Infinity Natural Resources, Inc. (INR) Q4 2024 Earnings Call Transcript

Greetings and welcome to Infinity Natural Resources' fourth quarter and full year 2024 earnings conference call. At this time, all participants are in listen-only mode. A brief question and answer session will follow up to prepared remarks. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Greg Pipigan, Senior Vice President, Corporate Development and Strategy. Sir, you may begin.

Thank you, Operator. Good morning, and thank you for joining our fourth quarter and year-end 2024 Earning Results conference call. With me today are Zach Arnold, President and Chief Executive Officer, and David Sproul, Executive Vice President and Chief Financial Officer. In a moment, Zach and David will present their prepared remarks with a question and answer session to follow. An updated investor presentation has been posted to the Investor Relations portion of our website, website, and we will reference certain slides during today's discussion. A replay of today's call will be available on our website beginning this evening. I'd like to remind you that today's call may contain forward-looking statements. All statements that are not historical facts are forward-looking statements. Forward-looking statements are subject to a number of risks and uncertainties, many of which are beyond our control, that could cause actual results to materially differ from these forward-looking statements please review our earnings release and the risk factors discussed in our sec filings we will also be referring to certain non-gap financial measures please refer to our earnings release and investor presentation for important disclosures regarding such measures including definitions and reconciliations to the most comparable gap financial measures with that i'll turn the call over to zach thanks greg and good day to everyone we appreciate you

