Austen Gilfillian: Yes. I want to say it’s timing. I mean the general profile still looks similar to what we expected coming into the year. I think a little bit of activity was brought forward and Q1 outperformed a bit. And kind of normalizing for the divestiture, maybe Q2 looks a little bit better than expected. I mean sitting here at May 1, trying to make assumption on what’s going to happen in the back half of the year with the third-party side, like that’s just not somewhere we want to get super aggressive. But I mean, in a general sense, I would say activity has been brought forward a little bit relative to where it was two months ago. And the current backlog of activity wells is really strong. So I mean it’s going to support some healthy growth throughout the year. We’ll just kind of see where the exact numbers shake out as the year plays out.
Kaes Van’t Hof: Yes. I would just say, Derrick, non-op, we always are pretty conservative at the beginning of the year. It seems like there’s been some non-op drop-forward in the model versus original expectations. And the same piece is kind of right on line within a month of our expectations.
Derrick Whitfield: Terrific. And with the understanding that your revenues are dominated by oil and we’re operating in a depressed oil gas price environment based on pipeline maintenance and tight egress conditions in general, do your leases protect you against negative gas realizations experienced with third parties?
Austen Gilfillian: Yes. So we won’t have negative realizations passed back to us. And historically, if you just look at like our realizations relative to Diamondback, for example, typically better across the three products as a lot of our leases have cost-free royalties baked in there, and there are some of those operating expenses that kind of can’t be passed back to the lease owners. So I mean it’s certainly not good on the gas side, but we wouldn’t expect negative realizations for Viper.
Kaes Van’t Hof: It’s good to be the mineral owner, Derrick.
Derrick Whitfield: Terrific. Great update, guys. Thank you.
Kaes Van’t Hof: Thanks Derrick.
Operator: Thank you. Our next question or comment comes from the line of Leo Mariani from ROTH MKM. Mr. Mariana, your line is now open.
Leo Mariani: I just wanted to follow up quickly on this cash G&A guidance here. You kind of bumped it up versus where you guys were in kind of mid- to late February when you came out with it originally. Were some of these just public sort of new kind of organizational structure costs just – that just come in a little higher than expected as you guys kind of worked through the accounting? Just curious as to kind of why it was tweaked only kind of a handful of months later.
Kaes Van’t Hof: Yes. I mean we’re just – we’re moving into this public C-Corp world, and there’s been more expenses that are going to Viper today. At the end of the day, it’s a real number on a percentage basis. But $0.20 on a business doing $200 million a quarter of cash flow is minimal. We just want to get it right the allocation between parent and sub, particularly as the sub continues to grow and get investor attention and likely continue to stand on its own two feet.
Leo Mariani: Okay. Appreciate that. And then just, obviously, I know you guys have to get the Endeavor deal closed. And it sounds like, obviously, a large transaction could be coming here for Viper. Maybe it’s early next year or I guess we’ll wait on the timing. But how do you think about kind of potential funding for that? You talked about kind of 1x leverage really being a sweet spot for Viper. Would you kind of go above that temporarily to do kind of a major drop-down from the Endeavor thing combination? And if so, would you kind of prioritize maybe more debt pay down? Just can you kind of talk us through kind of how level how you’re thinking about kind of the funding part and kind of the limits on leverage?
Kaes Van’t Hof: Yes. I think in a world where we see parent and sub consolidated, levering up the sub at the expense of the parent doesn’t make a ton sense. We look at leverage. Consolidated, certainly, there’s going to be a lot of cash flow that comes with what our assets does end up in – if it does end up at Viper’s end. I just think we’re going to be responsible stewards of capital, both our upstream business and our mineral business.
Leo Mariani: Okay, thanks.
Kaes Van’t Hof: Thank you, Leo.
Operator: Thank you. I’m showing no additional questions in the queue at this time. I’d like to turn the conference back over to Viper’s CEO, Mr. Travis Stice.
Travis Stice: Thank you again to everyone participating in today’s call. If you have any questions, please contact us using the information provided.
Operator: Ladies and gentlemen, thank you for participating in today’s conference. This concludes the program. You may now disconnect. Everyone, have a wonderful day.
