Core Viewpoint - NuVista Energy Ltd. has reported strong financial and operational results for the second quarter of 2025, highlighting a disciplined approach to capital allocation and a commitment to returning value to shareholders through share repurchases and production growth. Financial Highlights - Petroleum and natural gas revenues for Q2 2025 were $267.3 million, a decrease of 17% from $323.4 million in Q2 2024 [19] - Adjusted funds flow was $134.3 million ($0.67/share), down 4% from $140.2 million ($0.68/share) in Q2 2024 [19] - Net earnings for Q2 2025 were $80.5 million ($0.40/share), a decline of 28% from $111.0 million ($0.54/share) in Q2 2024 [19] - Net capital expenditures were $81.7 million, a decrease of 33% from $121.5 million in Q2 2024 [19] - The company ended the quarter with net debt of $303 million, maintaining a net debt to adjusted funds flow ratio of 0.6x [10] Operational Highlights - Average daily production for Q2 2025 was 73,595 Boe/d, slightly above the revised guidance of 73,500 Boe/d [6] - Production composition was 29% condensate, 9% natural gas liquids (NGLs), and 62% natural gas [6] - The company successfully drilled and completed 12 and 4 wells, respectively, during the quarter [6] - Operating netback was $24.27/Boe, reflecting a 12% increase compared to Q2 2024 [19] - Corporate netback was $20.05/Boe, an 8% increase from the previous year [19] Shareholder Returns - Over $100 million was directed towards share repurchases in the first half of 2025, with a commitment to return a minimum of $100 million through buybacks [7][8] - The company has renewed its Normal Course Issuer Bid (NCIB) program, allowing for the repurchase of up to 16,398,617 common shares [6] Guidance and Future Outlook - The company anticipates reaching a production milestone of 100,000 Boe/d in Q4 2025, with a full-year production guidance of approximately 83,000 Boe/d [12][13] - Annual net capital expenditure guidance for 2025 has been reduced to $425 - $450 million from $450 million [14] - For 2026, capital expenditures are projected to be $500 - $525 million, maintaining a production outlook of approximately 100,000 Boe/d [15] - The company expects to generate approximately $150 million in free adjusted funds flow in the second half of 2025, with a focus on shareholder returns [8][16]

Financial Performance - The company's total production averaged 841,000 BOE per day[2], with oil production reaching 387,000 barrels per day[2] - The company increased cash balances by $525 million to $1.8 billion[2] - Free cash flow was $589 million[12] - Q2 2025 core earnings were $0.84 per share[18] - The company paid $156 million in dividends and $249 million in share buybacks[19] Capital Management - Capital spending was $932 million, 7% under midpoint guidance[2, 13] - The company realized $400 million of annual benefit from Business Optimization Plan[3] - Full-year capital guidance lowered to a midpoint of $3.7 billion[3] - The company expects to retire $2.5 billion in absolute debt[22] Operational Efficiency - The company achieved 40% of its Business Optimization Plan[3] - Williston Basin 2-mile well costs improved by $1 million[15] - Delaware capital efficiencies improved by 12% for drilling and 15% for completions (2025 YTD vs FY 2024)[15]

Financial Data and Key Metrics Changes - The company reported a record upstream production of 831,000 barrels per day for the first half of 2025, an increase of 28,000 barrels per day compared to the previous record set in 2024 [7] - Refining throughput reached 462,000 barrels per day in the first half of 2025, surpassing the previous best by 20,000 barrels per day [9] - Adjusted funds from operations (AFFO) for Q2 was $2,700,000,000, translating to $2.2 per share, while adjusted operating earnings were $873,000,000 or $0.71 per share [32] - Operating costs for the first half of 2025 were $6,460,000,000, down $135,000,000 compared to 2024 despite higher production and throughput [12] Business Line Data and Key Metrics Changes - Upstream production in Q2 was 808,000 barrels per day, the highest second quarter in company history, with oil sands production at 748,000 barrels per day [31] - Refining utilization remained robust at 95%, with crude throughput of 442,000 barrels per day [32] - Product sales in the first half of 2025 reached 603,000 barrels per day, marking a 15,000 barrels per day increase from the previous year [10] Market Data and Key Metrics Changes - WTI crude oil prices averaged $63.7 per barrel in Q2, a decrease of almost $8 from Q1 [28] - The light-heavy differential tightened to $2.45 per barrel, while synthetic crude improved to a $1 per barrel premium [28] - The Canadian dollar strengthened against the US dollar, moving from $0.70 to $0.72 [29] Company Strategy and Development Direction - The company is