joining us for infinity natural resources first ever earnings call we are delighted to discuss our fourth quarter and full year 2024 financial and operational performance as well as to provide an outlook for the upcoming calendar year before we dive in i'm excited to share our journey with you and provide a brief overview of our company for those of you who are new to our story infinity is a leading exploration and production company focused in the appalachian basin our Our journey began with a vision to harness the region's potential, and today we stand as a testament to that vision. Like many of our employees, I was born and raised in Appalachia. I grew up about five miles from an area we operate in Ohio. Being local is an integral part of our company's DNA. The majority of our nearly 90 employees live, work, and call Appalachia home. Living and working in this area virtually our entire careers provides us with a competitive advantage, whether it's managing vendor relationships, securing leaseholds, or acquiring and developing assets. Our team's vast experience and strong local presence allow us to focus on true corporate drivers over individual departmental goals. Our team has worked together for the better part of 15 years our CFO David Sproul and I have worked together for over a decade our team's continuity and familiarity with each other not only allows us to enhance our operational and financial performance but helps us to establish a strong collaborative culture that emanates across our organization this past February we closed our IPO on the New York Stock Exchange which was a significant milestone for our company we would like to thank our financial sponsors, Earl Energy and NGP, for their instrumental role in our success. We share a common alignment focused on relative value, asset capture, and delivering incremental value through the drill page. Our partnerships have been a cornerstone of our growth and operational excellence. We appreciate their support and leadership as we embark on the next phase of our corporate vision. this is a starting line for infinity and we're excited about our ability to drive future value for all our shareholders that's our background now let's turn to our business balance optionality and discipline growth are the key attributes of our company we are uniquely positioned in appalachia operating in two distinct areas that provide exposure to either oil or natural gas The proximity of these fields to each other, comparable well costs, and similar drilling equipment requirements provide us with the ability to allocate capital quickly across our portfolio to maximize returns in the ever-changing commodity environment. We have a high-quality inventory base, characterized by long laterals, averaging roughly 14,000 feet across both of our areas of operations. that enable us to develop our resources while maintaining leading drilling costs and capital efficiency metrics in pennsylvania we have approximately 60 000 net horizon acres in the dry gas marcellus and deep dry gas utica shales providing 179 undeveloped locations at year end and representing approximately a decade of drilling inventory additionally we own and operate our own gathering system which further enhances our margins while providing operational and developmental flexibility in ohio we have approximately 63 000 net acres in the utica shales volatile oil window with 154 undeveloped locations at year end since our arrival to this area in the spring of 2021 we have been a leader in the development of this high quality oil weighted resource play in eastern ohio we have drilled 34 wells and operate 118 wells as of year-end 2024 our exposure to the well data across the play along with our operational activities provide us with unique insight into the development of this emerging resource play we are a leader in this play whether by operational performance or continued activity and we intend to remain such through our active development again balance and optionality so the deep inventory of long laterals across both plays is unique to any company but particularly to those who operate in Appalachia between our two areas we have a deep inventory of 333 undeveloped locations at year end representing 4.6 million lateral feet for approximately 19 years of inventory And remember, the proximity of our assets and development flexibility allows us to allocate capital quickly based on the commodity environment. Let me take a minute to talk about our recent natural gas project to give you a sense of the speed of our cycle times. Based on improving gas backdrop, we made a decision in early November to develop an additional natural gas project in Pennsylvania. we leveraged the preparation of our land and operations teams to take what was a farmer's field and construct our path in six weeks we brought a spot rig onto location in early january and expect the wells to be online by mid-year this is a very quick cycle time and is something that can only be done if you prepare to maintain for development optionality as you can see on page six we have targeted development based on the current commodity environment in 2024 we allocated more capital towards oil-weighted projects because it made sense to do so oil was strong and gas was weak frankly speaking our oil returns were better than our gas returns in that environment as we move into 2025 we are increasing our capital allocation to natural gas-weighted projects We have positioned the company to maximize our optionality to develop our high-quality resources when prudent. Balance is a key attribute of our company that allows us to develop our resources when the environment dictates. Throughout our history, we have maintained a strong balance sheet. We think the strength of our balance sheet represents a key attribute of our company, allowing us the flexibility to develop our asset base and capitalize on strategic opportunities. We have virtually no debt today. Our familiarity with the basin gives us an advantage in identifying and extracting value from acquired assets. As such, we have been highly active on the acquisitional front, adding 72,000 acres through various deal types since our initial acquisition. Our hit-the-ground running approach has been successful in quickly integrating and developing newly acquired assets and delivering exceptional results. In 2024, we executed our plan and delivered significant production growth while maintaining a strong balance sheet in financial metrics. Our production averaged 24 MBOE per day, comprised of 27% oil, 53% natural gas, and 20% NGLs. For 2024, that represented a production growth of approximately 28 percent overall. Of note, we grew our oil production by 97 percent year over year. All of our drilling and completion capex was funded through cash flow while we pursued strategic bolt-on acquisitions to expand our acreage footprint within the volatile oil window. For 2024, we acquired over 11,000 net acres in the volatile oil window in close proximity to our operational focus areas, adding multiple years of inventory to our program. We drilled 19 wells, 5 in Pennsylvania and 14 in Ohio, totaling roughly 254,000 lateral feet, and completed 14 oil-weighted wells in Ohio, representing 181,000 lateral feet. We elected to defer the completion activities of our natural gas-weighted wells until Q1 of 2025. We put into production six oil-weighted wells, totaling 82,000 lateral feet in late Q4 2024. We exited 2024 with seven ducts and two PD&P wells. Since year-end 2024, we have turned one of those PD&P wells into sales in early January and finished completing all seven ducks. As we made the decision to develop those wells, we utilized a disciplined hedging program to lock in our high-project DROIs. David will touch on hedging more a bit later. Building on our momentum from fiscal year 2024, Infinity's 2025 development program, as disclosed in our earnings materials released yesterday, reflects our continued focus on balancing capital allocation across both natural gas-weighted and oil-weighted opportunities. We intend to grow our production by approximately 40% year-over-year, based on the midpoint of our guidance, and anticipating funding our development entirely out of free cash flow. and 2025 development program is focused on maintaining a balance between our operational areas we will continue to develop our high quality oil assets in Ohio's volatile oil window of the Utica shale while increasing our activity in our natural gas weighted region in Pennsylvania our DNC capital budget for the year is 240 million dollars to 280 million dollars we intend to maintain a single rig for the entirety of 2025 other than using a second rig for the four well pad development in the marcellus dry gas that i mentioned earlier turning to our production our 2025 plan highlights a transition towards a greater balance between natural gas and oil weighted wells we continue to ramp and anticipate turning into sales more wells in 2025 than any other year in our history in 2025 we anticipate that our natural gas weighted wells will represent more than 35 percent of all wells put into production during the year regarding our oil-weighted assets we intend to turn into sales more oil-weighted wells than we did in 2024 in short we remain incredibly excited about the opportunities set ahead and are confident that we will be able to achieve our goals for 2025. Before turning the call over to David to elaborate on the results and our outlook, I would like to congratulate Greg Pipkin on his well-deserved promotion to Senior Vice President of Corporate Development and Strategy. His contributions to the company since his arrival have greatly assisted us in our success, and we thank him tremendously for that. David, the mic is yours.

