Diamondback Energy Inc (FANG) 2025 Q1 法說會逐字稿

Good day and thank you for standing by. Welcome to the Diamondback Energy first quarter 2025 earnings conference call. At this time, all participants are in a listen-only mode. (Operator Instructions)

您好，感謝您的支持。歡迎參加 Diamondback Energy 2025 年第一季財報電話會議。此時，所有參與者都處於只聽模式。（操作員指示）

Please be advised that today's conference is being recorded. I would now like to hand the conference over to your first speaker today, Adam Lawlis, VP of Investor Relations. Please go ahead.

請注意，今天的會議正在錄音。現在，我想將會議交給今天的第一位發言人，投資者關係副總裁亞當·勞利斯 (Adam Lawlis)。請繼續。

Thank you, Lauren. Good morning and welcome to Diamondback Energy's first quarter 2025 conference call. During our call today, we will reference an updated investor presentation and letter to stockholders, which can be found on Diamondback's website.

謝謝你，勞倫。早安，歡迎參加 Diamondback Energy 2025 年第一季電話會議。在今天的電話會議中，我們將參考更新後的投資者介紹和致股東的信函，可在 Diamondback 的網站上找到。

Representing Diamondback today are Travis, Chairman and CEO, Kaes Van't Hof, President, Danny Wesson, CEO, and Jere Thompson, CFO.

今天代表 Diamondback 的是董事長兼執行長 Travis、總裁 Kaes Van't Hof、執行長 Danny Wesson 和財務長 Jere Thompson。

During this conference call, participants may make certain forward-looking statements relating to the company's financial condition, results of operations, plans, objectives, future performance and businesses. We caution you that actual results could differ materially from those that are indicated in these forward-looking statements due to a variety of factors. Information concerning these factors can be found in the company's filings with the SEC.

在本次電話會議中，參與者可能會對本公司的財務狀況、經營績效、計畫、目標、未來績效和業務做出某些前瞻性陳述。我們提醒您，由於各種因素，實際結果可能與這些前瞻性聲明中所示的結果有重大差異。有關這些因素的資訊可以在公司向美國證券交易委員會提交的文件中找到。

In addition, we will make reference to certain non-GAAP measures. The reconciliation with the appropriate GAAP measures can be found in our earnings release issued yesterday afternoon. We'll now turn the call over to Travis.

此外，我們也將參考某些非公認會計準則指標。在我們昨天下午發布的收益報告中可以找到與適當的 GAAP 指標的對帳。我們現在將電話轉給特拉維斯。

Thank you, Adam. I hope everyone has had a chance to review our stockholder letter that was released last night. Most of our commentary day will be found, inside that letter. Operator, would you please open the line for questions?

謝謝你，亞當。我希望大家都有機會閱讀我們昨晚發布的致股東信。我們當天的大部分評論都可以在那封信中找到。接線員，請打開熱線回答問題好嗎？

Thank you. (Operator Instructions) Neil Mehta, Goldman Sachs, and Co.

謝謝。（操作員指示） Neil Mehta，高盛公司

Yeah, good morning, Travis, Kaes and Travis, congratulations as you position for retirement and Kaes, congratulations again on taking on the new role. Some, I think some important news this morning around changes in the activity plans and in response to obviously what is a tougher oil macro. So Travis, can you spend some time talking about The thought process that went into the decision and how you're thinking about the approach from here.

是的，早安，崔維斯、凱斯和崔維斯，祝賀你們退休，再次祝賀凱斯擔任新職務。我認為今天早上有一些重要的新聞，涉及活動計劃的變化以及顯然是對更嚴峻的石油宏觀經濟的回應。那麼特拉維斯，您能否花點時間談談做出該決定的思考過程以及您如何看待現在的方法。

Sure, Neil, our job is to allocate capital allocate, capital for the most profit we can for the shareholders who own the company. Part of our role is we have to have a view of the macro as we allocate capital, and the current view of the macro is certainly challenging at best. Over the weekend, OPEC made the decision to put an extra million barrels a day on the market and what's already an oversupply world, and we still, are looking at headwinds with what we're seeing is, as slowing economies around the world, which obviously has a read through to demand.

當然，尼爾，我們的工作是分配資本，為公司股東獲取盡可能多的利潤。我們的職責之一是在分配資本時必須具備宏觀視角，而當前的宏觀視角無疑是具有挑戰性的。上週末，石油輸出國組織 (OPEC) 決定向市場額外投放 100 萬桶/日的石油，而全球石油供應已經過剩，我們仍然面臨阻力，我們看到的是全球經濟放緩，這顯然對需求產生了影響。

So, what we tried to put together was a response to those kind of macro conditions which by taking, $400 million out of our capital budget and three drilling rigs and one frac spread allowed us to maximize the CapEx production while minimizing volume impact and at the same token provides us a runway for maximum flexibilities to respond in either direction in the future quarters as this evolving supply demand balance works its way through the system.

因此，我們試圖對這些宏觀條件做出反應，透過從我們的資本預算中拿出 4 億美元，以及三個鑽井平台和一個壓裂裝置，使我們能夠最大限度地提高資本支出產量，同時最大限度地減少產量影響，同時為我們提供了一個最大的靈活性，以便在未來幾個季度中隨著不斷變化的供需平衡在系統中發揮作用而做出反應。

So that's sort of the background of what we talked to the Board about, well before Saturday's decision by OPEC. And again, it stems how can we create the most value when we allocate capital and when you look at what we've done with this announcement, we've actually made our program more capital efficient by spending less dollars this year.

這就是我們在歐佩克週六做出決定之前與董事會討論的背景。再次強調，這源於我們如何在分配資本時創造最大的價值，當你看到我們對此公告所做的工作時，你會發現我們今年實際上透過減少資金支出使我們的計劃更加資本高效。

Travis, the follow up on that is we certainly reduced your cash CapEx by $400 million. The impact on production is not that significant, at least for 2025. And so, is that a function of the delay between changes in activity and in production or is that you guys were just really tracking well in terms of your productivity to start the year?

崔維斯，接下來我們肯定會將您的現金資本支出減少 4 億美元。至少到2025年，對生產的影響就沒那麼顯著。那麼，這是活動和生產變化之間的延遲的結果嗎？還是說你們在年初的生產力方面確實追蹤得很好？

Yeah. let me give you some colour on that because I think it's important, right. On the outside it looks like a 1% hit to production, but if you just look at. Q2, peak to trough, we're going to probably, be down 20,000 net barrels of oil a day, which on a gross basis is close to 30, so we had a great April, things were humming along. We were well over 500,000 net barrels of oil a day.

是的。讓我給你解釋一下，因為我認為這很重要，對吧。從表面上看，這似乎對生產造成了 1% 的打擊，但如果你看一下。第二季度，從高峰到谷底，我們的石油產量可能每天淨減少 20,000 桶，總量接近 30，因此，我們度過了一個美好的四月，一切進展順利。我們每天的淨石油產量遠超過50萬桶。

Obviously now, hitting the brakes a little bit with the reduction in the frac crews. And so if you think about it, we're about 475,000 barrels a day, net Q1. Q2 guys round numbers is about 495, and then we're going to decline off a bit into Q3 down to about 485 and at that point in today's market, hold that flat.

顯然，現在壓裂人員的減少會稍微減緩一些。如果你仔細想想，我們第一季的淨產量約為每天 475,000 桶。第二季的數字大約是 495，然後我們將在第三季略微下降到 485 左右，在今天的市場中，保持這個水準。

So you know on the outside it looks like a flattish program, but and this is why we've kind of been saying that we think, gross oil production is coming down in the Permian in the US. You just look at ours, for example, going from five frac crews down to four is going to be a 30,000 barrel a day impact in just a quarter.

所以你知道，從表面上看，這似乎是一個平淡無奇的計劃，但這就是為什麼我們一直在說，我們認為美國二疊紀盆地的石油總產量正在下降。以我們為例，壓裂隊伍從 5 個減少到 4 個，將在短短一個季度內對日產量造成 30,000 桶的影響。

Thank you. Thanks Man.

謝謝。謝謝老兄。

Thank you, thanks Neil.

謝謝，謝謝尼爾。

Thank you. Scott Hanold, RBC Capital Market.

謝謝。加拿大皇家銀行資本市場 (RBC Capital Market) 的 Scott Hanold。

Yeah, thanks, and Travis, again, congrats to on, your next stage, and look, I would say it's unfortunately it has to be on a bad macro note, but I think it's, a testament to what you've created that Diamondback is able to kind of manage to this, pretty well.

是的，謝謝，特拉維斯，再次祝賀你進入下一階段，看，我想說不幸的是，這必須是一個糟糕的宏觀註釋，但我認為這證明了你所創造的 Diamondback 能夠很好地做到這一點。

My first question is you're welcome. My first question is just your broad view of the oil macro. I thought it was pretty interesting in your investor letter how you thought the, US oil production was ready to roll over and obviously you all have, some pretty good eyes and, feel out on the ground, can you give us a sense of what you're seeing, real time, in the Permian Basin and other places and, your view on, Maybe where oil production goes, from here, and it's more of a US perspective versus, a Diamondback one.

