Good morning. Greetings and welcome to the W&T Offshore First Quarter Earnings Conference Call. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Lisa Elliott. Thank you, Ms. Elliott. Please go ahead.

Thank you, operator, and good morning, everyone. We're glad to have you join us for W&T Offshore's conference call to review financial and operational results for the first quarter of 2017. Before I turn the call over to the company, I would like to remind you that information reported on this call speaks only as of today, May 4, 2017, and therefore, time-sensitive information may no longer be accurate as of the date of any replay. Also, please refer to first quarter 2017 financial and operational results announcement that W&T released yesterday for a disclosure on forward-looking statements and reconciliations of non-GAAP measures. So at this time, I'd like to turn the call over to Mr. Tracy Krohn, W&T's Chairman and CEO.

Thanks, Lisa. Good morning, everyone. And thanks all of you for joining us today. With me this morning are: Tom Murphy, our Chief Operations Officer; Danny Gibbons, our Chief Financial Officer; Steve Schroeder, our Chief Technical Officer; Jim Hersch, our VP, Geoscience; Janet Yang our VP Business and Corporate Development; David Bump, our -- Dave is VP, Drilling and Completions; and David Bump, our -- Dave is VP for our drilling operations. All will be available to answer your questions after prepared remarks. So we're pretty pleased with our results in the first quarter. They were in line with our expectations, but apparently, much lightning than what was expected by some others. We produced approximately 3.8 million barrels of oil equivalent, or 42,712 barrels of oil equivalent per day, of which about 57% was oil and gas and liquids. Sequentially, that is quarter-over-quarter, our production increased 6%, primarily due to Ship Shoal 349 A-18 well at the Mahogany Field that came on line in mid-January. This really exceeds expectations and continues to produce about 5,000 barrels of oil equivalent per day, of which about 75% is crude oil. Our first quarter CapEx was about $23 million, and that was on the heels of our CapEx program of just $49 million of all of 2016. Over half of our first quarter 2017 expenses were dedicated to Mahogany Field, which included continuing A-18 well and drilling and completing the A-16 bypass well. The A-16 well is currently producing about 2,000 barrels of oil equivalent per day and is 82% oil. So our strategy has allowed us to build our cash balances and leave our revolving credit facility undrawn. And that provides the financial flexibility to pursue growth opportunities which are both organic and acquisition oriented. Net cash provided by operating activities in…

[Operator Instructions] We have a question from Madalina Iacob, Debtwire.

Tracy, I have a question for you. You said you guys hired Stifel. We also wrote about that. So it's more -- so Stifel is doing more of an M&A process? Or are they looking at some plugging and abandonment liabilities as well? Or is just trying to help you guys look at specific assets, identify assets in the Gulf and then buy them or even sell some of your assets? I just want to see if you can offer us more details about that mandate?

Okay. Madalina, thanks for the question. As we put in our script here today, [ Evan ] Stifel is helping us with the drill and acquisition front. That's where you all had a report on that. At this point in time, but we're just in the beginning of that process and hopefully we'll have something to tell you in the next few months.

Do you have any other advisers beside these guys?

We have a number of advisers to the company. Madalina, I'm not sure what you mean.

Okay. I mean, if your -- if you've engaged someone else as well to kind of -- besides I mean or simultaneously if you're working with another adviser?

I don't have any other advisers for this drill and acquisition front. Thank you.

[Operator Instructions] Mr. Krohn, there are no questions at this time.

We got a couple of more, it just popped out now here. I think we can...

Okay. We'll take Gail Nicholson from KLR group.

Tracy, just out of curiosity could provide a little bit more clarity on the standpoint of the BOEM update. Do you think that with the sole liability, you need to post anything? Or do you feel like, at this point in time, you need to post any incremental fund to persuade the BOEM?

I've reported a pretty good shift , Gail. We just finished one of the larger obligations we've abandoned our [indiscernible] we just actually finished that yesterday. So those are 2 subsea wells that came in under time and under budget. So we're moving forward with that. And I will expect that we won't have any kind of difficulty in meeting the rest of the financial obligations.

Okay, great. And then I believe that you have budgeted $74 million for G&A for '17, but you mentioned that the P&A costs are coming in like half as initially anticipated. So does that $74 million include what the current cost you're seeing or the forecasted cost that were higher? I'm just trying to understand if the P&A liability that you will be -- expenditures in '17 could potentially be lower than what you're budgeting for.

Yes, we expect that's given the success of these last 2 abandonments, and it's hard to think of abandonments' success, but we did. We did check those costs, and those were our figures starting off with and clearly we'll look around the budget on the last couple of wells, not a good impression on our when we abandon wells. So I'm hopeful that, that they will reduce those wells during the year.

Great. Well, looking forward to the wells that are coming on line in the rest of the year. And great quarter, guys.

Thank you very much.

We have a question from Mr. Al Shams, American Capital.

Yes. Tracy, I think in the news release, I think it said that the company had filed with the IRS for some tax refunds. Could you speak a bit more about that and maybe give us a sense as to what the timing might be on that?

We've scheduled it for '17 and '18. We don't know the exact timing on that. That relates to a provision in the tax code, and it allows us to write them off against revenues over about a 10-year period or so. So we were able to carry that back as a function of our revenues based on the code regarding abandonment of resources.

Well, is this a write-off or is this is a refund of previously paid taxes?

It'll be a refund.

Okay. So cash coming back to the company.

Yes, it's real cash.

Okay. And then lastly, I'm surprised we haven't seen more insider buys in the stock? Could you comment on that?

Really? I bought a bunch of them.

I guess, going back, I guess, around November, but since then.

Well, you have to understand that we're in periods of material [indiscernible] this is not public. Our employees can't buy. So we're under that, as we speak and we have been for some time.

Right, okay. I do understand that. Okay. Well, look, Congratulations on a good quarter and the good progress that we're making.

Mr. Krohn, at this time, there are no further questions. I'd like to turn the floor back over to you.

Okay. Thank you very much, operator. I think we're done. We appreciate, and we'll talk to you -- with everyone real soon. Thanks again.

Ladies and gentlemen, this does conclude today's teleconference. Please disconnect your phones.