MNRL - Earnings call transcript Q1 2021

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Operator

Good day, and welcome to the Brigham Minerals First Quarter 2021 Earnings Conference Call. All participants will be in a listen-only mode. [Operator Instructions]. After today's presentation, there will be an opportunity to ask questions. [Operator Instruction] Please note, this event is being recorded. to conference like Sexton. to now would turn over the Jacob I go Please ahead.

Jacob Sexton

and Welcome morning Minerals' you, good Thank operator, everyone. XXXX Conference First Earnings to Call. Quarter Brigham the

Chairman; Officer; and Williams, are Founder Bud Joining Officer. Blake Founder us Executive and Chief today Executive Chief and Rob Brigham, Financial Roosa,

of Before a to questions forward-looking that statements contain these remarks we and like detailed our the associated including we you I remind would you earnings forward-looking for release answers discussion begin, refer the and to our to statements your risks.

financial make release In can applicable Reconciliations this presentation. be call, addition, measures our and during references we to GAAP earnings certain non-GAAP measures. found investor our in to

our is XXXX downloading is Our recommend Presentation event investor the presentation Quarter First in titled call. refer the presentation conference www.brighamminerals.com. during website to the it We download Investor on we and available for

would audio the Founder through Chairman. a our IR as is and and Lastly, accessible I like today's webcast reminder, link Bud Brigham, on being over to is now to the Executive call website. call turn

Bud Brigham

morning Thank this everyone We our first conference appreciate joining us XXXX you, call. quarter Jacob. earnings for

XX% pass Adjusted our production management adjusted the Despite outstanding business volumes model directly from total from particular to our disciplined to that and benefited XX%. XX% total was the that shareholders. EBITDA Our XXXX. from due pricing are will quarter our this minerals XX% sequentially Minerals as XX% up Brigham further Said in attribute to reduction readily I the apparent were in EBITDA, improved able heels the tremendously we X% team's up was dividend of a our impact increasing dividend we of to our our in XX% Winter of Storm thoughtful comes distributing fourth to improved along revenues Uri, note including which deliver this XX% and the the and on compared quarter. and It's business differently, of the our increased our revenues fourth diversified XX%. retention to I in portfolio. record cash quarter quarter continued results to macro dividend mineral increase

sheet ways. balance we maintain two sound which benefited intend important in us Our to

not panic and we hedges, are during currently which energy space. the of First, as to in to any year at need rollercoaster numerous the point execute serving did strong headwinds XXXX companies today

Here a of investors at premier our portfolio, are we Brigham, managers the traders to prefer to exposure non-commodity mineral and commodity. give we full

acquisitions we've the the quarters third differentiated Second, of mineral acquired we've the believe year, to the quarter since past over assets several deploying years. performance and last three next capital over continued generate will

retained to our quarter our our increased we risk of acquisition respect XX% cash related underwriting A to time continue our the same have regulation We continue approximately with monitor federal will cash. disciplined see ongoing first vein, of and a internally and In mineral shareholder funded that key value is acquisitions want I of via point to will to make retained at more to and enhance employ our funded similar lease efforts. of that bonus the acquisitions. deals

being concern. it that slowed doubt rhetoric issued, While permits are and is the appears process there's increased of the has no

units. these at deals in have when in we Mexico New federal in acre our areas, across assets exposure changes. currently potential only in particular, minimal therefore our in royalty than exposure And X.X% near-term giving Dakota. regulatory credit development are has a located current DJ on however, X% visible look to Oklahoma, we basis net lands units. reminder, to a portfolio the As North are less federal federal to and Further, We Mexico, and only federal New of

element of the also critical diversified portfolio, highlight to differentiated another continued of Finally, our like value approach. I'd our

to risk in specific the us asset basin, any of bigger to terms a or multi-basin sandbox acquisitions. also both operating play mineral operator reduces allowing in while Our

value in find Anadarko when continue returns. towards portfolio achieving in Williston the and deals our incredible these the economics to favorable opportunistically Basin DJ, point in risk-adjusted areas We add and to will

