Good morning, and thank you for attending today's PHX Minerals Fiscal 2022 Fourth Quarter and Year-end Earnings Conference Call. At this time, all lines will be muted during the presentation of the call, with an opportunity for a Q&A session at the end. If you need operator assistance during the call, please press star zero on your telephone keypad. As a reminder, this call is being recorded. I would now like to turn the call over to Stephen Lee with FNK IR. Please go ahead, sir. Thank you, operator, and thank you all for joining us today to discuss PHX Minerals' fiscal 2022 fourth quarter and year-end results. Joining us on the call today are Chad Stephens, President and Chief Executive Officer, Ralph D'Amico, Senior Vice President and Chief Financial Officer, and Danielle Mezo, Vice President of Engineering. The earnings press release that was issued yesterday afternoon is also posted on PHX Investor Relations website. Before I turn the call over to Chad, I would like to remind everyone that during today's call, including the Q&A session, management may make forward-looking statements regarding expected revenue, earnings, future plans, opportunities, and other expectations of the company. These estimates and other forward-looking statements involve known and unknown risks and uncertainties that may cause actual results to be materially different from those expressed or implied on the call. These risks are detailed in PHX Minerals' most recent annual report on Form 10-K. As such, may be amended or supplemented by subsequent quarterly reports on Form 10-Q, or other reports filed with the Securities and Exchange Commission. The statements made during this call are based upon information known to PHX as of today, December 14th, 2022, and the company does not intend to update these forward-looking statements, whether as a result of new information, future events, or otherwise, unless required by law. With that, I would like to turn the call over to Chad Stephens, PHX Chief Executive Officer. Chad? Thanks, Stephen, and thanks to all of you on this call for participating in PHX's fiscal 2022 year-end conference call. We appreciate your interest in the company. This year was a year of tangible progress for PHX, and we enter the new fiscal year, 2023, poised for significant improvements in our financial results. Our strategic transition began in late 2019 under new leadership. This strategy to high-grade our asset base by exiting high-cost legacy assets and transition to a low-fixed cost, pure royalty production model is coming into sharp focus. The results reflect significant improvements in our profitability and cash generation, and we expect this trend to continue. We are executing according to our stated plan, growing our royalty reserves through our targeted mineral acquisition program. Both royalty production and royalty reserves reached all-time high levels in the fourth fiscal quarter of 2022. 2023 will prove to be the final year of this formative transition as we plan to divest a material portion of our remaining legacy non-operated working interest assets. After which, royalty volumes will represent greater than 90% of total corporate volumes, and working interest volumes will be virtually immaterial. Our stated strategy is to allocate capital to the acquisition of existing and near-term potential royalty production with a heavy weighting toward natural gas. This strategy is working, delivering returns ahead of our expectations. Encouragingly, our pipeline for acquisitions in our targeted regions remains robust. We operate in something of a sweet spot in the industry, with sufficient scale and operational expertise to outperform small competitors, but nimble enough to pursue acquisitions the size of which are not material enough to capture the larger competitor's interest. In addition, supply and demand for natural gas remains favorable, giving us the commodity price leverage to improve profitability and cash flow. Our plan remains the same, to utilize most of our free cash flow to acquire more natural gas-weighted mineral and royalty assets that contain additional development drilling locations, which we expect will quickly convert to increase royalty production volumes. Simultaneously, as we continue to scale and expand profitability, we will be positioned to continue to increase our cash dividend, which has risen 125% over the last 6 quarters. At this point, I'd like to turn the call over to Danielle to provide a quick operational overview and then to Ralph to discuss the financials. Danielle? Thanks, Chad. Good morning to everyone participating on the call. At September 30, 2022, our proved royalty reserve increased year-over-year by 45% to 52.8 Bcfe with a PV-10 of $172.6 million at SEC pricing. Our near-term development probable royalty reserve increased 42% to 87.9 Bcfe with a PV-10 of $247.7 million, primarily due to the successful execution of our acquisition strategy and increased drilling activities in the Haynesville and the SCOOP. Our total proved reserves decreased 2% to 81.1 Bcfe with a PV-10 of $237.9 million at SEC pricing, primarily as a result of the divestiture of our legacy non-operated working interest assets. As we continue to execute our corporate strategy to exit this portion of our business. Going forward, we expect our royalty reserve to continue to increase and our working interest reserves to continue to decrease. During the fourth quarter, third-party operators active on our minerals converted 49 gross, or 0.22 net wells in progress, or WIP, to producing wells, compared to 96 gross, or 0.25 net WIPs converted to PDP in the third quarter. The majority of the new wells brought online are located in the Scoop and the Haynesville. For the full fiscal year 2022, we had 318 gross, 1.07 net wells convert to producing, compared to 147 gross or 0.56 net wells in fiscal 2021. That is effectively a 100% year-over-year increase. At the same time, as of September 30th, 2022, our inventory of wells in progress also increased to 172 gross or 0.85 net wells, compared to 155 gross or 0.79 net wells, as