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.

Thank you, Leeway. Good morning, everyone, and welcome to Midstates Petroleum's second quarter 2018 earnings conference call. Joining me on the call today is David Sambrooks, our President and Chief Executive Officer. In today's call, David will begin with an overview of our operational and financial highlights. I will then provide additional details on our operations and financials. And finally, David will make some closing comments, and we will take your questions. Before we get started, let me read our safe harbor statement. This conference call contains forward-looking statements and assumptions, which are subject to risks and uncertainties, 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 on Monday with the SEC for a discussion of these risks. Also, please note that any non-GAAP financial measures discussed on this call are defined and reconciled to the most directly comparable GAAP measure in the table in yesterday's earnings release. Now I'll turn the call over to David for his comments.

Thanks, Jason, and good morning, everyone. Thank you for joining us today, and thank you for your interest in Midstates. We performed well during the second quarter. Our production was approximately 20,600 BOE per day, with 17,200 BOE per day coming from our Miss Lime assets. Our Miss Lime production increased 11% from the first quarter due to a highly successful enhanced workover program that I'll review more briefly. Also, we generated approximately $27 million of adjusted EBITDA, and our capital expense and capital items were in line with our budget expectations. We are measurably executing on our market-focused strategy by enhancing our investment returns, cutting costs and improving efficiencies throughout the organization. We closed the sale of our Anadarko Basin producing properties at the end of May, with net proceeds of approximately $54 million, while retaining our Northwest STACK position to exploit later. And we paid down our RBL by another $50 million, bringing our total RBL paydowns this year to $100 million. I'm very pleased with our efforts to-date to reduce costs and further enhance our competitive margins. Moving to our operational performance during the quarter, I'll start out with exciting news in our base production optimization program, and then provide a bit of color on our drilling and completion design optimization program. At the end of last year and early this year, we fully evaluated our opportunities to enhance our base production. And in the first quarter, we initiated a large well workover program. At its peak, we ran a 10-workover rig program during the second quarter, and we have performed over 180 workovers thus far in 2018. This workover program led to a boost in production from these wells of approximately 2,100 BOE per day. The workover program consisted of 2 main components: first, a focus…

Thank you, David. I'll begin with a discussion of the company's operational highlights, and follow up with earnings and costs for the second quarter. I'll then provide an update on our capital investments and finish up with a discussion on our balance sheet and 2018 guidance. As David mentioned, we achieved average daily production of 20,584 BOE per day during the second quarter of 2018, up from 19,235 BOE per day in the first quarter. We grew our production on our Mississippian Lime properties to 17,202 BOE per day, an 11% increase from 15,518 BOE per day in the first quarter of 2018. The production mix from our Mississippian Lime assets during the second quarter was 28% oil, 23% NGLs and 49% natural gas, roughly in line with the previous quarters. For earnings, we had a net loss of $1.5 million or $0.06 per share in the second quarter, which included an impact of $7.8 million noncash charge related to the company's commodity derivatives contracts. We generated adjusted EBITDA of $27 million in the second quarter, down slightly from $29.7 million in the first quarter. This decrease from the first quarter was primarily due to do the company's increased workover activity as part of its base production optimization program. Turning to expenses. Second quarter adjusted cash operating expenses, which include LOE, production taxes and cash G&A, but exclude restructuring and advisory costs and employee severance costs, totaled $23.1 million or $13.05 per BOE, up from $21.4 million or $12.37 per BOE in the first quarter of 2018. The increased quarter-over-quarter was primarily due to the company's increased workover activity during the second quarter. Our lease operating and workover expenses for the second quarter combined totaled $17 million or $9.57 per BOE, up from $14 million -- $14.8 million or $8.56…

