Good day, ladies and gentlemen, and thank you for joining us. Welcome to Presidio Production Company's second quarter 2026 earnings conference call. After today's prepared remarks, we'll host a question and answer session. If anyone should require operator assistance during the conference, please press star zero from your telephone keypad. Please note that this conference is being recorded. I'll now hand the call over to Mr. Conor Fair, Director of Investor Relations. Please go ahead, sir.

Good morning, and welcome to Presidio Production Company's second quarter 2026 earnings conference call. I'm Connor Fair, Director of Investor Relations, and joining me today are our Chairman and Co-CEO, Will Ulrich, Co-CEO and Director Chris Hammock, EVP and CFO John Brawley, EVP and General Counsel Brett Barnes, and Chief Technology Officer Jason Hudak. As a reminder, today's call includes forward-looking statements. These statements are based on management's current expectations and assumptions and are subject to risks, uncertainties, and other factors, many of which are beyond the company's control, that could cause actual results to differ materially from those expressed or implied on this call. For a discussion of these risks, please refer to the cautionary language in yesterday's earnings release and the risk factors in our filings at the SEC, which are available on the investor relations section of our website. We will also refer to certain non-GAAP financial measures, the most directly comparable GAAP measures, together with definitions and reconciliations, are included in yesterday's earnings release, which is available on the investor relations section of our website. With that, I will turn the call over to Will.

