MNRL - Earnings call transcript Q4 2021

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Operator

Good morning, and thank you for attending today's Brigham Minerals Fourth Quarter 2021 Earnings Conference Call. My name is Austin, and I'll be the moderator for today. [Operator Instructions] I would now like to pass the conference over to our host, Jacob Sexton with Brigham Minerals. Jacob, go ahead.

Jacob Sexton

Thank you, operator, and good morning, everyone. Minerals and Brigham Conference XXXX the Call. to Fourth Year-end Quarter Earnings Welcome

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

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

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

We titled website, the Presentation www.brighamminerals.com. Investor new refer in have our downloading conference available call. recommend we a during presentation the investor Fourth Quarter it We on the presentation for download event XXXX to

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

Bud Brigham

to us Thank and for XXXX conference call. on and quarter you, year-end thanks our fourth earnings Jacob, everyone joining

made First to of entire for team the Minerals summarize during thank that will tremendous and effort accomplishments they want Brigham their XXXX. some the I I foremost, briefly possible.

results, our the to we to XXXX per dividend quarter have full related announced $X.XX year XXXX our distributed over First, fourth will with operating share stockholders last night.

our dividend. dividend introduced in we variable which the that course, base of of is amount XXXX quarter our Of and both inclusive second

share dividend share quarter we per announced XX% or we yesterday, increasing per first the XXXX addition, be per year. over by In our quarter to $X.XX will base $X.XX

approval. subject are dividends to always, As board further our

deployed million largest today and DJ in we totaling approximately approximately million $XXX Second, capital our X.X in deal executed the Basin. $ upon during acquisition XXXX,

$X with efforts most for also and we of have related million, of Merge divestiture to transactions closed to portfolio date assets. this sale recent closing totaling year $XX million January the optimization X in our our Third, initiated

a grown we as the company approximately mineral funded of flow. in to a last, retained during strong and and wells all an XX% of back ground continue activity our efforts. extremely complement boxes. team result, Our our XX.X up totality, have we fourth them And our look cash each When this in enormous by very And to and net locations, for divestments game XXXX. proud checked you of Fourth a their XXXX year number represents thank which inventory us quarter want record of internally acquisitions. sets for I'm to our

The respect comments I I've that from our us the returns the major Importantly, discipline improvement capital year-end November these energy efforts any ways are I E&P OPEC of believe with optimally continued that I indicate generating are to messaging flat XXX with of the is positioned. are short during on similar the happened. questions has my Permian natural regarding call, volumes, gas. for the we've U.S. that they intervention cycle we super in put that current from to their across market in energy day. quotas, macro earnings come XX-year have volumes sometimes have has and That their Independents conference the million February experienced a look spend. we to indicated that those seen and Further, to Stifel will Super I stages lack indicated in the is independent a fulfill clearly to spoke unable the of my season. IEA projects, Much in current more basis, XXXXs. from cycle CapEx, of NGLs an is introductory guidance. government demand in to to as on demand to tailwinds the commodity XXX,XXX have call to and still pricing career. capable RBC long shoulders conference all indicated the to structure, over lower. to extended supported hearing the different finally our on changed significant XXXX early XXX,XXX but barrels to majors that increase On corporate-wide excess and cycle some precipice the combined point lead increasing substantial of Further constrained particularly be has by entire of grips by the both the capital I not independents super a want are the majors which monetary of per international increasing, I last time, on or barrels their super production and high lack well oil, shale. major cycle, and of the the in follow as and XXXX unprecedented to ability thereof, year, that of activity

summer alarming. the XX% the Since across XXXX, to However, inventories basins X,XXX to X,XXX of here Permian decreased and decreased U.S., from are have the in than DUCs levels all less DUC peak DUC in XX% of X,XXX, have from DUCs the inventory X,XXX.

have and to that If prices of inventory together per DUC tell factors on shales The average of than drawdown the Permian in month DUCs very since the the that X and pace December compounded higher. That year the bare. future, XXXX other $XXX into books. forecast you same less are headed us project Permian are we of continue clearly

but to expected is over value Basin is all deliver longer well much and activity. mentioned efforts. over particularly net fortunately, shale right previously and currently will shale, right capture significant at U.S. U.S. place the want said, time require the can I of significant in that Permian the record also turn inventory. it the a acceleration the the with time to with Brigham call term, company the to I positioned As near Very XX.X And activity I both our in their term, for over Again, employees in will Rob. that, thank