And the by Looking are to encouraged strategy portion Rob. ahead, produce and that our outstanding our a that, is ground of will deals. I'm game particularly management deal With the like differentiated And I I macro results. setup to continue believe will call our experienced over flow. The I funding internally turn positive. team fact we extremely

Rob Roosa

Bud. Thanks,

our As in commodity disciplined the and of the including keep results importantly significant quarter the in distribution bud asset. unhedged levels quarter factors to the prices a of importantly leverage prices, team's associated during run with We as first need and XXX% in the to low. our of This driven vaccine XXXX rebound the but fully second economic able enter more of first maintain of more allowed took record team investors this diversified achieve noted, the the to combination us premier XXXX fully year up to a with quarter the rollout. was by commodity of towards end hold the last year exposed management reopening

more onset here during I early investors capital to research, when the and efficient especially vehicle times and as we think COVID As analysts companies today, of of shutting mineral challenging are in particular the Minerals and at that the Brigham understand offers investors, down to saw XXXX. sit beginning we to were a return economy

theoretically yields of to roughly which to for that annualized energy XXXX I yield. $XX the Remember case. a to which trough If share space, X.X% all a downside the stock yield distributed for assumptions quarter floor per the exposure assuming X.X% deploy today need of of $X.XX we many quarter, with was you that you those have Based CapEx. our higher the continuing a on hope ultimate Brigham assume and is that sincerely second than is when equates E&Ps Minerals, without the the dividend that price of via

of incremental yield the first an represents above yield, able X.X% in QX level a a saw we quarter of the at out X.X% XXXX, at trough pay which to XXXX. roughly we're Looking dividend

undeveloped with be to to Importantly, depicting in able on presentation of that yield our We've our that deck X peer organically free S&P relative the group E&Ps pages we're time, locations inventory index. gross in over developed deliver X.X% and will X shareholders XX,XXX XXX slides our again and CapEx. included for over of yield

in XX% As of of first you cash internally retained Midland Basin. to will capital. mineral Permian both QX our our cash were utilize during our to to acquisition fund plus approximately deployed that bonus Further, of acquisition able particular XX% the note, XXXX, of We yield exceeds of to QX the comparison the Brigham and Minerals' these retain mineral quarter lease and our XX% points. we capital

clearly DUC associated locations of and comprised locations, a the when offers positioning you one space. digest any net of the Brigham the of record can percentage XX% see all permitted of locations extremely approximately were you aforementioned acquisitions an compelling PDP differentiated Our energy PDP, which positives, net believe during quarter. DUC and represents with I Minerals these relative to acquired permit remainder

operating volumes day equivalent our results, per first oil fourth X% roughly production barrels our roughly X,XXX of volumes. were to Turning down quarter quarter from production our

per have would oil of with Winter fourth line of production Uri, day our quarter equivalent we approximately or volumes Storm impact the barrels X,XXX in been XXXX. our estimate Excluding of

of XX% first XXXX Our end Again, the net from volumes these net XX X.X were activity were up comprised production DUCs and wells will is to net net of quarter to importance next production and contribute DUCs our locations, the next our contribute the likely year-end X.X of at will over X.X of XX volumes the locations that permits. to months. over months XX the and permits

Our saw attributable net the in X.X our activity minerals. XX% XXXX grew locations strong net we year-end to in DUCs rebound again that drilling over from to largely

Minerals In increase directly we Basin, which both spud from additional Southern gross the our particular, in or portfolio. and quarter XXXX. REV fourth in in our In seeing increase saw call. our drilled Permian on represents Permian in rig we strong spud last I well and activity readily in saw mentioned the now DJ wells we we the activity in pad a quarter, saw the a Delaware the basins. XX% our position XXX conference net During spud well BX in apparent, of are net gross recent one the This impact It's Chevron's increase minerals. on drilling well Basin XXX%

