Good day, ladies and gentlemen, and welcome to the Vital Energy Permian Acquisition Conference Call. My name is Krista, and I will be your operator for today. At this time, all participants are in a listen-only mode. We will be conducting a question-and-answer session after the financial and operations report. As a reminder, this conference is being recorded for replay purposes. It is now my pleasure to introduce Mr. Ron Hagood, Vice President, Investor Relations. You may proceed. Thank you, and good morning. Joining me today are Jason Pigott, President and Chief Executive Officer, Bryan Lemmerman, Senior Vice President and Chief Financial Officer, as well as additional members of our management team. During today's call, we'll be making forward-looking statements. These statements, including those describing our beliefs, goals, expectations, forecasts, and assumptions, are intended to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Our actual results may differ from these forward-looking statements for a variety of reasons, many of which are beyond our control. In addition, we'll be making reference to non-GAAP financial measures. Reconciliations to GAAP financial measures are included in the press release and presentation we issued this morning describing our acquisitions. Press release and presentation can be accessed on our website at www.vitalenergy.com. I'll now turn the call over to Jason Pigott, President and Chief Executive Officer. Good morning, and thanks for joining us. We're excited about today's news. These transactions are a game changer for us and fit our strategy of adding long-term value through disciplined acquisitions. These deals nearly double our free cash flow and will allow us to rapidly reduce debt and strengthen the balance sheet. We will be bigger, better, and more sustainable on the road ahead. There are several things I would like to highlight this morning. First, these acquisitions are highly accretive and compare favorably with recent Permian transactions. We expect that our 2024 adjusted free cash flow will increase by nearly 90% at $80 oil. We have hedged volumes associated with these deals to ensure returns, cash flow projections, and the achievement of our leverage targets. Second, these transactions are expected to decrease our pro forma leverage to less than 1x by year-end 2024 at $80 oil. We are committed to a strong balance sheet. The third point is scale, which is critical in today's energy sector. In addition to our earlier Driftwood and Forge deals, today's acquisitions will add more than 50,000 net acres and 35,000 barrels of oil equivalent per day, of which half is oil. We will soon have more than 250,000 net acres and expect that our 2024 production will average about 112,000 barrels of oil equivalent per day, or 25% higher than we would have been on a standalone basis. Fourth, these transactions fit well with our existing asset base. In the Midland Basin, Henry's assets directly overlap with our existing Upton County acreage. In the Delaware, all three transactions complement the Forge acquisition and create a large, contiguous acreage position in Reeves County. We will have about 70,000 net acres in the Delaware. Fifth, these transactions will enhance our capital efficiencies through financial and operational synergies. As we have shown, our scale, operational improvements, and adoption of technology will allow us to deliver production and cash flow at lower capital costs. You will see in today's outlook on slide 7, we plan to decrease activity levels on the acquired assets by about 50% when compared to prior operators' activity levels. Lastly, these transactions further extend our high-value, oil-weighted Permian inventory and add 150 gross locations with a break-even of $50 per barrel. Upon closing, we will have more than 8 years of inventory at our expected operational pace. As we think about delivering value to our shareholders, we know that equity valuations in today's E&P sector are heavily correlated to scale, balance sheet strength, and sustainable return of cash flow to shareholders. Today's transactions materially advance our position with respect to all of these metrics, will be larger and more profitable in the nation's best oil basin. It increases our Permian acreage and our average 2024 production by 25%. Our leverage ratio will drop about a half a turn to 1.0x at year-end 2024. In addition, our borrowing base increases, and we help ensure access to capital at more attractive rates. As we push leverage below our 1.0 target, we expect to initiate a competitive cash return program for shareholders. Simply put, these transactions enhance free cash flow in our capital structure, they rapidly accelerate debt reduction, and they create additional scale and synergies in the prolific Permian Basin. This concludes our prepared remarks. Operator, please open the line for questions. If you would like to ask a question, please press star followed by the number one on your telephone keypad. We ask that you limit yourself to one question