Travis D. Stice: Yes. Good question, Neil. The Deep Blue JV was a very big deal for us. It took a long time to pull together. We had built a significant amount of midstream infrastructure over the years and spent a lot of capital doing it. And, we felt it was an opportune time to monetize that in the hands of who we see as operational experts in Deep Blue and the Five Point team. I think they have already proven to have commercial success with third-parties where maybe if you’ll the Diamondback business card, you weren’t going have the same type of commercial success. I think that sector is certainly ripe for consolidation as well. And I think they’re the experts that can get that done. So, that’s kind of why we retained the 30% equity interest in the business.
We’re very confident that they’re going to be able to grow the business and generate a good return for our shareholders. Outside of the $500 million of proceeds we got in which is the big winner. There will be some impacts to our cost structure. I would say generally, LOE is going to be up about 8% to 10% versus prior as a company. And then we’ll have a lot less midstream CapEx as we don’t have very many operated midstream assets. And that’ll be kind of canceled out by slightly higher well costs $10 to $20 a foot, depending on the area, as we buy water from the JV. So, all-in-all, we sold the business for a much higher multiple than we trade. And then we’re excited to see what they can do in terms of creating value for the 30% that we’re retaining.
Neil Mehta: Thanks, team.
Travis D. Stice: Thanks, Neil.
Operator: Alright. Thank you. One moment for our next question. Our next question comes from the line of David Deckelbaum of TD Cowen. Your line is now open.
David Deckelbaum: Morning, Travis and Kaes team, and Danny. Thanks for taking my questions. Travis, I was curious if you could talk a little bit more about the remarks in the Shareholder Letter on being an acquirer and exploiter and just maybe putting in context sort of how robust you think that opportunity set is right now, just given the cycles in the business and some of the PE cycles that have gone through the Permian right now?
Travis D. Stice: Yes, David. And I appreciate you referencing the Shareholder Letter. I tried to address that head-on. I think just in a more macro sense, we’ll always do what’s right for our shareholders. I mean, we’ve got now over a decade of what I think is demonstrating doing the right thing for our shareholders. But, we remain laser focused on delivering on our business plan, and you’re right, we have built this Company through an acquirer and exposure strategy. But I think as investors are really starting to understand, we have such a high quality inventory right now, that the bar is pretty high for additional opportunities to add to our inventory that meets those the criteria that we laid out in our Shareholder Letter would sound industrial logics and being able or — logic and being able to compete for capital right away and then being accretive on those financial measures that are so important to all of this.
So, there has been a lot of private equity roll through. And I think, based on lack of our name on those, it just tells you where we view those assets relative to our inventory. Like I said, I’m really pleased with the quality of our inventory. And I think, we’re executing on that in a flawless manner.
David Deckelbaum: Appreciate that. And then, maybe just for Kaes is just, the DUC backlog is built, I guess, up to a 150 by the end of the year. I think you guys talked about low-single-digit organic oil growth for next year. One, I just wanted to confirm, I guess, if that oil growth is reflecting the benefit of the increased royalty interest through the VNOM acquisition or Viper acquisition rather or if that’s — how we should be thinking about that growth rate and then just in concert with the DUC backlog are — is it — should we think about that flexibility, especially in this pricing environment just based on frac crew availability, or is that really just like a capital allocation decision?
Daniel N. Wesson: Yes. I’ll hit the organic growth comment first. Certainly we excluding the Viper deal, we expect it to grow organically. And we expect to grow organically in 2024. I think, the Viper deal provides a little bit of a jump start here in Q4, but think the team’s expecting to grow off that number to steady state throughout the next year, just due to the quality of what we’ve got in front of us. And, on the DUC side we were kind of operating pretty close to the rigs on the completion crews and really needed some flexibility here and that the drilling team’s done a really good job this year getting ahead of plan, drilling more wells than expected sooner. With these large pads and large projects you really want to have the flexibility to be able to go somewhere if something bad happens and, that DUC backlog allows that.
So I think, 150 plus or minus 10 or 20 wells either way is a pretty good number for our run rate. And, we’ve kind of set the stage for a world where we run for the SimulFRAC crews consistently throughout the year, they each do about 80 wells a year. And, in our mind that’s kind of the most capital efficient development plan we can imagine here. So, that’s our backlog, just let Danny sleep a little better at night. And, allows for some flexibility heading into next year.
