18 million of free cash flow and reduced debt by $78 million during the quarter. Finally, our operational performance year to date is allowing us to further increase our full year free cash flow guidance to a range of $20 to $40 million, while at the same time maintaining our full year CapEx guide. Our results in 3Q provide us with an attractive outlook. Guidance for our base assets, excluding any contribution from the Chesapeake acquisition, implies a 10% increase in fourth quarter oil production, and we anticipate significant free cash generation through year end. With prices now above $3 and with takeaway constraints from Webb County being alleviated, we are once again investing capital in our gas assets. We are currently flowing back a recently completed four-well duct pad in Webb County, and we recently moved one of our two drilling rigs to this gas area. Our fourth quarter investment will set up well for uplift to our gas production in early 24. Overall, our strong operating platform positions Silver Bow to continue to grow through multiple avenues. We have championed the need for consolidation within the Eagleford and recent M&A announcements around the industry have supported this thesis. In August, we announced an agreement to acquire certain oil and gas assets in South Texas from Chesapeake for $700 million. This marks our eighth and largest acquisition over the last two years. The Chesapeake transaction checked all the boxes we look for in an accretive acquisition. First, it enhances scale within our core focus area in the Western Eagle Ford And upon close, Silver Bow will become the largest pure play public Eagleford operator by production. The growth from these assets position Silver Bow to exceed a 25% annual growth target in the coming years. Second, we are acquiring the assets at a discounted PDP valuation while adding roughly 300 high confidence locations at essentially no cost. This maintains our decade-plus inventory life and adds locations that will immediately compete for capital in 2024. Third, the production base further expands our commodity exposure with a mix of assets that are spread evenly across oil, gas, and NGLs. Finally, we are financing the transaction accretively through an upsize to our revolver and second lien notes, as well as our September equity offering, which will add to our cash funding sources. We see a clear path towards delevering below one times by year end 2024. To wrap up my prepared remarks, Silver Bow continues to execute on its differentiated growth strategy while generating significant cash flow. Our liquids production growth this year, combined with plans to ramp gas production into next year, positions Silver Bow as a leading Gulf Coast operating platform with the ability to further consolidate and benefit from the pending LNG expansion projects. Our team has an established track record of delivering on our key objectives through commodity cycles, and I'm very excited about both the near and long-term prospects for the company. With that said, I will hand the call over to Steve.