SandRidge Energy Inc (SD) 2024 Q3 法說會逐字稿

Thank you for standing by, and welcome to the SandRidge Energy third-quarter 2024 earnings conference call. (Operator Instructions)

感謝您的耐心等待，歡迎參加 SandRidge Energy 2024 年第三季財報電話會議。（操作員說明）

I'd now like to turn the call over to Scott Prestridge, SVP of Finance and Strategy. You may begin.

我現在想將電話轉給財務和策略高級副總裁 Scott Prestridge。你可以開始了。

Thank you, and welcome, everyone. With me today are Grayson Pranin, our CEO; Jonathan Frates, our CFO; Brandon Brown, our CAO; as well as Dean Parrish, our COO. We would like to remind you that today's call contains forward-looking statements and assumptions, which are subject to risk and uncertainty, and actual results may differ materially from those projected in these forward-looking statements.

謝謝大家，也歡迎大家。今天與我在一起的有我們的執行長 Grayson Pranin；喬納森‧弗雷茨 (Jonathan Frates)，我們的財務長；布蘭登‧布朗，我們的首席行政官；以及我們的營運長 Dean Parrish。我們想提醒您，今天的電話會議包含前瞻性陳述和假設，這些陳述和假設存在風險和不確定性，實際結果可能與這些前瞻性陳述中的預測有重大差異。

These statements are not guarantees of future performance and our actual results may differ materially due to known and unknown risks and uncertainties as discussed in greater detail in our earnings release and our SEC filings. We may also refer to adjusted EBITDA and adjusted G&A and other non-GAAP financial measures.

這些聲明並不是對未來業績的保證，由於已知和未知的風險和不確定性，我們的實際結果可能會存在重大差異，正如我們的收益發布和美國證券交易委員會文件中更詳細討論的那樣。我們也可能參考調整後的 EBITDA 和調整後的 G&A 以及其他非 GAAP 財務指標。

Reconciliations of these measures can be found on our website. With that, I'll turn the call over to Grayson.

這些措施的調節可以在我們的網站上找到。這樣，我就把電話轉給格雷森。

Thank you and good afternoon. I'm pleased to report on a positive quarter for the company. At the end of August, we closed on our acquisition in the Western Anadarko Basin. From September, total production for the first month, reflecting the contribution of these assets averaged approximately 19 MBoe per day, made up of 52% liquids and the company's activity continues to translate to free cash flow from our producing assets. Before expanding on this, Jonathan will touch on a few highlights for the quarter.

謝謝你，下午好。我很高興地報告公司的季度業績。八月底，我們完成了對西阿納達科盆地的收購。從 9 月開始，第一個月的總產量（反映這些資產的貢獻）平均約為每天 19 MBoe，其中 52% 為液體，公司的活動繼續轉化為我們生產資產的自由現金流。在詳細闡述這一點之前，喬納森將談談本季的一些亮點。

Thank you, Grayson. Despite the downdraft in natural gas prices during the period, the company generated adjusted EBITDA of nearly $18 million in the third quarter. As we have pointed out in the past, our adjusted EBITDA is a unique metric for SandRidge due to us having no eye and very little teeth, given that we have no debt and a substantial NOL position that yields our cash flows from federal income taxes. On the I portion, we generated approximately $1.6 million of interest income during the quarter from cash held and various high-yield deposit accounts, which nearly offset our adjusted G&A for the quarter. The company initiated a return of capital program last year, the total cumulative dividends paid to date of approximately $150 million or more than $4 per share.

謝謝你，格雷森。儘管天然氣價格在此期間下跌，該公司第三季調整後的 EBITDA 仍達到近 1,800 萬美元。正如我們過去指出的那樣，我們調整後的 EBITDA 是 SandRidge 的獨特指標，因為我們沒有債務，而且擁有大量 NOL 頭寸，可以從聯邦所得稅中產生現金流，因此我們沒有眼睛，也沒有牙齒。在 I 部分，我們在本季度從持有的現金和各種高收益存款帳戶中產生了約 160 萬美元的利息收入，這幾乎抵消了本季度調整後的一般管理費用。該公司去年啟動了資本返還計劃，迄今累計支付的股息總額約為1.5億美元，即每股超過4美元。

On November 5, 2024, the Board of Directors declared an $0.11 per share cash dividend payable on November 29, 2024, to shareholders of record on November 15, 2024. Following our recent acquisition, cash, including restricted cash at the end of the third quarter was more than $94 million, which represents more than $2.50 per share of our common stock issued and outstanding.

