SandRidge Energy Inc (SD) 2025 Q2 法說會逐字稿

Thank you for standing by and welcome to the SandRidge Energy second-quarter 2025 earnings conference call. (Operator Instructions) I would now like to turn the call over to Scott Prestridge, SVP of Finance and Strategy. You may begin.

感謝您的支持，歡迎參加 SandRidge Energy 2025 年第二季財報電話會議。（操作員指示）現在我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，歡迎大家。今天與我一起出席的有我們的執行長 Grayson Pranin、我們的財務長 Jonathan Frates、我們的首席行政官 Brandon Brown 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，這些陳述和假設具有風險和不確定性，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 guaranteed 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. Reconciliations of these measures can be found on our website. With that, I'll turn the call over to Grayson.

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，正如我們的收益報告和美國證券交易委員會文件中更詳細討論的那樣。我們也可以參考調整後的 EBITDA、調整後的 G&A 和其他非 GAAP 財務指標。這些措施的對帳可以在我們的網站上找到。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 in the first half for the company. Second quarter production averaged just under 18 MBoe per day, an increase of approximately 19% on a Boe basis and 46% on oil, translating to a roughly 33% increase in revenue and 76% increase in adjusted EBITDA, relative to the same period last year. Benefiting from increased volumes from our prior Cherokee acquisition and development program this year. In addition, we brought on the first well from our Cherokee development program with a 30-day IP of approximately 2,300 Boe per day with 49% oil. Before expanding on this, Jonathan will touch on a few highlights.

謝謝，下午好。我很高興地向大家報告，公司上半年取得了正面的業績。第二季的產量平均每天略低於 18 MBoe，以桶油當量計算成長約 19%，以石油運算成長 46%，與去年同期相比，營收成長約 33%，調整後 EBITDA 成長 76%。受惠於我們今年之前的切諾基收購和開發計劃帶來的銷售成長。此外，我們也從切諾基開發計畫中引進了第一口油井，其 30 天 IP 產量約為每天 2,300 桶油當量，含油率為 49%。在詳細闡述這一點之前，喬納森將先談一些重點。

Thank you, Grayson. Compared to the first quarter of 2024, the company continued to benefit from improved natural gas prices partially offset by ongoing headwinds in WTI. Combined with growing production, the company generated revenues of approximately $35 million which represents a 33% increase compared to the same period last year. Adjusted EBITDA was $22.8 million in the quarter compared to $12.9 million in the prior year period. We continue to manage the business within cash flow while growing production, maintaining no debt, and utilizing our substantial NOL, which shields us from federal income taxes.

謝謝你，格雷森。與 2024 年第一季相比，該公司繼續受益於天然氣價格上漲，但 WTI 持續的逆風部分抵消了這一上漲。隨著產量的成長，該公司創造了約 3,500 萬美元的收入，與去年同期相比成長了 33%。本季調整後 EBITDA 為 2,280 萬美元，而去年同期為 1,290 萬美元。我們繼續在現金流量範圍內管理業務，同時增加產量，保持無債務，並利用我們大量的淨營業收入（NOL），這可以使我們免於繳納聯邦所得稅。

At the end of the quarter, cash, including restricted cash, was just over $104 million which represents more than $2.80 for common share outstanding. The company paid $4 million in dividends during the quarter, which, including special dividends, now represents $4.36 per share paid to shareholders since the beginning of 2023. On August 5, 2025, the board of directors declared a $0.12 per share dividend, a 9% increase payable on September 29 to shareholders of record on September 22, 2025.

截至本季末，包括受限現金在內的現金略高於 1.04 億美元，相當於流通在外普通股價值超過 2.80 美元。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 4.36 美元。2025 年 8 月 5 日，董事會宣布每股股利 0.12 美元，增幅 9%，將於 9 月 29 日支付給 2025 年 9 月 22 日登記在冊的股東。

Shareholders may elect to receive cash or additional shares of common stock through the company's newly authorized dividend reinvestment plan. Year-to-date through the end of the quarter, the company had repurchased approximately $550,000 or $6 million worth of common shares. Our share repurchase program remains in place with roughly $69 million remaining authorized. Capital expenditures during the period were roughly $18 million including drilling and completions, as well as new leasehold acquisitions.