and one follow-up. Your first question comes from the line of Derrick Whitfield from Stifel. Please go ahead. Good morning, Jason and team. Congrats on the impactful transactions you've announced. Thank you, Derrick. We're really excited about it. Terrific. With the premium paid relative to your valuation, I wanted to ask if you could elaborate on the areas where you could call back value from an operational and capital cost basis relative to your underwriting assumptions? Yeah. Thank you, Derrick. It's a good question. Again, a lot of the future synergies have not been incorporated into the guidance we've got. As you've seen the last few quarters, we've been on a steady pace of outperforming. So we've got, again, better wells to drill in the future and lots of opportunities for the teams to optimize. So I'll turn it over to Katie for just a second. She can kind of tell you about maybe a few of the things we've done with Forge and those-how those opportunities might translate into these assets. Hi, good morning, Derrick. This is Katie. I think that one of the really exciting things about these assets is that it's really a complementary fit to the existing acreage position as a portfolio. We have a, like Jason said, a proven track record this year of really successfully integrating our acquisitions and excited to get our hands on these assets. I think from an immediate standpoint, we see some capital efficiency improvement through schedule optimization and really steady development in the area. This allows us to pick up a fourth rig and effectively stabilize our completion schedule, so there will be improved 2024 capital efficiency from that. We also immediately see benefit from our surface infrastructure. So Henry, on the Midland side, has a existing water system that we'll be able to integrate into our, legacy assets, and then there's existing infrastructure on the Delaware side for both water and electricity, electrical. So, pretty excited to take advantage of that in the end of 2023 into 2024. As we think longer term, some of the capital efficiency gains that we expect are really through supply chain optimization and scale. We'll be able to further optimize our development schedule, and then ultimately, we're working on integrating, these assets under our operating platform and utilizing the technology that we've talked about over the last three quarters as we've continued to beat guidance. So excited to get to work on these. We'll be really focused on integrating over the next, you know, 60 days or so, and then, we'll get to work. Looking forward to it. Terrific. As my follow-up, wanted to ask a question about the location count assigned to the transaction. It certainly appears conservative relative to the amount of acres acquired. Could you speak to the intervals and spacing assumed broadly by basin and offer perspective on the amount of inventory upside you could prove out over time? Yeah, this is Jason. Again, we're really excited about this opportunity, and we've been conservative in the past and always find ways to, again, add more inventory. But I'll turn it over to Kyle. He can tell you a little bit more about that and again, how we think about spacing in the different areas. Yeah, Derek, this is Kyle. Yeah, to your point, if you look at our history, we have a track record of you know underwriting assets with a conservative approach and then ultimately adding inventory over time. So if you look at Sabalo, we've added the Middle Spraberry, which we didn't underwrite whenever we valued that transaction. If you look at Pioneer, we've added Wolfcamp D that we didn't underwrite. If you look at the Driftwood assets, we think there's multiple benches of opportunity there that we didn't underwrite and then announce at the time of the announcement. So we have a track record of doing this. This is kind of how we value assets and how we integrate them. If you look at how we. If you look on page 5 of the deck that we've released, you can see where we've attributed the inventory for this deal. We've got 100 locations on the Delaware side that's gonna be in the Wolfcamp A and the Wolfcamp B at a 4-well per section spacing assumption. On the Midland side, we really have a lot of stack pay there, so we have pay intervals all the way from the Middle Spraberry down to the Wolfcamp D. When you're up in Midland County, Middle Spraberry is kind of the key opportunity that we're looking at there. As you look down into Upton County, it's in the Wolfcamp A and Wolfcamp B, are kind of some of your core targets down there. Your next question comes from the line of Geoff Jay from Daniel Energy Partners. Please go ahead. Hey, guys. Congrats on the deal. I was just kind of curious how your forward program that you're contemplating next year is gonna sort of, you know, be structured between the, you know, sort of previous standalone Vital assets and the newly acquired stuff? Yeah, I'll let Kyle talk to you about that. Yeah, this is Kyle again. So, you know, ultimately, the pro forma case adds one rig