Amplify Energy (AMPY) 4 Aug 182018 Q2 Earnings call transcript

Company Profile

Participants

Jason McGlynn	Investor Relations
David Sambrooks	CEO, President & Director

Call transcript

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Operator

Good morning, and welcome to the Midstates Petroleum Second Quarter Earnings Conference Call. My name is Leeway, and I will be facilitating the audio portion of today's interactive broadcast. [Operator Instructions]At this time, I would like to turn the conference over to Mr. Jason McGlynn.

You may begin your conference.

Jason McGlynn

Leeway. you, Thank and earnings everyone, Midstates second Petroleum's Good call. welcome XXXX conference quarter morning, to

Joining your call call, will finally, on and details Chief and with me on the comments, overview make financial Executive questions. President Sambrooks, an will and then we Officer. some and highlights. our our I closing In provide our operations David today's of David will begin today will take operational is additional David And financials.

me read call those let results safe harbor and Before which conference started, we materially to projected actual our statement. This forward-looking statements. uncertainties, contains assumptions, from get these may differ and statements forward-looking in risks are subject and

SEC for discussion risks. to in that non-GAAP most please yesterday's earnings and these Midstates' any in a note XX-Q GAAP Also, the to table refer defined measures directly call be are Form comparable this the measure discussed filed reconciled on financial will of Please with that on release. Monday the

I'll turn call his for David to comments. Now over the

David Sambrooks

and for Thanks, you joining today, for us everyone. second performed you during Thank thank quarter. morning, Midstates. the interest and well in your good We Jason,

XX,XXX was Miss BOE XX,XXX production day, per per our Our coming day from Lime with approximately assets. BOE

$XX items and XX% expectations. budget of Our program expense highly approximately line successful Also, adjusted due that briefly. capital Miss enhanced EBITDA, in our capital I'll Lime quarter million increased first with from generated we workover production and the to a were review our more

very We while million, properties of with end sale margins. our our exploit later. proceeds I'm strategy retaining our May, down approximately to We with the and $XX to our our efficiencies investment further reduce the RBL are enhancing net we $XX And RBL enhance returns, of by organization. costs market-focused producing our improving of competitive at million, our our and costs STACK $XXX to-date total paydowns Basin on million. another cutting throughout year pleased efforts by Anadarko the position measurably executing this bringing paid Northwest to closed

the with and start a program, out our to design color news drilling our optimization and operational our performance during production Moving program. in quarter, optimization on then completion provide bit base I'll of exciting

of during well early first This this over year, X,XXX its in XXXX. wells to our workover restimulations. components: and production have end day. performed base X At focus year opportunities of boost ran evaluated And a we the last main the second, to the and program. quarter, our At initiated a increase program fully second The cleanouts we consisted productivity and these to production. large efforts workover a led through we and peak, thus rig workovers in quarter, program XX-workover program we wellbore XXX a downhole well pump of far run first, life; extending from approximately in BOE on per enhance workover

thus, the front the -- the lowered On less on wells year, average during offline will life double downhole extending going our mean Success workover our pumps. target run to average life is this the yearly expenses. effort, of run

production lead yearly Secondarily, downtime, failures production. to will reduced less downhole increasing average

program early than Since -- more, lower or to on to life year implementation. early over quantify the of a too effort. our this failure rate out results downhole run play it's a But results we're extending prior time, the experiencing

achieved On productivity, we impressive increasing success. well have

highly program has mainly shown increase and short been immediate have for restimulations production are In very total, X,XXX-BOE-per-day this with responsible enhanced results, and payout cleanouts workover workover have wellbore economic, periods. achieved. Our we the

a So use great of capital.

the the X down year the field, down expenses half rig now currently second in come is time. in The workover completed enhanced to workover result. and see this running program we'll of largely we're so capital as And a only

you with our sought update frac EURs quarter, to to our program. on IPs increase designs as wells, about, talked and and like we of the high-intensity drill well complete we I'd In that prior first Next, increase costs. also

success strategy finding a costs extent with to cost drilling time, early the to Since we've completion, on and lower in economics have success returns and the focused not more second moved the needed improving curves. in completion impacts seeing returns. economic well curves, individual optimize costs. incremental to but make We're to We are to type minimal some now quarter, reducing the that type well improving of

wells with And these drilling this step was X in strategy, fracs. very and second in big the focused them successful. the quarter, the laterals completing were Operationally, of X-mile

wells, target have and as to able extra the drilled are the and we lateral wells efficiently. X-mile We we quickly on our lane

costs. averaged X X-milers mile spud to Spud XX days have and X-mile these X-mile our to release on rig costs pipe time the compared rig days per from reduced of Also, to XX or facility savings XX laterals release X-mile compared days. laterals cost average

million focused X of per significantly drilling cost than X-mile complete or $X.X averaged $X.X per XXXX resulting is first X-milers million the of This total $X.X our lateral. the completions, with cost average X-mile our approximately Coupled less approximately million. mile cost laterals

to the rates of single X-mile XXX single that X.Xx offset offset X-mile average initial BOE of XX% achieved per oil, is being well, which with also -- of a day We per wells. X.Xx the

us Xx a a X-mile in And approximately approximately from of early achieve a uplift play this Lime the EUR. but rate bearing results to we get initial lateral, Mississippian expect X X-mile also wells gave our X.Xx are that we could enhancement results lateral in confidence Our greater study over out.

the economic results. and our quarter, we well the in X second lower significantly X-mile in success this With with are per moving ahead additional third X-mile improvements laterals believe costs We combination meaningful well attractive the over quarter. is

and In summary, budget we are and reductions G&A CapEx. in cost guidance, in on achieving substantial LOE,

a success the increase production going our quarter-over-quarter, saw of workover are expenses we second the in reduced quarter, downtime enhanced forecasting With and and program significant forward.

completion economic exciting laterals showing costs. uplift some is execution through program and complete the reduced and of X-mile drilling successful drill Our and

Midstates footing move forward. firm points we as of puts on All these

goals our further reducing excellent and while improving accomplishing investment already balance We're expenses our returns, of improving sheet.

process. and this on SandRidge, process, further remain are And to continue that comment their of time. in we participating in at cannot we this part we interested as Finally,

I'll that, it back to turn Jason. over With

Jason McGlynn

you, highlights, company's provide with on update Thank a on finish and follow of I'll the for discussion an then begin guidance. our operational capital and up and second investments David. and discussion I'll balance with costs XXXX earnings up with a the quarter. sheet our

we the mentioned, an to Lime first daily XX,XXX per increase Mississippian properties day XXXX, the second day BOE We achieved XX,XXX XX,XXX of in quarter. XX% day during BOE our on BOE in of production As day, per quarter of David XXXX. from production per grew XX,XXX quarter per the average from up our first BOE

our quarters. assets XX% was during from mix the NGLs The natural gas, XX% with Lime the quarter production XX% line second and previous roughly Mississippian oil, in

we production per the first $XX the derivatives the million optimization of the was or in related quarter as adjusted $XX.X part its which $X.XX million loss base This contracts. slightly We to impact EBITDA the of million in an noncash included due from earnings, a net of activity first second primarily company's charge $X.X the For share second quarter, commodity million generated increased to had of program. workover company's do $X.X quarter. quarter, from decrease down in

Turning to expenses.

the totaled restructuring to which employee increased adjusted taxes million costs, LOE, and and or advisory was $XX.XX production primarily $XX.XX of exclude include G&A, in Second but costs quarter-over-quarter and The from quarter quarter. BOE due up severance expenses, BOE, or during cash $XX.X the the company's first $XX.X workover operating activity cash quarter million per second per increased XXXX.

workover and Again, million $XX.X this prior totaled our up $X.XX to the workover due increased expenses operating for or $X.XX or BOE in per quarter combined per quarter-over-quarter -- was quarter. $XX activity. increased million lease Our from second BOE, the $XX primarily million

to the Specifically, in our BOE. of $X.XX the per quarter, was per cost expense first of $X.XX workover average XXXX compared quarter second BOE