股東可以選擇透過公司新授權的股息再投資計畫來獲得現金或額外的普通股。截至本季末，該公司已回購了約 55 萬美元或價值 600 萬美元的普通股。我們的股票回購計畫仍在實施中，剩餘授權金額約為 6,900 萬美元。該期間的資本支出約為 1800 萬美元，包括鑽井和完井以及新的租賃收購。

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 flow from operations. Commodity price realizations for the quarter before considering the impact of hedges were $62.80 per barrel of oil, $1.82 per Mcf of gas, and $16.10 per barrel of NGLs. This compares to first quarter realizations of $69.88 per barrel of oil, $2.69 per Mcf of gas, and $20.07 per barrel of NGLs.

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，以經營現金流為所有資本支出和資本回報提供資金。考慮對沖影響之前，本季商品價格實現情況為每桶石油 62.80 美元、每千立方英尺天然氣 1.82 美元和每桶天然氣液體 16.10 美元。相比之下，第一季石油價格為每桶 69.88 美元，天然氣價格為每千立方英尺 2.69 美元，天然氣液體價格為每桶 20.07 美元。

Our production remains meaningfully hedged through the remainder of the year with a combination of swaps and collars representing approximately 35% of second half production based on the midpoint guidance. This includes approximately 55% of natural gas production and 33% of oil. These hedges will help secure a portion of our cash flows and support our drilling program during the recent down drafts and prices. Despite growing production, our commitment to cost discipline continues to yield results with adjusted G&A for the quarter of approximately $2.4 million or $1.48 per Boe compared to $2.5 million or $1.85 per Boe in the second quarter last year.

根據中點指導，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下半年產量的約 35%。其中包括約55%的天然氣產量和33%的石油產量。這些對沖將有助於確保我們的部分現金流，並在最近的下降趨勢和價格下跌期間支持我們的鑽探計劃。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，本季調整後的一般及行政費用約為 240 萬美元或每桶油當量 1.48 美元，而去年第二季度為 250 萬美元或每桶油當量 1.85 美元。

Net income was $19.6 million during the quarter, or $0.53 per basic share. The adjusted net income was $12.2 million or $0.33 per basic share. This compares to $9 million or $0.24 per basic share and $6.4 million or $0.17 per basic share respectively during the same period last year. Adjusted operating cash flow was roughly $26 million during the quarter. Finally, despite the ramp up of our capital program, the company generated free cash flow before acquisitions of roughly $10 million during the quarter and $23 million year-to-date. Before shifting to our outlook, we should note that our earnings release in 10-Q will provide further details on our financial and operational performance during the quarter.

本季淨收入為 1,960 萬美元，即每股 0.53 美元。調整後的淨收入為 1,220 萬美元，即每股 0.33 美元。相比之下，去年同期的獲利分別為 900 萬美元或每股 0.24 美元和 640 萬美元或每股 0.17 美元。本季調整後的營運現金流約為 2,600 萬美元。最後，儘管我們的資本計畫有所增加，但公司在本季收購前產生的自由現金流約為 1,000 萬美元，年初至今的自由現金流為 2,300 萬美元。在轉向我們的展望之前，我們應該注意到，我們在 10-Q 的收益報告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. During the second quarter, the company successfully completed and brought online the first well of our operated one-rig Cherokee drilling program and drill the second and third wells. We just wrapped up completion on these wells, at least we've turned to production. Dean will touch more on this later. We are very pleased with the results of our initial well, which had an IP of approximately 2,300 Boe per day with 49% oil.

謝謝你，喬納森。我認為在談及公司其他亮點之前，先簡單介紹一下營運情況會很有幫助。第二季度，公司成功完成並投產了我們營運的單鑽機切諾基鑽井計畫的第一口井，並鑽探了第二口和第三口井。我們剛完成了這些油井的完井工作，至少我們已經開始生產了。Dean 稍後會詳細討論這一點。我們對第一口井的開採結果非常滿意，該井的 IP 約為每天 2,300 桶油當量，含油率為 49%。

The other wells in our development program this year directly offset this well and other proven wells in the area which have an average initial production rate of over 1000 barrels of oil or 2000 barrels of equivalent per day. Our new well and the results in the area get further confidence to reservoir quality, result consistency, and expectations in the area. We hope to share further details on this and our operating results next quarter.