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

Thank you, David. I'll begin with a discussion of the company's operational highlights, and follow up with earnings and costs for the second quarter. I'll then provide an update on our capital investments and finish up with a discussion on our balance sheet and 2018 guidance. As David mentioned, we achieved average daily production of 20,584 BOE per day during the second quarter of 2018, up from 19,235 BOE per day in the first quarter. We grew our production on our Mississippian Lime properties to 17,202 BOE per day, an 11% increase from 15,518 BOE per day in the first quarter of 2018. The production mix from our Mississippian Lime assets during the second quarter was 28% oil, 23% NGLs and 49% natural gas, roughly in line with the previous quarters. For earnings, we had a net loss of $1.5 million or $0.06 per share in the second quarter, which included an impact of $7.8 million noncash charge related to the company's commodity derivatives contracts. We generated adjusted EBITDA of $27 million in the second quarter, down slightly from $29.7 million in the first quarter. This decrease from the first quarter was primarily due to do the company's increased workover activity as part of its base production optimization program. Turning to expenses. Second quarter adjusted cash operating expenses, which include LOE, production taxes and cash G&A, but exclude restructuring and advisory costs and employee severance costs, totaled $23.1 million or $13.05 per BOE, up from $21.4 million or $12.37 per BOE in the first quarter of 2018. The increased quarter-over-quarter was primarily due to the company's increased workover activity during the second quarter. Our lease operating and workover expenses for the second quarter combined totaled $17 million or $9.57 per BOE, up from $14 million -- $14.8 million or $8.56…

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

Thank you, David. I'll begin with a discussion of the company's operational highlights, and follow up with earnings and costs for the second quarter. I'll then provide an update on our capital investments and finish up with a discussion on our balance sheet and 2018 guidance. As David mentioned, we achieved average daily production of 20,584 BOE per day during the second quarter of 2018, up from 19,235 BOE per day in the first quarter. We grew our production on our Mississippian Lime properties to 17,202 BOE per day, an 11% increase from 15,518 BOE per day in the first quarter of 2018. The production mix from our Mississippian Lime assets during the second quarter was 28% oil, 23% NGLs and 49% natural gas, roughly in line with the previous quarters. For earnings, we had a net loss of $1.5 million or $0.06 per share in the second quarter, which included an impact of $7.8 million noncash charge related to the company's commodity derivatives contracts. We generated adjusted EBITDA of $27 million in the second quarter, down slightly from $29.7 million in the first quarter. This decrease from the first quarter was primarily due to do the company's increased workover activity as part of its base production optimization program. Turning to expenses. Second quarter adjusted cash operating expenses, which include LOE, production taxes and cash G&A, but exclude restructuring and advisory costs and employee severance costs, totaled $23.1 million or $13.05 per BOE, up from $21.4 million or $12.37 per BOE in the first quarter of 2018. The increased quarter-over-quarter was primarily due to the company's increased workover activity during the second quarter. Our lease operating and workover expenses for the second quarter combined totaled $17 million or $9.57 per BOE, up from $14 million -- $14.8 million or $8.56…

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

Thank you, David. I'll begin with a discussion of the company's operational highlights, and follow up with earnings and costs for the second quarter. I'll then provide an update on our capital investments and finish up with a discussion on our balance sheet and 2018 guidance. As David mentioned, we achieved average daily production of 20,584 BOE per day during the second quarter of 2018, up from 19,235 BOE per day in the first quarter. We grew our production on our Mississippian Lime properties to 17,202 BOE per day, an 11% increase from 15,518 BOE per day in the first quarter of 2018. The production mix from our Mississippian Lime assets during the second quarter was 28% oil, 23% NGLs and 49% natural gas, roughly in line with the previous quarters. For earnings, we had a net loss of $1.5 million or $0.06 per share in the second quarter, which included an impact of $7.8 million noncash charge related to the company's commodity derivatives contracts. We generated adjusted EBITDA of $27 million in the second quarter, down slightly from $29.7 million in the first quarter. This decrease from the first quarter was primarily due to do the company's increased workover activity as part of its base production optimization program. Turning to expenses. Second quarter adjusted cash operating expenses, which include LOE, production taxes and cash G&A, but exclude restructuring and advisory costs and employee severance costs, totaled $23.1 million or $13.05 per BOE, up from $21.4 million or $12.37 per BOE in the first quarter of 2018. The increased quarter-over-quarter was primarily due to the company's increased workover activity during the second quarter. Our lease operating and workover expenses for the second quarter combined totaled $17 million or $9.57 per BOE, up from $14 million -- $14.8 million or $8.56…

