Viper Energy Inc (VNOM) 2024 Q1 法說會逐字稿

Good day, ladies and gentlemen, and thank you for standing by, and welcome to the Viper Energy First Quarter 2024 earnings conference call. At this time, all participants are in a listen only mode. After the speakers' presentation, there will be a question and answer session. To ask a question. You will need to press star one one on your telephone keypad. At this time, I would like to turn the conference over to Mr. Adam Lawlis, Vice President of Investor Relations. Sir, please begin.

女士們、先生們，美好的一天，感謝你們的支持，歡迎參加 Viper Energy 2024 年第一季財報電話會議。此時，所有參與者都處於只聽模式。演講者演講結束後，將進行問答環節。問一個問題。您需要在電話鍵盤上一一按星號。現在，我想把會議交給投資者關係副總裁 Adam Lawlis 先生主持。先生，請開始吧。

Yes, good morning and welcome to Viper Energy First Quarter 2024 conference call. During our call today, we will reference an updated investor presentation, which can be found on Viper's website. Representing Viper today are Travis Stice, CEO, Kaes Van’t Hof, President and Austin deal filling Vice President.

是的，早上好，歡迎參加 Viper Energy 2024 年第一季電話會議。在今天的電話會議中，我們將參考更新的投資者演示文稿，該演示文稿可以在 Viper 的網站上找到。今天代表 Viper 的是執行長 Travis Stice、總裁 Kaes Vanât Hof 和奧斯汀交易執行副總裁。

During this conference call, the participants may make certain forward-looking statements relating to the Company's financial condition, results of operations, plans, objectives, future performance and business. 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.

在本次電話會議期間，與會者可能會就本公司的財務狀況、營運績效、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，由於多種因素，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 SEC 提交的文件中找到。

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

此外，我們將參考某些非公認會計準則衡量標準，並在昨天下午發布的收益報告中找到與適當公認會計準則衡量標準的對帳。我現在將把電話轉給崔維斯。

Thank you, Adam, and welcome, everyone, and thank you for listening to Viper Energy's First Quarter 2024 Conference Call. First quarter was a strong start to the year for Viper in the period, which uniquely highlighted the benefits of Viper's business model and high-quality assets. Despite commodity prices declining during the quarter. Viper's continued production growth, along with our best in class cost structure, allow for us to increase our cash available for distribution per share quarter over quarter. Importantly, as a result of our strong financial and operational results. Our Board has declared a combined base plus variable dividend for the first quarter of $0.59 a share. Looking specifically at operations both activity and well productivity trends across our acreage position continue to be encouraging. As a result, we have initiated production guidance for the second quarter that implies over 3% growth relative to the first quarter. It is important to note that this guidance takes into account the divestiture of our non Permian assets losing their production contribution for two months of the quarter on a pro forma basis. So including the loss of roughly 450 barrels of oil per day from the divestiture, our true organic growth quarter over quarter is expected to be almost 5%. Additionally, we have also provided updated production guidance for the full year 2024 forward, while the midpoint of this guidance range has been reduced by 250 barrels of oil per day versus our previous guidance range. That loss is entirely attributable to the loss of the production contribution from the non Permian assets for the remaining seven months of 2024.

謝謝 Adam，歡迎大家，並感謝您收聽 Viper Energy 的 2024 年第一季電話會議。第一季是 Viper 今年的強勁開局，這獨特地凸顯了 Viper 商業模式和優質資產的優勢。儘管本季大宗商品價格下跌。Viper 的持續產量成長以及我們一流的成本結構使我們能夠逐季增加可用於每股分配的現金。重要的是，由於我們強勁的財務和營運業績。我們的董事會宣布第一季的合併基本股利和可變股利為每股 0.59 美元。具體來說，我們整個區塊的活動和油井生產率趨勢繼續令人鼓舞。因此，我們啟動了第二季的生產指導，這意味著相對於第一季成長超過 3%。值得注意的是，本指導意見考慮了我們非二疊紀資產的剝離，預計該季度兩個月的生產貢獻將喪失。因此，算上每天因剝離而損失的約 450 桶石油，我們真正的季度環比有機成長預計將接近 5%。此外，我們還提供了 2024 年全年的更新產量指導，而該指導範圍的中點已比我們先前的指導範圍減少了 250 桶/日石油。這一損失完全歸因於 2024 年剩餘 7 個月非二疊紀資產的生產貢獻損失。

For a further point on the continued strong activity levels across our acreage position, the implied average production for the second half of 2024 represents a roughly 2% increase relative to the midpoint of our second quarter production guidance range.

