Good morning, ladies and gentlemen. Welcome to the fourth quarter and full year 2020 Matador Resources Company earnings conference call. My name is Liz, 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 through March 31st, 2021, as discussed in the company's earnings press release issued yesterday. I will now turn the call over to Mr. Mac Schmitz, Capital Markets Coordinator for Matador. Mr. Schmitz, you may proceed. Thank you, Liz. Good morning, everyone, and thank you for joining us for Matador's fourth quarter and full year 2020 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 the 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 recently quarterly report on Form 10-Q. Finally, in addition to our earnings press release, I would like to remind everyone that you can find a slide presentation in connection with the fourth quarter and full year 2020 earnings release under the investor relations tab on our website. I would now like to turn the call over to Mr. Joseph Foran, our Chairman and CEO. Joe? Thank you, Mac, very much, and thank you for joining us for Matador's fourth quarter and full year earnings conference call. In addition to our earnings press release, I would like to remind everyone that you can find a slide presentation in connection with the fourth quarter and full year earnings release under the investor relations tab on our website. We appreciate you participating in today's call, and we appreciate your time and interest in Matador very much. Similar to last quarter, we've prepared that set of slides and to give you background and color to what we're going to present today. I'm going to turn the call back over to the operator to take your questions in a moment, but there are three or four points that I wanted to particularly make. First is I wanted to commend our staff and board for the way they've worked together and achieved these results. Everybody on each of the teams has done their part, and it's been a total effort with everybody helping out in all the different ways that they can. Much of our success is related to performances and well results that have been better than expected. This applies particularly to the wells that we've been drilling, the operational results, and commodity prices. I would add that the experiences of everybody working together this year to overcome the problems of COVID and prices and the like has led to improvements in our processes, improvements in our results in the field, the innovations, and that the asset groups that we've had have done not only what we've expected but found new ways to add value to Matador. San Mateo has also been an important part of this whole effort, reaching new highs this quarter in EBITDA and in their contributions to Matador. For example, having the pipes ready as we turned on wells that helps both environment, it keeps trucks off the road, and most important is that during the ice storm, we were still sending product down the pipelines to be handled and it saves us a lot of money on trucking and other expenses. We appreciate the extra effort there. For me, what has been one of the most exciting developments is that Matador has gotten to a position where it can comfortably issue a dividend policy and start paying back to our shareholders, many of whom have been with Matador since inception of Matador. This was made possible by the free cash flow that we generated in the fourth quarter and the debt reduction that we did with that money. We've done a GAAP where we've achieved debt reduction, a dividend policy, reinstated the pay cuts that people took during the COVID and price crises, yet kept our promising outlook and the development of these A+ locations, which have been the key to our success in the past couple of years. An outlook that we think has us on the right track for further debt reductions, a strong dividend policy, and of course, strong operating results with these A+ locations. With that, let me open the floor for questions. Thank you. Ladies and gentlemen, if you'd like to ask a question at this time, please press the star, then the number one key on your touch-tone telephone. To withdraw your question, press the pound key. Due to time constraints, we ask that you please limit yourself to one question and one follow-up. Again, we ask that you please limit yourself to one question and a follow-up until all have had a chance to ask a question, after which we would welcome additional questions from you. First question is from Neal Dingmann with Truist Securities. Your line is now open. Morning, all. Morning, Joe and team. Joe, could you or David talk about now with the fourth rig added, maybe just give us a bit of color now how you think about sort of maintenance capital, starting in that March period going forward and maybe how that pertains to how you're viewing free cash flow for the year? Yeah. Good morning, Neal. This is David. Thank you for starting with that question. I won the pool. I appreciate that. Neal, in all seriousness, I hope that we did a good job of laying out our decision to pick up the rig in March. As you know, we began the year running three rigs and had every intention of staying with the three rigs there throughout 2021. About a month ago, after the inauguration of President Biden, as you're aware, the Department of the Interior came out with an order that limited the approval of the local offices to grant permits or sundries or other approvals that are necessary for the development of federal oil and gas leases. It's a pause. It's a 