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

Thank you, David. I'll begin with a discussion of the company's operational highlights, and follow up with earnings and costs for the second quarter. I'll then provide an update on our capital investments and finish up with a discussion on our balance sheet and 2018 guidance. As David mentioned, we achieved average daily production of 20,584 BOE per day during the second quarter of 2018, up from 19,235 BOE per day in the first quarter. We grew our production on our Mississippian Lime properties to 17,202 BOE per day, an 11% increase from 15,518 BOE per day in the first quarter of 2018. The production mix from our Mississippian Lime assets during the second quarter was 28% oil, 23% NGLs and 49% natural gas, roughly in line with the previous quarters. For earnings, we had a net loss of $1.5 million or $0.06 per share in the second quarter, which included an impact of $7.8 million noncash charge related to the company's commodity derivatives contracts. We generated adjusted EBITDA of $27 million in the second quarter, down slightly from $29.7 million in the first quarter. This decrease from the first quarter was primarily due to do the company's increased workover activity as part of its base production optimization program. Turning to expenses. Second quarter adjusted cash operating expenses, which include LOE, production taxes and cash G&A, but exclude restructuring and advisory costs and employee severance costs, totaled $23.1 million or $13.05 per BOE, up from $21.4 million or $12.37 per BOE in the first quarter of 2018. The increased quarter-over-quarter was primarily due to the company's increased workover activity during the second quarter. Our lease operating and workover expenses for the second quarter combined totaled $17 million or $9.57 per BOE, up from $14 million -- $14.8 million or $8.56…

Thank you, David. I'll begin with a discussion of the company's operational highlights, and follow up with earnings and costs for the second quarter. I'll then provide an update on our capital investments and finish up with a discussion on our balance sheet and 2018 guidance. As David mentioned, we achieved average daily production of 20,584 BOE per day during the second quarter of 2018, up from 19,235 BOE per day in the first quarter. We grew our production on our Mississippian Lime properties to 17,202 BOE per day, an 11% increase from 15,518 BOE per day in the first quarter of 2018. The production mix from our Mississippian Lime assets during the second quarter was 28% oil, 23% NGLs and 49% natural gas, roughly in line with the previous quarters. For earnings, we had a net loss of $1.5 million or $0.06 per share in the second quarter, which included an impact of $7.8 million noncash charge related to the company's commodity derivatives contracts. We generated adjusted EBITDA of $27 million in the second quarter, down slightly from $29.7 million in the first quarter. This decrease from the first quarter was primarily due to do the company's increased workover activity as part of its base production optimization program. Turning to expenses. Second quarter adjusted cash operating expenses, which include LOE, production taxes and cash G&A, but exclude restructuring and advisory costs and employee severance costs, totaled $23.1 million or $13.05 per BOE, up from $21.4 million or $12.37 per BOE in the first quarter of 2018. The increased quarter-over-quarter was primarily due to the company's increased workover activity during the second quarter. Our lease operating and workover expenses for the second quarter combined totaled $17 million or $9.57 per BOE, up from $14 million -- $14.8 million or $8.56…

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

Thank you, David. I'll begin with a discussion of the company's operational highlights, and follow up with earnings and costs for the second quarter. I'll then provide an update on our capital investments and finish up with a discussion on our balance sheet and 2018 guidance. As David mentioned, we achieved average daily production of 20,584 BOE per day during the second quarter of 2018, up from 19,235 BOE per day in the first quarter. We grew our production on our Mississippian Lime properties to 17,202 BOE per day, an 11% increase from 15,518 BOE per day in the first quarter of 2018. The production mix from our Mississippian Lime assets during the second quarter was 28% oil, 23% NGLs and 49% natural gas, roughly in line with the previous quarters. For earnings, we had a net loss of $1.5 million or $0.06 per share in the second quarter, which included an impact of $7.8 million noncash charge related to the company's commodity derivatives contracts. We generated adjusted EBITDA of $27 million in the second quarter, down slightly from $29.7 million in the first quarter. This decrease from the first quarter was primarily due to do the company's increased workover activity as part of its base production optimization program. Turning to expenses. Second quarter adjusted cash operating expenses, which include LOE, production taxes and cash G&A, but exclude restructuring and advisory costs and employee severance costs, totaled $23.1 million or $13.05 per BOE, up from $21.4 million or $12.37 per BOE in the first quarter of 2018. The increased quarter-over-quarter was primarily due to the company's increased workover activity during the second quarter. Our lease operating and workover expenses for the second quarter combined totaled $17 million or $9.57 per BOE, up from $14 million -- $14.8 million or $8.56…

