Matador Resources Company - Earnings Call - Q4 2024

Executive Summary

• Q4 2024 delivered record production at 201,116 BOE/d and adjusted EBITDA of $640.9M; total revenues were $970.4M with diluted EPS of $1.71 and adjusted EPS of $1.83.
• The quarter modestly exceeded company guidance: total BOE/d was +2% vs midpoint, natural gas +5%, while oil was slightly below guidance (<1% below) as third-party midstream constraints in Lea County curtailed ~3,000 BOE/d but were largely resolved by 2/18/2025.
• 2025 guidance targets 202,000–208,000 BOE/d, 120,000–124,000 bbl/d oil, and 492–504 MMcf/d gas; San Mateo midstream EBITDA guided to $285M, up 13% YoY; quarterly dividend raised 25% to $0.3125 (annual $1.25).
• Management emphasized year-over-year growth, integration synergies from Ameredev (Opex lowered by ~$2M/month; >$150M expected D&C synergies over five years), and operational innovations (U-Turn wells, simul/trimul-frac) supporting lower per-foot costs into 2025.
• Near-term catalysts: dividend hike and explicit 2025 production range, resolution of midstream constraints, and Q2’25 startup of the Marlan Plant expansion (additional 200 MMcf/d).

What Went Well and What Went Wrong

What Went Well

• Record quarterly production: 201,116 BOE/d (118,440 bbl/d oil; 496.1 MMcf/d gas) with adjusted EBITDA $640.9M and adjusted free cash flow $415.5M.
• Guidance beat: total BOE/d +2% vs guidance midpoint and natural gas +5%, driven by stronger Rustler Breaks/Ranger well performance and higher non-operated volumes; Ameredev contributed 23,200 BOE/d, above initial expectations.
• Strategic dividend increase to $0.3125/quarter and management confidence: “raising the dividend—and senior management buying the stock… 30 ‘buys’ since 2021 and no ‘sells’”.

What Went Wrong

• Oil volumes were slightly below guidance (<1% below), in part due to third-party midstream constraints (~3,000 BOE/d curtailed) in Antelope Ridge; constraints largely resolved by 2/18/25.
• G&A rose 22% sequentially to $2.22/BOE due to cash-settled stock awards remeasured as share price increased 14% QoQ (from $49.42 to $56.26).
• Q4 D/C/E capex ($325.5M) and midstream capex ($65.2M) were higher than expected, reflecting facility upgrades on Ameredev and accelerated Marlan expansion spend; Q1’25 D/C/E expected to rise to $340–$400M.

Transcript

Operator (participant)

Good morning ladies and gentlemen. Welcome to the Q4 and Full Year 2024 Matador Resources Company Earnings Conference Call. My name is Lisa and I'll be serving as the operator for today. At this time, all participants are in a listen-only mode. We will facilitate a question and answer session at the end of the Company's remarks. As a reminder, this conference is being recorded for replay purposes and the replay will be available on the Company's website for 1 year, as discussed in the Company's earnings press release issued yesterday. I will now turn the call over to Mr. Mac Schmidt, Senior Vice President of Investor Relations for Matador. Mr. Schmidt, you may proceed.

Mac Schmitz (VP of Investor Relations)

Thank you, Lisa. Good morning everyone and thank you for joining us for Matador's Q4 and Full Year 2024 Earnings Conference Call. Some of the presenters today will reference certain non-GAAP financial measures regularly used by Matador Resources in measuring the Company's financial performance. Reconciliations of such non-GAAP financial measures with comparable financial measures calculated in accordance with GAAP are contained at the end of the Company's earnings press release. As a reminder, certain statements included in this morning's presentation may be forward-looking and reflect the Company's current expectations or forecasts of future events. Based on the information that is now available, actual results and future events could differ materially from those anticipated in such statements.

Additional information concerning factors that could cause actual results to differ materially is contained in the Company's earnings release and its most recent annual report on Form 10-K and any subsequent quarterly reports on Form 10-Q. In addition to our earnings press release that we issued yesterday, I would like to remind everyone that you can find a slide presentation in connection with the Q4 and full year 2024 earnings release under our investor relations tab on our corporate website, and with that, I would now like to turn the call over to Mr. Joe Foran, our Founder, Chairman and CEO.