reported as of June 30th, 2022. The continued growth of well conversions and inventory of wells in progress show the repeatability of our business strategy. In addition to well inventory, we regularly monitor third-party operator rig activities in our focus areas and observed 26 rigs present on PHX Minerals acreage as of November 28th. Additionally, we had 99 rigs active within 2.5 miles of PHX ownership. The number of active rigs on our minerals acreage has stayed consistent quarter-over-quarter. It is important to note that activity levels near our acreage have increased in our core areas in the Scoop and Haynesville. In summary, we continue to see heightened development on both our legacy and recently acquired mineral assets. We are excited about these positive indicators for increasing our future royalty volumes. I will turn the call back to Ralph to discuss financials. Thanks, Danielle Mezo, and thank you to everyone for being on the call today. We had a very successful fiscal 22 from both an operational and financial standpoint. Our royalty production volumes reached an all-time high for fiscal 2022, and adjusted EBITDA increased 64.2% compared to fiscal 2021. For our fiscal fourth quarter ended September 30th, 2022, natural gas, oil, and NGL sales revenues increased 12% on a sequential quarter basis to a total of $21.8 million. For our fiscal year 2022, sales revenues were $69.9 million, which represents an 85% increase over fiscal 2021. Royalty production increased 15% and total production increased 7% on a sequential quarter basis, primarily due to new royalty wells converting to production and a natural decline on working interest wells. For the full fiscal year, royalty production was up 49% to 6.2 Bcfe, and total production was up 6% to 9.6 Bcfe. This is above the 35% year-over-year royalty volume growth rate we discussed in prior calls as operators continue to accelerate the pace of drilling in our core areas. The lower total corporate production growth is primarily attributable to the sales of legacy, non-operated working interest wells. Royalty volumes represented 71% of total production during the fiscal fourth quarter and 65% during the full fiscal year. Note that these figures include production from the Fayetteville working interest wells we sold in late September of 2022. Pro forma for that sale, our fiscal fourth quarter royalty volumes would represent over 75% of total corporate production volumes. 78% of our fiscal 2022 production volumes were natural gas, which aligns with our long-term strategy that natural gas is the key transition fuel for a sustainable energy future. Average prices received for natural gas, oil, and NGL in the quarter were up 5% on an Mcfe basis sequentially to $8.42. For the fiscal year, prices increased 75% to an average of $7.27 per Mcfe. Realized hedge losses for the quarter were $7 million and $22 million for the full fiscal year. For the quarter, approximately 58% of our natural gas, 62% of our oil, and none of our NGL production volumes were hedged at an average price of $3.38 and $44.25 respectively. For the full year, approximately 62% of natural gas, 72% of oil, and none of our NGL production volumes were hedged at average prices of $3.06 and $44.25 respectively. Recall that the majority of these hedged volumes were layered in during COVID in mid to late 2020 at the request of our lenders at the time. The remaining contracts entered into during that time will completely roll off in the next couple of months, which should lead to improved realized prices and higher cash flow, assuming the same commodity prices in 2023 that we saw in 2022. Total transportation, gathering, and marketing increased 23% on an absolute basis to $1.75 million on a sequential quarter basis. Increased 2% to $5.9 million on a full fiscal year-over-year basis. These expenses are primarily tied to movements in production volumes, but also have an inflation component which we experienced in recent quarters. Production taxes were flat on a sequential quarter-over-quarter basis at approximately $930,000, and increased 67% on a full fiscal year-over-year basis to $3.2 million. These expenses are primarily tied to movements in both production volumes and commodity prices. LOE associated with our legacy non-operated working interest wells increased 7% on a sequential quarter basis to $961,000, and decreased to $4 million on a year-over-year basis. These figures include the legacy assets in the Fayetteville that we sold at the end of September. Since we announced our strategic shift to a mineral-only company, we have sold over half of our legacy working interest wells and expect that LOE will continue to become less relevant to the overall performance of the company. Cash G&A increased 19% to $2.7 million for the sequential quarter and 27% to $9.1 million for the full year, primarily due to wage inflation, higher activity levels, and costs associated with our reincorporation to Delaware. Adjusted EBITDA was $8.4 million in our fiscal fourth quarter, as compared to $7.2 million in the fiscal third quarter. For the full fiscal year 2022, adjusted EBITDA was $25.8 million, compared to $15.7 million the prior year. Net income for the quarter was $9.2 million, compared to $8.6 million for the prior sequential quarter. For full year 2022, net income was $20.4 million, compared to a net loss of $6.2 million in 2021. We had total debt of $28.3 million as of September 30th, and our debt to trailing 12-month adjusted EBITDA remained flat at 1.1 times compared to a year ago, which continues to show our financial discipline as we execute on our growth strategy. On December 7th, we entered into an amendment to our credit facility and our borrowing base was reaffirmed at $50 million. We also welcome UMB Bank into our bank group, joining Independent Financial and MidFirst. As part of our effort to streamline our financial reporting and enhance our investor relations effort, we are going to migrate to a calendar year reporting schedule in 2023 and change the end of our fiscal year from September 30th to December 31st. This