60-day pause. The good news was it didn't limit any of the activities on existing federal leases, and we've continued our operations there without any hiccups since that time. I think we remain optimistic that the BLM will return to more normal activity after this pause is over. The fact is, we just can't be sure. I think as most of our investors know, our properties at the Stateline in the Stebbins area and the Rodney Robinson, these are important properties to Matador. They have many of the A+ locations on them that Joe just referred to. We felt like that it was important for us to ensure that we preserve the value in those properties for the company and its shareholders. As a result, we considered and began talking about picking up a fourth rig. It's not a decision that we took lightly. We thought about it very carefully. We wanted to be sure that in picking up the fourth rig, that we could continue to deliver free cash flow in 2021, and we believe we can. We wanted to be sure that we could pay the dividend that Joe just mentioned, and we can. We wanted to be sure that we'd still be able to pay down debt during the course of the year, and we could, and we'll be able to do that. We've already paid down some just this January, and we'll continue to pay down debt as we go through the year. I think as we've been consistently saying all along is we also wouldn't have done it if we didn't feel like that we could pay for it and fund it without having to borrow additional money. The properties are important to us. They carry a lot of value. They also carry the ability, not only for Matador, they're also valuable to San Mateo. They enable us to earn incentives from FivePoint, which is pretty unique. We think this year that we may earn upwards of $35 million in incentives, which is just additional cash flow that comes from our partner in San Mateo. The wells are going to all have very strong returns. Look, I think for all those reasons, having considered it, we felt like that it was the right thing for Matador to do, and so as a result, we have looked to contract another rig coming in March. It's going to be on a short-term contract. If things change, we have a lot of optionality with how we'll go forward with our program as we always do at Matador. For now, I think we feel like we've made the right decision. Yeah, Neal. Go ahead. Joe, on what David was saying there in regards to the rigs, we've got this rig contracted for three months. We have, as we always do. First off, the rig we've got coming is one of our rigs that we had running last year. Patterson has been a great partner for us. The relationship continues to be strong. This is a rig that we know that's coming back to us. It's on a short-term contract. We've got it for about three months. We'll have another chance in June to make another decision if we want to keep that rig, we can. Again, in August, we'll have yet another option on a rig. We could go from four rigs to three rigs to two rigs by the end of August if we choose to do that, and we'll make that decision as we go along based on the conditions that are present at that time. Matt and David, I just have one follow-up. It sounds like you are confident in still the free cash flow with the program. I'm just wondering how much, David, for you, are you assuming from San Mateo? You already had $21 million in free cash flow last quarter. It seems to me as you all continue to more than fully ramp there and you have more third party coming on. I'm just wondering in your expectations, how much are you assuming from the free cash flow side from San Mateo? Thank you, guys. I think, again, as we've talked for a while, Neal, the expectation for cash flow from free cash Matador share from San Mateo is probably going to be about $35 million this year. You take that and the incentives, and that's about $70 million of cash that's attributable to San Mateo as a business. San Mateo, 100% will probably generate about $70 million in free cash flow. Our part of that will be about $35 million, and then we expect to pick up the other $35 million in incentives from FivePoint, of which $15 million of it is earned and I expect will be paid, which is in the next week or two. It usually comes in early March. I think that's all something that we can certainly count on. I think the incentives, it's important for me to point out again that the incentives come straight from FivePoint. They don't come from San Mateo, so it doesn't impact San Mateo's cash flow or revenues at all. That is all money that's paid directly from FivePoint, and that's just another source of cash for the company. Very good. Thank you much for the details. Yes, sir. Thanks, Neal. Next question comes from Michael Scialla with Stifel. Your line is now open. Good morning, everybody. Maybe just to follow on to the conversation on the fourth rig. What would you need to see out of the administration in order to let that fourth rig go in June when the contract comes up? I think, Mike, that you would want to see a certainty of a sort of a return to normalcy, if you will. We'd like to see them go back to issuing permits, issuing extensions to existing permits, granting sundries. I think if we begin to see those kinds of things coming through on a regular basis and on a timely basis, similar to what we were seeing prior to the pause being initiated, there might be reason to consider changing course a little bit. I think we'd have to feel like we're seeing those things happen and that things are continuing to move along