Joseph Wm. Foran (Chairman and CEO)

Thank you, Mac, and thank you all for listening in today. I would like to begin by thanking everybody for the thought and effort they put into their notes. But I'd also like to start out by re-emphasizing what we consider most important when we take over a property like the Ameredev. It's a $2 billion deal. Obviously it's going to have a big impact. So how do we treat that? And we really treat it like we do all of our other properties. For past 40 years, as I've done this job as CEO, we put an emphasis on year to year growth. We think that's the most important number you can look at other statistics, and I would say they're all important, but for us the most important is year over year growth.

At the same time, when we buy property, the first thing we try to do is look for the efficiency gains that we can, that we can do. Also a development plan that we can do. From there. We work to incorporate it and assess what you can do. The Ameredev properties were special because it's such great quality rock that gives us a lot choice. You know, most times when people sell things it's not their best rock. But in Ameredev case it was really good rock. They'd done a good job operating it and we wanted to find those. What else could we do? And we could have easily. We put a rig out there, our first rig went out there nine days after acquiring the property.

So we could have put more rigs out there and easily increased the production in a sequential basis. But we thought it was more important. To set it up for long term by the year-over-year growth standard. And in that regard, for 40 years in buying properties for Matador, in those 40 years, we've grown a little over 20% a year for 40 years. And that's kind of the standard we have. And we feel the Ameredev properties will meet that standard, particularly as we organize a drilling plan. How exactly we want to develop it between the development wells and the step out wells. So we thought a little time on that. Should be done. Now we will have.

We have. One of the ways of the efficiency is our batch drilling that we've done there. And that has saved us an estimated $30-50 million by drilling them in the batch mode and then bringing them on. But it does have an effect on the sequential growth, that is. Which is essentially a timing problem. It's not a reserve problem, it's a timing deal. And in the Q1 of last year, I mean Q4 of last year, in the first half we only put 2 wells online because we had a big group coming up behind it. And so in the next 45 days or so we'll probably bring on 30 wells or more. And you can see what I mean. It's a timing problem.

If we had closed and taken over Ameredev two weeks earlier, we wouldn't have this discussion of whether we have a sequential problem or a miss as some of you all described it. And so we ask that if you're uncertain about our timing on things, please give us a call. But the year-over-year matters because I can report that we expect to have growth approximately 30% for the Q1 of this year compared to the Q1 last year, Q2 is going to be about the same, 29% or 30%. Q3, you know, again 20% or more. And by the time we finish the drilling program in the Q4, we think that will be comparable numbers as well.

So we're very excited by this. We're not seeing any disappointments, but want you to know that I don't want to tell you how to do your analysis. It's certainly understandable why some people want to do sequential. But in this case I think you have to look at the year over year numbers. And when you look at the total reserve picture. For us. Year-over-year from the Q4 of 2024 to the, you know. From the Q4 of 2023 to the Q4 of 2024, you see that we've grown our production from like 4.6 million BOEs to over 6 billion BOEs. And.

That's what I think matters. Has our shareholders increase their assets? Yeah, and that's why we felt so comfortable raising our dividend. Could we have done more? Yeah, I think that we could have easily done some more. But it's probably more prudent given the. Volatility of commodity prices to wait until the fall when we've typically given a raise but wanted to express to you our confidence. And second is to note the insider buying that has occurred. You had over 30 transactions by the senior management, that's SVPs and higher VPs.

And so you have that. But even more important statistic to us, and comforting to me personally, is that over 95% of the staff are participating in the employee stock purchase plan. So everybody here, they've been here at any time at all, has become a shareholder and an owner. And if you've ever attended our annual meetings, you'd meet many people. A good percentage of them are shareholders. They've been shareholders for 40 years or more going back to when we had the partnerships and the like. So there's great confidence and we thought it was most prudent not to rush in with trying to drill wells and boost production. But it was every bit important and more so to look at containing the cost. Making sure.

Of what we wanted to do next. So saving $30-50 million should not be disregarded, but taking into account of whether you want to emphasize year-over-year growth or quarter-to-quarter growth and look at the timing when you're bringing on. Well, so if two weeks. Is the difference. I would go with the year-over-year growth that I mentioned is going to be 20%-30%. So with that, I'd like to open it up to questions, Mac, but give you an idea of how we evaluate it and why. We've emphasized year-over-year growth, but we still think it's important to look at sequential and that's why we provide you those numbers itself. But. Our personal view is that year-over-year number is the most important.