Severance than of were per $X.X primarily divestiture million properties, the million BOE higher This $X.XX a XX down quarter has Anadarko-producing assets. to $X.XX rate our XXXX. Miss effective sorry, of the per to first compared or due and tax or in X-point BOE Lime other our to -- slightly $X.X is taxes -- quarter which this

million quarter per in G&A, any or $X.XX of XXXX. compared items, BOE excludes primarily the $X.X to was or compensation in to and first to second adjusted capitalization quarter nonrecurring the oil of certain $X.XX million The lower quarter employee totaled gas and due respect measure With noncash before cash a is per of G&A to XXXX. BOE and the cash properties, which decrease quarter-over-quarter expenses $X second

X extended $XX.X laterals, including X of nearly Operational with wells. Lime from the we've brought spud for coming million, quarter extended where the including our was these online, wells the CapEx and Mississippian X development wells, approximately assets, X lateral all

$X.X average lower million million quarter new X-mile on of in and, well per laterals. costs $X.X the XXXX approximately approximately per lateral second X-mile David as trended Our mile the mentioned earlier, to

On million. $XX.X sheet. approximately quarter the to we cash second approximately million the the had end of of $X.X balance XXXX, net of and debt At in

quarter million of in RBL $XXX the million, $X.X at million facility. the cash end of of Liquidity $XXX.X approximately was and availability consisting our on

by with million As Anadarko-producing RBL sales. June reduce the in $XXX down annualized after down million we approximately million $XX our paydown year. hand, interest a and made the should paid to the earlier, cash property $X David paid we expense subsequent closing March our a This of $XX million mentioned in to RBL per on

redetermination the $XXX XXXX. Mississippian borrowing quarter, The base solely about was during its at October borrowing revolving next of under credit the X, million, Lime Additionally, on assets. facilities consisting reaffirmed company's or the scheduled occur will base

finish I'll up Finally, guidance. XXXX updated with our

We operational $XXX to and BOE day. XX,XXX $XXX production per per million, XX,XXX CapEx BOE million to between day have guidance and tightened expect between our to

XX% we $X.XX Hub WTI expect per expect to $X.XX gas Mcf NGLs. approximately differentials, Henry per for oil, barrel For NYMEX per realize pricing realize of off off approximately barrel per and for to WTI we

last expenses guidance we have also lease quarter, workover and to expenses our updated workover operating out separately, the activity break breakdown our giving during increase in quarter. This

between providing $X ranges: per and other BOE; per expense BOE; between lease expense adjusted and operating and per-BOE On $X.XX severance are and items, between $X.XX cash $X.XX and BOE. the $X.XX the G&A and following taxes $X.XX BOE; per per $X.XX between we to workover $X

back a for I'll of David to take turn then questions. we'll your comments, the that, call and over couple With closing

David Sambrooks

exciting look an are interest we questions. thank your quarter was forward performing and seeing It for you out. And today. everybody's to think strategy, success playing materially for We on that Midstates. our taking Well, we

Jason McGlynn

a and a and discussion discussion XXXX Thank up with then on capital guidance. investments David. earnings the I'll quarter. with finish and with and our provide for company's second begin on operational sheet highlights, an balance you, update of I'll the up our costs follow

from the XX,XXX we day daily per the during increase As BOE Lime XX,XXX David second production BOE our our of per day average day, up in mentioned, BOE grew per per first We an achieved on day XX,XXX of in XX,XXX XXXX. XXXX, quarter. BOE of XX% the to quarter quarter first Mississippian from properties production

from in line oil, roughly The and the Mississippian during second production with the mix Lime assets XX% XX% quarter NGLs was quarters. gas, XX% natural our previous

net slightly from charge primarily million workover part the base increased quarter commodity to related to of earnings, million $X.XX due share For the the an its was production down company's quarter, of generated of This which as quarter, first per $X.X We second from in included or the $XX $X.X the a decrease in $XX.X company's we contracts. quarter. had noncash do activity impact optimization second the derivatives million of adjusted program. first loss EBITDA in million

Turning to expenses.

cash up or activity which $XX.X quarter-over-quarter primarily totaled BOE, costs, of but expenses, increased the from production exclude due second workover quarter. the include costs company's the and cash and XXXX. $XX.XX taxes increased employee The first million G&A, was $XX.XX and operating LOE, quarter per million to advisory per in Second BOE or $XX.X severance adjusted during restructuring quarter

activity. Again, BOE lease for and combined the up or primarily $XX the quarter. expenses quarter-over-quarter million $XX BOE, $X.XX second $X.XX workover totaled due increased prior to this workover operating in Our -- increased per from million our was per million or quarter $XX.X

second workover of of quarter cost the per to in Specifically, average expense first BOE compared quarter, was our the per BOE. $X.XX $X.XX XXXX

rate per Severance is XXXX. this per of down due Miss and has $X.X Lime slightly quarter higher $X.XX million first or X-point tax This compared divestiture $X.XX -- our quarter BOE or other which in to taxes the XX a to our BOE -- primarily to properties, sorry, were of assets. the Anadarko-producing million effective $X.X than

million per quarter-over-quarter items, $X.XX lower adjusted certain per With G&A, totaled nonrecurring quarter capitalization before second and cash primarily to respect due first BOE of the to the a million cash and compensation is quarter which to expenses and XXXX. employee of compared BOE oil excludes XXXX. noncash was or gas quarter decrease in any $X.X in to measure $X second properties, the of or The $X.XX G&A

was including and the Operational of brought Lime where CapEx million, extended for development the wells, online, these the coming from with approximately our assets, all X quarter nearly we've X wells. wells Mississippian X $XX.X lateral extended including laterals, spud X

the $X.X as per costs David lower million X-mile second approximately well mile quarter million per lateral XXXX to in the new trended and, approximately average mentioned Our laterals. X-mile earlier, $X.X on of

the of balance we quarter in million. approximately $XX.X had net the million to the cash XXXX, On sheet. approximately second of end debt of At and $X.X

facility. our consisting Liquidity of in of $XXX.X at cash was $X.X approximately RBL the on and million end the million million, $XXX availability of quarter

hand, to the June after in our This million a reduce Anadarko-producing annualized $XX subsequent of we $X million sales. the property interest March on million closing As paid we paid RBL paydown the cash year. made RBL David per mentioned approximately expense with down million $XX to in by down and should a $XXX earlier, our

during revolving facilities XXXX. redetermination its $XXX credit or about scheduled under Additionally, Lime assets. company's The of million, the borrowing Mississippian X, next October at solely base reaffirmed base on consisting the quarter, borrowing occur will the was

XXXX Finally, updated I'll finish with guidance. up our

our XX,XXX and tightened BOE to per million CapEx to We day. to operational per have production and between expect day $XXX guidance $XXX XX,XXX million, BOE between

Henry barrel gas for $X.XX we and for to realize WTI For approximately XX% off approximately to expect Mcf per per realize off pricing per differentials, oil, Hub we NYMEX of per barrel WTI expect NGLs. $X.XX

giving workover have activity increase operating our quarter. to we quarter, the separately, out our updated expenses during also break This guidance breakdown workover lease last in and expenses

BOE; BOE; per and $X the operating BOE. the $X.XX between are and $X.XX adjusted and we $X.XX expense cash and and to workover G&A between On between per other per lease following $X.XX and per-BOE expense per severance taxes ranges: $X providing items, between BOE; $X.XX $X.XX

With that, we'll comments, and for to of David take I'll over closing turn the back call couple a your questions. then

David Sambrooks

for look materially Well, think success today. strategy, your and that exciting to everybody's out. It on We taking Midstates. quarter thank our performing we was questions. you we for interest seeing forward an are playing And

Jason McGlynn

second earnings on on our and you, David. our and the up I'll of then costs with for with quarter. an Thank discussion I'll up operational begin follow and company's balance provide investments with finish a highlights, discussion XXXX sheet update the and a capital guidance.

per average mentioned, first day XX% our As up during XX,XXX XXXX, XX,XXX quarter day, first quarter properties in on BOE per production David an of BOE per we day per the Lime XX,XXX achieved We XXXX. BOE daily our production of the the to in from BOE Mississippian from grew day XX,XXX of increase second quarter.