2024年11月5日，董事會宣佈於2024年11月29日向2024年11月15日登記在冊的股東派發每股0.11美元的現金股利。在我們最近的收購之後，截至第三季末的現金（包括限制性現金）超過 9,400 萬美元，相當於我們已發行和流通的普通股每股超過 2.50 美元。

The company has no term debt or revolving debt obligations and continues to live within cash flow, funding all capital expenditures and capital returns with cash flow from operations and cash held on the balance sheet. Commodity price realizations for the quarter before considering the impact of hedges were $73.7 per barrel of oil, $0.92 per Mcf of gas and $16.25 per barrel of NGLs. As mentioned earlier, we have maintained our large federal NOL position, which was roughly $1.6 billion at quarter end.

該公司沒有定期債務或循環債務，並繼續生活在現金流範圍內，透過營運現金流和資產負債表上持有的現金為所有資本支出和資本回報提供資金。在考慮對沖影響之前，本季的大宗商品價格實現為每桶 73.7 美元，每桶天然氣 0.92 美元，每桶 NGL 16.25 美元。如前所述，我們維持了龐大的聯邦 NOL 頭寸，截至季末約為 16 億美元。

Our NOL position has and will continue to allow us to shield our cash flows from federal income taxes. Our commitment to cost discipline continues to yield results with adjusted G&A for the quarter of approximately $1.6 million or $1.02 per BOE. We continue to generate net income for our shareholders. And during the quarter, we ended approximately $26 million or $0.69 per basic share. Net cash provided by operating activities was approximately $21 million during the period.

我們的 NOL 地位已經並將繼續使我們能夠保護我們的現金流免受聯邦所得稅的影響。我們對成本控制的承諾持續取得成果，本季調整後的一般管理費用約為 160 萬美元或每桶油當量 1.02 美元。我們繼續為股東創造淨利。在本季度，我們的收益約為 2,600 萬美元，即每股基本股 0.69 美元。期內經營活動提供的淨現金約2,100萬美元。

Over the first nine months of the year, the company generated approximately $34 million in free cash flow, which represents a conversion rate of approximately 76% relative to adjusted EBITDA. Before shifting to our outlook, we should note that our earnings release and 10-Q will provide further details on our financial and operational performance during the quarter.

今年前 9 個月，該公司產生了約 3,400 萬美元的自由現金流，相對於調整後 EBITDA 的轉換率約為 76%。在轉向我們的展望之前，我們應該注意到我們的收益發布和 10 季度報告將提供有關我們本季財務和營運業績的更多詳細資訊。

Thank you, Jonathan. I thought it would be useful to give a brief update on our recent acquisition before touching on other company highlights. As a quick recap, our recent acquisition in the Western Anadarko Basin focused in the Cherokee play included 44 producing wells and 4 drilled but uncompleted wells concentrated in Ellis and Roger Mill County of Oklahoma as well as interest in 11 drilling and spacing units. From an activity standpoint, two of the four ducts have now been completed with the most recent achieving a 30-day IP over 1,000 BOE per day, 70% oil. We recently finished completions on the last two ducts with anticipated first production later this month.

謝謝你，喬納森。我認為在討論公司的其他亮點之前，先簡要介紹一下我們最近的收購情況會很有用。快速回顧一下，我們最近在西阿納達科盆地收購的重點是切羅基油田，包括44 口生產井和4 口已鑽但未完工的井，集中在俄克拉荷馬州埃利斯和羅傑米爾縣，以及對11 個鑽井和間距單位的興趣。從活動的角度來看，四個管道中的兩個現已完工，最近的一個實現了 30 天的 IP 每天超過 1,000 BOE，含油量為 70%。我們最近完成了最後兩條管道的完工，預計本月稍後首次投產。

As Jonathan mentioned earlier, the contribution of these new assets helped the company achieve a new peak average daily rate this year at nearly 19 MBoe per day, while also increasing our percentage of oil and liquids. This represents a 27% increase to the second quarter average daily production rate on a BOE basis and a 65% increase on an oil basis. Please keep in mind that September was the first full month of contributions from the newly acquired assets to our financials and Q4 will be the first full quarter. Revenue for the acquired assets in July and August were recorded as downward adjustments to the purchase price with details provided in our 10-Q.