我們今年開發計畫中的其他油井直接抵消了該油井和該地區其他已探明油井的產量，這些油井的平均初始產量為每天超過 1000 桶石油或 2000 桶當量。我們的新井和該地區的成果進一步增強了我們對該地區儲層品質、結果一致性和期望的信心。我們希望在下個季度分享有關此事和我們的經營業績的更多細節。

As I mentioned previously, production for the quarter increased approximately 19% and 46% on a Boe in oil bases year-over-year. As we look forward to developing our high return Cherokee assets this year, we anticipate growing oil 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 over 19 Mboe per day, and estimated oil production rates increasing around another 30% relative to Q2.

正如我之前提到的，本季石油產量年增約 19%，油基桶油當量成長 46%。我們期待今年開發高回報的切諾基資產，同時我們預期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，預計日產量將超過 19 Mboe，預計石油產量將比第二季再增加約 30%。

In addition, two completions will carry over into the next year. And when combined with further drilling, could see production volumes and specifically oil volumes increased meaningfully above 2025 exit rate level. We're hopeful that our nearly 24,000 net acres in the Cherokee Play will translate to a meaningful multi-year runway as we look beyond 2025. And we plan to continue to invest in new leasing and other opportunities to bolster our operating position and extend that runway.

此外，還有兩項工程的竣工將延續到明年。如果結合進一步的鑽探，產量，特別是石油產量將顯著高於 2025 年的產量水準。我們希望，在 2025 年以後，我們在切諾基油田的近 24,000 淨英畝土地將轉化為有意義的多年跑道。我們計劃繼續投資新的租賃和其他機會，以鞏固我們的經營地位並延長跑道。

That being said, as a prudent operator, we want to focus on delivering our initial wells before we're marking more on inventory. In addition, we will continue to be mindful of results, commodity prices, costs, macroeconomic, and other factors as we continue to assess our capital decisions this year and beyond.

話雖如此，作為謹慎的運營商，我們希望在增加庫存之前專注於交付我們的初始油井。此外，在評估今年及以後的資本決策時，我們將繼續關注績效、商品價格、成本、宏觀經濟和其他因素。

Shifting over to commodity prices. WTI prices have been around the mid $60 range over the last several weeks, and despite some fluctuations, the forward-looking curve has been relatively stable. Henry Hub on the other hand, has seen some recent headwinds, the spot testing below $3 in the next twelve months in a high 3. At current commodity prices, our operating turkey wells have robust returns and break even for these new wells are down to $35 WTI. Given these returns and durability, we plan to continue our development plan this year with a watchful eye to adjust if needed.

轉向商品價格。過去幾週，WTI 價格一直在 60 美元左右徘徊，儘管有所波動，但前瞻性曲線相對穩定。另一方面，亨利港近期遭遇了一些阻力，現貨價格在未來 12 個月內將測試 3 美元以下的高點。以目前的商品價格，我們營運的火雞井擁有豐厚的回報，這些新井的損益平衡點降至 35 美元 WTI。鑑於這些回報和持久性，我們計劃今年繼續我們的發展計劃，並密切關注以便在必要時進行調整。

Please keep in mind that we do not have significant leasehold expirations this year and have the flexibility to for these projects that needed for a period of time. I'd like to pause here to highlight the optionality we have across our asset base, coupled with the strength of our balance sheet which sets up to not only navigate but leverage changes in commodity prices.

請記住，今年我們沒有重大的租賃到期，並且可以靈活地在一段時間內完成這些項目。我想在這裡停下來強調一下我們整個資產基礎的可選性，再加上我們資產負債表的實力，這不僅可以引導而且可以利用大宗商品價格的變化。

A combination of our oil-weighted Cherokee and gas-weighted legacy assets, as well as robust net cash positions, give us multifaceted options to maneuver and take advantage of different commodity cycles. Our Cherokee development adds value and WTI is constructive, and we can take advantage of our legacy properties through well reactivation, incremental production optimization projects, and possibly even development at the appropriate natural gas and liquid prices, or particularly both when WTI and Henry Hub are both constructed.