will bring us in line with the rest of the publicly traded minerals companies and make it easier for investors to evaluate our business and key performance metrics within the industry group. From an SEC reporting and earnings release standpoint, the company will file 4 Form 10-Qs and release earnings 4 times prior to the next annual report being filed. Our next annual report on Form 10-K will be filed in calendar year 2024 for the fiscal year ended December 31st, 2023. We plan to provide forward-looking guidance for calendar and fiscal year 2023 when we report our results for the period ended December 31st, 2022 in mid-February. Finally, we have made the determination to terminate our at-the-market offering program. The costs associated with the program no longer justify keeping the program in place given how little we have actually used it. In addition, our liquidity position has improved significantly from when we implemented the program a little over a year ago to facilitate the execution of our growth strategy. Note that the shelf registration will remain in place until it expires, as this represents good corporate practice. With that, I'd like to turn the call over to Chad for some final remarks. Thanks, Ralph. As you can see, our strategy is financially sound, leading to growth, profitability, and cash generation, and we are increasingly turning that cash into additional mineral assets to further expand our platform. Our pipeline for acquisitions in our core areas under active, reputable operators with line of sight development is robust and growing, and we have a great team that is advancing targets to further our growth. I believe fiscal 2023 will be a tremendous year for PHX, its employees, and its shareholders. As we close out our fiscal year-end, I would like to thank our dedicated employees for their hard work and congratulate them on achieving outstanding results in 2022. I would like to thank our board of directors for their support and insightful wisdom they provide in executing our corporate strategy. This concludes the prepared remarks portion of the call. Operator, please open up the queue for questions. Thank you. We will now be conducting a question and answer session. If you would like to ask a question, please press star one on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star two if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. One moment please while we poll for your questions. Our first question has come from the line of Derrick Whitfield with Stifel. Please proceed with your questions. Good morning, all, and congrats on your quarter and recent A&D progress. Thanks, Derrick. With the understanding that you will provide formal 2023 guidance in February, I wanted to focus my question on your royalty production trajectory based on monosite activity. Can you comment on the trajectory and any sizable well packages you're expecting over the next 6 months? In looking at pages 16 and 17, it certainly appears you have a wave of activity at Springboard 3 that's expected to come on. Yeah. Hey, Derrick, it's Ralph. let me start, and then Danielle Mezo is gonna chime in as well. I think it's important that if you look at what we converted in fiscal 2022, right, we converted 1.08 net wells, right? The gross wells is 300 and change, but really the net's the important number to look at. That grew volumes by, you know, upwards of 40% on a year-over-year basis. As we go into 2023, we have an inventory of wells in progress. These are wells that have already been spud and are being worked on of approximately 0.08 and change. We have permits that have been filed of another 0.22, right, which brings the total number of net wells currently being worked on in our asset base to pretty much the same number that we saw convert to PDP last year, right. If that trend follows, right, even without any probable locations or new permits being filed, which I think is a very conservative assumption, we should see, you know, a pretty healthy double digit year-over-year royalty volumes increase. Obviously, you're starting from a higher base than, you know, than you did last year, right. You know, we're pretty encouraged that as the year progresses, right, you may see even additional activity beyond what the 1.07, 1.08 that's currently being worked on in our asset base. Yeah. We continue to see very strong activity in the Haynesville. Lots of WIPs and DUCs, wells in progress out there right now. That'll really help to support our royalty growth over the course of the next year. We are also seeing an activity increase in the Springboard Three. We've consistently seen 5, 6 wells a quarter being converted out there for the last 6 quarters or so. In the recent months, we've seen an acceleration of permits, more drilling and completion activity, particularly from Continental on the east side of the play. We do expect that to start coming in and supporting our growth as well here in late 2023. Strong activity on both fronts. Derrick, this is Chad. Also, we can direct the investment community to our most recent IR slide deck that we're putting out on our website. In there, you can see that really the tangible sense of our royalty volume growth starts with the number of gross probable locations we have. They're approaching 2,000, that's in the Scoop and the Haynesville and some of our legacy STACK. That's the source of all of this activity that Danielle and Ralph are talking about. You can see over the last couple of years, our gross conversions, which are coming from that probable category, have been in the 200-300 range gross. This time last year, it was about 0.5 net. This year it was one time. We've doubled the net from last year to this year, which speaks to the interest, the core interest that we're acquiring in these Haynesville locations, the actual royalty interest. Last year at this time, we were about 0.5 net wells in inventory, drilling inventory. Today we're double that or about 1. Again, the real source of all this royalty volume growth is the probable locations. Those are, we have maps, we have geology, we