Rob Roosa

effort want set uniquely which has their to Thanks, us employees to XXXX, deliver during I XXXX. up in our also shareholders Bud. thank for outstanding for our

to levels as growth. of which Our all acquisitions, are portfolio hitting full is flow activity as team production all anticipated generate cash on year optimizations significant and cylinders, asset well

the DJ deployed in capital, during approximately front, fourth largest date in our Basin. the we $XXX transaction million to closing including On acquisition quarter, the on

we've flow in asset discussed being the to past, As of net in a needs well deal multiple large boxes cash check as value. to terms near-term to accretive as

in which Basin to to transaction the added the X,XXX barrels our DJ activity acres alone months. XXXX transaction, to both Wattenberg is be over and inventory net deal XX to of Our net production locations XX to X,XXX Greater that X,XXX from additive approximately encompasses as royalty day tune X.X delivers of equivalent area, oil anticipated to benefit well largely approximately us will per next this the this

date has Midland Our of over to Basin XX transaction the million our X,XXX February approximately momentum acquisition and first into quarter carried on acres. encompassing net largest XXXX $XX announcement of the totaling with royalty

anticipated XXX Midland Endeavor. to equivalent production add oil our approximately Our of XXX per and locations developed XXXX to is barrels Basin by volumes day to largely incremental Pioneer transaction be with

we're to and therefore, minimize these our both Importantly, and as Midland our impact Basin transactions our utilize DJ the of acquisitions, consideration able sheet. to in balance equity

Recently, Basin with Basin game $XX $XX budget and an transactions totaling acquisition We position, entered On deploying our packages and long-term levels opportunistically Permian Midland into second team since we totaling in separate our year deal over Oklahoma we closed the million team an million. estimated ground ground XXX of our production $X to anticipate transaction. portfolio divested of million, for generate game to This in entirely are find we capital barrels quarter now the per mineral incremental $XX per for will currently Merge of full seeing closed which substantial and generated example $XX million continues almost last of divestiture the have game optimization, of buyers transactions, flow acreage X inclusive capital increased of XXXX capital $XX transaction of value outstanding our efforts the oil capital divest an X our a quarter redeploying to to and allocation on for ground the initiating million, day have All by clearly month. divestiture million, our is proceeds approximately XXXX. of shareholders. our told, equivalent

actively quarter. per ahead, Looking with buyers divestitures are potential and transaction my on engage hit to previously divestiture to attempting actively continue we X of goal stated

asset our activity. to Turning

of of Our up at locations quarter well in drilled level down, well of third net inventory. DUCs net Chevron, by our represents up spuds of XX% X.X activity also our or for locations that XX% Organic combination XXX gross fourth Basin, in locations our spud X.X DUCs record which our represents the net XX.X inventory net which PDC, record ExxonMobil on in We wells as a activity our those locations the to X inventory, our with convert the inventory drilling through level. end Drilling to grew DUC Diamondback the majority during at from in Permian net and the minerals DUC a Pioneer, acquisition with over anticipate of but will inventory. DJ quarter. quarter activity, year-end as the the or were net locations Permian permits uncompleted

our during our acquired Our as permit both X.X inventory a operators XX% increased the well result over quarter as fourth through net locations by organic by to acquisition. permitting as of permits DJ

flow be will over our production next anticipate XX permits we the months and reminder, a contributory over the to As next volumes cash DUC and to XX months. XX that

XXXX. are net inventory, a we activity our for well up set Given very compelling

XX,XXX XX%. midpoint First, of oil of we a per day than or guiding production day equivalent year-over-year XXXX oil represents XX,XXX of of which year greater full XX% are a with per XX,XXX equivalent to barrels of growth cut, a range oil to barrels

PDP board increase $X.XX dividend which our maturation $X.XX continued mineral flow annual the share to successful supported base approval, represents a dividend. subject by base that share as our of well a our share the as integration our reserves also have to year over stable be portfolio per per cash XXXX base can we XX% and acquisition that our We to underpins very base the measured per Basin of The or confidence DJ dividend. further our anticipate to per increasing as in during increase comfortably quarter,

to we Blake, of our base the component call Blake? dividend, subject and conditions so performance. on summarize he turn approval, top financial for layer now over I'll variable Board our you course, And XXXX. can during our Of also market dividend to

