Thanks Bud.
about believe capital push XXXX be that impact which Bud As are and we internally the of are well value incremental our rationalization will has about inventory, intentionally given portions last to action and drive funded. and extremely our acquisition near-term strength shareholder the result will conference continues of which extremely excited in and to management towards third executed since a team the setting we mineral up remainder quarter I’m significant how call, our the activity Permian excited portfolio of mentioned, optimization our also XXXX greater emphasis.
of A X,XXX executed drill in agreement The our surface business. existing oil basin. wells. Reeves we water royalty to in is rights the to and development XXX the Southern obtain acres our First, our capitalize gas the initial in our essentially same nature and acreage royalty surface Delaware of third-party County agreement water acres out in to leases Basin on the
no We pay the of third each CapEx, no us barrel utilized. to operations a while have required is water party and on and royalty every
optionality other to to and development support we is in are, capturing on position our Importantly, line helping incremental of activity our to turn as addition to royalties DUCs wells. intended well in about with area, generate surface will as wells in our sales the the the only sales surface in therefore, in Delaware It’s X% acres, $XXX,XXX of alone, we $X our estimated future. the potential in for that from covers million third this to continued the the initial beginning which deal quarter, agreement
million. completed and the conference indicated to in we minerals we Oklahoma certain non-core assets, for prior potential our $X.X calls July divest divestiture of Next, first in
indicated, I wanted with we sell asset and trough. into rationalization our the be As previously not patient to
With is that great XX equivalent other to were almost release the produced category included in non-core our ownership press assets at in rig XX% monetize XXX% we last from the believe per count day barrels and oil oil of now it approximately a in mineral time cut. up night’s table a lows, the
redeploy will Permian. asset well-heavy into activity proceeds We these in acquisitions accretive the
continue as are will to potential other report engage and opportunities in We divestment back they completed. will
sold in of we asset. our the mineral to first the us. reverts development. a for not back also Merge in private development sections implementing accelerated five return our portion accelerate the occur, structure STACK to Finally, If of ownership a minerals does We are development operator to accelerated mineral and in
accelerated leasing with acreage. also total, the In we’re blueprint together provide In lease desirable and funded. the looking minerals team million a development proceeds and in the by cash with in retained approximately deployed sale which be flow of acquisition Permian for partial portions has tremendous during highly $X we going to internally open of in creative well-heavy to million and This $X.X our acquire generate proceeds able to in exposure, we’re royalty, across to sale leasing Merge divestment, between able drilling Associated generate portfolio. by effort spacing partial accretive leased efforts. will the our the to for to activity effort the reduced and and QX, again total, currently units. effort QX team. Overall, our apply creation, partial capital mineral our to be summary, a our significant that sort resulted and STACK we’re will we’re our water value divestment between Proceeds
largely sequentially X,XXX second by quarter, per quarter from production our oil to roughly the X% of Permian. volumes were up results, first barrels production our equivalent Turning driven in operating increased day, our
with quarter. lower On line converted end production quarter and contributing at inventory a strong as quarter. in converted normal, on gross volumes net of the well net and of wells end wells during converted interest QX approximately of DUCs well to were the slightly of QX our basis, inventory primarily are below the during second basis turned to DUCs a the XX% conversions DUC XX% with in QX Our the production gross during at
that wells of were inventory wells our of to X.X the contributory end years, will the quarter net permits. X second production X.X over net X.X activity comprised the to net locations ahead net at next strong, Looking volumes our and be DUCs in
anticipate over in months months. lines the indicated next XX As over XX the XX next permits I’ve we contribute DUCs to to to production past, the and
to compares our X.X DUCs were spud QX. end count XX% our wells driven net second wells in XX% up at minerals net in roughly by net rig net activity during our were on locations to the in increase spuds This the spud during minerals by on Our a approximately increasing of liquids-rich quarter again Gross to QX, assets. the XXX X% to well up and X grew of pace XX% drilling the basins. on inventory