進一步說明我們的種植面積持續強勁的活動水平，2024 年下半年的隱含平均產量相對於我們第二季度產量指導範圍的中點增長了約 2%。

Looking more long-term at potential inventory expansion during the first quarter, Diamondback completed its first test of the Wolfcamp D in Spanish Trail with two wells being turned to production of these two wells, only one was developed under an existing Wolfcamp B well as to test vertical communication between the two zones. To date, we have seen similar performance between the two wells and therefore, believe that there's enough vertical separation between the two zones to limit the current child effect. The initial takeaway is that the Wolfcamp D in Spanish Trail can be effectively developed below existing Wolfcamp B wells. And while they are not the highest returning projects in Diamondback's portfolio. They can't compete for capital over the next several years, especially inclusive of fiber's high NRI in the existing infrastructure that's in place. This test derisks a substantial amount of net inventory for Viper. And as a result, it gives confidence to an extended outlook for potential organic production growth.

從更長遠的角度來看，第一季潛在的庫存擴張，Diamondback 完成了其在 Spain Trail 的 Wolfcamp D 的首次測試，其中兩口井已投入生產，其中只有一口是在現有 Wolfcamp B 井下開發的測試兩個區域之間的垂直通訊。到目前為止，我們已經看到兩口井之間的表現相似，因此，相信兩個區域之間有足夠的垂直間距來限制當前的子效應。最初的結論是，Spanish Trail 的 Wolfcamp D 可以在現有 Wolfcamp B 井下方進行有效開發。雖然它們並不是響尾蛇投資組合中回報率最高的項目。他們無法在未來幾年內爭取資本，尤其是在現有基礎設施中包含光纖的高 NRI。該測試消除了 Viper 大量淨庫存的風險。因此，它使人們對潛在有機生產成長的長期前景充滿信心。

Separately, we have increased our guidance for cash G&A slightly as a result of increased costs associated with our conversion to a corporation. But we continue to run our business extremely efficiently and with peer-leading per unit costs, our continued best in class cash margins and free cash flow generation, along with the previously detailed organic production growth should enable Viper to continue to return a substantial amount of capital to our shareholders, primarily through our base plus variable dividend. Operator, please open the line for questions.

另外，由於我們轉型為公司相關的成本增加，我們略微提高了現金管理費用指引。但我們繼續以極其高效的方式運營我們的業務，並以同行領先的單位成本、我們持續一流的現金利潤率和自由現金流生成，以及之前詳細的有機生產增長，應使 Viper 能夠繼續回報大量主要透過我們的基礎加上可變股息向我們的股東提供資本。接線員，請開通提問線。

Ladies and gentlemen, if you have a question or comment at this time, please press star one one on your telephone keypad. If your question has been answered or you wish to remove yourself from the queue, simply press star one one. Again, once again, if you have a question or comment at this time, please press star one one on your telephone. Please stand by while we compile the Q&A roster. Our first question or comment comes from the line of Neal Dingmann from Truist Securities. Your line is and

女士們、先生們，如果您此時有疑問或意見，請按電話鍵盤上的星號一一。如果您的問題已得到解答或您希望將自己從佇列中刪除，只需按星號一一即可。再次強調，如果您此時有任何問題或意見，請在電話上按星號一一。我們正在整理問答名單，請稍候。我們的第一個問題或評論來自 Truist Securities 的 Neal Dingmann。你的線路是和

more and Travis and team into in the past other nice quarter. Travis. My first question is on capital allocation for you or Kaes specifically your thoughts on potentially lowering the payout ratio until the leverage declines as you did on it over and saying, I'm just wondering maybe secondly, there, how in the future you all would view buybacks versus dividends in this vehicle. As I know, some mineral investors continue to prefer more exclusively dividends?

更多和特拉維斯和團隊進入了過去的另一個美好季度。崔維斯.我的第一個問題是關於你或凱斯的資本分配，特別是你對可能降低派息率直到槓桿率下降的想法，就像你所做的那樣，我只是想知道，其次，你們將來會如何做查看該工具的回購與股利。據我所知，一些礦產投資者仍然更喜歡更純粹的股息？

Yes, good. Good question, Neal, and welcome to the call. I think for us the capital allocation philosophy at Viper, it remains a focus on cash distribution over of that. I think there have been times of stress over the past few years where we've allocated much more capital to the buyback versus the cash distribution. And that has been are very value accretive deal for Viper shareholders. Listen, stocks performed well. I mean, we still think there's a lot of value to be to be earned and on the mineral business. But right now, we're probably leaning more towards cash versus versus buybacks as you can see in the first quarter. And I think we're also continuing to grow that base distribution consistently on kind of a semiannual basis, and that will continue as well.

