Ladies and gentlemen, thank you for standing by. Welcome to the W&T Offshore Fourth Quarter and Full Year 2018 Conference Call. [Operator Instructions] I would now like to turn the conference over to Al Petrie, Investor Relations Coordinator.

Thank you, Pia, and on behalf of the management team, I would like to welcome all of you to today's conference call to review W&T Offshore's Fourth Quarter and Full Year 2018 Financial and Operational Results. Before we begin, I'd like to remind you that our comments may include forward-looking statements, which should be noted that a variety of factors could cause W&T's actual results to differ materially from the anticipated results or expectation expressed in these forward-looking statements. Today's call may also contain certain non-GAAP financial measures. Please refer to the fourth quarter 2018 financial and operational results announcement we released yesterday for a disclosure on forward-looking statements and reconciliations to non-GAAP measures. At this time, I would like to turn the call over to Tracy Krohn, W&T's Chairman and CEO.

Thanks, Al. Good morning, everyone, and thanks for joining us for our fourth quarter 2018 conference call. So with me today are David Bump, our Executive VP of Drilling, Completions and Facilities; William Williford, our Executive VP of General Manager, Gulf of Mexico; Janet Yang, our Executive VP and Chief Financial Officer; Steve Schroeder, our Chief Technical Officer; and Jim Hersch, our VP Geosciences. They are all going to be available to answer questions later on during the call. So over the past 35 years, we have many success significant achievements and milestones and I'm proud of how well we executed on our strategy, achieved those goals that we set for ourselves in 2018. This past year, we meaningfully grew reserves, thanks in large part to the robust drilling results we've had as well as through positive revisions for well performance that continues to exceed forecasted expectations. Our strong, stable production base generated adjusted EBITDA of $344 million in 2018, providing us with the cash needed to fund our capital program and reduce debt to bolster our financial position. You can spell that out as cash flow positive, if you wish. We've been looking to simplify our capital structure and we're able to accomplish that in October by completely refinancing our debt, reducing our total debt principal by over $200 million and establishing a larger revolving credit facility that further extends out all of our maturities. Finally, we also entered into a drilling joint venture that allows us to accelerate the development of our high return inventory, lower our overall risk and maximize financial flexibility. This will enable us to achieve really and pursue additional accretive acquisition similar to the Heidelberg field acquisition that we completed in 2018. So before we review fourth quarter results and provide an operations update,…

[Operator Instructions] And the first question will come from John Aschenbeck with Seaport Global.

Good morning, Tracy. Thank you for taking my questions.

Good morning, John. Thanks.

So for my first one, I wanted to follow up on your Q1 production guidance, which is lower than the full year. And I was hoping you could walk us through some of the factors that are weighing down Q1 relative to the rest of the year. Thanks.

Barry, a number of -- I brought William Williford along with us. I’m letting run that through for you.

Where we are right now, in Q1, we have talked about the Mahogany field right now, we doing the ramp up on production. We do have a planned downtime outage in that field due turnaround preventing downtime throughout the rest of the year. Additional, we have downtime in Main Pass 698, 72, which is our big field. That should be up between the next, I guess, couple of days, currently down right now.

It’s all maintenance issues.

Yes, so that's a key portion of the downtime that we see as far as the fourth -- first quarter. 2019, which is consistent ramp up as we bring additional wells online and maintain on rest of our fields rest of the quarters.

Okay, great. And that's helpful. Appreciated. And then for my second one, more of a higher-level question on M&A. I'm hoping you can entertain me here. But just as a look at W&T out into the near future and call it a year or 2 from now what is the company look like? And how much larger is it from the size that it is today?

That's just a little minor question, there, John. Okay, so yes, we do expect to see M&A. Yes, we expect to increase the size of the company. Exactly how much that will be, I'm ready to forecast. My goal is to double again in the next 5 years. I think that's fairly conservative.

Okay. Perfect. That’s actually -- exactly what I was looking for. I appreciate the time and thanks for taking my questions.

Thank you, sir.

[Operator Instructions] And the next question will be from Jacob Gomolinski with Morgan Stanley.

Hey, good morning. And thanks for taking the questions.

Sure Jacob.

It looks that you spent I think you said about $106 million on CapEx in 2018 and production side of I guess, production declined around 5%; total production, 9%. And then we’re talking about $120 million in 2019 with 6% liquids growth and 2 to 3% overall. Can you help us understand maybe what make you driving that rate of change sort of given the $14 million delta in CapEx but I guess a pretty meaningful change in production?

Yes, I think that's pretty easy to do. We have x number of dollars coming in, we have x number of dollars going out, we're trying to maintain cash flow positivity like that’s important to us so that we can take advantage of some of the other acquisitions that we see coming up. So we want to save our dry powder as much as we can. We do see quite a bit of activity on the M&A side. I think that’s important for us to save our dollars in that direction as well. The production that we have I think is relatively conservative, it's got some downtime or what not for hurricanes and repairs that we've seen over the last several years. So I think we're taking a fairly conservative approach year.

Okay. And apologize if I missed this, but does that $120 million, how much of that will go to the JV? And does that include -- does that $120 million include JV capital contributions from third parties or is that just your outlet?

No. The $120 million is the dollars that go into the W&T and somewhat into Manja. But I don't have the exact number on the Manja portion of it. It's minor in comparison to the rest of it as W&T. W&T owns about 20% of the Manja drilling joint venture.

On the capital.

On the capital side, that's right.

Right, but 120 is just your capital, not JV partner capital or any JV capital contributions?

Yes, that's correct.

Okay, And then just a last question. It looks like operating costs are a bit higher in 2019 versus 2018 in about $1.50 over the first 3 quarters of 2018. I know you mentioned some work over expenses in Q4. Is anything driving that increase in production caused in 2019 versus--?

I’m sorry.

Go ahead, sir.

I'm sorry. Yes, one of the things driving that, Jacob, is Heidelberg. We made that acquisition last year. Its Deepwater facility has little higher operating costs. And then we do have some work related to maintenance on a couple of other platforms that we mentioned earlier, mainly Mahogany, so will be -- we'll have a little bit downtime as a result of that and little higher lease operating expenses result of that. These are planned -- this is planned work for maintenance for the structure. So you do see that reflected prices however, are not in cost on a normalized basis are not going up with regard to this basin as opposed to other basins.

Okay. That’s great. Thanks very much. Appreciated.

Thank you, sir.

And at this time, there are no further questions. At this time, I would like to turn the conference back over to Al for any closing comments.

Tracy, any closing comments?

No, I have nothing else. Hopefully, we'll have something for you in a not too distant future. I think you'll all be impressed. Thank you very much.

Ladies and gentlemen, thank you for participating in today's conference call. You may now disconnect.