我們的石油加權切諾基和天然氣加權遺留資產以及強勁的淨現金頭寸相結合，為我們提供了多方面的選擇，以操縱和利用不同的商品週期。我們的切諾基開發項目增加了價值，WTI 具有建設性，我們可以透過油井恢復、增量生產優化項目，甚至可能以適當的天然氣和液體價格進行開發，或者特別是當 WTI 和亨利中心都建成時，透​​過這兩種方式來利用我們的遺留資產。

Conversely, given the relatively low break-even of our producing properties, no debt and cash balance over $100 million, we're also well positioned to take advantage of the lower commodity environment by acquiring additional producing properties at attractive prices. Put more simply, we have a strong balance sheet and a more versatile kit bag which makes the company more resilient and better poised to maneuver and adjust the matter of the commodity environment. Now, I'll turn things over to Dean to discuss operations in more detail.

相反，鑑於我們的生產資產的損益平衡點相對較低、沒有債務且現金餘額超過 1 億美元，我們也可以充分利用較低的商品環境，以有吸引力的價格收購額外的生產資產。更簡單地說，我們擁有強大的資產負債表和更多功能的工具包，這使得公司更具彈性，並且能夠更好地應對和調整商品環境的問題。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. Two operated wells in our program and two non-operated wells were drilled in the Cherokee Play last quarter. The two operated wells on our first dual well pad were just turned to flowback with indications of strong well performance. We will have production results to report next quarter. Our team successfully planned and executed drilling and completion of the first operated well on budget with minimal operational issues.

謝謝你，格雷森。讓我們開始我們的資本計劃。上個季度，我們專案中的兩口營運井和兩口未營運井在切諾基油田鑽探。我們第一個雙井平台上的兩口作業井剛轉入回流狀態，有跡象顯示井性能強勁。我們將在下個季度報告生產結果。我們的團隊成功地規劃並執行了第一口營運井的鑽井和完井，且預算內操作問題很少。

The first well IP'd in May, around 2,300 barrels of oil equivalent per day and is currently free flowing and exceeding our expectations. We've now completed drilling our fourth well and anticipate to complete and have production for this well in the next quarter. Currently, we are drilling our fifth and sixth wells on a dual well pad. We plan to drill eight operated Cherokee wells with one-rig this year and complete six wells. The remaining two completions are anticipated to carry over to next year.

第一口井於 5 月投產，每日產量約為 2,300 桶油當量，目前產量自由流動，超出了我們的預期。我們現在已經完成了第四口井的鑽探，預計下個季度該井將完工並投產。目前，我們正在雙井平台上鑽第五口和第六口井。我們計劃今年用一台鑽孔機鑽探八口已運作的切諾基井，並完成六口井。其餘兩座工程預計將延續至明年完工。

Currently, all of our planned wells are proved undeveloped or PUD, meaning that our planned drilling locations this year will offset producing wells, which translates to higher relative confidence and well performance. Gross wealth costs vary by depth but are estimated to be between approximately $9 million to $12 million. While we have taken proactive steps to help mitigate the effects of inflation, further changes to tariffs or other factors could influence these costs in the future. 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.

目前，我們計劃的所有油井都已被證實未開發或尚未開發，這意味著我們今年計劃的鑽井位置將抵消生產油井，這意味著相對信心和油井性能更高。總財富成本因深度而異，但估計約為 900 萬美元至 1200 萬美元之間。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。從時間角度來看，今年資本計畫的大部分產出將在下半年出現，其效益將延續到明年。

We intend to spend between $66.85 million in our 2025 capital program, which is made up of $47 million to $63 million in drilling and completions activity and between $19.22 million dollars in capital workovers, production optimization, and selective leasing in the Cherokee Play. Our high graded leasing is focused to further bolster our interests, 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.

