Ladies and gentlemen, thank you for standing by and welcome to the Q4 2022 SandRidge Energy Conference Call. [Operator Instructions] I would now like to turn the call over to Scott Prestridge, Director of Finance and Investor Relations. Please go ahead.

Thank you and welcome, everyone. With me today are Grayson Pranin, our CEO and COO; Salah Gamoudi, our CFO and CAO; as well as Dean Parrish, our SVP of Operations. We would like to remind you that today's 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. We may also refer to adjusted EBITDA and adjusted G&A and other non-GAAP financial measures. Reconciliations of these measures can be found on our website. With that, I'll turn the call over to Grayson.

Thank you and good morning. I'm proud to report on another strong quarter and year results for SandRidge and that the company's cost focus and efficient activity with high-graded drilling in the core of the Northwest STACK as well as our well reactivation program continue to add incremental economic production with strong free cash flow contribution from our producing assets this past year and projected in 2023. Before expanding on this, Salah will touch on a few highlights.

Thank you, Grayson. Production remained relatively consistent throughout the year, averaging 17.7 MBoe per day in 2022. This steady production profile was driven by the company's stable, low-decline production base and 2022 drilling completion and workover programs. Net cash, including restricted cash, increased to approximately $257 million, which represents nearly $7 per share of our common stock issued and outstanding as of December 31, 2022. The company has no term debt or revolving debt obligations as of December 31, 2022, and continues to live within cash flow, funding all of its capital expenditures with free cash flow and cash held on the balance sheet. Over the quarter, the company generated adjusted EBITDA of approximately $43 million and approximately $191 million for the year. As we have pointed out in the past, our adjusted EBITDA is a unique metric for SandRidge due to us having no i and very little t given that we have no debt and a substantial NOL position that shields our cash flows from federal taxes. Commodity price realizations in the fourth quarter, before considering the impact of hedges, were $79.10 per barrel and $4.40 per Mcf for oil and natural gas, and NGL realizations were $25.73 per barrel. The company maintains its commitment to protecting shareholder capital invested in its development program with commodity derivative contracts for natural gas. The commodity derivative contracts have an average strike price of $8.39 per MMBtu with a mark-to-market asset value of $4.4 million as of December 31, 2022. As alluded to earlier, we have maintained our large federal NOL position, which is estimated to be approximately $1.6 billion as of the end of last year. Our NOL position has and will continue to allow us to shield our cash flows from federal income taxes. Our commitment to cost discipline has continued to be impactful. And despite increased activity, adjusted G&A for the quarter was approximately $2 million and approximately $8 million or $1.22 per Boe for the year, which was below the low point of guidance. We have also held LOE and expense workovers to approximately $11 million for the quarter and approximately $41 million or $6.39 per Boe for the year, which was below the midpoint of guidance. This level of expense is partially driven by an increase in workover activity associated with our well reactivation program. We believe we compare favorably with our peers in regards to G&A and LOE on both an absolute and a per Boe basis. We continue to generate net income for our shareholders. During the quarter, we earned net income of $105.2 million or $2.86 per share and cash provided by operating activities of $30.1 million. Before shifting to our outlook, we should note that our earnings release and 10-K provide further detail on our financial and operational performance during the quarters.

Thank you, Salah. Thought it would be helpful to walk through some of the company's highlights, management strategy and other business details. As I mentioned previously, we are pleased with the results from last year, capitalizing on commodity price dynamics with high rate of return drilling on the Northwest STACK, continued well reactivations and further strengthened cash flow from our producing properties in Mid-Con. We're able to keep production from our Mid-Con assets consistent for the year at 17.7 MBoe per day with a continued benefit from approximately 180 wells reactivated since 2021, while increasing oil volumes more than 25% from the first to second half of the year, aided by the oilier content of our new Northwest STACK wells. In addition, we have converted artificial lift systems of 28 wells to their long-term systems, which will aid in optimizing lifting efficiency and lower point forward costs for this well set. The systems we have and will be installing are tailored to the wells' current fluid production and will reduce the electrical demand from the current artificial lift systems and is key to decreasing utility costs. These types of investments, optimizing our wells production profile and cost focus, have contributed to the flattening expected asset-level decline of our already producing assets to an average of approximately 8% over the next 10 years. We successfully drilled 8 wells and are now producing 6 wells from last year's capital program, which have all targeted the Meramec in the core of the Northwest STACK play, while 7 and 8 were recently completed and are anticipated to have first production this month. And operational highlights, the recent [lean] wells completed from a dual pad averaged over 1,000 Boe per day in the first 90 days. Also, the first well turned in-line in the program,…

Thank you, ladies and gentlemen. This does conclude today's call. Thank you for your participation. You may now disconnect.