And so with that, I will turn the call open for questions.
Operator: Thank you. [Operator Instructions] We will go first to Tim Rezvan with KeyBanc.
Tim Rezvan: Thank you for taking my questions, folks. I wanted to start on the comments. You mentioned expanding your growth strategy into buying minerals in the Gulf Coast. The $15 million is relatively small relative to some acquisitions that your public peers have had made in the last couple of years. I was wondering, if you could expand a bit on this growth strategy. How big are you willing to go? And then if you could talk – you mentioned the Gulf Coast, they are non-producing, can you talk specifically where that is and your line of sight on production from that area?
Tom Carter: Thanks for the question, Tim. I will be – this is Tom. I will be glad to answer that as follows. We do – we acknowledge that $15 million is not a needle mover for Black Stone. And we do expect to continue those efforts and substantially expand upon that number maybe ten-fold. And with respect to the type of acquisitions and where those are, I don’t want to say too much because of competitive reasons. But suffice it to say that our goals here are to buy properties that are not already well overpriced like in the Permian so that our capital will have better running room and can be accretive to our production profile.
Tim Rezvan: Okay. So, it’s fair to think of this as maybe a third leg on the growth stool in addition to the Chalk and the Haynesville agreements?
Tom Carter: Well, I would tell you that typically speaking, we are expanding areas where we are already in place. So, it’s probably more expansive of things that we already own than adding new plays.
Tim Rezvan: Okay. I appreciate those details. And then I appreciate Evan’s comments about not redeeming the preferred. It would make sense of where prices are today. How are you thinking about that repurchase program? You intentionally put that in the release. And I am just trying to understand the difference between with that cash on hand you are repurchasing shares in weakness versus maybe maintaining – you seem to indicate you don’t want to maintain that $0.475 per unit if it’s over 100% of your cash flow. Just trying to think how you are thinking about uses of cash, given you have no debt between the repurchases and distributions in 2024.
Evan Kiefer: Yes, Tim, this is Evan. As we think about overall cash and kind of our debt balances as well, we don’t really like the idea of going below 1x coverage for a period of time and effectively having to borrow to support the distribution. That said, we also see value in our units over a long-term and see that there could be accretion to repurchasing those units at where we are at today at lower gas prices, especially compared to the $21 on the preferred. And so overall, we feel more comfortable using some of the revolver as it exists to be able to repurchase our common units as opposed to supporting a distribution level that would require coverage to be less than 1x.
Tim Rezvan: Okay. So, I guess we will just stay tuned and see if you start that program with repurchases.
Evan Kiefer: Yes, that’s correct. It’s something that with the current environment, we think it makes sense and something where we have the opportunity to utilize kind of throughout the year and expect more on that to come.
Tim Rezvan: Thanks. I appreciate the detail. I will hop back in the queue. Thank you.
Evan Kiefer: Thank you.
Operator: We will go next to Derrick Whitfield with Stifel.
Derrick Whitfield: Hi. Good morning all and congrats on the strong year-end.
Tom Carter: Good morning Derrick.
Derrick Whitfield: And my first question, I wanted to focus on your 2024 guidance. With the lower gas prices we are observing at present, how are you thinking about the conversion of the Aethon DUCs to production in your guidance, meaning are you expecting uniform cadence across the quarters or more second half weighted activity?
Tom Carter: Yes, Derrick, great question. So, overall, based off our conversations with Aethon and the existing DUCs, we do expect those to come online as they provided their – as you would expect with multi-pad completions, it becomes a little bit lumpy as multiple wells are going to and expected to come online at the same time. What that’s going to do is you will likely see some earlier on in the year, call it, the first quarter and second quarter and then a little bit more towards the end of the year based off the current expectations that they have provided to us.
Derrick Whitfield: So, lumpy, but relatively uniform across the year, is that a fair characterization?
Tom Carter: Yes.
Derrick Whitfield: Okay. And then shifting over to the competitive landscape, we have seen considerable M&A across the upstream sector over the last 2 years that only limited amounts of activity in the mineral subsector. With that said, what are your thoughts on the impact E&P consolidation could have on your business, namely Chesapeake, Southwestern, and if you are expecting to see greater consolidation within the minerals sector?
