Crescent Energy Company

Greetings and welcome to the Crescent Energy Q4 2025 results call. At this time, all participants are in a listen-only mode. A brief question and answer session will follow the formal presentation. Should anyone require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce Reid Gallagher, Investor Relations. Thank you. You may begin.

Good morning, and thank you for joining Crescent's fourth quarter and full year 2025 conference call. Today's prepared remarks will come from our CEO, David Robert Charlie, and our CFO, Brady Kendall. Our Chief Operating Officer and Executive Vice President of Investments will also be available during Q&A. Today's call may contain projections and other forward-looking statements within the meeting of the Federal Security Council. other disclosures. We have no obligation to update any forward review statements after today's call. In addition, today's discussion may include disclosure regarding non-GAAP financial measures. For reconciliation of historical non-GAAP financial measures to the most directly comparable GAAP measure, please reference our 10-K and earnings press release available under the investor section on our website. With that, I'll hand it over to David.

Good morning, and thank you for joining us. 2025 was a transformational year for Crescent. Our team delivered strong performance by executing on our consistent strategy and capitalizing on our leading combination of investing and operating skills. As a result, we entered 2026 better positioned than ever with more scale, more focus, and more opportunity. As always, I'd like to begin with three key takeaways. First, our base business continues to deliver impressive results. In 2025, we generated significant free cash flow, exceeded expectations on both production and capital, and demonstrated the durability of our investing and operating model. And we are bringing that significant momentum into our 2026 plan. Second, we are now a focused and scaled operator in three premier basins, the Eagleford, the Permian, and the Uinta. And we see tremendous upside potential across our portfolio. Our investing and divesting activity materially upgraded the quality and scale of our portfolio. In total, we executed nearly $5 billion of transactions in 2025, closing over $4 billion of acquisitions at less than three times EBITDA and divesting nearly $1 billion of non-core assets at over five times EBITDA. This is how we compound value. recycling capital out of non-core positions and into higher return, scalable assets where we can apply our operational playbook to drive value for years to come. You have seen us successfully execute our strategy in Eagleford. Over multiple years, we have built a top three position while generating strong returns and hundreds of millions of annual synergies. It is just the beginning for us in the Permian, but we are off to a strong start and we are doubling our original synergy target. And third, our equity value proposition is even more compelling. We will continue to build long-term value through strong free cash flow and returns from our base business, but we also have significant upside catalysts embedded in our business. We are excited to introduce one of those key catalysts today, our world-class minerals platform, Crescent Royalties. Let me now discuss our strong fourth quarter in more detail. We produced 268,000 barrels of oil equivalent per day for the quarter, including 106,000 barrels of oil per day, and generated approximately $239 million of levered free cash flow. In the fourth quarter, our activity was focused predominantly in the Eagleford gas and condensate windows to capitalize on strength in the natural gas curve. Early performance has been strong, and our ability to allocate capital across both oil and gas-weighted inventory enhances the durability of our returns in a volatile commodity environment. Operationally, we continue to raise the bar across our asset base. Over the past year, we've increased drilling and completion efficiencies, extended lateral lengths, and expanded the use of SimulTrack operations across our footprint. These initiatives drove a 15% reduction in drilling and completion cost per foot year over year, and contributed to full-year CapEx outperformance. Our operational expertise is foundational to our strategy of buying assets and making them better, and we intend to apply the same proven playbook to our newly acquired Permian assets, which gives us confidence in our increased synergy targets. Our entry into the Permian was a defining step in Crescent's evolution. Today, we operate scaled positions across three premier basins, the Eagle Fruit, the Permian, and the Uinta, which is complemented by a substantial and world-class minerals portfolio. This combination provides inventory depth, commodity flexibility, and a durable free cash flow profile that positions us to outperform through cycles. Turning to our new Permian assets, integration has progressed seamlessly. As we've spent more time with the assets, our conviction in the value creation opportunity has increased. This acquisition remains one of the most compelling we've evaluated, with immediate accretion across key metrics and highly attractive cash-on-cash returns. Importantly, our synergy targets are now 100% higher than what we underwrote. which meaningfully enhances expected investment returns. That increase reflects clearer visibility into incremental operational efficiencies, overhead optimization, marketing improvements, and additional balance sheet opportunities as we implement the Crescent Playbook. Looking ahead to 2026, our plan reflects the consistent execution of our long-term free cash flow strategy. Our focus is on maximizing free cash flow while maintaining operational and capital allocation flexibility. We expect to run a six- to seven-rig program across our asset footprint. Four rigs in the Eagleford will span multiple phase windows, providing flexibility to pursue the highest returns across commodity cycles. One rig in the Uinta will target our core Ute-Land-Ute formation and continue prudent delineation of the upside across our significant resource base. following the success of our Eastern JV. And in the Permian, consistent with our acquisition announcement, we are right-sizing capital and operational intensity with a disciplined one to two rig program. Our upgraded portfolio, enhanced capital efficiency, and commodity flexibility position us to generate some of the strongest development returns we have seen in recent years, despite the current commodity price volatility. In addition to upgrading our operating portfolio, we're excited to announce the formation of Crescent Royalties. This is a major milestone in our strategy to build a leading royalty business. We have been active buyers of minerals and royalties assets for nearly 15 years, and have built one of the largest and most established minerals and royalties platforms in the sector, anchored by a core position in Eagleford under world-class operators. Today, our minerals portfolio contributes approximately $160 million of annual cash flow. By placing these assets within a dedicated capital structure, we enhance strategic flexibility and create additional pathways for long-term value recognition. With Crescent's differentiated knowledge, experience, and sourcing pipeline, we see meaningful opportunity to continue scaling this platform in a value-accretive manner. Our transformation in 2025 was significant and a testament to the power of our consistent strategy. We are relentlessly focused on building a great business with a great team that talented people feel proud to be a part of. With our success in 2025, we are well positioned to continue on our trajectory with more scale, more focus, and more opportunity than ever before. With that, I'll turn the call over to Brandy.