正如喬納森之前提到的，這些新資產的貢獻幫助該公司今年實現了日均費率新峰值，接近每天 19MBoe，同時也提高了我們的石油和液體比例。這意味著第二季平均日產量（以京油當量計算）增加了 27%，以石油計算增加了 65%。請記住，九月份是新收購資產對我們財務做出貢獻的第一個完整月份，第四季將是第一個完整季度。7 月和 8 月收購資產的收入記錄為購買價格的向下調整，詳細資訊在我們的 10-Q 中提供。

This acquisition provides key benefits for the company to include: bolstering our base production and cash flow levels while preserving our strong balance sheet and planned capital return program, diversifying the commodity mix of our producing asset base and providing commodity optionality with future investments, upgrading our inventory through the Cherokee shale play, adding 22 2-mile laterals focused in a highly productive areas of the play with breakevens roughly at $35 WTI, provides synergies with the areas where we've been recently investigating the potential for new SandRidge-operated drilling opportunities, enabling our team to be well positioned to evaluate and execute on future organic growth opportunities.

此次收購為公司提供了主要好處，包括：增強我們的基礎生產和現金流水平，同時保持強勁的資產負債表和計劃的資本回報計劃，使我們的生產資產基礎的商品組合多樣化，並為未來的投資提供商品選擇權，升級我們的通過Cherokee 頁岩油田庫存，增加了22 個2 英里支線，重點關注該油田高產區，WTI 盈虧平衡點約為35 美元，與我們最近調查SandRidge 運營的新鑽探機會潛力的區域產生了協同效應，使我們的團隊能夠很好地評估和執行未來的有機成長機會。

The Cherokee formation of the Western Anadarko Basin has become a highly productive hydrocarbon target with increased horizontal activity over the last few years. This comprised of mostly self-sourcing shales with integrated high porosity sands. The play is currently being developed and delineated across Northeast Texas Panhandle or Western Oklahoma, encompassing five counties.

過去幾年，隨著水平活動的增加，西阿納達科盆地的切羅基地層已成為高產量碳氫化合物目標。這主要由自產頁岩和整合的高孔隙率砂組成。該項目目前正在德克薩斯州東北部狹長地帶或俄克拉荷馬州西部開發和規劃，涵蓋五個縣。

The DSUs we will be developing are focused in the southern area of the Cherokee core, offsetting some of the more productive wells in the play, two recent wells in which we have interest in Roger Mills County, which were codeveloped, meaning that the first and second wells were drilled and completed together had an average IP 30 of approximately 1,400 BOE per day with 60% oil. Another pair of codeveloped industry wells just to the north of these results had an average IP 30 of just under 2,000 BOE per day was 65% up.

我們將開發的DSU 集中在Cherokee 核心的南部地區，抵消了該區域中一些產量較高的油井，我們最近在Roger Mills 縣感興趣的兩口油井是共同開發的，這意味著第一口和第一口是鑽完的第二口井的平均 IP 30 約為每天 1,400 BOE，含油量為 60%。位於這些結果北部的另一對共同開發的工業井的平均 IP 30 每天略低於 2,000 BOE，成長了 65%。

PDP assets included in this acquisition are in the core of the play and are connected to Mid-Con midstream purchasers end markets and do not require any substantial infrastructure investments. The assets are relatively new horizontal wells with the oil is being just a few years old, which helps from a breakeven or reserve life perspective. We have endeavored over the past few weeks as we have with our incumbent asset base to focus on efficiently integrating these new assets and implementing our low-cost operating expertise to these assets.

此次收購中包含的 PDP 資產是該業務的核心，與 Mid-Con 中游購買者終端市場相連，不需要任何大量的基礎設施投資。這些資產是相對較新的水平井，石油只有幾年的歷史，這從損益平衡或儲量壽命的角度來看是有幫助的。在過去幾週，我們與現有資產基礎一樣，努力專注於有效整合這些新資產，並將我們的低成本營運專業知識應用到這些資產上。

Our lease operating expense for the quarter was approximately $9.1 million or $5.82 per BOE, which is a 9% reduction from the prior quarter on a BOE basis despite the incremental LOE associated with the expanded asset base from the acquisition. We continue to be mindful of commodity prices and impacts to capital allocation.

本季我們的租賃營運費用約為 910 萬美元，即每 BOE 5.82 美元，儘管與收購擴大資產基礎相關的 LOE 有所增加，但按 BOE 計算比上一季減少了 9%。我們持續關注大宗商品價格及其對資本配置的影響。

The transaction provides a potential for expanded activity, which could include the initiation of a development program this year. To sum up, the recent acquisition balances our portfolio of assets through commodity diversification, near-term development optionality and improving reserve life and durability.

