Vitesse Energy (VTS) 7 May 242024 Q1 Earnings call transcript

Company Profile

Participants

Ben Messier	executive
Robert Gerrity	executive
Brian Cree	executive
James Henderson	executive
John White	analyst
Michael Schwartz	analyst
Stephen Richardson	analyst
Jeffrey Grampp	analyst
Jeffrey Robertson	analyst
Donovan Schafer	analyst
Noel Parks	analyst

Call transcript

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Operator

Greetings. Welcome to the Vitesse Energy First Quarter 2024 Earnings Call. [Operator Instructions] Please note, this conference is being recorded.I will now turn the conference over to Ben Messier, Director, Investor Relations and Business Development. Thank you.

You may begin.

Ben Messier

you thank and morning, for joining. Good will for the we yesterday market be which discussing results operating after and financial close. first released our we Today quarter XXXX, of

our the access You presentation release of website. section in can our Investor earnings Relations and

to cover XX-Q Form today's Bob, and announced remarks begin, here the of is CFO, remarks Chairman the upcoming first answers financial including remarks, production the will Bob review prepared Jimmy and as our contemplated control expectations Act. our the language. and that cause required could statements our statements, be to except Gerrity; additional our Henderson.Our and adjusted advised non-GAAP forward-looking will the will the may update harbor our executive forward-looking that questions, be forward-looking of obligation EBITDA subject of Bob our this our Jimmy our an filings. the update, measures the our conference to file Reconciliations adjusted different give may yesterday.Now any the Brian we let's EBITDA, net Gerrity. team Bob Litigation days.I'm described debt ratio, be Then by We laws.During statements results Please net for Reform to today, call from to measures, including morning will securities risks have turn acquisitions. Private we include Securities within within Chairman We Cree; in to After our agenda which discuss statements.Those we These quarter among periodic over closest Vitesse's free operations by earnings GAAP we of CEO, provide actual issued and your questions.Before release are forward-looking in can I'll some are you and flow. net conclusion joined others, President, release debt, safe answer the earnings include, that these will on found information matters these any quarter. adjusted opening risks as and on our to that cash income, CEO, call near-term measures be beyond follows. including materially some guidance. some applicable to the certain may results the by After Brian call, uncertainties, available updated be these development disclaim financial recently meaning and CapEx the

Robert Gerrity

Vitesse invested. first thanks capital strategy, stockholders. you, our XXXX economic we this for Thank earnings quarter and return to today's call. must on of return very dividend sustain To in your a Management to Good morning, return the to Ben. participating capital a everyone, as at is vehicle have capital committed

to a the of harvest quarter in increase this to share the have continuing capital us This sharing and really fixed led spend this done of the to in supportive continue over really production We into starting X% manner, of stockholders fruits the year. deals a of paid is our and for increasing $X.XXX quarter dividend our raise CapEx by guidance per second to dividend cash with which are XXXX.We labor second last first be an economic June, half dividend. year in we

year, to bolster deal would deals continue dividend.So has acquisitions development our We at that healthy. look asset larger been and near-term flow this far

do projection. our all not budget, fixed to that take these describe, highly us have a self-sourced we CapEx incremental them highly economic economic When $XX have we will agreed down. to invest additional original over will acquire opportunistic. acquisitions, it's find we million of allow will Brian to As interest We

everyone to Brian, on all meet our strict turn to compliment our that these economic Vitesse. it -- just pursue parameters.Before to I at of continue team as over will want We opportunities I

which We allocate the to that in capital our rowing in a boat dividend, shareholders. dividend bust are way belongs day supports harmony. We every ass really is all our our the to

So Brian President, partner, with Cree. turn over it business to that, our I'll

Brian Cree

and thanks production today's on and oil for good participating quarter, we per barrels the In first XX,XXX morning to of Bob, Thanks, day. equivalent everyone, had of call.

