Good morning, and welcome to Permian Resources conference call to discuss its fourth quarter and full year 2023 earnings. Today's call is being recorded. A replay of the call will be accessible until March 13th, 2024, by dialing 877-674-7070 and entering the replay access code 855841, or by visiting the company's website at www.permianres.com. At this time, I will now turn the call over to Hays Mabry, Permian Resources Senior Director of Investor Relations, for some opening remarks. Please go ahead. Thanks, John, and thank you all for joining us on the company's fourth quarter and full year 2023 earnings call. On the call today are Will Hickey and James Walter, our Chief Executive Officers, and Guy Oliphint, our Chief Financial Officer. Yesterday, February 27th, we filed a Form 8-K with an earnings release reporting fourth quarter results. We also posted an earnings presentation to our website that we will reference during today's call. I would like to note that many of the comments during this earnings call are forward-looking statements that involve risk and uncertainties that could affect our actual results and plans. Many of these risks are beyond our control, excuse me, and are discussed in more detail in the risk factors and the forward-looking statement sections of our filings with the SEC, including our Form 10-K, which is expected to be filed tomorrow afternoon. Although we believe the expectations expressed are based on reasonable assumptions, they are not guarantees of future performance, and actual results or developments may differ materially. We may also refer to non-GAAP financial measures that help facilitate comparisons across periods and with our peers. For any non-GAAP measure we use, a reconciliation to the nearest corresponding GAAP measure can be found in our earnings release or presentation, which are both available on our website. With that, I will turn the call over to Will Hickey, Co-CEO. Thanks, Hays. We're excited to share our fourth quarter and full year 2023 results, as Permian Resources was able to deliver another quarter of outperformance, closing out an incredible first year of operations under the PR name. I think that over the past five quarters, we've demonstrated just how good this Permian pure-play business is, operating efficiently on our core Delaware assets, executing on highly accretive deals, and continuing to demonstrate low-cost operatorship across the business, which all contribute to PR's industry-leading returns since inception. As we looked at 2024, we expect to continue maximizing shareholder value, and I want to take a moment to walk through how we think about value creation here at PR. Our relentless focus is on creating value on a per-share basis, and our team has positioned us to deliver a 2024 plan that's expected to generate peer-leading production, cash flow, and free cash flow per share growth without increasing leverage. We're able to drive this outsized growth per share through PR's continued focus on being the lowest cost operator in the Delaware, our thoughtful capital allocation and development plan, and the highly accretive transactions we completed during the year. In the midst of closing the Earthstone acquisition on November first, the Permian Resources team was still able to deliver an outstanding fourth quarter across all metrics. Q4 production outperformed, with total production of 285,000 barrels of oil equivalent per day and oil production of 137,000 barrels per day, exceeding both internal and external expectations. This production beat was attributable to three things. First, and most significantly, we saw outperformance across the board between both PR and legacy Earthstone assets. Second, a reduction in downtime on legacy Earthstone assets led to higher-than-expected runtimes as the team realized operational synergies more quickly than planned. Third, and finally, our drilling and completion efficiencies continued to impress, bringing incremental wells and producing days into the quarter. Even with the increased activity, capital expenditures were in line due to per unit cost reductions, leading to significant free cash flow outperformance in the quarter. Our team was also able to transition seamlessly into integration and synergy capture mode in the fourth quarter, executing on our proven integration playbook while maintaining focus on driving low-cost leadership across the business. PR continued to increase operational efficiencies in the fourth quarter while integrating legacy Earthstone rigs and fleets into its program, contributing to overall program decreases in per well unit costs that we've been able to carry forward into the full year 2024 plan, culminating in a program average of $860 per lateral foot. In addition, the team demonstrated strong controllable cost discipline, driven largely by lower LOE, with controllable cash costs decreasing 8% quarter-over-quarter to $7.33 per BOE, despite higher legacy Earthstone costs. Overall, our strong production and low cost structure allowed PR to report $0.47 per share of adjusted free cash flow, or $332 million in aggregate. In addition to our focus on execution, we believe our portfolio optimization program will continue to drive meaningful value for shareholders. As many of you saw last month, Permian Resources announced a series of transactions which added 14,000 net acres and 5,300 net royalty acres in the core