Financial Data and Key Metrics Changes - The company reported adjusted EBITDA of $282 million and free cash flow of $107 million for Q2 2025, with a total revenue of €812 million [6][34] - The capital return program has returned over $1.1 billion to shareholders since Q4 2022 through dividends and share repurchases, with an additional $80 million returned this quarter [7][8] - The total backlog as of August 5 stands at €6.9 billion, with €1.1 billion scheduled for revenue conversion for the remainder of the year [35] Business Line Data and Key Metrics Changes - The company secured new contracts with a total contract value of $2.8 billion year-to-date, indicating strong commercial activity [15] - The Noble Stanley LaFos was extended for five additional wells, and the Noble Viking received a one-well contract valued at $34 million [10][11] - The Noble Globetrotter I secured a two-well contract in the Black Sea valued at approximately $82 million [12] Market Data and Key Metrics Changes - The global contracted rig count currently stands at 97 rigs, down from a peak of 105-106 during 2023-2024 [18] - In South America, contracted UDW demand is 43 units, with a strong outlook supported by recent tenders from Petrobras [19] - U.S. Gulf demand has softened, with 21 contracted UDW rigs, down from 22-24 last year [20] Company Strategy and Development Direction - The company is focused on optimizing its fleet following the successful integration of the Diamond acquisition, achieving a $100 million synergy target ahead of schedule [8][34] - The strategy includes managing costs and active fleet posture based on current market realities, with a focus on high-end drillships [27][28] - The company anticipates a potential rebound in the deepwater market by late 2026 or 2027, supported by a credible path back to a contracted UDW rig count of around 105 [27][40] Management's Comments on Operating Environment and Future Outlook - Management noted significant macro uncertainties affecting upstream spending, but remains optimistic about the long-term market outlook [17][38] - The company expects adjusted EBITDA to decline sequentially in Q3 due to contract rollovers and planned downtime, but anticipates a material rebound starting in 2026 [36][38] - Management emphasized the importance of cash flow maximization and returning capital to shareholders, with a target annualized free cash flow run rate of $400 million to $500 million by the second half of next year [40] Other Important Information - The company is actively pursuing opportunities in various regions, including Southeast Asia and the Americas, with significant planning and coordination required for new projects [15][16] - The harsh environment North Sea market currently represents six units of UDW demand, with expectations of muted market conditions until policy-driven impediments are removed [29][30] - Recent disposals of cold stacked drillships reflect the company's commitment to maintaining a high-spec competitive fleet [31] Q&A Session Summary Question: Guidance update clarification - Management explained the revenue guidance was lowered by about 3% due to unexercised options, while EBITDA guidance was tweaked higher due to strong cost management [43][44] Question: Strategy around key rigs - Management highlighted a strong focus on the Black Rhino, Viking, and Jerry D'Souza, with ongoing discussions for contracts that could significantly impact earnings [46][47] Question: Brazil market outlook - Management expressed a positive outlook for Brazil, anticipating flat to slightly increasing rig demand, driven by Petrobras and ongoing tenders [52][54] Question: Rig sales and retirement plans - Management confirmed that the Highlander will go to a drilling project, while the Globetrotter and Reacher are not expected to be sold for drilling purposes [55][56] Question: Near-term pricing expectations - Management indicated that day rates are currently in the low to mid-400s, with expectations for stability or slight decreases due to near-term softness [63][64] Question: Timing of Exxon rig resets - Management confirmed that new rates for Exxon rigs go into effect on March 1 and September 1, with the mechanism tracking the market effectively [73][74] Question: Impact of recent jackup market consolidation - Management stated that recent M&A activity in the jackup market does not significantly change their demand outlook or strategy [78][80] Question: Economics of current contracts - Management noted that while there may be some economic leakage in contract terms, the broader pricing strategies remain unaffected [84][86] Question: Contracting behavior and lead times - Management acknowledged unusual contracting behavior with long lead times despite softer near-term demand, driven by optimism for future projects [92][94]

