SilverBow Resources, Inc. (NYSE:SBOW) Q2 2020 Earnings Conference Call - Final Transcript
Aug 05, 2020 • 10:00 am ET
Ladies and gentlemen, thank you for standing by, and welcome to the SilverBow Resources Second Quarter 2020 Earnings Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded. [Operator Instructions]
I would now like to hand the conference over to your speaker, Jeff Magids, Senior Manager, Finance and Investor Relations, SilverBow Resources, Inc. Sir, you may begin.
Thank you, Amanda, and good morning, everyone. Thank you very much for joining us for our Second Quarter 2020 Conference Call. With me on the call today are Sean Woolverton, our CEO; Steve Adam, our COO; and Chris Abundis, our CFO.
Yesterday afternoon, we posted a new corporate presentation to our website and will occasionally refer to it during this call. We encourage listeners to download the latest materials. 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 may 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 will turn the call over to Sean.
Sean C. Woolverton
Thank you, Jeff, and thank you, everyone, for joining our call this morning. First, we hope that everyone listening is well. I would like to thank our employees and our contractors as well as our vendors and other key stakeholders for their dedication and resilience during these times. We continue to take the necessary measures to ensure the health and wellbeing of all employees and contractors. Safety strong is of paramount importance.
In the face of a global pandemic and an abrupt decline in commodity prices, I am pleased to report that SilverBow delivered strong operational and financial results. The actions we took in March and April allowed the Company to fortify its balance sheet, optimize its capital spend and timing and realize expense savings. Specifically, during the quarter, we generated $14 million of free cash flow and reduced our revolving credit facility borrowings by $20 million quarter-over-quarter.
Looking ahead, SilverBow is favorably positioned compared to our peers, given the relative visibility we have in our cash flows and the flexibility we have in our development program. As noted in our press release yesterday, we plan to move forward with the gas development program in the fourth quarter, focused on our high rate return assets in Webb County. What's even more impressive is that we reaffirm our previously stated goal of $40 million to $50 million of free cash flow for 2020, including the additional development.
The second quarter marks the low point of our quarterly production profile for the year. During the third quarter, we will complete and bring online our inventory of DUCs deferred earlier this year. In the fourth quarter, we will commence drilling in our Webb County dry gas area. Given the late timing of these projects, we