SandRidge Energy Inc (SD) 2025 Q1 法說會逐字稿

Good afternoon, and welcome to SandRidge Energy's first quarter 2025 earnings conference call. (Operator Instructions) As a reminder, this conference call is being recorded. I would now like to turn the call over to Scott Prestridge, SVP of Finance and Strategy. Please go ahead.

下午好，歡迎參加 SandRidge Energy 2025 年第一季財報電話會議。（操作員指示）提醒一下，本次電話會議正在錄音。現在我想將電話轉給財務和策略高級副總裁 Scott Prestridge。請繼續。

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.

謝謝大家，歡迎大家。今天和我一起的還有我們的執行長 Grayson Pranin；我們的財務長 Jonathan Frates； Brandon Brown，我們的首席行政官；以及我們的營運長 Dean Parrish。

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.

我們想提醒您，今天的電話會議包含前瞻性陳述和假設，這些陳述和假設受風險和不確定性的影響，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 and as discussed in greater detail in our earnings release and our SEC filings.

這些聲明並不能保證未來的業績，我們的實際結果可能由於已知和未知的風險和不確定性而存在重大差異，正如我們在收益報告和美國證券交易委員會文件中更詳細地討論的那樣。

We may also refer to adjusted EBITDA and adjusted G&A and other non-GAAP financial measures. Reconciliations of these measures can be found on our website.

我們也可以參考調整後的 EBITDA、調整後的 G&A 和其他非 GAAP 財務指標。您可以在我們的網站上找到這些措施的對帳。

With that, I'll turn the call over to Grayson.

說完這些，我會把電話轉給格雷森。

Thank you, and good afternoon. I'm pleased to report on a positive quarter for the company. In the first quarter, total production averaged nearly 18 MBoe per day, an increase of approximately 17% and on a BOE basis and 30% on an oil basis as well as roughly 40% increase in revenue and EBITDA relative to the same period last year benefited from our prior Cherokee acquisition and improved commodity price realizations. Before expanding on this, Jonathan will touch on a few key highlights.

謝謝，下午好。我很高興地向大家報告公司本季的良好業績。第一季度，總產量平均每天接近 18 MBoe，按桶油當量計算增長約 17%，按石油計算增長 30%，同時收入和 EBITDA 與去年同期相比增長約 40%，這得益於我們之前對 Cherokee 的收購以及商品價格實現的提高。在詳細闡述這一點之前，喬納森將先談幾個關鍵亮點。

Thank you, Grayson. Compared to the first quarter of 2024, the company benefited from significantly improved natural gas prices, partially offset by headwinds in WTI. Combined with growing production, the company generated revenues of approximately $43 million, which represents a 41% increase compared to the same period last year and a 9% increase sequentially.

謝謝你，格雷森。與 2024 年第一季相比，該公司受益於天然氣價格的大​​幅上漲，但 WTI 的不利因素部分抵消了這一上漲。加上產量的成長，該公司創造了約 4,300 萬美元的收入，比去年同期成長 41%，比上一季成長 9%。

Adjusted EBITDA was $25.5 million in the quarter compared to roughly $15 million in the prior year period. We continue to manage the business within cash flow, have no debt and maintain a substantial NOL position that shields us from federal income taxes.

本季調整後的 EBITDA 為 2,550 萬美元，而去年同期約為 1,500 萬美元。我們繼續在現金流範圍內管理業務，沒有債務，並保持可觀的淨現金流，以免受聯邦所得稅的影響。

Cash, including restricted cash at the end of the quarter with just over $100 million which represents more than $2.75 per share of our common stock outstanding.

現金，包括本季末的受限現金，略高於 1 億美元，相當於我們流通在外的普通股每股 2.75 美元以上。

The company paid $4 million in dividends during the quarter, which, including special dividends, now represents $4.25 per share paid to shareholders since the beginning of 2023. On May 5, 2025 the Board of Directors declared an $0.11 per share cash dividend payable on June 2 to shareholders of record on May 19.

該公司本季支付了 400 萬美元的股息，包括特別股息在內，自 2023 年初以來已向股東支付每股 4.25 美元。2025 年 5 月 5 日，董事會宣布向 5 月 19 日登記在冊的股東派發每股 0.11 美元的現金股息，發放日期為 6 月 2 日。

Following the recent decline in oil prices, the company repurchased 452,000 or $5 million worth of common shares in the first quarter. Our share repurchase program remains in place with just under $70 million remaining authorized as of quarter end. As noted, 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 flows from operations.