Thanks, Zach, and good morning, everyone. I share Zach's excitement about our achievements in the promising future ahead. I also wanted to congratulate Greg on his promotion. To reiterate and expand upon some of the themes from Zach's remarks, at Infinity, we emphasize a disciplined approach to growth by developing high-return drilling inventory and optimizing return on capital with industry-leading cycle times and payback periods. Our expansive portfolio of low-risk, high-return oil and natural gas assets allows us to strategically capitalize on asset development while maintaining balance sheet strength. Our superior capital efficiency supports production growth and generates attractive free cash flow, positioning us for sustained success. Our strong organic cash flow is safeguarded through an active hedging strategy. This approach has enabled us to secure attractive discounted return on investments as we develop our projects. On the back of this, we are proud to complete our successful IPO in early February and raised $286.5 million in net proceeds. We issued 15.2 million shares via the offering and have an outstanding share count of $60.9 million as of today. With that said, let me now expand upon our quarterly and full year results. We reported an adjusted EBITDA of $46.2 million and $195.7 million for the fourth quarter and year-end 2024, respectively. Our adjusted EBITDA margin for calendar year 2024 increased to $22.20 per barrel of oil equivalent, representing a $3.87 per BOE increase over 2023. We believe our EBITDA margin to be the best among our Appalachian peers. operating costs for the fourth quarter and full year 2024 totaled $8.72 and $8.84 per barrel of oil equivalent respectively the company's focus on oil weighted activity and the greater weighting of liquids in our production mix led to an increase in both our 2024 per unit LOE and our 2024 per unit gathering processing transportation and compression costs relative to prior year period. For 2025, we anticipate these operational costs to decline on a per-unit basis due to the increased natural gas production in Pennsylvania, where we operate our wholly-owned midstream system. Despite the elevated operational cost experience in 2024, it is important to highlight that this increase was more than offset by the improved margin performance from our oil-weighted inventory. Our all-in realized price for the fourth quarter and full year 2024 was $32.12 and $29.22 per BOE, respectively, excluding the impact of cash-settled derivatives. This represented a year-over-year increase of $4.25 per BOE and $6.11 per BOE increase for the fourth quarter and full year 2024, respectively. despite a 20% reduction in natural gas prices during 2024 relative to 2023. We realized a cash hedging gain of approximately $28.4 million for the year while incurring an unrealized loss of $50.4 million. We anticipate remaining active with our hedge program throughout the calendar year. With respect to our current hedge position, for 2025, we have hedges covering roughly 36 BCF of natural gas at an average price of $3.58 per MMBTU. Additionally, we have 2.2 million barrels of oil production covered at an average price of $71.65 per barrel. With over 19 years of high return development inventory evenly split across oil and natural gas opportunities, we have significant upside exposure and operational flexibility to quickly adapt to changes in the commodity environment. We provide further details on our full derivative position on slides 15 and 16 of the earnings presentation and in our 10K, which will be filed soon. During the past year, Infinity incurred approximately $281 million in capital expenditures, of which $165.8 million was allocated to drilling and completion activities. Due to our operational performance and the high quality of our assets we're developing, Infinity was able to generate all-in F&D costs, inclusive of revisions of $7.30 for BOE for 2024. Over the past three years, our all-in F&D cost was approximately $6.03 for BOE, a statistic I am very proud to report. Our continued strength in F&D highlights the leading capabilities of our land and operational teams. When considered in relation to our adjusted EBITDA margin, Infinity once again delivered leading capital efficiency metrics of approximately 3.0 times in 2024. which we believe to be the best among our Appalachian peers. Turning to the balance sheet, our financial position remains very strong, with trailing 12-month net leverage ending the year at 1.3 times. We used the net proceeds from our IPO in February to repay outstanding debt under our credit facility. When adjusting for the IPO, our pro forma leverage as of December 31, 2024, was zero, and our liquidity totaled approximately 354 million dollars comprised of approximately 29 million dollars in cash plus 325 million of foreign base availability our liquidity today is more than sufficient to fund any development needs we might have for the foreseeable future and provides tremendous flexibility from a financial perspective going forward thank you I'll now turn it back over to Zach for some closing thoughts. Zach?