該交易提供了擴大活動的潛力，其中可能包括今年啟動一項開發計劃。總而言之，最近的收購透過商品多元化、近期開發選擇性以及提高儲備壽命和耐久性來平衡我們的資產組合。

Through this acquisition, we now have the multifaceted options developed near term in a constructive WTI price environment as well as our incumbent properties in the appropriate natural gas and liquids price scenario for both when both WTI and Henry Hub prices are favorable. Long and short, this adds to our kick back and better positions us to capitalize on not only the current but future commodity cycles.

透過此次收購，我們現在擁有在建設性的 WTI 價格環境中近期開發的多方面選擇，以及在 WTI 和亨利中心價格均有利時在適當的天然氣和液體價格情況下的現有資產。無論長短，這都增加了我們的回饋，使我們能夠更好地利用當前和未來的大宗商品週期。

Now pivoting back to the base business, I will turn things over to Dean.

現在回到基礎業務，我會把事情交給迪恩。

Thank you, Grayson. Let's start on our capital program. The ducts that were previously discussed were an anticipated expansion of activity associated with our recent acquisition. From a timing standpoint, two of the ducts were completed during the third quarter and the operated well had a 30-day IP over 1,000 BOE per day with 70% oil. The last two ducts were completed during the fourth quarter and are planned to come online later this month.

謝謝你，格雷森。讓我們開始我們的資本計劃。先前討論的管道是與我們最近收購相關的活動的預期擴展。從時間角度來看，其中兩個管道在第三季完成，營運井的 30 天 IP 每天超過 1,000 BOE，含油量為 70%。最後兩條管道已於第四季完工，計劃於本月稍後上線。

We did see some meaningful cost efficiencies with the most recent completions and are hopeful to leverage these savings going forward. In addition to the ducts, we have focused on optimizing production from our incumbent asset base this year through high return and value-adding projects that provide benefits such as lowering forward-looking costs, enhancing production on existing wells and further moderating our base decline profile.

我們確實看到最近竣工的一些有意義的成本效率，並希望未來能夠利用這些節省的資金。除了管道之外，今年我們還重點透過高回報和增值項目來優化現有資產基礎的生產，這些項目帶來的好處包括降低前瞻性成本、提高現有油井的產量以及進一步緩解我們的基礎遞減情況。

The artificial lift systems we have and we'll be installing in our conversion program are tailored for the well's current fluid production and will reduce the electrical demand from the current artificial lift system, which is key to decreasing future utility costs. The focused efforts over past quarters in optimizing our wells production profile and costs that contributed to flattening the expected base asset level decline of our already producing assets. In addition to artificial lift conversions, our production optimization campaign has included heel completions, recompletions and refracs.

我們擁有的以及將在改造計劃中安裝的人工舉升系統是針對油井當前的流體生產量身定制的，並將減少當前人工舉升系統的電力需求，這是降低未來公用事業成本的關鍵。過去幾季我們致力於優化油井生產狀況和成本，這有助於平息我們已生產資產的預期基礎資產水準下降。除了人工舉升轉換之外，我們的生產優化活動還包括跟部完井、再完井和重複壓裂。

The heel completion that we piloted last quarter was successful adding 4x of production from pre-deal completion time. We have added three additional heel completion projects that will be executed this quarter. Our incumbent leasehold remains approximately 99% held by production, which cost effectively maintains our development option over a reasonable center.

我們在上季試行的後跟完成成功地將交易前完成時間的產量增加了 4 倍。我們增加了三個額外的鞋跟完成項目，將於本季執行。我們現有的租賃權仍約 99% 由生產持有，這有效地維持了我們對合理中心的開發選擇。

These non-Cherokee assets have a higher relative gas content and commodity price futures are not yet at preferred levels to resume further developments or more reactivations at this time. Commodity prices firmly over $80 WTI and $4 Henry Hub over a confident center and/or reduction in well costs are needed before we return to exercise the option value of further development or well reactivations.