Mac Schmitz (VP of Investor Relations)

Lisa, we're ready to jump into the queue and ready for the first question.

Operator (participant)

Thank you. If you would like to ask a question, please press * 11 on your telephone. You will then hear an automated message advising your hand is raised. If you would like to remove yourself from the queue, please press * 11 again. We also ask that you wait for your name and company to be announced before you proceed with the question. Ladies and gentlemen, due to time restraints, we ask that you please limit yourself to one question. One moment while we compile the Q and A roster. Our first question for today will be coming from Neal Dingmann of Truist Securities. Your line is open.

Neal Dingmann (Managing Director for Energy Research)

Thanks. Morning, Joe and team. And Joe, I just wanted to say before I ask my question, I thought you all did a really nice job this time on the slides of really showing the capital efficiencies and other upside that you have, such as the midstream. So I guess that, you know, that part takes me to my first question, and my first question I'd like to focus on the midstream specifically. You know, you all obviously have one of the larger now Permian infrastructure systems. I think you're talking about nearly $300 million in EBITDA alone. And I'm just wondering based on this, should we assume that now that system is largely developed given the a bit lower CapEx of $120-180 million this year.

And then secondly, are there opportunities to, I don't know, maybe bring in a partner or do something to further demonstrate and maybe monetize the value of that system?

Joseph Wm. Foran (Chairman and CEO)

Neal, that's really a good question. That's something we talk about nearly everybody every day. Some of those questions, and I'd simply say is that as long as we're active out there in that basin. We're going to be looking to extend it because the reason we got into it in the first place is going back to when we were going public was that there was real flow assurance problems and we didn't want to go public and immediately run into flow assurance problem. So that's where we started. Gregg Krug has been our leader in the company and has done a marvelous job. Our first year of operations we had EBITDA of $30 million. This year we have $300 million. So he's made not only the.

Reservoir engineers comfortable by having that flow assurance and the cash flow. And our CFO is happy that they know that we're going to have the cash flow, but he's also created a very profitable business and given us some good options going forth. So it's hard to say because it's, you know, we still feel early years and we're expanding our areas of interest, just like with the Ameredev over to that southeast corner of southeastern New Mexico. But we're looking at other opportunities. It's just a great area. I've worked it now 40 years to keep expanding, but to do it in a conservative way.

Gregg Krug (EVP of Marketing and Midstream Strategy)

Yes, Neal, this is Gregg Krug. I was going to kind of. Comment a little bit. As far as, you know, we're going to do, we're going to be looking at whatever enhances our flow assurance out there for both Matador and our third party customers. I think those are the projects that we're going to be looking at. You know, and Joe alluded to the Ameredev piece. You know, we actually. Along with that acquisition, we have 180 miles of pipeline that came with that, that's not actually. Part of San Mateo. So. We're always looking for those opportunities to actually make the. Footprint of basically where our acreage positions are at. Those are the expansion type of projects we're looking for.

Operator (participant)

Thank you. One moment for the next question.

Joseph Wm. Foran (Chairman and CEO)

Thank you, Neal.

Operator (participant)

Our next question will be coming from the line of Zach Parham of JPMorgan. Your line is open.

Zach Parham (Executive Director, Equity Research)

Thanks for taking my question. Just wanted to ask, on your D&C. Cost guide, you took it down to $880 per foot. That's down 3% year-over-year. And your 2024 D&C costs came in. Quite a bit below the initial guidance. Could you just give us a little color on where your leading edge D&C. Costs are today and maybe talk about. Your ability to continue to drive those. D&C costs lower going forward?

Chris Calvert (EVP of Operations)

Hey, Zach, this is Chris Calvert. I think first off, thank you for the question. I think we'd refer, excuse me, refer to slide 3 in the slide deck to kind of highlight the data that you're speaking to. You know, I think it's safe to say when your full year 2025 D&C per foot is below your full year 2024 D&C per foot, we're kind of at a leading edge. I think from an efficiency standpoint, we've made great strides in optimizing Simul-Frac, increasing the use of Trimul-Frac, reducing days on well, partnerships with vendors, strong partnerships with vendors to make sure that we're in win win contracts from both the drilling and the completion side. So I think, you know, depending what you consider leading edge, I would say full year 2025, 3% below full year 2024.

