Viper Energy Partners LP (NASDAQ:VNOM) Q3 2023 Earnings Call Transcript

Austen Gilfillian: On the production side, first, reported production will actually go up from Q4 to Q1. Q4, you’re going to have two third of contribution from the GRP assets we have the midpoint there of 24.5%. And then going into the first quarter. Actual reported production will go up given you have a full quarter of those assets contributions. But we’re trying to be intellectually honest there, look at it on a pro forma basis. And that’s kind of what we’re pointing to there with a slight sequential decline. And really, that in context, that follows back-to-back quarters the 5% growth that we’ve had here, and it’s mainly a result of just kind of the timing of some of these really large Diamondback pad where we have really high interest.

And we put in Slide 9 of the deck where we kind of show the visibility to the Diamondback schedule. The way that we kind of see 2024 right now with the Diamondback side having — owning an interest in about 60% of Diamondback’s completions next year with about a 6.5% interest within those wells, but that will be split roughly 40-60 between first half of the year and the second half of the year. So still significant growth coming, especially on the Diamondback operative side. Is it mostly significant second half weighted given some of the bigger pads? And then on the cost items, I mean, those are all very minimal. We’ve kind of been spending $6 million, $7 million, maybe $8 million a year in cash G&A. As production growth goes up and we grow the business, we’re not really having to add any people.

So on a per unit basis, but those should continue to trend down even further over time.

Leo Mariani: Okay, thank you.

Operator: Thank you. At this time, the Q&A session has now ended. I will now turn the call over to Travis Stice for closing remarks.

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

Operator: This concludes today’s conference call. Thank you for participating. You may now disconnect.