of the Delaware Basin, just three months after closing the $4.5 billion Earthstone acquisition. Most notably, the two bolt-on acquisitions add over 100 high return locations, directly offset our core Parkway position, which represents one of the highest returning assets within our portfolio. This is in addition to a sizable acreage swap, a non-core divestiture, and our ongoing ground game. Importantly, when you combine all of our portfolio management efforts from the last year, our inventory additions more than replaced the wells we drilled on a standalone basis. We believe that excellent execution on these type of difficult transactions and smaller deals is a great path towards material improvements in our inventory position, NAV, and overall value proposition to stakeholders, and will continue to be a key focus for us going forward. Our excellent Q4 results and increased free cash flow allowed us to deliver total return of capital of $0.24 per share to shareholders during the quarter. We announced a $0.05 per share base quarterly dividend, and we are excited to be able to demonstrate sustainable base dividend growth, as we plan to increase our base dividend by 20% to $0.06 per share next quarter. In addition, we remain committed to paying 50% of the remainder of free cash flow to shareholders via dividends and/or buybacks, and once again, we executed both methods of variable returns during the fourth quarter. First, we repurchased a total of five million shares at an aggregate price of $13.32 per share for the quarter, and consistent with our framework, we announced an incremental variable dividend of $0.10 per share, bringing the all-in quarterly return of capital to $0.24 per share. As I mentioned before, our team has absolutely hit the ground running with the integration and synergy capture phase of the Earthstone acquisition. We are well ahead of schedule, giving us high level of confidence that we will be able to beat the original synergy target timeline laid out in August. Importantly, drilling and completion costs and efficiencies were realized almost immediately at closing, with a 12% D&C savings per well already realized on the legacy Earthstone wells and more to come. I want to take a second to highlight the amount of effort that's gone into that 12% cost reduction per well since closing the Earthstone acquisition, because it's not just swapping out rigs or changing a casing design. Slide 6 shows around 10 drivers, but in reality, it's close to 40+ small initiatives that add up to meaningful improvements, and our team has not stopped pushing on those efforts. Two of the largest savings, drilling and completion efficiencies, have improved by 35% and 20% respectively versus historical Earthstone results, as equipment has been high graded and best practices have been shared across the unified team. These faster drill and completion times both reduce costs and improve returns by shortening cycle times. Our field operations team has also made incredible progress on the LOE front, optimizing production operations in many large and small ways. We couldn't be more pleased with the synergy results to date and look forward to providing another positive update next quarter. The same relentless focus on low cost leadership that allows us to maximize synergies in the Earthstone acquisition also allows us to drive controllable cash costs to peer-leading levels. Our 2024 plan, which James will outline here in a minute, benefits from lower than expected all-in costs, with the combined business able to basically get back to PR's legacy cost structure despite higher historical Earthstone costs. Given the marginal nature of free cash flow, running a low-cost business is critical to supporting strong free cash flow per share generation. With that, I'll turn it over to James to talk through 2024 plan. Thanks, Will. Turning to slide 8, we're excited to discuss our 2024 development program, which is focused on maximizing returns and free cash flow per share through thoughtful capital allocation and efficient, low-cost execution. Our plan is a result of a tremendous amount of work from every department at Permian Resources, and we want to thank our entire team for the work that went into this plan. Our goal is to focus on high return developments in the Delaware Basin that allow the company to maximize returns while ensuring we minimize any future well or location degradation. Fortunately, our robust inventory allows us to drill similar zones, areas, and packages to what we drilled in 2023, and as such, achieve similar well productivity. For the full year 2024, we expect total production to average between 300 and 325 thousand BOE per day, and oil production to average between 145 and 150 thousand barrels of oil per day. We expect production to be in the lower half of the full range during the first half of 2024 and the upper half during the back half of the year. Our capital program consists of approximately $2 billion, of which 75% is allocated to drilling and completion operations. We expect to turn in line 250 wells this year. The balance is primarily investments in infrastructure that position PR to continue to drive value in 2024 and years beyond. In terms of CapEx cadence, we expect CapEx to be slightly front half weighted. Our drilling program is largely focused on our high-returning Delaware Basin asset, with a particular emphasis on the New