隨著近期油價下跌，該公司在第一季回購了 452,000 股普通股，價值 500 萬美元。我們的股票回購計畫仍在實施中，截至季末，授權回購金額仍略低於 7,000 萬美元。如上所述，該公司沒有定期債務或循環債務義務，並繼續在現金流範圍內生存，透過經營現金流為所有資本支出和資本回報提供資金。

Commodity price realizations for the quarter before considering the impact of hedges were $69.88 per barrel of oil, $2.69 per Mcf of gas and $20.07 per barrel of NGL. This compares to fourth quarter 2024 realization of $71.44 per barrel of oil, $1.47 per Mcf of gas and $18.19 per barrel of NGL.

考慮對沖影響之前，本季商品價格實現情況為每桶石油 69.88 美元、每千立方英尺天然氣 2.69 美元和每桶 NGL 20.07 美元。相比之下，2024 年第四季石油價格為每桶 71.44 美元，天然氣價格為每千立方英尺 1.47 美元，天然氣液體價格為每桶 18.19 美元。

Our production remains meaningfully hedged through the remainder of the year with a combination of swaps and collars representing nearly 30% of guided production. This includes over 40% of natural gas production and roughly 15% of oil. These hedges will help secure a portion of our cash flows and support our drilling programs during the recent downdraft in prices.

在今年剩餘時間內，我們的產量仍將有效對沖，其中掉期和領圈的組合佔指導產量的近 30%。其中包括超過 40% 的天然氣產量和約 15% 的石油。這些對沖將有助於確保我們的部分現金流，並在最近價格下跌期間支持我們的鑽探計劃。

Despite growing production, our commitment to cost discipline continues to yield results with adjusted G&A for the quarter of approximately $2.9 million or $1.83 per BOE compared to $2.8 million or $2.03 per BOE in the first quarter last year.

儘管產量不斷增長，但我們對成本控制的承諾繼續產生效果，本季調整後的 G&A 成本約為 290 萬美元或每桶油當量 1.83 美元，而去年第一季為 280 萬美元或每桶油當量 2.03 美元。

Net income was $13 million during the quarter or $0.35 per basic share, and adjusted net income was $14.5 million or $0.39 per basic share. This compares to $11 million or $0.30 per basic share and $8.4 million or $0.23 per basic share, respectively, during the same period last year.

本季淨收入為 1,300 萬美元，即每股基本收入 0.35 美元，調整後淨收入為 1,450 萬美元，即每股基本收入 0.39 美元。相比之下，去年同期的利潤分別為 1,100 萬美元或每股 0.30 美元，以及 840 萬美元或每股 0.23 美元。

Adjusted operating cash flow was roughly $26 million during the quarter. Finally, despite a higher CapEx program, the company generated free cash flow before acquisitions of roughly $14 million during the quarter near that of the first quarter of 2024. 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.

本季調整後的營運現金流約為 2,600 萬美元。最後，儘管資本支出計畫較高，但該公司在本季收購前產生的自由現金流約為 1,400 萬美元，接近 2024 年第一季的水準。在轉向我們的展望之前，我們應該注意到，我們的收益報告和 10-Q 將提供有關本季度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 operations before touching on other company highlights. In the first quarter, the company successfully drilled the first well of our operated one rig Cherokee drilling program with first production anticipated later this month. Dean will touch more on this later.

謝謝你，喬納森。我認為在談及公司其他亮點之前，先簡要介紹一下營運情況會很有用。第一季度，該公司成功鑽探了我們營運的單鑽機切諾基鑽井計畫的第一口井，預計本月稍後將首次投產。Dean 稍後會詳細談論這一點。

While we are anticipating our first result later this month for non-op and industry wells directly offsetting this well and other DSUs we will be developing this year at initial average production rates of over 1,000 barrels of oil or 2,000 barrels of equivalent per day. These new wells give further confidence that reservoir quality results consistency and expectations in the area. We hope to share more details on this in our operated results next quarter.

