Viper Energy, Inc.

Good day and thank you for standing by. Welcome to the Viper Energy fourth quarter 2025 earnings conference call. At this time, our participants are in the listen only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star one one on your telephone. You will then hear an automated message advising your hand is raised. So if you draw your question, please press star 11 again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your first speaker today, Chip Seale, Investor Relations Director. Please go ahead.

Thank you, Brittany. Good morning and welcome to Viper Energy's fourth quarter 2025 conference call. During our call today, we will reference an updated investor presentation which can be found on Viper's website. Representing Viper today are Case Vantoff, CEO, and Austin Gilfillan, President. During this conference call, the participants may make certain forward-looking statements relating to the company's financial condition, results of operations, plans, objectives, future performance, and businesses. We caution you that actual results could differ materially from those that are indicated in these forward-looking statements due to a variety of factors. Information concerning these factors can be found in the company's filings with the SEC. In addition, we will make reference to certain non-GAAP measures. The reconciliations with the appropriate GAAP measures can be found in our earnings release issued yesterday afternoon. I will now turn the call over to Case.

Thank you, Chip. Welcome, everyone, and thank you for listening to VIPER's fourth quarter 2025 conference call. The fourth quarter capped the transformational year for VIPER, highlighted by more than $8 billion of mineral acquisitions. and meaningful growth in both absolute and per share metrics. Year-over-year, we grew our Permian Basin acreage by nearly 2.5 times and our oil production per share by 7%. Activity across our Permian acreage remains strong, supported by Diamondback and third-party operators focused on development of long-lateral, high-quality inventory. Looking ahead, we have initiated average daily production guidance for the full year 2026 that implies mid-single-digit organic production growth from our Q4 2025 exit rate. The Diamondback relationship continues to be strategic and meaningful to VIPER's growth, even after two significant acquisitions in 2025 and greater exposure to other leading operators in the Permian Basin. Beyond visible near-term growth, VIPER is better positioned today than we ever have been in terms of the scale, longevity and overall quality of our asset base and future inventory. Another significant achievement was the work we did on our balance sheet. Following our non-Permian divestiture, we fully repaid our $500 million term loan and outstanding revolver balance, resulting in pro forma net debt of roughly $1.6 billion, just over one turn of leverage. Now turning to return of capital, our board approved a 15% increase to our base dividend and a $1 billion increase to our share repurchase authorization, reflecting confidence in our long-term cash generating ability and disciplined capital allocation approach. This base dividend represents approximately 50% of estimated 2026 free cash flow at $50 WTI and is fully covered below $30 WTI. This increased base dividend provides an attractive yield while also allowing us continued financial flexibility to optimize capital allocation through additional returns via a combination of our variable dividend and opportunistic share repurchases. Given the strength of our balance sheet, we returned 90% of available cash during the fourth quarter. And now, following the closing of our non-permian divestiture, we are well positioned to increase our return of capital upwards of 100% of cash available for distribution. Importantly, we expect to execute on this comprehensive return of capital strategy while also continuing to deliver on differentiated growth in per share metrics. I'm pleased with our accomplishments in 2025 and the strong position Viper is in today, but there's still much to achieve. Looking ahead, Viper's well-positioned to generate strong free cash flow deliver attractive shareholder returns, and continue to pursue accretive Permian consolidation opportunities as they arise. Operator, please open the line for questions.