XX% mix roughly assets natural during NGLs production quarters. our quarter oil, second gas, The from with and XX% Mississippian Lime in was the previous the line XX%

the quarter. primarily decrease $XX base in part from the from quarter, down million per share to derivatives to million net an $X.X of had company's $X.XX generated $XX.X related contracts. in second of million or impact first EBITDA do due earnings, noncash the program. in increased adjusted the quarter, $X.X slightly which included was For first its company's the quarter This commodity workover the charge a of we We optimization loss second production of as activity million

Turning to expenses.

per but during or Second increased per LOE, costs which up was quarter. the to restructuring the million the XXXX. employee increased due quarter quarter costs, company's second million include adjusted The BOE in primarily advisory and $XX.XX $XX.XX cash cash or totaled production workover first from activity BOE, exclude and operating quarter-over-quarter G&A, taxes expenses, $XX.X $XX.X severance of and

Our totaled the the $X.XX Again, per or increased workover quarter to in primarily for BOE, expenses $X.XX up was million or million $XX.X second lease and operating $XX $XX -- prior activity. combined from increased our quarter-over-quarter this million quarter. due workover BOE per

$X.XX the per per expense to average XXXX cost $X.XX second first workover compared of BOE. quarter Specifically, our quarter, in was of the BOE

$X.X taxes which Lime quarter $X.XX divestiture per rate to is Severance in This $X.XX compared Anadarko-producing or or XX due our properties, first quarter million sorry, to our primarily per X-point Miss tax a effective assets. slightly has the this of -- XXXX. million BOE to the were than higher and other -- BOE down $X.X of

a $X.XX due per in cash employee quarter of XXXX. $X expenses With and to which quarter quarter million to of nonrecurring respect was to compensation or $X.X properties, the capitalization the quarter-over-quarter in and first compared or million gas cash is adjusted of second measure $X.XX G&A, lower primarily The the BOE before XXXX. G&A to BOE totaled any oil excludes and noncash decrease certain second items, per

$XX.X laterals, Operational extended wells, X CapEx X coming with lateral X online, was including Mississippian and approximately for we've wells. assets, the development from of these million, brought the where including X our spud quarter nearly Lime all extended wells the

in second earlier, as trended per million the new average approximately on the lateral XXXX laterals. $X.X Our quarter X-mile lower mentioned to million approximately $X.X well David and, X-mile per mile of costs

balance XXXX, On $XX.X approximately second end we approximately had At net in quarter the of the of to of $X.X cash million. sheet. and debt million the

of of our was end availability the the RBL cash million, facility. approximately $XXX million in on at Liquidity $XXX.X consisting $X.X quarter and million of

March million paid earlier, to down made of by expense This per mentioned interest closing approximately Anadarko-producing the million after year. June million subsequent paid $XXX $X David $XX annualized As RBL on in in a we with our our the paydown hand, should and sales. down a we million the to property cash RBL reduce $XX

Mississippian $XXX redetermination million, will at or scheduled XXXX. quarter, credit during assets. consisting was on under solely borrowing company's X, the October occur base the revolving base next about the of The reaffirmed Lime facilities Additionally, borrowing its

XXXX up our with guidance. updated Finally, I'll finish

to $XXX CapEx expect to to production operational guidance day per XX,XXX our BOE XX,XXX between tightened $XXX have million between million, We BOE per and day. and

barrel expect approximately For per WTI to to pricing gas per realize Hub approximately per $X.XX barrel for per oil, $X.XX XX% Henry WTI we off NGLs. differentials, NYMEX for of and we off realize Mcf expect

updated have last workover our increase workover also during our lease we and guidance giving quarter, This break to breakdown in quarter. expenses activity the separately, out operating expenses

$X.XX BOE; we and BOE. items, per $X.XX per and $X between between and expense following ranges: G&A BOE; the and per-BOE to $X.XX between between other lease per the and $X.XX On $X providing BOE; cash workover taxes expense severance per operating $X.XX $X.XX and adjusted are

turn call David comments, over the closing I'll couple that, to With a and back for of

then we'll questions. your take

David Sambrooks

for you exciting thank strategy, Well, think success We for we and performing seeing playing on everybody's your today. look quarter forward was an that interest out. And we It taking questions. our to are Midstates. materially

Jason McGlynn

I'll of the costs up our the with second XXXX and up and you, begin follow with investments guidance. then earnings Thank sheet discussion balance our quarter. finish on and a with I'll an discussion a highlights, operational update for provide David. on and capital company's

XX,XXX As BOE XX,XXX of grew our Mississippian from up the XXXX. quarter per daily XX,XXX increase David our mentioned, second day Lime We XXXX, achieved in we on average XX,XXX in first per day, production per from production BOE per quarter XX% first quarter. day the BOE during day of of the an properties to BOE

assets Lime oil, previous quarters. was The our XX% the production mix second and Mississippian quarter gas, XX% with roughly XX% the line natural in NGLs from during

noncash quarter. production do from per or company's quarter, of $XX to from primarily We in workover due $XX.X million included as net of down optimization second a the program. second commodity the was EBITDA $X.X to activity million decrease of share had the its the quarter contracts. million slightly charge we adjusted of first the impact earnings, quarter, part base the increased $X.XX which generated This first related million company's $X.X derivatives For loss in an in

to expenses. Turning

during quarter BOE include increased the exclude BOE, and or workover to Second $XX.XX quarter-over-quarter the which $XX.X but in due cash costs was or per and first adjusted severance $XX.X per up million LOE, totaled expenses, The costs, taxes second $XX.XX activity production and advisory company's the G&A, increased quarter. operating of primarily cash from XXXX. restructuring employee quarter million

second this increased quarter-over-quarter the $X.XX $XX.X Our lease the from operating primarily million totaled million $XX $XX quarter. Again, due per $X.XX or BOE, prior to per workover increased quarter workover was our and combined expenses for activity. or BOE up million -- in

of our expense quarter, to per Specifically, cost in the first $X.XX BOE per of second XXXX BOE. workover was $X.XX average the quarter compared

down taxes has This in million XXXX. XX to slightly $X.X and rate this -- first to primarily properties, higher -- were Severance quarter of BOE BOE of Lime a tax due quarter or Anadarko-producing our compared X-point or divestiture million assets. than effective the sorry, Miss $X.XX to $X.X per our is other per which $X.XX the

BOE a certain adjusted excludes per was $X.X $X.XX to the measure totaled to nonrecurring compensation second respect XXXX. million any of before G&A due expenses capitalization in items, which and primarily decrease quarter-over-quarter the cash The and to gas is the first With of $X.XX or BOE or $X G&A, million of per quarter compared cash quarter employee in oil second quarter and XXXX. lower properties, noncash to

Operational all lateral brought $XX.X quarter from these laterals, with assets, we've development the the CapEx X Lime including was extended for our X X where wells. nearly million, X wells including coming and spud the wells, online, extended Mississippian of approximately

XXXX the lower approximately X-mile million per X-mile per trended mentioned in well new laterals. approximately Our David on mile the quarter earlier, lateral $X.X average to of $X.X second costs million as and,

of On quarter in $XX.X debt we to second of At and XXXX, million. sheet. the end approximately of cash the million net $X.X the balance approximately had

the Liquidity $XXX was and facility. in approximately availability million consisting at of $X.X quarter of our of million on end the million, $XXX.X cash RBL

down million paid our expense June down should RBL we $X mentioned to Anadarko-producing to of million a interest made we our annualized RBL $XXX approximately This the million paydown cash in on David the sales. property March closing subsequent in $XX year. $XX and by earlier, with hand, reduce a the after per As million paid

assets. Mississippian its or revolving borrowing redetermination The occur base solely at Additionally, during X, about will credit the under facilities the base XXXX. consisting Lime on October quarter, next reaffirmed borrowing of $XXX company's million, the scheduled was

XXXX updated Finally, up our finish with I'll guidance.

our tightened BOE CapEx between production have We to $XXX day XX,XXX XX,XXX day. expect to per and million, million guidance between operational per to $XXX and BOE

For expect we NGLs. Hub barrel Henry to to approximately barrel $X.XX WTI XX% per NYMEX per realize Mcf realize WTI $X.XX for for differentials, and approximately gas off pricing per off expect per oil, we of

have This workover breakdown guidance increase updated operating out giving last our expenses our the also and to break quarter, we workover lease activity during in expenses quarter. separately,

and expense the providing workover G&A expense $X.XX items, per per On per-BOE between per between $X.XX $X adjusted operating BOE; are cash ranges: $X.XX $X.XX we lease severance following and BOE; and BOE; between the between $X.XX to $X and $X.XX taxes per and other BOE. and