Thank you, David. In conclusion, Infinity Natural Resources is well-positioned to capitalize on the opportunities in the Appalachian Basin. Our balanced exposure to both oil and natural gas within the same basin in the U.S. is a key strength. The Utica Shales volatile oil window in Ohio is the fastest-growing oil play in the lower 48, while our Marcellus and Utica Shale gas assets in Pennsylvania maintain low break-even prices and are well-positioned for increased LNG and AI demand. Our strong local presence, experienced team, and balanced asset portfolio provide a competitive advantage that will drive our success. On behalf of the whole team, we thank you for your support and confidence in our company.

We look forward to sharing our progress with you in the coming quarters. operator you may start our q a session we will now begin the question and answer session if you would like to ask a question during this time simply press star followed by the number one on your telephone keypad if you would like to withdraw your question press star one again thank you and your first question comes from the line of john freeman with raymond james john please go ahead good morning guys yeah the first question the first question i had uh the 4q capex came in on the dnc side decent bit lower than we were expecting and uh i know y'all mentioned that you

got the the seven ducks that you entered the year at um just looking for any sort of help or color on sort of the capex cadence uh relative to the full year budget it looks like it's going to be fairly front half weighted on the spending. We just wanted to verify that with you all.

Hey, John, this is David Sproul. I'll take the first half of your question there on the fourth quarter. You know, we had a really successful quarter and are frankly really pleased with our results there. We were actually more active in the fourth quarter than what may have been previously modeled in terms of completing two additional wells than may have been in some of some of the research analyst models therein so I think from our standpoint the activity just again highlights the operational capabilities that the team here has and our execution therein and John this is Zach and I'll talk a little bit about the the cadence of the wells and capital spend for 2025 so we're currently running two drilling rigs we have a rig in ohio and a rig in pennsylvania and as such we'll have a higher capital burn through the first three quarters

uh proportionally than what we will at the end of the year as we continue to work through the the drilling and the completion in the of those projects and then fall back down to the one rig uh capex burn at the back of this year got it great that that's super helpful um and then just my one follow-up question um you know one of the the real uniqueness of uh of your story that y'all highlight you know in slide five of your presentation is just the the real flexibility y'all have to be able to toggle between the uh the oil and the gas assets and you know based on the returns that y'all lay out on that slide i mean obviously at the current gas strip your returns are extremely strong and i'm just curious on kind of how y'all are thinking about if the strip for both oil and gas kind of stays where it's at sort of the ability or willingness to maybe even lean more into the gas assets than is currently planned?

That's a great question, John. This is Zach again. So I think our success in capturing projects like we are currently doing, where we have our spot rig running in our Pennsylvania gas assets, demonstrate that we will always be evaluating both opportunities to accelerate or move projects around. But we really want to give a shout out to our land and operational teams that are have kept a deep bench of projects ready in both areas um so we'll continue to to drill through our program with that same balance thought and the same capital allocation uh thought process that we've outlined on on slide five as you mentioned great thanks guys appreciate it thank you john and your next question comes from the line of Bert Tons with True Securities.

Bert, please go ahead.

Hey, good morning, team. I just wanted to start off maybe if you could talk about the impact that maybe the recent volatility in gas prices have had on M&A efforts, maybe how that varies between the Ohio side or the Pennsylvania side, or maybe how that varies between smaller or larger assets.

So thanks for the question, Bert. This is Zach. I'll respond. So what I think we're really excited about as our team is we've been here in this basin operating for a long time. We have comfort and familiarity operating in the oil window and the gas window. So it gives us a broad scope of M&A opportunities that we can pursue. We also have been very successful doing small deals, large deals, things that have production or things that are greenfield. So while strip movement might sometimes make bid-ask spreads spray a little bit, we've been excited that we can deliver great growth on our organic assets, and then we can watch deals of all sizes and all windows come to us, and we can execute what fits right with our plan.

