Diamondback Energy, Inc. (NASDAQ:FANG) Q4 2023 Earnings Call Transcript

Leo Mariani: Okay. That’s helpful. And then just jumping back over to M&A, obviously you guys got the big prize and the Permian, and the market has clearly rewarded the Diamondback shareholders here. As you look at kind of the remaining landscape, do you think there’s anything out there left to do that’s kind of chunky that would be of interest to FANG? Or is it maybe just kind of more little stuff over the years to kind of tie everything together?

Kaes Van’t Hof: Yes. Listen, Leo, we’re on the sidelines here. We’re fully focused on getting this deal closed as soon as possible and we can assess the landscape when that happens. I mean I am confident that the landscape will look different whenever that time does come.

Leo Mariani: Okay. Thanks.

Travis Stice: Thanks, Leo.

Operator: Thank you. One moment for our next question. Our next question comes from Doug Leggate with Bank of America. Your line is now open.

John Abbott: My question is, does that have any impact on integration, planning, or does that go ahead anyway.

Kaes Van’t Hof: Hey, Doug, you have to speak up.

John Abbott: This is John Abbott on for Doug Leggate. Apologies I was on mute. Just one more, just one question going back to Paul’s question on the difference in CapEx between 2024 and 2025. That’s about $725 million. And then you talk about the $550 million in synergies. So when we think about that $725 million is there an addition on top of that, as were we sort of thinking to 2025? Just sort of trying to reconcile the two numbers?

Kaes Van’t Hof: Yes. I think the difference between the two numbers is really activity between the $550 million and $725 million, right? The combined business has less activity in 2025 versus 2024, which is helping, but we kind of see the $550 million as more of a longer-term run rate, John.

John Abbott: Appreciate it. And that’s really it at this point in time, but thank you very much for taking our questions.

Travis Stice: Thanks, John.

Operator: Thank you. I’m showing no further questions at this time. I would now like to turn it back to Travis Stice, CEO for closing remarks.

Travis Stice: Great. Thank you. I really appreciate everyone listening in this morning and asking questions. And if there’s any follow-up, just reach out to us and we’ll address them then. Thank you. And you all have a great day.

Operator: This concludes today’s conference call. Thank you for participating. You may now disconnect.