Ladies and gentlemen, thank you for standing by, and welcome to the SandRidge Energy Fourth Quarter and Full Year 2019 Earnings Conference Call. At this time, all participants are in a listen-only mode. [Operator Instructions] I would now like to hand the conference over to your speaker today, Johna Robinson. Please go ahead.

Thank you, and welcome, everyone. With me today are John Suter, Chief Operating Officer and Interim President and Chief Executive Officer; Mike Johnson, Chief Financial Officer; and Lance Galvin, SVP at Corporate Reserves. We would like to remind you that in conjunction with our earnings release and conference call, we have posted slides on our website under the Investor Relations tab that we will be referencing during the call. Today's 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. We will also make reference to adjusted EBITDA, and adjusted G&A, and other non-GAAP financial measures. Reconciliations of these measures can be found on our website. Now, let me turn the call over to John.

Thank you, and good morning. Today, we will review our 2019 business performance along with 2020 outlook and guidance. Before we dig into the numbers, I’d like to look back at changes that occurred in our business environment during 2019, which will provide context for our results. One of the obvious, yet most significant changes occurred due to decreases in our natural gas and NGL pricing. Although oil prices were quite volatile throughout the year, natural gas prices decreased continuously with only minor seasonal improvement. Along with this decline, NGL realization so precipitous decreases. This combination has negatively impacted our business as we’ll describe shortly. Low commodity prices have affected many E&P companies resulting in impairments due to decreased PV10 values from nearly a $10 drop in oil and a $0.50 drop in natural gas. Because of these pricing pressures, drilling schedules for undeveloped reserves have been modified to adapt to new strategies. For SandRidge, these commodity price changes have also resulted in lower cash flow during the second half of last year. Fortunately, we have minimum leverage and debt servicing commitments relative to the industry. The impact from all these factor influences how we formulate our tactics and achieve our stated strategies. Our business strategy to provide shareholder value isn't any different, yet we have shifted our focus to remaining patient during this period of low prices, harvesting cash flow, and maintaining a clean balance sheet through the cycle. We are rigorously seeking opportunities to reduce the cost structure of our business. We have made and continue to make meaningful reductions to our general and administrative costs. We have put plans in motion for 2020 reducing our lease operating expenses by just below 20% from 2019. This all leads to a plan that should generate positive cash flow and maintains optionality for selective capital spending should commodity prices normalize or for A&D as more and more distressed opportunities arise. We do have minor investments that still generate good returns and short payouts at current prices and we will pursue several of these opportunities in 2020. Fortunately, we have no long-term contracts or other commitments that obligate us to a drilling program until we’re ready. We will have more discussions on our outlook and 2020 plans when we discuss guidance in our capital budget plan in a few minutes. We intend to efficiently run the business and deliver on our forecast and guidance numbers as we did during 2019. Additionally, we continue to evaluate merger and acquisition opportunities. We believe [Bid-ask’s] will continue to narrow in this environment. Now with the lower cost structure we believe patience is the best approach in deal evaluation making sure not to over lever our company. Moving now to our financial results, I’ll hand the call over to Mike.

Thank you, John, and good morning to everybody on the call. Although 2019 was a year full of challenges, we successfully met or outperformed on all guided metrics as shown on Slide 5. In particular, we beat full-year guidance on production, capital expenditures, LOE, and adjusted G&A. 2019 was a year of halves. During the first half, we reported generally positive results as commodity prices compared favorably with 2018. As oil, natural gas, and NGL prices consistently declined throughout the second half of the year, we began to see a deterioration in earnings and the impact of non-cash impairments. However, we feel our diverse asset-base served us well in this volatile price environment. To illustrate the impacts of commodity prices on our current asset portfolio, please see Slide 6 and 7 in our deck. Slight 6 illustrates full-year 2019 asset level margins separately for our midcontinent and North Park assets. North Park production is essentially 100% oil. So, this assets gross margin remained attractive and stable in the $30 per BOE range throughout the year. The midcontinent, where 70% of our 2019 revenue was generated was impacted by natural gas prices that decreased throughout the year and NGL realizations that effectively crashed in 2019. As shown on Slide 7 on an annual basis, we realized just over $12 per blended NGL barrel in 2019 where half of what was realized in 2018. This helped drive midcontinent operating margins in 2019, down to approximately $10 per BOE as compared to over $18 per BOE in 2018 and this is further contrasted with the healthier margins and our North Park asset that were three times that of the mid-continent. While we are prepared for a prolonged period of depressed prices, based on forward contracts, we expect natural gas and NGL prices to…

Thanks Mike. So, we’ll now turn to look at operational results for the full year 2019. As Mike mentioned, our performance in each asset improved upon full-year guidance targets for capital expenditures production and lease operating expenses. The company spent 162 million with 106 million for drilling and completion. We drilled 21 new wells and brought 31 wells to sales this year. The majority of our capital expenditures were focused in North Park where we brought 16 of the 30 new wells online. Production for the year was 12 million barrels of oil equivalent, a 3% decline from 2018 as new production in North Park and Northwest stack nearly offset ongoing declines in our Miss Lime producing wells. For the year, we had an average lifting cost of $7.61 per BOE, a slight increase over 2018 driven primarily by higher costs associated with water disposal, related to flush production from new wells. Overall, lease operating expenses were 2% below our midpoint of guidance. Highlights of over 2019 drilling program includes completing the DrillCo in our Northwest STACK asset and finalizing spacing tests within North Park. DrillCo funded wells successfully established a solid production base and deep geological insights into where and how to develop the best rock in our asset. Although we will only have a few wells budgeted, we have an inventory of wells that delivers solid returns when prices improve. In North Park, our spacing tests have been instrumental in establishing a pattern and density for developing the core of the field with 15 wells per-section in two stratigraphic roads. In our Peters well spacing test, we experienced world well communication and pressure decline on the six wells drilled on a 23 wells per section spacing pattern using three stratigraphic roads. We were able to maximize our understanding…

Alright. I want to thank everyone again for joining our call. We’re committed to drive shareholder value from the assets we own and manage. This brings our conference call to an end and we look forward to updating you with our progress next quarter.

This concludes today's conference call. You may no disconnect.