1Well, thank you for everybody's interest today. It was an exciting quarter for Midstates. We think we are materially performing on our strategy, and seeing that success playing out. And we look forward to taking your questions.

Thank you, David. I'll begin with a discussion of the company's operational highlights, and follow up with earnings and costs for the second quarter. I'll then provide an update on our capital investments and finish up with a discussion on our balance sheet and 2018 guidance. As David mentioned, we achieved average daily production of 20,584 BOE per day during the second quarter of 2018, up from 19,235 BOE per day in the first quarter. We grew our production on our Mississippian Lime properties to 17,202 BOE per day, an 11% increase from 15,518 BOE per day in the first quarter of 2018. The production mix from our Mississippian Lime assets during the second quarter was 28% oil, 23% NGLs and 49% natural gas, roughly in line with the previous quarters. For earnings, we had a net loss of $1.5 million or $0.06 per share in the second quarter, which included an impact of $7.8 million noncash charge related to the company's commodity derivatives contracts. We generated adjusted EBITDA of $27 million in the second quarter, down slightly from $29.7 million in the first quarter. This decrease from the first quarter was primarily due to do the company's increased workover activity as part of its base production optimization program. Turning to expenses. Second quarter adjusted cash operating expenses, which include LOE, production taxes and cash G&A, but exclude restructuring and advisory costs and employee severance costs, totaled $23.1 million or $13.05 per BOE, up from $21.4 million or $12.37 per BOE in the first quarter of 2018. The increased quarter-over-quarter was primarily due to the company's increased workover activity during the second quarter. Our lease operating and workover expenses for the second quarter combined totaled $17 million or $9.57 per BOE, up from $14 million -- $14.8 million or $8.56…

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

Thank you, David. I'll begin with a discussion of the company's operational highlights, and follow up with earnings and costs for the second quarter. I'll then provide an update on our capital investments and finish up with a discussion on our balance sheet and 2018 guidance. As David mentioned, we achieved average daily production of 20,584 BOE per day during the second quarter of 2018, up from 19,235 BOE per day in the first quarter. We grew our production on our Mississippian Lime properties to 17,202 BOE per day, an 11% increase from 15,518 BOE per day in the first quarter of 2018. The production mix from our Mississippian Lime assets during the second quarter was 28% oil, 23% NGLs and 49% natural gas, roughly in line with the previous quarters. For earnings, we had a net loss of $1.5 million or $0.06 per share in the second quarter, which included an impact of $7.8 million noncash charge related to the company's commodity derivatives contracts. We generated adjusted EBITDA of $27 million in the second quarter, down slightly from $29.7 million in the first quarter. This decrease from the first quarter was primarily due to do the company's increased workover activity as part of its base production optimization program. Turning to expenses. Second quarter adjusted cash operating expenses, which include LOE, production taxes and cash G&A, but exclude restructuring and advisory costs and employee severance costs, totaled $23.1 million or $13.05 per BOE, up from $21.4 million or $12.37 per BOE in the first quarter of 2018. The increased quarter-over-quarter was primarily due to the company's increased workover activity during the second quarter. Our lease operating and workover expenses for the second quarter combined totaled $17 million or $9.57 per BOE, up from $14 million -- $14.8 million or $8.56…