at a pace that's fairly commensurate to what we saw before the pause. Got it. Thanks, David. You noted in your budget it includes 10% inflation starting in the second quarter. I just want to see if you've seen any indications of service cost inflation yet. If so, where? In that budget, have you built any additional capital efficiency improvements into it? Yeah, Mike, this is Matt. Thanks for the question. Right now, we're not seeing a whole lot of cost inflation. We have built it into the budget. I think one of the good things for us, particularly on the completion side, 40% of the wells that we're going to drill this year, we're going to complete in this first quarter in this lower pricing environment. The way we typically think about our vendors is we're looking for vendors that help us create value. We had anticipated that some of the vendors couldn't continue to work at the pricing that they have for the last couple of quarters. I do want to make sure that they're able to do their business effectively so that we can become more capital efficient as we go through these things. I will say, in addition to that, we're continuing to have more efficiencies on the drilling completion and production side. I mean, we're drilling these wells faster and faster and faster on the drilling side. On the completion side, with the way we're developing these acreages, a lot of these are four-well pads, and so we're moving into the simul- frac operations, which is much more cost-efficient, gets the wells completed faster. Even on the production side, the production team has started on their flowback operations. We've kind of eliminated the flowback crews. We've got a couple of separators that we rent, and we do all that stuff internally in-house with our production guys. We will anticipate some service costs inflation, but I also think the efficiencies will probably make up a lot of that difference. Great. Thanks, Matt. Thank you, Mike. Thanks, Mike. Next question comes from Richard Tullis with Capital One Securities. Your line is now open. Hey, thanks. Good morning, everyone. Hey, Richard. Hey, Richard. How's everybody? Maybe start with you, Joe or David. How many of the 50 gross operated wells planned for 2021 will be located on federal acreage? Does adding the fourth rig change any of the planned wells for the other three rigs for 2021? I believe that all but two of the wells that we're drilling in this plan are on federal acreage. We are drilling two wells in our Wolf asset area, one that's drilled and one that'll be finished just in the next few days. Those are, I believe, the only two that don't have some federal component. You have wells like the Rodney Robinsons and the Stateline, which are 100% fed, then we have others like those up in the Stebbins area that tend to have a federal component to them, that they pass through federal acreage, or maybe they start on federal acreage. Frankly, most all the wells that we contemplate are going to be on federal acreage. How did that change things? I think that prior to Prior to a couple of months ago, we were putting together our plan. We probably would have drilled a few more wells in Rustler Breaks or perhaps in the Antelope Ridge area that were not directly associated with federal properties, and we probably would've drilled a few more wells down in our Wolf asset. We certainly have modified things a little bit to focus more heavily on the federal properties. That's helpful, David. Thank you. Just follow up. As Joe mentioned, you initiated the dividend policy. How do you see the dividend potentially growing, say, over the next two years? I'll give you the oil price environment, say $55 oil price environment in a four-rig scenario. Richard, I'll take first deal, and David can back clean up, but it's just too early to tell. We initiate this dividend policy. Of course, we're confident it's sustainable, but we don't know how it'll work or the effect on our shareholder group. So we'll go into it cautiously, and see how well it works, see what the cash flow is. See what the needs of the business are, and go from there. How fast it can grow? Certainly at the $55, we see growth in it, want to, again, move cautiously because we're on a path we haven't been before. Matador always had a dividend. It was much smaller, and that was private. Getting used to this, we want to sure iron out any of the problems on the payment and make sure everybody gets paid. We can look and plan to increase it over time. Want to begin conservatively and not have missteps. We're very excited by it. Our legacy shareholders and other shareholders had called in to say how much they like it, how much they appreciate it. We see it as a win-win-win type of arrangement. We're looking forward to. The staff. We have, as you know, large ownership among our management group and staff. They're eagerly looking forward to the checks, too. We'll see how it works. We'll have more at the next conference and each one after that, let you know how it's going. Thanks, Joe. Our next question comes from Gail Nicholson with Stephens. Your line is now open. Good morning. Thank you for taking my questions. Every quarter the team gets more efficient. Looking at the guide for Q4, it looks to be considerably higher than what the market was anticipating. I think that's predominantly driven by better efficiency versus that fourth rig more helping the 2022 volume outlook. Can you just talk about how those simul-fracs and other efficiencies that you guys are implementing really kind of