對很好。問得好，尼爾，歡迎來電。我認為對我們來說，Viper 的資本分配理念仍然是現金分配。我認為在過去的幾年裡，我們曾經歷過一些壓力時期，我們為回購分配了更多的資金，而不是現金分配。這對於 Viper 股東來說是非常有價值的交易。聽著，股票表現良好。我的意思是，我們仍然認為礦產業務可以賺取很多價值。但現在，正如您在第一季看到的那樣，我們可能更傾向於現金而不是回購。我認為我們還將繼續以半年為基礎持續擴大基礎發行量，而且這種情況也將持續下去。

And on your question on debt reduction and the percent of free cash returned the business on the mineral side to generate it generates pure free cash flow. So it's very easy to delever. I think generally that the first quarter had some working capital headwinds as well as we did a couple of small deals in the Permian second quarter should see net debt go down pretty significantly with free cash generation as well as on the sales and on Permian assets. So we comfortably use business near a turn of leverage at year end as income a turn of leverage for mineral businesses is a very conservative funding structure. I think the but the part of that part of the job of our team over the course of this year and into next is as this business gets bigger, we should trying to earn a lower cost of capital with the public bond investors, the rating agencies as they start to understand the pure free cash flow nature of this business.

關於您關於債務減少和自由現金百分比的問題，礦產方面的業務返還以產生純粹的自由現金流。所以去槓桿化是非常容易的。我認為，總體而言，第一季存在一些營運資本阻力，而且我們在二疊紀第二季度進行了幾筆小額交易，隨著自由現金的產生以及銷售和二疊紀資產的增加，淨債務應該會大幅下降。因此，我們在年底輕鬆使用接近槓桿率的業務，因為礦業企業的收入槓桿率是一種非常保守的融資結構。我認為，但我們團隊在今年和明年的工作的一部分是，隨著這項業務變得越來越大，我們應該努力從公共債券投資者、評級機構那裡獲得較低的資本成本當他們開始了解這項業務的純粹自由現金流性質時。

Quick details and then just a quick follow-up on the mineral position. I was looking at the slides continue to notice the dollar position you have in Martin County. So my question there is just would you take over once you take over the Endeavour acreage?

快速提供詳細信息，然後快速跟進礦物位置。我在看幻燈片時繼續注意到馬丁縣的美元狀況。所以我的問題是，一旦你接管奮進的土地，你會接手嗎？

Well, activity, there stay relatively the same. I mean, given what you have under the pro forma company or do you anticipate potential a little bit of change here? I just trying to figure out how much really you have to dial back exclusively versus sort of what you have with the combination here?

嗯，活動方面，保持相對不變。我的意思是，考慮到您在備考公司的情況，或者您預計這裡可能會發生一些變化嗎？我只是想弄清楚，與這裡的組合相比，您到底需要專門回撥多少？

I mean, I think I think for Viper, you know that exposure to that area is going to be huge for the future future growth of the business. That area, obviously, some of the best rock in United States continues to get better, continues to add more zones. That's kind of where we've been seeing really good Wolfcamp D results. I think pro forma with Endeavour, the combination there is going to be one of the best places to drill for oil in the United States with some combination of longer laterals, big pad, high mineral interest, that's going to be kind of the focal point. We're going to have a majority of our rigs in that Martin County area.

我的意思是，我認為對於 Viper 來說，你知道涉足該領域對於該業務的未來成長將是巨大的。顯然，美國一些最好的搖滾地區繼續變得更好，並繼續增加更多的區域。這就是我們在 Wolfcamp D 看到的非常好的結果。我認為，與奮進號相比，這裡的組合將成為美國最好的石油鑽探地點之一，具有較長的支線、大的平台、高礦產興趣，這將成為焦點。我們的大部分鑽孔機將位於馬丁縣地區。

Yes, that's I was wondering, I mean, I guess there is potential for lease bonuses and all that just for something down the future, right?

是的，這就是我想知道的，我的意思是，我想有可能獲得租賃獎金以及所有這些只是為了未來的事情，對嗎？

Yes. Well. I mean, listen, I think there's potential for refinances across Viper's position. We've seen that a bit with the Barnett and Woodford leasing taking off here. There's been some Wolfcamp D leasing taking off because that's not always been held up for more vertical Wolfberry days.

