Montage Resources Corporation (NYSE:MR) Q2 2019 Earnings Conference Call Transcript

Aug 07, 2019 • 11:00 am ET

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Montage Resources Corporation (NYSE:MR) Q2 2019 Earnings Conference Call Transcript

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Presentation
Operator
Operator

Greetings, and welcome to Montage Resources Second Quarter 2019 Earnings Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation.

[Operator Instructions]

As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Mr. Douglas Kris, Vice President of Investor Relations. Thank you, you may begin.

Executive
Douglas Kris

Good morning, and thank you for joining us for the Montage Resources second quarter 2019 earnings conference call. With me today are John Reinhart, President and Chief Executive Officer; Michael Hodges, Executive Vice President and Chief Financial Officer; Oleg Tolmachev, Executive Vice President and Chief Operating Officer; and Matthew Rucker, Executive Vice President, Resources Planning and Development.

If you have not received a copy of last night's press release regarding our second quarter 2019 financial and operating results, you can find a copy of it on our website at www.montageresources.com. Today's discussion will highlight the Company's operational and financial outperformance in the second quarter.

Before we start our comments, I would like to point out our disclosures regarding cautionary statements in our press release, and remind you that during this call, Montage management will make forward-looking statements. Such statements are based on our current judgments regarding factors that will impact the future performance of Montage Resources and are subject to a number of risks and uncertainties, many of which are beyond Montage Resources' control. Actual outcomes and results could materially differ from what is expressed, implied or forecast in such statements. Information regarding these factors can also be found in the Company's filings with the SEC.

In addition, during this call, we do make reference to certain non-GAAP financial measures. Reconciliation to applicable GAAP measures can be found in our earnings release. We expect to file our 10-Q later this week, which will be accessible through our website or the SEC's EDGAR system.

I will now turn the call over to John Reinhart, our President and CEO. Thank you, Doug, and thank you to everyone for listening to our call today.

Executive
John Reinhart

I'm very pleased to provide highlights today on the Company's continued outperformance in the second quarter of 2019, which includes production exceeding guidance, operating costs lower than guidance outpacing our cycle time expectations and capital spending lower than expectations, all of which facilitates positive revisions to our 2019 full-year guidance. The combined organization is realizing the synergies of bringing together two great commercial and operational teams, and the guidance revisions primarily reflect the operational efficiencies realized year-to-date associated with the shift in development strategy aimed at improving cash flows and maximizing the value of the Company's high-quality assets. We continue to lower cost, accelerate production and enhance asset level and corporate returns, all while protecting the Company's strong balance sheet and liquidity position. Our focus remains on consistently delivering results that balance cash flow generation with disciplined growth, all to improve the underlying fundamental value of the Company.

Highlighting the second quarter of 2019 results, the Company's average