speeds up that process and enables to get wells on quicker? Gail, what we've decided to do and what to do, we think is absolutely the right way to conduct our business, and you'll notice the lumpy nature of the production. We've gone to these multi-well pads where we're drilling two, three, four, sometimes five wells per pad, and so you end up with a lot of drilling efficiencies there. You've got fewer rig moves, and Billy and his team have put these rigs together where we can very efficiently drill these wells one whole section at a time and just get these things drilled a lot faster. Additionally, coming in with frac crews, initially we started just fracking a well. We'd do wireline work and then do the fracking, then do wireline work, and then we moved to what we were calling the zipper design, where we've got two wells, then we're fracking on one and doing wireline work on the other. Now we're moving more towards the what we call simul- frac wells, where we've got one frac crew that's completing four wells at a time. They'll be fracking on two of them with the same frac fleet and doing wireline work on the other with the wireline crews. As Chris Calvert, who's one of our heads of operations, he says there's very little white space in that operation, so we're able to complete more lateral footage per day, which ends up saving us a couple hundred thousand dollars per well on a four-well pad. Just moving on into the production side of things. Glenn and his team have done a really nice job of making sure that we've got water and oil pipe on location as well as gas, so that we're flowing directly from the wellhead through a couple of sand knockouts into our production facilities. We're selling gas, we're disposing the water, and we're selling oil on pipe right off the bat. All those things just get the wells on faster and with much more capital efficiency. Great. Just looking with the number of wells that are in progress at year-end, which is a healthy number, do you think that kind of makes the 2022 volume outlook less lumpy on a quarterly basis, or should we anticipate that lumpiness continues? Yeah, Gail, I really do think that probably even again in 2022, we'll still see the lumpiness. I just think that's just a bit of an artifact of the or just a natural kind of. Outgrowth of the way that we've chosen to develop these properties when we're drilling these 12, 13 well sort of batches or at a time, and putting all these wells on production at the same time, it just is going to cause us to continue to have the ups and downs in production. I think the good news is, it may be up and down from quarter to quarter, but six months to six months or year-over-year, it tends to be up and to the right most all the time. I think that's the positive thing. I would expect that this will continue for some time. Thank you. As a reminder, ladies and gentlemen, if you'd like to ask a question at this time, that's star then one. Our next question comes from Zach Parham with JP Morgan. Your line is now open. Hey, guys. Thanks for taking my question. Could you talk a little bit about the permitting process in New Mexico and what you've seen recently? I know y'all had talked about getting to around 300 permits by year-end on federal acreage, but it didn't seem like the permitting process really moved forward, even in November and December of last year. Just any color there on what happened. Yeah, sure. Sure, Zach. Good morning. Happy to answer that question. I think that we did have three new permits that were approved in the fourth quarter. I think that was more a result of sort of what we did. We had a number of sundries on existing wells or wells that were due to come up, particularly in the Stateline area in Stebbins that we wanted to kind of get through the system. These impacted things like, maybe we had a little change we needed to make to the surface location or perhaps the downhole interval that we were wanting to complete. One important thing was, as we've drilled our wells at the Stateline, particularly, and Rodney Robinson and other places, we've learned our drilling team has done a great job of being able to drill with just three casing strings as opposed to four. I think a number of the sundries that we requested in that period of time had to do with just reducing the number of casing strings. We were routinely receiving those approvals. The nice thing about that is it saves us several hundred thousand dollars a well, so it keeps enabling us to drive down the well costs on these wells. I think that's really what caused just the number of new permits to slow down a little bit for us in the fourth quarter was that we asked them. You kind of have your own queue with the BLM a little bit, and we were asking them to move these other sundries on existing permits up in the queue so that we could continue moving ahead with existing operations and do them more efficiently. That probably delayed getting more of the permits through the system in the fourth quarter than what we originally estimated. Got it. Thanks for that. That's good color. Then just one follow-up on the dividend, how you think about that going forward. How do you compare growing the dividend with debt reduction? Do you have a target debt level or leverage level you'd like to get to? No. It's a balance between the two. The debt reduction has the first priority, to work with our banks on that. We've been helped by the better than expected performance of our wells. It has increased our borrowing base, yet we want