Financial Data and Key Metrics Changes - The consolidated net sales for the second quarter were $92.3 million, down 29.9% year-over-year but up 19.4% sequentially from Q1 [15][19] - Adjusted EBITDA for the quarter was $10.5 million, with a margin of 11.4% of net sales, compared to $15.4 million or 11.7% of net sales in the prior year [19] - The second quarter GAAP net loss was $20.8 million, while adjusted non-GAAP net income was essentially breakeven at $1 million [19] Business Segment Data and Key Metrics Changes - The Chubby segment reported sales of $44.5 million, up 13.1% due to retail expansion and increased direct-to-consumer (DTC) sales [16] - The Solo Stove segment sales were $32.4 million, down significantly due to a decline in DTC channel sales as a result of prioritizing Minimum Advertised Price (MAP) strategies [16][19] Market Data and Key Metrics Changes - Retail channel sales remained stable compared to the same period in 2024, driven by increased demand for Chubby's products, offset by reduced replenishment for the Solo Stove segment [17] - The company ended the quarter with inventories at $84.1 million, down $24.5 million from year-end [20] Company Strategy and Development Direction - The company is focused on driving bottom-line profitability, optimizing marketing spend, and investing in new product innovation [9][10][11] - A strategic transformation plan is in place to create a structurally smaller, profit-driven business model, with no current planned acquisitions [21][24] - The company aims to enhance customer connections through relevant product experiences rather than relying heavily on discounts [9] Management's Comments on Operating Environment and Future Outlook - The consumer landscape remains challenging, with discretionary spending under pressure and consumers showing heightened sensitivity to price and value [13] - Management is optimistic about the long-term shareholder value driven by the execution of their transformational profit-focused business model [14][19] - The company anticipates a more stable revenue cadence post-2025 as new product launches accelerate [16] Other Important Information - The company completed debt refinancing, removing the going concern disclaimer and reinstating active trading on the New York Stock Exchange [6][20] - The company has a CRM database of approximately 2.5 to 3 million customers, which is a significant asset for marketing [35] Q&A Session Summary Question: Evolution of the Solo Stove customer and brand loyalty - Management noted that a significant portion of purchases are from new customers, but core customers are also engaging with new product categories [30][34] Question: Changes in pricing and inventory management - Management confirmed that they are selectively targeting key retailers and have aligned promotional strategies to help retailers sell through excess inventory [36][38]

Financial Data and Key Metrics Changes - The company reported adjusted EBITDA of $282 million and free cash flow of $107 million for Q2 2025, with a total revenue of €812 million [5][33] - The adjusted EBITDA margin was 33%, and cash flow from operations was €216 million, with net capital expenditures of €110 million [33] - The company returned an additional $80 million to shareholders through a $0.50 per share quarterly dividend, totaling over $1.1 billion in capital returns since Q4 2022 [6][34] Business Line Data and Key Metrics Changes - The company secured new contracts with a total contract value of $2.8 billion, with a total backlog of $6.9 billion as of August 5 [14][34] - Significant contracts included a six-well contract with BP for carbon capture and storage in the UK North Sea and a two-well contract with OMV in the Black Sea [12][14] - The integration of the Diamond acquisition achieved a synergy target of $100 million ahead of schedule [6][34] Market Data and Key Metrics Changes - The global contracted rig count for ultra-deepwater (UDW) currently stands at 97 rigs, down from a peak of 105-106 in 2023-2024 [16][26] - UDW demand in South America remains strong, with 43 total units contracted, while West Africa shows softness with only 12 rigs currently contracted [18][21] - The U.S. Gulf has seen a decrease in contracted UDW rigs, currently at 21, down from 22-24 last year [20] Company Strategy and Development Direction - The company is focused on optimizing its fleet and managing costs effectively in a flat market while preparing for potential growth in 2026 and 2027 [26][30] - The strategy includes disposing of underperforming rigs to maintain a high-spec competitive fleet and maximize cash flow [30] - The company is actively pursuing contracts for its key rigs, including the Black Rhino, Viking, and Jerry D'Souza, which are seen as critical for future earnings [27][46] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the deepwater market firming up by late 2026 or 2027, despite current macro uncertainties [38][39] - The company anticipates a material rebound in EBITDA starting in 2026, supported by new long-term contracts and rising deepwater demand levels [36][37] - Management highlighted the importance of disciplined cost management and cash flow maximization in the current market environment [30][39] Other Important Information - The company updated its full-year 2025 guidance, lowering total revenue expectations to $3.2 billion to $3.3 billion while narrowing the adjusted EBITDA range to €1.075 billion to €1.15 billion [35] - Capital expenditures for 2025 are expected to increase to $400 million to $450 million, reflecting investments tied to recent long-term awards [36] Q&A Session Summary Question: Guidance update clarification - The company lowered top-line guidance by about 3% but increased EBITDA guidance by about 1%, attributing the revenue decrease to unexercised options and strong customer management [42][44] Question: Strategy for key