Thank you, Connor. Good morning, everyone. We all have mountains to climb, the ones set before us and the ones we choose to set for ourselves. Chris and I started this business with nothing more than a friendship and an idea that we could create massive value from investing in oil and gas without ever drilling a well. a direct challenge to 150-year-old industry philosophy. I've thought often these past two weeks about the passing of Nims Purja, who died in an avalanche in Pakistan on July 30th. If you don't know his story, I encourage you to watch the Netflix documentary, 14 Peaks. Nims set out to do the impossible, to climb all 14 of the world's 8,000-meter peaks in six months, and he did it. He called it Project Possible. At Presidio, we also believe in the possible. We seek out challenges, and when we can't find them, we will create them. We choose our routes. We take risks when the moment calls for it. But our objective is to deliberately deliver on our business model over long periods of time. This quarter was no exception. A few months ago, on our first call at the public company, we told you what we intended to do. We said we would acquire producing assets and optimize them. And through closing and integrating Canyon Creek, we have. We said we would continue creating efficiencies in our balance sheet. And through refinancing our bonds and funding our first acquisition under our billion-dollar ABS acquisition warehouse with Goldman Sachs, now joined by Citizens Bank, we have. We said we would accelerate our position as the world's first agentic oil and gas company. And through this quarter's hires, led by our new Chief Technology Officer, Jason Hudak, and a team of seasoned Silicon Valley executives, we have. We set a target to raise the company's production 3% to 5% through AI, without drilling and without capital expenditure, and we are well on our way, achieving a 2.3% uplift through the second quarter. We've told you about our backlog of acquisitions, which remains as attractive as ever. And like a climber who waits for the right conditions to summit, we will make our next acquisition in short order. All of this is happening against the backdrop of major changes in the global energy landscape that I discussed on last quarter's call. And we believe FTW is one of the most compelling investment cases in American energy today. We are an operator and acquirer of producing cash-flowing American oil and gas assets. The case for Presidio rests on four pillars. Our dividend, acquisitions, optimization, and artificial intelligence. First, the dividend. The starting point for any investor in Presidio is cash return. Our annualized dividend is $1.35 per share, a yield of approximately 12% at our recent share price. Canyon Creek closed on July 1st, so the results we are reporting today contain none of its cash flow. And we intend to raise the dividend once the Canyon Creek assets are contributing to our results. We generated $15.7 million of free cash flow in the quarter, roughly $0.50 per share, against a $0.33.75 quarterly dividend. Second, growth through acquisition, backed by unique capital markets access. We have closed two acquisitions as a public company in under five months, EQVR at our formation and Canyon Creek immediately following this quarter, and our acquisition pipeline stands at approximately $17 billion. What makes that pipeline actionable rather than aspirational is our capital structure. Our $1 billion ABS acquisition warehouse, our master trust drop-down structure, and refinancing flexibility that is unprecedented in the energy ABS market mean we can move on the right asset quickly and finance it efficiently in a way that most operators our size simply cannot. During the quarter, 25 opportunities came across our desk. We took 16 through review and bid on nine. We see nearly every deal in the market, and we bid on a little over a third of it with discipline. Third, optimization, where the story has continued to evolve. Our operating discipline has always been core to our thesis. Historically, that discipline showed up primarily as expense discipline, and it still does. Least operating expense came in at $9.39 per BOE this quarter. Increasingly, the same discipline paired with our data and AI capability is showing up on the production side. Chris will walk you through the specifics, but the headline is this. We are no longer only the best operators at controlling costs. We're becoming the best operators at growing production from assets with almost zero capital expenditures. And fourth, our artificial intelligence platform that increasingly ties the other three together. During the quarter, we appointed Jason Hudak as chief technology officer. Jason is not an oil and gas person. He's a Silicon Valley technology and AI executive with nearly three decades of experience. Most recently, he's vice president of engineering at AeroSpike with prior senior roles at Twilio, RapidAPI, Foursquare, and Yahoo. Jason has built out a team of senior technology leaders across AI product, machine learning, data engineering, data science, and cloud infrastructure, drawing from companies including Twilio, Cisco, AeroSpike, VMware, and Akamon. We are pairing world-class technology talent with the operating knowledge and field data already inside Presidio. Oil and gas expertise tells us which problems matter. Technology expertise lets us solve them faster, more consistently, and at greater scale. This is not a corporate IT initiative. It is not primarily about automating back office work. As I said previously, in this business, production, revenue, and cash flow are the prize. And that is where the mandate points. I want to be specific about what this has already produced, because it's easy for the word AI to sound like a slogan rather than a result. Production for the quarter averaged 22,755 barrels of oil equivalent per day. Against our 3% to 5% full-year AI uplift target, we have now delivered approximately 2.3%. 1.4% from Doug, our production surveillance agent, and another nearly 1% from adjacent AI initiatives Chris will describe. That is measured, well-level uplift, generating $4.5 million of annualized revenue in Q2, and we are just getting started. One could see substantial additional value just attributed to where our growing AI platform sits today. We now have roughly 2,000 wells on the intelligence platform. We're on track against our 3% to 5% full-year target, and Chris is going to take you into the field and show you exactly how it happens. Turning to the quarter, the second quarter was an important period of execution. We were afforded net income attributable to Presidio of $14.4 million, or $0.34 per Class A share, and generated adjusted EBITDA of $33.2 million against the $30 million we guided you to, a beat of $3.2 million, or roughly 11%. Production averaged 22,755 BOE per day, with minimal capex of $600,000. We also completed a lower cost investment grade ABS financing. Immediately following quarter end, we closed the Canyon Creek acquisition and entered the Arcoma Basin, a transaction that, together with our lower cost of capital, supports future dividend increases, subject to board approval. Canyon Creek is our second acquisition as a public company and marks our entry into the Arcoma. That entry matters because Canyon Creek is more than a single transaction. It establishes a new land and expand platform. The first deal gives us an operating foothold, local knowledge, field infrastructure, and a team in the basin. From that foundation, we apply our operating playbook, build basin-level intelligence, and evaluate adjacent opportunities. That is how we built Presidio from the beginning, with our land and expand strategy. We enter a basin through an asset we understand, improve it through operations, and then expand around that position with discipline. We will remain selective. The objective is not to win every process or grow for growth's sake. It's to acquire the right producing assets at the right price with a clear path to operational improvement, compelling returns, and increases to the dividend. We acquire producing American oil and gas assets with existing cash flow. We make those assets more productive through operations, technology, and better decisions. We finance them efficiently, and we return a meaningful portion of the resulting cash flow to shareholders. We acquire, we optimize, we grow the dividend, we repeat.

With that, I'll turn the call over to Chris.