Mexico portion of the Delaware, given the returns we are seeing from those assets today. The Midland Basin will not be a substantial part of our development plan in 2024. As Will mentioned, we expect our controllable cash cost to be approximately $8 per BOE, which screens well relative to other operators in the Permian and is particularly impressive given the higher legacy cost structure that came over from the Earthstone assets. Turning to slide 9, we want to concisely lay out how our business is getting better this year through the lens of capital efficiency-related metrics. Simply put, in 2024, we expect our costs to be lower and our well productivity to be the same or slightly better than last year, which is a winning combination. We would also like to highlight that these improvements in capital efficiency do not come easy. Our team is focused on maximizing value by analyzing every input into our model on a per unit basis and looking for areas to improve. We moved very quickly in leveraging our increased size and scale to receive better pricing on key consumables, such as casing and sand, but some key input costs, such as drilling rigs and pressure pumping, remain at elevated prices as we head into 2024. Our team continues to find ways to do more with less, and we are always looking for ways to tweak and optimize well designs and find that these individual changes only reduce costs by a percentage point or two, but the cumulative effect adds up to real dollars when multiplied over a 250-well program. This hard work drives our basin-leading cost structure and really makes a difference in our ability to extract as much value from every single asset as possible. I'd like to conclude today's prepared remarks on slide 11, which helps to reemphasize our value proposition for current and future investors. Since the formation of Permian Resources, we have delivered best-in-class returns for our sector and meaningfully outperformed the S&P 500. This outperformance was largely driven by successful execution, low-cost leadership, and accretive acquisitions. As a result, our business continues to represent a compelling value proposition against other large cap oil companies. With some of the recent deals announced, there are fewer and fewer Permian pure plays solely focused on the highest returning basin in the Lower 48. It's worth emphasizing that Permian Resources now sits in the new class of large cap peers with an enterprise value of greater than $15 billion and 100% of our business focused on the Permian. It continues to be our belief that quality businesses such as ours, with core assets in the Permian, efficient operations, and strong production and free cash flow per share growth, have room to rerate to higher multiples. By continuing to cultivate and enhance these attributes through efficient execution and opportunistic transactions such as Earthstone, we believe that we can continue to create outsized value for shareholders and solidify our position as a leader in the energy sector. Thank you for tuning in today, and now we will turn it back to the operator for Q&A. Thank you. Ladies and gentlemen, we will now conduct the question and answer session. If you have a question, please press star followed by the number one on your touchtone phone. You will hear a three-tone prompt acknowledging your request. If you would like to cancel your request, please press star two. Please ensure you leave the handset if you're using a speakerphone before pressing any keys. Your first question comes from the line of Scott Hanold from RBC Capital Markets. Your line is now open. Yeah, thanks. You know, great quarter, guys, and you know, good to see those synergies coming in, you know, faster than expected. And you know, if we turn to page six, you know, where you kind of walk down the Earthstone costs to where they're at right now, could you give us a sense of as you look at the current cost and bring that down to the PR legacy costs? Like, what are really the areas where that difference is gonna be occurring, and how fast can you do those? And so is it drilling efficiencies, casing? Like, you know, what gets you to the PR well cost, and how quickly can you get there? Yeah, look, I think we've made. frankly, we're way—we've gotten here way faster than I thought we would be. If you think about the five Earthstone rigs that we picked up, we've already swapped out three of them just three months post-close, and we're able to get our casing design implemented effectively day one. We were in a fortunate position they didn't have a big backlog of casing that we had to chew through before we could start running our wellbore design and our casing. So that's how we were able to achieve such dramatic cost reduction in just three months. And if you think kind of what's on to come, it's the stuff—it's not the kind of pricing power. We've already implemented all that. It's more kind of to go build the last bit of efficiencies across all the Earthstone equipment. So we've got two more rigs that we'll have to kind of either get up to our standards or swap out over time. We'll have to, kind of continue to drive a few more efficiencies on the drilling and frack side, but, you know, we're, we're more than halfway there to where we're trying to get to, and we've done that in just three months. So I'd say we're, we're feeling really good about both the absolute quantum of