have engineering, we have type curves. There's operators in the area drilling. They obviously wanna develop their leasehold. It's real, it's tangible, and it's gonna continue to feed our overall royalty volume growth and that trend that you're inquiring about. I think it's important to note that when we say probables, it's a probable location per an SEC definition because we don't have something written down on paper from the operator that says they're gonna drill it within the timeframe that the SEC would deem it as a proved and developed location. I would venture to say that a significant portion of those probable locations are actually proved and developed locations on the operator's books. You know, it's a little bit of semantics on the definition, but these are, you know, for oil and gas folks, these are very high quality locations as Chad re-referenced. That's terrific color, guys. Chad, perhaps for you or Ralph, could you speak to the A&D pipeline and the broader environment for minerals in your focus basins in light of your pending working interest divestitures? Separately, are there material non-core mineral divestitures you could pursue as well? Yeah. I attempted to somewhat address that in the notes, in the call notes that we just went through. We are in somewhat of a sweet spot given we're a small company, we need to grow, and we are growing. The deals that we look at and the deal size, there's a food chain out there, and the larger companies are focusing on the larger packages, the larger mineral asset packages in the $50 million to $100 million to $150 million range. We're way down that food chain, and we're focused on and have been since we started this in late 2019, early 2020. We've been focusing on the deal sizes $1 million-$5 million range, which is material to us, moves the needle. We, in 2022 closed, I think in our press release, we talked about $48 million worth of total acquisitions closed in 2022. That included over 30 different deals, that to accumulate that $40 million worth of acquisitions. We're doing a lot of deals. They're all relatively small, but at the end of the day, they all of those acquisitions collectively move the needle for us in terms of royalty volume growth and royalty reserve growth, which is important to us as well. We continue to see in that range, the $1 million-$5 million range, we continue to see a robust deal flow. We're very confident we can continue the kind of the quarterly deal closings, the money we're spending, the capital we're allocating on a quarterly basis, this steady kinda $10 million-$15 million a quarter deal flow. We see it now. We're optimistic we'll continue to see it in the areas in which we're focused. We're very excited about that. I think the board is confident of that too, 'cause they approved this dividend increase, most recent dividend increase, which speaks to the overall ability for us to continue to grow our royalty volumes and our ultimately our EBITDA and cash flow. Yeah. The good news is we don't have to chase, we don't have to go elephant hunting, for lack of a better term, in terms of bigger deals where there is much bigger competition. You know, we've basically put together a system where, you know, we can aggregate quite a few of these smaller deals that Chad talked about, and we can very, very quickly and efficiently redeploy the proceeds from the sale of the working interest assets. We're really excited about the royalty volume growth trend. We now have, over the last, say, 3 or 4 quarters, have really demonstrated that trend or that ability to grow the royalty volume. To address your other question, the non-core minerals, which was the legacy, the old Panhandle Oil and Gas legacy minerals, unleased, open, never had any activity on them, are on the margins of these basins. They're not strategic to us. They have no real value to us. Someday, somehow they may be drilled or developed, but under any current technology or commodity price environment, it's very doubtful that any of these minerals will ever turn to cash flow in the near term. We're steadily attempting to sell all those non-core mineral assets, and there are small private companies out there who that's their business, that's their strategy. We're continuing to have discussions with them about piecemealing off from various areas, these non-core minerals, which today we own, Ralph, what, about 150- Something like that. 150,000 net mineral acres all over the U.S. We're continuing to focus on turning that into. We can take those non-mineral sales, excuse me, non-core mineral sales and redeploy those proceeds into these acquisitions that we're focused on and turn it into cash flow immediately. Again, just a way of, as I keep referring to, high grading the asset base, just improving the overall asset quality and the asset base and the interests that are cash flowing for us. That's great. Thanks again, for the update. Thank you. Our next question has come from the line of Donovan Schafer with Northland Capital Markets. Please proceed with your questions. Hi, guys. Thank you for taking the questions. I first wanted to just kind of reorient ourselves around your hedging approach and philosophy. You know, it's a great kind of reminder and commentary about the, you know, hedges you have in place today that are rolling off. It looks like a much lower, you know, kind of under the current pricing environment, sort of serves as a burden for next year. It's a much lower burden versus say last year as that's kind of rolling off. You know, and that was driven by your lenders, you know, going through COVID and commodity prices really turning downward. What's kind of your sort of more overall strategy or philosophy or view? You know, do you want to be largely exposed, so that you are kind of a vehicle for investors that way who have a view on where commodity prices are going? Or do you wanna have more stability there, to just kinda help you manage, you know, cash flow and how you guys adapt? Do you wanna stay above 50% hedge? Do you wanna come below 50% hedge to 20 or something? What are your