我的第一個問題是，不客氣。我的第一個問題只是您對石油宏觀的整體看法。我認為您在致投資者的信中提到了非常有趣的事情，您認為美國的石油產量即將翻番，顯然你們都有很好的洞察力和實地考察的經驗，您能否實時告訴我們您在二疊紀盆地和其他地方看到的情況，以及您對石油產量未來走向的看法，這更多的是從美國的角度而不是 Diamondback 的角度。

Sure, well, certainly as the Permian Basin goes, US production is going to follow that, and at roughly 6 million barrels of oil a day we've got a base decline that we have to offset every year of about 2.5 million barrels a day. And it doesn't take much capital to come out of the equation for that base decline to really be seen in production. And so, you can apply that also, to the 13 million barrels a day that the US is producing, that's roughly 4.5 million or 5 million barrels a day of production that has to be replaced.

當然，隨著二疊紀盆地的開發，美國的石油產量也會隨之下降，以每天約 600 萬桶的產量為基礎，我們每年必須彌補約 250 萬桶的產量下降。而且不需要太多資本就能在生產上真正看到基礎下降的現象。因此，你也可以將其應用到美國每天生產的 1,300 萬桶石油上，這意味著每天大約有 450 萬或 500 萬桶的產量需要補充。

So, I think as capital continues to come out of the investment equation. You know this decline that we're on is going to be is really going to be magnified and because we are in the more mature stage of the development, this is not one of the types of declines that can be offset, by improved efficiencies, although we highlighted, continued efficiency gains at the Diamondback level in the quarterly results, but we're picking pennies up now and When we were going through this, earlier in our history, probably most recently 2014 and early 2015, we were able to pick up, diamonds and quarters back then, and it's just, where we are in the maturation cycle of, depleting these resources that I think you're going to see, a really remarkable response on this base decline that's part of the equation.

因此，我認為資本會繼續從投資方程中退出。您知道，我們所處的這種下降趨勢將會被放大，而且由於我們正處於發展的更成熟階段，這種下降趨勢不屬於可以通過提高效率來抵消的下降趨勢，儘管我們在季度業績中強調了 Diamondback 水平的持續效率提升，但我們現在正在收集硬幣，在我們早期經歷這種情況時，可能是最近的 2014 年和 2015 年年初，當時我們能夠收集到鑽石和四分之一美元，而我們正處於資源枯竭的成熟週期中，我認為您將會看到，對這種基礎下降做出非常顯著的反應，這是等式的一部分。

Yeah, it's, we've been kind of well trained in Shell, right. This is the fourth time we've had to do this in 10 years, the worst being five years ago and you saw how quickly Shell responded, I think the only thing I would add to Travis's comments is, the operators that, we talked to in the field that live in, work in Midland are, right now pushing everything to the right, every little five to eight well program that was going to get drilled is now, going to get drilled and probably not completed or drilled later and so all those little anecdotes start to add up and you add that into what the companies like Diamondback are doing and that starts to add up pretty quickly. So you know I think for us, let's get this over with, and move forward because the other side of this is going to be great for those that are that are left, and it's going to be a great day for Diamondback shareholders.

是的，我們在殼牌接受過良好的培訓，對吧。這是我們 10 年來第四次這樣做，最糟糕的一次是五年前，你也看到了殼牌的反應有多快，我認為我唯一想補充特拉維斯評論的是，我們採訪過的住在米德蘭、在米德蘭工作的現場操作員現在正在推動一切向右發展，每個原本要鑽的五到八個小井項目現在都要鑽孔，而且可能累積這些小井等公司正在做的事情中，那麼這些小軼事就會很快累積起來。所以你知道，我認為對我們來說，讓我們把這件事解決掉，繼續前進，因為這件事的另一面對於留下來的人來說將是一件好事，對於 Diamondback 股東來說，這將是偉大的一天。

And the comment I made, Scott, on the tipping point, in US production, it just depends on--how low oil price goes and how long it lasts. But the scenario is with this base decline that's so extreme is that the amount of capital required to, get back to, 13 million barrels a day or 6 million barrels a day in a premium, might be an untenable list for the cap, the business model that we put in place where we're returning so much back to our investors that own the company. So, that's sort of the, the final analysis is, how low do we get and then what is the reinvestment rate going to be required to get production back up or to get it start growing again.

斯科特，我對美國產量臨界點的評論僅取決於油價跌到多低以及持續多久。但實際情況是，隨著產量基數的下降，產量將急劇下降，要恢復到每天 1,300 萬桶或每天 600 萬桶的溢價水平，所需的資本額可能超出了上限，而我們建立的商業模式是將大量資金返還給擁有公司的投資者。所以，最終的分析是，我們的生產力會降到多低，然後需要多少再投資率才能恢復生產或使其再次開始成長。

Yeah, I appreciate the commentary. Definitely feels like it's a have and have not situation and, Kaes's, look, he gave a little bit of colour on, 28 this year, and you kind of mentioned, in your brief comments there just a while ago, you, it's time to get over this and move forward. Like as Diamondback thinks about like moving forward in 2026. You know what is it going to take, for you guys to maintenance mode and could you just give a little colour on the set up for 2026 considering, obviously we're declining and flattening out in the back half of the year.

是的，我很欣賞你的評論。絕對感覺這是一個要么有要么沒有的情況，而 Kaes，你看，他今年 28 歲，這有點誇張，你剛才在簡短的評論中提到，你，是時候剋服這個問題，繼續前進了。就像 Diamondback 思考 2026 年的前進方向。您知道你們要進入維護模式需要做些什麼嗎？考慮到我們顯然在下半年會下滑並趨於平穩，您能否對 2026 年的設置進行一些說明。

Yeah, that's a good question, Scott. I mean, I think the key point for us is that we're not sacrificing anything in 2026 today, we expect to run four crews here for probably the next three months depending on where prices go. If things get worse, we could go lower, but, basically the plan, points to us, bringing back fifth crew and levelling off at 485,000 barrels of oil a day in Q4.

是的，這是個好問題，史考特。我的意思是，我認為對我們來說關鍵的一點是，我們今天不會在 2026 年犧牲任何東西，我們預計在接下來的三個月裡可能會在這裡運行四個團隊，具體取決於價格走勢。如果情況變得更糟，我們的產量可能會更低，但基本上，我們的計劃是，帶回第五名船員，並在第四季度穩定在每天 485,000 桶石油的產量。

We'll still end the year with more ducts than we've ever had and more flexibility than we've ever had to increase production in 2026. Should prices respond and in my mind that's a $65 to $70 plus world where, OPEC's spare capacity is lower, and we have a healthier macro. So, I'm hoping for that day, we'd like to get back to that, 500,000 barrels of oil a day, net plus, plant, but it seems like it's a long way away today with the next couple of quarters we have.

到今年年底，我們仍將擁有比以往任何時候都多的管道，並且比以往任何時候都擁有更大的靈活性，以便在 2026 年增加產量。如果價格有所反應，在我看來，油價將達到 65 至 70 美元以上，OPEC 的閒置產能將降低，我們的宏觀經濟將更加健康。所以，我希望那一天，我們希望回到每天 50 萬桶石油的產量，淨產量加上工廠產量，但從目前來看，考慮到接下來的幾個季度，這似乎還有很長的路要走。

Yeah, I think Scott, just to finish this commentary, I think our shareholders are lucky that Diamondback has such a long inventory because, while this basic decline that I talked about at the macro will present itself for Diamondback as well in case it gave you some very specific numbers for that. The breadth and depth of our inventory allows us to be more insulated from that than other investment opportunities where the inventory is a lot shorter or shorter and of less quality. So I hope that makes sense, but that's kind of how we think about, 2026 and 2027.

是的，斯科特，為了完成這個評論，我認為我們的股東很幸運，因為 Diamondback 擁有如此長的庫存，因為，雖然我在宏觀上談到的這種基本下降也會出現在 Diamondback 身上，如果它給你一些非常具體的數字的話。與其他投資機會相比，我們的庫存廣度和深度使我們更能免受此類風險的影響，因為其他投資機會的庫存要么很短，要么很短，而且品質較差。我希望這是有道理的，但這就是我們對 2026 年和 2027 年的看法。

Appreciate the comments and again, Travis, congrats.

感謝您的評論，再次祝賀特拉維斯。

Thank you, Scott.

謝謝你，斯科特。

Thank you. David Deckelbaum, TD Securities.

謝謝。道明證券 (TD Securities) 的大衛‧德克爾鮑姆 (David Deckelbaum)。

Thanks for your time, guys, and Travis, thanks for your candid thoughts in the letter. Good luck to everyone and in the roles ahead. Maybe Kaes you could follow up a bit or anyone perhaps Danny just talking about sort of the optimal duck load. Obviously, you, elected to drop the rigs and not build further ducks with the one frac crew coming down, sounds like net this plan you're drawing down perhaps for building 20 fewer ducks this year going into next year. How do we think about the variables for maybe keeping those rigs and building a duck backlog? In the context of what the right amount of duck inventory level is for you going into the next couple of years or is it more of a function of where you expect drilling rig rates to be coming down in the ensuing quarters.

謝謝你們的時間，夥伴們，還有崔維斯，謝謝你們在信中坦誠的想法。祝大家好運，在未來的工作中一切順利。也許 Kaes 您可以跟進一下，或者 Danny 可以談談最佳鴨子負載。顯然，您選擇放棄鑽機並且不再建造更多的鴨子，因為只有一個壓裂隊下崗，這聽起來像是您制定的這個計劃，今年到明年可能會少建造 20 座鴨子。我們如何考慮保留這些鑽孔機和建立鴨子積壓的變數？在未來幾年中，鴨子庫存水準應該是多少比較合適？或者這是否更多地取決於您預計接下來幾季鑽井平台費率會下降多少。

Yeah, I mean, look, we, we're carrying probably the largest duck backlog in North America right now, and so we, there's not a world where we're looking at, building ducks, gross ducks, the top line level. So, in the new plan, we're drawing down less ducks than we were in the original plan, I think probably a rule of thumb is for every frac crew you have running, you need 1.5 to 2 pads of duck inventory behind, ahead of those pads. So, ahead of those crews, if we, if we're going to run five crews, you going to have, 10 pads is worth of duck backlog and call it, 8 to 12 wells of pad, so you know that that kind of gets you to a comfortable duck backlog inventory for a run rate, we're probably sitting, at the end of this year, another 100 wells above that that number depending on, what price is due in the back half of this year.