是的。出色地。我的意思是，聽著，我認為 Viper 的部位有可能進行再融資。隨著巴尼特和伍德福德的租賃業務在這裡蓬勃發展，我們已經看到了這一點。Wolfcamp D 的一些租賃業務開始興起，因為這種情況並不總是會在更多垂直 Wolfberry 的日子裡受到阻礙。

And just your thoughts about the benefits to the mineral business view on minerals, you own every piece of every barrel of oil produced in that. And that's a section or unit forever regardless of if it's, as you know, primary development, secondary zones, who knows what happens you know down the road. That's just the beauty of being a mineral owner.

只要你對礦產業務的好處的看法，你就擁有其中生產的每一桶石油的每一塊。這永遠是一個部分或單位，無論它是，如你所知，主要開發區、次要開發區，誰知道你知道將來會發生什麼。這就是作為礦主的美妙之處。

A great point. Thank you all.

一個很好的觀點。謝謝你們。

Thanks, Neil.

謝謝，尼爾。

Thank you. Our next question or comment comes from the line of Chris BAKER from Evercore ISI. Baker, your line is now open

謝謝。我們的下一個問題或評論來自 Evercore ISI 的 Chris BAKER。貝克，您的線路現已開通

for your morning guys. And just was hoping you could talk a little bit more about the Wolfcamp D. I'm just any additional color you can share on early results plans for testing and maybe just how that fits into sort of the broader organic inventory opportunity set that you guys see today?

為了早起的朋友們。只是希望你能多談談 Wolfcamp D。

Chris, we're going I'll Hartmann our chief engineer, respond to that question.

克里斯，我們要請我們的首席工程師哈特曼來回答這個問題。

Yes, Chris, I know this was a test the process of the WD. in Spanish Trail like we mentioned in the opening remarks, we kind of wanted to test the performance of the D under existing Wolfcamp B wells. And then without that, and really, really pleased with the initial performance here, both of those wells I feed above 1,000 barrels a day, and you know, really kind of tracking on top of each other. So we don't we don't think we're seeing any degradation from the Wolfcamp B wells being on cost. And I think that's something that the returns are obviously uplifted with the Viper ownership it at the same level and so I think that's something that we'll continue to do anyway across that position.

是的，克里斯，我知道這是對 WD 的一個測試過程。正如我們在開場白中提到的，在 Spain Trail 中，我們想測試 D 在現有 Wolfcamp B 井下的表現。如果沒有這個，我對這裡的最初表現真的非常非常滿意，我每天給這兩口油井注入超過 1,000 桶，你知道，真的有點互相跟踪。因此，我們認為 Wolfcamp B 井的成本不會出現任何下降。我認為，隨著 Viper 所有權處於同一水平，回報率明顯提高，因此我認為我們無論如何都會繼續在該職位上做的事情。

Great, thanks. And then just as a follow up on the other question, I think we keep getting is just realizing it's early days, but I'm maybe just frame up the opportunities on the M&A front, realizing there's likely a big drop-down coming a little bit more visibility in terms of on when that deal will close.

萬分感謝。然後，就像另一個問題的後續行動一樣，我認為我們不斷意識到現在還為時過早，但我可能只是在構建併購方面的機會，意識到可能會出現大幅下滑關於交易何時完成的信息更加清晰。

But just you just remind us in terms of just big picture, sort of check the type, you know, data points in terms of leverage? And just how to think about that, at least from where we are, if possible?

但您只是提醒我們從大局來看，檢查一下槓桿方面的數據點類型？如果可能的話，至少從我們所處的位置來思考這個問題？

Yes. Chris. I mean, listen, I think we're obviously disappointed the Diamondback endeavor deal has been delayed a bit, but we still have a lot of confidence as we go into closing in Q4. That probably puts the discussions between Viper and Diamondback or Viper and pro forma data back into kind of early 2025. But as you know, we like to move quickly and get things done. I think we're very excited about the opportunity set to put the mineral business from Endeavour with combined with bikers business and create kind of a true category killer in the mineral space, the size and scale that really hasn't been seen to date on top of that, if we did do that deal, we're certainly not looking to lever up the mineral business at the expense of the upstream business. We've never never done that. So we expect that trend to continue. In the interim. We're still looking at deals that Vibra. There's there's been a few packages out there of size that have interested us, we've looked pretty closely and I think we'll continue to be in the fight on those deals. But as you think about the next three to five years of the Viper business model, it's really to be competitive in the 10 figure plus deals that we we tend to be in a league of our own on that on that size.

