Our business strategy is to provide long-term growth in net asset value per share, through the growth and expansion of our natural gas and crude oil reserves and production.
Several key elements of our business strategy include the following:
Develop our core acreage position in the Haynesville. We seek to maximize the value of our existing assets by developing and exploiting our properties with the lowest risk and the highest potential rate of return. In the current commodity price environment, we intend to focus on the development of our core acreage position by drilling in the Haynesville, which has gone through a renaissance due to exceptional returns driven by longer laterals and higher proppant concentrations.
Maintain optionality on our other acreage positions. We concentrate our efforts in areas where we can apply our technical expertise and where we have significant experience.
Focus on maximizing cash flow margins. We intend to maximize operating cash flow by focusing on our higher-margin plays, which currently is our core Haynesville position in North Louisiana.
Maintain a Conservative Capital Structure. As of June 30, 2018, we had approximately $54 million of net debt, comprised of approximately $2 million of cash and $56 million of debt. $6 million is in the form of a revolving credit facility and $50 million is associated with 2nd lien notes. The maturity date of the 2nd lien notes is March 30, 2020 and are convertible into the Company's common stock at $21.33 per share, subject to adjustments.