雖然我們預計本月稍後將公佈非作業油井和工業油井的首批結果，但這些結果將直接抵消這口油井和其他 DSU 的產量，我們今年的開發初始平均產量將超過 1,000 桶石油或 2,000 桶當量/天。這些新井進一步增強了人們對該地區儲層品質一致性和預期的信心。我們希望在下個季度的營運結果中分享更多有關此方面的詳細資訊。

As I mentioned previously, production for the quarter increased approximately 17% and 30% on a BOE and oil basis year-over-year. As we look forward to developing our high-return Cherokee assets this year, we anticipate growing oilier production volumes further. From a timing perspective, most of the production from our development program will occur in the second half of this year with exit rates projected around 19 MBoe per day and increasing oil production rates, estimated around another 30% relative to Q1.

正如我之前提到的，本季產量以桶油當量和石油計算年增約 17% 和 30%。我們期待今年開發高回報的切諾基資產，並預計石油產量將進一步成長。從時間角度來看，我們開發計畫的大部分產量將在今年下半年實現，預計產量約為每天 19 MBoe，石油產量將持續增加，預計相對於第一季將再增加 30% 左右。

In addition, two completions will carry over into the next year and should further drilling also continue, we will see production volumes and specifically oil volumes increased meaningfully above the year-end '25 exit rate up. However, please keep in mind that we will continue to be mindful of results, commodity prices, cost macroeconomics and other factors, which will shape our capital decisions this year and beyond.

此外，兩處完井作業將延續到明年，如果進一步鑽探繼續進行，我們將看到產量，特別是石油產量將比 25 年底的產出率大幅增加。但是，請記住，我們將繼續關注結果、商品價格、成本宏觀經濟和其他因素，這些因素將影響我們今年及以後的資本決策。

Shifting over to commodity prices. WTI prices have been around the low $60 range over the last several weeks and recently tested the high 50s. Although the forward-looking curve has been relatively flat, we will continue to vigilantly monitor WTI prices.

轉向商品價格。過去幾週，WTI 價格一直在 60 美元左右徘徊，最近又突破了 50 美元的高點。儘管前瞻性曲線相對平坦，但我們將繼續密切監控 WTI 價格。

Current commodity prices, our operated Cherokee well, have a robust returns and breakeven for these new wells are down to $35 WTI. However, we could begin to moderate or curtail a portion of our capital program before we reach these levels if headwinds are more severe and present further pressure on returns.

以目前的商品價格，我們營運的切諾基油井擁有豐厚的回報，這些新油井的損益平衡點降至 35 美元 WTI。然而，如果逆風更加嚴重並對回報造成進一步壓力，我們可能會在達到這些水平之前開始緩和或削減部分資本計劃。

Given that the program is weighted in the back half of the year, we have time to continue to monitor commodity prices. Since we do not have significant leasehold expirations this year, we have the flexibility to defer these projects, if needed, for a period of time in order to better time the commodity environment and optimize both our cash flows and project returns.

鑑於該計劃在下半年發揮重要作用，我們有時間繼續監控商品價格。由於今年我們沒有重大的租賃到期，因此我們可以靈活地推遲這些項目（如果需要），以便更好地掌握商品環境並優化我們的現金流和項目回報。

While our acreage is 95% held by production, we do have undeveloped leases to include leases in the Cherokee play that have expirations.

雖然我們的 95% 的土地用於生產，但我們確實有未開發的租約，包括切諾基油田的租約，這些租約已經到期。

So long and short, we have the flexibility to adjust our capital program this year to respond to commodity price challenges and will do so in a judicious manner while managing lease expirations and other considerations.

因此，無論長遠還是短期，我們都可以靈活地調整今年的資本計劃，以應對商品價格挑戰，並將以明智的方式進行調整，同時管理租賃到期和其他考慮因素。

Now on to natural gas prices. We benefited during the quarter with Henry Hub prices, which have been more robust and durable rising to $4.30 per Mcf a near doubling of that from 2024, while there has been some volatility in early Q2, the natural gas price outlook remains strong.

現在來談談天然氣價格。本季度，我們受益於亨利中心天然氣價格的強勁和持久上漲，漲至每千立方英尺 4.30 美元，幾乎是 2024 年價格的兩倍，雖然第二季度初出現了一些波動，但天然氣價格前景依然強勁。

The real so-what here is the optionality we have across our asset base coupled with the strength of our balance sheet that situates us well to navigate changing commodity environment. Combination of our Cherokee and legacy assets as well as improvement in natural gas prices give us multi-faceted options to maneuver and leverage different commodity cycles.

