Good day, and thank you for joining us. Welcome to the Berry Corporation Q2 2023 Earnings call. At this time, all participants are in listen-only mode. After the speaker's presentation, there will be a question-and-answer session. To ask a question during the session, you will need to press star one, one on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star one, one again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Todd Crabtree, Head of Investor Relations. Please go ahead. Thank you, Gerald, and welcome everyone, and thank you for joining us for Berry's second quarter 2023 earnings teleconference. Earlier today, Berry issued an earnings release highlighting 2023 2nd quarter results. Speaking this morning will be Fernando Araujo, our Chief Executive Officer, and Mike Helm, our Chief Financial Officer. Before we begin, I would like to call your attention to the safe harbor language found in our earnings release that was issued this morning. This release in today's discussion contains certain projections and other forward-looking statements within the meaning of federal securities laws. These statements are subject to risks and uncertainties that may cause actual results to differ materially from those expressed or implied in these statements. These include risks and other factors outlined in our filings with the SEC, including our 10-Q, which will be filed later today. Our website, bry.com, has a link to the earnings release and our most recent investor presentation. Any information, including forward-looking statements, made on this call or contained in the earnings release and that presentation reflects our analysis as of the date made. We have no plans or duty to update them except as required by law. Please refer to the tables in our earnings release and on our website for a reconciliation between all adjusted measures mentioned in today's call and the related GAAP measures. We will also post the replay link of this call and the transcript on our website. I will now turn the call over to Fernando. Thanks, Todd. Welcome, everyone, and thank you for joining us. In the second quarter, we successfully executed on our strategy to maximize shareholder value and generate meaningful returns. Our operational and financial performance was strong, and we delivered on all fronts. We are excited about our pending acquisition of Macpherson Energy Corporation, which is on track to close late in the third quarter. This is another step in achieving our important objective of acquiring accretive, producing bolt-ons. We currently anticipate that our full year 2023 results from our current operations will be in line with previous guidance, except with respect to capital expenditures. We expect 2023 capital expenditures to be approximately $35 million lower than initial guidance. This is a result of the reallocation of capital used to fund a portion of the Macpherson transaction. We will fully update guidance in connection with the transaction close. We delivered nearly 7% or more than 1,600 barrels per day, higher production volumes quarter-over-quarter. We accomplished this with less capital than planned. We expect annual production from our current operations to be at or above the midpoint of our initial guidance. Our base production, which is expected to account for more than 95% of our total 2023 production, is outperforming plan. This is mainly due to the implementation of an optimized steam injection strategy in our California fields. This is a great example of what I mean when I use the term operational excellence. The balance of production comes from our successful workover and sidetrack campaign. Part of the production gain in Q2 was related to recovering deferred production from Q1. Our ongoing commitment is to maximize shareholder returns while ensuring that we remain a responsible and safe producer. In accordance with our shareholder return model, this quarter, we will pay total dividends of $0.14 per share between fixed and variable. This is in line with our goal to deliver a 2023 cash return in the high single digits based on our current stock price. We opportunistically repurchased $10 million of our common stock during the second quarter. We recently announced that we've entered into an agreement to acquire Macpherson Energy Corporation, a privately held Kern County operator, for $70 million in cash. This transaction improves capital efficiency and reallocates capital, with 80% of the purchase price funded with $35 million from our planned 2023 capital expenditures, plus expected cash flows from the acquired assets in 2023 and 2024. Based on current projections and $75 per barrel brand pricing, the adjusted free cash flow delivered by the combined company after the transaction is fully paid for in 2024, is expected to be 15%-25% greater than Berry without MacPherson. The MacPherson assets, which are high quality, low decline producing properties, are a natural fit with our existing rural Kern County portfolio. In addition to the attractive base production, we see upside for near-term production enhancement and development opportunities by utilizing existing wellbores. This is a value-creating transaction for Berry and its