Blake Williams

Rob. you, Thank

day, Our oil X% equivalent increased cut our for X,XXX sequentially was XX%. to of daily the slightly barrels up production oil and quarter per

per $XX.XX XX% BOE. $XX.XX oil Mcf of gas portfolio was Individually, million of came quarter, realized realized at $XX in quarter a barrel per Our realized XX% Realized up record pricing. the revenue due to in for improvement barrel per Realized per generated pricing $X.XX NGLs $XX.XX. royalty sequentially of pricing NGL. was for was and the

prices NGL anticipated, the at substantially As during XXXX WTI of half and of in realizations. came XX% back have increased our

the quarter. was collected up $XXX,XXX We and during was was for under gathering, the which Record lease $XX $X.XX also $X.X million. per lease in sequentially. costs, Net fourth quarter million, adjusted and EBITDA $XX marketing excluding just million, transportation or million for was the roughly On expenses $XX.X BOE. EBITDA, bonus XX% bonus adjusted quarter income were

as and As up late given G&A current tick revenue valorem levels. many taxes Severance and operators and have to the continue trend and expect million was of royalty commented, expense $X.X $X.X line environment. historical we were million. or and that Cash X% with have as GTM seen in mineral of

our below up relentless revised year to full ended cost Our expense the guidance. control. of which on testament low our was G&A focus end a cash

and per XXXX, withstand relative to Looking to midpoint in that scalable model by to more our advantaged of cost our levels. inflation This highly capture highly a is margin reduction and XX% is us most, XXXX the as of our XXXX G&A guidance therefore, is business better also commodity and rise. prices ahead our than royalty allows platform evidenced BOE

our balance to Moving sheet.

and transaction. remained of highly leverage profile DJ Our after liquidity our the close favorable

opportunities drawn to $XX which on Our exited million further balance our of and call with coupled divestiture, the million, positioned adjusted cash, disciplined facility prioritizing to highly cash We enhance allocation debt $XX results the as X.Xx Oklahoma quarter opportunities acquisition net now on of in game I are our continued quarter last all we things acquisition net wrap offense up. debt $XX to over continue ahead play revolving corporate the ground our the capital to of for well Rob protecting and while position. annualized EBITDA. credit accretive of should us, our retained Further, financial commitment will turn dividend. sheet leverage million with recent to we to with back pursue

Rob Roosa

fourth our and joining year-end quarter appreciate we XXXX Again, you conference call.

call is in activity As call. begin momentum, I to efforts given inventory. turn believe the optimization positioned conference the acquisition I'll of over excel our indicated, uniquely now Brigham Operator, portion question-and-answer well and I've our Minerals to to XXXX, you back

Operator

Derrick [Operator Instructions] Our Stifel. first question Whitfield is from of

Derrick Whitfield

your on Absolutely. updates. Congrats year-end

production associated I with the suspect XXXX you amount Midland broadly with production the is year for speak your of the could game you're Regarding guidance, majority success? the to assuming associated acquisition. ground the

Rob Roosa

of overall barrels roughly fourth XXXX X,XXX the Midland it, at that, with Just transaction, XXXX transaction day, Basin production, I the production speaking day the a which basically then to we a day. X,XXX the starting barrels adding volumes see DJ adding buildup barrels on then we're further layering midpoint, to just XXX quarter at anticipate about a as

and day, day then then relative at about run guidance. our of that's a barrel to a barrels a So you're XX,XXX rate XX,XXX

you then we're when the I And call, the and as decline the DUCs viewpoint mentioned XXXX. so to production that, in to of look from barrels. up extremely a in that's I we mentioned, Bud going contribute obviously, think the and have incremental well at But set activity

had the average, a start hand the So the during year look you DUCs when conversion were I rate end on inventory and in X.X% at on the XX% of looking at at that when year. a net we at year that DUCs

in at DUCs year. looking around of DUC XXXX, the converted conversions and being during X.X, that X.X that's XXXX. And leads So to you XXXX kind net

converted that's And quarter. a so basis, DUCs look net you on X.X at per when that quarterly about

that, at level during had year. the last look entirety converted DUCs Xx So of roughly of when we that's that you the