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

Thank you, David. I'll begin with a discussion of the company's operational highlights, and follow up with earnings and costs for the second quarter. I'll then provide an update on our capital investments and finish up with a discussion on our balance sheet and 2018 guidance. As David mentioned, we achieved average daily production of 20,584 BOE per day during the second quarter of 2018, up from 19,235 BOE per day in the first quarter. We grew our production on our Mississippian Lime properties to 17,202 BOE per day, an 11% increase from 15,518 BOE per day in the first quarter of 2018. The production mix from our Mississippian Lime assets during the second quarter was 28% oil, 23% NGLs and 49% natural gas, roughly in line with the previous quarters. For earnings, we had a net loss of $1.5 million or $0.06 per share in the second quarter, which included an impact of $7.8 million noncash charge related to the company's commodity derivatives contracts. We generated adjusted EBITDA of $27 million in the second quarter, down slightly from $29.7 million in the first quarter. This decrease from the first quarter was primarily due to do the company's increased workover activity as part of its base production optimization program. Turning to expenses. Second quarter adjusted cash operating expenses, which include LOE, production taxes and cash G&A, but exclude restructuring and advisory costs and employee severance costs, totaled $23.1 million or $13.05 per BOE, up from $21.4 million or $12.37 per BOE in the first quarter of 2018. The increased quarter-over-quarter was primarily due to the company's increased workover activity during the second quarter. Our lease operating and workover expenses for the second quarter combined totaled $17 million or $9.57 per BOE, up from $14 million -- $14.8 million or $8.56…

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

Operator, we are now ready for questions.

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

I have a group of questions. First of all, where do you see the biggest opportunity for expense reduction going forward?

Bill, this is David. I think the biggest that we're going to see in the second half compared to the first half of the year is in the expense workovers. The workovers that we conducted during the first half of the year were a combination of capital workovers and expense workovers. And like I mentioned, we're running 10 rigs. Those -- both of those categories are elevated with good success on the economic outcome. And what we forecast for the rest of the year is probably about a 2-workover rig program to maintain production, which is far down from the first half of the year. So I think we're going to see that, the biggest component of kind of second half over first half expense reduction. And then I think the other categories are -- we've actually kind of achieved a lot of the expense reductions. And I think what you're going to see is those run rates, for the rest of the year, pointing to that kind of the reduced expense rates. So G&A would be a good example of that. We've seen it come down from the first of the year when we made the organizational changes. And as that runs out, that run rate will kind of show lower kind of quarter-over-quarter results.

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

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

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

Yes. So I guess, what I would call it was really kind of just an increased focus on our part to look at the overall procedures on base production. So we've kind of attacked all different areas of the company over the last, call it, 9 months. And the quickest returns that you get in, in E&P world really are around your base production. So we just had a really increased focus. I think that there was plenty being done before in terms of base maintenance. I think the -- probably, the newer -- there were 2 newer things that we brought to the equation. One was really just changing the procedure on, call it, simply pump replacements, with the methodology to try to extend run times. And like I mentioned earlier, that plays out a little -- over a little bit longer time. But that's a gift that kind of keeps on giving. If we can get the reduced failure rates, we'll keep production up and expenses down. I think the second piece was something that hadn't been done much before. And we -- which was doing the restimulation efforts, cleanout of the laterals and restimulations. And it was something that we assumed or expected would enhance production, and I think we were really pleasantly surprised. So I think what we've done with -- I mean, the 180 workovers we did was a bit slug. We've operated approximately 400 wells. So that's a pretty big percentage of our opportunity set that we went through. We're continuing to look at further workover opportunities. But as you can imagine, we kind of hit the most attractive first, and then that kind of declined. So we're being much more focused on what we want to attack. So I think that -- I don't anticipate that we'll have the same level of workovers as we look forward. The goal really is to have lower workovers because we have longer run times. But now we're into the phase of kind of evaluating our producing. We have wells that have been online and continuing to perform to see if there's opportunities to go back and enhance production on those. So I think that's probably the next phase.

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

Yes, I think we have. I mean, we have identified some wells to go and see if we can enhance with restimulations. We've done a little bit of that already. So I would call that kind of underway. I think it's probably a program of size that's more aimed at trying to decrease decline rate of your base production. I don't think it's going to be kind of dramatic in terms of the number of opportunities. But certainly, we hope we get some significant cases of individual well enhancement. And we'll communicate that as we move forward.