Thanks, David. Crescent delivered another quarter of strong financial performance, generating approximately $536 million of adjusted EBITDA with $226 million of capital expenditures and approximately $239 million of levered free cash flow. These results underscore the significant free cash flow generation capacity of our portfolio and the strength of our lower capital intensity operating model. Our free cash flow enables what we view as an all-of-the-above return of capital framework. First, it provides substantial coverage of our fixed dividend. We declared a $0.12 per share dividend for the quarter, equating to an approximate 5% annualized yield, and our cash flow profile provides significant cushion to support and sustain that return. Second, it allows us to meaningfully strengthen the balance sheet. During the quarter, we repaid more than $700 million of debt, and we retain the capacity to continue deleveraging throughout the course of 2026. And third, it gives us flexibility to repurchase shares when market dislocation occurs. We increased our buyback authorization to $400 million, providing the ability to repurchase a meaningful amount of shares when we believe doing so represents an attractive piece of capital. Our balance sheet remains strong, our liquidity is significant, and our capital allocation framework is disciplined, flexible, and focused on long-term per share value creation. With that, I'll turn the call back to David.

Thanks, Brandi. Let me close by reiterating our three key messages. First, our base business is strong, improving, and generating meaningful cash flow, and we are bringing significant momentum into our 2026 plan. Second, our 2025 investing and divesting activity materially upgraded our portfolio. We entered the Permian at compelling value with significant synergy potential and exited non-core assets at attractive multiples. And third, Crescent's value proposition has never been more compelling. We combine investing discipline with operational expertise. We generate substantial and durable free cash flow, and we have multiple pathways to drive long-term per share value creation. We are larger, more focused, and better positioned than we have ever been, and we believe we are just getting started. Thank you for your time this morning, and I will now open it up for Q&A.

Thank you. We will now be conducting a question and answer session. If you would like to ask a question, please press star 1 on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star 2 if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. One moment, please, while we poll for questions. The first question is from Bert Dons from William Blair. Please go ahead.

Good morning, team. On Crescent Royalties, could you maybe help us understand where we are in the value creation process? It seems evident to us that the value is not really showing up in the shares, you know, if you use peer multiples. And you noted scaling the business is probably maybe the next step. But what options are you, you know, open to or what options are you not open to to eventually monetize the assets?

Yeah, hey, it's David. Great question. I think the most important place to start is that this has been a core business of ours. We've built a scale portfolio over the last 15 years. It's world-class assets, and there's significant embedded value in the company, and we want to make sure that investors in Crescent understand what they own. The other couple key messages I would give – These assets that we've put together are among the lowest cost in the lower 48. We think they've got tremendous upside potential and just what we already own, but we see significant future growth potential just like we do in the rest of the business. I'll let Clay give you a little bit more color on that.