是的，我的意思是，你看，我們現在可能是北美最大的鴨子積壓訂單國，所以我們並沒有關注建造鴨子、生產鴨子和頂線水平。因此，在新計劃中，我們減少的鴨子數量比原計劃要少，我認為一個經驗法則是，對於每個正在運行的壓裂隊，你需要在這些墊子後面和前面有 1.5 到 2 個鴨子庫存。因此，在這些隊伍之前，如果我們要運行五個隊伍，那麼您將擁有相當於 10 個墊塊的鴨子積壓庫存，並將其稱為 8 到 12 個墊塊井，因此您知道，這樣可以讓您獲得舒適的鴨子積壓庫存，以運行率計算，我們可能會在今年年底再超過這個數字 100 口井的價格取決於今年下半年的價格。

Yeah, and David, we the comment in our letter that traditionally we would build more ducts in this environment, but our largest input cost on drilling wells. So let's just say that drilling a well costs $200 a foot, about $2 million. The cost of casing is $650,000 a well now, and you know that that is up 12% quarter over quarter due to tariff impacts. So, we think that the demand side as the rig count reduces, steel prices come back down and, we can look at logically, bringing some rigs back to build ducks if costs are cheap, but you know that capital allocation decision today tells us drop the rigs, buy back stock.

是的，大衛，我們在信中評論說，傳統上我們會在這種環境下建造更多的管道，但我們最大的投入成本是在鑽井上。所以我們假設鑽一口井的成本是每英尺 200 美元，大約 200 萬美元。目前每口井套管的成本為 65 萬美元，而且由於關稅的影響，這一成本比上一季上漲了 12%。因此，我們認為，隨著鑽孔機數量的減少，需求方面，鋼材價格會回落，我們可以從邏輯上看待，如果成本低廉，就把一些鑽機帶回來建造鴨子，但你知道今天的資本配置決策告訴我們放棄鑽機，回購股票。

Appreciate the colour, and then maybe just as a follow up just given the environment we're in now, have your expectations changed with, the ability to execute on some of the non, operated or non-core sales or the anticipated water infrastructure sale to Deep Blue?

欣賞顏色，然後也許只是作為後續，考慮到我們現在所處的環境，您的期望是否發生了變化，是否有能力執行一些非運營或非核心銷售或預期的水基礎設施銷售給 Deep Blue？

Yeah, listen, Deep Blue obviously is a subsidy essentially a subsidiary of ours. We own 30% of it, we think the EDS, which is the Endeavor water system, logically belongs in Deep Blue would make that business the largest water handler in the in the Midland basin, and it seems that water has started to get a lot more attention in the in the public market. So I don't see that sale or deal being pushed too far to the right just because we want to get those two businesses integrated and ready for what's next, outside of that, we obviously participated a little bit in the sale of BANGL, the NGL pipeline to MPLX, that should close in July and you know the last big piece of our equity method investments is the epic pipeline, which we own 27.5% of, I think that probably is a slower process today than it was three months ago. But I think lessons learned from pass down cycles is that we don't have to force asset sales. We can be patient, I think we're going to get a couple wins on the Board, but we don't have to, hit a specific number by a specific period of time, because we think the market's going to recover and. And the balance sheet's strong and we can be patient.

是的，聽著，深藍顯然是我們的子公司。我們擁有其中 30% 的股份，我們認為 EDS（即 Endeavor 水務系統）從邏輯上來說屬於 Deep Blue，這將使該公司成為米德蘭盆地最大的水務處理商，而且水務似乎已開始在公開市場上受到更多關注。因此，我認為出售或交易不會被推得太遠，因為我們想將這兩家公司整合起來，為下一步做好準備，除此之外，我們顯然參與了 BANGL 的出售，即向 MPLX 出售 NGL 管道，這筆交易應該在 7 月份完成，你知道我們權益法投資的最後一大塊是 Epic 管道，我們擁有其 27.5% 的股份，三個月前我認為 Epic 管道。但我認為從傳承週期中得到的教訓是，我們不必強制出售資產。我們可以耐心等待，我認為我們會在董事會上取得一些勝利，但我們不必在特定時間內達到特定數字，因為我們認為市場將會復甦。資產負債表強勁，我們可以耐心等待。

Appreciate it guys.

感謝你們。

Thanks David.

謝謝大衛。

Thank you. John Freeman, Raymond James.

謝謝。約翰‧弗里曼、雷蒙‧詹姆斯。

Good morning and congratulations again, Travis on a fantastic career.

早安，再次恭喜崔維斯取得如此輝煌的職業生涯。

I want to follow up on some of the prior commentary and again really appreciate the leadership that y'all are showing with this meaningful reduction in activity, both in the shareholder letter and then those comments here earlier in the call, you talked about kind of that $65 to $70 kind of oil price world where you, you'd look to me, you put your foot back on the accelerator, and I just want to kind of dig it out a little bit more.

我想跟進一些先前的評論，並再次由衷感謝你們在減少活動方面所展現出的領導力，無論是在股東信中還是在電話會議早些時候的評論中，你們談到了 65 美元到 70 美元的油價世界，在這種情況下，你會看著我，把腳重新踩在油門上，我只是想再深入挖掘一下。

So should we think of it as even if your cost structure would continue to move lower due to service costs, efficiencies, whatever, and returns continue to improve, you all would still probably wait until you're in a $65 to $70 dollar world before you'd want to put your foot on the accelerator. Am I think about that right?

因此，我們是否應該這樣想：即使您的成本結構由於服務成本、效率等原因而繼續降低，並且回報率不斷提高，您仍然可能會等到進入 65 美元到 70 美元的世界後才會踩下油門。我這樣想對嗎？

Yeah, that's right, John. I just think we want to be patient, I think there's a lot of uncertainty on both the demand and the supply side. In our mind, the supply side is going to figure itself out pretty quickly here, but demand obviously is something I'm not an expert in, right. We're an expert, we're experts in US Shell and US supply and what we're seeing in the field and in my mind, a $70 plus crude environment is a is a relatively healthy environment, and that would be an appropriate time to bring some capital back into the equation.

是的，沒錯，約翰。我只是認為我們應該保持耐心，我認為需求和供應方面都存在著許多不確定性。在我們看來，供應方面很快就會解決問題，但需求方面顯然我不是專家，對吧。我們是美國殼牌和美國供應方面的專家，根據我們在該領域看到的情況，在我看來，70 美元以上的原油價格環境是一個相對健康的環境，這將是將一些資本重新納入考慮範圍的適當時機。

Got it. And then, you all did highlight, what you've seen in terms of, the impact on kind of your steel related products with the tariffs on casing, being up 12% since last quarter, but we're able to lower your middle base and cost per foot guidance yet again and I just hoping you could maybe speak to kind of the puts and takes that are allowing you to kind of offset what you're seeing on the casing side.

知道了。然後，你們都強調了，就你們所看到的，套管關稅對鋼鐵相關產品的影響而言，自上個季度以來上漲了 12%，但我們能夠再次降低中間基數和每英尺成本指導，我只是希望你們可以談談讓你們能夠抵消套管方面所看到的影響的利弊。

Yeah, I mean, first of all, the teams had an incredible first quarter. I mean, we put some highlights in the deck--under 8 days average, per well on120 plus wells is a pretty impressive feat. So, I mean, I think we're on the lower end of our efficiencies, which is good, and I think unfortunately the rest of that reduction is likely to come from the service environment here with rigs coming down and frac crews coming down, but I'll let Danny opine on what he's seeing in real time.

是的，首先，兩支球隊在第一節都打出了令人難以置信的表現。我的意思是，我們在簡報中展示了一些亮點——120 多口井中每口井平均不到 8 天，這是一個非常令人印象深刻的成就。所以，我的意思是，我認為我們的效率處於較低水平，這是件好事，不幸的是，我認為其餘的減少可能來自這裡的服務環境，鑽機和壓裂人員都在減少，但我會讓丹尼就他所看到的實時情況發表意見。

Yeah, I think we put some details out there around casing and it's, the 10% increase is about $6 a foot or so on the drilling portion of the well. So, it's really not a huge number and like I said, the execution from the drilling and completion teams is really driving the cost beat and, I think.

是的，我想我們在套管方面給出了一些細節，鑽井部分 10% 的漲幅大約是每英尺 6 美元左右。所以，這實際上並不是一個巨大的數字，就像我說的，鑽井和完井團隊的執行確實推動了成本的控制，我認為。

We anticipate that, there's going to be lower activity in in the basin, which usually leads to lower service pricing, there's a lot of volatility out there right now with input costs and tariffs, but we do expect that activity is going to come out of this basin in a meaningful way and that should have a trickledown effect the pricing.

我們預計，該盆地的活動將會減少，這通常會導致服務價格下降，目前投入成本和關稅波動很大，但我們確實預計該盆地的活動將以有意義的方式出現，這將對定價產生涓滴效應。

Thanks guys, appreciate it.

