Good morning. My name is Bridget, and I will be your conference operator today. At this time, I'd like to welcome everyone to the Midstates Petroleum First Quarter and Earnings Conference Call. All lines have been placed on mute to prevent any background noise. [Operator Instructions] Thank you. I will now turn the call over to Jason McGlynn. Mr. McGlynn, you may begin your conference.

Thank you, Bridget. Good morning, everyone, and welcome to Midstates Petroleum's first quarter 2017 earnings conference call. Joining me today as speakers on our call are Jake Brace, our President and Chief Executive Officer; and Nelson Haight, our Executive Vice President and Chief Financial Officer. Jake will begin with an overview of operational and financial highlights from the first quarter. Nelson will follow with additional details on our operations and financials. After Nelson, Jake will make some follow-up comments. And then, we will take your questions. Before we begin, let us get the administrative details out of the way with our Safe Harbor statement. This conference 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. Please refer to Midstates' Form 10-Q that will be filed shortly with the SEC for a discussion of these risks. Also please note that any non-GAAP financial measures discussed in this call are defined and reconciled to the most directly comparable GAAP measure in the tables in yesterday's earnings release. Now I'll turn the call over to Jake for his comments.

Thanks you, Jason, and good morning, everyone, and thank you for joining us today and thank you for your interest in Midstates. Midstates has had a good solid start to 2017. We performed comfortably within or better than our annual guidance. Our production for the first quarter averaged a little over 23,500 BOE per day. This was a bit higher than we expected. At the beginning of the year, as we brought on two or three really strong wells online in a quarter, that boosted the average. The production team also contributed to our production outperformance as they did a fabulous job keeping our wells producing during the tough winter months. Operationally, we remained successful in securing acreage and future drilling opportunities with our one rig drilling program while continuing to generate attractive well level returns of approximately 35% at current strip pricing. Our drilling and completion teams have done a good job of maintaining efficiencies gained in prior years. And as a result, we are currently outpacing our estimated average well cost and drill cycle time. Average well cost year-to-date is about $2.7 million per well; slightly above our 2.6 million average in 2016, but below our estimate of 2.8 million for 2017. Drilling cycle time measured from rig release to rig release is running approximately 14.3 days per well, again, above our 2016 average of 13.3 days but below our 2017 estimate of 15 days. On the saltwater disposal front, we have completed two additional non-Arbuckle disposal wells and brought them online into our integrated water handling system. Bringing total permitted capacity of the system to 312,000 barrels of water per day, of which, non-Arbuckle formation represent 180,000 barrels of water per day. As a point of reference, we averaged 185,000 barrels of water disposed during the first…

Thanks, Jake. I'll begin with discussion of the company's operational highlights and follow with cost and earnings for the quarter. I'll then provide an update on our capital investments and our hedging program, and finish up with the discussion on our overall liquidity and our 2017 guidance numbers. As Jake mentioned, in the first quarter of 2017, we continued to operate one rig in the Mississippian Lime focused primarily on HPP [ph] and terms acreage and securing acreage under our farming arrangement. We achieved average daily production of 23,562 barrels of oil equivalent for the company, down from 25,259 barrels of oil equivalent per day in the fourth quarter of 2016. And the company's Mississippian Lime properties contributed approximately 83% or 19,540 BOE per day of the first quarter's volumes with the balance coming from our Anadarko Basin properties. In the first quarter, 30% of our total production was oil, 24% NGLs, and 46% gas. Our production mix for the quarter included a bit more gas than expected. And we attribute that to a slower rate of decline in existing gas production. Turning to expenses, our first quarter adjusted cash operating expenses, which include LOE production taxes and cash G&A that excludes transaction, restructuring, and advisory costs, totaled 26 million or roughly $12.28 per BOE, down from 28.4 million or $12.22 per BOE for the fourth quarter. Our lease operating and work over expenses for the first quarter totaled $15.9 million or $7.47 per barrel of oil equivalent, down from 18.6 million or $8 per BOE in the prior quarter. A decrease quarter-over-quarter was due to field operation efficiency gains in the Anadarko Basin and roughly 1.9 million non-recurring reduction in LOE during the first quarter of 2017 related an insurance recovery settlement. Removing the impact of that insurance settlement…

Thank you, Nelson. In closely, our performance for the first quarter was very solid right where we wanted it to be. As we move forward, we will continue to focus on capital cost discipline, operating cost optimization, and opportunistic acreage additions to increase returns as we continue to exploit our premier Miss Lime assets and knowledge. We have an outstanding team of employees and contractors who know how to do all this. And they continue find incremental acreage and to operate and drill consistent low-cost wells day in and day out. They have performed exceptionally well, and I want to take this opportunity to thank all of them for with them, none of this would have been possible. With that, Jason and Bridget, we're ready to take any questions.

Okay. I will take no questions as we have given you a lot of information out there. Thanks everybody for participating. If you do have some questions, reach out to Jason and he'll get in touch with whoever he needs to answer your questions. But we do appreciate your participation and we do appreciate your interest in Midstates. And we look forward to talking to you next quarter. Thanks everybody.

And thank you. This does conclude today's conference call. You may now disconnect your lines.