是的。克里斯。我的意思是，聽著，我認為我們顯然對響尾蛇努力交易被推遲了一點感到失望，但在第四季度結束時我們仍然充滿信心。這可能會讓 Viper 和 Diamondback 或 Viper 和預計數據之間的討論回到 2025 年初。但如您所知，我們喜歡快速行動並完成工作。我認為我們對有機會將 Endeavor 的礦產業務與自行車業務相結合併在礦產領域創造出真正的類別殺手感到非常興奮，其規模和規模是迄今為止從未見過的最重要的是，如果我們確實進行了這筆交易，我們當然不會尋求以犧牲上游業務為代價來提高礦產業務的槓桿率。我們從來沒有這樣做過。因此，我們預計這種趨勢將持續下去。在過渡期。我們仍在尋找 Vibra 的交易。有一些規模較大的套餐讓我們感興趣，我們已經仔細研究過，我認為我們將繼續為這些交易而奮鬥。但當你思考未來三到五年的 Viper 商業模式時，你會發現，真正要在 10 位數以上的交易中具有競爭力，我們往往在這種規模上處於領先地位。

Great. Thanks appreciate the color.

偉大的。謝謝欣賞顏色。

Thanks, Chris.

謝謝，克里斯。

And thank you. Our next question or comment comes from the line of Betty Jiang from Barclays. Mr. Yang, your line is now some are on a Travis case.

謝謝你。我們的下一個問題或評論來自巴克萊銀行的 Betty Jiang。楊先生，您的電話現在是關於特拉維斯的案件。

Maybe a follow up on the Denver and that opportunity, I guess, given the materiality of the EBITDA, the asset you outlined at the time of the acquisition, then just the variety types of mineral interest that's sitting within Dover. How should we be thinking about the size of that drop? Would it be it was one drop or a multiple tranches Yes.

考慮到 EBITDA 的重要性、您在收購時概述的資產，以及多佛境內的各種類型的礦產權益，我想也許是丹佛的後續行動和這個機會。我們應該如何考慮下降的大小？是一次還是多次？

Well, first of all, welcome back that it's good to hear your voice and look forward to continuing to cover Viper. I think I can't make any promises right. We've got two boards, you got to have discussions and and look at this business that this deal has closed. I think our intention is probably given the amount and size is to do this all in one fell swoop in. And I think that generally means more exposure to a consistent development plan for a longer period of time. But some again, it's not completely my decision. So we'll see what everyone everyone decides, but kind of be our preference to tell the cleanest story possible.

好吧，首先，歡迎回來，很高興聽到你的聲音，並期待繼續報道 Viper。我想我無法做出任何正確的承諾。我們有兩個董事會，你必須進行討論並審視這筆交易已經完成的業務。我認為考慮到數量和規模，我們的意圖可能是一舉完成這一切。我認為這通常意味著在更長的時間內更多地接觸一致的發展計劃。但又有些話，這並不完全是我的決定。所以我們會看看每個人的決定，但我們傾向於盡可能講述最乾淨的故事。

And then one of the key advantages of the Denver market or is it increased visibility on Viper Tivity? Can you remind us what Viper's current exposure to a diverse development program? And if you are able to make any headways to increase your exposure to their activity through just organic leasing and other smaller Metro pick.

那麼丹佛市場的主要優勢之一是提高 Viper Tivity 的知名度嗎？您能否提醒我們 Viper 目前面臨的多元化發展計畫是什麼？如果您能夠透過有機租賃和其他較小的 Metro 選擇取得任何進展，以增加您對他們活動的接觸。

It would be hard to doing materials to continue to improve on that exposure in a high level right now, about 55% of our production comes from Diamondback. I don't know, I would probably say less than less than 10, probably seven or 8% of our production comes from Endeavour. I do think deals like the GRP. deal had a lot of exposure to both Endeavour and Pioneer units on top of Diamondback's. So yes, I think just generally come in our exposure to ourselves is what we prefer. The second to that would be exposure to good operators like Endeavour like Pioneer and the areas with really good rock and really good line of sight to development.

目前，材料生產很難繼續提高高水準的曝光度，我們大約 55% 的產量來自響尾蛇。我不知道，我可能會說我們的產量中不到 10%，可能有 7% 或 8% 來自 Endeavour。我確實認為像 GRP 這樣的交易。除了響尾蛇公司之外，這筆交易也對奮進公司和先鋒公司都有很大的投資。所以，是的，我認為一般來說，我們更喜歡接觸自己。其次是接觸像先鋒公司這樣的優秀營運商，以及擁有真正良好岩石和真正良好開發視線的地區。

Right. Makes sense you. Thanks. Very.