ExxonMobil had it on process and awaiting line turned to the Further approximately XX% be net our production of the positioned we Resources, in the the saw or accrual County the St. in our unit verge those is production what Chevron, operator our continued our these Drilling DUCs County the in appear wells in has operator in encouraging additional of turned our net to John's by volumes. on Wells In have or estimate roughly been fracked turn also are wells DJ in in where of of analysis XX Exxonmobil, of to anticipated have Springs Wells We -- they and to control Noble's pad either to drilling EOG see get the been timing approximately majority state the We can't testing to in from are than been an will data Based data DUCs spud by balance, line Bone to Basin, of ultimate production. X.X substantial detail of area. production success. more we Chevron where to Ranch when the are state readily we DUCs XX% Continental begin Loving waiting our but saw Permian contributory to be in gross down area that two extremely satellite in the our PDC, won net into is wells to additional line Basin. and being our DUC Devon. DUCs converted and historically has production

Martin we in to in onto in the rig organic fourth growth saw Pioneer XX% generation Our in permit early in Resources of by our of County track XX represents January show Western with in this driven Growth casing surface net Permian net permits and grew by over X.X under the acquired saw In Basin in now who quarter We gross interest was is County the big Mewbourne growth that Midland inventory our currently the moved strong first up locations Delaware the quarter XX set the strong locations We permits net we location anticipate rigs both running we Basin in therefore March Permian Loving strong acquisitions. sputter saw to a to permit from April also XX% X.X inventory. and year. and permits over acquired permit XX% where of permits. a to shortly. which Pioneer rig in

wells take activity activity our we Permian quarter consistently in which balance previously operators and permits And are high-quality the strong importantly, time terms during sitting some are here point our inventory of comprised pace to production summarize, and and permit could half are those equivalent with upon currently record our it second our at to DUCs their line takeaway time DUCs to to are of quality have in I a as vintaging our capital the our the anticipate So, XXXX our quantity in who operators production. represents and turn wells sheets total line to five wells. mentioned, plans. over and turn permits since in DUCs of of able dependent April again strong wells IPO start execute to The These newer oil at XXXX. at DUCs under with day, net XX,XXX is will extremely volumes on growth. barrels of in operators the which will and We of production course approach key contribute second our our production for per that

which we in $XX and ground Permian XX% Moving XX% of worth game buckets particular a of as capital XX% growth DUC the to net were that first acquisitions months. the comprised acquisitions highlighting quarter, contribute of outlined during acquisition our these capital being Midland permit Again, next locations. closed deploying net record deploying PDP and the Basin. Roughly production our of million of of mineral our to these acquisitions, QX approximately it's XX roughly the to were percentage a I of comprised to to earlier highly XX Basin likely that to over record inventory locations

versus that our to share to in reiterate per point dividend the I able want share XX% per fourth we're $X.XX Finally, increase to the $X.XX quarter. Bud's

higher the million we in of we internally of quarter, generated cash to of XX%. we're result and first fund full a our payout the modify $X.X $XX by in As during capturing XX% lease acquisitions. benefit that our million dividend quarter bonus the and Using mineral approximately that were ratio the XX% quarter still retained able to prices to from in fourth the increase able XX% of

Lastly early the late can with Blake? a in the XXXX of call second for reminder half discussed August financial to you turn guidance we as second over he call. of associated conference we'll quarter and XXXX February, as update for our our I'll summarize XXXX in performance. Blake so now

Blake Williams

Thank you, Rob.

roughly quarter operators. storm. due X% It quarter once per will have sequentially Our receive X,XXX the to we barrels oil true-up the daily but fully storm the day, the production revenue of the down the in winter equivalent captured from was is believe note that second we differences we for our to production checks impact important of

to pricing XX% at mostly generated of up Realized $XX.XX per Our for for royalty in came realized due sequentially the BOE. quarter revenue million $XX.X in improvement pricing. portfolio quarter the a XX%

respect storm, the was financial per NGL barrel be in Also to realized were quarter. and could trued second be Mcf in that there sequentially. to with impact of gas Realized additional pricing realized and NGL. quarter barrel Importantly, up pricing up pricing of first also of $X.XX gas $XX.XX will we $XX.XX impressive the believe upside the the XX% with per oil per

bonus $XX.X EBITDA XXXX. of a also on Adjusted income quarter adjusted million We were bonus million $XX.X revenue QX lease XX% lease $X.X Basin. the and excluding to macro was million. the at improving for for roughly up in through out which from was is able sequentially quarter $XX capitalize the EBITDA Net of further the came record Delaware million environment