我們計劃在 2025 年資本計畫中投入 6,685 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 1,922 萬美元用於切諾基油田的資本修井、生產優化和選擇性租賃。我們的高等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 if headwinds present pressures on rates of return. Our legacy assets remain approximately 99% held by production, which cost effectively maintains our development option over a reasonable tenure. These non-Cherokee assets have higher relative gas content, but commodity price futures are not yet at preferred levels to resume further development or more well reactivations at this time. Commodity prices firmly over $80 WTI and $4 Henry Hub over a confident tenor and/or reduction well costs are needed before we would return to exercise the option value of further development or well reactivation.

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，如果逆風對回報率造成壓力，我們可能會緩和或縮減我們的資本計劃。我們的遺留資產仍有約 99% 由生產部門持有，這在合理的期限內以經濟有效的方式維持了我們的開發選擇。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的有利水準。在我們重新行使進一步開發或恢復油井的選擇權價值之前，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. LOE and expense workovers for the quarter were approximately $6.6 million or $4.05 per Boe, which compared favorably to $6.41 per Boe in the second quarter last year. However, we do not anticipate second quarter LOE rate to continue at the same level for the remainder of the year. The decrease in LOE was primarily due to a one-time non-cash adjustment of an operating accrual, as well as lower power and workover costs.

現在轉向租賃營運費用。本季的 LOE 和費用修井約為 660 萬美元或每桶油當量 4.05 美元，與去年第二季度的每桶油當量 6.41 美元相比有所提高。然而，我們預計第二季的 LOE 率在今年剩餘時間內不會繼續保持在同一水平。LOE 的下降主要是由於一次性非現金營運應計費用調整以及電力和修井成本的降低。

We will continue to actively press on operating costs through rigorous bidding processes, leveraging our significant infrastructure, operation center and other company advantages. With that, I will turn things back over to Grayson.

我們將繼續透過嚴格的招標流程，利用我們強大的基礎設施、營運中心和其他公司優勢，積極降低營運成本。就這樣，我將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 mid-continent region with the PDP well set that provides meaningful cash flow, which does not require any routine flaring of produced gaps. These well understood assets are almost fully held by production with a long history shallowing and diversified production profile in 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，PDP 設置良好，可提供有意義的現金流，不需要任何常規的生產缺口填補。這些眾所周知的資產幾乎完全由生產所持有，具有長期的淺化歷史和多樣化的生產概況，儲量壽命達到兩位數。

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

我們現有的資產包括我們擁有和經營的超過 1,000 英里的 SWD 電力基礎設施。這種大規模自有和整合的基礎設施有助於將我們大多數傳統生產井的單井獲利風險降低至約 40 美元 WTI 和 2 美元 Henry Hubs。

Our assets continue to yield free cash flow, and we have negative net leverage. This cash generation potential provides several paths to increase shareholder value realization and is benefited by low G&A burden. SandRidge's value proposition is materially derisk from a financial perspective, our strengthened balance sheet, financial flexibility, and advantage 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。這種現金創造潛力提供了多種途徑來增加股東價值實現，並受益於較低的一般及行政管理負擔。SandRidge 的價值主張是從財務角度實質上降低風險、增強資產負債表、提高財務靈活性並保持有利的稅務地位。

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 opportunities and incremental oil diversification with low break evens in high-graded areas. We maintain financial flexibility that allows us to adjust our strategy to take advantage of commodity cycles. This flexibility provides advantages and strategic optionality to further grow our business and provides a buffer to commodity headwinds while protecting our capital return programs.

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機會和增量石油多樣化，並在高品位地區實現低損益平衡。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。這種靈活性為我們的業務進一步發展提供了優勢和策略選擇性，並為商品逆風提供了緩衝，同時保護了我們的資本回報計劃。

Finally, it's worth highlighting that we take our ESG commitment seriously and have implemented discipline 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 growth projects. 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.

最後，值得強調的是，我們認真對待我們的 ESG 承諾，並圍繞其實施了紀律流程。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成長項目。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。

The strategy has five 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.

該戰略有五點。第一，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概況，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 investment projects and opportunities that have high risk adjusted and fully burdened rate of return, while being mindful and prudently targeting reasonable reinvestment rates that sustain our cash flows and prioritize a regular rate dividend.

二、實行資本管理，投資具有高風險調整和全額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 creative merger and acquisition opportunities that could bring synergies, leverage the company's core competencies, complement its portfolio of assets, so it utilizes approximately $1.6 billion of federal net operating losses, or otherwise yield attractive returns for its shareholders.