正確的。有道理你。謝謝。非常。

Thank you. Our next question or comment comes from the line of Paul diamond from Citi. Mr. Diamond. Your line is now open.

謝謝。我們的下一個問題或評論來自花旗銀行的保羅鑽石系列。鑽石先生。您的線路現已開通。

Gears a bit on the M&A dialogue to kind of the opportunity set you're seeing in third parties, kind of the smaller deals. I know with the volatility, we've seen some disparity and a bid-ask.

稍微調整一下併購對話，以了解您在第三方中看到的機會集，即較小的交易。我知道隨著波動性的增加，我們看到了一些差異和買賣。

Brad, I just didn't know if you could comment on what you all are seeing.

布拉德，我只是不知道你是否可以對大家所看到的內容發表評論。

Yes. I mean, I think I missed the first part of the question. I mean, you're kind of talking about the overall M&A environment more often kind of talk about what we've been seeing.

是的。我的意思是，我想我錯過了問題的第一部分。我的意思是，您更多地談論的是整體併購環境，更多的是談論我們所看到的情況。

Yes, I think it's still pretty competitive on what we call a ground game with the smaller deals, you know, call it $50 million and below really especially in the kind of $5 million range. And below. I think what we've seen an evolution in the minerals market rightly interest seven years ago, a lot of private equity money came into the space, and that's kind of where the knife fight fight was you go organically put together position of, but as the industry matured a little bit, you know, you have bigger funds involved now and it kind of all of that capital is rolling up. So we've not seeing a ton of deals transact right directly to the owner anymore. So it just brings more competition on on what's available we were able to get a couple of smaller deals done in first quarter, and that's kind of the benefit we have because of our relationships out here. But like Keith mentioned, before. I think where we see our strategic advantage to report on from an M&A standpoint is going to be on the bigger deals. We can kind of leverage on the side the cost of capital that we have.

是的，我認為在我們所說的地面遊戲中，對於規模較小的交易，它仍然相當有競爭力，你知道，稱之為5000 萬美元及以下的交易，尤其是在500 萬美元的範圍內。還有下面。我認為七年前我們所看到的礦產市場的演變引起了人們的興趣，大量私募股權資金進入了這個領域，這就是你有機地整合立場的刀戰，但隨著這個行業已經成熟了一點，你知道，現在有更多的資金參與其中，所有的資本都在滾動。因此，我們不再看到大量直接向業主進行的交易。因此，這只會帶來更多的競爭，我們能夠在第一季完成幾筆較小的交易，這就是我們由於我們在這裡的關係而獲得的好處。但就像基斯之前提到的。我認為，從併購的角度來看，我們的策略優勢將在於更大的交易。我們可以利用現有的資本成本。

Understood. Thanks for the clarity. And just one quick follow-up on the 13.8 wells in active development. If we kind of run rate that out, we are we're starting to push the higher end of higher-end production guidance. Just to know if there's anything you guys are seeing in your timing or cadence that would shift that potentially up or down just given basically I'm reading it.

明白了。感謝您的澄清。這只是對正在積極開發的 13.8 口井的快速跟進。如果我們能做到這一點，我們就開始推動高端生產指引的高端。只是想知道你們在時間或節奏中是否看到任何東西可能會向上或向下移動，因為基本上我正在閱讀它。

Yes, we will continue to be pretty conservative with the timing assumptions on the third-party side, right? And we've got great visibility on the direct side of it. And that's what kind of drives a lot of growth into the second half of the year of the big bump that we're going to see from Q1 to Q2 here really is going to come from the third party size and a lot of the high concentration activity that we had underwritten in the GRP deal. But look, I mean, what we have contemplated right now for the rest of the year is third party wells only being turned production that if that have currently been slowed not making any assumptions on permits. So if activity continues to trend at like normal pace of maybe there could be some upside there. But we really don't really want to guide to what we can and what we can control.