Thank you, Will. At Residio, value creation begins the moment we close an acquisition. We take responsibility for the people, the wells, the vendors, and the systems, and we begin approving how the asset is operated from day one. We are not relying on drilling or large capital projects. Our total capital expenditure for the quarter was $600,000 against the $33.2 million of adjusted EBITDA. Value comes instead from the thousands of daily decisions that determine production, operating costs, and cash flow across a mature asset base. I want to spend my time this morning on those decisions because they are unique in today's market. Before I get into any of that, through the first half of 2026, we have zero recordable injuries, zero days away cases, and zero vehicular incidents. Our safety committee is an employee-led. We hold monthly safety meetings with season-appropriate focus, and every post-incident review is shared with the entire field staff. Lessons travel from the field up, not just from the office down. In an operation running roughly 2,000 wells across three states, that record is a result of the deliberate work by our field organization, and I want to recognize them for it. We'll mention that we have delivered roughly 2.3% of production uplift from our AI against our 3-5% full-year target. Let me tell you exactly where that came from. First, Doug. Doug is our production surveillance agent. It continuously monitors well-level data across the operated base, flags deviations against expected behavior, and routes recommendations to the field engineer responsible for that well. Over the last three months, Doug has averaged 400 barrels of oil equivalent per day of incremental production, 1.4 percent points of our production result on its own. It's the single largest contributor to a production beat this quarter, and it did not exist a year ago. Second, AI enhanced weekend coverage. Weekends have always been a weak spot on our mature asset base for the simple reason that we run reduced manpower. So, we used AI to identify which wells carry the most downtime, attributable to the lack of weekend coverage, cross-referenced against our highest production wells, and gave our weekend pumpers an interactive table and map, a game plan for where to go and in what order. In the second quarter, weekend production increased 2.5 percent. That is a scheduling problem we have lived with for years, solved with better information rather than more headcount. Third, the AI plunger boxes. We have installed 24 of these on wells. Rather than requiring full-scale scale-off infrastructure, the unit analyzes and continuously adjusts plunger cycle timing, monitors micro events, establishes, estimates fluid volumes per cycle, and tracks plunger performance even when traditional sensors miss the signature. On the wells where it's installed, gas has gone from a pre-install average of $2.7 million per day to $3 million a day post-install, roughly a 10% lift on production and about 0.2% on total company production. We have 24 wells on it today. Once we optimize wells with this plunger box, we will move it to the next group of wells for further optimization.

None of these replace field judgment.

All three of them point field judgment at the right well, in the right order, on the right day. That distinction matters, and it is why our field organization has adopted this rather than resisted it. Now let me talk about workovers. Our wedge workover program is the clearest example what disciplined, data-directed intervention produces on a mature asset base. We have completed 25 of 69 identified jobs, with 44 remaining in the current queue, and the program projected to finish in the fourth quarter. In the second quarter, we completed 17 workovers. The payout period compressed from one year at original forecast to .75 years on actuals. PV10 improved from $2.7 million to $3.4 million, and returns exceeded 100% for these workovers. These are going better than we expected, and we have more to do. The reason this matters beyond the barrels. Each tranche of workover teaches us something about which candidates screen well and which do not, and the feedback goes straight into how the next tranche gets built. Now turning to integration, and I'll take EQBR first. The EQBR asset is 216 active wells producing approximately 2,800 net VOE per day, and the integration is substantially complete on the items that drive costs. The headline is a 30% reduction in lease operating expenses on the asset from roughly $700,000 per month in the second quarter of 2025 to $500,000 per month today. Here's how we got there. On labor, we've redesigned the asset into four routes, a new production tech position through internal promotion, and retained the fifth EQ of our EQV pumper for a Presidio route, while eliminating a contract pumper entirely. On compression, we released two units, downsized two more, and renegotiated eight, with the majority of the remaining fleet now under contract through the second and third quarters of 2027. On chemicals, we moved the vendor onto Presidio pricing, and we have completed production software integration in mid-May and have finished SCADA integration. We also continue to improve the quality and consistency and data coming off the EQBR assets because better data improves both day-to-day operating decisions and the performance of the intelligence platform over time. Now to Canyon Creek. At Canyon Creek, 42 operated wells producing approximately 3,500 net BOE per day. We took over field operations day one and immediately began running the same playbook. Already complete, we eliminated one contract route and created a company route, eliminated an additional foreman role, swapped the chemical vendor, and eliminated an excessive foam or expense by executing workovers the prior operator had deferred, and transitioned production software on day one. We also completed all five of the neglected workovers we had identified in diligence. All five were successful. Still in progress. On compression, two releases and two downsizes are complete with one additional downsize scheduled for August. On SCADA, we have completed the transition to Presidio and are now working the direct SCADA to production software integration. We also have a yard consolidation, scrapping unusable inventory, and moving some to smaller yards that are scheduled for the end of September. We are projecting a 32% reduction in lease operating expense at Canyon Creek from roughly $250,000 a month to $170,000, measured against the third quarter of 2025. Speed matters here. The first days and weeks after closing are when operating culture is established, responsibilities are clarified, and the foundation for future performance is set. We want the people closest to the wells to understand how decisions are made, what they are accountable for, and how they are empowered to improve the asset. and we want data from those wells flowing quickly into the systems our operating and engineering teams use every day. Once those systems, relationships, and disciplines are in place, we are in a far stronger position to evaluate and integrate additional assets in the basin. That's why land and expand matters. Canyon Creek is not simply another acquisition. It's an operating platform, local knowledge, field infrastructure, and data foundation from which we expand in the ARCOMA. One last item, and it gets overlooked. Over the trailing 12 months through July, we have realized approximately $13 million of cash consideration from leasehold monetization across 61 separate transactions. We are a producing asset company. We do not hold undeveloped acreage that someone else values more than we do, and turning that acreage into cash is a real repeatable part of how this model funds itself. I'll now turn the call over to John.