真正重要的是，我們的資產基礎具有選擇性，加上我們資產負債表的強勁，使我們能夠很好地應對不斷變化的商品環境。我們的切諾基和遺留資產的結合以及天然氣價格的上漲為我們提供了多方面的選擇來操縱和利用不同的商品週期。

Our Cherokee development adds value when WTI is constructive, and we could take advantage of our legacy properties through well reactivation incremental production optimization projects and possibly even a development at the appropriate natural gas and liquid prices or potentially both when WTI and Henry Hub are both constructive.

當 WTI 具有建設性時，我們的切諾基開發項目會增加價值，並且我們可以透過油井重新激活增量生產優化項目來利用我們的遺留資產，甚至可能在 WTI 和亨利中心都具有建設性時以適當的天然氣和液體價格進行開發，或者兩者兼而有之。

Conversely, given the relatively low breakeven of our producing properties and our cash balance of just over $100 million, we're also well positioned not only to weather but the right circumstances to take advantage of lower commodity environments by acquiring additional producing properties at attractive prices.

相反，考慮到我們生產資產的損益平衡點相對較低，且現金餘額僅略高於 1 億美元，我們不僅能夠安然度過危機，還能利用適當的情況下以有吸引力的價格收購額外的生產資產，從而利用較低的商品環境。

Put more simply, we have a strong balance sheet and a more versatile kit back which makes the company more resilient and better poised maneuver and adjust with the commodity environment.

更簡單地說，我們擁有強大的資產負債表和更靈活的裝備，這使得公司更具彈性，能夠更好地應對和適應商品環境。

Now I'll turn things over to Dean to discuss operations in more detail.

現在我將把事情交給 Dean 來更詳細地討論營運事宜。

Thank you, Grayson. Let's start on our capital program. The first operated well in our program and two non-operated wells were drilled in the Cherokee play last quarter. First production on the operated well is expected later this month. Early indications during drilling and completion are positive, and we anticipate having production results to report next quarter.

謝謝你，格雷森。讓我們開始我們的資本計劃。上個季度，我們專案中的第一口營運井和兩口未營運井在切諾基油田進行了鑽探。預計本月稍後該油井將首次投產。鑽井和完井期間的早期跡像是積極的，我們預計下個季度將報告生產結果。

Our team successfully planned and executed drilling of the first operated well on budget with minimal operational issues. We are currently pad drilling wells number two and three and anticipate to complete and have production for these wells in the next quarter.

我們的團隊成功地規劃並執行了第一口營運井的鑽探，且預算有限，操作問題也很少。我們目前正在鑽探第二號和第三號平台井，預計下個季度這些井將完工並投入生產。

We plan to drill eight operated Cherokee wells with 1 rig this year and complete six wells. The remaining two completions are anticipated to carry over to next year. More than 80% of our planned wells are proved undeveloped or PUDs with others projected to be converted to PUDs by year-end. This means that our planned drilling locations this year will offset producing wells, which translates to higher relative confidence and well performance.

我們計劃今年使用 1 台鑽機鑽探 8 口已運作的切諾基井，並完成 6 口井。其餘兩座工程預計將延續至明年完工。在我們計劃開採的油井中，超過 80% 已被證實尚未開發或處於 PUD 狀態，而其他油井預計到年底將轉變為 PUD。這意味著我們今年計劃的鑽井地點將抵消生產井，從而帶來更高的相對信心和井性能。

Additionally, this could set up new PUD additions or extensions at the end of the year. Gross well costs vary by debt, but are estimated to be between approximately $9 million and $11 million. While we have taken proactive steps to help mitigate these effects of inflation, further changes to tariffs or other factors could influence these costs in the future.

此外，這可能會在年底建立新的 PUD 附加或擴展。總油井成本因債務而異，但估計約為 900 萬美元至 1,100 萬美元。雖然我們已採取積極措施來幫助減輕通貨膨脹的影響，但關稅或其他因素的進一步變化可能會在未來影響這些成本。

From a timing standpoint, most of the production from this year's capital program will occur in the second half of the year with the benefit extending into next year. We intend to spend between $66 million and $85 million in our 2025 capital program, which is made up of $47 million to $63 million in drilling and completions activity in between $19 million and $22 million in capital workovers, production optimization, and selective leasing in the Cherokee play.

