Good day, ladies and gentlemen, and welcome to the SM Energy Second Quarter 2016 Conference Call. At this time, all participants are in a listen-only mode. Later we will conduct a question-and-answer session, and instructions will follow at that time. As a reminder, this call is being recorded. I would now like to introduce your host for today's conference, Mr. David Copeland, General Counsel. You may begin, sir. David W. Copeland - Secretary, Executive VP & General Counsel: Thank you, Ranya. Good morning to all joining us by telephone and online for SM Energy Company's second quarter 2016 earnings conference call and operations update. Before we start, I'd like to advise you that we will be making forward-looking statements during this call about our plans, expectations and assumptions regarding our future performance. These statements involve risks that may cause our actual results to differ materially from the results expressed or implied in our forward-looking statements. For a discussion of these risks, you should refer to the cautionary information about forward-looking statements in our press release from yesterday afternoon, the presentation posted to our website for this call, and the Risk Factors section of our Form 10-K that was filed earlier this year and our Form 10-Q filed earlier this morning. c We will also discuss certain non-GAAP financial measures that we believe are useful in evaluating our performance. Reconciliation of those measures to the most directly comparable GAAP measures and other information about these non-GAAP metrics are described in our earnings press release from yesterday. Other company officials on the call this morning are Jay Ottoson, President and Chief Executive Officer; Wade Pursell, Executive Vice President and Chief Financial Officer; Herb Vogel, Executive Vice President-Operations; and Jennifer Samuels, Senior Director-Investor Relations. I'll now turn the call over to Jay. Javan…

Thank you, Wade. Just to reiterate, outstanding execution grows bottom line results. Well performance drove production in the quarter, specifically from the Permian and the Eagle Ford, which I will talk about in a minute. And our efforts to realize efficiencies both on the capital side and operations side led to the lower second quarter costs and the ability at the lower guidance for both LOE and capital spend going forward. So on managing operating costs in F&D there are key goals and incentives for our employees in 2016. On the operating cost side, we have been successful through several initiatives. First, we are rebidding nearly all activity down the chain and across the portfolio very frequently. Second, we are fully utilizing costs and revenue data now accessible as the result of last year's new ERP system implementation. Through Big Data management, utilizing nearly real-time data available through this new system and modern digitalization program, we now have the ability to quickly identify cost drivers and can prioritize those areas where we can have the most impact. Specifically, nearly in real time we can now attribute costs and net back revenues from every barrel of oil and Mcf of gas to individual wells and assess the cash flow from individual wells. On a very frequent basis, we can now recognize any well that isn't profitable, understand why, quickly address the issue, and optimize our cash flows down to the well level. We have all hands on deck from the IT department through every part of the organization to get this system in place, and now we are seeing dividends that we hadn't originally anticipated. Third, we are looking at systemic improvements, and I'll just give a few examples. Managing our produced water, which is a key contributor to drive LOE…

Thank you. And our first question comes from the line of Kyle Rhodes from RBC Capital Markets. Your line is now open.

Hey, morning, guys. David W. Copeland - Secretary, Executive VP & General Counsel: Good morning.

Permian obviously delivered a great quarter here. I was hoping you could update us on expected completion counts there for 3Q and 4Q 2016 and how you see that production growth trajectory continuing for the back half of the year?

Okay. We're just sticking straight to plan. This is Herb. So there's really no change from what we've talked about for the year, around 40-some completions in the Eagle Ford, just over 50 in the Bakken, and about 20 to 24 in the Permian by the end of the year. So there's really no change in our plan. We're just plowing along on that.

Okay. Got it. And then maybe just touch on any downspacing pilots or delineation work in the Wolfcamp A or D that's maybe on the docket before year-end 2016 here?

So we've got – we're basically sticking to the program. We haven't made any changes. So in some cases we've tightened up the spacing, and as we get results from those wells we'll be sharing them. We don't have any new results to report on Wolfcamp A or any others, other than the individual wells we've talked about previously.

Got it. Is there – are there any plans for the back half of the year maybe, I guess I was trying to get at?

Yes. So we're basically just straight on the program where we plan to drill wells. We're really not making any change there.

Got it. Okay. I guess maybe just touching on service costs real quick, I know in some of the service earnings calls, we've heard some of the bigger providers saying pricing discounts are coming to an end here in short order. Just it sounds like you guys certainly didn't see that in 2Q. Just curious what you're seeing out there on a leading edge basis? And I'll leave it there. Thanks.

Okay. Yeah. I would say as we rebid activity and it's a little bit base end dependent, so in some areas we're still seeing, as we rebid work, that they're coming down. And in other areas, we see they're flat and not really changing much. And then there are some specific items where we see slight increases on some tangibles but they're relatively minor. It was really overall down for 2Q, and we've locked in stuff for 3Q. So we don't really see a change there. I hope that gives the color you're looking for.

Thanks, guys.

And our next question comes from the line of Kevin Smith from Raymond James. Your line is now open. Kevin C. Smith - Raymond James & Associates, Inc.: Hi. Good morning and congrats on a great quarter. Appreciate all the color on the Eagle Ford production. Clearly, the Galvan Ranch well results were very strong, but I'm just trying to make certain I understand. Was the production beat solely due to higher IP rates, or was there some combination of better IP rates, lower base decline, or possibly changing kind of your choke plans?