rigs - The focus is on securing contracts for the Black Rhino, Viking, and Jerry D'Souza, with strong conversations ongoing for these rigs [46][48] Question: Brazil market outlook - The company views Brazil's rig demand as stable to slightly increasing, with positive narratives from Petrobras regarding upcoming tenders [53][54] Question: Rig sales and retirement plans - The Highlander will go to a drilling project, while the Reacher and Globetrotter II are not expected to be sold for drilling purposes [56][58] Question: Day rates expectations - Current day rates for UDW rigs are in the low to mid-400s, with expectations that rates may hold firm despite near-term softness [64][66] Question: Rig reset timing and impact - Rig resets occur on March 1 and September 1, with rates set a few months prior, and the mechanism has tracked the market effectively [74][75] Question: Impact of recent M&A in the jackup market - The recent M&A activity in the jackup market does not significantly change the company's demand outlook or strategy [80][81]

Financial Data and Key Metrics Changes - Revenue for Q2 2025 was $754 million, slightly up sequentially, with adjusted EBITDA at $37 million and an adjusted EBITDA margin of 4.9%, exceeding expectations and up year on year [6][13][21] - Adjusted revenue decreased by 2.6% year over year from $774 million in Q2 2024 [13] - New business Annual Contract Value (ACV) was $150 million, up 6% year over year and 38% sequentially [11][12] Business Line Data and Key Metrics Changes - Commercial segment adjusted revenue was $365 million, down 5.9% year over year, with adjusted EBITDA of $27 million and a margin of 7.4%, down 190 basis points [14][15] - Government segment adjusted revenue decreased by 2.9% to $238 million, but adjusted EBITDA increased by 22% to $60 million, with a margin of 25.2%, up 520 basis points [16] - Transportation segment adjusted revenue increased by 7.1% to $151 million, with adjusted EBITDA of $8 million and a margin of 5.3%, up 320 basis points [17] Market Data and Key Metrics Changes - The qualified ACV pipeline remains strong at $3.3 billion, up 5% year over year and 6% since the beginning of 2025 [12] - The company expects improved performance in the Commercial segment in Q3 as some deals are pushed from Q2 [7][10] Company Strategy and Development Direction - The company is focused on portfolio rationalization, improving culture, operations, and technology, and leveraging AI to enhance capabilities [9][26] - The new Chairman of the Board, Harsh Agrawdy, is expected to contribute significantly to the company's strategic direction [9][24] - The company aims to achieve high adjusted EBITDA margins and revenue growth in the second half of the year, despite some revenue lumpiness [10][21] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the market despite uncertainties related to tariffs, AI, and economic conditions [27][28] - The company is confident in achieving year-over-year revenue growth in the second half of 2025, although it may fall slightly short for the full year [20][21] Other Important Information - The company launched a new three-year share buyback program for $50 million and repurchased approximately 2.7 million shares at an average price of $2.7 [19][20] - The net leverage ratio remained at 2.7 turns, with expectations for reduction in Q3 and Q4 [19] Q&A Session Summary Question: Comments on the potential impacts of the big beautiful bill, particularly around the SNAP program - Management indicated that the bill presents more opportunities than impediments, with potential fraud reduction opportunities in SNAP and open loop systems [31][32][34] Question: Drivers of new business signing momentum in the Commercial segment - Management noted consistent performance in new logos and capabilities, with a need for improved performance from account managers [35][36] Question: Timing of rationalization efforts and potential news by year-end - Management confirmed that work is underway and expressed hope for developments by the end of the year [37][39] Question: AI-driven solutions and client expansion into other services - Management confirmed that clients are seeking efficiency and quality improvements through AI, which is being implemented across various initiatives [43][44] Question: Market underestimation of revenue catalysts from regulatory developments - Management acknowledged real opportunities but emphasized that implementation speed by states is crucial [46][47] Question: Talent acquisition and attrition rates - Management reported improved retention and lower attrition rates, with muted wage pressure compared to the previous year [48][51] Question: Strategic shifts under the new Chairman's leadership - Management advised not to overreact to board changes, emphasizing continuity in strategic objectives [52][55]

Valvoline (VVV) Q3 2025 Earnings Call August 06, 2025 09:00 AM ET Speaker0Hello, and welcome, everyone, to the Valvoline's Third Quarter Earnings Conference Call and Webcast. My name is Becky, and I'll be your operator today. I will now hand over to your host, Elizabeth Klavanger with Investor Relations team to begin. Please go ahead.Speaker1Thank you. Good morning, and welcome to Valvoline's third quarter fiscal twenty twenty five conference call and webcast. This morning, Valvoline released results for th ...