是的，我們對第三方方面的時間假設將繼續相當保守，對嗎？我們在它的直接側面有很好的可見性。這就是我們將在今年下半年看到的從第一季到第二季的大幅成長的推動力，這實際上將來自第三方規模和大量的高度集中我們在 GRP 交易中承保的活動。但是，我的意思是，我們現在考慮的是，在今年剩餘時間內，第三方油井只會開始生產，如果目前生產速度已經放緩，則不會對許可證做出任何假設。因此，如果經濟活動繼續以正常速度發展，也許會有一些上行空間。但我們真的不想指導我們可以做什麼以及我們可以控制什麼。

Understood. Makes perfect sense. Thanks for your time.

明白了。很有道理。謝謝你的時間。

Thanks for.

感謝。

Thank you. Our next question or comment comes from the line of Derrick Whitfield from Stifel. Mr. Whitfield, your line is now open.

謝謝。我們的下一個問題或評論來自 Stifel 的 Derrick Whitfield。惠特菲爾德先生，您的電話現已接通。

Thank you. Good morning all, and thanks for you, Gary. My first question, I wanted to focus on your expected 2024 production profile after adjusting for the GRP. divest noncore divestitures, your second quarter guide suggests modest upside versus consensus. Is this the production profile you're expecting in your initial 2024 guidance? Or is there possibly some upside now based on the efficiencies we're experiencing at Diamondback?

謝謝。大家早安，謝謝你，加里。我的第一個問題是，我想專注於您在調整 GRP 後預計 2024 年的生產情況。剝離非核心資產，您的第二季指南顯示與共識相比有適度的上漲空間。這是您在最初的 2024 年指導中所期望的生產概況嗎？或者，根據我們在響尾蛇所經歷的效率，現在可能有一些好處嗎？

Yes, I to say on the time they have been taking the general profile still looks similar to what we expected coming into the year. I mean, I think a little bit of activity was brought forward in Q1 outperformed a bit and kind of normalizing for the divestiture, maybe Q2 looks a little bit better than expected. I mean, sitting here at May first trying to make assumption on what's going to happen in the back half of the year with the third party side. That's just not smart. We want to get super aggressive, but I mean, in a general sense, obviously, activities and brought forward a little bit relative to where it was two months ago on the current backlog of activity, wells is really strong. So I mean, there's been some more some some healthy loan growth throughout the year. We'll just kind of see where the exact numbers shake out as the year plays out.

是的，我要說的是，他們當時的整體概況看起來仍然與我們對今年的預期相似。我的意思是，我認為第一季提前進行的一些活動表現稍好一些，並且是剝離的正常化，也許第二季度看起來比預期好一點。我的意思是，五月坐在這裡，首先嘗試與第三方一起假設今年下半年會發生什麼。那隻是不聰明。我們希望變得超級積極，但我的意思是，從一般意義上講，顯然，相對於兩個月前的活動積壓，油井的活動確實很強勁。所以我的意思是，全年貸款出現了一些健康的成長。隨著這一年的結束，我們只會看看確切的數字會發生什麼變化。

Yes, I would say, Derek, you know, non-op, we always are pretty conservative at the beginning of the year. It seems like there's been some non-op brought forward in the model versus original expectations and and the same pieces kind of right read online within within a month of our expectations.

是的，我想說，德瑞克，你知道，非手術，我們在年初總是相當保守。與最初的預期相比，模型中似乎提出了一些非操作性內容，並且在一個月內就可以在網上閱讀到與我們預期相同的內容。

Terrific. And with the understanding that your revenues are dominated by oil and we're operating in a pin in a depressed log gas price environment and based on pipeline maintenance and tight egress conditions in? And do your leases protect you against negative gas realizations experienced with third parties?

了不起。並了解您的收入主要來自石油，而我們在低迷的原木天然氣價格環境中以及基於管道維護和嚴格的出口條件的情況下運營？您的租約是否可以保護您免受第三方經歷的負天然氣變現的影響？

Yes. So we won't have negative realizations have passed back to us, you know, and historically, if you just look at like our realizations relative to buying back, for example, fund typically better across the three products at a lot of our leases have cost for royalties on baked in there. And there's some of those operating expenses that that kind of feedback aspects of the arm to lease owner. So I mean it's certainly not bid on the gas side, but you wouldn't expect negative realizations for fiber.

是的。因此，我們不會有負面的認識回饋給我們，你知道，從歷史上看，如果你只看我們相對於回購的認識，例如，在我們的許多租賃中，這三種產品的資金通常更好在那裡烘烤的版稅成本。其中一些營運費用會回饋給租賃所有者。所以我的意思是，它肯定不是在天然氣方面出價，但你不會期望光纖方面會出現負面收益。

It's good to be the mineral are there through great uptake, and thank you, Dr.