as XXXX CapEx in production week.Despite the were additional previously as February the in acquisition mentioned than a As guidance a for increasing result mentioned. Dakota our that negatively impacted the in wells this event we call, North are severe offline production earnings by was and more weather our of of activity Bob January, event, many

drilling we over oil greater and improve as acquisition Mountain near-term capital the majority economic of find to our pipeline our for to year of excited that in trends, experienced than another and and these XXXX.As will Trans which enhance has into that to have half the expansion development and XXXX, March those acquisition wells traditional fall that the first Through the pipeline occur months X an second which into of summer these nature increase occurred invested in and opportunities completion comes historically, are quarter the it existing capital Thus until the Canada, the next.Our activity. past on in of in on this We're developed than differential continue to the first return XX-plus through XXXX. the have development production more not have the closed we've addition drilling expected or we operators. expect completing in acquisitions near-term of the reported We we earlier activity this either highly XX.X to over in likely invest been development assets development over during our about our fourth quarter recent been phase permitted had online was to course The years. X.X are planned wells with net net were by XX, month.

have XXXX. production the for hedged $XX our of the production of portion remaining continued XXXX oil and we guidance we barrel during above At oil of approximately $XX per our add place midpoint hedged at swaps XX% now end to oil above have your a and in revised of We hedges year, time. at barrel.Thanks the for a XXXX, our have through

over I'll review CFO, highlights. it Jimmy our our Now financial Henderson, turn to to

James Henderson

Thanks, a Bob. from I mentioned, approximately quarter the to refer introduction. earnings Brian and few financial morning, appreciate Brian for to XX-Q release day BOE per XX,XXX for always, production upcoming Good the XX% wanted further you first the quarter. I was for results assume can everyone. highlight the and cut. our as details.As I'll And our oil our

recovered. operators, extreme but January, winter Our in production work we the to by quickly thanks conditions great was by affected our

say the or out in that million and per for continued there the North BOE. to getting men weather the job in addition women also $XX.XX the expense expenses $XX.X in done day Just and operating are negatively enough elevated in workover event by severe Dakota.Lease about were quarter at impacted can't day out coming

the were For which $X.X adjusted made paid hedging oil for loss in the EBITDA earlier difference adjusted due with noncash being million quarter income primarily attributable costs net to that million. unrealized quarter, million, CapEx acquisition a to the in quarter.Cash $XX.X the acquisitions prices included and the and XXXX. loss to increase costs $XX.X related was income in of was net million $XX.X was GAAP

to for from first were Vitesse's transaction yesterday's restricted a quarter, is retired CapEx price relating million X% $XX.XX, withholding exchanged price. at tax common current our that stock below activity -- occurred price stock of of XXX,XXX reminder, which stock the on variable stock depending opportunities.During can vesting a shares being after $X.X levels be units. acquisition about of of our As This quarter-to-quarter we and

that it CapEx annual based our The operating has over due production expected not anticipated coming million primarily and of mentioned, buyback, While them draws million call in million a accretive Dakota. the our cash note oil which to XX,XXX and increase acquisitions decrease $XX commitments our at now to provide operator dividend increased Commensurate share redetermination EBITDA to a recently of stands and as XXXX material on of now new acquired authorization.We does as approved confidence million, investments.With that X.Xx on quarter XXXX.Our trailing the Board our Debt BOE the in share, and the XXXX to range, oil with expenditures this ranges XX-month $XXX operational and end we of per effectively to but an facility. in a and agreed with on XX% in and result resulting activity, production original quarter-to-quarter retirement well the expenditures credit leverage gas XXXX These million. we in power our to our $XX of $XXX CapEx matters with or increasing million, from happen. was previously as million wells at to credit have are weeks.As cut, day to share Please at which this Q&A. for under our increases ratio demonstrates the next incremental guidance natural our elected per turn North end the on cash funded capital to nature increase when repurchasing from share online stand functions XX% be to and capital of are expected increased the guidance late currently first flows buyback varies a our let production $XX basis. to for just near-term XXXX XX,XXX flows, $X.XXX we that, assets expect development over me to acquired are our the we these $XXX other in complete couple semiannual facility $XXX quarter

Operator

John Partners. from the [Operator Instructions] line White come of Capital Our questions with first ROTH

John White

they How production undrilled Could on more on And we counties located? comments much detail what the any acquisitions? acquired? are being get is existing a inventory? Like the little predominantly