Financial Data and Key Metrics Changes - Adjusted earnings per share (EPS) for Q2 2025 were $1.73, reflecting an 8% growth year over year when normalized for asset sales and retirements [8] - For 2025, adjusted EPS was $4.42, representing a 48% increase on the same basis [9] - Adjusted EBITDA for Q2 was $900 million, while adjusted net income was $339 million [21] - Free cash flow before growth was $914 million for Q2 2025, exceeding the same period in 2024 by $251 million [24] Business Line Data and Key Metrics Changes - The Texas segment produced $512 million of adjusted EBITDA in Q2 2025, an improvement of over 1320% from the same period in 2024 [23] - The East segment contributed adjusted EBITDA of $99 million in Q2 2025, driven by higher margins from the natural gas business [23] - The Smart Home business achieved an adjusted EBITDA of $255 million in Q2 2025, with record customer retention at over 90% [24] Market Data and Key Metrics Changes - The company announced long-term retail power agreements with a data center operator for an initial commitment of 295 megawatts, with potential growth to 1 gigawatt [7] - The Texas residential virtual power plant (VPP) program exceeded expectations, increasing the 2025 target from 20 megawatts to 150 megawatts of curtailable capacity [20] Company Strategy and Development Direction - The company is focused on expanding its footprint in attractive power markets, particularly through acquisitions and partnerships in the data center sector [11][12] - The T.H. Wharton project is on track for mid-2026 completion, supporting reliability and strengthening the Texas grid [17] - The company is actively working to expand its data center agreements and has over 4 gigawatts of joint development agreements and letters of intent across multiple sites [15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to deliver strong results for the remainder of the year, citing exceptional first-half performance [27] - The management team highlighted the importance of disciplined execution and long-term value creation [20] - The company is optimistic about the demand for additionality in the market, particularly from data centers [90] Other Important Information - The company reaffirmed its full-year financial guidance across all key metrics and is trending at the high end of the ranges [6][25] - The acquisition of a 13-gigawatt natural gas generation portfolio is expected to enhance the company's ability to serve large loads and accelerate long-term earnings growth targets [11] Q&A Session Summary Question: Can you talk about the structure of the 295 megawatts agreement? - Management views it as a C&I contract with premium margins, longer duration than average C&I contracts, and various mechanisms to protect margins [32] Question: What is the outlook for converting the 4 gigawatts of LOIs to actual contracts? - Management is optimistic but does not want to predict specific timelines due to the complexities involved [47] Question: How is the Texas residential VPP performing? - The program is exceeding expectations, with adoption rates significantly higher than initial targets [20] Question: What is the margin structure for the new data center agreement? - The margin is well protected and structured to maintain levels as initially priced, though specific details are confidential [88] Question: How are power prices in Texas expected to trend? - There is an upward movement in off-peak prices driven by large industrial loads, with potential for further increases as load data becomes available [92]

Aura Minerals (AUGO) Q2 2025 Earnings Call August 06, 2025 09:00 AM ET Speaker0Good morning, ladies and gentlemen. Welcome to Second Quarter twenty twenty five Earnings Call. This conference is being recorded, and a replay will be available at the company's website at oraminerals.com/investidoires. The presentation will also be available for download. This call is also available in Portuguese.To access, you can press the globe icon on the lower right side of your Zoom screen and then choose to enter the Por ...

