Good morning and welcome to the W&T Offshore Third Quarter 2020 Conference Call. All participants will be in a listen-only mode. [Operator Instructions] Please note, this event is being recorded. I would now like to turn the conference over to Al Petrie, Investor Relations Coordinator. Please go ahead.

Thank you, Brandon. And on behalf of the management team, I would like to welcome all of you to today's conference call to review W&T Offshore's Third Quarter 2020 Financial and Operational Results. Before we begin, I would like to remind you that our comments may include forward-looking statements. It should be noted that a variety of factors could cause W&T's actual results to differ materially from the anticipated results or expectations expressed in these forward-looking statements. Today's call may also contain certain non-GAAP financial measures. Please refer to the third quarter 2020 earnings release that we issued yesterday for a disclosure on forward-looking statements and reconciliations of non-GAAP measures. At this time, I would like to now turn the call over to Tracy Krohn, our Chairman and CEO.

Thanks, Al. Good day to everyone, and thanks for joining us for our third quarter 2020 conference call. With me today are Janet Yang, our Executive VP and Chief Financial Officer; William Williford, our Executive VP and General Manager Gulf of Mexico; and Jim Hersch, our VP of Geosciences. They are all available to answer questions later during the call. Well, 2020 has been an extraordinary and difficult year for energy companies. We've seen oil prices and production impacted by the global COVID-19 pandemic, supply and demand imbalances and more recently, one of the most active Tropical Storm seasons in the Gulf of Mexico has ever seen. These events have created an environment of uncertainty. But this is not the first downturn we've weathered in the last 37 years. And we have certainly experienced active hurricane seasons in the past. Our success has always been based on maximizing free cash flow generation, operating efficiently and striving to constantly improve the profitability of our assets at any commodity price. This time has been no different. Every quarter so far in 2020, we have produced positive cash flow, and we continue to produce positive adjusted EBITDA. So turning to the largest factor impacting third and fourth quarter production. There has been an unusually large number of named storms in the Gulf of Mexico in 2020, which have caused significant production shut-ins by W&T and other operators in the Gulf. But we were pleased that we have resulted in minimal physical damage to our facilities. These storms and unplanned downtime at Mobile Bay adversely affected our third quarter 2020 production by nearly 9,000 barrels of oil equivalent per day. We've continued to experience an impact to our production in the forecourt [ph] both from earlier storms and those we've experienced in October. This…

Thank you. [Operator Instructions] Our first question comes from John White with ROTH Capital. Please go ahead.

Good morning, and thanks for taking my question.

Hi, John.

Yeah. Congratulations on managing your way through this dreadful tropical storm and hurricane season.

Thank you…

Yeah, I know. Good news on consolidating the Mobile Bay gas plant. That looks like a significant amount of expense savings. Did you want to comment on what kind of CapEx is needed for that? I would guess it's probably minimal or you would have mentioned it?

Yeah, it really is minimal. I believe it's under a couple million dollars.

Exactly.

Between $2 million and $3 million is now, yeah, is what's forecasted.

You just shutting down the one plant and then doing some plumbing work to reroute?

That is correct.

Okay. Thanks very much. I appreciate it.

Thank you, John.

Our next question comes from Michael Scialla with Stifel. Please go ahead.

Hey, this is William Hoe [ph] filling in for Mike Scialla. Could I get your thoughts on participating in November federal lease sales, given the potential of a bipartisan presidency [ph]

Sure. We're going to participate. Now, there's no reason not to just think. Federal issues, we don't do fracking out in the Gulf of Mexico as a routine event. I don't see why that should be a concern. We still need the energy for the country. And it generates really good royalties for the federal government. Apparently they need money to operate. So I think that's an excellent plan. And I think we have a proven safety record. We don't flare gas in the Gulf of Mexico. And we haven't done that for – not ever since my career. We've been very - except for very short periods of time, we might be testing well or something like that if there's a system upset. And we're geared up to manage that.

Great. Thanks for the color. I guess another question would just be, can you talk about more - a little bit more about the decision to consolidate plants in Mobile Bay? Is that an asset with growth potential or are you thinking more about improving margins and reducing some season [ph] costs?

No, I believe its increasing margins and reducing costs. Both plants are, you know, trade to gas. There was a question early on about increasing total production in the area. We believe that after further study, the gas plant that we have, that we acquired from Mobile will be adequate to manage our production over years, even with discovery or even too, that we hope will - we hope to drill in a not too distant future. And couple that with the overall decline rate in the field. We believe that if we got to the maximum capacity existing plant, we'd be really, really happy about that.

Great, thanks for the color.

Sure.

[Operator Instructions]

All right, then operator, I think I got it. I appreciate everybody listening in this year or this quarter rather. We'll talk to you again next quarter and hopefully we’ll have some more good news for you. Thanks so much.

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.