從時間角度來看，今年資本計畫的大部分產出將在下半年發生，其效益將延續到明年。我們計劃在 2025 年資本計畫中投入 6,600 萬至 8,500 萬美元，其中包括 4,700 萬至 6,300 萬美元用於鑽井和完井活動，以及 1,900 萬至 2,200 萬美元用於資本修井、生產優化和切諾基油田的選擇性租賃。

Our high-graded leasing is focused to further bolster our interest, consolidate our position and extend development into future years. We intend to fund capital expenditures and other commitments using cash flows from our operations and cash on hand.

我們的高級租賃致力於進一步增強我們的利益，鞏固我們的地位並延伸未來幾年的發展。我們打算利用經營活動產生的現金流量和庫存現金來支付資本支出和其他承諾。

As Grayson discussed earlier, our operated Cherokee wells have robust returns at current commodity prices. However, we could moderate or curtail our capital program as headwinds persist or present further pressures on rates of return.

正如格雷森之前所討論的，我們經營的切諾基油井在當前商品價格下獲得了豐厚的回報。然而，由於逆風持續存在或對回報率造成進一步壓力，我們可能會緩和或縮減我們的資本計劃。

If we were to take these steps, we would likely begin by reducing non-D&C spend and if faced with more challenging commodity prices followed by deferring certain completions and which would make up roughly 60% of new well costs.

如果我們採取這些措施，我們可能會先減少非勘探和開採支出，如果面臨更具挑戰性的商品價格，則推遲某些完井，這將佔新井成本的約 60%。

In this scenario, we would be positioned to more quickly take advantage of commodity price improvements, maintain current drilling efficiencies and managed lease expirations and other factors. Under more extreme downside cases, we have the optionality to take further steps to defer projects, minimize spending and optimize cash flows.

在這種情況下，我們將能夠更快地利用商品價格上漲，保持目前的鑽井效率並管理租約到期等因素。在更極端的下行情況下，我們可以選擇採取進一步措施推遲專案、減少支出並優化現金流。

Through the first quarter, 13 wells were converted to rod pumps and five wells were reactivated as we continue to focus on 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.

在第一季度，我們繼續專注於高回報和增值項目，將 13 口井轉換為桿式泵，並重新啟用了 5 口井，這些項目可帶來諸如降低前瞻性成本、提高現有井的產量以及進一步緩和我們的基本下降趨勢等好處。

The artificial lift systems we have and will 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.

我們在轉換計畫中已經安裝並將要安裝的人工舉升系統是針對油井當前的流體產量量身定制的，並將減少當前人工舉升系統的電力需求，這對於降低未來的公用事業成本至關重要。

The focused efforts over past quarters in optimizing our well production profile and cost have contributed to flattening the expected base asset level decline of our already producing assets to single-digit average over the next 10 years.

我們在過去幾季中致力於優化油井生產狀況和成本，這有助於將我們已經在產資產的預期基準資產水準下降趨勢在未來 10 年內穩定在個位數平均值。

Our legacy assets remain approximately 99% held by production, which cost effectively maintains our development option over a reasonable tenor. These non-Cherokee assets have high relative gas content, but commodity price futures are not yet at preferred levels to resume further development or more well reactivations at this time.

我們的遺留資產仍有約 99% 由生產部門持有，這可以在合理的期限內以經濟有效的方式維持我們的開發選擇。這些非切諾基資產的相對天然氣含量較高，但目前商品價格期貨尚未達到恢復進一步開發或更多油井重新啟用所需的有利水準。

Commodity prices firmly over $80 WTI and $4 Henry Hub over a confident tenor and/or reduction in well costs are needed before we would return to exercise the option value of further development or low reactivations.

在我們重新行使進一步開發或低再啟動的選擇權價值之前，需要大宗商品價格在有信心的期限內穩固地超過 80 美元 WTI 和 4 美元 Henry Hub 和/或降低油井成本。

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 workovers for the quarter were held to approximately $10.9 million or $6.79 per BOE, which compares favorably to $7.92 per BOE in the first quarter last year.

現在轉向租賃營運費用。儘管通膨壓力持續存在，且近期收購和先前的資本計畫導致油井數量增加，但本季的油井成本和修井費用仍控制在約 1,090 萬美元或每桶油當量 6.79 美元，與去年第一季的每桶油當量 7.92 美元相比有所改善。

We will continue to actively press on operating costs through rigorous spending processes, leveraging our significant infrastructure, operations center and other company advantages.