dollars that we'll be able to cut from the Earthstone well cost and also the time to get there. Understood. As we think about the 2024 activity and budget, you know, it looks like it's sort of maintaining your current pace coming into the year. But, you know, with you all, you know, seeing better, you know, efficiencies and performance, you obviously pulled a few wells into 2023. Would that allow you guys to reduce the well count next year and the rig count? Or would you guys, you know, just produce at a higher level if your efficiencies continue through next year? So it's really a question on, you know, pace of next year, and if you keep going faster, will you just kind of keep rolling through that? Yeah, I think there's, there's two answers I'll give. I'd say first, just as we think about pace of activity, I'd say just as our business has gotten bigger and working interest moved around a little bit, we're, we're much more focused on kind of the total quantum of dollars that we want to reinvest, kind of what is the capital dollar budget? And I'd say that's kind of how we're thinking about activity. I think as you follow this year, we've got 12 rigs running today, and you could see that number kind of move up and down around, you know, 11-12 throughout the year, just as we're optimizing both the rig fleet as we continue to swap out and bring in better rigs, but also kind of optimizing around larger pads, et cetera. So more of a focus on I think you'll see a relatively consistent capital profile around that total capital budget of $2 billion. And then, yeah, as you get to year-end and you get to these weird things where, you know, are we gonna—if we bring wells into the quarter, are we willing to spend more and whatnot? I'd say we'll take it on a case-by-case basis. But, you know, historically speaking, when our per unit costs are the lowest they've ever been because efficiencies are the highest they've ever been, and returns are very, very good like they were at the, you know, in Q4 just two or three months ago, we lean towards we'll go ahead and kind of bring the extra wells on, add the value of the business focused on the long term, as opposed to doing some kind of cute things on a quarter-to-quarter basis. Great. Makes sense. Thanks. Your next question comes from the line of Neal Dingmann from Truist. Your line is now open. Morning, guys, and thanks for the time. My first question, just going right to well productivity, looking at slide 10. Specifically, Will, I'm just wondering how repeatable is this production, not only in Lea and Eddy Counties, but you know, as you go down into Texas? And then I'm just wondering, as you continue to plan throughout this year, maybe more into next year in 2026, should we assume more child wells or sort of the same mix as you've always had? No, I think it'll be very, very similar. I can speak very specifically to kind of 2024 to 2025, because we've already got, you know, basically 2025 schedule kind of all lined out, and it's, it's a very, very similar well mix. You know, our, our development methodology really hasn't changed from 2022, 2021, 2023. Now you're seeing it in 2024, and you'll, I'd expect you'd see this again in 2025 and 2026. Just, you know, we are kind of methodically marching across the position, joining the right-sized pads to make sure to minimize kind of any future degradation, and you're seeing kind of that flatten out the capital efficiency. So I should be quiet, kind of no, no story. No news is good news on the well productivity side for us for the years to come. That's fantastic to hear. And then, well, for you, James, just on my second is just on your ground game. You know, while you've done a great job, Earthstone and some larger deals, which have been very notable, could you speak to the degree of upside that the bolt-on trades and grassroot efforts will continue to provide? Because it seems like that certainly was, a big deal even here recently. Yeah, I mean, we obviously put out that release in January that went through a lot of that detail. I have a slide in the back here, but I, I think our ground game in, in the Delaware is awesome. We've got an incredible land team, an incredible business development team, that kind of every day are out there, you know, doing deals, looking to accretively add acreage in, in places a lot of people aren't looking. So I really cool some stats, I mean, I think you've seen this, but we did 145 acquisitions last year that added almost 17,000 net acres to our position. I think that's just a, a little piece of the PR secret sauce that, that drives value in, in, in a different way than I, I think a lot of our peers are. It's something we think we can continue to do. I'd say those small deals, you know, the pipeline still feels really good for 2024 and 2025, and I think we're confident we continue to get the right deals done at the right prices. Great, guys. Thanks. Thanks, Neal. Thanks, Neal. Your next question comes from the line of Gabe Daoud from TD Cowen. Your line is now open. Thanks, guys, thanks for taking my questions. I guess what I would like to hit on first is just you talked about the increasing pad size, and you obviously highlighted the targets that you'll be going after in the Delaware. I was just wondering if you could overall refresh our memory on where the pad size or project size is going this year relative to last year, and then