謝謝大家，非常感謝。

Thank you. Arun Jayaram, JPMorgan Securities LLC.

謝謝。摩根大通證券有限責任公司的 Arun Jayaram。

Yeah, good morning, gentlemen. Travis, Kaes, you highlighted how the trajectory of oil volumes could trend to 485 in the second half of '25. Danny mentioned you have, you'll have kind of a really high duck backlog, kind of going into this period.

是的，先生們，早安。崔維斯、凱斯，你們強調了 25 年下半年石油產量走勢可能趨向 485。丹尼提到過，進入這個時期，你的鴨子積壓量會非常高。

I was just wondering if you could help us think about 2026. CapEx to keep that 485 flat, all else being equal, would a $900 million per quarter run rate seem reasonable, based on what we know today?

我只是想知道您是否可以幫助我們思考 2026 年。在其他條件相同的情況下，資本支出要使 485 保持平穩，根據我們今天所了解的情況，每季 9 億美元的運行率是否合理？

Yeah, I mean, I think that's reasonable, I hope that's not doesn't end up being the plan, but, clearly with service costs coming down, efficiency is high, a little lower production base, I think that's logical, we also had a lot, a few more onetime items in the budget this year that will be reduced next year. So I think that's a logical baseline, again, I'm kind of hoping that the market recovers quickly here and we can be talking about 500 plus,1,000 barrels of oil a day next year, but I think we got to wait a few months here to see where things settle out.

是的，我的意思是，我認為這是合理的，我希望這不是最終的計劃，但是，顯然隨著服務成本的下降，效率的提高，生產基礎的降低，我認為這是合乎邏輯的，我們今年的預算中還有很多一次性項目，明年將會減少。所以我認為這是一個合理的基線，我再次希望這裡的市場能夠迅速復甦，明年我們可以談論每天 500 多至 1,000 桶石油，但我認為我們必須等待幾個月才能看到事情如何穩定下來。

Understood. That's helpful. Maybe my follow up is in the shareholder letter, Travis, you mentioned how Diamondback will allocate a higher mix of free cash flow to repurchases if the volatility continues. I was wondering how you and Kaes think about kind of balancing. Leverage, reducing leverage versus buybacks and perhaps tell us how you think about, give us a sense of what type of mix could we see towards the return of free cash flow to shareholders versus the 50,50, kind of overall guidance.

明白了。這很有幫助。也許我的後續問題是在股東信中，特拉維斯，你提到如果波動持續，Diamondback 將如何將更高的自由現金流組合分配給回購。我想知道您和 Kaes 如何看待平衡。槓桿，降低槓桿與回購，也許告訴我們您的想法，讓我們了解一下我們可以看到什麼樣的組合才能使股東獲得自由現金流的回報，而不是 50,50 的總體指導。

Yeah, listen, I think, obviously, improving the balance sheet is important, but I think that the best, the smartest capital allocation decision today is to repurchase shares. I think generally, Arun, round numbers, probably allocate 25% to 30% of free cash flow to paying down debt, you saw that we repurchased some of our longer dated notes at well below par. Those notes had, come down in price due to the 30-year treasury blowing out, so we took advantage of that. I think you can expect to see more things like that on the debt side.

是的，聽著，我認為，改善資產負債表顯然很重要，但我認為當今最好、最明智的資本配置決策是回購股票。我認為一般來說，阿倫，大概將 25% 到 30% 的自由現金流分配給償還債務，你會看到我們以遠低於票面價值的價格回購了一些較長期的票據。由於 30 年期國債的大量發行，這些票據的價格已經下降，所以我們利用了這一點。我認為在債務方面你會看到更多類似的情況。

I think some of our non-core asset sales coming in, should reduce our, term loan we put in place for a two-year term loan that we put in place for the double eco closing. And then you get to the other 75% of free cash flow or 70% of free cash flow, and in our minds, that needs to be allocated to 100%, repurchases and the base dividends, I think obviously the variable dividends out the window at these prices and repurchasing shares grows per share all volumes and per share cash flow and free cash flow when the when the market recovers.

我認為我們的一些非核心資產銷售收入應該會減少我們為雙重生態結算而設立的兩年期定期貸款。然後你得到另外 75% 的自由現金流或 70% 的自由現金流，在我們看來，這需要分配給 100%，回購和基本股息，我認為在這些價格下，浮動股息顯然不予考慮，而當市場復甦時，回購股票的每股數量、每股現金流和自由現金流都會增長。

Great, Travis, best of wishes to you. If you do write the book, I look forward to the chapter on how you got the Endeavor deal with case to the finish line.

太好了，崔維斯，祝你一切順利。如果您確實寫了這本書，我期待看到有關您如何將 Endeavor 案處理到最後階段的章節。

It was all. Thank you.

就這些了。謝謝。

Thank you. Bob Bracket, Bernstein Research.

謝謝。鮑伯‧布拉克特（Bob Bracket），伯恩斯坦研究公司。

Hi, good morning. If I think about the capital reductions, you guys get to choose which crews you keep, and you guys get to choose which locations you drill. To what degree are those real levers where you're making choices, or are those, most of the crews are about the same and most of the locations are about the same.

嗨，早安。如果我考慮減少資本，你們就可以選擇保留哪些隊伍，你們就可以選擇在哪些地點鑽探。在多大程度上這些才是你做出選擇的真正槓桿，或者說，大多數工作人員都差不多，大多數地點都差不多。

Yeah, I mean, I think from an execution standpoint most of our resources, on the service side are, pretty well in line with each other, and so there's not a lot of high grading that to occur and, slowing down the activity. It really becomes, a commercial decision and discussions with our business partners on, who's going to work with us as activity comes down and on the project side of things, our job is to always try to allocate capital to the best projects and, I think if you look at the consistency of our program over the past few years.

是的，我的意思是，我認為從執行的角度來看，我們在服務方面的大部分資源都是相互協調的，因此不會出現太多的高等級情況，也不會減慢活動速度。它實際上變成了一個商業決策，並與我們的業務合作夥伴進行討論，隨著活動的減少，誰將與我們合作，在項目方面，我們的工作是始終嘗試將資金分配給最好的項目，我想如果你看看我們過去幾年計劃的一致性。

It kind of speaks to the consistency of the projects we're doing. So again, there's not a whole lot of high grading that be done in the projects themselves. I think, you will see us probably prioritize the projects where Viper has interest so we can continue to support Viper in in that regard, but, I don't think there's material high rating to be done in the pads or resource allocation.

這在某種程度上說明了我們所做專案的一致性。所以，再說一次，專案本身並沒有太多可以進行的高等級評分。我想，你會看到我們可能會優先考慮 Viper 感興趣的項目，這樣我們就可以繼續在這方面支持 Viper，但是，我認為在發射台或資源分配方面不需要進行實質性的高評級。

And that's a blessing of having an outstanding inventory as well too, we're still allocating wells with very small range of outcomes because they're the top quartile of our inventory and as Danny pointed out, we've been doing that for several years now. So again, durability of inventory matters when you go into one of these cycles, and that's what our shareholders are lucky to have at the time of.

擁有優秀的庫存也是一件幸事，我們仍然在分配結果範圍很小的油井，因為它們是我們庫存的前四分之一，正如丹尼指出的那樣，我們已經這樣做了好幾年了。因此，當你進入其中一個週期時，庫存的耐用性非常重要，而這正是我們的股東在當時很幸運擁有的。

Yeah. That's very clear. Quick follow up at your run rate, you're going to get through the remainder of your share buyback authorization. That's a trivial exercise to top that up when you need to.

是的。這非常清楚。快速跟進您的運行速度，您將完成剩餘的股票回購授權。當你需要時，這是一個簡單的補充練習。

Yeah, we thought about looking at it this quarter, but, felt that we want to get through another quarter. There's probably enough noise with all the changes in the capital plan this quarter, and we'll discuss it with the Board, but you know I think the Board is certainly behind management in believing that buybacks are the right thing at this at these levels and we expect to increase it when we get closer to the authorization.

是的，我們考慮過本季研究這個問題，但是，我們覺得我們想再撐過一個季度。本季度資本計畫的所有變化可能已經引起了足夠的關注，我們將與董事會討論這個問題，但你知道，我認為董事會肯定支持管理層，認為在目前的水平上回購是正確的，我們預計在接近授權時會增加回購。

Very good. Thanks, and congrats.

非常好。謝謝，恭喜。

Thank you, Bob.

謝謝你，鮑伯。

Thank you. Scott Gruber, Citigroup. Your line is now open.

謝謝。花旗集團的史考特‧格魯伯。您的線路現已開通。

Yes, good morning. I found the comment in the shareholder letter about geologic headwinds outpatient technology and process efficiency gains, interesting. I assume that's a broader industry comment. So I'm curious, do you see the technology and process efficiency gains slowing from here or the geologic headwinds becoming more severe, just some more colour, behind that comment and kind of what's changing on the margin.

是的，早安。我發現股東信中關於地質逆風門診技術和工藝效率提高的評論很有趣。我認為這是一個更廣泛的行業評論。所以我很好奇，您是否認為技術和流程效率的提升會從現在開始放緩，或者地質逆風會變得更加嚴峻，這只是該評論背後的一些色彩，以及邊際上正在發生什麼變化。

Yeah, I think that's the natural evolution of a maturing basin. I mean, we've been now exploiting this Shale resource in the Permian Basin for 15 years and we still expect, some R&D and some really innovative breakthroughs coming, but in a general sense as dollars get allocated to lower and lower quality inventory, and the longer you're in the game, if you're focused on, excellence and execution, your natural decline will be impacted where you're making less improvements than you did early on in the development of that asset. So it's more of a general comment that, from my experience we've seen play out in Eagle for the [Bakke] and some of these other in the Barnett Shale in the early days as you continue to deplete these reservoirs.