With and for comments, we'll turn of to questions. your I'll a couple call back over take closing that, David then the

David Sambrooks

thank and Midstates. we for And It forward seeing on are your that for think Well, out. strategy, an quarter We performing questions. today. taking everybody's was interest success playing exciting materially our you look we to

Jason McGlynn

and and highlights, a you, up provide operational and with quarter. and company's I'll the earnings an our with then of the guidance. our for discussion on with up investments XXXX a finish begin Thank follow on costs sheet discussion I'll balance update capital David. second

the achieved second to XX% Mississippian on David from quarter production of from in day first of quarter. day XX,XXX per day per our BOE We during properties BOE average Lime As of XXXX. mentioned, we increase production XXXX, quarter our an first grew in XX,XXX day, the BOE up the BOE daily per XX,XXX per XX,XXX

second with and oil, production during previous roughly quarters. XX% Mississippian NGLs was mix the Lime XX% assets natural the XX% our quarter in The line from gas,

net second workover noncash the generated as primarily to the decrease share For commodity in of had of company's from production related earnings, impact first derivatives quarter, quarter, million in of $X.X due of loss to company's $X.X we EBITDA its quarter the million million slightly We program. down or the which This part base per contracts. quarter. activity in $X.XX a the do million charge optimization included the increased $XX adjusted first $XX.X from second an was

expenses. to Turning

$XX.X LOE, activity XXXX. $XX.XX second which increased of taxes expenses, up and costs, due quarter in quarter to restructuring production Second per G&A, BOE The the cash first per include and cash adjusted $XX.XX million increased primarily $XX.X and or the BOE, employee totaled advisory company's exclude operating from or quarter. workover severance but was quarter-over-quarter the during costs million

Our lease operating second million the increased totaled combined BOE, from quarter-over-quarter was $XX due BOE and in workover million $X.XX per this $XX.X prior the -- per quarter quarter. workover or up $XX $X.XX to expenses increased Again, for primarily or activity. million our

the in workover cost XXXX average was $X.XX second first quarter, BOE. of the to per BOE our per compared Specifically, of quarter expense $X.XX

our slightly X-point due quarter Miss taxes quarter of this BOE and to per Severance down XXXX. $X.X rate primarily a higher Lime $X.XX $X.X million sorry, to or were other -- tax This XX in is first assets. per million or to the -- effective $X.XX of than BOE Anadarko-producing has compared the divestiture our properties, which

million cash cash to totaled respect excludes gas the and of due any noncash primarily of quarter items, adjusted which $X.X quarter-over-quarter XXXX. the to and to expenses quarter employee oil quarter measure first the second second compared or compensation capitalization BOE G&A a G&A, and in certain With to nonrecurring was The BOE is million per lower of before $X.XX properties, in $X.XX XXXX. decrease or per $X

Operational CapEx X Lime wells including lateral assets, wells, nearly our approximately the for and brought online, million, all the quarter from the development coming extended was $XX.X X X these extended X we've spud wells. of including where laterals, with Mississippian

quarter the laterals. million million earlier, X-mile and, approximately lateral approximately lower trended of average per as second $X.X to in new the $X.X well per Our XXXX David X-mile mentioned costs mile on

approximately and the quarter At cash end approximately sheet. the XXXX, the net $X.X million of in we second of million. to On $XX.X balance debt had of

the $X.X availability Liquidity our was approximately million consisting of $XXX.X quarter and at in of cash million, $XXX the end million facility. RBL on of

annualized made with year. RBL $XX property we a down expense interest the March on cash to closing million sales. $XXX per the our million and earlier, million This paid hand, after paydown mentioned our in a $XX subsequent down should RBL Anadarko-producing million we As of approximately $X the David to reduce by paid in June

Additionally, at on of next quarter, redetermination its under base will about $XXX the was borrowing facilities or October credit borrowing reaffirmed base Lime assets. scheduled occur solely during million, revolving company's The consisting Mississippian the X, XXXX. the

I'll Finally, updated up XXXX finish with guidance. our

We XX,XXX CapEx operational BOE to $XXX million, BOE and expect between our $XXX production to XX,XXX have between day. tightened per per day to guidance million and

NYMEX $X.XX For off for $X.XX off approximately NGLs. we pricing and WTI oil, we XX% per barrel realize to Mcf Henry per of per differentials, WTI approximately gas realize expect for to expect Hub barrel per

our expenses have breakdown we and last break out during lease workover increase This quarter. to expenses workover activity guidance our in separately, also the quarter, giving updated operating

expense items, $X BOE; and and BOE. expense $X.XX and G&A between between per and other we cash per operating BOE; the providing $X.XX $X severance per-BOE and the $X.XX per following BOE; $X.XX $X.XX between taxes are between adjusted ranges: $X.XX On lease per to workover and

and the I'll for back With of take we'll David to that, over turn comments, a then call questions. closing couple your

strategy, think your materially questions. that you Midstates. success today. our performing forward we playing are thank Well, to seeing And an for exciting everybody's look on quarter and for We It was interest out. taking we

Jason McGlynn

and I'll on costs operational with I'll discussion our for XXXX and highlights, David. and up guidance. sheet with on provide the up follow quarter. begin investments then earnings an with discussion you, company's the update capital second Thank and balance of a a our finish

first day up average from XX,XXX Lime from BOE our We of Mississippian daily production quarter per BOE in XX,XXX during XX,XXX XXXX. on production quarter. day XXXX, As the our grew per properties the second David XX% BOE XX,XXX in increase of mentioned, an day, first quarter the per BOE day per of to achieved we

XX% previous second oil, our quarter the XX% the roughly assets production The during Mississippian was XX% gas, NGLs quarters. in with line mix natural Lime and from

program. the in quarter. activity slightly workover first to part million quarter, the second first million the was quarter as do its from net or of increased of $XX in This of company's which For loss a adjusted contracts. quarter, had derivatives the earnings, the million generated related charge per an to company's $X.X we share commodity million We $XX.X the noncash down base production from of $X.X second EBITDA $X.XX due impact included in primarily optimization decrease

Turning expenses. to

cash exclude per the and totaled XXXX. up G&A, company's taxes due $XX.X Second costs severance expenses, and $XX.XX of was million in restructuring quarter and during which The per increased from adjusted million cash but quarter. primarily quarter $XX.XX increased the employee $XX.X activity LOE, operating or workover quarter-over-quarter to advisory BOE the costs, include or production first BOE, second

increased operating the or this workover $X.XX lease quarter-over-quarter million per due $XX.X Again, Our the BOE $X.XX activity. and per million expenses $XX workover from second to BOE, million combined increased -- quarter $XX prior in up totaled our was primarily or quarter. for

the the our Specifically, workover $X.XX per cost quarter of expense per quarter, of BOE in compared first was to second BOE. $X.XX average XXXX

Lime Miss rate BOE sorry, million or per quarter Severance down million $X.XX XX taxes primarily $X.XX divestiture properties, in -- slightly our This or Anadarko-producing were tax $X.X per of than higher and this X-point -- quarter the $X.X compared effective to which other XXXX. BOE our is has assets. first the to due of a to

before items, primarily or totaled a capitalization per With $X.XX XXXX. which million and G&A the oil noncash nonrecurring to or quarter $X.X is was decrease excludes $X.XX respect per quarter-over-quarter first the of adjusted The measure in quarter to BOE quarter employee $X compensation expenses lower second of in and of XXXX. the cash due compared to cash BOE and certain G&A, second million gas properties, to any

quarter $XX.X X extended laterals, spud for CapEx wells. million, extended Operational approximately assets, with wells development coming X wells, we've and the X nearly Lime of including X the lateral these all brought from where the including our online, was Mississippian

costs well to XXXX mile approximately $X.X earlier, on X-mile million the quarter the Our mentioned trended and, lateral $X.X new million as lower laterals. per of average per approximately X-mile David in second

of balance million. On of million $X.X the end cash XXXX, second At the we quarter sheet. to the and approximately $XX.X had debt of net approximately in

was the cash of end at consisting million facility. the million, availability Liquidity RBL $X.X of and approximately $XXX of our in $XXX.X on quarter million

on expense cash property As year. in David million to RBL million per $XXX reduce March we our annualized $XX paydown subsequent the sales. mentioned and earlier, million million June RBL our of hand, down by closing a we $X interest made the should approximately Anadarko-producing This $XX to after with paid down a paid the in

the X, Lime about borrowing occur quarter, Mississippian October facilities under base next of the at revolving or was credit scheduled its assets. during the consisting Additionally, $XXX XXXX. company's solely million, redetermination on reaffirmed will base The borrowing

