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