X,XXX again, think growth to production a That's going up. we barrels very really drive So we're to day. set incremental favorably drive that and X,XXX that

think production then being ground the ground -- then the acquisitions. I barrels in game, and the of then think factor XXX the the generating. game of ground that game look that we've you When that associated XXX about year, when So $XX barrels at the from talked to about you then with quarter that, pricing incremental million oil deploying about throughout midpoint, you the about buildup yields deployed crude XXX probably at anticipate we fourth of there's

there's activity asset. our to there's roll-up think acquisition lot So I'd potentially a respect extent our upside point to XXXX fact that I very volumes of the little the with XXXX outperforms. team And the permitting in also there of to

promise, we And so I the think over conservative deliver key. want there's upside to over to is always be that. under -- Obviously,

the so And about that's of XXXX buildup kind how thought of we've volumes. the roll up or production

Derrick Whitfield

would would concerns complicates this earlier. bait but mandate could macro normally your stare and personnel and your great Bud, in DUC XX it, many of we as certainly supply mentioned really return That's across I that in today, our capital, call, kind would seeing what add I'll question take Rob. capital based ask screens your independent add on a the further Bud we of levels. In commentary importance early at your lower the return certainly on of view, of hear in of the current what detail, I I macro how given current aside the U.S. operating basins? the focus rigs setting realistically chain conditions sense on than the we're tightness the response. also

Bud Brigham

you. Thank Yes.

with foremost, unfortunately, our Ukraine. the just the in of very really sense industry, basis leverage cultural is negatively in a very restricted security, a and high the support of on to in other thoughts go-forward but handed directly and class most, energy the and to capital first on biases, shale. political are people say, with me get I respects now and our impacts consequences which, of that of Russia prayers responsibility first and we're detrimental flows overnight, U.S. unfortunate the I in think regressive process, with the also to over of living want working Let China. to our falls on terms lot the events, national -- -- It's a lot and do have

a is to any for step here because and flows mean it's and a of than industry more our environmentally, safely us. in and security national macro -- on So investors. responsibility this a have of -- sake on opportunity generate produce a of feel real a people security our the these industry for countries great up it in we setup of particularly, to such world. lot hydrocarbons around do the concern basis. -- real it's a I our returns constructive our substantial lost other and we for that cleanly But also substantial we the cash And worldwide also, company, go-forward terms do we for and

So chain ability labor to industries time. and ramp am be or concerned to about, disruptions I responsibility. industry's up our up step overall a I'm the about It's shortages. significantly. very supply we months real the about a year. even particularly going some feel going and not X given concerned our to It's take

going I take to think years. several it's

whether up. answer I can materially not real work. out and step on the haven't to do labor question sand it's our to you can't And the industry Currently, we're the supply up. I pipe, So data bottoms being supply having steel. looked materials, challenges -- I at take and know, your there's But is for rigs sufficient. that put as be is the model

confident that's comfort contingent, the our our don't I think is at I time, So I you to provide capital industry a over there. mentioned And industry. that that I will I'll imperative. know also lot on very absolutely but start am that of respond, as flowing

Derrick Whitfield

of a be relative minerals to guys your Bud, a I pressures could company time And of you with provide. the operators. appreciate some response, color you see and lack E&P the that to bad inflationary Great will not certainly,

Bud Brigham

Rob while That's out a minerals and develop do indication right is DUC asset the about the that the net country's this together significant get It by we over I cash to exactly and direct to operators mineral what said. us, Permian want flow. of inventory into inventory XX%. significantly DUC declined of so amplify has company the No, and quality on that a the to and the to that grew have put that. of our basis convert you're production prioritized

Rob Roosa

related to on point And ours operators. also question mineral E&Ps besides the lot, to in there's such companies inflation, there's benefit of point lack your exposure tremendous a owning we Derrick, as I further amongst inflation, get versus to mineral think companies obviously, a and asked diversification where your to as

So diversifying operator a totality. way of any in one risk from

And so our of the position Chevron, Pioneer. our when position, are you look be at Oxy, that's to I be operators XX% have going going that by over developed to Conoco, developing

top-tier So to the our future, be some operators the very that. for highly drilling of us in into diversified are position going

when And amongst you so exposure potential to risk such think, operators. I lot it have a shareholders of strong really, takes off diversification