I think that is a leading edge and I think that is done via the competence and the great job that the operations team here has done. And so I think looking into 2025, if you noticed in the release, we increased our Trimul-Frac for our Qs from 16 wells to 40. And so I think when you look at the cost savings associated with that, that all contributes to that leading edge D&C cost per foot going down. And so I think it is something we're excited about. We should be proud of that. I think we are a leading edge innovator in operational efficiencies. I think that flows through to one of the highest margin operators in the Delaware Basin. I think that's something that we're also extremely proud of on slide K. And so I think we do appreciate you noticing that.

It's something that we work hard to continue to push forward on.

Operator (participant)

Thank you. One moment for the next question. Our next question is coming from the line of Scott Hanold of RBC Capital Markets. Your line is open.

Scott Hanold (Managing Director of Energy Research)

Thanks. Hey Joe, you gave a sort of good overview of why you see some of the ebbs and flows in production and the focus on sort of year over year. Could you address the capital side too? And I think. When you look at. Q4 came in a little bit higher and I think Q1 set up a little bit higher. And so when you look at capital, how do you think that's going to ebb and flow? And what are some of the puts and takes within the range of the roughly 1.4%-1.7% that you all have for 2025?

Joseph Wm. Foran (Chairman and CEO)

Well, good question. And breaking that down. You know, I would say this is when we take over a property, as we did here, the first thing we look at where can we deploy some capital that would in the short term that would improve the operating expenses, for example, over the long term. So the savings that we're having in reducing the operating expenses are going to pay off that capital in pretty short order. That's, you know, as I said, I don't want to take away from the way people may use sequential capital comparisons. We just think that year-over-year is a more important number, and illustrating it's hard to give you.

You know, on the capital expenditures and say, well, this is really going to cut expenses ahead of time. You know, we don't do that until this call. But we used a lot of that CapEx, early CapEx to improve the operating expenses. And Glenn, you might give a little more detail on that so that it saves us more over time to do it up front rather than to be in the property for 90 days and then undertake it. That's right.

Glenn Stetson (EVP of Production)

Scott, this is Glenn. Glenn Stetson. I would just say, yeah, Echo, what Joe said is we got on the Ameredev properties and immediately got to work and accelerated the completions of those 11 wells, the Firethorn and Pimento wells, and along with that we did some facility upgrades to accommodate that new production and also to. Bring the facilities up to Matador standards. And in doing so we were able to reduce our OpEx, as Joe pointed out, to the tune of $2 million a month, and so those savings are significant.

Tom Elsener (EVP of Reservoir Engineering)

Realize them even quicker than we had anticipated. One anecdote that plays into both the CapEx side and the operating side is that on those 11 wells we recycled over 1 point or about 1.2 million barrels of produced water for the fracturing operations on those 11 wells. I think synergies across the board that resulted in a really nice quarter, well.

Joseph Wm. Foran (Chairman and CEO)

Also, I want to shout out to Reece and his group for the very professional way they operate those properties when they had them up for sale and then afterwards as we closed the deal, as they were very professional, very cooperative and. You know, I would say they didn't, they maintained the high level of. Equipment and operations and they didn't have a short-term approach, so shout out to Reece and we look forward to having the chance to work with him again.

Operator (participant)

Thank you. One moment for the next question. Our next question is coming from the line of Tim Rezvan of KeyBanc. Your line is open.

Tim Rezvan (Managing Director, Oil & Gas Equity Research)

Good morning, folks, and thanks for taking my question. I wanted to ask what drove the decision to kind of put a bigger spotlight on the Cotton Valley assets. Are you seeing kind of inbound inquiries on that? Because it doesn't seem to really be a need to sort of sell that now with leverage at one times and coming down pretty steadily. So should we think about that as you hanging a shingle like a for sale sign on that Cotton Valley asset? Just any color would be helpful.

Joseph Wm. Foran (Chairman and CEO)

Yeah, well, thank you. The Cotton Valley assets, we've had them a long time. When we did the deal with Chesapeake years ago, we only sold them the Haynesville formation down there and we reserved all the uphole rights which these properties are. We had been drilling Cotton Valley wells to that point and so we're very experienced in that. But. You know, when we went out to New Mexico.