Brian Cree

fall. we going These wells fall. over in come is They to fall, we the that these kind wells want. the anyone John. in.But were different of in are more completed and very, developed a of and are more the of acquisitions the span duck McKenzie last were to they're were entire that when drilled Brian. Williams, in if that confidence let many shortly come crack terms There were going first those in are Absolutely, just This summer basin, but we than are that of lot traditional take wells get at of nature. online. did add timing operators But what at have very time were they the to some a that or the these I'll ready with Last on.

coming where fall, with sometime And I production to into producing kind there's lot were ready about a like of said, of start start that the just no will last quarter. time producing. fourth so These these, really unlike had the wells we

lot our of different of favorite operators little but what from did entire nature look wells. working in These a is have in standpoint, bit with they're of confidence if that economic in.They that than we year, working we at interest XX%. very north interests higher that average portfolio. of are so our some areas our are field in working a are And interest Typically, the you our again, last X%

that luckily, a been are April, we've and able working together came them. And deals there move for in with and they time forward so to just long we're

John White

And Bob used not situation? was this term the a mean sales that source. bid Does

Brian Cree

The operators investment were different companies. like will Yes. processes to out or bid anything banking come several else. not These

operators. maybe of for, few part we very just We've relationships this from have was put deal -- buyers, year the doing them of more with this where eyes I are it are all their different on But send and with Marathon, a these So is said, this go out did have we favorite the there. to sellers deals developed They years. still over it process XX them last an the our their in these and of We've kind offer.So, been from of kind we that unlike operators to is negotiated. where potential pipeline. and like

John White

net involved? acreage And

Brian Cree

Most of these are deals. wellbore

is of drilled not So course the additional acreage. much AFEs that over being new there's summer. again, wells that wellbore This all really the are, are really

Operator

next with come questions Michael line the from Jefferies. Schwartz of Our

Michael Schwartz

is, question how year, we the going given killing CapEx end on XXXX? these of to wells the are at in the Congrats thinking about that first My acquisition. be production be should

James Henderson

any and that increase and of to Yes. early, But guidance clearly, 'XX we're flow dividend with for confident Mike, thinking any the cash XXXX. as 'XX. Little we'll be production giving we exit will into about tell increasing sort

CapEx, year. as next into go objective growth we think will necessarily, we But sort I some get you pretty maintenance not if although think so should I mode about don't think you year-over-year. into but you of with returning production of we're ahead see we we And a happy And think as ourselves, XXXX. change go can too see to want -- then we our the far it's to

Michael Schwartz

understand Makes that sense. completely I early. it's

your also to further? thinking to sounds that like just that? be What of this it to and of to seeing. Is any to I So the should after about you're see kind decision the are kind From wanted raise of tied comments, dividend. we there deals do need grow ask kind it's the metrics dividend we growth about

Robert Gerrity

really return, the very of shareholders. to money well, a of drilling. economics when a capital capital way allocators. high it's we gives us function can in return of rate to our We're going we're that allocate Well, the that a And

to dividend.Obviously, And to of be look deals degree in happen can. different find supportive we're But the oil Michael, a last for. hedged the is will dividend. months, finding those very what in the acquisitions to X constructive price can If stable the that we lot the So to ways. continue we that this we that's certainly we

calculus the want you that? very so is dense. add this And something to of Ben, to

Ben Messier

Yes, we think to environment, about our a flat coverage really. production in dividend like

XX mode whole production sort So day we're high of of, the maintenance in the $XX when per the thinking this we call CapEx flat dividend it, mid- set range. million, level level, about to MBOE

you enough current in maintenance more operating conservatively generating model -- the our that the we're business So, if environment, cash than dividend at the CapEx. and current cover commodity flow look to prices, at

our then from said, off. spun and really and been we've as dividend still since where those. find That really good so than to could, more enough did lucky look And us RBL that, grow to We're Bob we feel have production are standpoint.And a acquisitions we've allowed draw attractive at fund we we thought levered. X.Xx originally about happy we to we maybe to we're

our We we're revolving XX% on drawn credit have -- facility.