第三，保持選擇性，執行具有價值創造性的併購機會，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，從而利用約 16 億美元的聯邦淨運營虧損，或為其股東帶來可觀的回報。

Four, as we generate cash, we'll continue to work with our Board to assess as to maximize shareholder value to include investment and strategic opportunities, advancement of our return of capital program and other uses. Our regular way quarterly dividend is an important aspect of our capital return program which we plan to prioritize in capital allocation along with opportunistic share repurchases. The final staple is to uphold our ESG responsibilities.

第四，當我們產生現金時，我們將繼續與董事會合作，評估如何最大化股東價值，包括投資和策略機會、推進我們的資本回報計劃和其他用途。我們的定期季度股利是我們資本回報計劃的一個重要方面，我們計劃在資本配置中優先考慮該計劃以及機會性股票回購。最後一點是履行我們的 ESG 責任。

As we look forward to the year and beyond, we plan to further progress our Cherokee development while monitoring commodity prices, results, and other factors in order to realize high rates of return, grow our production levels while providing further oil diversification. With continued success in support of commodity prices, we're hopeful to expand to a multi-year development plan.

展望今年及以後，我們計劃進一步推進切諾基的開發，同時監測商品價格、結果和其他因素，以實現高回報率，提高生產水平，同時進一步實現石油多樣化。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。

Please keep in mind that our return of capital program will continue to be our top priority and given our financial flexibility, we'll exercise capital stewardship to respond to changes in commodity prices, costs, macroeconomic, or other factors. Shifting to administrative expenses, I will turn things over to Brandon.

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，我們將行使資本管理權，以應對商品價格、成本、宏觀經濟或其他因素的變化。談到行政費用，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 second quarter adjusted G&A of $2.4 million or $1.48 per Boe continues to compare favorably to our peers. The ongoing efficiency of our organizations stems from our core values to remain cost discipline 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，我們第二季度調整後的 G&A 為 240 萬美元或每桶油當量 1.48 美元，與同行相比仍然具有優勢。我們組織的持續效率源自於我們的核心價值觀，即維持成本紀律和先前的舉措，這些舉措使我們的組織適應目標。

We will maintain our cost conscious and efficiency focused mindset and continued imbalance the weighting of field versus corporate personnel to reflect where we create value. We have outsourced necessary but more perfunctory and less core functions such as operations accounting, land administration, IT, tax, and HR. Our efficient structure has allowed us to operate with total personnel of just over 100 people, while retaining key technical skill sets that have both the expertise and institutional knowledge of our business.

我們將保持注重成本和效率的思維模式，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。我們將必要但較為敷衍、核心功能較少的職能（如營運會計、土地管理、IT、稅務和人力資源）外包出去。我們高效的結構使我們能夠以總共 100 多名員工的規模開展運營，同時保留了我們業務的專業知識和機構知識的關鍵技術技能。

In summary, the company had free cash flow of approximately $10 million in the quarter, over $100 million in cash and cash equivalents and quarter end, which represents more than $2.80 per share of our common stock outstanding.

綜上所述，公司本季的自由現金流約為 1,000 萬美元，季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 2.80 美元。

An inventory of high rate of return, low break-even projects, 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. We have low overhead, top tier adjusted G&A, no debt, negative leverage, flattening base production profile, double digit reserve life, and approximately $1.6 billion of federal NOLs. This concludes our prepared remarks. Thank you for your time today. We will now open the call to questions.

高回報率、低盈虧平衡項目庫存，以及約 95% 由生產持有的總體中期構成，以經濟高效的方式保留了我們遺留土地未來發展潛力的期權價值。我們的管理費用很低，調整後的一般及行政費用最高，沒有債務，負槓桿，基礎生產狀況趨於平穩，儲量壽命達到兩位數，聯邦淨經營虧損約為 16 億美元。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。

Thank you. We will now begin the question-and-answer session. (Operator Instructions) And we have no questions. This concludes today's conference call. Thank you for your participation. You may now disconnect.

謝謝。我們現在開始問答環節。（操作員指示）我們沒有問題。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。