Yeah. Hey, the only thing I noticed, you know, we view this as really step one in terms of value creation in terms of allowing our shareholders to kind of recognize the value that we see embedded in the business. As David mentioned, we kind of see clear pathway for growth. We've been able to compound this business at 20% annual growth over the last five years. We continue to see pathway for kind of creative growth for the business. And then, you know, we're committed at 2026 to continuing to unlock value for our shareholders with this business.

Sounds great. And then maybe this one's for Brandy on the maybe the vanilla upstream M&A. We've kind of heard both sides of the story that this is a seller's market, prices are reaching high watermarks, but also that inventory is drying up and you should probably be grabbing inventory while you can. So just wondering if Crescent thinks this is a time where maybe you do whatever it takes to win a bid, like maybe the Canadian curling team, or is it smarter to just take a step back and catch a few low-priced silvers like the hockey team.

Hey, Bart, it's David. I'll take that one, and thanks for an amazing setup. What I would say, a couple things. Your comment just makes me want to communicate how many significant catalysts we think we have in the company, but to run through them on the M&A side, we've just completed a transformational year We think we made a great entry into the Permian at fantastic value. That integration is going great. As you know, our number one thing when we make an acquisition is to get that right. What you should hear from us today is that it's going really well. We think it's going to be a tremendous long-term opportunity for us. From a preparedness perspective, we're active in the market all the time, and we're ready to be opportunistic. From an actionability perspective, which is very different, what we're telling you is we see a huge amount of opportunity even within the company. So we're focused on driving value with what we already own. We're focused on making sure investors understand all the levers we have in the business, including, as we've talked about, the royalties assets, which again are world-class and scaled. And the market, from our perspective, we'll be ready when it's there. So it's an interesting time right now, but we're kind of always in the market. But the number one thing is are we prepared to be optimistic, and yes, we are.

That's great. Thank you, David.

The next question is from Charles Mead from Johnson Rice. Please go ahead.

Good morning, David, to you and your whole team there. On the desire to grow the mineral world, royalty position. Can you talk about what advantage Crescent has in that process? My impression is it's generally a pretty competitive market, but it's less competitive. There's fewer players as you get to the size you guys are playing in. But what do you view are your advantages that let you compound this value 20% year over year and And perhaps, you know, is there one geography over another where you think there's the most opportunity?

Yeah, I'd say a couple of things, and it goes back to just the core of kind of who we are as a company, which is we're investors and operators. So we've got the core skill set and activity on the technical and operational side that we're looking at assets for. that we operate every day and paying attention to what others are doing. And then on the investing side, not only are we disciplined, we're very active. It's a core competency. So we see and we try to see everything. So when you put that together, at the end of the day, we're just opportunity. There's no difference in how we work about growing or investing in minerals than we do the operating business. It's about patience. It's about sticking to the returns and asset profiles we want. And what we found is we've been able to compound in both of these asset classes over time, as long as we're patient and disciplined and prepared and acquiring the assets that we want to own. So I do think the track record speaks for itself, but the inherent advantages we have are really who we are as a company and just really what we've built, how integrated a team we are, and how well we combine investing and operating expertise.

Got it. Thank you for that. And then if I could ask a question that drills down on your Midland Basin position. I know it's relatively new for you guys, but there's another operator that made a big, really a big reveal about the Barnett, the prospect of the Barnett in the Midland Basin. And I know there's been operators who've, it's not new that companies have been targeting the Barnett, but there was some new information with some, frankly, impressive rates. So I'm curious, I know you guys have only had your hands on those assets since December, but do you have any kind of estimate on Barnett potential that you'd be able to share?

Hey, it's David again, and then I'll let Joey and Clay also give you some more context on your broader Midland question. But very specifically, I'd say two things. We think we've made a phenomenal entry into the baseline. We feel really good about it. It's going well and we think we got it at great value. So we don't feel any what I'll call pressure to do anything other than make sure we get that integration and then synergy capture right. The second thing I would say kind of before I hand it off is if you look at really our strategy and action and what we've been able to do in the Eagleford, we put together a very significant position really over a decade We're now a top three producer in that basin. And a lot of the resource that we're developing today was not thought to be there or thought to be economic at the time we acquired it, which is fantastic. So I would just say we have high hopes for our entire business in terms of the long-term inventory potential without trying to comment specifically on the Barnett. But I'll let Joey and Clay also give you some more perspective just on how the Midland and Permian is going.