to lower that, and we were very pleased that our leverage ratio, over the year, got down to less than 3.0. It was end of year, 2.9. Customarily, we would like to be down there to the 2.0. We know it won't happen overnight, we expect to try to aim for steady reduction through the year. There'll be a little lumpiness because our production's going to be a little lumpy. The dividend will then have priority. Again, once you start a dividend, you don't want to cut it. We'll be cautious there, but we hope to grow it just as we grow our production and our revenues and profitability. We have two sayings around here. One is that we want profitable growth at a measured pace, and that same applies to paying down the debt. We want it measured, and the dividend growth, we want it, but it'll be measured same way with production. The second thing, we always try to reserve the right to get smarter. If circumstances change, we'll change, and we'll try to be nimble in responding to whether it's winter storms or price wars or COVID or whatever. I really think our staff did a really good job of navigating through all those things and ended the year stronger than it began. If I may, while I'm still on your question, just point out to the slides that I put in there, the 2021 priorities and milestones. I think this will address some of your questions, but it has our priorities, what we want to achieve during the year. We had this for last year. We achieved all of them, and we expect to do the same this year. I tried to provide, over in the upper right corner, some significant milestones that are objective. We either achieve them or we don't, just as we gave out last year. The first thing is turning the Rodney Robinson well, four new Rodney Robinson wells to sales. You got the Voni, which will be some of the best wells we've ever drilled. We've drilled some of those wells, they're 2.3 miles in the same amount of time that we did 2-mile laterals. Again, that's your capital efficiency, better methods out there. You have four Greater Stebbins Area wells. You have nine more wells to turn in the year, and then you have 13 more Boros Stateline wells. You add that up, 98% are 2 miles or more. We only have one well that's going to be less than 2 miles. We'll enjoy great capital efficiency. In year to date so far, the cost had been much like 2020. Somebody pointed out that 40% of our completions are going to occur in the first quarter. We will have a very large part of the year done next month in terms of CapEx at those lower prices. That's something that you can watch, and if we achieve them, then you know we're on track, and if something happens, then we're off track. The capital efficiency, I meant, has grown from 9% in 2018 to 29% in 2019 to this year was close to 70% or 80%, 83%, and now we're up in the 98%. The last thing is, again, mention what a good job San Mateo has achieved in steady growth from 2019 to present. That's a mitigator on decline in theoretically a no-decline business. All these things seem to be working for good. Our board is very active, and we have some Lead Director, Tim Parker, and really has helped us to grow these areas in parallel, the debt reduction, the capital dividend, the capital efficiency, the EBITDA San Mateo. Right now it looks like everything's clicking. We have our challenges, but I think we can deal with them in 2021, and the outlook is very positive to all of us here. I hope that's helpful to you. Yes. Thanks a lot for the color. That's all for me. Thanks, Zach. Thanks, Zach. Our next question comes from Scott Hanold with RBC Capital Markets. Your line is now open. Hey, good morning. Hey, Scott. Hey, Scott. I was curious on with adding the fourth rig, obviously, the San Mateo system has certainly been enhanced over the course of the last year. When you think about San Mateo and the higher level of activity and growth, is there some capacity expansions needed, or do you think San Mateo is pretty well set up where it needs to be here over the course of the next, say, one to two years? Scott, this is Matt, and I think we're in pretty good shape. We've added the 200 million cubic feet, so we're at 460 million cubic feet of processing capacity there at the Black River processing plant. I think that when we put all that together, we were contemplating a six-rig program. We've got plenty. I think the challenge for the team is going to be adding third-party volumes. I think Matt and Corey and others on the San Mateo team are out actively doing that. I will say that with the increased activity up at Stebbins, we have a saltwater disposal permit that we had gotten from the state, and we were kind of sitting on that waiting until we really needed it. I think we're going to go ahead and drill that, and that's built into the $20 million or $30 million in CapEx. Really for us with San Mateo right now, we've kind of transitioned from a company that's building things to a company that's operating things and adding third-party volume. That being said, if we were happen to land a big fish out there that might require some additional capital, it would be something that we would have some sort of guarantee that it would give us a good return on our investment before we would do that, and that would be added to what we've got projected now. Scott, this is David. Just if you would permit me, I want to take just a moment and give a shout-out to our San Mateo team, production team and San Mateo team. I think they did a marvelous job over the last 10 days of keeping those