overall kinda thinking is there strategically going forward? You know, one, certainly, we have covenants in our credit agreement that require us to put hedges in place, right? Just as a refresher, it's 45% each for oil and natural gas, existing PDP. It's gotta be producing today in forward months 1 through 12, and then 25% in months 13 through 18, right? That's sort of the minimum, right? You know, for the PDP portion, you know, we tend to think because we don't really have any capital obligations in terms of where our cash flow goes, right? You know, we like to use collars, right, which you can see, you know, after the hedges that we had to put on in 2020, which were swaps, we've been really using collars, which is a way to sort of protect the downside from any sort of abnormal drop in prices, right? Keep us exposed to the upside. If you look at, you know, calendar '23, right? You know, we have exposure on the existing collars all the way close to $7 per Mcf, you know, generally speaking into the summer, right? This winter, right, I mean, we're exposed up to, you know, almost $12 on the upside, right? We protect our downside, you know, obviously as well. I think we're gonna... From an instrument standpoint, you know, we're believers that collars, you know, provide the upside while still giving us some, you know, black swan, downside protection. Because we don't have any capital obligations, right? I mean, if you have a sustainable lower commodity price environment, we can very easily, you know, pivot, some of the cash flow that's being used for the acquisition program, right? Pay down, you know, debt, which right now we're 1 times debt to EBITDA, is fairly conservative. If, if anything happens, we can very quickly pivot and reduce that, you know, even further. I think that, you know, Remember that the growth rate that we're showing on royalty volumes, right? All of that is, until it becomes production, it's unhedged, right? You cannot hedge or you should not hedge production that you don't currently have, right? I think when all of that shakes out, you know, you may see that, you know, on a total production standpoint, you know, in the near quarters, right, you end up seeing that 50% rate. It's probably a pretty good gauge, a much better pricing, right? As you look into the future, as new volumes come on, we will layer on additional collars and, you know, we'll keep investors exposed to, and ourselves exposed to higher prices, you know, while protecting any, you know, any kind of black swan, so that, you know, what happened in early to mid 2020, which Chad and I inherited, never happens again. Okay. Just so to be clear, for collars versus swaps, is it pretty much one to one from the covenant standpoint? They're just as happy. Yeah. It maybe changes the math on how they sort of underwrite things, or they have their own sort of formulas. They have their own sort of formulas. Sure. Yeah, it meets the same requirement. But it- I mean, we're pretty careful in how we structure our collars. They're costless collars, number one. Yep. Number 2, the floors are, you know, above the, you know, the price deck that the bank uses, right? Got it. Okay. Okay. ... we wanna be very transparent with all of our, you know, you know, counterparties, right? I think the bank group has been very happy with what we've done and, you know, they like our plan going forward. Okay. That makes a lot of sense. Donovan, just- And then- Let me add to that real quick, just from an overall hedging strategy macro. At the minimum, the bank credit agreement, as Ralph said, requires us to. They are our real lifeline to growth. We need to grow and we'll continue to grow. They've been a great partner with us as we found some really attractive acquisitions, and they've helped fund those acquisitions. With. We wanna protect our balance sheet and with that debt, even at certain sensitivities, if commodity prices, we feel pretty good about our volumes because the Haynesville is economic. The operators in the Haynesville will continue to drill, and our royalty volumes will continue to grow at almost any, even black swan event, natural gas price scenario. Their wellhead economics at $2 are pretty decent. Our royalty volumes, we think, will continue to grow. The only thing that could hurt our balance sheet would be some sort of black swan event if gas prices drop. We wanna to hedge to protect our balance sheet and protect that bank credit facility as we continue to grow. As Ralph said, if commodity prices do drop, we're still in good shape at, even at 2 times debt to EBITDA. We could- Yeah ... take advantage of a pretty. Well, it occurred to me, if you wanted more commodity, you know, if you wanted to be lower hedged, you could, you know, lower the, you know, the commitment that the banks are providing for the revolver. To your point, what you're sort of saying is it's more valuable to you as sort of a key driver for growth to say, "No, no, we wanna keep that in place so that we can be opportunistic and take action as we see appropriate. Yeah. you know, The trade-off to that is a bit more hedging than, like, the minimum amount you could get away with. It gives you that access and gives you that ability to be opportunistic. That's the logic. Exactly. The collars give us... Yeah. Okay. ... good upside exposure. Yeah. Okay. I wanna ask just kind of as a housekeeping question, for what we might expect, how we should think of like a runway for G&A expense. You know, there's a bit of a jump this quarter, with transaction activity and then, you know, but also the last two quarters are a bit elevated from transactions there. I know the current quarter, you know, I guess calendar year, fourth quarter right now that we're in. I know you've already done the $10 million in acquisitions there. If we stripped out kind of the acquisition... I know you plan to do them going forward, but just as a way to get some kind of bearings around, as you could call it, normalized or just like the stripped down, what should we see as G&A without kind of, you know, ongoing legal expenses or mergers