SilverBow Resources, Inc. (NYSE:SBOW) Q2 2023 Earnings Conference Call August 3, 2023 10:00 AM ET

Company Participants

Jeff Magids - VP, Finance and IR

Sean Woolverton - CEO

Chris Abundis - CFO

Steve Adam - Chief Operating Officer

Conference Call Participants

Neal Dingmann - Truist Securities

Charles Meade - Johnson Rice

Donovan Schafer - Northland Capital Markets

Noel Parks - Tuohy Brothers

Geoff Jay - Daniel Energy Partners

Operator

Good morning. My name is David, and I'll be your conference operator today. At this time, I'd like to welcome everyone to the SilverBow Resources Second Quarter 2023 Earnings Conference Call. Today's conference is being recorded. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there'll be a question-and-answer session. [Operator Instructions]

Thank you. Jeff Magids, Vice President of Finance and Investor Relations. You may begin your conference.

Jeff Magids

Thank you, David and good morning everyone. Thank you very much for joining us for our second quarter 2023 conference call. With me on the call today are Sean Woolverton, our CEO; Steve Adam, our COO; and Chris Abundis, our CFO. Yesterday afternoon, we posted a new corporate presentation to our website and will occasionally refer to it during this call. We encourage listeners to download the latest materials.

Please note that we may make references to certain non-GAAP financial measures, which are reconciled to their closest GAAP measure in the earnings press release. Our discussion today may include forward-looking statements, which are subject to risks and uncertainties, many of which are beyond our control. These risks and uncertainties are described more fully in our documents on file with the SEC, which are also available on our website.

With that, I will now turn the call over to Sean.

Sean Woolverton

Thank you, Jeff, and thank you everyone for joining our call this morning. SilverBow's second quarter results demonstrated the impact of our oil focused development program and the team's ability to meet and exceed our objectives. Our differentiated strategy is delivering growth while living within cash flow this year and we are well-positioned to generate significant free cash flow over the next 18 months. I'm pleased to report that during the quarter, we published our Inaugural Sustainability Report. With this report, we now have the standardized framework in place for investors and other key stakeholders to fully appreciate our ESG stewardship.

Turning to results. Second quarter production came in at the high end of guidance and increased 40% year-over-year. Our production growth was driven by strong performance from our oil assets, as our oil production exceeded the high end of guidance and has nearly tripled year-over-year. As Chris will further detail, the rapid shift of our production mix resulted in 75% of revenue derived from liquids, compared to less than 33% a year ago. On the cost front, our operating expenses came in below guidance across the board.