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Ladies and gentlemen, thank you for standing by. My name is Brent, and I will be your conference operator today. At this time, I would like to welcome everyone to the SandRidge Energy Second Quarter 2023 Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session. [Operator Instructions] Thank you. It is now my pleasure to turn today's call over to Scott Prestridge, Vice President of Finance and Treasury. Sir, 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 pleased to report on a good quarter of results that the company's efficient activity continues to translate to meaningful free cash flow from our producing assets year-to-date and the announcement of a regular quarterly cash dividend of $0.10 per share, first payable in August 2023, subject to quarterly approval by the Board of Directors and a $2 per share onetime cash dividend that was paid on June 7 2023. Before expanding on this, Salah will touch on a few highlights.

Thank you, Grayson. Before jumping into operational and financial results, I would like to highlight the recent closing of an acquisition which increased the company's working interest in 26 operated wells within our Northwest Stack area, adding approximately 500 net Boe per day of approximately 30% oil or $11.3 million. These types of small ball bolt-ons will add value-accretive production, with low decline profiles that will further strengthen the company's commodity price realizations, operating margins and cash flow. Production for the quarter averaged 17.5 MBoe per day, up from 16.7 MBoe per day in the previous quarter and an increase of approximately 39% in oil production from the second quarter of 2022, driven by the higher oil content of new wells from our recent development program in the Northwest Stack play, but before the benefit of our recently closed acquisition. Over the quarter, the company generated adjusted EBITDA of approximately $20 million. 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 $2.9 million of interest income during the quarter from cash held in the diversity of high-yield deposit accounts. Net cash including restricted cash was approximately $224 million, which represents approximately $6 per share of our common stock issued and outstanding as of June 30, 2023 and net of the onetime dividend of $2 per share paid on June 7, 2023. The company has no term debt or revolving debt obligations as of June 30, 2023 and continues to live within cash flow, funding all of 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 $70.99 per barrel of oil, $2 per Mcf of gas and $20.19 per barrel of NGLs for the first half of the year. While there has been a reduction in oil and natural gas market benchmark prices for WTI and Henry Hub over the first six months of the year, the company has maintained commodity price realizations in line with previously issued guidance for the period. As alluded to earlier, we have maintained our large federal NOL position, which is estimated to be approximately $1.6 billion at quarter end. 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. Adjusted G&A for the quarter was approximately $1.9 million or $1.21 per Boe. Despite inflationary pressures and an increased well count from our prior well reactivation and development programs, LOE and expense workovers for the quarter were approximately $8.8 million or $5.53 per Boe, a near 25% reduction from the prior quarter. We believe we compare favorably with our peers in regards to G&A and LOE on both an absolute and per Boe basis. We continue to generate net income for our shareholders. During the quarter, we earned net income of $16.6 million or $0.45 per basic share and net cash provided by operating activities of $24 million. The company also generated approximately $2.9 million in interest income during the first quarter, totaling approximately $5.4 million for the first six months of 2023. This is all culminated in the company producing approximately $40 million in free cash flow during the first six months of 2023, which represents a conversion rate of approximately 77% relative to adjusted EBITDA or just over $1 per common 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.