這些非切羅基資產具有較高的相對天然氣含量，大宗商品價格期貨目前尚未達到恢復進一步發展或更多重新活化的首選水準。在我們返回行使進一步開發或油井重新激活的選擇權價值之前，需要使 WTI 商品價格穩定在 80 美元以上，在亨利中心穩定在 4 美元以上，並且/或降低油井成本。

With that said, we have and will be leasing in a Cherokee play, which will further bolster Cherokee development opportunities next year. The oilier content and increased productivity from these Cherokee wells will help to boost relative rates of return while decreasing breakeven pricing in high-grade areas down to roughly $35 WTI.

話雖如此，我們已經並將租賃切諾基遊戲，這將進一步增加切諾基明年的發展機會。這些 Cherokee 油井的含油量和生產力的提高將有助於提高相對回報率，同時將高品位地區的盈虧平衡價格降至約 35 美元 WTI。

Now shifting to lease operating expenses. Despite continued inflationary pressures and increased well count from our recent acquisition and prior capital programs, LOE and expense makeovers for the quarter were held to approximately $9.1 million or $5.82 per BOE. An approximate 9% per BOE reduction to the prior quarter.

現在轉向租賃營運費用。儘管通貨膨脹壓力持續存在，並且我們最近的收購和先前的資本計劃導致井數增加，但本季的 LOE 和費用調整仍保持在約 910 萬美元或每桶油當量 5.82 美元。每桶當量較上一季下降約 9%。

This was driven by successful integration of the newly acquired assets in addition to reduced water handling costs. We will continue to actively press on operating costs through rigorous bidding processes, leveraging our significant infrastructure, operation center and other company advantages.

這是由於新收購資產的成功整合以及水處理成本的降低而推動的。我們將繼續利用我們重要的基礎設施、營運中心和其他公司優勢，透過嚴格的招標流程積極降低營運成本。

In regards to price realizations, the company's largest natural gas purchaser continues to be in ethane recovery during the quarter, which increased NGL volumes for the period but also impacted natural gas and natural gas liquid pricing as more ethane is pulled out of the natural gas stream and recovered as natural gas liquids.

在價格實現方面，該公司最大的天然氣採購商在本季度繼續進行乙烷回收，這增加了該期間的液化天然氣銷量，但隨著更多的乙烷從天然氣流中抽出，也影響了天然氣和液化天然氣的價格並作為天然氣液體回收。

The duration of ethane recovery is unknown at this time and is dependent on the dynamics of pricing between natural gas and ethane moving forward. In addition, natural gas realizations were also impacted this quarter by both low Henry Hub benchmark prices, which averaged $2.19 per Mcf over the quarter, which is the fixed infield gathering and transportation costs to take up a larger percentage as well as widening local basis.

目前乙烷回收的持續時間尚不清楚，取決於未來天然氣和乙烷之間的定價動態。此外，本季天然氣實現量也受到亨利中心基準價格較低的影響，該季度平均每立方英尺 2.19 美元，其中固定的內場收集和運輸成本佔據較大比例，以及擴大的當地基礎價格。

Markets are forecasting for Panhandle Eastern where the majority of our gas is sold to return to historical trends. In addition, with the forecasted increase of Henry Hub over this winter and into next year, the fixed portion of our deducts will become a smaller percentage of the difference, translating into improved price realizations and higher benchmark prices.

市場預測 Panhandle Eastern 地區的大部分天然氣將恢復到歷史趨勢。此外，隨著亨利港在今年冬天和明年的預期成長，我們扣除的固定部分將成為差異中較小的百分比，轉化為更好的價格實現和更高的基準價格。

With that, I'll turn things back over to Grayson.

有了這個，我會把事情轉回給格雷森。

Thank you, Dean. Let us pause for a moment to revisit the key highlights of SandRidge. Our asset base is focused in the Mid-Continent region with a primarily PDP well set, which do not require any routine flaring of produced gas.

謝謝你，迪恩。讓我們暫停一下，回顧一下 SandRidge 的主要亮點。我們的資產基礎集中在中大陸地區，主要擁有 PDP 井組，不需要對產出的天然氣進行任何常規燃燒。

These well-understood assets are most fully held by production with a long history, shallowing and diversified production profile and double-digit reserve life. Our incumbent assets include more than 1,000 miles each of owned and operated SWD and electric infrastructure over our footprint.

這些眾所周知的資產最完全由歷史悠久、淺層和多樣化的生產結構以及兩位數的儲備壽命的生產所擁有。我們的現有資產包括我們擁有和營運的 SWD 和電力基礎設施各超過 1,000 英里。

This substantial owned and integrated infrastructure helps derisk individual well profitability for a majority of our legacy producing wells down to $40 WTI and $2 Henry Hub. Our assets continue to yield free cash flow with total cash after our recent acquisition as of quarter end of more than $94 million. This cash generation potential provides several paths to increase shareholder value realization and is benefited by a low G&A burden.