It was HBP by that deeper production. So there was no urgency. And shortly after that sale, gas prices declined and it was better to be in oil primarily than the gas. And so it's all HBP. So there wasn't that hurry. And you were developing. At that time people were drilling the vertical wells. But now there has been horizontal drilling in that Cotton Valley that has yielded wells that are in the order of five billion cubic feet of gas, which if you have stable prices, you can make money. But that's the second key. The ups and downs of gas prices has discouraged that while you've had much better commodity prices with the oil out there in New Mexico. So it's one of economics. But now that you have, gas seems to be rallying.

You have these data centers, you have the liquids that can be taken out. It's starting to be more attractive. But we are not in any way trying to sell them. That's not the reason. It just shows you that we have another card to play at the appropriate time. We have also a very high net revenue interest because when we did the deal with Chesapeake, we reserved all the overrides that had been earned or acquired. So. It's a prime, we see it as a prime property. But let me turn it over to Ned or Tom. How you all feel about it, who plan our drilling program.

Tom Elsener (EVP of Reservoir Engineering)

Sure, Tim, this is Tom Elsener, our EVP for reservoir engineering. We feel very confident in the Cotton Valley and as Joe mentioned, we had drilled a well over about 15 years. ago and I'd actually give Joe six. Bcf gas EUR on that one-mile well. I know today our operations and completions teams would go in there and be capable of drilling a two-mile well or two-and-a-half or even further perhaps. I know they would significantly increase the proppant concentrations and the frac fluids and the stage intensities and improve the targeting. And all different things we've learned over the last 15 years, I think, would.

Go into significantly higher gas EURs than that. I think we're very proud of it. There's a lot of vertical production in that area, but there's other horizontal wells also. And I agree with Joe, it's another. Card to play if we wanted to. At some point several hundred feet of pay over there in the Cotton Valley. And all the gas infrastructure from the Haynesville is already in place. So I think it's something that we. Like to have in our toolbox.

Operator (participant)

Thank you. And our last call for today will be coming from Kevin MacCurdy of Pickering Energy. Your line is open.

Kevin MacCurdy (Managing Director of PEP Research)

Hey, good morning, Joe. I wanted to ask your thoughts on. Uses of cash here. You forecast around $1 billion free cash flow in 2025, and you have a lot of unlocked value in the midstream. As your deck shows, your leverage is pretty low. Are there other considerations for use of? Cash flow above the dividend?

Joseph Wm. Foran (Chairman and CEO)

That's a great question, Kevin. And you know that. There's a lot of ways to answer that. There's a lot of opportunities. And when we get around a table like we are now and guys talk about, well, I kind of feel this and I think we can do that, it's really exciting. Because there are a lot of opportunities here. And we talk about profitable growth and measured pace. So we don't want to try to expand too fast or too slow. It's a Goldilocks type of arrangement. And we look at the ideas that we have. We have 10 to 15 years of inventory. We have a balance sheet that even after doing a $2 billion deal, it's the strongest financial position we've been in.

We have over a $3 billion line of credit with our banks of which we've only committed to, you know, $2.5 billion. And so there's plenty of dry powder there. We don't want to try to. And that's why we say instead of trying to grow x% a year, that's why we say profitable growth at a measured pace. So it depends on all the considerations. And. But we're, you know, we've got all these opportunities in New Mexico. They're growing with the drill bit and we're keeping pace with nine rigs running on the drill bit that earning a 50% rate of return. We have these opportunities on the midstream, which is a fee based business instead of a commodity based business. It gives a little more stability. To our future earnings outlook. We have Louisiana.

You know that we just don't want to get greedy and don't want to go too fast, but don't want to go too slow. So we're. The efficiency gains that we're getting are leading to higher returns. You know, just drilling one vertical. These Horseshoe wells are an example of the efficiency that we're doing. Lateral length has grown to where we're over. We're now doing over 10,000 ft per well on the completions, the EURs are better. This rock that we acquired from both Advance and Ameredev is leading to. 10% better recoveries. So, I mean, it's a multitude of opportunities and trying to manage it. To.

Say it's kind of like a football coach. He's got a really good running back and he's got a really good passing quarterback. So does he call more plays for the running back or the passer or, you know, a double reverse to the wide receiver? I don't know, but we all discuss it. And again, the fact that we are all shareholders, and particularly among management that we're steadily buying should give you an idea that we're resolving that internally in a way that's best for the company and best for the shareholders, that we're all stakeholders and really excited by the opportunities. But we also know that you can suddenly have things like. Covid or. Depression. Gas prices have been zero at Waha, where we've had to pay money to take our gas. So you want to be careful on that. There's a lot of.