just what the spacing kind of looks like for this year in the Delaware? Well, yeah. I mean, it ends up being a couple wells per pad bigger than where we were last year. But this isn't really a change in kind of spacing or anything from a development perspective. It's more just as we look at the footprint of the acreage we're drilling, we've got some wider fairways than maybe we had the year before, which calls for slightly larger pads. So I—you know, it's factually correct. Our average pad size will be a couple wells higher this year than it was last year, but I wouldn't view that as any bit of a change in kind of development philosophy. It's more just the acres that we're drilling this year calls for slightly larger pads to keep with a consistent development methodology and really nothing more than that. Okay. Got it. Understood. Thanks for that. And then I guess as a follow-up, could you maybe just talk a little bit about that 25% non-D&C capital? What kind of infrastructure projects, and is that a similar level of spend we should expect on infrastructure in 2025 and beyond? No, I look, really, what it is this year is it's a little bit of catch-up on the Earthstone side, just kind of some stuff where we want to go, kind of build out some batteries and some stuff the PR way. So there's a little bit of kind of incremental catch-up cost this year with Earthstone and a little bit of kind of some on the gathering side to make sure that we're continuing to have, you know, really, really good takeaway in New Mexico, like we've always had. But I think of it more as kind of one-time in nature, and as you look forward, we're probably back to that, you know, I don't know, 15% or something like that on a total percent of capital budget for infrastructure spend. Cool. Got it. Thanks, guys. Your next question comes from the line of Zach Parham from JP Morgan. Your line is now open. Morning, guys. Thanks for taking my question. First, we've heard from some of your peers about some natural gas processing tightness in New Mexico that's been a headwind. Has this been an issue for you all at all? And maybe talk about, you know, how you've managed this issue and if you see anything impeding the 2024 program as far as a processing standpoint. No, Zach, I mean, we're in the really fortunate position that we've got the right long-term midstream partners in New Mexico. I think we said it on calls in the past, that fortunately, we're partnered with some of the kind of biggest and best natural gas processors and transporters in the basin. That's kind of both in New Mexico and Texas. And looking back historically, we've really never had any issues and don't foresee anything going forward. I think, you know, that's just kind of being in the fortunate position to have the right partners in the right places, but we don't foresee any issues whatsoever on the midstream side. Thanks. My follow-up is just on cash taxes. You guided $75 billion in cash taxes for 2024. Can you give us some color on how you expect cash taxes to trend in 2025 and in future years? Yeah. I mean, we'll start getting closer to a, you know, normal course cash taxpayer beginning in 2025. You know, we have some sensitivity in 2024 to oil price, obviously, but we'll—we have NOLs today, a meaningful portion of which we're using, and we'll start trending to more cash taxes in 2025 and beyond. Thanks, guys. Your next question comes from the line of Oliver Huang from TPH. Your line is now open. Good morning, all, and thanks for taking my questions. Good morning, Oliver. Great quarter, and you all have obviously done a good job with integrating the Earthstone assets ahead of schedule. But just wanted to see if you all might be able to provide some incremental details to help us better understand the drivers of LOE moving sustainably lower for both Q4 and for the 2024 guide being so quick, just kind of looking at where the figure was just six months or so ago as from the standalone Earthstone business? Yeah, I think it's kind of the big drivers in LOE. There's kind of two or three things that we're working on. I'd say one, just to give the Earthstone core team some credit, is that their LOE was improving quarter over quarter pre-close. I mean, it was, I think we've applied some best practices and some things that have kind of helped accelerate that and maybe have a slight step change from where it was headed. But that LOE was kind of coming down on its own, so there was a little bit of tailwind there. I'd say secondly, just the overall kind of production profile in Q4 and go forward helps, you know, kind of a bigger denominator obviously is gonna help on the LOE side. And then probably the more sticky stuff would be what we're doing on the water disposal side and how we're addressing kind of failure rates and really kind of optimizing artificial lift for the right well set. We've got kind of the best practices at PR are we don't, we're not a blanket gas lift company, we're not a blanket ESP company, we're not a blanket rod pump company. It's really we challenge every engineer over every area to it's built to suit. It's go put the right lift that the well needs, which will give better runtimes and lower LOE, and we've been really successful. You know, if you go out to a PR pad across the Delaware, you may see a different lift type and, you know, two wells that are very close to each other in the same area