Thanks, Chris. This was Presidio's first full quarter as a public company following our IPO in March. I'll note the quarter does not include Canyon Creek, which closed on July 1st, immediately following quarter end. We had a strong quarter across all four key areas, production, revenue, operating expenses, and EBITDA. I'll take each in turn, because in every case, the outperformance traces to something specific. When I go through the numbers below, for revenue, I'm talking about the whole quarter and the first quarter, both the predecessor and the successor period combined, whereas for any per-unit metrics, I'm using just the successor period from March 4th to March 31, as that period contains the EQVR asset and is post-IPO, and therefore apples to apples on a per-unit basis with the second quarter. Starting with production, production averaged approximately 22,800 BOE per day, slightly above the successor period, March 4th to March 31st, with a mix of approximately 16% oil, 57% natural gas, and 27% NGLs. The increasing versus normally declining production is attributable to our AI systems and our wedge workover program. Turning to revenue, revenue, including hedge settlements, was $60.9 million, including $6.9 million of realized hedge settlements, up from $34.4 million in the first quarter. The largest drivers of increased revenues for the quarter come from our restructured hedges and an increase in oil and NGL pricing during the quarter, partially offset by a reduction in natural gas prices. On the cost side, lease operating expense was $9.39 per BOE, improved from $9.47 in the first quarter successor period. Total operating expense, including production and ad valorem taxes, was $1,122 per BOE, down from $1,168. This was the impact of enhanced production from optimization, AI, and the realization of cost efficiencies. Consolidated net income was $15.5 million, of which $14.4 million was attributable to Presidio, C-Corp, or 0.34 per Class A share. Adjusted EBITDA was $33.2 million against the $30 million we discussed on our prior call. While this was a great quarter, given current commodity prices, which trail off in the third and fourth quarters, I'd expect EBITDA to be very slightly under $30 million per quarter in the next two quarters, but summing to $90 million for the last nine months of 2026. Reconciliations of any non-GAAP measures to net income are included in the earnings release. The quarter benefited from the first full period of the restructured hedge portfolio, together with continued operating efficiencies across the asset base. Capital expenditures remain minimal, consistent with our low reinvestment model. Next, I'll spend some time on the ABS refinancing because it meaningfully improved our cost of capital. and the structure supporting our acquisition and dividend model. On June 9, we closed a $350 million investment-grade refinancing of our prior asset-backed securitization at a weighted average coupon of 6.38%. The refinancing included two investment-grade tranches of $175 million each. We reduced the weighted average coupon by 184 basis points from 8.22 to 6.38%. The transaction was used to repay our prior ABS, pay off balances outstanding under our RBL, and a $35 million hedge restrike. The refinancing also introduced an anticipated repayment date, or ARD, structure. Although the notes mature in 2041, the ARD structure reduces scheduled amortization during the first five years. Said simply, less cash is contractually directed to principal in the near term, leaving more cash available to support dividends and acquisitions. That is an important improvement from the prior ABS. We now have a lower fixed cost of capital, long-duration financing, and a more efficient near-term amortization profile. In structuring this ABS, we were intentional in creating a structure which works with our strategy and as a public company. We are keeping our capital structure as simple as possible while still taking advantage of the ABS advance rate cost of capital. The most important structural feature of our ABS is its ability to be flexible to fund We approach this flexibility through two avenues. First, the ABS includes a master trust structure which allows for the drop down of additional assets into new series of bonds.

