Good day. My name is Karen, and I will be your conference operator today. At this time, I'd like to welcome everyone to the Q3 2023 SandRidge Energy Conference Call. [Operator Instructions] I'd now like to turn the call over to Scott Prestridge, Senior VP of Finance and Strategy.

Thank you, and welcome, everyone. With me today are Grayson Pranin, our CEO; Brandon Brown, our CFO; and Dean Parrish, our SVP of Operations. We'd 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 pleased to report on another consistent quarter of results and that the company's activity continues to translate to meaningful free cash flow from our producing assets year-to-date. Before expanding on this, Brandon will touch on a few highlights.

Thank you, Grayson. Production for the quarter averaged 17.2 MBoe per day and oil production increased approximately 20% from the first 9 months of 2023 compared to the same period in 2022, driven by the higher oil content from our Northwest Stack wells. The company generated adjusted EBITDA of nearly $23 million for the quarter and $74 million for the first 9 months of 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 income taxes. On the I portion, we, in fact, generated approximately $2.5 million of interest income during the quarter and approximately $7.8 million for the first 9 months of the year from cash held in the diversity of high-yield deposit accounts. Net cash, including restricted cash totaled $232 million, which represents over $6 per share of our common stock issued and outstanding as of September 30, 2023. The company has no term debt of revolving debt obligations as of September 30, 2023, and continues to live within cash flow, funding all its capital expenditures with cash flow from operations and cash held on the balance sheet. Commodity price realizations before considering the impact of hedges were $73.88 per barrel or $1.78 per Mcf of gas and $20.77 per barrel of NGLs. For the first 9 months of the year, while oil and natural gas market benchmark prices for WTI and Henry Hub were lower over the first half of the year, the company has maintained healthy commodity price realizations year-to-date and is positioned to benefit from increases in recent strip prices. As alluded to earlier, we have maintained our large federal NOL position, which is estimated to be approximately $1.6 billion at the end of the quarter. 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 with adjusted G&A for the quarter of approximately $2.1 million or $1.35 per Boe. We continue to generate net income for our shareholders. During the quarter, we earned net income of $18.7 million or $0.51 per basic share to net cash provided by operating activities of nearly $26 million. This is all culminated in the company producing approximately $64 million in free cash flow during the first 9 months of 2023, which represents a conversion rate of approximately 86% relative to adjusted EBITDA, or just over $1.70 per share of common stock outstanding. Before shifting to our outlook, we should note that our earnings release and 10-Q provide further detail on our financial and operational performance during the quarter.

Thank you, Brandon. We thought it would be helpful to walk through some of the company's highlights, management strategy and other business details. As I mentioned previously, this past quarter had positive results with the Northwest Stack wells adding relatively oilier production while converting over 86% of EBITDA to free cash flow during the first 9 months of the year. Production from our Mid-Con assets averaged 17.2 MBoe per day for the quarter, with oil volumes increasing 20% over the first 9 months of the year compared to the same period in 2022, aided by the oilier production content from our Northwest Stack area. The company's largest natural gas purchaser remained in ethane rejection during the quarter, and we anticipate that a majority of our natural gas stream could remain in ethane rejection for the remainder of the year. While this could impact the total volume of NGLs, the remaining volume will be composed of more profitable C3+ components like propane, butane and gasoline on a percentage basis. Likewise, the ethane remaining in our natural gas stream will improve its BTU quality. Let's pause here for a moment to revisit the key highlights of SandRidge. Our asset base is focused on the Mid-Continent region with a primarily PDP well set, which do not require any routine flaring of produced gas. These well-understood assets are most fully held by production with a long history, shallowing and diversified production profile on double-digit reserve life. These assets include more than 1,000 miles each of owned and operated SWD and electric infrastructure over our footprint. This substantial owned and integrated infrastructure provides the company both cost and strategic advantages, bolstering asset operating margin through reduced lifting as well as water handling and disposal costs, and combined with other advantages help derisk individual well profitability…

[Operator Instructions] And our first question comes from the line of [ David Cardell ] with Bluepond Cap.

Yes. Can you talk a little bit about your buyback and whether or not at this level we should expect for you to be active in it?

Sure. Yes. Thank you for the question. It's a great one. I should explain that the intent of the buyback program, which has been authorized up to $75 million, is to opportunistically repurchase shares during market dislocations. It's not really intended to buy back to meet certain amounts or time periods under any conditions. It's really just meant to take advantage of dislocations and specifically dislocations between commodity and market price.

[Operator Instructions] All right, ladies and gentlemen, this concludes today's call. Thank you very much for joining. You may now all disconnect. Have a great rest of the day.