Matters to take into consideration, but we think we have. The staff has matured together, we've all grown up together. Our discussions are lively on what we want to do with this extra money. But we all agree, and it's a corny expression, I admit, proper growth at a measured pace. But it seems to fit us that if we can keep up for 40 years. I've been in business. I started out with $270,000, and now we have $11 billion in assets, and that's just growing 20% a year for 40 years. And we're more of a tortoise than a hare, maybe. But we went public back in 2012. At $12 a share.

Today we're approaching $60. It's growth over a very turbulent time, and we're looking forward to when it's a little less turbulent. We're also ready because we want to be ready with lots of dry powder, because we've made. More progress in difficult times when others are sidelined by the opportunities that come up. So this is a room full of people that. You know, our, you know, our owners. And it's measured on what is going to improve the stock price. And really grateful to those shareholders that have been in here since 1983 when we got started.

And they keep coming up with good ideas. And I look across there, Ned and his group of geologists, they come in with some good looking ideas. And Tom's team, he leads the teams in these various areas. They're always thinking of things. And the land group, you know, John and them, this brick by brick approach has generated a lot of opportunities and helped get us into areas that we didn't have. And so I have to tell you, we got a lot of work to do. But it's also work that we think will be rewarding to the other shareholders and to us. And I like our chances, I guess is where I want to say. And everybody's looking for capital efficiencies.

You know, I don't want to be silly, but Mac generally brings donuts for our prep session prior to this call, and I can tell he's trying to be more capital efficient because there's not as many as there was. In the early days. So we're going to try to get him. But the dividend, and let me just take a moment on the dividend, is that we like this steadily increasing dividend over time. And you can see we started out with $0.10 and now we're at $1.25. We would have a stronger dividend growth if things were a little less turbulent, and we do not see ourselves buying back stock. We think that favors the short-termers and not the people been in a while.

But we like it. We want to be known as a company that year after year increases its dividend and now. It has moved from $0.10 to 1.25. And we have many, probably more individual shareholders than most companies do and the individuals like it and they come to our annual meeting and express that view. And we invite all of you to attend our annual meeting and. You know and hear what they have to say.

And we'd like you all coming to visit. And once you know everybody on the call, if y'all come see us, we'll have lunch or breakfast and you'll get to meet the staff. We'll take all the questions that you've got. So with that Brian Hermann or Brian Willey as two of our leaders, if you all know anything else we should say, please jump in now.

Bryan Erman (Co-President, Chief Legal Officer and Head of M&A)

Joe, this is Bryan. I think all very well said. We're excited about 2025 and to be approaching $1 billion in cash flow is a great accomplishment. Joe mentioned at the beginning about growth and focused on growth. And that's true from a production standpoint and that's true from a free cash flow perspective. So we're excited to be able to do that and be in a position where we can return value to our, to our shareholders.

Joseph Wm. Foran (Chairman and CEO)

Bryan Hermann

No, I think you guys said it well. I think we're really excited about the. Results for 2024 and even more excited about the opportunities that are in front of us for 2025. Science generally. Really, really excited about what we have in front of us.

Right. And Rob, as our Chief Accounting Officer and kind of a guy who wears many other hats around here, has done a real good job of finding research projects and managing the tax position to make contributions that don't show up in these kind of calls. But Rob has kept us on pace. And the audit, I'm proud of the audit. Tell them how once again we had no questions.

Rob Macalik (EVP)

That's right. Yeah. No, I think for the last 10 years we've been audited by KPMG. Really proud of the. Of my team. What we've been able to do to really provide a very high quality financial close and definitely feel audited by the KPMG team and are really excited about looking forward to 2025 and as Bryan said, all the opportunities there and continue to look for ways to chip away at the cash tax position any way we can.

Joseph Wm. Foran (Chairman and CEO)

Follow the rules. Always. Always. But anyway, those are my closing remarks. But again, if you have questions haven't been answered, give a call to Mac. We'll get some set up and have a visit. But the land guys deserve a lot of credit. Those guys, all the land men and women are out there trying to make deals all the time and really proud of the way they building relationships and trying to make trades that please both sides.

Mac Schmitz (VP of Investor Relations)

Back to you, Lisa.

Operator (participant)

Thank you, ladies and gentlemen. Thank you for your participation today. This concludes today's program. You may all disconnect.