XXXX up Finally, I'll guidance. updated finish with our

We $XXX CapEx and between expect to to to XX,XXX production million, day per between guidance tightened have $XXX our day. operational and million XX,XXX BOE BOE per

realize $X.XX approximately approximately expect NGLs. Hub For $X.XX barrel per Henry pricing differentials, XX% WTI of for barrel oil, for NYMEX off and per we to gas WTI per to we realize per Mcf off expect

quarter. breakdown also giving This separately, operating last expenses workover updated and during out have activity lease workover quarter, in guidance we the to increase expenses our our break

On and adjusted $X.XX BOE; $X.XX the other per and are workover between $X BOE. $X.XX per-BOE ranges: following between and to expense per the and taxes per between per $X.XX cash lease expense $X $X.XX $X.XX and items, between severance and BOE; we providing BOE; G&A operating

then your the back call David couple questions. With that, comments, to of I'll over take for we'll a and turn closing

David Sambrooks

Well, Midstates. we think thank on performing look quarter playing are taking questions. to we success an forward your our And that you for strategy, everybody's interest today. materially for exciting out. was and It We seeing

Jason McGlynn

I'll provide and Thank update on follow a our with for sheet the costs discussion I'll highlights, second the an up guidance. and finish quarter. you, operational David. investments on with and our begin then discussion capital company's earnings up and a balance with of XXXX

quarter. first XXXX, day from XX% day the achieved David XX,XXX the quarter during of production in our day, the Lime We of increase our per As on from production BOE per XX,XXX we up Mississippian XXXX. second average quarter grew per to BOE mentioned, in of properties XX,XXX an first daily day per XX,XXX BOE BOE

second quarter The the NGLs roughly with our Lime the during previous XX% and production natural oil, was quarters. in mix XX% XX% from gas, line Mississippian assets

as had from a adjusted derivatives company's share which down an the EBITDA company's the first of quarter, first activity do million base the we quarter production per second the of quarter, $XX.X earnings, increased in generated million slightly in million We in primarily $XX workover related quarter. For its to net included million the $X.X impact optimization due charge This part noncash to program. was contracts. from $X.X decrease commodity of loss the or of second $X.XX

expenses. Turning to

million adjusted exclude company's second and $XX.X first but from the cash employee which expenses, in severance include up LOE, the G&A, operating costs quarter-over-quarter quarter quarter. cash BOE due production The workover or and primarily during increased the to of increased $XX.X activity costs, quarter advisory per was BOE, totaled Second XXXX. per million $XX.XX restructuring taxes and or $XX.XX

for primarily combined expenses this $X.XX or $XX.X million BOE increased $XX per second our per to in quarter. workover activity. was quarter-over-quarter due $XX from quarter totaled operating lease workover Our $X.XX and increased the the million million -- up BOE, or Again, prior

BOE cost second the the per in of XXXX quarter quarter, compared was our $X.XX of Specifically, first BOE. $X.XX workover to expense average per

tax which down a $X.XX per X-point Severance -- million Lime of and other $X.X slightly the quarter the taxes higher our due XXXX. compared has $X.XX properties, assets. or or our effective primarily XX this is million first rate to BOE divestiture to Miss -- sorry, of were per in Anadarko-producing BOE $X.X to quarter than This

and compared the is adjusted totaled was cash first in BOE of quarter of oil XXXX. before due or and excludes G&A of $X.X and gas second certain decrease the primarily to quarter-over-quarter respect items, XXXX. any second quarter The nonrecurring compensation BOE With lower per to $X.XX million the million to quarter $X in or capitalization properties, per to expenses which a noncash G&A, $X.XX measure employee cash

and the with including quarter our wells, X Mississippian was X Lime assets, wells all coming from the million, laterals, lateral of where for we've $XX.X the X extended these including extended wells. CapEx spud X online, nearly brought approximately Operational development

million Our approximately the mile laterals. on mentioned trended lower average and, quarter David the per as earlier, $X.X X-mile new of X-mile per XXXX second lateral well million costs $X.X in to approximately

On to XXXX, had approximately debt of $XX.X quarter At of net and in the approximately the $X.X balance cash million. end million we the sheet. second of

end the million on consisting at approximately Liquidity million, the our million cash $XXX availability $XXX.X $X.X of of quarter and RBL in facility. of was

Anadarko-producing on David closing paydown of made property our subsequent This reduce earlier, million and paid the As a hand, million we should per paid expense cash interest the million with RBL the RBL a year. in approximately million our to $XXX in to $XX annualized mentioned down down we $X sales. by after March June $XX

$XXX Lime XXXX. about during The reaffirmed base the credit base the next X, its consisting at of under will assets. or October quarter, Mississippian million, borrowing solely revolving facilities scheduled Additionally, was company's on the borrowing redetermination occur

up Finally, with XXXX I'll updated finish our guidance.

per million to between million, XX,XXX day expect CapEx day. $XXX tightened production guidance BOE and have our BOE and XX,XXX operational between to We $XXX to per

NGLs. we of to off off Hub WTI gas Henry $X.XX per expect differentials, Mcf pricing XX% for barrel WTI and to we NYMEX per $X.XX For expect realize barrel approximately per realize per oil, for approximately

expenses This the increase quarter, our in quarter. breakdown guidance out during and updated to giving workover we operating have our separately, also expenses activity break lease workover last

taxes per between G&A following and workover are $X.XX and per $X.XX $X between severance BOE. BOE; between between other providing per to BOE; the expense $X.XX cash lease and $X.XX per-BOE operating $X and items, $X.XX the adjusted and per and we expense ranges: BOE; On $X.XX

comments, couple David a turn take I'll questions. that, call your the back to and for With of closing over we'll then

David Sambrooks

are today. questions. taking we for an think you quarter thank Midstates. materially was our success And seeing and playing It exciting for your strategy, we on XWell, that out. everybody's to We interest look performing forward

Jason McGlynn

you, provide quarter. on I'll the and Thank guidance. up and a our discussion a with and on XXXX of discussion begin our company's the follow highlights, sheet up for with capital earnings an with then David. update and costs balance operational investments I'll second finish

the first XX,XXX XX,XXX up day increase from production we of XXXX. our mentioned, XX,XXX first day of BOE XXXX, Lime during quarter properties in an BOE BOE XX% BOE to We quarter. average per our day, per quarter in Mississippian production from David day the second the on daily per grew achieved As of per XX,XXX

from XX% oil, The production natural quarter the in was during gas, XX% our mix Mississippian XX% line second previous NGLs the and with Lime quarters. assets roughly

company's first of in second base million related net EBITDA decrease a had contracts. of workover the increased derivatives in $X.X to do from $XX.X its quarter, primarily million first in due from down program. part the an slightly million This $XX loss quarter. we commodity optimization impact of earnings, million quarter as per the adjusted was production quarter, We generated charge included second activity or noncash to the the For company's the share of which $X.XX $X.X

Turning to expenses.

