Strathcona Resources Ltd.

Good morning, my name is Joanna and I will be your conference operator today. I would like to welcome everyone to the Q4 2023 conference call of Strathcona Resources Limited. 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. For attendees on the conference call that would like to ask a question, press star, then the number one on your telephone keypad. If you would like to withdraw your question, please press star followed by two. I now introduce Rob Morgan, President and CEO of Strathcona, to begin the conference.

Good morning, everyone, and thank you for joining us. Welcome to the fourth quarter 2023 conference call of Strathcona Resources. I am Rob Morgan, President and CEO of Strathcona, and with me today is Connor Watrous, Senior Vice President and CFO, and Angie Lau, our Treasurer. Yesterday, Strathcona released its fourth quarter and annual 2023 results, a summary of which was included in yesterday's press release, with full details available on Strathcona's website as well as on CDAR+. As a reminder, on March 11th, we released details of our year-end reserves and provided shareholders with a look at how Strathcona has grown and created value in the private market over the last seven years. I would encourage prospective shareholders to visit our website and review our 2023 reserves overview. Production for the fourth quarter was on plan at 186,000 BOE per day, highlighted by record performance at our Cold Lake thermal segment at 60,000 BOE per day. Cash flow from operations was $470.8 million, or $2.20 per share, with free cash flow of $150.8 million, or $0.70 per share. We finished the year with a simplified capital structure as we were able to pay off our term loan ahead of the February 2024 maturity, and we are also pleased to announce an increase in our covenant-based syndicated credit facility from $2.3 billion to $2.5 billion with a revised maturity of March 2028. As we approach the end of the first quarter, we are very encouraged by the signs of line fill occurring on the Trans Mountain expansion pipeline. As a reminder, Strathcona's oil-weighted production base is highly leveraged to WCS prices, with a U.S. $1 move in the WCS differential or top-line WTI equating to $40 million of annual cash flow. Strathcona's 2024 development plan included production from three dry grass wells at our ground birch property in northeast B.C., We spotted the wells in the first quarter and expected to complete them this spring, but given weak natural gas prices, we are choosing to defer bringing the wells on until the winter months when we expect much improved pricing. This will impact Strathcona's year average production by approximately 15 million cubic feet per day, and we have adjusted our guidance accordingly. I would like to thank the entire team at Strathcona for their tireless work over the course of 2023 as we emerge from the private world into the public markets, and we are very excited about what the future holds. I would also like to thank our new public shareholders for the confidence you have placed in us. We are conscious that building a public track record takes time, but we're looking forward to sharing the accomplishments as well as the setbacks that we might have on this journey with you. Thank you for joining us this morning, and we would be pleased to take any questions you might have.

Thank you. As a reminder, please press star 1 to ask a question. The first question comes from Greg Party at RBC Capital Markets. Please go ahead.