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Ladies and gentlemen, thank you for joining us and welcome to Sand Ridge Energy's second quarter 2026 conference call. After today's prepared remarks, we will host a question and answer session. If you would like to ask a question, please press star 1 to raise your hand. To withdraw your question, press star one again. I will now hand the conference over to Scott prestridge senior vice president of finance and strategy scott please go ahead thank you and welcome everyone with me today are grayson prannon our ceo jonathan fredis our cfo brandon brown our cao and dean parish our coo we would like to remind you that today's call contains forward-looking statements and assumptions which are subject to risk and uncertainty and actual results may differ materially from those projected in these forward-looking statements. These statements are not guarantees of future performance and our actual results may different materially due to known and unknown risks and uncertainties as discussed in greater detail in our earnings release and our SEC filings. 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 afternoon. I'm pleased to report on a strong quarter and first half for the company. We continue to grow year-over-year production and revenue, driven primarily by our Operated Development Program and higher commodity prices. We also announced a bolt-on acquisition that expands our footprint in the Cherokee Plate. Before getting into this and other highlights, I will turn things over to Jonathan for details on financial results. Thanks, Grayson. During the quarter, the price of oil averaged roughly $95 per barrel, while the price of natural gas fell to just above $3. The company grew production to 19.7 MBOE per day, representing an increase of 11% year-over-year on a BOE basis, while oil increased 22% over the same period. We generated revenues of just over $51 million, a 48% increase year-ever-year, and adjusted EBITDA to $34 million, of 49% increase over the same period, As always, we continue to manage the business with a goal of maximizing long-term cash flow while growing production and utilizing our NOLs to shield us from income taxes. At the end of the quarter, cash, including restricted cash, was approximately $115 million, which represents roughly $3.09 per common share outstanding. The company paid $10.6 million in dividends during the quarter which included our regular weight dividend of $0.13 per share and the previously announced one-time special dividend of $.20 per share. Including special dividends, Sandrich has now paid $5.05 per share in dividends since the beginning of 2023. On August 4th, 2026, the Board of Directors declared a $0,13 per share dividend payable on August 31st to shareholders of record on August 19th, 2026. Shareholders may elect to receive cash or additional shares of common stock through the company's dividend reinvestment plan. A monetary price realization for the quarter before considering the impact of hedges for $95.35 per barrel of oil, $1.36 per mcf gas, and $21.68 per barrel of NGL. This compares to first quarter realizations of $71.11 per barrel of oil, $3.13 for MCF gas, and $18.64 per barrel of N GL. While oil prices rose during the quarter, the realized price of natural gas fell meaningfully, primarily due to widening regional price differentials. Our commitment to cost discipline continues to yield results, with adjusted GNA for the quarter of approximately $2.7 million, or $1.52 per BOE, compared to $2,400,000, or $1,048 per BOe in the second quarter of 2025. Net income was approximately $27 million for the quarter, or $0.72 per common share, and adjusted net income was approximately $21 million, of $0,57 per share. This compares to $19.6 million, $0 or $0 53 per common share and $12.2 million, or $0.33 per share, respectively, during the same period last year. The company generated cash flow from operations of $42.4 million during the quarter, compared to $22.9 million during this same period of last year, and adjusted operating cash flow of $34.6 million during that quarter, compared to 25.6 in the same quarter of 2025. The company continues to have no debt and expects to fund all 2026 capital expenditures and capital returns with cash flows from operations during the year. Lastly, our production is hedged with a combination of swaps and collars representing just under 30% of the midpoint of our 2026 guidance. This includes 37% of natural gas production and 43% of oil. These hedges will help secure a portion of our cash flows and support our drilling program through the year we continue to monitor prices to take advantage of favorable opportunities but plan to maintain meaningful upside throughout the remainder of the year before shifting to our outlook we should note that our earnings release in 10q will provide further details on our financial and operational performance during the year i will turn it over to dean for an update on operations thank you jonathan i'll start with a review of the second quarter then discussed recent drilling and completion results total capital spend for the quarter excluding amd was 16.3 million dollars which is better than expected for the corridor mostly due to activity timing the rigorous fitting process focused on driving drilling and completing costs down in the cherokee play and longer artificial run less time from previous years of improvements also contributed. Additionally, we have been securing critical well components needed for the remainder of the year to minimize any supply or inflationary pressures that may affect our capital program. Lease operating expenses for the quarter were $10.3 million, or $5.73 per BOE, which falls right