Operator

Our Credit next Baker of Suisse. question from is Chris

Chris Baker

about you just I was talk benefits the hoping business. of could guys scale a for the bit

Now a a more perhaps acquisition, clearly liquidity DJ accretive, modestly the you deal very helps larger-scale room business? accretive that's increase the of delivered but do see that you've for scale and

Rob Roosa

Chris, the thanks We relative favorable larger of for just December. layering transaction by company transaction highly opportunity an float in and there's on that think for definitely that closed to the scale liquidity we DJ question. that the improving incrementally

able -- to the G&A by night. last of XX% we lower being in such incorporation you able deals and about quickly. at game through points to deals, by to ground of built and and to our real is deal able large think and game of XXXX, us the DJ via to to through in potential the team larger of importantly put provided the more very been we've incremental of in and that a as ground that have past, never be number out XXXX sellers G&A I that we're you have well opportunities relative this able being such We the company estimation We it of scale the layering efficient to update evaluation both improvement deals us deal cost large that evaluations terms both per acquisitions. that efficient. very When some -- in barrel so the guys coming being to prosecute talked And as look opportunities very my

of accomplish So what I'm been very to there. team has able the proud

And primary think goal still work the of in along for so back of consolidate is 'XX actively April that I going the and and very of was public industry. continuing to opportunities we're one reasons to are all scale the

effort to every undertake thesis to us deals. larger see capture and you'll that continue So try

Chris Baker

is That's a just Perhaps frame strategy performance a shows a picture of disciplined up program? that question. great. acquisition like of just in that the best talk bigger to about or measure of how you And performance of the similar the cumulative the you acquisition in bit yardstick financial terms up? terms Can how kind or then you metric ROCE think

Rob Roosa

off But because I'll through had apparent we've that start most use. internal flows shareholders. financial Blake Chris, we'll obviously, very to appropriate then off dialogue Yes, metrics it volumes, to high readily to and hand lot the just regarding at level, production of to a a

layering so being about of we're the That's to an production quality That relative greater in the think up the added we're than XX% and volumes clear happens I drive And when on, portfolio, volumes inventory. of in assets that quality that happen? are permits, improvement initially add the add able DUCs, able to really does to obvious indicator XXXX. acquisitions the that the quality production through as to that provide XXXX how what

DJ you well when look X.X the So and X.X those via locations, acquisitions the during increase other of net in roughly about quarter. acquisition XX% activity at roughly our were inventory,

to that's so And production going XXXX drive volumes. really help

you're is indicator transactions. volumes layer larger my on it when from as seeing that's relates that high-level production clear do overview, we to outperformance So the

Blake Williams

Yes.

reserves and grade a not looking per I obviously that's metric XX months, share. just at next we're that's we that think the further to yield, at on. look PDP multiyear ourselves that, We

base we've dividend. that's So -- that kind introduced with the of

we investor been also share, So we've can has per The reserves per decline continually that posted, rate on increasing X presentation been that see you our share. moderating. PDP reserves Page of

also So in quarter at point an in dividend that's XXXX. of allowed to us starting increase We're looking as inventory base well. our to longer-dated the first

And so over payout our ratio high-quality sustain ability to inventory will that time. dividend add the that and

Operator

question of Schultz next Our TJ RBC. is from

TJ Schultz

implied Just prices, there at interest these Slide in hedges your oil looking different at is yields adding any levels? the on in X deck oil at

Blake Williams

Yes.

I been think on hedging, And this With encouraged as on obviously, by offer obviously, obviously exposure we've unhedged. macro we're talking that do we investors direct about currently said, the call, backdrop. commodity. to the

said part really we've that past, believe in hedging as prudent a policy, and So quarters sheet keeping as in of since we our balance done have IPO.

downside So and for on we certainly, potentially debt we've look a But have pretty we those to want take we'll to together, debt term we if out we now, to holders. low about layer some got if right think equity couple as it ensure hedges X protection balance.

balance But continue our obviously and quarter. to right is of it's that policy now, sheet. conversation topic we'll a the remain each to Board, unhedged with conservative So look it at with

Rob Roosa

Yes.