Yeah, the only thing I'd add, Charles, is clearly, you know, we've mentioned a lot when we talk about M&A, how active we are in the market. I think the same thing would apply to resource expansion. And so you'd expect us to be kind of very actively following where the market is going there and what opportunity we have. And as David mentioned, I think one of the big reasons you're here is so much excitement for us on the Permian entry is that we think there's a ton of opportunity around that asset base. So really excited about where we sit today.

Yeah, and Charles, in regard, we've seen the same announcements on the Barnett, and we just consider that potentially more upside to what we've already highlighted. And so looking forward to exploring that with everybody else and seeing what we can do with it. Great. Thanks for the detail.

The next question is from Michael Furrow from Pickering Energy Partners. Please go ahead.

Hi. Good morning. I'd like to stick on Crescent Realty's quickly. We appreciate your comments, and the strategy sounds quite clear towards adding scale. But, you know, given that this is a different business model, are the acquisition harbor rates going to be consistent with legacy Crescent, five-year payback periods at a two-times multiple invested capital?

Yeah, that's right. It's the same lens we bring, right? So as you know, right, this is cash flow orientation on the royalty side, clear focus on two times multiple money, and very clear focus on NAV per share and free cash flow per share accretion. So what we are excited about on the business is we've been able to build it the way we built it with those as kind of our core focus, and that is the opportunity set we see going forward. All right, that's great. Appreciate the color there.

As a follow-up, I was hoping for some clarification on one of your slides in the deck, slide 11 here. So by our math, it looks like the supply to oil rate for the fourth quarter in the Permian was nearly 70,000 barrels a day. You represent a pretty meaningful step up from the 3T level of like 61,000. And even more impressive is that you're disclosing zero turning lines for the fourth quarter. Are there moving pieces here in terms of what was disclosed or maybe some M&A or other transactions that occurred? Just trying to square that circle. Thanks.

Hey, Michael. So no additional transactions. I would say that our base business outperformed production expectations in the fourth quarter. So I think we're carrying forward good momentum into 2026. I will also flag so that Vital did not bring on any new wells since early October. So that business was in decline, and that ultimately is what's translating into a pretty flat oil production cadence for 2026. Thank you.

That's helpful. I'll turn it back.

The next question is from Philip Youngworth from BMO. Please go ahead.

Yeah, thanks. And congrats on the successful vital integration and increase in synergies. On the well costs, I know these numbers aren't always apples to apples across companies, but I think you're at 700 per foot in the Midland, 875 in the Delaware. I know there's a lot of tough competitors in these basins, but it does feel like there's a nice gap you could reduce. I know we're just getting started, but just wondering how much runway do you see to lower informing well costs beyond what's being underwritten currently in the asset detail.

Good morning, Phillip. Thanks for the question. Yeah, we're going to be working the DMC piece of it diligently. We do see some great opportunity for improvement. We've already seen some even in the short time that we've had things moving forward. The other part of it that I always like to encourage people or point out to people is just the value of slowing down. The fact that we've slowed down, get the opportunity to catch our breath, understand from the past learnings from Vital and apply the things that we're going to do going forward. You know, just the slower pace gives us a better opportunity for higher capital efficiency and reducing costs. So we're very bullish on our opportunity to reduce well costs in the Permian.

Okay, and slowing down is actually going to be my follow-up here. Just on the base decline, Vital used to give us a year-end figure for oil and BOEs. Last year it was 42% for oil and 36% for BOEs. So I'm guessing this is a lot lower today, but any sense on where the Permian base decline is now or by year-end 26? And just to confirm an earlier comment, can we imply that Permian oil production is also going to trend flat through the year, similar to Total Company.

Hey, Philip. This is Brandy. I think similar to my prior comment, I would expect relatively flat oil volumes both in the Eagle Bird and in the Permian throughout the course of 2026.

Okay, great. And anything on the base decline?

Yeah, on a corporate level, we did pick up post the merger pro forma for divestitures. We're in the high 20s across the base, the broader business. But expect to kind of get back to our corporate target of 25% or below over the next 12 to 18 months.

Great, thank you.

The next question is from Jared Giroux from Stevens. Please go ahead.

Hey, good morning, guys. Congrats on a strong quarter, and thanks for taking my questions. My first question is around synergies from the vital acquisition. In your release, you stated that Crescent had already hit 40 million plus in synergies from the deal, and it's causing you to double your annual targets at about 190 million. I was just hoping you could give a little color on what savings you've already seen and what you expect to get to the $190 million.