是的，我認為這是成熟盆地的自然演變。我的意思是，我們已經在二疊紀盆地開採這種頁岩資源 15 年了，我們仍然期待一些研發和一些真正的創新突破即將到來，但從一般意義上講，隨著資金被分配到質量越來越低的庫存上，如果你在這個行業中呆的時間越長，如果你專注於卓越和執行，你的資產衰退就會受到影響，因為你所做的改進會比早期因此，這更像是一種普遍性的評論，根據我的經驗，隨著這些儲層不斷枯竭，我們在早期就已經看到了 Eagle 的 [Bakke] 和 Barnett Shale 的一些其他儲層的情況。

Yeah, I got it. And then coming back to the cost saving side of things, as you selected which rigs and frac crews were retained, were you able to capture some of immediate savings, from those that, the crews that you retained, or are you seeing service companies, more willing to do blunt and extends with any contracts in place? I'm just curious about kind of how quickly you're able to secure some statements from your service providers.

是的，我明白了。然後回到成本節約方面，當您選擇保留哪些鑽機和壓裂人員時，您是否能夠從您保留的人員那裡獲得一些直接的節省，或者您是否看到服務公司更願意在簽訂任何合約的情況下做直接和延長工作？我只是好奇您能多快從服務提供者那裡獲得一些聲明。

Well, I'll give a high level comment, I think for us, we've always tried to have very short term contracts so that we can have these conversations quickly, both on the completion side and the drilling side, I think it's kind of a different story on both sides on the drilling side, we use a multitude of contractors and, those conversations are probably more fluid, on the completion side, we've always been big fans of the Halliburton's ZEUS fleets we run four of those today. And so, I think, I truly think that that relationship is more of a business partner type relationship where we're going to get through it together, but I'll let Danny give some details.

好吧，我會給出一個高層次的評論，我認為對我們來說，我們一直試圖簽訂非常短期的合同，以便我們可以快速進行這些對話，無論是在完井方面還是在鑽井方面，我認為雙方的情況都不同，在鑽井方面，我們使用了眾多承包商，而且這些對話可能更加忠實，在完井方面，我們一直是哈里伯頓 ZEUS 的粉絲，今天。所以，我認為，我真的認為這種關係更像是一種商業夥伴類型的關係，我們將共同度過難關，但我會讓丹尼提供一些細節。

Yeah, I think, Kaes kind of hit the nail on the head. We are constantly in commercial negotiations with our service providers based on market conditions and you know what we're seeing in the pricing market, and you know what kind of service quality we're receiving from them and so when we lower activity internally it's a discussion with all of them on who's will going to be willing to work with us and as the market softens more broadly, we'll continue to have those conversations, I think the cases that before every day is RFQ day Diamondback, and, we continue to just keep our ear to the ground on where the service market is and want to recognize the best commercial value for our shareholders and our and the discussions around our procurement process.

是的，我認為 Kaes 的說法非常正確。我們根據市場情況不斷與我們的服務提供者進行商業談判，您知道我們在定價市場中看到了什麼，您知道我們從他們那裡獲得了什麼樣的服務質量，因此，當我們在內部降低活動時，我們會與所有人討論誰願意與我們合作，隨著市場普遍疲軟，我們將繼續進行這些對話，我認為每天之前的情況是 Diamondbackback 的 RFQ日，我們繼續關注服務市場的情況，並希望為我們的股東和我們找到最佳的商業價值，並圍繞我們的採購流程進行討論。

Great, appreciate the colour.

太棒了，欣賞這個顏色。

Thanks, Scott.

謝謝，斯科特。

Thank you. Philip J. Jungworth, BMO.

謝謝。Philip J. Jungworth，BMO。

Thanks, good morning, guys. On the macro commentary around US oil production, one of the things that analysts often underappreciate in the downturn is just the industry's ability to high grade capital and this can include coring out to more tier one or two acreage, private activity getting cut at a faster rate. Just targeting more primary zones or up spacing, so, wondering how you see that high grading ability today for the Permian more broadly, and is there any reason that shale is more mature to think that this could be less upside to capital efficiency for the for the industry than we've seen in prior downturns.

謝謝，大家早安。在有關美國石油生產的宏觀評論中，分析師在經濟低迷時期經常低估的一件事就是該行業對高等級資本的能力，這可能包括擴大到更多的一級或二級油田，私人活動以更快的速度減少。只是針對更多的主要區域或增加間距，所以，想知道您如何看待二疊紀今天的高分級能力，以及是否有理由認為頁岩更成熟，從而認為這對行業資本效率的上行空間可能小於我們在以前的經濟低迷時期所看到的。

Yeah, kind of relative to my prior comment about, we're in the later stages of development of these resources, I would argue that most of the high grading's been occurring over the last three to four years as all of these zones, particularly the Permian, have been well defined and the focus has been on efficient execution.

是的，相對於我先前的評論，我們正處於這些資源開發的後期階段，我認為大多數高等級的開發都發生在過去三到四年內，因為所有這些區域，特別是二疊紀，都已經得到很好的界定，並且重點一直放在高效執行上。

So, if someone is someone hasn't been allocating capital to their very best projects, well then, I guess they could take this opportunity to do that. But our reconnaissance and monitoring of the industry says that everyone's trying to drill the best stuff first, and that's the way we think it's going to play out in the future.

因此，如果有人還沒有為他們最好的項目分配資金，那麼我想他們可以藉此機會這樣做。但我們對這個行業的偵察和監測表明，每個人都試圖首先鑽探最好的東西，我們認為這就是未來將會發生的事情。

Yeah, I think, if you look at this, the market today just generally, balance sheets are healthier, free cash flow is being generated. And so what we're trying to say is, I think in the past, the decision to cut capital was to protect the balance sheet for a lot of particularly when there's a multitude of Smid caps and midcaps that are no longer here.

是的，我認為，如果你看一下這個，今天的市場總體而言，資產負債表更健康，正在產生自由現金流。因此，我們想說的是，我認為在過去，削減資本的決定是為了保護許多公司的資產負債表，特別是當大量中型股和中型股不再存在時。

And now today I think decisions are being made to preserve precious inventory because inventory is scarce. I think the plays are well defined. There hasn't been, there's little things going on around the basin. Like the Dean play in Dawson County, Middle Spring down in Ector County, things that are adding resource but not nearly to the level of what we saw in the past down cycles. So I think decisions to cut capital and defer turn lines or defer inventory is being made to preserve inventory life rather than, protect balance sheet.

現在我認為人們正在決定保留寶貴的庫存，因為庫存稀缺。我認為這些戲劇定義明確。沒有，盆地周圍發生了一些小事。就像道森縣的迪恩油田、埃克託縣的中泉油田一樣，這些油田都在增加資源，但遠未達到我們在過去經濟衰退週期中所看到的水平。因此，我認為削減資本、推遲週轉線或推遲庫存的決定是為了延長庫存壽命，而不是保護資產負債表。

Great, thanks. And then there's been a number of gas pipeline projects that have reached FID to move gas out of the Permian and even further along the Gulf Coast. What's your appetite currently for incremental FT on gas with looks like Waha titans materially in in 2027. You also have power opportunities, and how that influenced by any expectations around future Permian oil growth?

太好了，謝謝。此外，還有多個天然氣管道項目已達成最終投資決定，旨在將天然氣從二疊紀盆地輸送出去，甚至輸送到墨西哥灣沿岸更遠的地方。您目前對天然氣增量 FT 的興趣如何，看起來 Waha 巨頭將在 2027 年實現實質成長。您還擁有電力機會，這對未來二疊紀石油成長有何影響？

Yeah, sadly, the gas growth is going to continue out of the basin, in our models, so we're going to keep putting more FT on the balance sheet, I think we have a lot of confidence in what we've committed to, we have about a $750 million a day, total commitments that will be in place by the end of the '26. We are reserving some space for power generation should that come to fruition in in the basin, but in general I think you can expect us to continue to support, new pipelines out of the basin, even there's even some talk of pipelines going west, we'll see if that happens, but, we want to have a diverse set of marketing arrangements on the gas side and. I think we generally believe in the long term gas thesis, and so therefore should make some more money off of our gas.

是的，遺憾的是，在我們的模型中，天然氣產量將繼續增長，因此我們將繼續在資產負債表上增加更多的 FT，我認為我們對我們所承諾的非常有信心，我們每天的總承諾額約為 7.5 億美元，到 26 年底將到位。如果盆地內能夠實現發電，我們將保留一些空間，但總的來說，我認為你可以期待我們繼續支持盆地外的新管道，甚至有人談論向西的管道，我們會看看是否會發生，但是，我們希望在天然氣方面有一套多樣化的營銷安排。我認為我們普遍相信長期天然氣理論，因此應該從天然氣中賺取更多的錢。

Thanks guys.

謝謝大家。

Thank you. Derek Whitfield, Texas Capital.

謝謝。德瑞克·惠特菲爾德，德州首府。

Good morning, all. I echo everyone's congrats and also appreciate your capital, discipline, and leadership as well.

