Diamondback Energy, Inc. (NASDAQ:FANG) Q1 2024 Earnings Call Transcript

Arun Jayaram: Great. Thanks a lot.

Kaes Van’t Hof: Thanks, Arun.

Operator: Our next question comes from the line of David Deckelbaum of TD Cowen. Your line is now open.

David Deckelbaum: Good morning, Travis, Kaes and team. Thanks for your time today.

Travis Stice: You’re welcome, David. Good morning.

David Deckelbaum: Maybe, this question is for both of you guys. But considering the positioning a bit early with the debt that you raised earlier this month, now the expectation that the deal will close at the end of the year with Endeavor. You talked about kind of the synergy expectations in the last series of questions. Can you give us an update on how you’re thinking about that initial sort of non-core sale asset target and maybe some of the updated timing around those thoughts considering the markets changed a bit, especially around the cast consideration portion?

Kaes Van’t Hof: Yes. I think what’s changed is just timing, right? I think the projects we see as non-core asset sales or the asset sales to subsidiaries we have, it’s still the same. Endeavor has a really good midstream business that would fit well with our midstream JV. They have a significant mineral business that I think is going to be a game changer for Viper, if those two businesses are combined. And our strategy to execute on those trades has not changed. It’s just been pushed out to the right. So, on top of that, there’s an $8 billion cash consideration. That continues to be worked down with free cash flow between sign and close. **