Thank you.
Good morning, and welcome to Contango's second quarter 2020 earnings call.
Colyer the Wilkie of Executive is Contango. name and Chief I'm Officer My
Farley President, the the joined Dakan, I'm by Company's Financial Company's Officer. and Chief Grady, Joe
this to I statements cautionary statements information that through had on everyone measures forward-looking press time non-GAAP to hope yesterday's including has regarding – apply morning's and the this earnings release, read the call.
goals cash not earnings we biggest still reiterated current generation, or year organic On changed. our June, Contango's had in environment. which free late our for call last focus year, in expected flow course quarterly still over the One, the of price internal and commodity the this
Partially, increase reductions. by added of able year to reduction. to reserve our LOE reductions end the this us, has beat This during the huge a reduction as values. end in high LOE an workover the focus workover reserve quarter, still production quarter guidance evidenced this of were rig but we in for benefit our for costs. is is Two, spite reflected in beat in value, the due been The XXXX operating to is which none on
hedges. Three,
to remains hedge and Our operating core valuable strategy. book our
well pandemic second avoid prices we experienced Importantly, quarter. came into in at the because we the were to the hedging able hedged, incremental low
next. are We GDP oil XX% and XX% forecasted year and hedged this on
Four, storage.
allowed to market selling avoid us Oklahoma unhedged a Central in QX. in crude capacity very into storage weak latent Our barrels
spot are price. We barrels those quarter materially now selling crude a this at higher
capital platform. we During and Mid-Con working Partners diligently our QX been in have human the quarter, Energy and to integrating assets the subsequent into
the the Counsel, executives, Roller to Chief Officer positions have and enhanced Chad General via appointment two of Mid-Con to proud Chad and We of Operating McLawhorn respectively. our management are team
which add have have oil these assets them we Contango, are environment. recovery assets oil upstream to relationships In typically asset a decline professionals making crude to in have dating Mid-Con. is assets years several we are own several a low technical in interest people excited very expertise with and in ideal their recovery back Enhanced to hired I in from addition, lived, we niche that class rising enhanced pursuing. long and
our some like several have I'd Mid-Con reorganizations, to player, purchases, talking spend court purchase a In discount, first about as outright M&A. last bond time pre-reorganization in of evaluated months, the opportunities. well as pipeline a at we lien loan XXX sales, a Now, distressed
to with shareholders. and to concerned We less the get with the asset concerned the it are and of maximize more how underlying to value structure that for investment value, how our existing
The debt actively number of opportunities has and interest are quarter, increased past defaults. payments missed bankruptcies, and substantially over the tracking we
we debt July of one been As gives supportive our permanent and of XXXX, $XX advantage and an situations Each believe with is balance these unique, us have XX long mandate, a bankruptcies types flexible situations. structure, of capital XX, horizon and there investment aggregate in these of billion. term competitive
friction In with certain standalone the may our that counterparties, to these we to elimination restructuring case, expenses to option. us capitalize Contango an wait G&A, platform minimize transact, In well-positioned Contango. transact on reorganization with until costs for our either make and flexible unpredictability cases, post outcome the coupled we ability For be of the the believe to is of and opportunities. attractive how to we elect
from preferred filed of company registration the behalf capital statements to share registrations statements on certain like myself. placement XXXX. the of the private on stock by insider issuance raises relate These individuals, including also in the I'd to comment recent
back by those these And any not Colyer involvement will to have statements, the entities believe of of meaning, with as insiders, in company. Although of a stock Contango, or sell direction in necessarily the describe dating stock. phrase Dakan our the holders strategy any selling that does mean or active the of are shareholders is the Goff, to or covered none individuals sold used selling we it stock shares
shares These common paid the given nature considered and to it passu security dividend, the liquidation would raise shareholders, probably issue shares, were so right the common We illiquid have preferred issued way, disadvantage with as capital no our shares, securities converted of we to common. been when outstanding to pari count us to now to common shares be allowed in shares. wouldn't them inferior us because relative have equity of in not minority a authorized allow share as no incremental and preferred all
by to for the remarks Contango, our your my Contango elsewhere. Mid-Con at difficult in for morning work welcome prepared during times these of interest for employees to time and this industry their who like country, hard I'd employees and from company and over and thanking all came the the you your dedication Thank end new and Contango. in
the analyst community. that to for line are With the operator, we from open ready questions up