because that's what they call for, and you're starting to see kind of the benefits of that pretty quickly. So, there's a lot more to come there. Look, I think that we can do some stuff on the water disposal side in a bigger way. You know, we've had some quick wins where we had good water contracts or good water disposal solutions or water recycling solutions in areas that Earthstone wells didn't have that tie-in, and which were kind of write-offs at us. But go forward, I'd expect we'll continue to tackle the LOE side on the really with the respect to water. Okay, that's certainly helpful. And maybe for a follow-up, I mean, definitely good to see some of the drilling and completion efficiency improvements starting to be realized right off the bat for Earthstone. But, just with the understanding that there's still solid running room to kind of converge those well costs towards the legacy PR business, just wanted to see how much of that future benefit has already been taken into account when kind of looking at the, D&C budget that you all have laid out for this year? It is taken into account. So I, you know, I'd say from what we have line of sight on and expect to get all of it, obviously, we're hopeful and kind of doing everything we can to try to get more, but the budget does take into account those synergies that we have achieved to date and expect to achieve between now and year-end. Awesome. Appreciate the color, guys. Yeah. Thanks, Oliver. Your next question comes from the line of Leo Mariani from Roth MKM. Your line is now open. Hi, guys. It's very, very strong production here, you know, during fourth quarter, and I was hoping you could provide a little bit more detail. I mean, did you get some, some extra wells on, were there some extra non-op, you know, benefit? Obviously, you just had, you know, very strong growth in, in both oil and in total volumes. And I guess my understanding was that you maybe had few-- quite a few more wells, that were turned in line this quarter versus last, but perhaps I'm mistaken. So maybe you could just provide a little bit more color on the dynamic there. Yeah, I mean, I tried to, I tried to address some of it in the script, Leo. I'd, I'd say the, the biggest driver would just be well outperformance. The, the Earthstone—the legacy Earthstone wells and the PR wells you brought online in the quarter just outperformed even our expectations. So that's gonna be kind of more than half of the volume beat for the, for the quarter. The balance is gonna be made up of. We were, we were able to make some material progress on downtime on the Earthstone assets, in Q4, kind of a, a step change in less downtime, so better runtime than kind of what we had budgeted for and what we've seen historically, which, which really helped with Q4 production. And then lastly, being we did bring some more wells into the quarter. I don't know the exact numbers. It was a couple of wells. So, you know, a couple of wells with some, some meaningful amount of producing days into the quarter that were expected to be in 2024. And again, that's just gonna be—we didn't expect to start drilling, you know, 35% faster and fracking 20% faster on the Earthstone assets effectively day one, and, and we were. So that just kind of brought some activity into the quarter. Okay. No, that's, that's helpful in terms of all that color. And then just looking at, you know, 2024, I think you guys did mention that CapEx is a little bit, you know, front-half weighted. I mean, you generally expect it to decline, you know, during the, the course of the year, and I'm guessing production is maybe a little bit of a mirror of that. Would you generally expect first quarter to be the low on production and it to kind of, you know, build a bit throughout the year? Just any color you have around kind of cadence in 2024 would be helpful. Yeah, I think how you said it is right. CapEx is a little bit front-half weighted, and production's a little bit back-half weighted, but it's not giant swings. I'd say it's kind of, it's pretty modest, but what you said was just right. All right. Thanks, guys. Thanks, Leo. Your next question comes from the line of Doug Leggate from Bank of America. Your line is now open. Hey, good morning. This is John Abbott for Doug Leggate, and thank you for taking our questions. The first question is just on your Midland position. Just, just what is your current production on that position? And then just given the continued interest in Permian assets, what is your latest thoughts on, on what you do with that position and also the possible timeframe? Yeah. So the Midland position is about 20,000 barrels of oil per day and about 60,000 BOE a day, and. It's a great cash flow business. I think the Earthstone team and our PR team have that in a really good place where we've got, you know, consistent low declines, low cost, et cetera. So we like having it. You know, I think I'd say, you know, we're doing a couple of wells on that asset the first half of this year, and pretty excited about what our team has done to date, just on the cost side. I think there could be some, you know, meaningful cost reductions there that are a big boost to the value of that asset. But, you know, I think over the long term, we've been really clear we're a Delaware Basin-focused business, and that's where the majority of our capital, our time, and our energy are focused. So I don't