$X.X or to gathering expense Severance G&A revenue share-based and or BOE. of $X.X million were costs, X.X% and line levels. royalty ad valorem Moving transportation historical million mineral was in before expenses and were marketing $X.XX per compensation and $X.X taxes million. with

before range our continued While past second at guidance our of the come the we at to look pleased we we to thanks range. in G&A to ready initiatives, year are quarter low get tightening our cost-saving full are end to need

capital Our targeted deploy in acquisition highly team continues to originate accretive prudently and opportunities.

exited and total million As $XX.X of for cash million. of net for of leaving drawn credit quarter $XXX on our the $X.X facility with sheet, with $XX we revolving balance debt liquidity million the million, us

spring We an the May our has have be increase redetermination, borrowing on $XX $XXX to borrowing end undrawn million base. an is as $XXX expected to million of our us $XXX which at Further, million finalized base in liquidity current agent, $XXX given result new of the the bringing of million, a total our million. another indication administrative to which adds of

to at or structure, change no reiterate to net thoughts as on that on increase ratio There and will bound to access to we strategic times. ample capital in than should retained debt anticipated and comfort is to liquidity anticipate our XXXX. the our With level our continue X.X adjusted X less on upper have cash, our an capital we in debt we need equity objectives execute of markets not availability EBITDA

already dividend declared of $X.XX XX of on This record Class stock. XX. a Lastly, as May of A payable per stated, dividend we share May common is shareholders to as Rob of

any vehicle other continue superior turn to the attractive own and or We yield up. investments, unique offers believe in will that model, our to to is over premium business with back otherwise. management, Rob to Brigham highly prudent compared investors through to I wrap a coupled active when a that now opportunity things our assets energy call Minerals

Rob Roosa

tremendous Brigham appreciate investors. We We our believe quarter first to joining you XXXX offers a Blake. value Thanks, call.

our call business over value back heads our now of demonstrating our begin focused to our to call. of conference Operator, portion and plan our question-and-answer the the I'll on and portfolio solely turn you team. the down, have We executing

Operator

Suisse. question-and-answer We will now come the Instructions] go begin today question from session. will Credit Chris [Operator Our first ahead. with Baker Please

Chris Baker

guys. morning good Hey,

flow you Just half of cash thinking relative the maybe the we profile frame benefit your obviously company? up, about would wanted Hoping And the Thanks. yield comparison be absence X. operational just you helpful? the slide about Definitely to see dividend just control not and specifically the to reinvest then to solid having of able like the E&P ask how on diversification versus a be side of might on there. think risk

Rob Roosa

Yes.

us points in experience enabled terms will have then crude and initially maintain, pricing. the that to mentioned start joining it I'll Chris in it's energy many it we've much for to is levels I about of us our business companies the Blake. thanks and E&P and maintained to low consistently risk of off higher-margin the Just yield, than space. full which other involved of When continue think or of profile risky less think debt hand But overall or oil an you that our flow-through I dividend

undeveloped volumes -- move XX,XXX that gross the As will to you've up continue we right think to mentioned, also have over we it's production CapEx. without locations our into

think that regarding being so we're a that of and think because a we kind of much tough about that And shutdown think it, when degree, back COVID. economy about then year of distributed, many yield last had to second second quarter the environment I commentary stronger and that year the of in theoretical when in last I a really And the of when of the you back a larger to $X.XX floor. peel much X.X% lot our to quarter

we've which indicated the other risky our really just debt not our operating as energy So X.X% we given in the out and think just that companies much there's we'll space, elsewhere we and probably that about that the high pricing but seeing think crude levels than tremendous market. the in stabilization yield there is low But tailwinds floor currently oil less margins, upside maintain. we're theoretical

I'll comments. to hand Blake for it off so, additional And

Blake Williams

Yes.