Financial Data and Key Metrics Changes - The company reported net income of $34.1 million for Q2 2025 and $61.4 million for the first half of the year, resulting in an annualized return on average equity of 20.8% for Q2 and 18.6% for the first half [6][31] - Book value per share increased by 3.4% to $15.36 in the first half of the year, with a total of $77 million returned to shareholders through dividends and share repurchases [7][31] - Gross premiums for Q2 2025 were just under $190 million, reflecting a decrease of 8.7%, while for the first six months, gross premiums were up almost 2% to around $395 million [15][16] Business Line Data and Key Metrics Changes - In the short tail segment, gross premiums decreased by 8.5% for Q2 and 4.2% for the first half, with underwriting income up almost 21% in Q2 due to lower losses compared to the previous year [21][22] - The reinsurance segment saw flat gross premiums compared to Q2 last year, but a growth of about 33% for the first half, driven by strong renewals and new business [22][23] - The long tail segment faced challenges, with gross premiums down almost 12% in Q2 and 5% in the first half, resulting in an underwriting loss of $3 million for Q2 [26][27] Market Data and Key Metrics Changes - The company noted competitive pressures in various areas of its portfolio, particularly in the long tail segment, which is most affected by foreign currency movements [10][11] - The underwriting portfolio is diversified geographically, with about half transacted in non-U.S. Dollar currencies, impacting the revaluation of loss reserves [12][14] - The overall market conditions remain generally healthy, but certain areas are experiencing increased competition, particularly in property and energy lines [32][38] Company Strategy and Development Direction - The company focuses on cycle management, moving capital to areas with strong rate momentum and high margins while reducing exposure in less profitable areas [7][10] - There is a commitment to not sacrifice bottom-line profitability for top-line growth, emphasizing sustainable value generation for the long term [36][43] - The company is expanding its capabilities in specific markets while maintaining a cautious approach to underwriting in competitive segments [37][41] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating headwinds and highlighted the importance of a diversified strategy to manage cyclicality and volatility [42][43] - The outlook for the remainder of 2025 includes continued contraction in certain areas of the portfolio where profitability does not meet targets [32][34] - Management remains optimistic about finding profitable opportunities across various lines despite competitive pressures [32][39] Other Important Information - The company repurchased over 1.34 million shares at an average price of $23.28 during Q2, with approximately 800,000 shares remaining on the repurchase authorization [31] - Total assets increased by over 4% to about $2.1 billion, with total investments and cash at $1.3 billion [30] Q&A Session Summary Question: Net to gross retention on a written premium basis was 64% in the quarter, down from 73% year over year. Can you speak to that? - Management indicated that the decrease was primarily due to opportunistic buying of facultative reinsurance in a softer market, aiming to generate higher fee income [46][47] Question: Regarding the professional indemnity portfolio that will be non-renewed, what was the session level a couple of years ago versus now? - Management noted that the quota share has hovered between 60% to 85% over the years, with the intent of non-renewal aimed at improving overall profitability [48][49]

Financial Overview - The third quarter net income was $63.4 million, with diluted earnings per share (EPS) of $1.22, reflecting a 2% growth in net income but a 2% decline in diluted EPS compared to the prior year due to additional shares outstanding [5][44] - Operating revenues reached $1.024 billion, up 12% year-over-year and 7% sequentially [5][6] - Total compensation and other expenses increased by 5% year-over-year and 3% sequentially, with fixed compensation and related costs up 6% year-over-year [6][7] - The trailing twelve months results showed operating revenues up 17%, net income up 26%, and EPS of $5.87, with a return on equity (ROE) of 16.6% [8] Business Line Performance - Growth was observed in securities, payments, and FX CFDs, while declines were noted in listed and OTC derivatives, physical contracts, and interest and fee income on client balances [8][9] - Operating revenues from physical contracts decreased by 17% year-over-year, primarily due to tariff-related uncertainties [9][10] - Securities operating revenues increased by 30%, driven by a 25% increase in volumes and a 15% rise in rate per million [10][11] - The commercial segment's net operating revenues declined by 24%, primarily due to a 44% drop in physical contracts [12][13] - The institutional segment saw record net operating revenues and segment income growth of 27% and 41% respectively [13][14] - The self-directed retail segment's net operating revenues increased by 18%, with segment income up 49% [14][15] Market Data - Interest and fee income on client balances decreased by 11% year-over-year, primarily due to lower short-term interest rates [11][12] - Average daily volume in FX CFD contracts increased by 34%, contributing to the growth in the self-directed retail segment [15][16] Company Strategy and Industry Competition - The company closed the RJO and Benchmark acquisitions, which are expected to be transformational and position the company as a market leader in global derivatives [18][19] - The RJO acquisition is anticipated to enhance earnings and margins, with a focus on integrating capabilities and expanding market reach [19][22] - The Benchmark acquisition is expected to provide robust sales and trading platforms, enhancing the company's investment banking capabilities [25][26] Management Commentary on Operating Environment and Future Outlook - Management noted that the commercial segment faced challenges due to tariff uncertainties and diminished volatility in key agricultural markets [50][51] - The company remains optimistic about the