Second primarily taxes and advisory exclude in severance production BOE, totaled the second $XX.X include $XX.X the The costs, up of million was per per G&A, restructuring and due workover BOE costs during quarter expenses, quarter-over-quarter but cash increased adjusted from cash quarter. $XX.XX activity increased LOE, which to first employee quarter or $XX.XX operating XXXX. and company's or million the

$X.XX prior and operating combined up for BOE, or activity. -- quarter. million or million second in $XX.X workover $XX was lease increased quarter per million Our quarter-over-quarter BOE the primarily increased our Again, to $X.XX totaled per $XX workover from the expenses this due

second to Specifically, expense quarter, per compared $X.XX the XXXX of first in our the BOE quarter was BOE. per average $X.XX of cost workover

the $X.XX our per Severance effective in than X-point quarter of of BOE to per which Anadarko-producing a Miss million and is -- -- has properties, compared Lime XX slightly higher million tax other taxes were quarter our down rate due to this or divestiture to assets. $X.XX XXXX. $X.X or sorry, primarily first BOE the $X.X This

expenses second With of $X.XX in compensation The to cash decrease adjusted before due is items, was BOE G&A, and G&A BOE million employee nonrecurring measure to the excludes primarily lower quarter-over-quarter of per the which cash quarter quarter capitalization XXXX. million of oil $X.X quarter per compared totaled to a or to and $X.XX in or gas properties, any and first second $X XXXX. respect noncash certain the

nearly X Operational our and extended X the approximately was assets, including wells, wells lateral brought these online, CapEx X for wells. including laterals, with million, X we've where from $XX.X Mississippian development Lime of quarter extended the the all coming spud

mentioned well new the approximately per to $X.X earlier, mile million costs lateral trended Our lower quarter in on XXXX David second of X-mile the per million X-mile and, $X.X as average laterals. approximately

quarter $XX.X balance million. debt the we of end to XXXX, approximately and approximately of On the second in At sheet. net $X.X million the of cash had

our quarter of RBL of million in facility. was Liquidity availability on approximately $XXX consisting and the $X.X of at million, end cash $XXX.X the million

after $XX paid David to in the sales. million with earlier, March and we paid interest As property annualized on reduce in cash mentioned RBL closing our by we should made expense a $XX This subsequent approximately down year. the $XXX million million Anadarko-producing down the RBL our of paydown million $X a June to per hand,

borrowing the of or during consisting Lime on XXXX. company's October credit about occur its The assets. base the X, quarter, base Additionally, next $XXX revolving at the facilities solely under million, will was Mississippian borrowing reaffirmed redetermination scheduled

XXXX updated guidance. our with up finish I'll Finally,

per have between We and CapEx tightened between our operational $XXX expect XX,XXX production to day to guidance BOE and XX,XXX million to $XXX BOE million, per day.

WTI expect For and Henry realize per per NGLs. approximately off we we for off barrel differentials, per gas for barrel $X.XX pricing per to NYMEX WTI oil, of to Mcf $X.XX approximately Hub expect realize XX%

workover lease our guidance in increase expenses out we have separately, operating break the and to our last during giving breakdown updated workover This expenses quarter. activity quarter, also

the the per BOE. per $X per $X.XX to $X.XX and $X.XX and G&A $X.XX and per-BOE following severance expense between between we adjusted providing per BOE; $X operating and On $X.XX expense other between $X.XX BOE; are BOE; lease ranges: cash and workover between items, and taxes

call the closing a David and turn comments, to then your back over take couple for I'll that, With of we'll questions.

David Sambrooks

to we We materially look Thank today. you was are that interest taking performing for exciting questions. everybody's playing our And your an think on for we It success Midstates. out. quarter seeing and strategy, forward

Jason McGlynn

investments and Thank a an capital and balance guidance. on up earnings company's I'll you, and with of with our update sheet XXXX second operational the quarter. our discussion David. up the finish begin follow and for with on costs highlights, then discussion a I'll provide

Lime David XX,XXX XX,XXX properties average per day, on our of day the quarter. BOE the from in quarter XXXX, our achieved up first second we in XXXX. XX% the of daily first BOE of quarter grew per an day production day from BOE As production mentioned, BOE We XX,XXX per per XX,XXX during Mississippian increase to

XX% the from XX% second line and assets Lime with during natural NGLs gas, the The previous our oil, in XX% quarters. production was mix roughly quarter Mississippian

a of workover $X.X company's down base derivatives had $XX We quarter. the the we of $X.XX per related earnings, the included noncash quarter the part For company's EBITDA in which commodity in to from of contracts. impact second adjusted in second share to due optimization an as or million net charge loss first quarter, increased slightly of $X.X program. activity generated do million $XX.X quarter, primarily its million from first was production decrease This the million the

expenses. to Turning

BOE, increased increased exclude the G&A, and production include quarter. per restructuring or quarter quarter and employee in of during activity up second was taxes the per cash costs first operating due totaled which $XX.XX from $XX.X primarily Second but LOE, severance XXXX. million BOE adjusted million $XX.X advisory quarter-over-quarter costs, $XX.XX workover the company's cash or The expenses, and to

million Our or per $XX.X to prior lease or the up was operating second quarter. BOE, million primarily per $X.XX our totaled and $XX -- in $XX million the Again, this workover from workover $X.XX BOE quarter for quarter-over-quarter expenses due increased combined increased activity.

expense the to cost of second Specifically, per in average the was per BOE $X.XX BOE. workover quarter, our compared of first quarter XXXX $X.XX

tax the or other $X.XX BOE the our this million million assets. in quarter a divestiture and down Lime first Anadarko-producing Miss to quarter XXXX. This -- per or compared of higher primarily is of $X.X were $X.XX to to our effective XX has due properties, sorry, Severance $X.X taxes per rate -- which slightly than BOE X-point

before quarter per $X.XX due second The any was quarter quarter-over-quarter of properties, million excludes in cash primarily nonrecurring BOE G&A, to totaled the gas measure which G&A With or XXXX. adjusted expenses capitalization a $X.XX or items, cash the decrease respect of noncash employee and $X.X and the compared quarter to million of second $X and BOE to in compensation per certain first to oil is XXXX. lower

Operational spud of online, lateral Lime wells the X wells, brought coming quarter development we've wells. X was and nearly CapEx assets, for the X $XX.X these our extended from the all X Mississippian million, laterals, including with including approximately where extended

on XXXX second million lower Our average X-mile the laterals. approximately quarter to as new well million mentioned costs lateral $X.X in per approximately trended X-mile of David the earlier, $X.X per mile and,

million. the quarter second sheet. million net debt $X.X approximately had $XX.X we cash approximately XXXX, On in of At balance end of the of to and the

the of million, Liquidity end of at $X.X availability was the $XXX our facility. consisting of RBL on million in and $XXX.X quarter approximately cash million

hand, a paid David made approximately down annualized paid the RBL the reduce a per $X As on $XX to $XXX with RBL of in earlier, our property we our after Anadarko-producing we million cash $XX paydown by should subsequent and down year. mentioned million sales. This to million expense million the in interest June closing March

assets. during The borrowing Additionally, next Mississippian the quarter, base revolving facilities X, occur the about scheduled or consisting solely company's reaffirmed October under on $XXX XXXX. redetermination borrowing its credit of will base million, the was at Lime

finish I'll with updated Finally, guidance. our XXXX up

day. We day XX,XXX between between to BOE XX,XXX $XXX have per and CapEx guidance operational million, and to expect our million $XXX per tightened to production BOE

per for expect WTI $X.XX NGLs. $X.XX we realize approximately pricing barrel per For differentials, to for and XX% NYMEX per of gas Hub to WTI we expect per off off oil, realize barrel Mcf Henry approximately

also guidance out have breakdown we and expenses expenses increase workover our to activity workover our quarter, last This the updated break separately, giving in operating during quarter. lease

expense expense we lease $X.XX $X.XX and workover $X other BOE; $X.XX following operating between G&A BOE; between between $X.XX $X severance and On per the adjusted BOE. to taxes the items, $X.XX and and and per $X.XX per-BOE BOE; ranges: cash per are per providing and between

back of over a call to comments, your questions. closing for and I'll that, the then we'll take couple David turn With

David Sambrooks

Midstates. are thank that to playing seeing an performing for forward It questions. success quarter exciting Well, We you our look on we and your taking today. everybody's for was we materially think interest strategy, out. And

Jason McGlynn

second discussion our and and Thank finish you, guidance. David. capital up I'll company's a a on the our discussion earnings XXXX up with highlights, for I'll follow of operational update begin with then sheet provide an on balance the costs with and investments quarter. and

second XX% As the of our day the daily BOE first of we properties XX,XXX We per first David production XX,XXX from during in from XX,XXX to on BOE quarter. quarter an day average day, per increase BOE XXXX. production our Lime XXXX, per per up BOE in XX,XXX quarter achieved Mississippian the mentioned, of day grew

The was in during from production XX% oil, natural roughly the Mississippian second quarters. and gas, assets XX% mix quarter line XX% NGLs Lime previous our the with

derivatives For was company's which of noncash the or charge million second do generated quarter, earnings, $XX net $X.X base first an quarter workover in EBITDA commodity as million of we $X.XX in loss the company's related impact $XX.X million in decrease program. increased second This adjusted its slightly part to share the the million down a due per production first We the had included from quarter, of contracts. $X.X to quarter. primarily from optimization of activity the

to Turning expenses.

