Greetings, and welcome to Gulfport's Second Quarter 2020 Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded. I would now like to turn the conference over to your host, Jessica Antle.

Thank you, and good morning. Welcome to Gulfport Energy Corporation's second quarter 2020 earnings conference call. I am Jessica Antle, the Director of Investor Relations. Speakers on today's call include David Wood, Chief Executive Officer and President; and Quentin Hicks, Executive Vice President and Chief Financial Officer. I would like to remind everybody that during this conference call, the participants may make certain forward-looking statements relating to the company's financial condition, results of operations, plans, objectives, future performance and business. We caution you that the actual results could differ materially from those that are indicated in these forward-looking statements due to a variety of factors. Information concerning these factors can be found in the company's filings with the SEC. In addition, we may make reference to non-GAAP measures. Reconciliations to the comparable GAAP measures will be posted on our website. An updated Gulfport presentation was posted yesterday evening to our website in conjunction with the earnings announcement. Please review at your leisure. At this time, I would like to turn the call over to David Wood, CEO of Gulfport Energy.

Thank you, Jessica. Welcome everyone and thank you all for joining us this morning. As we closed a very difficult quarter for our industry, I want to thank the employees of Gulfport for their focus, dedication and perseverance during these unique times. The global pandemic and the resulting collapse in demand have upended many businesses. As economies around the world emerged from lockdowns, the path forward remains uncertain. The safety of our employee and contractors remains a top priority and we continue to take the appropriate measures to provide a safe working environment for everyone. I field staff continues to do a terrific job ensuring that our operations carry on without significant disruption, while most importantly, maintaining safe practices. Overall, I am proud of our team’s ability to stay focused during this extraordinary time while continuing to execute on the key strategic initiatives we laid out for 2020. Although many lockdowns have been easing, the situation remains fluid and visibility on the world’s economic outlook remains extremely limited, given the unpredictability regarding the pace of recovery for the global economy, and specifically energy land, oil and gas producer activity in the second half of the year is uncertain. And we see this continue to weigh across all energy markets. On the supply side, we witnessed a dramatic reduction in capital spending from our oil-weighted peers early in the year. However, with oil now having just crossed near $40 a barrel, we have started to see some activity return and with it the associated gas production come back to market. At the same time, we are experiencing 25-year pricing lows on natural gas. Several gas producers, including Gulfport, have curtailed or deferred near-term production and made interpreting the current natural gas supply and production declines extremely difficult. Lastly, that ever evolving…

Thank you, Dave, and good morning, everyone. As Dave indicated, we reaffirm our full year 2020 CapEx guidance of $285 million to $310 million and expect to come in at the low end of that range. During the second quarter, Gulfport incurred $54 million in D&C and land CapEx. Roughly 65% of our anticipated 2020 capital budget had been incurred as of June 30. Our 2020 capital spending is coming in well below prior expectations due to efficient drilling and completion operation and some service cost reductions. During the second quarter, production averaged 1.03 billion cubic feet of gas equivalent per day, composed of 90% natural gas, 7% natural gas liquids and 3% oil. Looking to the third quarter, as Dave mentioned, we plan to continue our curtailment strategy, and we forecast our third quarter production will average 980 million to 1.03 billion cubic feet equivalent per day. During the second quarter, our realized natural gas price before the effective hedges and including transportation costs settled at approximately $0.70 per Mcf below NYMEX prices, which was the low end of our guidance range of $0.70 to $0.80 per Mcf. As previously discussed, our 2020 guidance includes expected firm transport fees incurred during periods when our production falls below our firm transport commitments. We continue to work hard at reducing near-term firm transport commitments, but are not reflecting these opportunities in our current guidance and reaffirm our full year basis differential guidance of $0.70 to $0.80 per Mcf. During the second quarter, before the effect of hedges, our realized oil price came in at $7.71 below WTI. We saw significant pricing swings in WTI during the quarter, and our realized oil differentials were negatively impacted by this volatility. Looking at the forward curve, we do not anticipate the same kind of…

Thank you, Quentin. In closing, I want to reiterate that we are laser-focused on controlling what is within our control: making the right steps to reduce costs, enhance operational efficiency and improve the company's financial condition. The macro energy environment is historically challenging and unpredictable, and we are doing everything in our power to mitigate the effect on our business. We will continue to take appropriate steps to strengthen the company's financial position and work to improve our balance sheet in a way that preserves value for all our stakeholders. This concludes our prepared remarks. Thank you again for joining us for our call today.

This concludes today's conference. You may disconnect your lines at this time. Thank you for your participation.