shareholders, reflective of our disciplined capital return strategy. We are ideally positioned to capture future consolidation opportunities. I will now turn the call over to Mike. Thank you, Fernando. As always, more information is available in our earnings release issued this morning and in our 10-Q filing available later today. Here are a few highlights. ...Our financial and operational results were strong this quarter. Adjusted EBITDA totaled $69 million, compared to $59 million for the first quarter. This 17% increase, despite the lower oil prices, is primarily due to higher production and lower Lease Operating Expenses. Lease Operating Expenses, including the effect of gas purchase hedges, decreased 23% from Q1, most of which is attributable to the lower fuel costs and lower lease maintenance costs. We also continued to implement ongoing cost reduction initiatives during the quarter, some of which are beginning to bear fruit entering the second half of the year. An example of this is the completion of the solar project at our South Belridge property, which, in addition to reducing our carbon footprint, is expected to reduce our annual power costs by about $300,000. Adjusted G&A expenses were down slightly compared to the first quarter. We expect to see continued improvement throughout the rest of the year. Second quarter Adjusted Free Cash Flow was $34 million, which, after taking into account the use of working capital in the first quarter, resulted in a cumulative net Adjusted Free Cash Flow of $7 million for the first half of 2023. Accordingly, we have declared a variable dividend of $0.02 per share, in addition to the quarterly fixed dividend of $0.12 per share. As a reminder, our shareholder return model is based on annual Adjusted Free Cash Flow, calculated after the payment of the fixed dividend, 20% of which is earmarked for variable dividends. The remaining 80% is intended for opportunistic debt and stock repurchases, as well as strategic growth and the acquisition of producing bolt-ons. Berry was active with share buybacks in the second quarter, repurchasing around 1.4 million shares in the open market for approximately $10 million at an average price of $7.04 per share. We have an additional $190 million authorized for future stock buybacks and $75 million authorized for debt repurchases. To summarize, Berry is hitting its operational and financial targets and is well positioned for continued success, maximizing shareholder returns. Back to you, Fernando. Thanks, Mike. In closing, our second quarter results have delivered on our commitment to maximize shareholder returns and achieve operational excellence. We are on track to meet our annual production goals with less capital spend and decreasing operating expenses. We are confident in our ability to enhance free cash flow and shareholder returns going forward. We believe that the current industry and market conditions are favorable for M&A, and the Macpherson acquisition is evidence of that. Berry remains well positioned to be a consolidator, and we are actively pursuing other opportunities that align with our strategy to maximize shareholder value. With that, I will now turn the call over to the operator for questions. Thank you. We will now conduct a question-and-answer session. As a reminder, to ask a question, please press star one, one on your telephone and wait for your name to be announced. To withdraw your question, please press star one, one again. Please stand by while we compile the Q&A roster. Our first question comes from the line of Charles Meade with Johnson Rice. Please proceed with your question. Good morning, Fernando, Mike, and the rest of the Berry team. Fernando, I want to, I want to pick up exactly where you left off there with your prepared comments about you, you said that conditions are becoming more favorable for A&D or for, for acquisition opportunities in Kern County. You know, this, this looks like a good deal, this MacPherson deal. But can you elaborate a bit on what, what are the prospects for more opportunities like this coming your way? Yeah, that's a very good question, Charles. You know, in California in particular, we're seeing a renewed interest in M&A opportunities, especially with the current regulatory environment. Groups are willing to have a conversation now more than before, and we are very active in those conversations with several parties. We believe the future of California is consolidation in order for industry to be able to achieve those synergies, those operational synergies available. We, as Berry, want to be that, that company, that that leading company that consolidates assets. Obviously, we continue to evaluate producing properties in, in Kern County, but also in Utah and other places. All, in all cases, you know, properties that would align with, with our strategy to maximize shareholder returns. You know, we, we are looking at opportunities to be able to keep production flat or even, or even increase production in some cases. We are focusing on areas where we can see immediate operational synergies and areas where we can apply some of our proven technologies to be able to enhance the value of those assets. We