potential revenue synergies from the RJO acquisition, particularly in the commercial segment [56][58] - Management highlighted the ongoing uncertainty in the macro environment but noted that volatility can be beneficial for trading activities [78][79] Other Important Information - The company is focused on expanding its custody and clearing capabilities, including launching digital asset custody solutions [31][34] - The company reported a 27% year-over-year increase in correspondent clearing balances, indicating strong growth across major business lines [33][36] Q&A Session Summary Question: Can you provide more detail on the weakness in the commercial segment? - Management attributed the weakness to tariff uncertainty and lack of volatility in the agricultural sector, impacting trading volumes and revenue capture [50][51][52] Question: Any updates on revenue synergies for RJO now that it's closed? - Management indicated that while it is difficult to quantify revenue synergies immediately, they believe the potential is significant, particularly in the commercial segment [56][58] Question: What are the longer-term plans for the retail segment? - Management discussed plans to expand the retail segment beyond FX trading, focusing on a multi-asset class offering [63][66] Question: What are the priorities for the integration of RJ O'Brien? - Management outlined a focus on realizing synergies quickly, particularly on the international side, while ensuring a seamless integration process for U.S. operations [72][75] Question: Are there any changes in behavior from large financial institutions? - Management noted no significant changes in behavior from banks regarding investment in the FCM business, indicating a continued focus on other strategic priorities [84][85]

Financial Data and Key Metrics Changes - The company reported adjusted EBITDA of approximately $212 million during the quarter, with adjusted free cash flow of $64.6 million, reflecting over 70% growth quarter over quarter [12][13] - Net cash provided by operating activities before changes in working capital totaled approximately $198 million during the second quarter, exceeding capital expenditures and common share repurchases while maintaining balance sheet strength [12][13] - Trailing twelve-month net leverage as of June 30 was approximately 0.85 times, down from the prior quarter, indicating improved financial momentum [15][16] Business Line Data and Key Metrics Changes - Average daily production totaled 1,006 million cubic feet equivalent per day, an increase of 8% year-over-year, despite midstream outages impacting production [7][8] - The company executed across all five development areas, achieving strong well performance, particularly in the Utica condensate pad in Southwest Harrison County, which delivered approximately 65% more cumulative oil than Gulfport's lake pad [9][10] Market Data and Key Metrics Changes - The all-in realized price for the second quarter was $3.61 per Mcfe, which is $0.17 above the NYMEX Henry Hub index price, highlighting the benefits of the company's differentiated hedge position and marketing portfolio [14] - Rising natural gas demand is driven by LNG expansion and increased power generation needs, presenting opportunities for Gulfport and its peers [14][15] Company Strategy and Development Direction - The company plans to allocate up to $100 million toward discretionary acreage acquisitions to secure future drilling opportunities and strengthen its inventory runway in the Utica Shale [5][11] - The share repurchase program authorization has been increased by 50% from $1 billion to $1.5 billion, demonstrating a commitment to returning value to shareholders [6][18] - The company aims to redeem all outstanding preferred stock, which could accelerate share repurchase efforts and simplify its capital structure [16][17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate a dynamic commodity environment while focusing on financial and strategic objectives [12][19] - The company anticipates continued efficiency across operations and plans to bolster its resource base, positioning itself for long-term success [12][19] Other Important Information - The company has invested approximately $17 million on maintenance leasehold and land investment through June 30, 2025, focusing on near-term drilling programs [11] - The company expects its cash tax position to be negligible for 2025, benefiting from a significant NOL position [19] Q&A Session Summary Question: Can you elaborate on the leasehold spend and its geographical focus? - The company is targeting 40 to 50 wells in Belmont County, Ohio, and Northern Monroe County, focusing on low breakeven high-quality acreage [21][22][23] Question: What are the mechanics of the preferred stock redemption? - The company issued a notice for preferred stockholders to decide on conversion or repurchase by September 5, with plans to lean on liquidity for cash redemption [24][26] Question: How will the company allocate free cash flow post-redemption? - The company aims for a leverage target around one times and will continue to evaluate opportunities for high-quality locations while considering shareholder returns [31][32][33] Question: What is the competitive return outlook for the condensate area? - The condensate area remains strong with above 70% IRR, and the company plans to maintain a balanced portfolio while monitoring commodity prices [37][38] Question: Will Gulfport participate in power contracting momentum? - The company is likely to participate through intermediaries and expects rising in-basin prices due to increased demand [54][55] Question: How will the company treat preferred equity post-redemption? - The company plans to absorb cash repurchase under its RBL, with a focus on maintaining leverage around one turn [61][62] Question: What is the expected production trajectory heading into 2026? - The company anticipates a 10% uptick in Q3, with a relatively flat Q4 leading into 2026, focusing on gas and wet gas production [68][69] Question: Will the company consider instituting a base dividend? - The management is monitoring the situation and is satisfied with the current share repurchase strategy, but is open to changes in the future [70][72]