Falcon Minerals Corp (NASDAQ:FLMN) Q4 2018 Earnings Conference Call - Final Transcript

Feb 27, 2019 • 09:00 am ET


Falcon Minerals Corp (NASDAQ:FLMN) Q4 2018 Earnings Conference Call - Final Transcript


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Good morning, and welcome to the Falcon Minerals Fourth Quarter and Full Year 2018 Earnings Results Call and Webcast. Today's call is being recorded. At this time, all participants have been placed in a listen-only mode and the floor will be open for your questions following the presentation. (Operator Instructions)

It is now my pleasure to turn the floor over to Brian Begley with Falcon Minerals. Sir, you may begin.

Brian Begley

Thank you. And good morning, everyone. Thank you for joining us for today's call to discuss Falcon's fourth quarter and full year 2018 results. With us today on the call is our President and Chief Executive Officer, Daniel Herz, and our Chief Financial Officer, Jeff Brotman.

Before we begin, I would like to remind everyone that during this call we'll make certain forward-looking statements, and in this context, forward-looking statements often address our expected future business and financial performance and financial conditions and also contain words such as expects, anticipates, and similar words or phrases. Forward-looking statements by their nature address matters that are uncertain and are subject to certain risks and uncertainties, which can cause actual results to differ materially from those projected in the forward-looking statements. We discuss these risks in the quarterly report on Form 10-Q and our Annual report on Form 10-K. I also like to caution you not to place undue reliance on these forward-looking statements, which reflect management's analysis only as of the date hereof. The Company undertakes no obligations to publicly update our forward-looking statements or to publicly release the results of any revisions to forward-looking statements that may be made to reflect events or circumstances after the date hereof or reflect the occurrence of unanticipated events.

Additionally, in our earnings release, we have provided a reconciliation to the non-GAAP measures we refer to in our public disclosures such as adjusted EBITDA and pro forma free cash flow. We have also provided a supplemental presentation to our earnings results, which can be found on the Company's website on the Events and Presentations page of the Investor Relations section.

With that, I'll turn the call over to our CEO, Daniel Herz, for his remarks. Daniel?

Daniel C. Herz

Thanks, Brian. Welcome everyone and thank you for joining the Falcon Minerals Corporation fourth quarter 2018 conference call. President Abraham Lincoln once said be sure you put your feet in the right place, then stand firm. We at Falcon believe we are in the right place. Falcon Minerals launched during 2018 which was, to say the least, quite a year for energy. We saw oil prices rise meaningfully during the first half of the year and then we saw those same oil prices decline very quickly and materially in the fourth quarter of 2018. But through this period of volatility and increased uncertainty, we saw the inherent strengths of Falcon which reflect its enormous stability. We are a business that requires zero capital, that receives on average approximately 1% of the revenue from wells developed across our 250,000 plus gross