focused on operational excellence and has implemented a new system to manage reliability and performance, aiming to reduce variability across its operations [23][24] - A commitment to reduce turnaround costs by $350,000,000 per year has been established, reflecting a focus on capital efficiency and operational improvements [18] - The company plans to continue enhancing its integrated business model to deliver reliable cash flows and strong returns to shareholders [27] Management's Comments on Operating Environment and Future Outlook - Management expects continued commodity market volatility but remains optimistic about refining margins due to positive supply-demand balances and low product inventories [30] - The company is confident in its ability to achieve high-end production guidance for the year, driven by operational improvements and reduced variability [70] - Future capital expenditures are expected to remain structurally lower, with a focus on maintaining resilience and returning capital to shareholders [72] Other Important Information - The company returned nearly $1,500,000,000 to shareholders in Q2, including $697,000,000 in dividends and $750,000,000 in share buybacks [26] - The company has repurchased 2.3% of its equity float so far this year, supporting future dividend and free funds flow per share growth [27] Q&A Session Summary Question: Has the stream day capacity risen on U1 after the project enhancements? - The stream day capacity remains around 140,000 barrels per day, but the upgraded metallurgy allows for extended turnaround intervals [40] Question: Is the $8,000,000,000 net debt target still appropriate given better cash flow generation? - The $8,000,000,000 target was based on a $50 per barrel WTI world, and management is open to reevaluating this as business performance improves [43] Question: How is the company driving stronger turnaround performance? - A systematic approach has been implemented, focusing on benchmarking, risk-based work selection, and detailed planning to achieve best-in-class turnaround performance [55] Question: Can you provide an update on Fort Hills' North Pit development? - Fort Hills is delivering on its three-year plan, with ongoing stripping and dewatering activities in the North Pit, and management is confident in future production increases [62] Question: What is the outlook for refining margins and the diesel market? - The refining macro environment is robust, with strong diesel cracks and record diesel production following recent turnarounds [98]

Financial Data and Key Metrics Changes - The company reported a record upstream production of 831,000 barrels per day for the first half of 2025, surpassing the previous record by 28,000 barrels per day [6] - Refining throughput reached 462,000 barrels per day in the first half of 2025, also a record, exceeding the previous best by 20,000 barrels per day [7] - Adjusted funds from operations (AFFO) for Q2 was $2,700,000,000, translating to $2.2 per share, while adjusted operating earnings were $873,000,000 or $0.71 per share [30] - The total operating costs for the first half of 2025 were $6,460,000,000, down $135,000,000 compared to 2024, despite higher production and throughput [10] Business Line Data and Key Metrics Changes - Upstream production in Q2 was 808,000 barrels per day, marking the highest second quarter in company history [29] - Oil sands production averaged 748,000 barrels per day in Q2, impacted by turnaround activities [29] - Refining utilization remained robust at 95%, with crude throughput of 442,000 barrels per day [30] - Product sales reached 603,000 barrels per day in the first half of 2025, a record high, with a 72,000 barrels per day increase compared to 2023 [9] Market Data and Key Metrics Changes - WTI crude prices averaged $63.7 per barrel in Q2, a decrease of nearly $8 from Q1 [25] - The light-heavy differential tightened to $2.45 per barrel, while synthetic crude improved to a $1 per barrel premium [26] - Diesel cracks remained strong, contributing positively to the refining margins [96] Company Strategy and Development Direction - The company is focused on operational excellence and reducing turnaround costs, raising the annual turnaround capital reduction target from $250,000,000 to $350,000,000 [17] - A new operational excellence system has been implemented to standardize performance across sites, aiming for best-in-class operations [22][23] - The company plans to maintain a disciplined approach to capital expenditures, with a revised guidance range of $5,700,000,000 to $5,900,000, reflecting a structural reduction [21][72] Management's Comments on Operating Environment and Future Outlook - Management anticipates continued commodity market volatility but remains optimistic about refining margins due to positive supply-demand balances [28] - The company is committed to returning excess funds to shareholders through buybacks and dividends, having returned $13,600,000,000 since the beginning of 2023 [25] - Future growth projects and long-term plans will be discussed at the end of 2025, as the company aims to achieve its three-year plan ahead of schedule [90][91] Other Important Information - The company completed significant capital projects under budget, including the Base Plant U1 coke drum replacement and the Syncrude Mildred Lake West mine extension [19][20] - The balance sheet remains strong with net debt at $7,700,000,000, and the company expects to manage working capital effectively [31] Q&A Session Summary Question: Has the stream day capacity risen on U1 after the project? - The stream day capacity remains around 140,000 barrels per day, but the upgraded metallurgy allows for extended turnaround intervals [40] Question: Is $8,000,000,000 the right net debt target going forward? - The $8,000,000,000 target was set based on a $50 per barrel WTI environment, and management is open to reevaluating this as cash flow generation improves [42][43] Question: How is the company driving stronger turnaround performance? - A systematic approach has been implemented, focusing on benchmarking, risk-based work selection, and detailed planning to achieve best-in-class turnaround performance [55][56] Question: Can you provide an update on Fort Hills' North Pit development? - Fort Hills is on track with its three-year plan, and the North Pit development is progressing as planned, with confidence in increasing production [61] Question: When will the company discuss growth projects like Firebag expansion? - The company plans to provide more details on growth projects at the end of 2025, as it aims to achieve its current three-year plan ahead of schedule [90][91] Question: What is the outlook for the refining macro environment? - The refining environment is expected to remain robust, particularly for diesel, with strong local and global demand supporting the business [96]

Financial Data and Key Metrics Changes - Cotera Energy reported revenues of $1.7 billion for the quarter, with 52% coming from oil production, reflecting a 7% increase in oil contribution quarter over quarter [15][18] - Net income was $511 million or $0.67 per share, while adjusted net income was $367 million or $0.48 per share for the quarter [15][18] - Cash operating costs totaled $9.34 per BOE, down 6% quarter over quarter [15][18] Business Line Data and Key Metrics Changes - Oil production was 2% above the midpoint of guidance, while natural gas production exceeded the high end of guidance due to outperformance in all business units [14][15] - The Permian had 49 net turn in lines, Anadarko had 9, and Marcellus had 3 during the quarter [14][15] - The company expects total production to average between 740 and 790 MBOE per day for the year, with oil between 158 and 168 MBO per day and natural gas between 2.75 and 2.9 Bcf per day [16][17] Market Data and Key Metrics Changes - There has been a weakening in natural gas prices and a softening of oil markets due to the cessation of OPEC plus curtailments [8][9] - The company maintains a steady operational cadence despite commodity price fluctuations, supported by its asset quality and capital allocation discipline [8][9] Company Strategy and Development Direction - Cotera aims to grow free cash flow and demonstrate its durability, with a focus on maintaining a low reinvestment rate of around 50% of cash flow [10][18] - The company is committed to a fortress balance sheet, prioritizing deleveraging and shareholder returns through dividends and share repurchases [20][21] - Cotera plans to maintain consistent activity across its business units, with a focus on capital efficiency and cost reductions [22][23] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term prospects for the industry and Cotera, despite facing headwinds [11][12] - The company anticipates a gradual recovery in oil production from the Wyndham Row wells, with a conservative approach to future forecasts [36][37] - Management highlighted the importance of maintaining operational consistency and capital efficiency in a volatile market [80][82] Other Important Information - The company announced a quarterly dividend of $0.22 per share, representing one of the highest yielding base dividends in the industry at over 3.5% [20] - Cotera has repaid $350 million of its outstanding term loans in 2025, with plans to fully repay the remaining $650 million during the year [20][21] Q&A Session Summary Question: Can you provide an update on the Harkey issues and production timeline? - Management indicated that remediation efforts have been successful, and while production will take time to return to optimal levels, they are optimistic