Thanks. Hey, Jared, Brandi, I'll start, and then I'll turn it over to Joey. So with respect to the $40 million that has been captured to date, I would say largely overhead, duplicative public company expenses, as well as cost of capital synergies. Of the 100% increase... on synergies, I would say 50% of that is ops related. And then the remaining 50% is additional overhead, incremental marketing synergies, and then additional opportunities to further drive down cost of capital.

And Jared, one of the things since I've been here at Crescent that's been incredibly impressive, you know, this is going back in history, their 16th asset that they've acquired since going public and have a very good tried and true playbook on integration i've been incredibly impressed at how efficiently we've been able to integrate these assets the team integrations and operational performance are exceeding our expectations just some color on some things specifically you know going forward will be increasing the number of wells per pad which will allow us to implement simulfrac We're also increasing lateral links by doing land trades, so we'll be able to increase our capital efficiency there. The supply chain opportunities are starting to come to us now that we're a company of scale, combining services and contracts. Some specific examples, combining contracts on generators, compression, chemicals, tubulars. And as I was explaining to Charles, just don't underestimate the value of slowing down. Slowing down gives us better operational planning, which drives better execution. Also on the LOE side, huge opportunity on the artificial lift side with our cash flow focus. Free cash flow focus, we're focusing on long-term value versus short-time rates, so that affects ESP sizing and how we do the timing of artificial list spots. The list is pretty long. All of these opportunities will be feathering in over 2026, but we're pretty excited and looking forward to getting through 2026 and capturing all these synergies.

That's great. Thank you for the color on that. And then just my second question. With the earnings release, you announced an upsized and extended share repurchase authorization to $400 million. So just kind of curious how Crescent prioritizes shareholder return between the base dividend, shareholder returns, and debt reduction in 2026. Thank you.

There it is, Brandy. So I would say no change to kind of key cap allocation priorities. The balance sheet and the base dividend are top. We're prioritizing deleveraging while also retaining the flexibility. We kind of talked about all of the above return of capital program. But again, I think in the immediate term, it's all about balance sheet. The increase in the buyback, though, does allow us to be opportunistic. It allows us to move the needle with the authorization program if the stock is significantly dislocated.

Thanks for taking my questions.

The next question is from Jonathan Margini from KeyBank Capital Markets. Please go ahead.

Good morning. Thank you for taking our questions. Just given the capacity or the ability for minerals companies to run at higher leverage ratios, does the latest spotlighting of Crescent Royalties change the way you think about leverage over time, or would you target that one and a half times ratio at the minerals level? That's how we should think about leverage on a consolidated basis, trending through this year.

Good question. I would say no fundamental change as how we think about leverage across the broader business long-term target continues to be One time we do believe that we were pretty conservative financing these latest minerals acquisitions. We expect to be below one and a half times by year end. And then there's clearly just significant asset coverage just given where this asset class trades relative to that leverage target.

Okay. Appreciate the details. Moving to upstream, on your Eagleford asset slide, we show laterals in the inner central and southern regions increasing by about 2,000 feet compared to 2025. Can you just talk about what's driving this expected step up and maybe how we should expect this to impact DNC cost per foot in 2026?

Jonathan, this is Clay. I'm happy to start, and then I'll turn it to Joey. You know, I think part of that is, as we've talked about, our ability to kind of build scale in Eagleford has given us a huge opportunity to continue to drive capital efficiency by extending my laterals, asset swap, joint ventures, you know, just blocking and tackling in terms of putting a position together and giving ourselves the best shot at capital efficiency. But turn to Joey to also the puns.

Yeah, Jonathan, obviously one of the simplest ways to become more efficient is to drill longer laterals. So it's really as simple as that. But I also point to the fact that we're increasing the pad sizes as well, which allows us to increase the percentage of simulfrac. We'll be up to 70% of our pads in South Texas region will be on simulfrac. Those two things combined really push our capital efficiency higher and higher. So it's all good things happening.

Okay. I appreciate the context. I'll leave it there.

The next question is from John Abbott from Wolf Research. Please go ahead.

Hey, good morning, and thank you for taking our questions. I'll just jump to the window for a moment here. I mean, part of your program this year is sort of delineating the other zones in that area. When you think about that asset, how do you think about the optionality of the ones at this point in time that is not as significant a part of your portfolio as in the past?

