Parex Resources Inc.

Good morning, everyone, and welcome to PARICS Resources' second quarter 2022 conference call and webcast. Please note that at any time, participants on the webcast can submit their questions under the Ask a Question tab at the top of the webcast interface, and participants on the phone can press star 1. I would now like to turn the call over to Mike Crockton, Senior Vice President of Capital Markets and Corporate Planning at PARICS. Please go ahead, Mike.

Thank you, Operator, and good morning, everyone. On the call with me today are Ken Pinsky, Chief Financial Officer, and Eric Furlan, Chief Operating Officer. Please note that Iman Molson, President and Chief Executive Officer, will be unable to join us today as he is currently overseas in Lebanon, visiting his parents for the first time since the start of the COVID-19 global pandemic. As a reminder, this conference call includes forward-looking statements and non-GAAP and other financial measures. with the associated risks outlined in our news release in MD&A, which can be found on our website or at CDER.com. All amounts disclosed today are in U.S. dollars, unless otherwise noted. Please go ahead, Ken.

Thanks, Mike, and good morning, everyone. In the second quarter of 2022, we generated record funds from operations of $228 million. Again, that's in U.S. dollars, which is up 73% over the comparative quarter and 11% from the prior quarter. On a per share basis, that's $2.53 Canadian, which is a record for us, as I said. On a year-to-date basis, PARCS has generated $178 million of free fund flow, of which we are proud to say 100% of that has been directed towards dividends and share buybacks, as we continue to be debt-free. Production for the quarter was pre-released at approximately 51,100 BOEs per day, up 16% from the comparative quarter in 2021. Production was relatively consistent with the prior quarter, primarily due to well timing and higher than expected downtime, and this was previously announced. We continue to have balance sheet strength and a working capital surplus of $312 million. It is our expectation that working capital will decrease in the third quarter due to the timing of capital expenditures as well as the acceleration of our share buyback program that we began in late June. As we move through 2022, we continue to be driven by our long-term capital allocation framework, which is to return at least one-third of our total fund flow of operations to our shareholders, which equates to 100% of free fund flow. This year, we have increased the regular dividend twice, which now amounts to Canadian $1 per share on an annualized basis. Furthermore, we are complete and through 75% of our 2022 normal course issuer bid, Or alternatively, we've already purchased 8.7 out of the 11.8 million shares so far this year, and we will purchase the full 10% in the remainder of the year. Eric Furland will now provide an overview of the investments being made in our operations and where we see production increases coming in the back half of the year, followed by some final remarks by Mike on our outlook. Please go ahead, Eric.