about the Harkey program moving forward [35][36] Question: Is now the right time to lean into the gas program given current production levels? - Management noted that they see growing demand with LNG exports and believe their Marcellus program offers the best returns currently [37][38] Question: What are the expectations for oil growth in the second half of the year? - Management expressed high confidence in achieving their oil guidance, citing a strong pipeline of high working interest projects coming online [42][44] Question: How does the company view the potential for federal lease sales in New Mexico? - Management hopes to be competitive in future federal lease sales, which they view as a desirable opportunity [90][91] Question: What is the strategy regarding share buybacks and debt repayment? - Management emphasized that debt repayment is a priority, but they also see potential for increased buyback activity in the latter half of the year as cash flow remains strong [88][89]

Financial Data and Key Metrics Changes - Coterra Energy reported revenues of $1.7 billion for Q2 2025, with 52% coming from oil production, reflecting a 7% increase in oil contribution quarter over quarter due to higher oil volumes [14] - Net income for the quarter was $511 million, or $0.67 per share, while adjusted net income was $367 million, or $0.48 per share [14] - Cash operating costs were $9.34 per BOE, down 6% quarter over quarter, aligning with annual guidance [14] - Free cash flow for the quarter was $329 million after cash capital expenditures [14] Business Line Data and Key Metrics Changes - Oil production was 2% above the midpoint of guidance, while natural gas production exceeded the high end of guidance due to outperformance across all business units [13] - The Permian region had 49 net turn-in-lines, while Anadarko and Marcellus had 9 and 3 net turn-in-lines, respectively [13] - The company expects total production to average between 740 and 790 MBOE per day for 2025, with oil between 158 and 168 MBO per day and natural gas between 2.75 and 2.9 Bcf per day [15][17] Market Data and Key Metrics Changes - There has been a weakening in natural gas prices and a softening of oil markets due to the cessation of OPEC plus curtailments [7] - The company is maintaining nine rigs in the Permian, two in the Marcellus, and one to two in the Anadarko, ensuring consistent activity through 2025 [8] Company Strategy and Development Direction - Coterra aims to grow free cash flow and demonstrate its durability, focusing on capital efficiency and maintaining a low reinvestment rate of around 50% of cash flow [9][17] - The company is committed to maintaining a strong balance sheet and prioritizing deleveraging, with plans to fully repay remaining term loans during 2025 [20][21] - Coterra is optimistic about the long-term prospects for the industry, emphasizing the importance of having a deep inventory of low-cost assets [10] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the perpetual uncertainty in commodity prices but expressed confidence in the company's ability to maintain steady operations [7] - The company plans to update its three-year outlook in February, underpinned by steady cash flow and investment returns [8] - Management remains confident in the durability of free cash flow and the potential for production growth despite industry challenges [9] Other Important Information - Coterra announced a quarterly dividend of $0.22 per share, representing one of the highest yielding base dividends in the industry at over 3.5% [20] - The company repaid an additional $100 million of outstanding term loans during the quarter, bringing the total term loan paydown to $350 million in 2025 [20] Q&A Session Summary Question: Can you provide an update on the Harkey issue and production timeline? - Management expressed high confidence in the remediation efforts and noted that production is expected to gradually improve over time [36][37] Question: Is now the optimal time to lean into the gas program given current production levels? - Management highlighted growing demand from LNG exports and emphasized the quality and cost efficiency of their Marcellus program [39][40] Question: What are the expectations for oil growth in the second half of the year? - Management indicated high confidence in achieving the midpoint of oil guidance due to several high working interest projects coming online [44] Question: How does the company view the potential for federal lease sales in New Mexico? - Management expressed hope to participate in future federal lease sales, viewing them as a competitive opportunity [90][91] Question: Will the company consider more aggressive buybacks once term loans are paid off? - Management confirmed that once the term loans are repaid, they expect to balance buybacks with shareholder returns [66][88]