That's helpful, David. And if you don't object, I would like to ask a few more questions. First of all, relative to your 2-mile laterals that you're endeavoring upon, how many frac stages do you have per mile? And how does that compare to the 1-mile laterals? A - David Sambrooks Did you -- Bill, it cut out just a little bit. Did you say stages per 2-mile?

Yes. Frac stages per mile on the 2-mile, and then how does that compare to the original 1-mile laterals.

Okay, yes. I would say it's with still a little bit of discovery on our part on optimization around the 2-mile laterals. Historically, our 1-mile laterals, the most common completion that we've done is a 17-stage completion. So on one of the 2-mile laterals, we basically just doubled that. So we were at 34 stages. We are testing lower-stage counts on 1-mile laterals right now. And one of the 2-mile laterals, we pumped a completion that was 10 stages per 1-mile or a 20-stage completion. So I think what we're going to be -- we'll be seeing from the additional 1-mile wells that we're doing now through the end of the year and the 2-mile wells, there'll probably be some experimentation around the -- kind of the optimum frac size on those. So we're still kind of in early day -- I mean, with a lot of knowledge from the 1-miles, but we're still evaluating on optimization on the 2-mile laterals.

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

Well, we don't. Yes, we don't give out quarterly guidance. So we're not going to give you a specific number there. But I think you're -- yes. I mean, I think your points are valid. The results from the workover program were pretty much largely seen in the second quarter, but as you said, more towards the end of that and the first of that. So I think it's just going to be a combination of the natural kind of reservoir effects of base decline versus kind of a full run rate on the enhanced workover wells, and then adding in the drill and complete. So I mean, we feel comfortable with the guidance. We saw -- we tightened up the range on that from 16,500 to 17,500. We feel really good about achieving that for full year. So obviously, you can start kind of deducting quarters and calculating potentials for the remainders. But I think we're positive about where production is in our guidance. A - William McDougall Absolutely. So I am going to push back just a little tiny bit. What did you exit the second quarter for your run rate? Is that something you're willing to share? A – David Sambrooks: Well, currently -- yes, correct. I'll just say, our current rate right now is about 17,800 BOE per day.

And we have the next question from the line of Amer Tiwana. Q – Unidentified Analyst: A couple of questions. First, any activity in the Northwest STACK that you can comment on? And two, we haven't heard much from you on that front. Is that because you're waiting for the outcome on the SandRidge process, and you'll make a determination after that? And just generally speaking, what is your strategy with respect to that basin?

Right. Yes, I'd say we don't really have much to report on that right now. It's the same -- we're kind of in the same spot we were last quarter, where our strategy with that is to watch the activity around us. There's a lot going on in the area. So every quarter, we kind of see something additional. I reviewed kind of the technical basis across those properties last quarter in some detail. So we continue to review the opportunity and watch as kind of more wells come on the map. And I can't comment specifically about SandRidge. But as you know, and we've announced or acknowledged, we're in that process. And so they have some complementary assets in that same area. So I would say we're continuing to follow the play pretty closely, but do not have any immediate plans to capitalize or to drill any wells there right now, but still kind of wait and see mode. Q – Unidentified Analyst: Sure. And my next question is, in terms of the gas price realizations, and, obviously, that's going to be a significant negative here in terms of the basis, what are you guys are seeing? Is there anything in particular that's hitting you hard there? Or -- and going forward, what are the positives or negatives that we can sort of look to? A - Jason McGlynn Yes. Thanks, Amer. I'll take that question. The biggest piece of it is we're just experiencing the PPL blowout from NYMEX HENRY HUB that happened starting at the end of January that kind of persisted through the first half of the year. The good news is that basis diff has contracted over the last month or so, and not back to the historical norms, but definitely a significant contraction from…

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

Well, thanks, everybody, for your attention today. You know where we are. If you have any further questions, give us a call. We look forward to talking to you soon. Thank you very much. Operator hank you, presenters, and thank you, ladies and gentlemen. This concludes today's conference call. We appreciate your participation. You may now disconnect.++