largely the you teams doing both strong saw [indiscernible] we can drilling Quad activity activity Drilling how drilling DUC in Tier [indiscernible], undeveloped our are terms DUC Basin, our In carried including quarter activity, strong Resources strong in of spud Reviewing XX% great our units. additional and down operators. saw with Basin. and and in Pioneer into in Midland Pioneer quarter enhance locations under balance, than the inventory. QX third from from Alchemist Rogers those a see of Patriot. Basin, we and DUCs private will X our well [indiscernible], of again, Delaware active Midland Permian identifying the we the acquisition job So in estimate which counties, by the more are The further into inventory Martin operators, Natural third ending over Raggett activities positioned
as estimate and of but Our encouraging are to X.X highest the our wells Chevron, have to our already going our represent in sizable Further, converted Continental third are are been since in net permits stabilization Permian have in with overall DUCs of We and than Pioneer, production DUCs and XXXX. on waiting our Diamondback XX% the their XX% roughly of our XX% net Permian see into inventory of XXX activity. locations Permian at roughly the permitting greater in locations, production We and, do been in to to midyear approximately either our higher Permian permit respect can’t verge X.X now ExxonMobil, but or PDC, majority in and XX% see at contributory the data net turned quarter, the entered to With when wells frac are track production anticipate did the thus be net and we is fracked net deals via well net volumes the acquisitions DUCs get DUCs, organic at to basins we ultimate since in of fleets permits, in net production, net Resources. permits, line that a line in in particular, of of we timing as balances a turn production. by ongoing these our have far locations the we DUCs public. that in In one to been to operators the to turned the being QX further, sequential those of of net awaiting net addition permits anticipated one net that are net to level line control fleets. it decline
Moving deploying highlighting PDP, disciplined the transitory. to mineral approximately been well highly prices the capital see acquisitions key as With closed always game prices acquisitions increased apply acquisitions, locations. Permian consistent our roughly we’ve creep rising Basin. that which come crude to times these quarter, us. acquisitions, we in our It’s that activity their second wells comprised higher, $XX, XX% these as of million underwriting to $XX to ground activity permitted to during to did worth seller above XX% reservation criteria past, of markets is were across expectations net incremental DUC the back and have new during remain buyers, and has referred as historically like from The in we to it
quarter. of which $XX million are with XXXX midpoint the increased per moving capital the deployed midpoint quarter to and over reservation the from to competition, reflects higher mineral anticipated Associated for mineral capital per prices be QX of $XX million, seller closed QX, order of pending. $XX of The due at QX acquisition the subject diligence have and acquisition is million $XX $XX per $XX quarters entirety deals or the we million interest. acquisitions title quarter. far of Thus of half approximately in acquisitions confirm are, on course, plus in first pending of million XXXX X remaining part our to million Therefore, seller’s we to
reflect components Looking day, reflects full updating I barrels per for for other that to guidance of X,XXX guidance just of the pace mentioned. equivalent year our of which XXXX production midpoint at our the acquisitions XXXX, the updated slower oil we of largely are
providing last period also we is including be anticipate day. through a average XXXX volumes the majority guidance to which this next for QX the We for indicated X,XXX comments barrels for period equivalent or initial oil next that of per production. X we in in press from production we DUCs the to completed the release as time of anticipate XX months night’s my XXXX, period to and QX XX-month contribute net are our over and
the is announce a quarter to which $X.XX over the pleased quarter. increase share, dividend am I of Finally, X% first second per
dividend course, firm cycles supported now foreseeable future, help will dividend shed comments. with we believe Overall, lease model and subject, This sensitized the our OPEC+. per the summarize resiliency associated industry of As discretionary financial have sustainability for line base a our Board cash to distribution can of some during of and trying the out on that pay quarter over and Bud second to Blake? $X.XX base mentioned, dividend our better quarter base-plus-variable previous base-plus-variable was represents he we’re believe tested and firmly call base battle-tested you saw in rolling quarterly times shareholder firmly year should in to last commitment a a and the or turn the ability represents I level quarter cash stream. with ex so $X.XX our comfortable COVID Further, structure light throughout set most bonus illustrate $X.XX we performance. assets’ and it $X.XX and per dividend more in of support. rigorously the dividend Blake, our XX% a flow extremely per flow we for to of business dividend a believe and The the at year be our approval. adding dividend are have our with can