很高興礦物質能夠被大量吸收，謝謝你，博士。

Thank you. Our next question or comment comes from the line of Leo Mariani from Ross MK. Mariano, your line is now.

謝謝。我們的下一個問題或評論來自 Ross MK 的 Leo Mariani。馬裡亞諾，現在是你的線路。

I just wanted to follow up quickly on this cash G&A guidance here on you kind of bumped it up versus where you guys were in kind of mid to late February when you came out with it originally or somebody just you're public, you know, sort of a new kind of organizational structure cost that has come in a little higher than expected as you guys kind of work through the accounting. Just curious as to kind of why have, as you know, tweaked only kind of a handful of months later,

我只是想快速跟進這個現金 G&A 指南，與你們在 2 月中下旬最初推出該指南時的情況相比，或者只是你們公開的人，你們知道，這是一種新型的組織結構成本，當你們進行會計工作時，它的成本比預期的要高一些。只是好奇為什麼如你所知，幾個月後才進行了調整，

they are still relative to the public, a C-Corp oral that has been more successes our go into Viper today, the end of the day, it's a it's a it's a real number on a percentage basis, but $0.2 on a business doing $200 million a quarter of cash flow is minimal and we just don't want to get get it right. The allocation between parents up, particularly as the sub continues to grow and get investor attention and likely will continue to stand on its own two feet.

他們仍然是相對於公眾而言的，C-Corp 的口述在我們今天進入Viper 時取得了更大的成功，歸根結底，這是一個以百分比為基礎的真實數字，但對於一家營業額為200 美元的企業來說，它是0.2 美元四分之一的現金流是微乎其微的，我們只是不想把它做好。母公司之間的分配增加，特別是隨著子基金的不斷增長並引起投資者的關注，並且很可能將繼續自力更生。

Okay. I appreciate that. And then just obviously, I know you guys have to get the ENDEAVOR deal closed? And sounds like obviously a large transaction could be coming here for Viper. Maybe it's early next year. I guess we'll wait on timing, but how do you think about kind of potential, you know, funding for that, you talked about kind of one times leverage really being a sweet spot, you know, for Viper. Would you kind of go above that temporarily to do kind of a major drop down, you know, from the ENDEAVOR thing combination? And if so, would you kind of prioritize, you know, maybe more debt paydown? Just can you kind of talk us through kind of high level, how you're thinking about kind of the funding part and kind of the limits on leverage?

好的。我很感激。很明顯，我知道你們必須完成 ENDEAVOR 交易？聽起來顯然 Viper 可能會收到一筆大額交易。也許是明年初。我想我們會等待時機，但你如何看待這種潛力，你知道，為此提供資金，你談到一次性槓桿對於 Viper 來說確實是一個最佳點。你會暫時超越這個目標，從 ENDEAVOR 的組合中做一些重大的下降嗎？如果是這樣，您是否會優先考慮償還更多債務？您能否從高層次向我們介紹一下，您是如何考慮融資部分和槓桿限制的？

Yes, we did our own where we see parents of consolidated leverage. Some of the expense of the parent doesn't make a ton of sense. We look at leverage consolidated. You know, certainly there's going to be a lot of cash flow that comes with whatever asset does end up. And if it doesn't have advisers' hands, I just think we're going to be responsible stewards of capital, both our upstream business and our mineral business.

是的，我們也做了自己的事情，我們看到了合併槓桿的母公司。父母的一些費用沒有多大意義。我們關注的是合併槓桿。你知道，無論資產最終變成什麼樣子，肯定都會帶來大量現金流。如果沒有顧問的幫助，我認為我們將成為負責任的資本管理者，包括我們的上游業務和礦產業務。

Okay, thanks.

好的謝謝。

Thank you, Leo.

謝謝你，利奧。

Thank you. I'm showing no additional questions in the queue at this time. I'd like to turn the conference back over to Viper CEO., Mr. Travis Stice.

謝謝。目前我在隊列中沒有顯示任何其他問題。我想將會議轉回 Viper 執行長 Travis Stice 先生。

Thank you again to everyone participating in today's call. If you have any questions, please contact us using the information provided.

再次感謝參加今天電話會議的所有人。如果您有任何疑問，請使用提供的資訊與我們聯絡。

Yes, ladies and gentlemen, thank you for participating in today's conference. This concludes the program. You may now disconnect, and everyone have a wonderful day.

是的，女士們、先生們，感謝你們參加今天的會議。程式到此結束。您現在可以斷開連接，每個人都有美好的一天。