This is relatively common in ABS.

The second structural design element is new. are first in the energy ABS market. Because we are a growing public company and transparency is important in our capital structure, we fundamentally change the core protection versus all energy ABS transactions preceding us. To date, energy ABS prepayment penalties typically require payments of all expected future interest discounted at treasuries plus 50 bps. Our notes, however, are redeemable at 102, 101 in years one and two, and are par thereafter. This allows us unprecedented flexibility to refinance multiple series of notes into one, following acquisitions or drop-downs from our warehouse. It allows us to finance future acquisitions without creating unnecessary complexity in the capital structure. We now have two options for adding assets to our ABS, utilization of the master trust structure or refinancing without a painful make-all cost. Taken together, the lower coupon reduced scheduled amortization and greater refinancing flexibility create a materially better financing platform for Presidio. Speaking of the warehouse facility, the Canyon Creek acquisition marked the first use of our $1 billion ABS warehouse facility. We funded the transaction with an initial $55 million draw under the facility, and in connection with the closing of Canyon Creek, we issued 1,962,240 shares Class A common stock to the sellers. The warehouse performed exactly as designed. It allowed us to fund a PDP acquisition efficiently at closing with the ability to move that asset into a permanent ABS financing over time. I also note that our friends at Citizen Bank, who also lead our credit facility, joined the warehouse for 40% participation, broadening our lender base and adding capacity to support future acquisitions. This demonstrates that we continue to attract world-class capital partners at an attractive cost of capital. Continuing with the balance sheet, as of June 30, total debt principal outstanding was $350 million and net debt was $296.5 million, giving pro-former effect to the $55 million draw under the ABS Wow facility used to fund Cranning Creek, net debt was $351.5 million. Based on that pro forma net debt of $351.5 million, an annualized second quarter adjusted EBITDA of approximately $132.7 million leverage was approximately 2.7 times. As for liquidity, as of June 30, we had $42.3 million of unrestricted cash and no borrowings outstanding under the RBL. Subsequent to quarter end, the borrowing base on our RBL was redetermined in the ordinary course from $65 million to $60 million. The reduction reflects the realization of production and hedges since the prior borrowing base redetermination and was expected. Therefore, liquidity pro forma for the borrowing base adjustment is currently approximately $102.3 million, consisting of $42.3 million of unrestricted cash and $60 million of available capacity under the RBL. As for hedges, we continue to maintain a multi-year commodity hedging program across oil, natural gas, and NGL production. We view hedging as an important part of our capital structure. It provides cash flow visibility, supports dividend durability, and helps us underwrite acquisitions with greater confidence. The detailed hedge table is included in the earnings release. I'll close with the acquisition market. Instability in the Middle East has led to moderately higher commodity prices. That environment has led to a plethora of companies deciding to put their assets on the market when previously they were on the fence. Deal activity has been incredibly strong. We have been actively bidding on opportunities daily and weekly. We are bidding on assets from $50 million to $2 billion. Our bids have been competitive. However, we will not overpay, and we remain disciplined on price, structure, and returns. The environment is strong, and we're getting terms at that. The combination of our PDP strategy, public platform, ABS access, and the operating track record position us well to execute our growth strategy. With that, I'll turn the call back to Will for closing remarks. Thank you.