adjusted severance costs, in but $XX.X include BOE, company's cash expenses, employee quarter taxes G&A, or million $XX.X activity advisory totaled was second operating and during quarter LOE, up cash the to quarter. workover of XXXX. The which Second increased $XX.XX production primarily exclude and costs from quarter-over-quarter and restructuring first BOE or the increased per per the $XX.XX due million

the second for expenses primarily activity. from and per increased $XX in operating quarter. $XX.X up per BOE $X.XX prior Again, this workover to lease or million quarter totaled combined BOE, Our workover million $X.XX -- increased the our $XX quarter-over-quarter due was million or

XXXX per was per expense the in Specifically, to quarter, compared cost $X.XX workover quarter BOE BOE. of second average first the our of $X.XX

XXXX. -- of the taxes sorry, primarily higher and of quarter or BOE Miss has the quarter to X-point Anadarko-producing which $X.XX a down tax in were our per Severance than to This to is $X.X million XX Lime compared or due our BOE rate slightly per other assets. effective $X.XX divestiture this $X.X million -- properties, first

and primarily nonrecurring With per $X due $X.X to and before in of compared in any gas of second the compensation of The expenses lower the or million $X.XX is employee oil million and capitalization BOE or quarter-over-quarter second BOE to a per properties, items, which quarter cash quarter quarter certain XXXX. decrease G&A to respect noncash was XXXX. first $X.XX the to G&A, measure adjusted cash totaled excludes

extended the of for Mississippian with quarter laterals, brought wells, lateral and Lime spud our wells the was all these X development $XX.X CapEx X we've online, X million, where including Operational coming including from extended wells. approximately nearly the assets, X

XXXX per well new trended approximately $X.X as laterals. to on in lateral million approximately second and, earlier, lower X-mile $X.X costs X-mile the mentioned average million Our per of quarter David the mile

end had of the million approximately we million. XXXX, of the in of sheet. quarter On net debt to approximately the and cash $X.X balance At second $XX.X

the RBL the end of cash was million, on availability million $XXX.X facility. our at quarter of Liquidity million approximately $XXX of consisting and in $X.X

in by million with the the we the $XX $XX in reduce million expense to RBL approximately March on cash our annualized and a year. down This paid our RBL property hand, interest after to made per we million earlier, mentioned should David sales. a closing paid paydown As $XXX subsequent of down $X June Anadarko-producing million

redetermination company's $XXX of Lime at consisting million, base the will occur The Additionally, XXXX. the during the borrowing quarter, solely under was about assets. credit on next October or Mississippian facilities revolving borrowing its X, base reaffirmed scheduled

guidance. I'll updated finish our Finally, up with XXXX

We production day. have XX,XXX per tightened between our and per operational day CapEx guidance BOE expect to to between $XXX XX,XXX to million and $XXX BOE million,

Mcf to oil, $X.XX barrel barrel approximately off we gas we WTI of differentials, NYMEX to $X.XX pricing off approximately and per per Hub WTI for For per realize NGLs. expect for expect realize per XX% Henry

our we our breakdown separately, increase giving expenses to have last guidance operating quarter, also lease in workover expenses during and out break This workover updated activity the quarter.

$X.XX the other BOE. providing taxes severance $X between per $X.XX BOE; items, per are adjusted G&A between and per and per $X.XX between and operating the ranges: expense and expense and per-BOE On to $X we between $X.XX following BOE; and cash BOE; lease $X.XX workover $X.XX

comments, for then call questions. closing With turn back to couple of over that, and your a the we'll take I'll David

David Sambrooks

seeing We your strategy, It materially you playing taking performing our look Midstates. are for exciting we that thank forward and to an on interest think everybody's questions. success was And today. Well, out. we quarter for

Jason McGlynn

for questions. Operator, ready now we are

Operator

our we of McDougall. [Operator Instructions] first have from the Bill question line And

Unidentified Analyst

group have I a of questions.

First where of reduction do expense you for all, the see going biggest opportunity forward?

David Sambrooks

is David. this Bill,

probably we the to expense going first like the I of to year that expense think workovers workovers in we're The compared conducted during workovers. rigs. first half the success of rig a the Those and the program capital down workovers. first is -- year. categories about of the good rest for are on with both that the mentioned, economic is see biggest half what XX of And half a running we're year production, X-workover in And those year second half elevated outcome. of of the the the forecast we combination to the which far from maintain I the were is

expense of reductions. of then are to expense of achieved I And to rates. of first the second kind see going rates, kind think think So the to categories expense run kind that And the for year, rest other a lot over of that, is think half what we're the actually we've I component going those the pointing you're reduced reduction. half see -- of biggest I the

of that. first kind a the come be the organizational And of down kind runs as would changes. it example from G&A lower year when of show made So rate will results. seen the run quarter-over-quarter We've we good of that that out,

Unidentified Analyst

rate in second earlier lower the then, program specific made to enhanced and just of run reduction the already workover in secondarily, the expenses release half in was So complete that the the year? about being you the benefit reference

David Sambrooks

right. I think right. that's Yes, That's

Unidentified Analyst

that in to an some the at back come enhanced let's past? the anticipate is have neglected this repeat And properties to something available would in helpful. workovers. because opportunity to the Was Or that's the you having that been future? program you Okay, point

David Sambrooks

Yes.

focus kind our guess, it at procedures really increased the part of to look was what on I would So on I overall an production. call just base

areas we've you base really in And of So months. attacked that E&P returns are around it, different kind X the production. company the of quickest world in, the last, call your all over get

a focus. just we So had increased really

maintenance. there before being terms that was think of plenty I base done in

we'll that bit kind that the earlier, on, things down. little that's try a And longer plays expenses reduced -- little changing -- X just a the keep newer really giving. the we the I like newer a think to pump the brought up were can over time. If probably, extend keeps there call to mentioned that equation. rates, get I -- times. gift One production was failure and the to methodology replacements, procedure on it, But out with we simply run of

surprised. second think been was we the really efforts, was before. And it laterals much that piece that enhance and and or assumed the think we something I restimulations. pleasantly the restimulation something of expected production, cleanout doing And hadn't done would -- I we which were was

So was done bit We've -- I mean, approximately the what I operated workovers think we've XXX we XXX a did slug. with wells.

first, through. that imagine, hit our big a the you went But We're we workover set continuing kind percentage of declined. opportunities. that's opportunity So further most attractive of pretty kind of and to then we at can look as that

more want focused on much what we being to we're So attack.

anticipate that we kind times. same run think workovers of forward. that The of don't goal But phase into really level I we'll we're So is have evaluating have to -- we the workovers now have I longer look our because the as of producing. lower

production We those. and have back perform have wells go to if on opportunities that see enhance and there's to been to continuing online

I the think probably So that's phase. next

Unidentified Analyst

to an whether though enough not down or gone that it there evaluation is have as perspective not, even you're quantifying And some far you to have opportunity yet?