facilities up and going and keeping us producing. I think that we'd heard that there was only 5% of the plants that were up and going in New Mexico during all the cold weather, and San Mateo was one of them. Never was San Mateo more important to Matador than over the last 10 days, and I just want to give them a shout-out for their excellent performance over the last 10 days. Scott, this is Joe. I wanted to jump on during your question and give a shout-out to our field staff on the production side, is that these guys work 14-day shifts. They're on 14 days, off 14 days. Again, they work through the night, they work through the morning, keeping the production going, and just great work, great teamwork, great effort by all of them, and we appreciate that very much, and that's what's helped make this quarter and why we can give you the promising outlook for the first quarter. The maintenance, what Matt was talking about. The other factor is kind of a longer range, is that if the federal government does really restrict pipelines, building the pipelines on the surface out there, it makes the pipes we already have in the ground that much more valuable. That's an interesting development to watch. We don't know how that'll turn out. We hope that the BLM will continue to work with everybody. It's a very professional staff out there, we really appreciate them continuing to work with people when there's been government shutdown. They've persevered through a lot, the bad weather, the COVID, shutting down the government offices. I think they're deserving for our whole industry to get a little credit despite the adversity. Talking about the production guys, David's talking about the San Mateo guys. It takes the entire team, really. The San Mateo guys will tell you it takes gas for us to run the plant. The production guys will say we've got to have a plant that's up and running to make that work. The marketing guys are on the back end of this, finding homes for all this and making sure that we don't over nominate or under nominate. It's a difficult thing to do during these trying times. At the same time, the drilling guys, they set a record in the lateral during this time. It's freezing cold out there, and they're setting records. The completion guys, we were able to source sand in a very difficult time to keep two of our frac crews running. A lot of the sand mines had their natural gas cut off, and so that's how they dry the sand, and we were able to find a little here, find a little there, and keep things going. Lots and lots of effort by the entire team. They already mentioned the marketing guys who kept finding markets as refineries were shutting down and ways to move the oil. Go ahead, Scott. Didn't mean to use all your air time convincing people. Maybe just to play off sort of a comment that Matt and David had in terms of the uptime of the system when certainly, things were rough out there. Certainly, that's going to help your ability to probably market to get third-party volumes. There was some increased, obviously, non-op activity you're expecting this year. Is there a line of sight for some of that to come into the system, or is that not quite in the right zip code? Scott, some of it may, some of it may not. It's just dependent on whether that acreage has been dedicated to us or it's been dedicated to somebody else or whether it's undedicated. I assure you the San Mateo team is looking at the rig count, and they're looking at where these rigs are located, and if there's something coming up, they're going to their offices and visiting with them. Okay. No, absolutely. Just at a high level and with adding that fourth rig in, what is your all perspective on the risks of needing that rig? I know there's some flexibility with the rig, can you talk about how you sense that this may unfold here? Yeah. That's a crystal ball that's kinda cloudy. Honestly, you just don't know right now what the administration is going to do. We should know in the next 30 to 60 days, are they gonna resume granting the permits and the sundries in a routine manner? When you see that happening, then you'll know. The other thing I want to emphasize that a lot of this is we have a lot of opportunities. It's pretty clear we're in some pretty good areas when we drill 98% of our wells 2 miles or longer, and these are A+ locations. We'll take stock. We don't want to lose any of those locations because that's value lost to Matador. That we're not in this to grow for the sake of growth, but that proper growth at that measured pace. If it isn't working out or prices decline or other obstacles come in, as Matt pointed out, we can give up this rig in June, or we have another rig that's term is expiring in August. We can go down from four rigs to two rigs very quickly, or we could stay where we are. That was another advantage. We had a lot of flexibility. This fourth rig gave us that flexibility. It was a rig that we knew that was state-of-the-art with a crew that was really strong, and we thought that was better than waiting to see what might be available in 90 days or six months. This was a bird in the hand, and I think anybody that had the facts that we did would have done the same thing. We are not a one-size-fits-all company, as you know. We're not a company that turns on one element. We really try to look at things broadly from all the different angles. That's why we work in teams, and we have that deal about reserving the right to get smarter. As the year goes along, we invite you or any other analyst