Financial Data and Key Metrics Changes - The company has achieved over 60% growth in both net proved reserves and net production since 2020, while increasing oil percentage and production margins [4] - The share count remained flat, resulting in no dilution, and leverage was reduced by more than a full turn from 2020 to the present [5] Business Line Data and Key Metrics Changes - The Uinta Basin showed significant production growth quarter over quarter in Q2 compared to Q1, with strong performance expected to continue [9][10] - The company added 10 net wells to the drilling program for approximately $75 million, primarily associated with non-operated projects [13][14] Market Data and Key Metrics Changes - The company is experiencing a shift in production profile, with increased volumes coming from strong performance in the Uinta Basin [44] - The marketing team is optimizing sales to maximize realizations, particularly focusing on transportation costs to Salt Lake City versus Houston [69] Company Strategy and Development Direction - The company aims to continue accessing underappreciated assets and applying technical skills to grow shareholder value [5] - There is a focus on maximizing capital efficiency and repeatability in the Uinta Basin, with plans to evaluate the entire development of the area [26] Management's Comments on Operating Environment and Future Outlook - Management remains cautious on natural gas due to the ability to develop supply quickly, but sees potential for structural demand changes in the future [62][63] - The company is closely monitoring commodity prices and plans to maximize free cash flow over the next two to three years [30] Other Important Information - The company has a $500 million share buyback program authorized by the Board, indicating potential opportunistic buybacks in the future [39] - The company expects capital expenditures to decrease in Q4 due to reduced operated rig activity [18] Q&A Session Summary Question: Cash tax obligations for 2026 and beyond - Management indicated that cash tax obligations for 2026 would likely be similar to current levels, depending on commodity prices [7][8] Question: Uinta production capacity and future expectations - Management expressed optimism about Uinta production, noting strong performance and additional South Texas and Permian assets coming online in the second half of the year [9][10] Question: Sustainability of Uinta performance - Management believes the strong performance in Uinta is sustainable due to the potential for inventory expansion and repeatable drilling programs [34][35] Question: Shareholder returns and leverage targets - Management is close to achieving leverage targets and may opportunistically step in for share buybacks if market conditions stabilize [36][38] Question: Update on Uinta program and testing of intervals - Management confirmed that most of this year's program focused on the lower cube, with plans to evaluate additional zones in the future [42][43] Question: Marketing strategy and logistics improvements - Management clarified that recent improvements in logistics and marketing were due to operational execution rather than a change in strategy [60]

Financial Data and Key Metrics Changes - Antero Resources increased its production guidance while reducing capital expenditures (CapEx) for the second consecutive year, with maintenance production targets rising 5% from under 3.3 Bcf equivalent per day to over 3.4 Bcf equivalent per day, while maintenance capital requirements declined by 26% from $900 million to $663 million [5][6] - The company reported $260 million of free cash flow in the second quarter, with nearly $200 million used to reduce debt, resulting in a total debt reduction of 30% or $400 million year to date [20][21] Business Line Data and Key Metrics Changes - Antero's realized C3 plus price averaged $37.92 per barrel in the second quarter, with expectations for attractive premiums to the NGL benchmark in the second half of the year [8][9] - C3 plus realizations improved year over year as a percentage of WTI, averaging 59% of WTI in 2025 compared to 50% in 2024 [9][10] Market Data and Key Metrics Changes - The company anticipates that new Gulf Coast export capacity will lead to higher exports and a rebalancing of inventories, further strengthening Mont Belvieu NGL prices [12] - Overall U.S. LPG exports averaged over 1.8 million barrels per day, which is 6% higher than the same period last year [12] Company Strategy and Development Direction - Antero plans to continue targeting maintenance capital at future growth opportunities tied to regional demand increases, with a focus on maintaining a low absolute debt position to provide flexibility [22][23] - The company is uniquely positioned to participate in both LNG