are very active currently, Charles, looking at different opportunities, but, but, but this is the time. Got it. So, just to, just to push on that a little bit more, if I understand you right, or if I understand correctly, is, is there something along the lines of, you know, these are, these are, you know, family-owned businesses, probably family operated, and they've, you know, they've, they've been, they've been doing the same sorts of projects, you know, for, for years. And now, because the regulatory environment has, has maybe shut some of the, those activities down, it's kind of forcing a reevaluation of, of their strategic direction. Am I, am I understanding correctly or you're along the right lines? Yeah, you're, yeah, you're, you're correct in that assumption. A lot of the smaller companies are kind of reevaluating their businesses now with the current environment. Again, we're looking at not only some of the smaller players, but we're looking at different sized companies or opportunities as well. Got it. Got it. Okay. Thank you. Then, and then, maybe just a second follow-up then. Obviously, you know, this, this is the, this Macpherson is, you know, it, it's, it's in your, your wheelhouse in, in Kern County. Most of my understanding is most of your, your, production, not all, but most is, is more, you know, West of Bakersfield, whereas, you know, you know, your existing Poso Creek and, and, and this Macpherson is more north of Bakersfield. Are, are there... How, how is the opportunity set, you know, different or, or perhaps better, with these assets since you're, since you're kind of weighting up in this area? You know, we see opportunities both on the eastern side of Kern County, which is, which is the case of Macpherson, and also the western side of Kern County, where most of our operations are. We are, we are talking, we are talking to folks on, on both sides. Now, Macpherson, as you know, is fairly close to our Poso field, so we're gonna be able to realize some, some, some synergies just, just because of economies of scale. We are seeing opportunities in both, both sides of, of, of the basin, then we're, we're actively looking at, at everything. Got it. I'll, I'll let someone, I'll let someone else hop in, and I'll hop back in the queue. Thank you. One moment as I prepare the queue. Our next question comes from the line of Timothy Chatard from Mirabaud Asset Management. The line is now yours. Hi, good morning. Just curious if... I'm sure you're aware of California Resources and their, and their efforts, to more or less split their company into two businesses, E&P on one side and carbon management on the other. Is that, is that structure at all relevant to you in your assets since you, you operate in somewhat, you know, similar proximity to where they are? Yeah, very, very good question, Tim. You know, the big difference between CRC and us is, is really size. You know, our goal when it comes to ESG in particular, is to be a good, a good corporate citizen and to be able to minimize the environmental impact. As far as carbon capture projects, we wanna be more of a follower than a leader. We are talking to different parties about the possibility of collecting our emissions and delivering those emissions to, to a third party, but we just simply don't have the size to be able to have our own project, like CRC. It seems like they're bringing in outside capital via a partnership. In other words, I, I don't think they're handling it all on their own, but I'm just... I guess you've answered the question, but I'm just pointing out that, yes, they're larger, but there's also outside capital that's looking for things like this. Can I ask you a separate question, whether there's been any change in the court process with Kern County, timetable, with the appellate court system or anything along those lines that you can offer color to? Yeah, yeah, sure, Tim. You know, the permitting situation really hasn't changed since last time we reported, with, with the court issuing a stay back in January, as you know. Now, the appeal process is underway, and the court is expected, the court process is expected to take a few months. We're expecting to have a ruling, you know, at the end of the year, beginning of next year. We're confident that the courts will reinstate the Kern County EIR, although that is obviously a risk and it's not a given. We'll be ready for that. We've got several-- we've got on the order of 84 current county permits, county cards, as they call them, ready to go when that happens. But for now, there's really been no additional movement, beyond what I just talked about. I see. Thanks for your time. Thank you. Again, as a reminder, to ask a question, you will need to press star one one on your telephone. I'm showing no further questions. At this time, I would now like to turn the conference back over to CEO Fernando Araujo for closing remarks. Well, thank you everyone, for attending, and be safe, and until next time. We're excited about what's going on with Berry. We're excited about the results in Q2, and we'll, we'll keep going. Thank you. This concludes today's conference call. Thank you for participating. You may now disconnect.