大家早安。我贊同大家的祝賀，也感謝你們的資本、紀律和領導。

Thank you, Derrick.

謝謝你，德里克。

With my first question, I'd like to use your driving analogy from the investor letter and ask what price do you see as the next natural tipping point in activity or the point where you'd firmly press on the brakes assuming current service costs?

對於我的第一個問題，我想用您在投資者信中舉的駕駛類比來問一下，您認為什麼價格是活動的下一個自然臨界點，或者假設當前的服務成本，您會在什麼價格上堅決踩剎車？

Yeah, we like that analogy too, but I think red is probably something with a four in front of it. I would say yellow is something with a five in front of it, and green needs to be, somewhere in the mid to high 60s with a path to 70 to accelerate through that that green light.

是的，我們也喜歡這個比喻，但我認為紅色可能是前面有 4 的數字。我想說黃色前面有一個 5，而綠色則需要在 60 年代中後期，並且路徑達到 70 才能加速通過綠燈。

And then thinking about your DNC activity or non-DNC activity, could you offer some perspective on the amount of non-DNC capital you could take out of the business if we were to assume a more protracted period of lower prices?

然後考慮一下您的 DNC 活動或非 DNC 活動，如果我們假設價格較低時期持續更長時間，您能否就您可以從業務中獲得多少非 DNC 資本提供一些看法？

Yeah, we lowered our non-DNC, budget by about $50 million at the midpoint, we do think if we ever get our midstream business, merged into Deep Blue, that would take another $50 million to $60 million out of our non-DNC budget. But there, there's some pretty interesting things we're doing on the non-DNC side, some of these capital workovers, that we put in the budget are starting to pay dividends and help improve the base decline.

是的，我們在中期將非民主黨全國委員會的預算降低了約 5000 萬美元，我們確實認為，如果我們的中游業務併入 Deep Blue，那麼我們的非民主黨全國委員會預算將再減少 5000 萬至 6000 萬美元。但在非民主黨全國委員會方面，我們正在做一些非常有趣的事情，我們納入預算的一些資本修整開始產生回報，並有助於改善基數下降的情況。

So, I think those projects stay in there, but, as the total amount of wells turned in line goes down, the associated infrastructure, also goes down or gets pushed to the right. So I think we had a good cut, for what we said today, but mentioned earlier in the call that there are some one time things in the budget this year that are probably coming out next year as well, so we always try to get that non-DNC budget number down, and I think it's headed that way, evident in a flat environment next year.

因此，我認為這些項目會保留下來，但是，隨著線上油井總數的下降，相關的基礎設施也會下降或被推到右邊。所以我認為，正如我們今天所說的，我們已經進行了很好的削減，但在電話會議早些時候提到，今年的預算中有一些一次性的事情可能明年也會發生，所以我們總是試圖降低非民主黨全國委員會的預算數字，我認為情況正朝著這個方向發展，這在明年持平的環境中是顯而易見的。

That's great thanks for your time.

非常感謝您抽出時間。

Thanks, Derrick.

謝謝，德里克。

Thank you. Kevin McCurdy, Pickering Energy Partners.

謝謝。麥柯迪 (Kevin McCurdy)，皮克林能源合夥公司 (Pickering Energy Partners)。

Hey, good morning. Good morning, Travis and Kaes. In past cycles, Diamondback has been a consolidator and has taken advantage of M&A opportunities, taking back to the COVID years. Is that different this time? I know that Double Eagle was the last coveted undeveloped position in the Midland Basin but are there other ways that you guys are kind of thinking about taking advantage of industry distress on the M&A front?

嘿，早安。早上好，崔維斯和凱斯。在過去的周期中，Diamondback 一直是整合者，並利用了併購機會，可以追溯到 COVID 時期。這次有什麼不同嗎？我知道 Double Eagle 是米德蘭盆地最後一個令人垂涎的未開發區塊，但你們是否考慮過其他方式來利用併購方面的行業困境？

Yeah, Kevin, I mean that's a good question. We've obviously been very busy over the last over the last year and a half with Endeavor and Double Eagle, those are two premier assets that in our mind, wouldn't be available in a in a more volatile environment. So we're fortunate that we took advantage and consolidated those too when we could.

是的，凱文，我認為這是很好的問題。顯然，在過去的一年半里，我們一直忙於 Endeavor 和 Double Eagle 兩項重要資產，在我們看來，在更加動盪的環境中，這兩筆資產是無法獲得的。因此，我們很幸運，在可能的情況下，我們利用並鞏固了這些優勢。

I think we're in the period right now where there's so much noise and volatility that not a lot gets done, I think we have to be very patient on our side. I think we're very focused on reducing our share count and getting our debt paid down a little bit, so anything that we would look at would have to be extremely cheap, and I just don't think we're there yet today.

我認為我們現在正處於一個噪音和波動性很大的時期，很多事情都無法完成，我認為我們必須非常有耐心。我認為我們非常注重減少股票數量並償還債務，因此我們考慮的任何股票都必須非常便宜，但我認為我們今天還沒有達到這個水平。

Appreciate that. Just one question for me. Thanks.

非常感謝。我只有一個問題。謝謝。

Thanks.

謝謝。

Thank you. Charles Mead, Johnson Rice.

謝謝。查爾斯·米德、約翰遜·賴斯。

Good morning, Travis, Kaes, and Danny. Travis, you made up, I'm not sure how much you intended to, but you, I think you made a big splash with your shareholder letter. And I'm curious, it's titled Letter to Shareholders, but are there other audiences you had in mind as you as you pen that letter and, I'm thinking it could be the Midland community more broadly or the Permian based community, Washington policymakers or even OPEC perhaps.

早上好，崔維斯、凱斯和丹尼。崔維斯，你編造了，我不確定你打算編造多少，但我認為你的股東信引起了轟動。我很好奇，這封信的標題是《給股東的信》，但在您寫這封信時，是否還想到了其他受眾？我認為可能是更廣泛的米德蘭社區或二疊紀社區、華盛頓的政策制定者，甚至可能是歐佩克。

Yeah, Charles, the intent of that letter is for our stockholders, and they're the ones that own the company and or make future investment decisions based on the way management allocates capital. So, we always focus that letter on as if they are our only audience, but we also recognize that this is a public document and based on some of the feedback we've seen overnight, it's reasonable to expect others to have read that letter besides just our just our stockholders,

是的，查爾斯，這封信的目的是為了我們的股東，他們是公司的所有者，或根據管理層分配資本的方式做出未來投資決策的人。因此，我們始終將這封信的重點放在他們身上，就好像他們是我們唯一的受眾一樣，但我們也認識到這是一份公開文件，並且根據我們昨晚看到的一些反饋，我們有理由相信除了我們的股東之外，其他人也會閱讀這封信。

So, now I wouldn't necessarily intimate that there was any other, effort out there besides communicating to our stockholders, but we weren't, we were at least aware that this was a message that's going to be read by more than just our stockholders.

所以，現在我不一定暗示除了與股東溝通之外還有其他努力，但我們沒有，我們至少意識到這訊息不僅僅是我們的股東會看到的。

Yeah, it sounds like you've seen a lot of messages already this morning. Travis, I want to go back to Scott Gruber's question. Just push a little bit further on the on the rate of change. You talked about the headwinds, the geological headwinds and the tailwinds of more efficiencies. You talked about the rate of change on the efficiencies you said, used to we were picking up, quarters, dimes, and nickels, and now we're picking up pennies on the efficiency side. What is the rate of change feel like on the geologic headwind side? Is it kind of a persistent, headwind that's just now, kind of balanced out versus the pennies or is it picking up?

是的，聽起來你今天早上已經看到了很多消息。崔維斯，我想回到史考特‧格魯伯的問題。只需在變化率上再進一步推動一點。您談到了逆風、地質逆風和提高效率的順風。您談到了效率的變化率，您說，過去我們收集的是 25 美分、10 美分和 5 美分的硬幣，而現在我們在效率方面收集的是 1 美分的硬幣。地質逆風側的變化率感覺如何？它是否是一種持續的逆風，只是現在與便士相比有所平衡，還是正在逐漸增強？

Yeah, I mean, I think we think it's picking up, these plays are very well defined now, right? I mean, I think if you look at past down cycles, we've always learned something in the down cycle, whether it's a new completion design, co-development, spacing, studies, so we're certainly not going to let this slowdown go to waste and we're going to learn something coming out of it. I don't know what it is today, but the basin has been well tested by, 300 plus rigs. It used to be 600 plus rigs, over the last 10 years.

是的，我的意思是，我認為我們認為它正在興起，這些戲劇現在定義得非常明確，對嗎？我的意思是，我認為如果你回顧過去的下行週期，我們總會在下行週期中學到一些東西，無論是新的完井設計、共同開發、間距還是研究，所以我們肯定不會讓這次經濟放緩白白浪費，我們會從中學到一些東西。我不知道現在的情況如何，但該盆地已經經過了 300 多個鑽孔機的充分測試。在過去 10 年裡，該數字曾達到 600 多個鑽孔機。

So I think what we're trying to say is, we're drilling average 10,000 ft wells in eight days. There's not, three, four more days to come out of those on average and therefore the cost side of the equation is going to be harder to get down by 10% or 20%. And this is why we've been so aggressive on building our resource base and our inventory because we feel like, from a scale perspective, the vast majority of the inventory in the basin has been well defined.