export growth and expected regional power demand growth due to its extensive resource base and integrated midstream assets [19][22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the positive demand trends for natural gas, with expectations for significant demand growth driven by new LNG facilities and regional power demand [14][17] - The company does not expect to pay any material cash taxes for the next three years due to tax attributes and recent tax changes [35][36] Other Important Information - Antero has hedged approximately 20% of its expected natural gas volumes through 2026 with costless collars, lowering its 2026 free cash flow breakeven to $1.75 per Mcf [6][7] - The company has a strong focus on maintaining capital efficiency, with the lowest maintenance capital per Mcfe among its peers at $0.53 per Mcfe [5][6] Q&A Session Summary Question: Implications of Gulf Coast LPG export capacity on pricing - Management expects modest dock premiums but overall higher benchmark prices due to increased export capacity [26] Question: Mix of buybacks and debt reduction - The company plans to be opportunistic, balancing debt reduction and share buybacks based on market conditions [28][29] Question: Maintenance CapEx outlook for 2026 - Management indicated the ability to continue reducing maintenance CapEx while increasing production [32] Question: Tax impact on cash flow - The company expects a similar uplift from recent tax changes, allowing for better treatment of interest expenses and bonus depreciation [35][36] Question: Future of in-basin demand projects - Management is optimistic about the potential for new in-basin demand projects but will only pursue those that are accretive to overall pricing [78][79] Question: Shareholder returns and potential dividends - The company is focused on debt reduction and share buybacks, with no immediate plans for dividends but open to future considerations based on market conditions [85][86]

Financial Data and Key Metrics Changes - Magnolia reported total adjusted net income of $81 million for Q2 2025, with adjusted EBITDAX of $223 million and D&C capital expenditures of $95 million, resulting in a reinvestment rate of 43% [6][15] - The company generated free cash flow of $107 million and returned 72% of that to shareholders through dividends and share repurchases, totaling approximately $78 million [7][15] - Annualized return on capital employed was 18%, with pretax operating margins at 34% [6][19] Business Line Data and Key Metrics Changes - Total production volumes reached 98,200 barrels of oil equivalent per day, reflecting a 9% year-over-year growth, with oil production at a record 40,000 barrels per day, also a 5% year-over-year increase [7][8] - The company raised its full-year 2025 production growth guidance to approximately 10%, up from a prior range of 7% to 9% [8][19] Market Data and Key Metrics Changes - Total revenue per BOE declined approximately 13% year-over-year due to price fluctuations, partially offset by increases in natural gas and NGL prices [18] - Total adjusted cash operating costs decreased by 4% to $10.7 per BOE, with LOE at a low of $4.88 per BOE during the quarter [18] Company Strategy and Development Direction - Magnolia continues to pursue a strategy of appraising, acquiring, growing, and exploiting its assets, particularly in the Giddings area, which has seen a 20% increase in development acreage [9][10] - The company aims to maintain balance sheet strength and capital discipline while generating high pretax operating margins and returning significant free cash flow to shareholders [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the Giddings field's potential for further capital efficiencies and production growth, emphasizing the importance of achieving the best wells with minimal capital [26][28] - The company anticipates minimal cash taxes for 2025 and 2026 due to recent legislative changes, which should benefit future cash flows [36][20] Other Important Information - Magnolia completed multiple bolt-on acquisitions totaling about $40 million, adding approximately 18,000 net acres in Giddings and increasing production by roughly 500 BOE per day [9][10] - The company maintains a strong liquidity position with $252 million in cash and an undrawn $450 million revolving credit facility, totaling approximately $700 million in liquidity [17] Q&A Session Summary Question: Free cash flow trends and capital efficiency - Management acknowledged the importance of balancing growth and capital efficiency, noting that they are focused on generating the highest free cash flow with the least capital [24][25] Question: Product mix and capital allocation - Management clarified that while there are variations in the Giddings area, the focus remains on drilling good wells across the field to optimize