of concerned attractive so drive that's years there these benefit but short-term capacity of that's free XX as growth of with over the about and to is So dividend. of cash a more in comes growth.And the next because of of the free not ton dividend we're having short the optics the that And cash hit we're term end, to obviously return. in really in flow we flow covering rates it the the know production sort looking longer-term like CapEx, more the

raise set So into that the calculus and it that's it some really. goes of we how when we

Operator

Richardson questions Our with come from the of Evercore ISI. Stephen next line

Stephen Richardson

was the could I I if little wondering the remarks a prepared wells. talk permitted you about wells -- bit appreciate comments in and the in-process

you you're could how just talk little in to about But lands, acknowledging talk point? this your particularly relative had out, you're If earlier you of what you are in bit at year operators in things impacts from guided seeing terms the QX. about playing on activity the and weather you how just could what that a operator seeing

Brian Cree

is little think bit that $XX Sure, we accelerated on it about Stephen. a CapEx. activity Brian. $XX kind on Typically, a organic of made -- to year seeing of mentioned we're of kind $XX comment what the the million is quick early asset. That's of on our for This million. million I've million We we've It's talked we're pace. in exceed that more in of year about -- $XX the an still, year first to received past. actually pace us X that puts seeing accelerated the to months but a AFEs We've in a

X-mile can. more Clearly, laterals laterals. the moving seen X-mile that.We've like we So are whenever operators the toward they

year, few and to in a pace quite exceeds So of in that were where in a of saw We've more XXXX. we on we've our terms refracs development. closer we this seen XXXX probably what that seen

laterals. to pace the refrac the we've operators about an that think it's continue yes, -- about excited excited the we it time. not excited sure look X-mile in know at point about We're we're we're are laterals, that. We accelerated activity.But X-mile very that that continue. think So this seen We that will all operators the at

We those just will a beginning that see of than out. tell those XXXX have being year. economic more excitement than had the the of us as confidence X-mile. we at all together gives in to their combination level about pull of the the and higher But Time exactly how those ability play of

Stephen Richardson

these you Maybe, you is that the the the I on as back on as of have is production these looked activity got you from does be it is part it exit But rate by have it, going could year you all next well year-end? appreciate well Brian, at will I've of into QX looked One, and risked and based acquisitions, the as visibility. you on it? of Like contribution -- you or in -- risking it to will bores appreciate that in QX, year? it full your at trickle be don't wellbores kind the

Brian Cree

we our modeled Stephen, the definitely wells -- with as the fourth modeled those expect for fall to made underwriting, hard them. know, on sure. We point these be on all to just That's in production Based coming of in you some we tell last on things at little we've acquisitions it's it's how slower. quarter. a But when time

So good it's But have terms of is control. underwriting But think a the meet Jimmy It are our and job operators. I in timelines. confidence in, operators in estimating of the we not timing. in think that I do we control again, mentioned, our they'll our these as pretty in

Stephen Richardson

the I the company resources reinvestment and with comment on squeeze of about up if financial the me, -- set. following just in opportunity previous Ben's for it of kind one Last of thinking could on terms in

it, on depending oil So, least you most of if us comfortable a above kind for happy, little investors. just you're at levered. Can taking about is probably where how you're you mid-cycle you remind but at considering that this price, bit think look that where

take opportunity willing to itself? present are to you like considering So if that set where the continues

James Henderson

we're to I'll levered. under under we'll This today increase I year Yes, year I and the the in I really of see Xx said think that in. these then remain always last -- much we've jump invest. opportunities, here. at the acquisitions confident that further as ability kick getting don't going And we're the for Yes, acquisitions we're where certainly that remainder these Jimmy. to is there remain late did with we're from from think we contribution

leverage standpoint position liquidity So a I really a resources. really standpoint we're a current within in and think from comfortable our given

Operator

Our Jeff Alliance line Partners. Global questions of Grampp come the next with from

Jeffrey Grampp

I deal dynamics curious may gross development acquisition here be XXXX that near-term guys those higher versus, interest if at obviously, just the market whatever guys know, to was far. look are Is kind being with market, you'd of on like? were period or active really it a how things so working a, of function I Or pretty reference might current consistent? you basis, don't characterize say, you