well-capitalized underwritten obviously, our is also large operators. by these I all asset think

work to year they to and well this their as got capital they play sheets for I of that pay is think just balance down a XXXX. they as get to in debt So they've hedges return going through, that repair past especially stick continue model us

going said shareholders you to and as a guys business I assets, So, of to beneficiary And as already that our I think models to a we're to to 'XX, out their stick quite these think forward be Rob continue upside. as of will exposed drill think bit that. be

on that been The has tested deck other yield page is, well the already touched X.X% slide showing second of Rob battle I would X as thing there. that our quarter. note of On as in kind we're

So capital with return ability big I think, we're comfortable to very a our way. shareholders to in

Chris Baker

Great. And transformative ground you as of kind That's year? to opportunities follow-up, game. But this helpful. update sort of a just larger update on your later a more on can potential the just then or us definitely see something year on scale around curious, and thoughts strong the next

Rob Roosa

Yes. Chris I that appreciate question.

per XX% stronger so acquisitions net you to and day. buckets, and cost, tremendous with saw job ever doing and teams think deal permit The And in by about I portfolio just first amount They're ultimately deals. think, every what seen. associated on our net location really closing the are we $XX strong, really each about quarter acres. in importantly, PDP DUC to processing in tremendous flow the seeing foremost than acquisitions, first terms levels $X net out doing a when at a most added locations of the million we're work getting out of the of team terms there tremendous royalty those we've reiterate what in of probably adding million job in want are the that there the X% large we a deal acquisition -- inventory probably, a But them.

and they've that And been many process it's so, deals. that tremendous to up and ramp able execute really

up greatly of getting in three to still good of to probably we Houston has in terms a and one of me the people. being alongside that And so about & indicated buying that. of weeks number them, we're reduced. in front two Royalty out it Mineral couple to back, But feel there that actually our came in at that's weeks us, of And ahead sellers been really there we were fact Conference and competitors out

it's think now But late particular transactions in XX to mentioned there. we've things lot Chris, of seen and that of I than really a a we're so nine So working marketed you months, think team. our is on big probably of in we've out to there's complement I as more the seen one past the

there's probably or a those five are big So been deals in that so there. out ramp marketed

and it's the been some extremely come So which in interesting interesting. past several interesting evolve to market of weeks, are those see to

evaluate And continue so, to we'll those.

ground we've structured we such plus team incremental opportunities. the so game handle that the can And

our we'll are in looking sure so at is accretive and us so do and And look that process, well basis. deals as those. an But those key so and longer-term underwriting disciplined as rest-assured, when we on NAV to deals near-term being at making

shareholders. deals so, percentage the these disciplined saw came was distributable of because really of opportunities to discussions our as is board a XX% the our was saw result what terms the tremendous distributable And flow to the there ground opportunities our shareholders do the in we obviously a large of from reducing that process highly goal to for as ultimately And to Board is of -- game we of And so both of the comfortable in we a tremendous the about manner are such out related that team mineral the as larger making the accretive it's but that distributed things to cash there. XX% as out one distributed opportunities, sure and acquisitions. number as well

Chris Baker

Great. Appreciate it.

Operator

Please question Leo Mariani with ahead. go next KeyBanc. will Our from come P.

Leo P. Mariani

the in to I year. follow-up half little to guys. wanted close BOE bit getting MNRL per a XX,XXX the the second of commentary on Hey day around

as year? activity? get gives that what Is XX,XXX of expect of analysis to would in at on be wanted just you maybe into sense Just next And that? year confidence own your kind you to operator exit we your this

Rob Roosa

press about in to key talked and in it have that Leo, the really we what me and comfortable that I'll start Yes But gets our release we reaching discussed to the building is are off wells about Blake. what activity block hand you range that me then inventory.

have the permits So that that's going XX the next over months. XX we us are DUCs developed that be to to really for and

want extremely what quantity about talked both is conference And well from year-end. inventory and so, quality quarter you a wells, emphasize the activity strong this we're really perspective. to I the think to really XX% opening that, call activity I increase able comments in When about those from that

up that net taking in locations. importantly, And turned we're to that to X.X wells in from activity record the at develop for So, production X.X we us levels we Basin. line in of Permian want terms that have to or

particular, So roughly net near-term locations. the well production going volume, you at of look that's those total about contributors be it's when to DUCS. XX% activity the our to In

saw balance to XX% locations being over in X.X of importantly, the increase by DUC balance our So that XX% Basin. very again we net Permian

