SilverBow Resources, Inc. (NYSE:SBOW) Q1 2019 Earnings Conference Call Transcript
May 09, 2019 • 10:00 am ET
Good morning. My name is Laura, and I will be your conference operator today. At this time, I would like to welcome everyone to the SilverBow Resources First Quarter 2019 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.
I would now like to turn the call over to Mr. Jeff Magids. Sir, please go ahead.
Thank you, Laura, and good morning, everyone. Thank you very much for joining us for our first quarter 2019 conference call. Joining me on the call today are Sean Woolverton, our CEO; Steve Adam, our COO; and Gleeson Van Riet, our CFO.
We posted a new corporate presentation onto our website and will occasionally refer to it during this call. We encourage investors to review it.
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 will 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.
And with that, I'll turn the call over to Sean.
Sean C. Woolverton
Thank you, Jeff, and thank you, everyone, for joining us on our call this morning. We are pleased to report another solid quarter for the Company. Our financial and operational results demonstrate our consistent ability to execute on multiple fronts. As we discussed on our last call and described in our corporate presentation, our key objectives for 2019 are free cash flow generation, corporate efficiency, portfolio expansion and balance sheet strength. We've made great progress this quarter, and we delivered on our all aspects of our guidance. As it stands today, I'm very proud of how our organization is performing.
Let me share with you just a few highlights. First off, as it relates to free cash flow, we are holding our full year production range of 225 to 239 MMcfe per day, which implies a 25% growth based upon the midpoint. With the new wells recently brought online and the increase in second quarter production guidance, we remain on track to deliver full year double-digit EBITDA growth as well.
For the first quarter, our adjusted EBITDA of $53.7 million represents a 49% increase compared to a year ago. On a per unit basis, our adjusted EBITDA continues to increase. At $2.77 per Mcfe, we came in 11% higher than the first quarter of 2018. This is a key differentiator for us, when compared to our gas-producing peers.
Finally, we are holding our full year capital budget range of $250 million to $260 million. We expect to see our quarterly spend decrease in the second half of year as a result of moving to a 1-rig program in the second quarter and completing our inventory of drilled but uncompleted wells