我們將繼續透過嚴格的支出流程積極控制營運成本，利用我們重要的基礎設施、營運中心和其他公司優勢。

With that, I will turn things back over to Grayson.

說完這些，我會把事情交還給格雷森。

Thank you, Dean. I will now revisit the key highlights of SandRidge. Our asset base is focused in the Mid-Continent region with a primarily PDP well set which does not require any routine flaring of produced gas. These well-understood assets are almost fully held by production with a long history, shallowing and diversified production profile and double-digit reserve life.

謝謝你，迪恩。現在我將重新回顧 SandRidge 的主要亮點。我們的資產基礎集中在中部大陸地區，主要擁有 PDP 井組，不需要對生產的天然氣進行任何常規燃燒。這些眾所周知的資產幾乎完全由具有悠久歷史、淺化和多樣化生產概況以及兩位數儲量壽命的生產所持有。

Our incumbent assets include more than 1,000 miles of each of owned and operated SWD and electrical infrastructure over our footprint. This substantial owned and integrated infrastructure helps derisk individual well profitability for a majority of our legacy producing wells under roughly $40 WTI and $2 Henry Hub.

我們現有的資產包括我們擁有和營運的超過 1,000 英里的 SWD 和電力基礎設施。這種大規模自有和整合的基礎設施有助於降低我們大多數傳統生產井在 WTI 價格約為 40 美元和 Henry Hub 價格約為 2 美元以下的單井盈利風險。

Our assets continue to yield free cash flow and we have negative net leverage. This cash generation for digital provides several paths to increase shareholder value realization and is benefited by a low G&A burden. SandRidge's value proposition is materially derisked from a financial perspective by our strengthened balance sheet, financial flexibility and advantaged tax position.

我們的資產持續產生自由現金流，我們的淨槓桿比率為負。數位化的現金創造提供了多種途徑來增加股東價值實現，並且受益於較低的一般及行政負擔。從財務角度來看，SandRidge 的價值主張因我們增強的資產負債表、財務靈活性和有利的稅務地位而大大降低了風險。

Further, the company is not subject to MVCs or other significant off balance sheet financial commitments. We have bolstered our inventory to provide further organic growth optionality and incremental oil diversification with low breakeven in high-graded areas.

此外，該公司不受 MVC 或其他重大表外財務承諾的約束。我們增加了庫存，以提供進一步的有機成長選擇和增量石油多樣化，並在高品位地區實現低損益平衡。

We maintain financial flexibility that allows us to adjust our strategy to take advantage of commodity cycles. This flexibility to provide advantages and strategic optionality to further grow our business and provide a buffer to commodity headwinds while protecting our capital return program.

我們保持財務靈活性，這使我們能夠調整策略以利用商品週期。這種靈活性提供了優勢和策略選擇性，以進一步發展我們的業務，並為商品逆風提供緩衝，同時保護我們的資本回報計劃。

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 in growing the value 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，我們認真對待我們的 ESG 承諾，並圍繞其實施了嚴格的流程。我們將繼續致力於我們的策略，以安全、負責、高效的方式增加我們的業務價值，同時審慎地將資本分配給高回報的有機成長項目。

We'll also evaluate merger and acquisition opportunities in a disciplined manner with consideration of our balance sheet and commitment to our capital return program. This strategy has 5 points. One, maximize the value 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.

我們也將以嚴謹的方式評估併購機會，同時考慮我們的資產負債表和對資本回報計畫的承諾。此策略有5點。一是，透過高回報率的生產優化項目來擴展和扁平化我們的生產狀況，並不斷降低營運和管理成本，從而最大限度地提高我們現有的 Mid-Con PDP 資產的價值。

Two, exercise capital stewardship and invest in projects and opportunities that have high risk-adjusted fully burdened rates of return while being mindful and prudently targeting reasonable reinvestment rates that sustain our cash flows and prioritize a regular-way dividend.

二、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，同時謹慎地瞄準合理的再投資率，以維持我們的現金流並優先考慮定期股息。

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

第三，保持選擇性地執行增值併購機會，這些機會可以帶來協同效應，利用公司的核心競爭力，補充其資產組合，進一步利用約 16 億美元的聯邦淨營運虧損，或為股東帶來可觀的回報。

Four, as we generate cash, we will continue to work with our Board to assess paths to maximize shareholder value to include investments in strategic opportunities advancement of our return of capital program and other uses.