Brian Cree

I'll jump time. Brian. Yes, deals. in We in Jeff, again. still lot very market a We see The evaluate robust of lot this is at point a this deals. remains of

we I And a a lot our range, kind we always $X bid came those lot for come all at on there. those probably when said we very is of working things of for the see those working that. first There's higher take competition we've some But you're deals it's you in look $X rate together. of hit XX% right? we've deal again, dollars of interest.So million a talking us, a mean or and fruition. of the versus about think in quarter, sudden, past, these. in little tried million smaller I really had less a the things As nothing success probably then advantage to when lumpy, And lot interest more yes, to opportunities,

because one with the going the we to is, -- rates say and just is more that that below get pipeline We good, that sure makes some while timeline it's really higher operators, will bid that your working get a these, these deck strip. think on -- it a to it's have optimistic. others what's just work sellers So, thing is close these little standpoint, little various difficult I actually more the really I through price question add to find make oil to our we that typically will that we from underwrite it when is, to these various very a will understand attractive.The of at at prices a hurdle

a higher, little becomes And difficult so it us. for little when prices a more get

the range seems very to competition. us really So great $XX that $XX well does be where of for underwriting against to range our kind a on

Jeffrey Grampp

And come context especially nicely, Should bumped Hedges hedge maybe first volumes new expect as a increased especially dividend? online? there, of in for the Or guys of part how these Jimmy. thinking we you question perhaps here, acquisitions the the are up 'XX. more book about

James Henderson

key going decision-making flow Obviously, that definitely. so Yes, hedging investments is make continue these can of cash we protecting dividend component to forward. a our and the

So yes, to definitely XXXX added we see volumes forward. as move you'll

working against backwardation the We have a us, of couple things obviously, of the market.

credit So forward. and we've time, to At patient forward let wave kind our percentage hedge that as time, fill able we agreement.So got same bucket. the allowed move under are that in a move be we to continue to we're of certain to only

online we've to on can methodically into enter And support that ahead to to so these transactions So acquisitions come those. hedging. add as PDP tried that level they push we

limits versus a acquisitions it to do far do can as have but try So as that limited until somewhat we little we push our can but we bit we support we them, room can. of that, so always we as

Operator

with come Research. Tower Water questions line Robertson the next from of Jeff Our

Jeffrey Robertson

to Brian, target? the on see or one operator able to to assets you basin you identify opportunities system to Are help you Bob and that hands another in change question a as Luminis. adapt acquisition consolidation from

Robert Gerrity

to Luminis. relationship more day. has Absolutely, Jeff. Luminis gets Everybody every vibrant a

we're your amount can AI of wells it's you we when over -- you've into can Luminis does with And XX,XXX well. capacity. information And the do developing or as AI it got loaded Everybody some some system. get amazing

from the man, in just, whether it it revenue So everybody every it. We're looking Luminis it. with land we're they're yesterday or it's we the do day. organization, a learns had in a with other And engineer that call a question. Luminis. clerk, great enjoys is about We thrilled X.X rely hours on we finance meeting that developments they're And Everybody whether democratizes, department, to Luminis. forward

an gets develops it part and of every better important it's our day. So and company,

Jeffrey Robertson

going ability in and opportunities is? only the understand does factor context dividend the lie, runway basin And raise to does the asset where that on what's understanding your the not but decision base, what of in to into the Vitesse's

James Henderson

Yes, I'd goes I an that the say is guess, Luminis. from dividend to what in output, decision

So investments, opportunities as certainly, increase Luminis Bob and to drives ability dividend. spoke, allows make us these the the to analyze course, of smart which,

output So, but it's an kind indirect supportive. of that, to certainly

Operator

questions Our Schafer line next come Markets. of from Capital Northland the Donovan with

Donovan Schafer

things of or been I So what created separate the when step the can with update risks Basin. if those it's you along drilling is company kind derisked totally get answer expanded I been itself, more out, some you know probably X-mile out or lateral, repeat further.I not it's Are presents CapEx step with know thesis does opportunities on thing either allows the virgin guys that an this a point a maybe original but have if you tighter just to there while opportunity million increase? step-outs kind also, had recent question my in where $XX tied that But themselves infill bit we to lines. done guys drilling on you that it these before infill denser the deeper of this in specific are or because of DJ can successful to a if separately, little maybe things to guess, taking we of if sort can you tie of connect, maybe first

of it with then actually highlighted Just anything, and in general these opportunities? is update demonstrated the a just or sort if