Hey, John, it's David. Great question. I'd say a couple of things. Just to hit optionality immediately and succinctly, entirely HVP, entirely in our control how we want to handle it. So that's just a fantastic asset to have. It's obviously intentional on our part as well as part of our strategy. So we feel really good about two things in that area. We can deliver really strong returns in what I'll call the normalized oil market. We're making great returns there and face Ute and Butte now. And then just the resource potential there is incredible. We've seen our offset operators continue to expand that opportunity. We entered there at below PDP value, so we feel great about what I'll call just methodically going through the opportunity and expanding that over time. And it's Joey said, the ability operationally to just go at the pace you want to go just provides tremendous optionality. But we think of it as more or less a one rig area for us and just slow and steady continued expansion of the opportunity is what we expect.

Appreciate it. And then my follow-up question is really on maintenance capex and long-term oil. You know, based off Your current plans, I guess you could exit the year with one rig maybe in the Permian. No, let's say maintenance cap, that long term I was talking to Brandy about last night is 1.3 to 1.4 billion long term, well maybe about 130,000 barrels per day. I guess my question is if we do see a more constructive environment on the second half this year as we sort of look out to 2027, 28, could you decide to plateau at a higher level? Or is one rig in the Permian really where you want to be? Or could you decide, hey, if it's a more constructive environment, let's just be a little bit higher than 130 long-term?

Yeah, hey, John, it's David again. I'm happy to take that. Long story short is we feel really good about what I'll call running the business at a target reinvestment rate, and we've done that all the time. Our key goal is returns and free cash flow. So yes, back to your topic of optionality, we've got the ability to do more everywhere, which means not that we're going to do more everywhere, but we can allocate our development activity to the best return. So if oil development is higher returning, you will see us allocating more capital towards oil. And vice versa, as you've seen the gas market strengthen, we've had more allocation there. So I think it'll be purely a function of rate of return. And then we actually have oil opportunity in the Eagleford and the USA on the farm end. So I think we could do it anywhere. But yes, you're correctly pointing out that we've got good optionality in the process.

Appreciate it. Thank you very much for taking our questions.

Thanks, Tom.

The next question is from Lloyd Byron from Jefferies. Please go ahead. Hey.

Good morning, David, Brandy team. Congrats on all the progress. Can I just go back and get a couple of clarifications? I don't know if it was Joey that was talking about cost, but another way to kind of ask it, is there an optimal scale? I'm just thinking about in the Permian or the Uinta, you've done such a good job and you go forward with scale.

This is David. I'll give you a sort of simple response and then give you maybe a little more context strategically. What we're seeing is that we've got the scale we need to continue to drive value within the current business around operations. We see tremendous upside in continuing to drive efficiencies across these assets. And in particular, as you know, the newest assets in the company are some recent, call it 12 to 18 months ago, Eagleford acquisitions and then the entry into the Permian. So we feel like we've got plenty of scale there to continue to drive value. However, we think this industry, through cycle, presents significant opportunity for our business strategy to grow through acquisition opportunistically. And so we also see significant scale potential beyond what we already have, in particular in the Eagleford and the Permian. And so I think that's what we're looking for. But those acquisitions are all going to stand on their own, and they're going to be – because we think the value is right because we think we're ready to do them and we see an ability to do what we do which is buy assets and make them better i think we would tell you we've got the scale we need today to drive significant value on our existing footprint okay that makes sense and then let me come back to uh you and a little bit and i know you're it's a nice steady growth

going forward, but are there any bottlenecks at this point? Takeaway, rail, permitting? Could you grow it faster if you wanted to, I guess is my question.

Hey Lloyd, I'll start. So we could grow it faster if we wanted. I think we've always thought about this asset as kind of a one rig asset, but the basin has really transformed over the last couple of years given rail, given kind of deep bottlenecking on the gas side of things. So I would say no constraints from an oil or gas midstream perspective.

Okay. That makes sense. Thank you.

Thanks a lot.

Is there a note? There are no further questions at this time. I would like to turn the floor back over to David Rock Charlie for closing comments.

Perfect thank you all again. We really appreciate again the opportunity every quarter to share how we're doing and hopefully the key takeaways all came through, which is. Base business high performing with a lot of momentum. We completely transformed the portfolio last year into a much more focused and scale business. And again, we think the company has a tremendous amount of catalysts, both on the existing assets, but also one of the things we really are highlighting this quarter is the opportunity in our minerals business in that segment. So we'll continue to keep you updated as we move forward. And again, thank you for the support.

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