of development. So Henry had a rig running, and we're gonna keep one rig running. But that rig is gonna be split between the Midland assets they have and the Delaware assets they have. The current plan, kind of as, you know, as we acquired it, is about two-thirds of the activity on the Midland side and one-third on the Delaware side, but we still have to get in and ultimately kind of think about that and optimize that development plan. But that's, that's kind of our current view. And then really, the three rigs that we had running before, we essentially have no change to at this point in time. You know, we will get in there and optimize that, but at this point in time, we don't have any change. So for those three that we had prior, one of those is running full time on the Forge assets on the Delaware side, and then the other two are dedicated to the Midland side. Of those two, half of their time will be spent in western Glasscock, a quarter of their time in Howard County, and a quarter of their time on the Driftwood assets. Gotcha. And maybe that moving back and forth between the Midland and Delaware for that fourth rig is why the TILs. Is that why the TILs for the fourth rig are fewer than for the sort of legacy three? It looks like if you kind of look at the number of wells you're trying to put it. Yes, sir. Okay, great. Thanks, guys. That's all. You're welcome. Your next question comes from the line of Gabriela Perez from MacKay Shields. Please go ahead. Hi, good morning. I just had one ESG-related question. Can you provide some details on the routine flaring that's occurring on the assets you're acquiring and how it impacts your plan to get to zero routine flaring by 2025? Yeah, this is Jason. Again, we've really been committed to reducing our environmental footprint out here. That's been the goal for us as a company on our what would be, have been a standalone asset. So when we look at new opportunities, I think we apply a lot more rigor than a lot of the companies we've acquired. We are committed to, again, reducing flaring, getting our total emissions down. We've actually achieved our five-year target of this year, last year. So I think these assets are definitely better in our hands just because we've got a much more robust approach to reducing our environmental footprint than a lot of other operators out there. We're excited to take on these assets and ultimately get the routine flaring to zero on all the assets that we've acquired. If you would like to ask a question, please press star one on your telephone keypad. Your next question comes from the line of Zach Parham from JP Morgan. Please go ahead. Hey, guys. Thanks for taking my question. Jason, you, you mentioned cash return in your prepared remarks once you got to one turn of leverage. Could you just give us some color on what that might look like, and maybe talk about how you'll balance cash return with inventory replenishment going forward? Yeah, I'll take the first stab at this and then turn it over to Bryan. Again, we're one of the great things about this acquisition is our ability to kind of nail down that time when we get to that less than one times. As we've mentioned, we've put in hedges to kind of lock in that date as much as we can for the end of next year, and then we've got lots of options available to us in a year to evaluate it. But I'll turn it over to Bryan to kind of go over the rest of that, but that's one of the keys to this transaction, is just accelerating the timing of that deleveraging. Sure. You know, as we've talked about, getting to 1x is kind of the benchmark for us, and when we get there, the plan would be to do like a regular way fixed dividend. And as we get to that point, we will also be looking forward for the next year or two to ensure that the balance sheet and the business can support that, and it's not something that we have to revisit. Along to your question about how do we balance that with inventory, we've stated that, you know, on a go-forward basis, we think a responsible approach to buying assets is a more balanced equity and cash consideration for those assets, and we target somewhere around 50/50. If we're able to do that going forward, balancing a fixed dividend program and acquiring assets and, you know, extending our inventory runway shouldn't be in conflict with one another. Thanks, guys. We have no further questions in the queue at this time. I will turn the call back over to the presenters. Okay. Thank you all for joining us today. Again, we are very excited about this transaction. Again, it nearly doubles our free cash flow outlook for next year. We're rapidly gonna be able to delever and strengthen our balance sheet. And as we just talked about, we are gonna be able to accelerate our pathway to a cash return program for shareholders. So these are transformational for our company, and again, look to seeing you on the third quarter earnings call. We'll talk to you later. This concludes today's conference call. Thank you for your participation, and you may now disconnect.