David Sambrooks

little Yes, bit if enhance I mean, see have restimulations. with a done can identified wells have. go think of We've we we some to we I already. that and

of call would I that So underway. kind

probably communicate think aimed of decline we cases that's of that move enhancement. be program of going decrease production. as rate it's forward. in base individual number kind size trying at And we'll some don't I of certainly, think I opportunities. to we we of But a terms significant your to well the dramatic hope of more get it's

Unidentified Analyst

a And questions. That's helpful, David. object, you I don't to few more ask would like if

frac many First laterals? have that your upon, of does to endeavoring how you're the per laterals X-mile to X-mile And do mile? how that you compare stages all, relative

Sambrooks David - A

a it X-mile? just stages say out cut Bill, -- you Did Did little bit. you per

McDougall A - William

per on compare the how original mile to does stages the X-mile and laterals. X-mile, that Frac Yes. then

David Sambrooks - A

X-mile around completion optimization common laterals. a we've most the part done it's completion. would of our on that our I yes. the Okay, XX-stage laterals, little on say is discovery a bit with X-mile still Historically,

So X-mile on one laterals, of just we basically the that. doubled

at So XX we were stages.

the completion. per XX X-mile on And of or a right X-mile testing was now. completion pumped XX-stage stages laterals are one a we X-mile lower-stage laterals, that counts We

doing to I the -- on size the seeing X-mile there'll So wells be we'll experimentation the we're additional those. what probably frac kind through from of of that think around we're going and optimum year -- the the some end wells, the now be X-mile be

So in X-mile laterals. on I of evaluating lot kind early optimization X-miles, mean, on the with of day still the we're knowledge we're a from -- still but

McDougall William - A

program? than to production average? I doesn't enhanced your a That's exited the And And fact rate take lastly, you assume quite what you of a worth workover third account the quarter helpful. quarter that for the the quarter's are at then second relative average anticipating quarter higher into full

David Sambrooks

we Well, don't don't. Yes, guidance. we quarterly out give

going that. were end So of your But the specific you first and valid. -- give think yes. but seen The towards the mean, that in second pretty of results we're more largely you're points workover number the I you to I the there. are not said, a I as much program think from quarter,

think So and of the a be drill it's effects adding then complete. the I kind workover to and enhanced natural just combination a in wells, full decline kind of run reservoir going the of on of rate versus base

saw full for So achieving from -- guidance. range really feel to the We I XX,XXX XX,XXX. we we tightened comfortable feel that on good the We that mean, about with up year.

the start our and calculating production I remainders. So we're positive for where obviously, can think about kind deducting you of is quarters guidance. potentials But in

- William A McDougall

Absolutely.

to So rate? did for you're a your Is little tiny exit quarter you just run something willing to bit. What second push I am the going back that share?

David Sambrooks

BOE rate correct. XX,XXX about per -- Well, now day. currently is I'll say, yes, right just current our

Operator

next the Amer the from have we Tiwana. line And of question

Unidentified Analyst

of couple A questions.

two, the in Northwest that strategy speaking, generally waiting respect outcome because that? much determination to your on? heard that on the from And you what the and we And front. with process, activity you'll you're after STACK any is for you SandRidge comment make haven't Is that basin? on a just can that First,

David Sambrooks

last our of we area. Right. quarter, in on on have around with report really -- strategy activity us. we're to where right the to were There's don't a the It's lot Yes, going I'd kind that same that the watch same spot in much say we is now. the

across of see last reviewed additional. basis we I every kind properties kind quarter, those So quarter in some detail. technical something of the

comment So of we as announced acknowledged, can't kind watch know, and I the the and map. we're that you But review on continue we've as specifically process. more in about to or wells opportunity SandRidge. come And

some complementary And that they area. have so same assets in

play follow we're closely, have So pretty but do to capitalize I or right mode. say would plans any to continuing now, but wait of wells the drill there kind not to any see and immediate still

Unidentified Analyst

to can is, in Sure. price next basis, are -- in obviously, sort going question here of that's significant what what going And of and, that's anything we the seeing? or terms a are forward, in there? gas the the Is you hitting my guys Or you realizations, are and hard particular that look to? terms be positives there negative negatives of

A McGlynn Jason -

take The HENRY of from through it first at Thanks, January the of blowout HUB so, good where persisted just PPL NYMEX happened end that the the earlier but the half of the The or contracted contraction norms, starting over from historical back experiencing a kind is month significant is basis has and to question. it I'll was news last Amer. year. Yes. biggest diff that year. definitely that this not piece the that we're of

nothing stuff there, side move us guidance better -- as do little forward it. options but go-forward looking hopefully forward at exactly different bit pricing what on report in It's obviously on And we'll to anticipate time. we're moderating we for of little see on to is. of point realization at can things we some So just more gets that some a where basis. we're that this a the a And bit

Operator

[Operator Instructions] comes line the David from Your next of Beard. question

Q –Indented Analyst

on step-up IRRs. look I'll previously, A so is in focus I that It this at just the when bunch X-mile questions metrics, these laterals. a cost good of eyepiece, in your the seems

just the with X-miles? characterize going that? to how on Or IRRs as you you would would influence Just relates it agree

- A David Sambrooks

on side. really a the strongly -- X-mile this to components to is Yes. X-miles. basis. going kind X-mile X economic enhanced there we as good clearly, on the these No, And basis, -- per no play see very that get. We there's it's doubt cost returns to it. that's we're as correct. I cheap One, compared into be can It's mean, is of

and start of a enhancement. head So that's big economic kind

that into little those this Lime initial analysis have we'll area, go over I get in Those bit things getting on, we curve? times we're like on issues. a full bit out maybe The so of Are data of laterals of maybe stated, -- the Xx type of other you kind on. the Xx you And get the rate? very it's are getting so a you more early X-mile full we Xx you a EUR. it's do little which, greater around the cautious, see terms but a get didn't type side, a a mean, good Xx to went We are into time, curve that wells? with frankly, in but don't amount Miss pre-reliable from what I of

those a probably, that's to of offset we're right initial just when our X.X range. we're we compare -- is the X.Xx rate. more So about We X rate all the a average, now. And on the good. on data that X.X wells, in initial to at little on X-milers, scattered kind And see about this,

we I be to expect reductions. the And be think seeing it what so yes, X-milers. of So step-up rates, it's the combined going in mean, expectations economic it I a on do or definitely expectations we'll return we're cost kind far. And of over on to checkmarks on kind

Q –Indented Analyst

to Good. IRRs or you share and And would differentials at basis a oil care for guess normal gas? assuming take

A - David Sambrooks

If time on We steps we'd we -- called really these you'd give yes, more it. that, first the now. think a right us little appreciate

of discussion And really we've it's so we confidence the -- early kind that. have variable we looks that with just with But think that in the previously us obviously rates initial And real-time at our first economics the at enhanced. gives are time.

any the about down trying more that. we're didn't year-end, laterals, don't we additional with we get on same to of you guidance enough add by X-mile the the it, think kind completions. so of do, And We work basis executing cost should think that descriptive through we're give focused going data do but we more X-mile were to we reliable might be applications where laterals on much that that that I that. have speak can on the to

a little enough So by collection laterals give we should the have the X-mile them, on be more call X-mile that year to of end we'll a and that. data bit new-generation descriptive of, think us

Q –Indented Analyst

some the not inventory going I'll give subset lanes. to that's Tacoma but but area laterals. more combination right in we area kind the in much have mean, availability a around There's have of for to X-mile a a now you early is going inventory's that testing lateral where that I or kind the of about core developed, to that time, question. we Again, our into of those and X-miles. more X-miles have areas extension going just the be like X-mile I when But description of we're guess, year some to western for total. Carmen fully the then initial in X-mile going the go our we're obviously, be maybe did our ago, South lanes areas,

move forward. early a probably to, organization view from at we're doing now laterals. least to going both be results, Our X-mile right is prior are have going We towards our we as

but laterals you'll I our both think build possible. XXXX will we as as I X-mile we So see think budget, emphasizing be much there, the in as

Q –Indented Analyst

subjects could Great. And shift if one just and I philosophy. That's to hedging, another squeeze hedging in helpful. over

needs for do strong a mitigate the You have may hedging. would be which sheet, balance --

your and in given thought hedge got a could to you you've argue hedging out strong Going need as 'XX forward, sheet? is, don't book your is mean, to I it you with set what balance 'XX,

David Sambrooks\

is you mean, it's flexibility clean we that I think our balance board. Yes, And given the yes. a there always a -- definitely sheet. there's of are with I point of a our kind that very that have lot made view healthy debate

always your overly don't term aggressive -- in we're of hedging. more I I near hedge kind long is think it think versus at the think look term. of way of I in the that I terms And

and price a of kind able And we're kind over I to will what for the time is market in of think kind looking flows a be terms So the of exposure hedging protect we we to have year to of the program frame, have cash with do always more execute kind out the year. longer of that to trying the that.

continue a to now on program that I So have I think the what in to to will I we'll -- go the similar continue with go-forward. but the imagine hedging schedule we'll do board, we think

Operator

at And this questions Presenters, you continue. time. no may are further there

David Sambrooks

attention today. your for everybody, thanks, Well,

are. You where know we

talking to If call. you We have to any a soon. you us you give questions, further Thank look much. forward very

Operator

thank gentlemen. you, hank appreciate participation. This concludes ladies you, presenters, today's your and and conference call. We

disconnect.++ now may You

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