這種擁有大量的綜合基礎設施有助於降低我們大多數傳統生產井的單井盈利能力，其 WTI 價格低至 40 美元，Henry Hub 價格低至 2 美元。我們的資產持續產生自由現金流，最近收購後截至季末的總現金超過 9,400 萬美元。這種現金產生潛力提供了多種增加股東價值實現的途徑，並受益於較低的一般行政費用負擔。

SandRidge's value proposition is materially derisked from a financial perspective by our strengthened balance sheet, robust net cash position, no debt, financial flexibility and approximately $1.6 billion in federal NOL. Further, the company is not subject to MVCs or other significant off-balance sheet financial commitment.

從財務角度來看，我們強化的資產負債表、強勁的淨現金狀況、無債務、財務靈活性和約 16 億美元的聯邦 NOL 大大降低了 SandRidge 的價值主張的風險。此外，該公司不受 MVC 或其他重大表外財務承諾的約束。

Bolstered inventory that provides further organic growth optionality and further oil diversification with breakevens roughly down to $35 WTI in high-graded areas. Financial flexibility that allows us to make adjustments to our business to take advantage of commodity cycles.

庫存增加，提供了進一步的有機成長選擇和進一步的石油多元化，高等級地區的 WTI 損益平衡點大致降至 35 美元。財務靈活性使我們能夠對業務進行調整，以利用商品週期。

This flexibility extends to our net cash position, which among other advantages and strategic uses to include the return of capital, provide the buffer, if not a benefit to any commodity headwinds and the optionality to further grow our business.

這種靈活性延伸到我們的淨現金頭寸，除其他優勢和戰略用途外，包括資本回報，即使不能緩解任何商品逆風，也可以提供緩衝，並提供進一步發展我們業務的選擇。

Finally, it's worth highlighting that we take our ESG commitment seriously and have implemented disciplined processes around them. We remain committed to our strategy to focus on growing the cash value and generation capability of our business in a safe, responsible, efficient manner while prudently allocating capital to high-return organic growth projects.

最後，值得強調的是，我們認真對待 ESG 承諾，並圍繞這些承諾實施了嚴格的流程。我們仍然致力於我們的策略，以安全、負責、高效的方式專注於提高業務的現金價值和發電能力，同時審慎地將資本分配給高回報的有機成長項目。

We also remain vigilant and evaluate further merger and acquisition opportunities in a disciplined manner with consideration of our balance sheet and commitment to our planned return of capital program. Our strategy has five points. First is to maximize the cash value and generation capacity of our incumbent Mid-Con PDP assets by extending and flattening our production profile with high rate of return production optimization projects as well as continuously pressing on operating and administrative costs.

我們也保持警惕，並以嚴格的方式評估進一步的併購機會，同時考慮我們的資產負債表和對計畫資本回報計畫的承諾。我們的策略有五點。首先是透過高回報率生產優化項目來擴展和扁平化我們的生產概況，以及不斷壓縮營運和管理成本，從而最大限度地提高我們現有中型 PDP 資產的現金價值和發電能力。

The second is to exercise capital stewardship and invest in projects and opportunities that have high risk-adjusted fully burdened rate of return while being mindful and prudently targeting reasonable reinvestment rates to optimize our EBITDA to free cash flow conversion.

第二是實行資本管理，投資於具有高風險調整後完全負擔回報率的項目和機會，同時謹慎謹慎地瞄準合理的再投資率，以優化我們的 EBITDA 到自由現金流的轉換。

The third is to maintain optionality to execute on value-accretive merger and acquisition opportunities that could bring synergies, leverage the company's core competencies, complement our portfolio of assets, further utilize our approximately $1.6 billion of federal net operating losses or otherwise yield attractive returns for our shareholders.

第三是維持執行增值併購機會的選擇性，這些機會可以帶來協同效應，利用公司的核心競爭力，補充我們的資產組合，進一步利用我們約16 億美元的聯邦淨營運虧損，或以其他方式為公司帶來有吸引力的回報我們的股東。

Fourth, as we generate cash, we will continue to work with our Board to assess past to maximize shareholder value to include investments in strategic opportunities, advancement of our return of capital program and other uses. To this end, the company expanded its return of capital program earlier this year with $1.83 per share of dividends paid this year and a total of more than $4 per share since last year.