Thanks, John. Last quarter, we said Presidio was built for a changing game in energy. This quarter, we showed what that means in practice. We delivered $14.4 million of net income and $33.2 million of adjusted dividends against $30 million guidance, a beat of 11%. We were able to increase production during the period and have now delivered 2.3% of AI-driven production uplift against our a 3% to 5% target with zero incremental capital. We cut 184 basis points off our cost of ABS capital and funded $35 million of additional hedge protection through 2027. We closed Canyon Creek and established a new operating platform in the Arcoma. And our dividend is on exactly the schedule we described to you last quarter, $1.35 per share now, with an expected raise in the future for the Canyon Creek acquisition, subject to board approval. Now that Canyon Creek is on our platform. We have an acquisition pipeline of approximately $17 billion. We will remain disciplined. We're not trying to own every asset. We're trying to own the assets where our operating model, capital structure, and technology create the greatest value. This country will need more reliable energy, more productive infrastructure, and better decisions from the physical assets already in the ground. Presidio sits directly at that intersection. We own producing American oil and gas assets. We operate them with a low reinvestment model. $600,000 of CapEx against $33 million of EBITDA, we finance them through a purpose-built capital structure, and we are building technology designed to make every well, every employee, and every acquisition more productive. That combination is rare. We believe it is strategically important, and we believe it can become extraordinarily valuable. Our work now is to execute, continue to integrate EQBR and Canyon Creek, continue improving the existing asset base, acquire the right assets at the right price, grow the dividend, and build a company worthy of the opportunity in front of us. We're still at the beginning. Thank you for joining us this morning. Operator, please open the line for any questions.

Thank you. We'll now be conducting a question and answer session. If you'd like to ask a question at this time, you may press star 1 from your telephone keypad and a confirmation tone to indicate your line is in the question queue. You may press star 2 if you'd like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. Thank you. And the first question is from the line of Neil Dingman with William Blair. Please receive your questions.

Morning, guys. Great update. My first question is likely for Chris, for you and John on acquisitions. And you've talked about this a little bit, but I'd love to here. Specifically, could you all talk about, you know, how you view the initial ops and financial initiatives and, you know, what I'd call the low hanging fruit that you all realize, you know, let's look at a transaction like Canyon Creek. And, you know, when you hit the ground running there, what you and John are looking at both on the operational and financial side that take advantage.

Yeah, Neil, this is Chris. I'll take the operational side and John can chime in on the finance side of this. So, you know, I think we look for, you know, assets that obviously fix the mix of what, you know, we look for from a basin perspective, take away all the things that we've talked about before. But I think, you know, the idea of coming in and not only having, you know, a good value at acquisition, but levers that we've used in the past around just, you know, focusing more on producing wells and not the drilling side of the business. As we've seen over and over again, as companies focus more on the development side, they're just not as keenly focused on the operations things as we are and kind of laser focused. So whether it's around the manpower or the optimization, utilization of compression, around chemical management programs that we manage in-house, which are, you know, kind of three of the big levers we use, we look to see which ones of those, you know, fit those playbooks well. We spent a lot of time around the Arcoma Basin and thought that it was very similar in those facets to the western Anadarko Basin where the majority of the assets have sat until today, and so we've spent a lot of time around there trying to figure out, you know, our ways in and where the land and expand starts, and so the Canyon Creek assets were a perfect fit for that from a company that has spent the majority of their time developing these assets, drilling new wells, you know, proving out what they were, you know, business plan was there, and not necessarily focused on the day-to-day stuff that, you know, that we do, so kind of textbook play, and we think there's a significant amount of other things to do in and around those assets and in kind of the broader end of Arcoma Basin?

From the financing side, we have two ways to finance the debt portion of an acquisition. The first would be using our ABS warehouse that we have with Goldman Sachs and now Citizens has joined. We can also fund acquisitions if they're smaller under our RBL. We're very careful when we evaluate them to make sure that anything we do would be accretive to free cash flow per share, dividend per share, things like that. We also look at the full cycle all in return and make sure that we're generating equity levered returns close to 20%. From the operational finance perspective, we look to implement an FP&A system that I think is indicative of much larger EMPs. We implement our data systems and start bringing that operational financial discipline into everyday operations.