所以我認為我們想說的是，我們平均在八天內鑽探 10,000 英尺的井。平均而言，這些時間只剩下三、四天了，因此成本方面將更難降低 10% 或 20%。這就是為什麼我們如此積極地建立我們的資源基礎和庫存，因為我們覺得，從規模的角度來看，盆地中的絕大多數庫存已經得到很好的定義。

Got it, that is helpful colour. Appreciate it.

明白了，這是有用的顏色。非常感謝。

Thank you. Paul Chang, Scotia Bank.

謝謝。加拿大豐業銀行的 Paul Chang。

Thank you. Hey, good morning, guys. Tarvis or Kaes, I'm just curious that, I mean, based on your comment is the business model needs to be changed? I mean, historically that the company is growth for acquisition and have a growth bias, but if the, if you already consolidate most of the best asset, if that means that you have to go outside the permit or that the entire business model perhaps that needs to be changed going forward.

謝謝。嘿，大家早安。Tarvis 或 Kaes，我只是好奇，我的意思是，根據您的評論，商業模式是否需要改變？我的意思是，從歷史上看，公司的成長是為了收購，並且具有成長傾向，但如果你已經整合了大部分最佳資產，如果這意味著你必須超出許可範圍，或者整個商業模式可能需要在未來進行更改。

Yeah, well, I don't think there's a need to go outside the Permian because I don't see any other basin and certainly in the US that has that has the inventory quality and depth of the Permian, we have a big, we have a big motto internally and it's no way you don't know, and we're really good at the Permian Basin.

是的，嗯，我認為沒有必要去二疊紀盆地以外的地方，因為我沒有看到任何其他盆地，當然在美國，我們的庫存質量和二疊紀的深度都很高，我們有一個很大的，我們內部有一個很大的座右銘，你不可能不知道，我們在二疊紀盆地方面真的很擅長。

We're really good at drilling wells in the Permian Basin and that's our expertise. So I don't think we need to go outside the basin, on the business model comment. I think we've, grown the business through acquisition. We're obviously extremely large now, we've always focused on per share metrics. I think there's still a world where we grow per share metrics significantly with our current asset base and while it's a long way off from today, I do think there's going to be a time period where significant organic growth is going to be required from someone like Diamondback to fill the gap in US supply that, probably struggles over the next 5 to 10 years, and that in our mind. Is what we've been positioning the company for long term, for that proverbial pot of gold on the end of the rainbow and, we're the last man standing in the basin drilling high return wells at high oil prices.

我們非常擅長在二疊紀盆地鑽井，這是我們的專長。所以我認為我們沒必要跳出這個範疇，對商業模式進行評論。我認為我們已經透過收購實現了業務成長。我們現在顯然規模非常大，我們一直關注每股指標。我認為，在我們目前的資產基礎上，每股收益指標仍能大幅增長，雖然距離今天還有很長的路要走，但我確實認為，在一段時間內，像 Diamondback 這樣的公司將需要實現顯著的有機增長，以填補美國供應缺口，而這一缺口可能在未來 5 到 10 年內難以填補，這是我們的心願。這是我們長期以來為公司所設定的目標，即彩虹盡頭的金罐，我們是油盆中最後一個在高油價下鑽探高回報油井的人。

Excellent. The second question is that, just curious, is that something happened in the first quarter in the NGO and natural gas production. Seems like dropping far more than that the type curve we have suggested.

出色的。第二個問題是，只是好奇，第一季非政府組織和天然氣生產是否發生了一些事情。看起來下降幅度遠遠超過了我們所建議的曲線類型。

Yeah, we had some adjustments that we made to some contracts that went from fixed fee to POP percent of proceeds, and we think that that reverses a bit in in Q2. So, I think you can run essentially 55% oil as your baseline for us going forward.

是的，我們對一些合約做了一些調整，從固定費用變為收益的 POP 百分比，我們認為這種情況在第二季度會有所逆轉。因此，我認為您可以將 55% 的石油作為我們未來發展的基準。

Okay, we do. Thank you.

好的，我們知道。謝謝。

Thanks, Paul.

謝謝，保羅。

Thank you. Leo Mariani with Roth.

謝謝。Leo Mariani 和 Roth。

I just wanted to ask about a couple of these cost items certainly in your guidance looks like LOE came down a little bit, but transportation rose a little bit. Not sure if that's related, to perhaps some of the adjustments you just talked about on the gas and the GL side, but just looking for a little bit of colour.

我只是想問其中幾個成本項目，當然在您的指導下，LOE 似乎下降了一點，但運輸成本卻上升了一點。不確定這是否與您剛才談到的有關氣體和 GL 方面的一些調整有關，但只是尋找一點顏色。

There. Yeah, I'll take GPT, quickly and give LOE to Danny, but GPT basically we decided to take more, molecules in kind on the gas side, so GPT goes up, but our gas realizations as a percent of, [9X] should go up a little bit. So that's the shift there, and I'll let Danny talk about the decrease in LOE.

那裡。是的，我會迅速採取 GPT 並將 LOE 交給丹尼，但基本上我們決定在 GPT 中採取更多的氣體分子實物，因此 GPT 會上升，但我們的氣體實現百分比 [9X] 應該會上升一點。這就是那裡的轉變，我將讓丹尼談談 LOE 的減少。

Yeah, on the LOE side really, we had a little bit of one-time issue or noise around the. Endeavor closed with regards to some of the water business and, we anticipate that there's a little conservatism based around the clothes, and we anticipate that LOE will come up from the one number, but you know we do like a little lower number than we had originally planned for the year and so you know we like our forward guide for LOE and know that it's going to come up from1Q but you know we'll be lower than we originally planned.

是的，在 LOE 方面，我們確實遇到了一些一次性問題或噪音。Endeavor 結束了部分水業務，我們預計在服裝方面會有些保守，我們預計 LOE 會從一個數字上升，但你知道我們確實喜歡比我們最初計劃的年度數字略低的數字，所以你知道我們喜歡我們對 LOE 的前瞻性指導，並且知道它將從第一季度開始上升，但你知道我們會低於我們最初的計劃。

Yeah, that's wanted to just ask, a little bit more kind of around the buyback here. So you guys were kind of good enough to kind of articulate your sort of red light, yellow light, kind of green light, sort of activity levels, with some good oil price kind of commentary there.

是的，我只是想問一下有關回購的更多資訊。所以你們能夠很好地表達你們的紅燈、黃燈、綠燈、活動水平，並對油價做出一些好的評論。

So we really kind of think about the buyback kind of being, sort of in the opposite direction. So when you guys are kind of green light and we're 65 plus oil approaching 70, should we just naturally assume that the buyback comes down a little bit? We're obviously in the red light situation, it's where you guys kind of push the pedal a little bit more that generally how you're kind of thinking about the framework?

所以我們確實認為回購是朝著相反的方向進行的。因此，當你們開綠燈並且我們的價格為 65 美元加上石油價格接近 70 美元時，我們是否應該自然而然地認為回購量會下降一點？我們顯然處於紅燈狀態，這就是你們加大力度的地方，你們一般如何考慮框架？

Yeah, that's right, I think that's a great way to think about it and it's, as we said in the letter. In our minds, the first test of our new business model of high free cash generation, high return of capital, and making the right decision to cut drilling CapEx in exchange for buying back shares at these levels.

是的，沒錯，我認為這是一種很好的思考方式，正如我們在信中所說的。在我們看來，這是我們新商業模式的第一次考驗，即高自由現金產生、高資本回報率，以及做出削減鑽探資本支出以換取在這些水平上回購股票的正確決定。

So, again, I think in today's environment, it makes sense to pay down, continue to pay down some debt, but allocate more capital to the buyback, again, we see our dividend as a fixed obligation and every million shares we get rid of in the market is a $4 million reduction annually to our dividend payments. So that in our mind translates to about a 3.5% to 4% dividend yield depending on the depending on the day and you know that's a fixed obligation that goes away.

因此，我認為在當今環境下，償還債務、繼續償還部分債務、但分配更多資金用於回購是合理的，我們將股息視為固定義務，我們在市場上出售的每一百萬股股票每年都會減少 400 萬美元的股息支付。因此，在我們看來，這相當於根據當天情況，股息收益率約為 3.5% 到 4%，而且您知道這是一項固定的義務，它會消失。

Thank you.

謝謝。

Thanks, Leo.

謝謝，Leo。

Thank you. Kalei Akamine, Bank of America.

謝謝。卡雷‧阿卡明 (Kalei Akamine)，美國銀行。

Hey, good morning, guys. I've got a couple here. Maybe first, can you talk about frac efficiency? I think on a prior call you guys mentioned that you were doing 100 per year, kind of up from 80, and you highlighted visibility on call at 120. Now if all four fleets are doing 120, then I think you're replacing a good chunk of one fleet. So can you just update us on where the progress is with respect to that goal? And if you kind of get these deficiencies before oil gets back to 65, I guess there wouldn't be much to add back.

嘿，大家早安。我這裡有一對。首先，您能談談壓裂效率嗎？我記得在之前的電話會議上你們提到過，你們每年要做 100 次，比 80 次有所增加，並且強調了 120 次通話的可見性。現在，如果所有四個艦隊都達到 120 艘，那麼我認為你將取代一個艦隊的很大一部分。那麼您能否向我們介紹一下該目標的進展呢？如果在油價回到 65 之前就解決了這些缺陷，我想就沒有什麼可以補充的了。

Yeah, I mean, look, we always look at what is the well count required to, execute our plan, but I certainly think the completion team has done a fantastic job of driving execution and efficiencies, I think we highlighted in the release that, they're completing, mid 3,000 feet per day on average, but we've certainly seen them touch well above 4,000 feet per day on a pad. And so, we know that's possible, and we know that number 120 wells a year for crew is certainly achievable. It's just doing the things we need to do from a well bore construction, from a pad configuration and water infrastructure standpoint to be able to. Execute to that level on a programmatic basis, and I don't think we're that far away from being able to achieve that and certainly once we do, it just mean less fleets to achieve our total well count for the program.