of on hedge help of out earlier at Blake's larger-scale see if in larger layering think we of which likely point term some opportunity, apparent you'd might us to question a comments, regarding the at integrate scale opportunities is some look I in lock those were top obviously to we accretion. volumes hedging that a near the obvious

you that's I take to on could going additional look do one we the at potentially at extent forward. so. obvious which to So debt think point And hedging

TJ Schultz

success expectations in recently, then from months, standpoint early just of or harder forward, to just acquisition make but just be. $XXX deals had X you've at level, that what Okay. going past Makes a been here versus we it find outlook, you easier the clearly, the the if for seller maybe on sense. think about does high oil, where seeing you've may And

Rob Roosa

bifurcated larger as we've as different in the talked ground about markets, acquisition as past, deals we the the market game well TJ, X into deals.

backed other down deal the of work these front, that on having by create divest, I prices our so terms entities think groups their -- working favor looking those investors. higher are then to funds in larger liquidity in probably oil and crude And flow to potentially

So I perspective, helps deal from that that think about when oil higher flow. prices think we

kind once game the at broached think definitely in that year, last that, -- it to it more made I we of capitalize ground on $XX transactions, ground essence, marker acquisitions. difficult game

so And interestingly, number third game ground coming organically acquisitions are of in, from higher as of we parties. in as coming seeing a late, well

capitalize been so because a it me when numbers we crude earlier and through good It's can And prices. terms been those. run-up we feel of the game harder about of always being of those, in system in oil the on evaluate that cycle makes my to in deals think to deals acquisitions lot incrementally a point able terms has acquire given

ground that Echo under of So some because able highly able up those acquisitions from really you you through deals my ExxonMobil And Pioneer acquire can quarter, the of like perspective, acquisitions look lot I saw attractive a there's being respect at we're deals still it's then that so that still imperative fourth in the with acquisitions the well. add that we to staffed and we're game think such process system we're we game can to have XX% with on with to under to when Endeavor and inventory deal were Pioneer. ground as capitalize able success the that

And so the are operators into to under future. very activity there's to drive that strong acquire plentiful opportunity wells going

to about being opportunities. try those those as very to to and well deals acquire gain capture as we're the continue excited to larger able And system process the both front on ground so through

Operator

Wai is Barclays. of question from Our next Jeanine

Jeanine Wai

just Our is question maybe the base first on payout. touching

paid You XX% 'XX. QX in out

the today previous range guided the comment on cash XX% order are strip maybe to in acquisition You is larger for XX% to XX% dry biased you and powder? towards now for given And your deal where the end XX% of 'XX. opportunities, to accumulate lower

Blake Williams

plenty of oil XX% still the discretionary the to EBITDA to, dollar $X.XX line. Certainly, Yes. margin, all flexibility lease prices bonus. of said, with to of objectives. cash We, have to we you the We'll you with plan XX% bottom straight balance goes of out obviously out, prioritize continue the where management. every those flow manage without these as Certainly, levels as at and to our point pay dividend sheet

So funding our well. acquisition opportunities obviously, and balance increasing dividend debt then and as

answering, sort have flexibility manage So ample those. to of yes, of all we indirectly

Jeanine Wai

Okay. Yes.

Sounds you dividend is, quarter. good. increase given On our you numbers, could even pricing per the still went XX%, if every where share to

what So that's I more matters. think

then further the optimization? jumping provide you the color on And Okay. maybe portfolio. some for Can potential to portfolio

Rob Roosa

obvious Jeanine, we that acquisitions implemented do thanks that question. the for half to seen optimizations in game retained portfolio year, last in for asking the that's ground optimizations. mentioned the once cash the benefit you've second you of think addition I between of the portfolio that

mentioned, able the in fully the we're to Bud As fund budget. fourth game acquisition quarter, ground here

So that's huge a benefit I shareholders. to think

X estimated totaling about we production And we've in proceeds. with have so we've production related our to successful, deals a thus closed $XX only of And those reduced XXXX divestiture XXX million and in been volumes deals. those very day that far, barrels

in then Pioneer. in So game, buying those Basin Permian in opportunities largely quarter, opportunities under I in ExxonMobil and mentioned that divesting largely to shifting and the here the fourth Midland undeveloped the the ground particular,

one opening quarter. a execute comments, what so of opportunities mentioned on And think my I to team really deals divestitures. ready in the challenging there's to I undertake And continue to those