in line with expectations. We are also securing the equipment and services that will be critical for production operations in 2026, similar to the capital program. Expect to continue to see pressure on diesel through fuel surcharges passed on through service providers that have strict internal protocol to reduce surchargers when diesel prices begin to decrease. During the quarter, the company successfully brought two wells online from our operated one-rig Cherokee drilling program. We recently brought online two additional wells in July and are drilling the sixth out of 10 wells for the year. Our operations team continues to execute with the fourth well that was drilled being the fastest, lowest well cost to date. In addition to Cherokee development, the operations team successfully recompleted a shut-in legacy well to an up-hole zone with initial production rates of 1,400 MCF per day and four barrels of oil per day, exceeding expectations. We will continue to focus on lower drilling and completion costs while looking for opportunities to extract additional value from legacy assets. Moving to our 2026 capital program, we plan to drill 10 operated Cherokee wells with one rig this year and complete nine wells the remaining completion is anticipated to carry over to next year a majority of the remaining wells in our development program this year directly offset producing or in progress wells in the area and we continue to monitor offsetting results gross well costs vary by depth but are estimated to be between approximately 9 million and 11 million dollars we intend to spend between 76 and 97 million dollars in our 2026 capital program which is made up of 62 to 80 million dollars in drilling and completions activity in between 14 and 17 million dollars in capital workovers production optimization and selective leasing in the cherokee play our high graded leasing is focused on further bolstering our interest consolidating our position and extending development into future years with that i will turn things back over to grayson thank you dean let's begin with a recently announced cherokee acquisition in june 29th we signed an agreement to acquire certain producing assets and leasehold interests in the cherokees play expanding our efficient operations in the area with the addition of 7 000 net diesel acres and interest in 21 wealth to include interest in four sandwich operated wells the proven undeveloped leasehold includes four two and a half mile wells and four two mile wells which immediately offset our core position in roger mills county the average 30-day ip for the operated producing wells we're acquiring is more than 2100 voe per day with 58 percent oil we view this as a very complimentary bolt-on that expands our footprint in the mid-continent by adding quality oil-weighted production and bolstering our character inventory with acreage that immediately offsets our current drilling and leasing program. We anticipate closing this acquisition in the third quarter, and we'll then focus on integrating the new assets, applying our low-cost know-how to operations. Currently, we do not plan to add people as a result of the acquisition. Now, let's pivot over to the development program. As Dean discussed, we had first production on two wells this past quarter. One well targeted the Cherokee Shale in our core area, which had a peak 30-day average production rate of approximately 2,000 BOE per day, consistent with the surrounding wells in the area. The other well turned in line this quarter with a step out from our core areas and tested a sub-member of the larger Cherokee formation, immediately below the Cherokees Shale. This well had an initial 30-day average rate more than 10,000 MCF per day and more than 100 barrel of oil per day on a two-stream basis. The 90-day averaged rate is approximately 11,000 NCFE per day, and cumulative production after 100 days is over 1 billion cubic feet. We are seeing exceptionally flat production from this well. While we are still assessing long-term recoveries, initial estimates are very promising. This well result allows us to better establish performance expectations in a new target and area that will help us evaluate the economics and potential development opportunity in the future. To that end, we are assessing whether this new target and the charity shell are truly unique reservoirs and the potential for stack pay, which, if confirmed, could provide further development options for gas. However, we plan to be deliberate and patient as we observe more production history and gather more information to aid in analysis and future decision-making. Given the tailwind of WTI prices and the enhancement to returns, we plan to continue our Cherokee development with one rig and further grow oily production. While the program is attractive in a range of commodity environments, our team will continue to be diligent in monitoring results, prioritizing full cycle returns, and reasonable reinvestment rates, and when needed, exercise drill schedule flexibility to make prudent adjustments to our development plans. I'm very pleased with our team for their continued focus on safety, execution, and cost focus in the development and production optimization program. They have truly championed safety, resulting in the continuation of our record of more than four and a half years without a recordable safety incident. In addition, they continue to operate at a high level with a lean, but very engaged and experienced staff, with peer leading operating and administrative cost efficiencies. I'd like to pause here to highlight the optionality we have across our asset base, coupled with the strength of our balance sheet, with operating and administrating cost