and acquisitions and things like that? Also for depreciation, you know, DD&A just with the Fayetteville divestiture. Then, you know, that's gonna move things down, but then you have the recent acquisitions. Just how to kind of think about that going forward. Yeah. Let me, let me address it from a real macro perspective first, I'm gonna let Ralph get into the weeds a little bit. When I took over as CEO in 2020, really it was a whole new management team and a whole new technical team that I brought in. The compensation was set at what was kind of the old Panhandle regime. With the environment we were in in 2020, you know, salaries and overall comp was at the bottom. We were tiny. We had to work through some issues. We were at the kind of the bottom of the pay scale, so to speak, for a company our size. Then we moved out of COVID into 2021. By the second half of 2021, we were having great success. The overall industry success was everybody was doing well, commodity prices were moving up, and there was a lot of competition out there from private equity groups that were trying to fund their management teams and fill their positions that these private equity groups were building out management teams. There was a natural wage inflation and just an industry competition for employees. I really liked the team we had put together, and I didn't wanna lose anybody. It can cost a company a lot more if you lose somebody than to just pay them a fair wage. Between 2021 and kind of this year, 2022, we were bringing our team up to kind of what was market to make sure we don't lose them and reward them for the good work that they've been doing. That led to some of the% increases you're seeing in the G&A. I don't see it it gonna be as dramatic. There will be some natural, but I don't. We're not adding people. We're paying the existing employees more and they're worthy of, and I wanna retain them and keep them as we have this success and build this thing over the next three, four, five, six years. I wanna build a real legacy here of high quality employees that have ownership, believe in what we're doing, have ownership in the strategy and the model, and they're the ones bringing the shareholder value to you guys. We just wanna reward them and it's market. But I don't see it year-over-year increasing the way it has over the last few quarters. But Ralph can. Yeah. No, I agree, I think there, you know, I would also encourage you to think about it in a slightly different way too. I mean, think about, you know, much like our debt, right? You can actually see our debt from last year to this year has gone up, we have maintained our leverage statistics the same. We've high graded the asset base, et cetera, et cetera. If you look at G&A relative to operating cash flow, right? As an example, right? I mean, that metric, right, that relational metric continues to improve year over year, even into the future, right? You know, as Chad said, what we've put together is very scalable, you know, at the same time, we're susceptible like everybody else to the wage inflation that you've seen, that everybody is suffering from, right? I mean, this year. What's gonna happen in the future? It's a good question. But to Chad's point, right? It's losing key personnel is possibly a worse outcome. On the DD&A, I would say that working interest DD&A is usually run on a percentage depletion basis, right? Whereas minerals is run a little bit differently. It's a straight-line depreciation that varies between 20 and 30 years, depending on whether it's producing or non-producing. On a DD&A basis, you should see DD&A come down into the future as the working interest rolls off and we become a, you know, close to 100% only mineral business, right? You know... Yeah. Then it should hold relatively flat or grow, you know, depending on how many acquisitions we make, right? It may grow along with our growth rate of acquisitions relative to the total asset base of the company. Yeah. You should see it come down, as we exit, that working interest side of the business. Okay. Just last question, if I can squeeze 1 more in, because I think the royalty interest versus working interest dynamic, I think is extremely, I find it particularly fascinating, because it does create, you know, it poses some unique challenges in terms of trying to understand it, trying to understand things, but I think it also provides almost a lot of kind of concealed upside in some ways, where it's like, you know, you'll get a 7%, you know, sequential growth in or total growth in production, or I guess the year-over-year for the full years. It's like there's a 49% increase in the royalty part, and there's this whole turnover underneath. If you think about a barrel of, you know, a royalty barrel versus a working interest barrel, they're just the value of those is so different. And then, of course, you know, the way this, there's technicalities on how this comes into this reserve reporting. For the reserve reporting part, I kinda had this thought or this idea of. I mean, I wonder, I may be able to kinda back into this by comparing past reserve reports or maybe like the Fayetteville divestiture. I wonder, as a way to approximate the difference of how PUDs get booked, would you be able to, like, would the logic hold here to say if you had 100, you know, net PUDs that were working interest, like you had 100 net working interest PUDs on the books, would like as a thought experiment, would you be able to look at that same 100 net PUDs currently on your books, you know, this is kinda hypothetical, but as working interest, would you be able to go back to kind of the auditor or someone or just look at that and say, "Well, hey, if we took these same 100 net PUDs that we are allowed to book because they're working interest, if those exact same ones were royalty interest instead of working interest, and it's those exact same 100 PUDs, but now we sort of don't have almost like this quasi like almost like a sort of affidavit, effectively, you know, from the operator? Now that we don't have that, how does that flow through from SEC? Does