Great. And then, Will, my second question is for you, Jason, on the AI platform specifically. Could you all give color on – you touched on this a little bit, but I'd love to hear more color on the cost savings initiatives such as Doug and, you know, how quickly you're realizing these savings.

Yeah, so Doug is a well-intelligent agent. So basically we're focused on production growth through Doug. We'll have an additional tool that we'll be rolling out here in the fall that's actually more focused on the cost-saving side of the business. But what the model is doing at this point is essentially it's getting a live look at production every day. It is in the hands of 100% of our guys who are in the field, and it's identifying anomalies from both budget and also from what we call the theoretical max production of the well, assuming that the well was flowing, you know, without any constraints and pipeline pressures or anything to hold it back, what could it be doing? And so we look at the biggest kind of discrepancies between that theoretical max production and where it's producing or from the budget, and those are flagged for each one of the pumpers and each one of our guys out in the field. so that when they open up the platform, they're able to see what's going on with their route, see where the biggest kind of underperformers are for that day. And then also through the systems that we've built, it will provide kind of a high, medium, low recommendation in terms of what it thinks the issue is and what the solution should be. And then the pumper also has the opportunity to insert kind of his own solution if it was something else and the model learns from that as a result. And so the cool thing about that is, you know, because it's learning, it's distributing the knowledge base of all of our pumpers that are, you know, pumping these thousands of wells across a pretty large geographic footprint. And it essentially allows every one of the pumpers to have access to the knowledge of every other pumper in terms of troubleshooting the production from wells. And so we're able to attribute the production growth from those kind of prioritized interactions and then also the knowledge transfer from, you know, maybe a more experienced bumper to a less experienced bumper, for example.

Thanks, guys. Thank you, Neil.

Thank you. The next questions are from the line of Sharif El-Mugabe with BTIG. Please just use your question.

Hi. Thanks. Good morning. Just one question for me, but kind of a two-parter today. You know, you talked about the global supply, demand, and balance at the moment, driving more sale and purchase activity. So I'm wondering if you're seeing any impact to deal pricing, because on the one hand, there's more, call it acreage, up for sale. But on the other hand, the near-term returns have just got a bit more attractive. And then if I could follow that up, you mentioned the Canyon Creek acquisitions assets had an attractive profile similar to what you've got in Anadarko, and I'm wondering where you see – in that context, I'm wondering where you see more opportunities for M&A through the rest of the year.

John, do you want to take this?

Yeah, absolutely. On the pricing of deals, it certainly makes deals more expensive when the strip comes up. So you see the near-term strip come up, the pricing expectations do come up. We don't mind that because we're hedging it and hedging it heavily out of the gate. And so for us, we're locking in that equity rate of return as we do these deals. So we like the environment where there are more people coming to market. The market is getting saturated with sellers, which presents more opportunity. So while the absolute price may go up, we're really looking at the discount rate of the deal and the equity levered return. And we have been very close on some deals that we were looking at in the second quarter while preserving very strong equity rates of return. So I think the impact of prices coming up, yes, makes deals more expensive. But when you lock those in through hedging and protect your equity returns and have more sellers than buyers potentially in the market, that's an attractive environment. Your second question was Ken in Preak asking where we see opportunities. We certainly see opportunities overlaying where we are currently, both in the Western Anadarko Basin and in the Alcoma Basin. We see opportunities in other areas throughout Texas, Oklahoma, and generally what we call the mid-converses, the center part of the country. I don't think we would necessarily stay just in the Arcoma or in the West End Arco Basin. We would look to places where there is not heavy drilling activity that can impact your production, where there is mature assets that fit the decline profile that we're looking for, where there are attractive opportunities, even at a higher decline rate, that might have a very strong levered rate of return. And, you know, we're focused on Texas and Oklahoma at the moment. There are some other areas we'll look at as well.

Great color. Gentlemen, thank you very much. Thank you. Thank you.

At this time, I can turn it back to Will for any closing comments.

Terrific.

Great.

Thank you all for joining, and we look forward to continuing to execute and providing you with another update in a few months.

Thank you. Ladies and gentlemen, this will conclude today's conference. We disconnect your lines at this time, and we thank you for your participation, and have a wonderful day.