第四，當我們產生現金時，我們將繼續與董事會合作評估過去，以最大化股東價值，包括對策略機會的投資、推進我們的資本回報計劃和其他用途。為此，該公司今年稍早擴大了資本回報計劃，今年支付的股息為每股1.83美元，自去年以來每股股息總計超過4美元。

The final staple is to uphold our ESG responsibilities. As we look forward to next year, we plan to further progress our Cherokee development and anticipate to extend our capital investment in these very high return projects in order to help maintain our production levels while providing further oil diversification. Please keep in mind that our return of capital program will continue to be our top priority.

最後一個要點是履行我們的 ESG 責任。展望明年，我們計劃進一步推進切諾基開發，並預計擴大對這些高回報項目的資本投資，以幫助維持我們的生產水平，同時進一步實現石油多元化。請記住，我們的資本回報計劃將繼續是我們的首要任務。

And given our financial flexibility, we will exercise capital stewardship to respond to changes in commodity prices. to include activity slow down with any potential commodity downdraft or expanded activity with commodity tailwinds.

鑑於我們的財務靈活性，我們將實行資本管理以因應大宗商品價格的變化。包括因任何潛在的大宗商品下跌而導致的活動放緩或因大宗商品順風而擴大的活動。

Now shifting to administrative expenses, I'll turn things over to Brandon.

現在轉向行政費用，我將把事情交給布蘭登。

Thank you, Grayson. We were able to keep adjusted G&A to $1.6 million for the quarter or $1.02 per BOE, which is leading among our peers. As noted, the interest earned from our existing cash deposits after the acquisition nearly offset adjusted G&A for the quarter.

謝謝你，格雷森。我們能夠將本季調整後的一般管理費用保持在 160 萬美元，即每桶油當量 1.02 美元，這在同業中處於領先地位。如前所述，收購後從我們現有現金存款中賺取的利息幾乎抵消了本季調整後的一般管理費用。

The efficiency of our organization stands for our core values to remain cost disciplined as well as prior initiatives, which have tailored our organization to be fit for purpose. We plan to maintain our low cost and efficiency-focused mindset moving forward to include the recent acquisition, which will further benefit our per BOE cost metrics.

我們組織的效率代表了我們保持成本紀律的核心價值以及先前的舉措，這些舉措使我們的組織適合目標。我們計劃繼續保持以低成本和效率為中心的心態，包括最近的收購，這將進一步有利於我們的每個 BOE 成本指標。

We will continue to balance the rating of field versus corporate personnel to reflect where we actually create value and have outsourced necessary but more perfunctory and led core functions such as operations accounting, land administration, IT, tax, and HR.

我們將繼續平衡現場人員與企業人員的評級，以反映我們實際創造價值的地方，並外包必要但較為敷衍和主導的核心職能，如營運會計、土地管理、IT、稅務和人力資源。

Given our efficient structure and ability to flex with both activity and commodity prices, our total personnel has remained consistent at just over 100 people, while retaining key technical skill sets that have both the experience and institutional knowledge of our area of operations.

鑑於我們高效的結構以及靈活調整活動和商品價格的能力，我們的人員總數始終保持在 100 多人，同時保留了擁有我們業務領域經驗和機構知識的關鍵技術技能。

In summary, the company had a 76% EBITDA to free cash flow conversion rate over the first 9 months of 2024, more than $94 million in cash and cash equivalents at quarter end, which represents more than $2.50 per share of common stock issued and outstanding and expanded inventory of high rate of return, low breakeven projects.

總而言之，該公司在 2024 年前 9 個月的 EBITDA 到自由現金流的轉換率為 76%，季度末現金和現金等價物超過 9,400 萬美元，相當於每股已發行和流通的普通股超過 2.50 美元並擴大高回報率、低損益平衡項目的庫存。

A Mid-Con position that is approximately 99% held by production, which preserves the option value of future development potential in a cost-effective manner. Low overhead, top-tier adjusted G&A of approximately $1.02 per BOE for the quarter.

中型企業的地位約 99% 由生產佔據，這以具有成本效益的方式保留了未來發展潛力的選擇權價值。本季管理費用較低，調整後的頂級管理費用約為每 BOE 1.02 美元。

No debt, in fact, negative leverage. Positive free cash flow and a growing net cash position supported by a flattening production profile and double-digit reserve life asset base and $1.6 billion of federal NOLs, it will shield future free cash flow from federal income tax. This concludes our prepared remarks.