是的，我的意思是，我們總是專注於執行計劃所需的井數，但我確實認為完井團隊在推動執行和效率方面做得非常出色，我想我們在新聞稿中強調過，他們平均每天完成 3,000 英尺中段，但我們確實看到他們在平台上每天完成 4,000 英尺以上。所以，我們知道這是可能的，而且我們知道每年為工作人員打井 120 口井肯定是可以實現的。這只是從井筒施工、平台配置和水基礎設施的角度來做我們需要做的事情。按計劃執行到這個水平，我認為我們距離實現這一目標並不遙遠，一旦我們做到了，就意味著用更少的船隊來實現該計劃的總井數。

Thanks for that. The second one is on the 25 range. It's kind of been lowered here, but it's not been narrowed. It's still a $400 million spread between the low and the high ends. Can you help us understand the path to the lower number 3.4, i.e., what needs to go right to hit that number?

謝謝。第二個在 25 範圍內。這裡的高度似乎降低了，但並沒有變窄。最低價和最高價之間仍有 4 億美元的差距。您能幫助我們理解達到較低數字 3.4 的路徑嗎，即需要怎麼做才能達到這個數字？

I don't think it's going to be, it wouldn't necessarily be a positive thing for the macro if we got to the low end, right, at 3, 4, that's kind of the, use the analogy, the red-light scenario, sub 50 probably dropping another crew, I do think, the midpoint at today's service prices is kind of the world where we level off at 485,000 barrels of oil a day in Q3 and bring back fifth crew to stay there in Q4. So that's kind of midpoint, high end feels far away today, but you know there is a world where prices do snap back, and we want to get back to our 500,000 barrels of oil a day run rate and well that seems far away today, it would be a good problem to have.

我不認為這會是件好事，如果我們跌到低端，在 3、4 點，那有點像，用類比，紅燈場景，低於 50 可能會再裁掉一個船員，我確實認為，以今天的服務價格為中間點，我們在第三季度穩定在每天 485,000 桶不一定是對宏觀經濟來說是一件好事。所以，這有點像中間點，高端在今天看來還很遙遠，但你知道，世界上的價格確實會回升，我們希望回到每天 50 萬桶的石油生產率，雖然這在今天看來還很遙遠，但這將是一個好問題。

Thanks, Kaes.

謝謝，Kaes。

Thank you.

謝謝。

Thank you. (Operator Instructions). Doug Leggate, Wolfe Research.

謝謝。（操作員指令）。道格‧萊格特（Doug Leggate），沃爾夫研究公司。

Hey guys, thanks for getting me on. Kaes and Travis, again, I'll add my congrats to both of you guys and I look forward to see what's next for you both. I want to ask a question about the capital efficiency because you made quite a big deal about that in your presentation deck, and I kind of want to walk you through the math very quickly. You've got $400 million off your capital, and you've lost 55 million barrels for the year.

嘿夥計們，謝謝你們讓我加入。Kaes 和 Travis，我再次向你們表示祝賀，並期待看到你們接下來的表現。我想問一個關於資本效率的問題，因為您在簡報中對此進行了大量的闡述，我想很快地向您介紹數學知識。你的資本損失了 4 億美元，今年卻損失了 5,500 萬桶石油。

So, I'm trying to understand what's the trade-off to decide to add that capital back, because it seems to me that you get higher free cash flow in the current plan than you would if you added $400 million back to get $5 million. So how do you think about sustaining capital and what's the optimization decision around that? I've got a quick follow up please.

因此，我試圖理解決定重新增加這筆資本的權衡是什麼，因為在我看來，在當前計劃中獲得的自由現金流比增加 4 億美元以獲得 500 萬美元時獲得的自由現金流要高。那麼您如何看待維持資本以及圍繞該資本的最佳化決策是什麼？請盡快跟進。

Yeah, I think the nuance there is the path of the production throughout the year, right, we were well above 500,000 barrels of a net in April, declining off, and so you put this big gap in activity in the middle of the year, it's really not a full year run rate number.

是的，我認為這裡的細微差別在於全年的產量軌跡，對的，4 月份我們的淨產量遠高於 50 萬桶，然後開始下降，所以如果你把這麼大的差距放在年中，這實際上不是一個全年的運行率數字。

So, I think it comes down to, what cap what level of production are you sustaining and how much capital does it take, and I still think that, If we're at 500,000 barrels of oil a day, run rate, we're closer to a billion dollars a quarter of CapEx, but down to $485, $480. You know it's closer to this these 900 quarters with two quarters below 900 in Q2 and Q3. So I think there's just a little nuance here with how quickly things are changing and how quickly production is heading down for a couple quarters while then stabilizing in Q4.

所以，我認為這取決於你要維持什麼樣的產量上限和水平，以及需要多少資金，我仍然認為，如果我們以每天 50 萬桶的產量運行，我們的資本支出接近四分之一十億美元，但會下降到 485 美元、480 美元。您知道，這更接近 900 個季度，其中第二季和第三季有兩個季度低於 900。所以我認為這裡只是有點細微的差別，事情變化得如此之快，產量在幾個季度內下降得如此之快，然後在第四季度趨於穩定。

Got it. That's really helpful. My follow up is that I think you're moving the oil market today, frankly, and I wondered if you could share, maybe Travis asked you to elaborate a little bit on some of the comments you made. You basically called a top on US oil production of shale anyway.

知道了。這真的很有幫助。我的後續問題是，坦白說，我認為您今天正在推動石油市場的發展，我想知道您是否可以分享一下，也許特拉維斯要求您詳細說明您所做的一些評論。無論如何，你基本上已經預測了美國頁岩油產量的頂峰。

What is your non-operated insight to what others are doing, and I'm just curious if you could maybe put some numbers as to how you see the sensitivity of rig decline relative to the rollover and production. Any colour you can add from the work you've done would be helpful.

您對其他人的做法有何非操作性見解？我只是好奇您是否可以提供一些數字來說明您如何看待鑽機下降相對於滾動和生產的敏感度。您從已完成的工作中添加的任何顏色都會有所幫助。

Yeah, it does, I think we really focus on anecdotes, right. We know a lot of people in the business. We know a lot of people on both the public and the private side, and Midland's a, well, we're a large public company based in Midland. We know everybody that's picking up a rig to go drill, 3 Barnett wells or 3 Dean wells or, this unit they picked up in the Delaware Basin and every single conversation I've had with those types of operators is that this oil price doesn't work and they're going to be very, and then traditionally, those are acreage positions that have higher break evens, right.

是的，我認為我們確實關注軼事，對吧。我們認識這個行業的很多人。我們認識許多公共和私營部門的人士，米德蘭是一家總部位於米德蘭的大型上市公司。我們知道每個人都在拿起鑽機去鑽探，3 口巴奈特井或 3 口迪恩井，或者他們在特拉華盆地拿起的這個裝置，我與這些類型的運營商的每一次談話都是這樣的，這個油價不起作用，而且他們會非常，然後傳統上，這些是具有更高盈虧平衡點的土地位置，對吧。

So, all of that is getting pushed to the right, very clearly other basins that don't have sub 40 break even inventory like the Permian are having the same discussions and so our kind of commentary is that the marginal barrel in the US is just not being produced today, and we're seeing it already in terms of frac activity, frac count, even some pipeline scrapes are down, you look at, Midland Houston spreads, those have narrowed, so you know I just think the marginal barrel is being pushed to the right.

因此，所有這些都被推向了右邊，很明顯，其他沒有低於 40 盈虧平衡庫存的盆地（如二疊紀盆地）也在進行同樣的討論，因此我們的評論是，今天的美國邊際原油產量根本就沒有被生產出來，而且我們已經從壓裂活動、壓裂數量，甚至一些管道報廢率下降等方面看到了這一點，你知道右邊已經縮小，所以一些管道報廢率。

Again, we don't have a crystal ball in the rest of the world, but we have a very good view of what the US looks like and right now that's a business that's slowing dramatically and likely declining in terms of production.

再說一次，我們對世界其他地方沒有水晶球，但我們對美國的情況有很好的了解，目前美國的業務正在急劇放緩，產量可能會下降。

Terrific guys. Good luck and thanks for your answers.

太棒了夥計們。祝你好運，謝謝你的回答。

Thanks, Doug.

謝謝，道格。

Thanks Doug.

謝謝道格。

Thank you. I am showing no further questions at this time. I would now like to turn it back to Travis Stice for closing remarks.

謝謝。我目前沒有其他問題。現在我想請特拉維斯·斯蒂斯做最後發言。

Thank you, guys, for listening in today and for your questions and thanks for your support over these last 15 years as well. You all have any questions. How to get a hold of us. You all have a great day. God bless you.

謝謝大家今天的收聽和提問，也謝謝你們在過去 15 年的支持。大家還有問題嗎？如何聯絡我們。祝大家有個愉快的一天。上帝保佑你。

Thank you for your participation in today's conference. This does conclude the program. You may now disconnect.

感謝大家參加今天的會議。該計劃確實就此結束。您現在可以斷開連線。