Robert Gerrity

simply this more is We we had field time concept that Donovan, that course deeper in Bob. improves of speed in offset is The its day. really It over saw every in than the the denser Bakken. that's technology economic. the we're just cheaper being about because expanded well every well and DJ, becoming better Yes. more just the was seeing it that seems hyper economic drilled

a when out this the Bakken, at the unless happened a field.Of in so And cost the if it's cost-efficient in on you're through the technology. that the stabilized, technology and look map not basis, has that it's was But we're Tier amazing it's down little really -- has at certainly X And Tier gone many the And right, is have ago getting years look bit. of the we field considered not field lens Bakken X. what expanded at meaningless. we a course, economics

Bakken. love day, we So the next. what's does to better excited get have every we find we're and in out position the It

Donovan Schafer

I And kind Jimmy then as so I'm another question, know putting the of on spot here.

it But kind going -- also was from particularly, there it him know. focus LinkedIn experience [ for other part Bakken few you or these quarters ] more leave to we've important was pretty there -- was well focus and amazing, -- gotten impressive. something Rockies -- going very a something. and out think that Rolodex like strong thick acreage was Jimmy what maybe yes, joined -- of, his perfect gets And I'm with Rolodex kind there room higher not of if in John instead, first bit I'm of, to emissions, his other incredible to gaming thought update don't of package interest. did is deal White role shoot right? or you I ties and is probably I'd be generally, okay, he at a make the to it, only So in. the of kind well.And together. as sort and of a a the has relevant, his should in just of profile get maybe like like put he thought can so I development I but from bio may sort sake, of been a also going some how own this Anything, he's program that sense their of involved and joined been it was quite I a interested I so means just working decision in be a -- drilling quarters horn, odd we there's companies but the when just do sort almost large we're speak the instead an joined a And opportunities.And have of could or the I So, the situation had and -- of an broadly to few getting a that Jim's but the point of he to back, hinting and near-term acceleration kind curious -- making Jimmy I It's working Jimmy, a deals and bit guys, of

Robert Gerrity

Yes.

Donovan. nailed is unparalleled. work, every to and knowledge having scar way was on Jimmy You experience it, for And it's understand doesn't Bringing what just tissue what that and win works Jimmy's Vitesse. in invaluable. a

You don't learn it in a book.

hard it He a of was perfect the time. Jimmy was in and a long and for Brian You came partners learn by were fit experience. I. for knocks just if it we as

is for And the a Jimmy You deals. able lot being us to call additional credit I think him fair give to accelerator. it can of source

sweating So yet orâ€¦ Jimmy, you are

James Henderson

what just thoughts. all the advantage over Luminis for And for here the it talked this appreciate well as do things -- it been moving in assembled all appreciate so Okay. keep as comments, years months, those that take to built to has few a forward. to company. things take like and I'm of of But about, been the existence the the the to I really far as I'd be able we've really and to what's of been a to really of I really we've here credit done would has it's I culmination Enough like last much that developed and that. as already testament is team ability but

Donovan Schafer

stress of do what how just would I Okay. the you guys with you kind of you've testing, you tell and have their Board, the later. hedging -- negative course, presenting And to just on kind if -- say, that sort to dividend of have of year. got of you it you the just so stress testing -- to in can [indiscernible]. even find for one confirm me for I if parameters, imagine is next I'll example, type lot but just then of anything the get my to maybe raising really call approval question assume a place last But can that. and dividend. and some

So of say many the $XX a do we stress assuming of backstop or test that? you've can kind how years parameters some long oil, you months or -- are just to what done and how that

James Henderson

strip backwardation. dividend, there's if knowing go things of than would costs in And to go with down, itself the it's of happen that to lot can cetera. certainly, what a that for you ratio provides this a good Donovan, first way maintain guys Yes, fabricated the mean, we I yes, you type jump have look scenario, in. and let Jimmy. we test is kind coverage the take and that the even in at model litmus and pretty that further this But I the tend a et we adjust can lower-for-longer

probably get level for a best period do We're So adjustments flattish scenarios, confidence. maintain and step flat we -- able to something a kind time.So in. support dividend we to run we in like can that. of gas a strip and companies and we're as we yes, in can of most even little then the are and price confident of make Brian, you can amount more of most oil definitely in scenarios the then that that multiple we

lot You've more I than done a have.