think we're gonna do anything strategic with the Midland Basin asset in the near term, but I think over time, as we better understand that asset, if there's ways to extract more value other than owning it, I'd say we're kinda all ears. But I'd say that's probably down the road, most likely a 2025 type of thing, if we look to do anything at all. Appreciate it. And then for our follow-up question, while it is not your focus necessarily, how do you sort of think about long-term maintenance CapEx? I mean, do you sort of look at the midpoint, your guide, and it's several $100 million less than that. How do you think about long-term maintenance CapEx for your business? Yeah, I think that's right. I mean, just given all the kind of integration and acquisitions over the last six months, it's kinda hard to peg what production level you're calling maintenance. But I think if you're gonna predict kind of peg kinda where we were in Q4 or where we'll be in Q1 for. And then kind of maintenance CapEx to be exactly what you said. I think it's about $200 million less than the midpoint of the guide, something like that. All right. Thank you very much for taking our questions. Yep. Happy to do it, John. Your next question comes from the line of John Annis from Stifel. Your line is now open. Hey, good morning, guys, and congrats on the strong quarter. For my first question, digging further into your comments around down, downtime, what was Earthstone's primary, primary source of downtime, and what were some of the specific practices in the field you've implemented to minimize it? Look, there's two ways to attack downtime. One is lower failure rate. Just kind of the easiest and most sticky, best thing to do is lower failure rate. And although I think that is in progress, that takes a little longer. And the second is, when wells go down, you just get on them quicker. You know, try to have turnaround time on a well that fails, be a day or you know, measured in a day or measured in hours, not measured in a week or weeks. And, well, it's a little bit of that. It's a little bit of kind of what I said. There are some tailwinds on the Earthstone asset. The team have done a good job of starting to address some of these problems over the last six months. So we kinda stepped in at a time where we were set up to succeed, and I think, you know, the people on the Earthstone team that become part of the PR team are excited to kinda do things the PR way and really jump headfirst into it. And so, you know, we've picked up the low-hanging fruit, things like that. I think where we'll go get now is hopefully kind of really start to improve runtimes, which is the best way to lower LOE and increase runtime. Terrific. For my follow-up, referencing slide 7 and where you stack up against peers in terms of cash costs, it's, it's quite impressive, especially with the Delaware being a little heavier in water production. What's your sense of the biggest delta between you and other Delaware, Delaware operators? I think. I mean, what helps us, if you compare to other operators really in general, one is we don't have a lot of old vertical wells. You know, we've got relatively clean, new horizontal production, which really helps keep costs down. I think it's a great asset of ours. We don't have a, you know, a lot of vertical wells that kind of increase the cost structure. And then we have great assets. If you think about where our assets sit within the Delaware Basin, although I think it's a fair statement that there's more water on average, we're in some of the oiliest places in the whole basin on a oil cut percentage. We're not in any places that have, you know, or very few places that have, like, high H2S treatment, none of the stuff like that. We are in the kind of basinal core of the basin. And then, look, this is what we do. We are a low-cost operator. We focus on controlling the things that we can control. You know, we try to be the lowest on the D&C side, the lowest on the LOE side, and the lowest on the G&A side. And so I think that's what shows up here. I think the only thing I'd add to that is we have a real awesome culture in the field with an ownership mindset. Like, I think we spend a lot of time answering questions on management ownership, management stock, et cetera. But I think what's honestly probably more impactful than that is that ownership mindset in the field, where our team is incredibly proud of what they do and work incredibly hard in the field to fix wells as soon as they go down and kinda waste no time, waste no effort in kinda getting the right things to run the business the right way done. So I think it's that ownership mindset that we've talked about a lot at the top, but really permeates through the entire Permian Resources organization, that I don't think that gets enough credit. Great color. Thanks for taking my questions. Your next question comes from the line of Paul Diamond from Citi. Your line is now open. Thank you. Good morning, all, and thanks for taking my call. Just a quick one on valuation. You talked about the potential opportunity for, you know, you and similarly sized peers to rerate versus the larger. Just want to get your, get a bit more detail on what type of catalyst you think or you anticipate to see to kinda close that gap. Yeah, I mean, I think for us, it, I think it's all about execution. You know, I, I think we, I think the market has