Devon, production those And to ExxonMobil, us that for turn are; going some line Continental. of the Chevron, to in are key wells PDC. operators

that we DUC by so, an drilling strengthen were us. organic occurred for activity really And the bolster basis able balance on to and that

next net spud And this gross building kind about increased with our to play so, up saw XX% the And spud out then key We locations. permits. of the are that about wells X.X you quarter well block XXX%. really net up XX% those the

there importantly permits our really And so were up XX%. Permian

over now net a so permit the XX% bucket the basis on Permian. And is in

in going then our to building that blocks will able and about spoken different confidence and comfort we're of And acquisition additive also gives we've to be DUCs all those permits, so, those because also hit when really levels. it me terms And that you program at year. be this look

into team what seeing job expect quarter in first the second reiterating deal the through still see and again would quarter the flow flow of good to good here tremendous a deal so, the And did the remainder year.

we I those about building when the are our think going flows our and year. towards blocks think cash end that and as about the model develop and key of the really, So production

So off commentary. Blake hand now for break it to additional --

Blake Williams

Yes.

concerned. is the fourth equipment translate just as started to that is thing third mentioned. to vintaging DUC the Leo all quarter started work. sort through far bucket of as the operators that, recovery think mind in inventory fresher DUC as as well seen to back is of bucket Rob buckets I We've the that a in as put keep the to quarter back that Obviously our

be year. it So, be our the always more into of the we'll weighted sort this ramping would of was that end back-half expectation that

he touch so, we guidance prepared will right And also no said in now. in August, his as but remarks, again changes

Leo P. Mariani

Okay. I some here. follow-up your just to comments of on wanted

You guys talked about there deal out up. and roughly flow getting five deals marketed

-- to sort is larger just would those deals chunkier consider? of want kind are much on a those or Just five that deals, of of mix stuff you

Rob Roosa

of No. I deals kind of those type are would that more say double, triple opportunities.

to done the singles build company. the of life I XX,XXX XX to this position really life Brigham that over So acre consider of XX ground the we've of more that's the the blood Minerals kind where game out that of to acre deal, XXXX the transactions odd

these there so triple surfaced so that or over kind of that the interestingly And out more or in kind double deals have bucket. that are marketed again of month really past they're

evaluate we'll so, those. And

But others. interesting the to is key Some very disciplined in be again, more our underwriting. there than are

would extent, any the shareholders. of both or as to announce deals -- we as those to deals next longer-term assured from if be any accretion those we to closing So couple standpoint accretive over near-term that an highly are rest well of the quarters our

Leo P. Mariani

is basically if on XXXX, million a quarter just you referring All But between game that [Audio a in that here with than I clarify that. also successfully $XX an execute have the component? to or on larger million call made you deal might really $XX you Gap] to that for just that comfortable a guys right. that was see didn't ground it possibly the equity need it, flip we're equity guys a fact comment are just the think And able to side

Blake Williams

already think for all to beginning I add about. talking typically We deals anyway to all-equity to we're was an shareholders value as at from Yes, and the able that look the equity game seller. Rob ensure ground ones basis on larger

that a could So, we to it's seller equity component of comfortable with the valuation certainly a get the that right yes. If be possibility. we're

Leo P. Mariani

Okay. Thank you.

Blake Williams

We appreciate. Thanks.

Operator

come will Energy. question next Simmons Our go from Hammond Please with Pearce ahead.

