Roan Resources, Inc (NYSE:ROAN) Q1 2019 Earnings Conference Call Transcript
May 15, 2019 • 10:30 am ET
Hello, and welcome to the First Quarter 2019 Roan Industries Earnings Conference Call -- sorry, Roan Resources Earnings Conference Call. (Operator Instructions) Thank you. I'd now like to introduce you to Allison Gilbert, Manager of Investor Relations, you may begin ma'am.
Good morning, and thank you, for joining our first quarter earnings investor conference call. We will start today with prepared remarks from Joseph Mills, Executive Chairman and David Edwards, Chief Financial Officer. Also on the call available for Q&A are Joel Pettit, Executive Vice President of Operations and Marketing; and Greg Condray, Executive Vice President of Geosciences Business Development.
Today's call will contain forward-looking statements that will describe our beliefs, goals, plans, strategies, expectations, projections, forecasts and assumptions. Please note that the Company's actual results may differ from those anticipated by such forward-looking statements for a variety of reasons, many of which are beyond our control. Additional information concerning certain risk factors relating to our business, prospects and results are available in the Company's filings with the SEC, including the Company's Annual Report on Form 10-K and any other public filings and press release.
Roan does not undertake any obligation to update forward-looking statements made on this call. Finally, we will refer to certain non-GAAP financial measures. A reconciliation of these measures to Generally Accepted Accounting Principles, please refer to our fourth quarter press release or slide presentation that has been posted at the Company's website at www.roanresources.com. I will now turn the call over to Mr Mills. Joe?
Joseph A. Mills
Thank you, Alyson. Good morning, ladies and gentlemen, and thank you to everyone that has joined us for our first quarter 2019 earnings call. As you are all aware, this is my first quarter call as Roan's, Executive Chairman of the Board. I'm excited to be at the helm of Roan, while we search for a permanent CEO replacement. The Board constituted a search committee and we've engaged Korn Ferry, to assist us in a nationwide search for the right person to assume the CEO duties at Roan. We announced a month ago that Tony Maranto, our Chairman and CEO, had elected to resign. Given Roan's premier acreage position in the core of the basin, the Board has been less than pleased with the Company's overall performance over the past year.
Management decision to ramp to eight rigs last year was far too aggressive for a company of this scale and at this stage of its life cycle. With eight rigs running, we could not be as thoughtful about our location selections and given the state regulatory permit process here in Oklahoma, this resulted in sub-optimal locations being drilled based upon available drilling permits, rather than optimize development units given the geology and spacing considerations. Going to the four rigs in the first quarter of this year was clearly the right answer to allow us to better balance our activity level, adjust our cost structure more in line with the lower commodity prices and optimize our drilling and completion practices based