沒有負債，其實就是負槓桿。正的自由現金流和不斷增長的淨現金頭寸，在生產狀況趨平、兩位數的儲備壽命資產基礎和16 億美元的聯邦NOL 的支持下，將保護未來的自由現金流免受聯邦所得稅的影響。我們準備好的演講到此結束。

Thank you for your time. We will now open the call to questions.

感謝您抽出時間。我們現在開始提問。

(Operator Instructions) Kyle May, Sidoti and Company.

（操作員說明）Kyle May，Sidoti 和公司。

Hey. Good afternoon, everyone. I was wondering if we could start with the latest acquisition and if you could maybe expand on your drilling activity plans for the Cherokee play asset?

嘿。大家下午好。我想知道我們是否可以從最新的收購開始，您是否可以擴大切羅基遊樂資產的鑽探活動計劃？

Sure, Kyle. I appreciate you calling in and great question. Our recent plans have been to complete the ducts Dean talked about on the call. And we're putting together a plan to initiate drilling on our joint efficient units that will extend into next year. So we have 11 DSUs, 22 extended reach or 2-mile laterals that we'll be developing over the next couple of years.

當然，凱爾。感謝您的來電並提出了很好的問題。我們最近的計劃是完成迪恩在電話中談到的管道。我們正在製定一項計劃，在我們的聯合高效裝置上啟動鑽探，該計劃將延續到明年。因此，我們有 11 個 DSU、22 個長距離或 2 英里支線，我們將在未來幾年內開發它們。

Okay. Great. Any sense of how many you might drill next year?

好的。偉大的。你知道明年你可能會鑽多少個嗎？

I think our plan right now is to developed with one rig or a partial rig year, and you can drill 1 well every 30 days. So you get a massive of 12 wells in a year. So that would be our threshold for where we're at right now.

我認為我們現在的計劃是用一台鑽機或部分鑽機年進行開發，每30天可以鑽1口井。所以一年內你會得到 12 口井。所以這將是我們現在所處的門檻。

Okay. Great. And 1 follow-up for me. Can you provide any details about the well cost and expected returns in the Cherokee play compared to your legacy asset?

好的。偉大的。以及我的 1 個後續行動。您能否提供有關 Cherokee 油田與您的遺留資產相比的油井成本和預期回報的詳細資訊？

Sure. No, we're glad to expand on that. I think, as I've mentioned a couple of times on the call, the Cherokee assets has higher oil content relative to our legacy assets, which are more gassy in nature. And therefore, the economics today but more attractive just given the ratio between WTI and Henry Hub.

當然。不，我們很高興對此進行擴展。我認為，正如我在電話會議中多次提到的那樣，切羅基資產相對於我們的傳統資產具有更高的石油含量，而我們的傳統資產本質上含有更多的氣體。因此，考慮到 WTI 和亨利港之間的比率，今天的經濟更具吸引力。

Again, as that changes in the future, this acquisition gives us more tools in the kit bag for capital allocation purposes where WTI is constructive, we can lean more into the Cherokee assets. And as gas is projected in contango to be higher in the future, we can exercise our development options on those legacy assets and in a favorable environment for both commodities, but we can lean into both.

同樣，隨著未來情況的變化，這次收購為我們提供了更多用於資本配置目的的工具，其中 WTI 具有建設性，我們可以更多地投資切諾基資產。由於預計未來天然氣的期貨溢價會更高，我們可以在對這兩種商品有利的環境中對這些遺留資產行使我們的開發選擇，但我們可以同時利用這兩種資產。

I think the returns in the area are robust enough that we feel it makes sense to continue to allocate capital there going into next year. And I mentioned that the breakeven is up here are roughly $35 per barrel and WTI to give you a relative sense on where the floor is at.

我認為該地區的回報足夠強勁，我們認為明年繼續在那裡分配資本是有意義的。我提到這裡的損益平衡點約為每桶 35 美元，WTI 可以讓您相對了解底部的位置。

Okay, great. I appreciate the time today.

好的，太好了。我很感激今天的時間。

Yeah. Thank, you Kyle.

是的。謝謝你，凱爾。

(Operator Instructions) And we have no further questions. This does conclude today's conference call. We thank you for your participation and you may now disconnect.

（操作員說明）我們沒有其他問題了。今天的電話會議到此結束。我們感謝您的參與，您現在可以斷開連接。