SM Energy Company

Greetings. Welcome to SM Energy's second quarter 2025 financial results and operating results Q&A session. At this time, all participants will be in listen-only mode. The question and answer session will follow the presentation. If anyone today should require operator assistance during the conference, please press star zero on your telephone keypad. Please note that today's conference is being recorded. At this time, I'll turn the conference over to Pat Lytle, Senior Vice President, Finance. Pat, you may begin.

Thank you, Rob. Good morning, everyone. In today's call, we may reference the earnings release, IR presentation, or prepared remarks, all of which are posted to our website. Thank you for joining us to answer your questions today. On the call this morning, we have our President and CEO, Herb Vogel, COO, Beth McDonald, and CFO, Wade Purcell. Before we get started, I need to remind you that our discussion today may include forward-looking statements and discussion of non-GAAP measures. I direct you to the accompanying slide deck, earnings release, and risk factor section of our most recently filed 10-K, which describe risks associated with forward-looking statements that could cause actual results to differ. Also, please see the slide deck appendix and the earnings release for discussion of forward-looking statements and definitions and reconciliations of non-GAAP measures to the most directly comparable GAAP measures. Also, our second quarter 10-Q was filed this morning. With that, I will turn it over to Herb for brief opening comments. Herb?

Thanks, Pat. Good morning, and thank you for joining us. Before we get started, I want to make sure that you all took a close look at slide six in the slide deck we posted yesterday afternoon and heard Beth's comments on the prerecorded call. Over the last five years, our growth has been intentional, strategic, and compelling. Slide 6 shows that since 2020, we have grown both net proved reserves and net production by over 60%, while increasing our oil percentage and production margins. Amazingly, we achieved this growth while share count remained flat, meaning no dilution, and we cut our leverage by more than a full turn from the end of 2020 to where it is today. In other words, we have delivered a step change in scale and de-risked the balance sheet all while not diluting our shareholders, benefiting per share metrics significantly. You can attribute this exceptional outcome to date to our team's extensive geoscience, engineering, and advanced analytics experience in unconventional resource development, all hyper-focused on adding shareholder value. We see a future where we can continue to access underappreciated assets, apply our deep technical skills, repeat this level of performance, and grow shareholder value meaningfully. With that, I'll turn the call back over to Rob to take your questions.