started to realize the quality of our business looks a lot more like the other Permian pure plays than, than other large caps, albeit at a smaller scale. But I think over time, as we can continue to execute quarter in, quarter out and year in, year out, you know, I think that, that re-rating happens on its own. I think it's kinda, it's kinda too obvious to miss, and the most important thing for us is to execute and continue to be the lowest cost operator in the Delaware. Understood. Thank you. Just a quick follow-up. As you guys, you know, think about the go-forward cadence on D&C improvement, you already captured that 12%. We know some more is coming from the full integration of Earthstone. I'm just trying to get an understanding of you guys' view on the quantum you can expect going forward, like, in the late 2024 and 2025 and beyond. I think it's, you know, it's two different ways to think about it. I think on the Earthstone asset specifically, we expect over the coming months, those costs to converge with the legacy PR costs, where we don't really talk about legacy Earthstone or legacy PR anymore. It's just these are Permian Resources well cost by area. And that's well on its way and expect to be there in short order. And then what does that mean for absolute, you know, PR D&C costs? What we laid out is this $860 a foot is kind of the guide for the year this year, and that's based on what we're seeing, you know, real-time today. So, you know, we're not baking in further efficiencies or further deflation. I think there's. We're hopeful we'll get a little bit of each of those kind of over the coming years. But again, you know, we've made a ton of progress recently, and I think kind of more expected to see that kind of gradual decreases in cost, no more of the kind of step changes seen over the last four quarters. Understood. Appreciate the clarity. I'll leave it there. Yeah, thanks. Your next question comes from the line of Phillips Johnston from Capital One. Your line is now open. Hey, guys. Thank you. First, just to follow up on Neil's question on well productivity. Slide 9, you show an expected 3% increase in your average productivity this year versus last in the Delaware. Is that mainly a function of the geographic mix shifts with, you know, 70% of your activity going towards New Mexico than versus the 40% last year, or there are other factors driving that? No, well, mix would be the biggest factor there. You're, you're spot on. Okay. I assume that's all baked in your 2024 guidance, right? Yes. Yeah. Okay. And then just last question, just next 12-month PDP decline that Netherland, Sewell & Associates assumed in your year-end 2023 reserve report, and would you expect that decline rate to change significantly between now and the end of this year? Sorry, what's the second part of that question again? Can you repeat that real quick? Yeah, just, I'm looking for just a PDP decline rate that Netherland, Sewell & Associates assumed in your reserve report, and then, just as a follow-up, would you expect that decline rate to change significantly between now and the end of this year? I can't say offhand what the Netherland, Sewell & Associates reserve report says, but I can say what we say, which is it's in the low 30s, kind of low- to mid-30s on a BOE decline. Then, do I expect it to change? Sure, yeah. Every year it should, you know, especially years where we're not having the significant amount of growth like we had last year, you'll see that decline will slowly arrest. I'm not sure it's gonna be, you know, super significant, but yeah, that decline will continue to shallow out between now and year-end. Yep. Okay. Makes sense. Thank you. Your next question comes from the line of Subash Chandra from Benchmark. Your line is now open. Yeah, thanks, guys. The 150-ish type, you know, transaction, 17,000 acres, I think the metrics you threw out. What do you think the dollar per location math has worked out to? You know, we haven't-- we kinda intentionally haven't published that in a lot of these, especially smaller transactions. I, I think there's probably some competitive dynamics that are important to keep tied to the vest and some, frankly, some confidentiality there. But, you know, I, you know, I'd say the dollar per location is gonna, you know, be in the pretty low single-digit millions, if that, if that gets you in the right direction. Yeah. Yeah, I guess directionally, that's cool. And then secondly, you know, on the integration costs, are they all done at this point, or should we see anything kind of flow into 2024? Well, 20, about 20 in the first half of the year. Another $20 million? Yeah. Got it. Okay. And then done. Uh, thanks. There are no further questions at this time. I will now hand the call back to James Walter for closing remarks. In closing, I just want to say that we believe our Q4 2023 results and our 2024 go-forward plan speak for themselves and demonstrate just how good our Permian business is. As the lowest cost operator in the Delaware Basin, we believe that we are positioned to continue to generate significant returns for our shareholders as we build our track record of consistent low cost execution year in and year out. Thanks to everyone for joining the call today and following the Permian Resources story. Ladies and gentlemen, this concludes today's conference call. Thank you for your participation. You may now disconnect.