efficencies. I'd to pause to highlight here the optionally we have our asset based, coupled with the strength of our balance sheet, which sets us up to leverage commodity price cycles. A combination of our oil-weighted Cherokee and gas-weighting legacy assets, as well as a robust net cash position, give us multi-faceted options to maneuver and take advantage of different commodity cycles, but simply have a strong balance sheet and a versatile kit bag, which makes the company more resilient and better poised to maneuver and adjust no matter the commodity cycle. I will now revisit the company's advantages. Our asset base is focused in the mid-continent region with a PDP well set that provides meaningful cash flow, which has a shallowing and diversified production profile, and a double-digit reserve life and does not require any routine flaring of produced gas. Our incumbent assets include more than 1,000 miles each of owned and operated SWD and electrical infrastructure over our footprint, which, among other factors, helps de-risk individual well profitability for a majority of our legacy-producing wells down to roughly $40 WTI and $2 Henry Hub. Our assets continue to yield free cash flow. This cash generation potential provides several paths to increase shareholder value realization and is benefited by a low G&A burden. Damage's value proposition is materially de-risked from a financial perspective by our strength and balance sheet, including negative net leverage, financial flexibility, and advantaged tax position. We have bolstered our inventory to provide further organic growth opportunities and incremental oil diversification with low break-evens in high-graded areas. Finally, it is worth highlighting that we take our ESG commitment seriously and we have implemented disciplined processes around them. Not only do we continue to operate our existing asset base extremely efficiently and execute on our Cherokee development in an effective manner, but we do so safely. Shifting the strategy, we remain committed to growing the value of our business in a responsible, efficient manner while prudently allocating capital to high-return growth projects. We'll also evaluate merger and acquisition opportunities while maintaining financial discipline, consideration of our balance sheet, and commitment to our capital return program. This strategy has five points. One, maximize the value of our incumbent mid-con PDP assets by extending and flattening our production profile with high-return production optimization projects as well as continuously pressing on operating and administrative costs. Two, exercise capital stewardship in investment projects and opportunities that have attractive returns and target reasonable reinvestment rates that sustain our cash flow while prioritizing a regular way dividend. 3. Maintain optionality to execute on value-accretive merger and acquisition opportunities that could bring synergies, leverage the company's core competencies, complement our portfolio of assets, further utilize approximately $1.5 billion of federal net operating losses, or otherwise yield attractive returns. 4. As we generate cash, we will continue to work with our board to assess paths to maximize shareholder value. to include investment and strategic opportunities, advancement of our return of capital program and other uses. To this end, board continues to focus on the company's return of capitol to stockholders and as a result expanded our on-going dividend program last quarter by 8%. The final staple is to uphold our ESG responsibilities. Now shifting to administrative expenses, I will turn things over to Brandon. Thank you, Grayson. As we wind up our prepared remarks, I will point out our second quarter adjusted G&A of $2.7 million. One dollar and 52 cents per BOE continues to lead among our peers. The consistent efficiency of our organization reflects our core values to remain cost disciplined and to be fit for purpose. We will maintain our efficient and low-cost operation mindset and continue to focus on the proper weighting of field versus corporate personnel to reflect where we create the most value. The outsourcing of our more perfunctory activities, such as operations accounting, land administration, IT, tax, and HR, has allowed us to operate a total personnel of just over 100 people for the past several years, while retaining key technical skill sets that have both the experience and institutional knowledge of our business. In summary, at the end of the second quarter, the company had approximately $115 million in cash and cash equivalents, which represents approximately $3.09 per share of our common stock outstanding. An inventory of high High rate of return, low break-even projects, low overhead, top tier adjusted G&A, no debt, negative net leverage, a flattening production profile, double-digit reserve life, and approximately $1.5 billion of federal annual wealth. This concludes our prepared remarks. Thank you for joining us today. We will now open the call to questions. We will now begin the question and answer session. If you would like to ask a question, please press star 1 to raise your hand. To withdraw your question, press star 2 to raise hand. Press star 1 again. We ask that you pick up your handset when asking a question to allow for optimum sound quality. If you are muted locally, please remember to unmute your device. Please stand by while we compile the Q&A roster. A reminder, if you would like to ask a question, please press star 1 to raise your hand. To withdraw your question, press star one again. there are no questions at this time this concludes today's call thank you for attending you may now disconnect

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