or any other shareholder, call us and ask us what we're thinking. As the year evolves, we'll be trying to keep you all up to date and run things as transparent as we can. We added a segment for non-op properties. You don't know for sure that that'll happen, but we thought we should play it conservative. The same thing on CapEx. We overestimated our CapEx for fourth quarter, and for last year, we came in better than expected. I'm hoping Billy and his group will come in better than expected again. We'll wait and see. Either way, we want everybody on notice. This is what looks best to us today and the foreseeable future. All right. Good. Thanks for that. Maybe if I could key off that with one other question. Obviously, you all had some nice pacesetter well costs coming into the fourth quarter at $625 per ft in the fourth quarter. I know you're targeting a little over $700 in 2021. When you look at that number, was the $625 just sort of a trough kind of pacesetter well? Or is the difference between that and 2021 really this sort of inferred inflation you think that may occur? I'm not sure if you're starting to see some of that at this point coming through different components. Yeah. I've got this, Matt. It's a good question. I think the wells that we drilled in Q3 that are in that really low number are some of these longer laterals where we're able to be very efficient, and we're going to continue to do that. We do have the 10% baked in there for inflation, and we're drilling wells in different areas. Some of the costs may be higher in different areas than they were down on the Boros and the Voni. It's a little bit of both, but I think the $730 number is a pretty good number. Certainly, where we started a couple of years ago, it's a very good number. I will say that just on the capital efficiency, one thing I think is interesting that here in the last couple of years, by gaining these efficiencies and drilling these longer laterals, the lateral footage that we're drilling per rig year has almost doubled. You're drilling a lot of this footage and you're completing more of the footage that you're drilling. Yeah. I want to jump in here. Scott, we gave some shout-outs. We need to give a shout-out to our MaxCom room. When Billy proposed the MaxCom room, we were all unsure how it might work. It goes 24/7. It assists our directional drilling. What they did at the time we implemented it, we were staying in zone about 70% of the time. Now we're staying in zone over 95% of the time. You can just manage that proportionate increase in reserves, adds so much extra value. Staying in zone also saves you tens of millions of dollars in drilling costs, not having to back up and redrill or one of the other problems that you would have. That's a bunch of young guys that have come in and have really worked and coordinated with the drilling guys. That's been a big boost to our better than expected performance. I didn't want this to go by without some recognition of them. David? Well, Scott, I just wanted to add just a little bit of color to what Matt said. One thing to keep in mind is that we have 19 wells being completed right now in the first quarter. You're looking at probably close to 40% of all the net wells we're going to put on production in 2021 are in the process of being completed right now. 13 Voni wells, four at Rustler Breaks, and two up in the Ranger asset area. The good news about those is they were drilled and all will be completed under what I would call 2020 pricing. We're going to get some of the sort of the trough level pricing on those completions. Now, as we go forward, we're expecting there may be some inflation as we talked about. I think this first batch of wells that we're going to get is going to really help out the average for the year, which is why we're confident that we're going to come in in that kind of 730 type range that we've been talking about. In addition, I might point out that the $625s were all wells up in Rustler Breaks, which is one of the shallowest areas that we drill. That probably contributed a little bit to that as well. Somebody just handed me a note that I said that there were four wells at Rustler Breaks, and I meant four wells at Rodney Robinson. There's 13 Vonis, four wells at Rodney Robinson, and two wells up in the Ranger area. The six of those, the Rodneys and the Rangers, are going to be on production late March, and then the Voni wells will start coming on in April. I think the completed cost per foot on those Voni wells is going to look really strong. All right. Appreciate the color. Thank you. Yes, sir. Thank you, ladies and gentlemen. This ends the Q&A portion of this morning's conference call. I'd like to turn the call over to management for any closing remarks. Thank you very much. We appreciate the questions. We again want to invite you to call us whenever you have other questions or suggestions. We'd like to engage with you and also extend the invitation whenever as we finish working our way through COVID to come see us in person. Your views and your relationship, friendship, it means a lot to us. We're very excited. We think we're continuing to come of age and appreciate all your support and interest through the years. On behalf of all the staff that's here, thank you all for hanging with the company in the historic cold. People are all in here getting things done, working together, and that has made it a total team effort. Thanks. Ladies and gentlemen, thank you for your participation today. This concludes the program.