returns [30][31] Question: Minimal cash taxes due to new budget bill - Management confirmed that cash taxes for 2025 are expected to be negligible, with similar expectations for 2026 under current pricing conditions [35][36] Question: Oil production trajectory and growth expectations - Management indicated that oil production is expected to continue growing in the second half of the year, with a slight increase anticipated for 2026 [43][44] Question: M&A outlook and future acquisitions - Management expressed optimism about ongoing smaller acquisition opportunities in core areas, while larger acquisitions may present complexities [46][47] Question: Appraisal wells and expansion criteria - Management stated that appraisal wells typically account for about 10% of overall activity, with ongoing efforts to identify new opportunities [73][74] Question: Deferred completions and spare capacity - Management confirmed that about six completions are deferred into 2026, with plans to utilize spare capacity depending on market conditions [78][80]

Financial Data and Key Metrics Changes - Magnolia reported total adjusted net income of $81 million for Q2 2025, with adjusted EBITDAX of $223 million and D&C capital expenditures of $95 million, resulting in a reinvestment rate of 43% [5][12] - The company generated free cash flow of $107 million and returned 72% of that, approximately $78 million, to shareholders through dividends and share repurchases [5][12] - Annualized return on capital employed was 18%, with pretax operating margins at 34% [5][12] Business Line Data and Key Metrics Changes - Total production volumes reached 98,200 barrels of oil equivalent per day, reflecting a year-over-year growth of 9%, with oil production at 40,000 barrels per day, marking a 5% increase year-over-year [6][12] - The company raised its full-year 2025 production growth guidance to approximately 10%, up from a prior range of 7% to 9% [6][18] Market Data and Key Metrics Changes - Total revenue per BOE declined approximately 13% year-over-year due to price fluctuations, although this was partially offset by increases in natural gas and NGL prices [17] - Total adjusted cash operating costs decreased by 4% to $10.7 per BOE, with LOE at a low of $4.88 per BOE during the quarter [17] Company Strategy and Development Direction - Magnolia continues to pursue a strategy of appraising, acquiring, growing, and exploiting its assets, particularly in the Giddings area, which has seen a 20% increase in development acreage [8][9] - The company aims to maintain balance sheet strength and capital discipline while generating high pretax operating margins and returning significant free cash flow to shareholders [10][11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the Giddings field's potential for continued production growth and capital efficiencies, emphasizing the importance of modern technology in unlocking previously undeveloped resources [24][26] - The company plans to defer several well completions into 2026, maintaining a capital spending estimate for 2025 in the range of $430 million to $470 million [6][18] Other Important Information - Magnolia completed small bolt-on acquisitions totaling about $40 million, adding approximately 18,000 net acres in Giddings and enhancing its production capabilities [8][9] - The company has maintained a strong balance sheet with total liquidity of approximately $700 million, including cash and an undrawn revolving credit facility [16] Q&A Session Summary Question: Free cash flow trends and capital efficiency - Management indicated that free cash flow is trending positively, with a focus on achieving the best wells with the least capital to maximize free cash flow [22][24] Question: Product mix and capital allocation - Management clarified that while there are variations in the Giddings area, the overall goal is to drill good wells across the field, with a focus on learning and optimizing capital allocation [27][28] Question: Minimal cash taxes due to new legislation - Management confirmed that cash taxes for 2025 are expected to be negligible, with similar expectations for 2026 under current product prices [32][33] Question: Oil production trajectory and growth expectations - Management expects continued growth in oil production in the second half of the year, with a projection of approximately 99,000 barrels per day for Q3 [39][40] Question: M&A outlook and future acquisitions - Management sees ongoing opportunities for smaller bolt-on acquisitions in the Giddings area, with a focus on maintaining a strategic approach to growth [42][43] Question: Appraisal wells and expansion criteria - Management stated that appraisal wells typically account for about 10% of overall activity, with ongoing efforts to fold in new opportunities to enhance results [70][71]