Pearce Hammond

wasn't well taking of in the but just morning. the it thoughts of that good just risk political a and curious the I value as And in thanks and more my see huge what in Is the amount, all a commentary. Yes, some for to there. question questions thanks for My pertains minerals state. DJ. helpful first especially And it information light of you play? know overall acquisition

Rob Roosa

you his undertook think comments, DJ appreciate But at as you here the is these the deals thing so deals acquisitions weighted that risk-adjusted the a in XX% in Yes. Permian. that about the them were Bud mentioned No basis. we again both The of key active Dakota first there at and When towards and on we joining. quarter are Pearce in North Oklahoma. looking look we Basin

so for about higher when return those looking typically higher you risk rates those deals. And we're those other on areas in think deals -- of

political Basin as and in the underwrite cautious so think about is minds DJ very those Obviously foremost we in we And risk we're first deals. when our deals.

really that credit PDP, at we beyond obviously going not look permits And for. so, DUCs much when and to give deals

And deal, able a excited were We kind to in very couple that right weeks of to that crew pleased being starting after think showing And obviously but this so, it see data, are first County. right location. we of showed within Wells crew the that quarter about in and to so or close the of closing up and deal. frac after up incremental waiting frac acquired kind on frac that extremely deal I

built thing in acquire experience, really that And the portfolio. basins. really knowledge, this The these other nice so diversified the in we've there opportunities it's to has team key there's still we think these the acquisition the that And expertise basins. out just other

And very really a acquisitions the we each Permian so and can from areas. efficiently these every returns acquisitions by and supplementing quarter's with activity perspective other high-grade in

Pearce Hammond

high has some operators -- the pushing you whereby helpful. dichotomy, cetera and of companies integrated Minerals give But that discipline. operators, really drill consistency well-capitalized recently capital working And more follow-up et and Thanks, the more the one oils then private bit it's again public of Rob. the having the been operators. Very major been there's Brigham attributes here my the quality a of the with

the high public more focus on are on a at private with hang capital prices at of any E&Ps secondarily, seeing the you especially any or out those And disadvantage fraying of quality you minerals, seeing guess question then companies? levels? I more way some activity from So is, these are you the as discipline are your your of in

Rob Roosa

first. Yes. the question, with probably start I'll last

wanting and achieve what's minds In oil gold discipline terms right age of now to we CapEx maintenance of that gas. and significant late up a mode, production is people such what of obviously, able are not see lot of investors' have growth the to that capital some written

are seeing so And be we public operators disciplined. very

very the be that transcripts one indicator the growth releases, terms to As today, a I big dividend pointing different no press Probably towards of maintaining all of to public as and CapEx think was the very all about a seem E&Ps capital scour special of key in announced going we kind to large discipline. disciplined had importantly low pointing forward.

we're seeing debt distributions public down either pay dividends across the to special So Board, the or operators or enhance shareholders. their to me their

there and key think the because first have because been a think our pricing very focus as maintain private don't referenced. think $XX focused we part and we're that the eventually to question, Goldman the level that some I the of comforting that at are your When that focus on maybe you at I mid-$XX-plus continue currently about on operators community several to that we able on. should to past about think all I getting that in So being of disadvantage to operators seeing investment public be

this of there binder I some they permits That year. think we've that about when issued them. includes conference call folks the with important January that the with transaction XX the referenced tried We targeted in or in of in that nice came did are so a really of March And Mewbourne number and a then rigs. transcript

consistently who's run targeted amount a Endeavor, We decent of have rigs.

We and has on currently a operators done. on doing guys both from their been operators But good the We our supplemented Pioneer always operators good DoublePoint those They've high-quality relative high -- obviously, on are nine to others. and like EURs running high what that's when that generating public has rigs. think focus portfolio have the transitioned guys. like I a done fracs job. quality And now sorry about their BTA. we to wells, high focus with level private job look at that

private so operators, I can And stay under would be operators. the both say but is key public that again there to and quality just

Pearce Hammond

you. Thank Okay.

Blake Williams

is just operators Yes, us sustainability. add that to would staying these only I that well-capitalized thing that gives under the

private kind saw some like ramping as the Pioneer So about to their think from where and you Pioneer forward assets we going these going then operators public DoublePoint selling with down more to DoublePoint up was. for of going forward, to I play as which for capital. well will -- investors out being ability our continually will us to return That's as think far of end sustainable going

Pearce Hammond

Blake. it, Thank Appreciate you.

Blake Williams

Thanks, Pearce.

