Viper Energy Partners LP (NASDAQ:VNOM) Q4 2023 Earnings Call Transcript

Tim Rezvan: And then related to that and as you think longer term on Endeavor, if you bake in the legacy, the acquired EBITDA on GRP, leverage looks like a little bit over 1x and hard to see a lot of organic deleveraging in the low-70s oil world. So what are your thoughts on the balance sheet and where you are today and maybe where you’d want to be over the medium term to sort of be able to take down bigger opportunities as they come up?

Travis Stice: Yes. I think a path towards 1x no matter what the deal looks like is the right way to look at it. We are distributing 75% of free cash. So there’s a more limited amount of free cash to go to the balance sheet on a quarterly basis. But generally, minerals, we’ve proven that the mineral business can delever very quickly. It doesn’t mean we’re going to lever it up. By any means. But security of pure free cash flow, almost regardless of commodity price is a pretty unique way to think about leverage in an oil or commodity-based business.

Operator: I’m not showing any further questions in the queue. I’d like to now turn it back to Travis Stice for CEO for any closing remarks.

Travis Stice: Thank you again for everyone participating in today’s call. If you’ve got any questions, just please reach out using the information we provided.

Operator: Thank you for participating in today’s conference. This does conclude the program. You may now disconnect. Everyone, have a great day.