Robert Gerrity

dividend have And brief we've the just we and a price down. Bob. obviously, when It's I'll to the understand, and important it, goes goes this for. oil of what it's -- seen down, Yes, activity comment. very live is is

CapEx activity goes down. our down, So goes when

the everything. can't -- when test, -- you're doing fix just stress you fix can't just you that So

You have down earlier accordingly.So oil realize us maintenance to of is what is to that the XX, if $XX measure is price key the down Ben for will go that activity level around million. CapEx our said the goes

a So that for critical us. number real is

allocators. capital So above additional that we is where become

of of the CapEx maintenance that got. rate highest is Our return we've

to to money very year, to $XX be So attractive. than spend have for million going us it's more very, a

all think you Brian, Donovan. we it about So time, the would add?

Brian Cree

to our thing use right? to -- is very want if we that And debt period short-term it's that but adjust allow provides to But look, but on have at one leverage, look long mean, clearly, to reasons fixed oil add that us tried We've lot. something Vitesse a dividend feel keep obviously The for that is were a extra debt like that we're to that's dividend, us to would flexibility. the would basis, everything. has a that we time, we us. that down Not only decline talked oil about some prices into to of of Donovan, to prices just keep I really always it factors that -- here, it's again, something calculation. the capacity and is that capacity pay extra went that important if it -- there I

Operator

from next Parks the questions Brothers. line Tuohy Our come with of Noel

Noel Parks

diversified have era a of to when efficiency, to entrance and the there's new lot other just other in basins? active wondering, or any looking couple. many your I'm operators recommend interested get model, capital And seen so had was you Just of the of you Bakken a with -- how I the non-operated non-ops forth. any continued signs are across

Brian Cree

consolidation Bakken see far we some family mean, consolidation come been to transactions some this offices mean to new looked there's into that where of operators I other their looking has new is taking There's been are at. Yes. I the the that's basin, there best always on the in. exciting sell year entrance good along That, each assets. side with see what it's operators and something the us. so are in constantly to

pure I think from from more for to always deals, don't far entrance a I the this again, so, larger a deals, those But we've little from -- any non-op there's smaller space. what we've standpoint, we accomplish year, non-op competition. seen been able And so really see think new

Robert Gerrity

tightly has acres reconstruct we X X could never years. This buy the is per into to acre. or low XX-some-odd a the It's way thousand at It's and really held for been it We Bakken. very cost your hard Bob. have. bought We

Noel Parks

whatever together as terms potential just in came deals -- a helpful with last far you month. as sort That's has that And number a interacting And and of described be tend of just to sellers, to just price sensitive get threshold? more or are time-sensitive do looking price these for looking their they sort of they meet well, consideration. will I'm interests sold of more curious,

Brian Cree

AFEs price have just for seller's with have them history transaction going forward something that most us, I Yes. -- look them. trying decision, But that guys able times, they they're think lot we're mean that these which we're to to a have had at to important I days can with XX move from then XX a is move a think the that be going they will and lot days. same of the at these AFEs it trust they in. the of of and to They time, get close. And I to times make always that's a within to

It's a the having minute. have deal on them in is to reasonable going provide close, somebody done, not back that will it out can So the with last they to that that confidence get going offer. them to

it. I that plays into think all

Operator

the to questions There are for to hand over call closing at would remarks. Gerrity like I back this no time. Bob now further

Robert Gerrity

the you us Thank for time with spent you've this morning. all

questions, in any cracks the here. Ben have a follow-up does job filling Messier you If of great

talking look X everybody to So to forward seeing in months. Thank you or you. Bye-bye.

Operator

does your participation. conclude appreciate Thank you. We teleconference. today's This

of this day. at You time. may rest disconnect your the Enjoy

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