Operator

Our Please Wai with question will go [Operator come Jeanine next Instructions] today ahead. Barclays. from

Jeanine Wai

morning, Good Thanks everyone. Hi. taking question. for our

Rob Roosa

doing? you are How morning. Good

Jeanine Wai

a sorry is back market to well. Our recovering the A&D or conversation. first really very the question, it's M&A -- That

it you in you'll year. But of think deal said disciplined half I seen. second importantly, expect stronger previously that also some the you And the ever you've remain flow strong in acquisitions. was than

XQ, XQ, given So payout consider you ratio see would XQ you available? given currently opportunities of lowering your that again all the that, that's in

Rob Roosa

We appreciate the Jeanine. Thanks, question.

the I of a the that upward. consistently things we've consistently is to think that's where is have messaged one dividend goal moving

the the that's so ultimate Board. goal of And

we've XX% that being talked about the XX% implementing ratio range. about that think As ultimate to we payout in long-term

as to we think going we're -- of team said company -- do. terms And doing very have in and I a a consistent what so we management been very

band. the in I XX% really would to range And XX% to some expect so point at that hover

art about I've think so it's several I the an more of mentioned on And than dividend conference I when as calls, think different probably a science.

so we'll as opportunity And moving a forward cash flow to and Board. continue evaluate as monitor deal

very a capital. the us payout to prices in that allowed first mineral XX% I is, think so our constructive of the allowed and realized obviously step acquisition of which fund to prices one down XX%, that with were supportive increase XX% to quarter obviously, was very happened about us things And ratio XX% from

discussions. about in that that terms XX% we'll our have think And so land be monitor in ultimately to consistently of I that, where Board But we'll institutional we've XX% distribution continue to talked folks ratio to investors. we

Jeanine Wai

on follow-up a there operators? to see an the is question is hear. subset you off question. is public between there private Good Pearce's and minerals My in opportunity Is maybe you're operators do dovetailing And to there you thought private between the And get private Okay. your interesting. of automatically larger seen versus difference of in is just market and -- available public, the expand what on well picked the some high-quality being get And by the if consider? a eventually high-quality up. that I players of they publics M&A was up versus commentary we've about talking smaller capitalized. pick market then what the boost

maybe to So there what I opportunity your interesting looking is just thought Thank expand that color? get at but you. be subset an to could you're wanted some

Rob Roosa

No, question. appreciate the I Yeah.

have in in techniques. our quality which will the and that M&A want make over the we're that think they high EURs ultimately activity well because we high-quality drilling and minerals, handful operators as of number So terms under of taken terms if best the on are activity, that's the that are of sure as in type they I the terms don't still of employing consistent completion rigs privates very to we running, blast there a are some in of think of get privates,

quarter And first interpretation quarter, in really the privates. so thus we are seeing I far the flow of terms probably nice under my of say second deal and would

where not development translates so smaller gets when by because to acquired lifecycle shy there. that larger away a probably our out Jeanine you development really And actively you're had that balance as which I think did really are we operator that throughout into multi-zone much are multiple becomes instances we've a then more the about company targeting a going from mention, consistent as and that much larger And critical sheet. coordinated seeing the one,

in Basin operators drill you you XX develop going to think about drilling section in that I million in XX to about million when a $X be wells half you're these to to are to XX talking wells. think $XXX the When well on section or that full So to half particular $XXX wells, efficiently want well-capitalized XX able section really section XX million section, half developed. get XX, about to a cost Midland

nice opportunity seeing privates those engaged a are in really under are we processing and So actively deals.

so forward. do to And so we'll going continue

Jeanine Wai

much it. detail. you Thank very the Great. for Appreciate

Rob Roosa

Yeah. Appreciate you joining.

Operator

for our this to turn remarks. any conference session. Ladies like back and the I would Roosa question-and-answer Rob conclude will closing gentlemen to over

Rob Roosa

on we second you joining. reporting to really our us first joining quarter forward on for we call early Yeah, to conference and again, you August. back our in quarter appreciate look Thanks

Operator

has conference today's now you The concluded. attending Thank for presentation.

disconnect. now may You

MNRL Sub (MNRL) 9 May 212021 Q1 Earnings call transcript