SCOOP/STACK that to North at DJ the net area continue the in plays. position. or Dakota. There's capital divest could royalty in XX,XXX or acres look the the to obviously Permian apparent the and You we overall about That's acre potentially which redeploy most

with lot deals or think larger so And the future. to on into I potentially smaller opportunities continue of there's a

opportunities. is team working on actively the all So those

Operator

is question One next Kyle of from Our Securities. May Capital

Kyle May

STACK? talk the up about Maybe SCOOP the on guess, Rob, comments, maybe for divestitures can and in last to start, opportunity your larger you I following the,

Rob Roosa

opportunity we the take larger the position. valuation think that whether team Blake a Obviously, a any always there to a there to evaluation have It's the that buyer intrinsic out sense that I and to down will our on is that's willingness a larger extent undertake understand something relative and offer makes transaction evaluate. we'd indicating there's finance in-house.

highly methodology Obviously, on of divestiture we're critical. our the in so And that's side. also side. acquisition underwriting We're where same disciplined disciplined the

perspective. sense obviously make has And so from we finance enter deal any into, to a that

principle underlying operate. we the which that's so in And

could to see we've or that of such sense And that thus us X,XXX could there's undertake maybe so as roll larger makes you financially, kind XXX well. compelling that done if smaller see a acres us far out you deals as opportunity

we're fully ahead all and cash and so at ground XXXX look potentially flow getting are retained opportunities. those into divestiture we managing looking much closer undertaking XXXX to that between budget the as And and game actively the evaluations funding

Kyle May

to earlier range? and just this of the expenses your comments. transportation your Okay. and to of the guidance sense. And gathering That And BOE more or you're it kind is year-over-year. what also of changes marketing the end on about up But you there in wondering potentially talk seems stepping factors if could you Blake, some other lead could one based alluded per guidance, makes

Blake Williams

Yes.

the seen of seen think lot side. just a I And the Oklahoma. are and really Williston the think sure increases coming wanted like with we areas and slightly, QX back obviously certain We've increase of I cushion we've inflationary the -- current enough environment, compression guidance. that to we It's GTM in as XXXX. marketing had make that in is gas starting on from in higher

we're off really we're GTM So line there out in helps of as just the perspective. the think Oklahoma that divestiture I our day, not is that much. a $XX selling the $XXX oil, margin with opportunities properties lower affecting all oil, GTM At bottom though, from especially sort as end of looking at

point, As headed before, at I EBITDA was commenting our XX%. margins this towards

the expenses to aren't potential would our -- any just be of certainly, that it most to move capture needle. up inflation -- set there. could you think cost it's going I we've So But

Operator

[Operator Steven KeyBanc. next is from Instructions] question of Dechert Our

Steven Dechert

here guys color I you of the cadence to give some on XXXX? if from just me. question could more see want production one in Just

Rob Roosa

A the lot of upon it brought obviously depends which DUCs online. at rate are

we're And But DUCs the calls. Blake's we process so go as evaluate more that those what obviously, revenue one it front-half bringing have weighted as for how about into that in could we'll But seeing. about think to I and us be monitor and of to recognition talked XXXX. just the keys are is online we operators the past as think on

checks statement reporting of And to state so having of either full that production and via respect the online conservative being operator clear the the those websites or not we from until production. with recording have we're Wells evidence turned and to income months

evaluates month our and look each every we that engineering our something team reservoir as that's at obviously, accruals. So

so which And which those operators online depends bring at upon just it a cadence of lot the -- DUCs production.

so And and fracked less DUCs are sometimes are sitting a for bit.

more cadence which front-half could it And production the but so operator stands weighted as today. largely XXXX, looks it at potentially it like will the be -- cadence flow hits drive the

Operator

call. That the our portion Q&A concludes of

conference like So for to closing management now team remarks. I the would back any pass to

Rob Roosa

our on joining. of Thanks appreciate for first call again and conference I updating you fourth joining quarter to look XXXX early here everybody XXXX May. in forward Again, the quarter

Operator

Call. Quarter That Conference Thank concludes participation. for XXXX Earnings your you the Minerals Fourth Brigham

may now disconnect. You

MNRL Sub (MNRL) 26 Feb 222021 Q4 Earnings call transcript