Okay. I think I'm following your question. So when we forecast production for a year, we have certain declines baked in. And as we're enhancing our completions, we don't have a real good ability to say exactly how well we will do. So we'll decline the wells away. Then when they come on really strong and they come on, we can see it with really high pressures, and then as we start producing those pressures decline less rapidly than they would have previously. And so we're able to open up the choke and the rate is maintained. And we found that we're getting five, six months type of plateau levels on our wells. So when we got into 2Q, we had those wells and those figures. Five of them started last year and then six of them started during the quarter. That's really where the overachievement came from. So it's not so much the base declines on the other wells, but it's not getting on decline as fast on wells that came on last year and the new ones this year. Kevin C. Smith - Raymond James & Associates, Inc.: Okay.

Does that makes sense? Kevin C. Smith - Raymond James & Associates, Inc.: Sorry. Go ahead.

Does that makes sense? Kevin C. Smith - Raymond James & Associates, Inc.: Yeah. So basically, if I'm correct or just to kind of restate what you said, it's just production hasn't declined from wells that you've put on over the last six months.

Yeah. Kevin C. Smith - Raymond James & Associates, Inc.: and less.

Through choke management. Right. Javan D. Ottoson - President, Chief Executive Officer & Director: And I'll just chime in there, too. I think it's important that as you look at the press release, we did experience some delays in the Bakken on the number of our completions which hurt us on our oil rate, but we offset that – basically got right back to our target, numbers on oil because our Permian wells have been outperforming so much, again, relative to our expectations. Kevin C. Smith - Raymond James & Associates, Inc.: Understood. And then lastly and I'll jump back in the queue, as you think about your second half drilling plans at Sweetie Peck, is there any plans to drill any more Middle Spraberry or is everything going to be focused on Lower Spraberry?

No. There's no more plans to drill the Middle Spraberry. We locked in our program which is really Wolfcamp B and Lower Spraberry-focused because we knew what those – what the expectations were for those and we – basically we're really working to optimize our programs. And that's why we're getting the cost reductions we're seeing, the capital reductions we're seeing. So no, we're not... Kevin C. Smith - Raymond James & Associates, Inc.: Okay.

... going to drill another middle Spraberry well this year. Kevin C. Smith - Raymond James & Associates, Inc.: Okay. Thank you. And once, again, great quarter. Javan D. Ottoson - President, Chief Executive Officer & Director: Thank you.

Thanks.

And our next question comes from the line of Chris Stevens from KeyBanc. Your line is now open.

Hey, good morning, guys. Great quarter. I just wanted to touch on M&A a little bit. What's the appetite at this point to go out there and maybe make an acquisition, and any thoughts on sort of size of what you'd be interested in looking at? And then if you could possibly comment on what your thoughts are on the valuation that we've seen, maybe out in the Permian, whether it's Delaware or Midland? Javan D. Ottoson - President, Chief Executive Officer & Director: Okay. That's a pretty broad question. This is Javan. In general, we're obviously very interested in continuing to improve the quality of our assets. The types of acquisitions we look at and are interested in are ones which will perform as well as or better than our best assets. And we look at every deal that comes up in our core areas. Certainly the Permian Basin is an area of great interest to us, and we look at everything that's come up. I appreciate the fact that when you look at the headline numbers on Permian deals they seem expensive, but I think a lot of the reason for that is that people are simply proving up more and more intervals there. If you actually look at it on a per-interval basis, I still think the numbers are not unreasonable. And we're continuing to look at those and I wouldn't be surprised at all. Certainly, we're going to focus on that. I don't know that there's a size limit that we necessarily look at there. There's a lot of creative ways to do these deals, and I think you have to keep your mind open a little bit to that as we move forward.

Okay. Understood. And I guess maybe if I could just kind of touch a little bit on the outlook here as we head into next year? Any sort of initial indication of what the rig count might look like between your core assets, and is there the potential for a third rig in the Permian at some point? Javan D. Ottoson - President, Chief Executive Officer & Director: We don't have a defined plan yet. As I said, I think at capital levels similar to this year, we believe that in a $50 and $3 world we can grow within our cash flows next year. We have several different scenarios we've looked at between the Eagle Ford and the Permian, moving rigs around that can get us to that. I don't have exact rig counts to give you yet.

Okay. Thanks a lot. Great quarter. Javan D. Ottoson - President, Chief Executive Officer & Director: Thank you.

And I'm not showing any further questions. I would now like to turn the call back to Mr. Jay Ottoson, President and CEO, for any further remarks. Javan D. Ottoson - President, Chief Executive Officer & Director: Well, I think it's clear everybody's out looking at inventory numbers right now, and I haven't seen them yet. I'll look forward to that. But thank you so much today for your questions and for your interest in our company, and we look forward to talking with you again next quarter. Thanks.

Ladies and gentlemen, thank you for participating in today's conference. This concludes today's program. You may all disconnect. Everyone have a wonderful day.