that 100 drop to 20 because only 20 have had permits filed? Like, I guess, is my logic hold there? Is that, like, how you would go through that almost thought experiment? Is it something you could even do or that we might be able to kinda back into from historical numbers? Donovan, what the subject matter you're discussing is kind of an accounting, a complicated accounting perspective, locations in and locations out that we fortunately do not have to deal with because in January 20 when I took over as CEO, the first thing I did was mandate that we will no longer participate in the drilling of a new well as a non-op working interest owner, and we wrote off all of the PUDs, reserve PUDs that were on our reserve books. Since 2020, we've had zero non-op working interest PUD locations. All of the locations- Yeah. Yeah. Yeah. Yeah. that we now have, and as I've mentioned earlier in Derrick's questions, I directed the call, the participants on the call here to so approaching 2,000 drilling locations that we have now on our books. We've added those since 2,000. I mean, excuse me. Yeah. Since 2020 when I took over. Those are all royalty interest, mineral royalty interest locations. None are a non-op working interest. We don't have to deal with the accounting rules or accounting of reserve volumes, whether it's a working interest. Sure. royalty mineral interest. there it's pretty simple. We dealt with that in 2020. Yeah. no longer. That's helpful. It's a helpful reminder. I was almost thinking about it as a term of if you could come back to what that ratio is, you know, if it's 5 to 1 or whatever, working interest PUDs to what you get allowed to book when that's more royalty, then you could use it in the opposite direction and then say, "Oh, well, then that means if you've got, you know, 50 wells in progress, that would approximately be, you know, 250 PUDs or something under. Yeah. I don't think that math is possible. Okay. The reality of it is you're, you know, because you know, a working interest PUD may be a probable, it might probable in the same section may be a probable mineral reserve because I don't have the timing schedule from the operator. Yeah. You're mixing in so many variables that trying to back into that. It's just. From a relational standpoint, just not, you know, I don't think it's possible from. There's a good amount of room for error, but okay. All right, I got it. Thank you. I appreciate you guys. I'll take the rest offline. Thanks, Don. Thank you. Our next question has come from the line of Jeffrey Campbell with Alliance Global Partners. Please proceed with your question. Good morning. Good job. Congratulations on the strong year. I wanted to kinda shift the questions to the divestment of the non-op working interest that you referenced in the press release, as a major 2023 event. First, can you outline the cadence of this, the sell-offs? I mean, is it gonna be a more of a first half 2023 front-loaded thing, or will it be sort of more pro rata over the year? Do we have any color on that? You know, Hey, Jeff, it's Ralph. I think it's gonna be. Two things. One is after, at the end of the day yesterday, after we put out the press release, we actually did execute on a purchase and sale agreement for our Arkoma working interest assets in Oklahoma, right? We have a PSA on hand, to sell those assets for proceeds. I think the deal size, $5.1 million closing on January 30th, right? You know, there's definitely some front-end loading there, and I think there's some other pieces that we can hopefully get under PSA sooner rather than later. We've already had some discussions around valuation. The remainder, right, is, you know, I will personally be disappointed if we don't find a buyer at a reasonable price, you know, or in the second half of 2023. It's probably evenly split, you know, with the first half happening here very quickly, and then the second half happening, you know, towards the mid part of 2023. importantly, and it's been. Our good fortune in late 2021 and 2022 is we were selling the non-operating interest assets that we sold back then. Ralph D'Amico and I were mindful of this, we were trying to manage our volumes and cash flow quarter to quarter. As we were selling those non-operating interest assets, we were quickly ready to redeploy those into deals that we had signed up, and we quickly redeployed those proceeds into actual deal closings for minerals in our core areas. The same dynamic is in play here. We're pretty optimistic that when we close late January on this Arkoma deal that we just signed up, we're gonna be able to redeploy those cash proceeds into minerals that'll flow through to our royalty volumes and cash flows. That's been the dynamic at play. We didn't wanna completely sell everything all at once. As she goes, converting the non-operating interest into producing minerals and cash flow. That's what's at work here and what's in play. We've been very fortunate to be able to methodically manage that dynamic. Okay, thank you. I don't wanna, you know, try to get too far ahead of guidance that's upcoming, but just to kind of at a high level. If we take what the press release said, at face value, which is greater than 90% of the working interest production is gonna get sold in 2023, and then we have the growth in the minerals that Ralph talked about earlier, is it fair to think that year-over-year 2023 will be somewhat flattish relative to 2022? I mean, this is assuming we're not assuming any more acquisitions and any acquired production or an acceleration of drilling beyond what you've revealed now. Just that's kind of the way it looks to me based on what we have to look at right now. Well- Just kind of wanted to get your input. From a total corporate production standpoint, I think that's fair, right? Keep in mind. That's what I was- Yeah. You know, obviously, keep in mind that, you know, royalties have a much higher margin than one molecule of royalties. Volumes has a higher margin than working interest, right? Theoretically, right, if you have the same even though if you have flattish corporate