第四，在我們產生現金的同時，我們將繼續與董事會合作，評估最大化股東價值的途徑，包括投資策略機會、推進資本回報計畫和其他用途。

The final staple, assess all of our ESG responsibilities. As we look forward to the year and beyond, we plan to further progress our Cherokee development while monitoring commodity prices results in other factors in order to realize high rates of return as well as maintain our production level while providing further oil diversification.

最後一項重點是評估我們所有的 ESG 責任。展望今年及以後，我們計劃進一步推進切諾基開發，同時監控商品價格對其他因素的影響，以實現高回報率並保持生產水平，同時進一步實現石油多樣化。

With continued success in support of commodity prices, we are hopeful to expand to a multiyear development plan. Please keep in mind that our return of capital program will continue to be our top priority. And given our financial flexibility, we will exercise capital stewardship to respond to changes in commodity prices, costs, macroeconomic or other factors. Shifting to administrative expenses.

隨著在支持商品價格方面不斷取得成功，我們希望擴展到多年發展計畫。請記住，我們的資本回報計劃將繼續是我們的首要任務。鑑於我們的財務靈活性，我們將實施資本管理以因應商品價格、成本、宏觀經濟或其他因素的變化。轉向管理費用。

I will turn things over to Brandon.

我會把事情交給布蘭登。

Thank you, Grayson. As we wind up our prepared remarks, I will point out our first quarter adjusted G&A of $2.9 million or $1.83 per BOE continues to compare favorably to our peers. The ongoing efficiency of our organization stems from our core values to remain cost disciplined and prior initiatives, which have tailored our organization to be fit for purpose.

謝謝你，格雷森。在我們結束準備好的演講時，我要指出，我們第一季調整後的 G&A 為 290 萬美元或每桶油當量 1.83 美元，與同行相比仍然具有優勢。我們組織的持續效率源於我們的核心價值觀，即保持成本紀律和先前的舉措，這些使我們的組織適應目標。

We will maintain our cost conscious and efficiency-focused mindset moving forward and continue to balance the weighting of field versus corporate personnel to reflect where we create value. We have outsourced necessary but perfunctory and less core functions such as operations accounting, land administration, IT, tax and HR.

我們將繼續保持注重成本和注重效率的思維方式，並繼續平衡現場人員和公司人員的權重，以反映我們創造價值的地方。我們將必要但敷衍且較不核心的職能（如營運會計、土地管理、IT、稅務和人力資源）外包出去。

Our efficient structure has allowed us to operate with total personnel at just over 100 people while retaining key technical skill sets that have both the experience and institutional knowledge of our business. In summary, the company had free cash flow of approximately $14 million during the quarter, over $100 million in cash and cash equivalents at quarter end which represents more than $2.75 per share of our common stock outstanding and inventory of high rate of return, low breakeven projects.

我們高效的結構使我們能夠以超過 100 名員工的總人數開展運營，同時保留了具有我們業務經驗和機構知識的關鍵技術技能。綜上所述，公司本季的自由現金流約為 1,400 萬美元，季度末的現金和現金等價物超過 1 億美元，相當於我們流通在外的普通股每股超過 2.75 美元，並且擁有高回報率、低盈虧平衡點項目的庫存。

And overall, mid composition that is approximately 95% held by production, which preserves the option value of future development potential of our legacy acreage in a cost-effective manner. Low overhead, top-tier adjusted G&A, no debt, negative leverage, flattening production profile, double-digit reserve life and approximately $1.6 billion of federal NOLs.

整體而言，中間構成約 95% 由生產持有，這以經濟高效的方式保留了我們遺留土地未來發展潛力的選擇權價值。低管理費用、頂級調整後的一般及行政開支、無債務、負槓桿、平坦的生產狀況、兩位數的儲量壽命和約 16 億美元的聯邦淨經營虧損。

This concludes our prepared remarks. Thank you for your time today. We will now open the call to questions.

我們的準備好的演講到此結束。感謝您今天抽出時間。我們現在開始提問。

(Operator Instructions)

（操作員指示）

We have no questions in queue. This will conclude today's conference call. Thank you for your participation. You may now disconnect.

我們沒有待處理的問題。今天的電話會議到此結束。感謝您的參與。您現在可以斷開連線。