volumes, assuming the same commodity price environment, which is a big assumption, but if you assume the exact same commodity price environment, you would theoretically see higher cash flow come out of those same volumes because of the difference in pricing, like lower cost, higher margins of minerals relative to working interest. Yeah. Well, I mean, I think that's sort of the core argument for being in minerals versus an E&P to begin with, right? I mean, it's, it has very attractive defensive characteristics, except we have one of those black swan deals and also, it's higher margins. I think that's a fair point. I wanted to ask the final one on the working interest part. The press release said that greater than 90% of the production volumes would come from royalties. Which doesn't imply that the entirety of the non-operating interests are expected to be sold in 2023. Therefore, I was wondering, are we still gonna see some LOE and some ARO numbers in future financials like carrying into 2024? It's possible, right? I mean, I think it's gonna be de minimis in just noise. I mean, I think our target's to be able to completely exit, right? I can't give you 100% certainty, right? There is some room for some noise in there, right? If we get there by the end of calendar 2023 and with it in 2024, that'd be great. You know, there's some things in there that we don't control, right? There's a little bit of wiggle room. Certainly I hope it's 0 in 2024. Yeah. I don't wanna Okay. No, that's fine. I just wanted to ask one last question. In the fourth quarter and afterward in the subsequent events, you showed continued net royalty acreage acquisitions. I'm assuming that they were in the Scoop and in the Haynesville. I think that was articulated in the press release. Can you comment on the percentage split between the Scoop and the Haynesville that you're acquiring these days? Will these percentages be similar in the 2023 acquisitions to come? I would say that thirds to probably closer to three-quarters of the acquisitions are in the Haynesville, and the remainder is in, you know, by number, you know, by number of acres or deal value, right? The rest is in the Springboard area of the Scoop. You know, the Springboard is a much smaller geographic area, right? With all of the activity that Continental is doing in there, right, it becomes, you know, it's not as we're still finding very good value proposition there, but it's not the same as it was a year ago, right? The Haynesville, it's got a much bigger footprint, right? You know, it gives us more opportunity in there. I would say, yeah, about three quarters would be Haynesville, a quarter Springboard. About that. Just to talk quickly about Springboard 3. So, there's 2. Clearly, Continental has the largest leasehold position in our area of interest. We have a kind of a boundary or an outline that in which we've been acquiring minerals. There were 2 things in play there. 1, Harold Hamm was trying to take his company private, which he just successfully did here recently. He didn't wanna advertise too much of what he was doing there or drive his share, the share price up too much by announcing, good wells, good results in that area. Secondly, they've been doing a bit of kind of, we-well analysis that the best way to drill the wells and the best angles and the best... There's 2 different zones there, and they're testing both zones. Once they finish some of this science, they'll get into what we call a mow the grass scenario, where they've got 5 or 6 rigs, and they're just marching down the, down the line, drilling and developing these wells. That probably is still close to a year away. But that's what they've done before. That's the way they always develop these areas. They did it in the Springboard 1 asset. You can see what they did up in Grady County in the 1. They'll do the same thing in Springboard 3, and we're excited about that. As we've acquired minerals in this area, we've run up against Continental, who's got Franco-Nevada, who funds them and buys minerals underneath the wells that they drill. We're fortunate to have gotten the position we have in the Springboard three ahead of Continental. Got it. Okay, that's very helpful. I appreciate it. Thank you. Thank you. Our next question comes from the line of Nicholas Pope with Seaport Research. Please proceed with your questions. Hey, good morning, everyone. Hey, Nick. Hey, Nick. Real quick, looking up at the recent quarter, y'all switched to being a cash tax payer. I was curious what the thoughts are over the near term, what that income tax rate looks like, how much y'all expect to be deferred, now that we're in that regime? Yeah, it is, you know, it's a, it's a high quality problem, right? I mean, as we're not drilling wells and not generating any IDCs, much like every other mineral company out there, where we've now become a cash taxpayer, right? Our estimate is that, you know, it's roughly, you know, in the low teens is what your cash tax rate is, right? You know, the tax rate itself is a bit higher, but you can defer some of it. Our estimate is gonna be in the low teens. Got it. It's been a long call. Well, that's all I had. I think everything else has been asked, guys. Thanks, Ralph. Thank you. We have reached the end of our question-and-answer session. I would now like to hand the call back over to Chad Stephens for any closing comments. Thank you, operator. I'd like to thank our employees and shareholders for their continued support. I'd also like to note that Ralph and I will be expanding our investor marketing activities over the coming weeks and months through a series of non-deal roadshows and conference presentations aimed at expanding investor awareness. If you would be interested in meeting, please don't hesitate to reach out to myself, Ralph, or the folks at FNK IR. We look forward to hosting our next quarterly call in mid-February. Thank you, and have a good day. Thank you. This does conclude today's teleconference. We appreciate your participation. You may disconnect your lines at this time. Enjoy the rest of your day.