Yeah, so it sounds like the markets are still, you know, kind of moving around. That's good. And then maybe the second question, could you update us on the timing of your deep Utica wells, you know, just given the strength of offsetting EMP results, maybe where your permits sit, maybe when you think you would get to drilling them, and then maybe like a turn in line, you know estimate or something like that and maybe does that lead to more in 26 are you just trying to do maybe one or two a year but just any thoughts there thanks no thanks for that question again this is zach i'll respond also um i think as we think about our utica projects we're really excited about the work and the delineation that we've seen from our uh peers uh around our area so we have our utica permit in hand and we will evaluate the the right time to execute that

project. We'll be excited for when it happens.

Thank you very much.

Your next question comes from the line of Team Resivan with Keepan Capital Markets. Team, please go ahead.

Good morning, guys, and thank you for taking my questions. First, as we look at the 2025 production outlook, you gave total production guidance. I didn't see a mix in there. And on top of that, I noticed, you know, the fourth quarter 2024 came in a little more liquid rich than anticipated. So can you give some parameters on the, maybe the breakout, the oil, NGL gas mix in 2025?

Well, I think, you know, you can kind of see the turning lines that we have in the presentation. I'm sorry, Tim, this is David Sproul. You know, so you can see that those turning lines again in the presentation that we have. We have recently turned into sales five wells in Q1 that are natural gas weighted. I think it's important to understand that in 2024, we didn't we elected to not turn in any natural gas wells and obviously the the natural gas environment is much stronger today than it was in 2024 we are actively developing a project in southwest pennsylvania on our yost van dyke pad and we anticipate that coming on during the summer of this year so collectively those projects that's about nine gas wells that we anticipate turning into sales during this year we exactly mentioned during during the call that we will be more active in in both our gas and our oil assets and so you should anticipate us turning into sales more wells this year than we've done previously in our history it's also important to understand that as we turn in gas wells in pennsylvania that will impact our mix and so we would anticipate that our oil as a percent of our production mix to decline during the course of 2025. But that would be somewhere in the neighborhood of less than 5% on a decline relative to the prior year.

Okay, okay. I appreciate the context. And then, you know, amid all this volatility in commodity prices and, you know, the lead times that you all have with your extended laterals and multi-well packs, At what point in this year are you going to have to really sort of lock in the 2026 program? I know you have some flexibility on gas because sometimes you're drilling off existing pads. But just trying to understand, as we look to 2026, when do you need to kind of set your course, you know, between oil and gas and then the specific pads?

Thank you for that question. This is Zach. We think about those things every single day. that's part of the analysis that our team does you know routinely so just a little bit of insight into how we approach these things we're preparing projects in both windows at all times but we talk about this a lot and we talk about how we can make those changes relatively quickly it's the same drilling rig it's the same casing it's the same frackers we can make these capital allocation decisions you know very close to decision points and you will be able to step through this development thought process and present to our board here over the next couple of quarters the opportunities to where we should allocate capital. I think the balance that we've shown in the slide that we have in our deck demonstrates how we think about that capital allocation. So we'll continue to make sure that we have projects ready in both areas. We'll watch the strip develop and as we wrap up this year, we'll be talking about how we're allocating capital into next year.

Thank you.

Your next question comes from the line of Michael Schella with Stephens Inc. michael please go ahead hi good morning everybody uh i was just looking for a little bit of help on the production cadence for the year you've obviously got a lot of growth uh 40 percent you talked about um it looks like the wells uh on the marcellus pad came online um you said in march so i'm thinking uh production for first quarter maybe up just slightly from fourth quarter and then you grow from there. But just looking for any more detail you can help with on how the production came to look this year.

All right. Thanks, Michael. This is Zach. So first, I'll go back to late last year and point out that in late Q4, basically after Thanksgiving, we brought on six oil wells. Here in the first part of this year, we've now brought on six additional wells. One was an oil well, and then five were gas wells. And I should compliment the operations team. It doesn't look that difficult to beat our projected turn in line on a gas project by a couple of weeks like we've done we thought that pad might come in in april it's now coming in march it looks pretty easy when it's springtime but what you have to know is that that meant they had to execute throughout the entire winter despite the challenges that a very cold winter brought they were able to maintain and accelerate our cycle times and i want to talk about that cycle times because i think that's important as you think about how these wells are come on coming online so historically we've been six to seven month cycle times. We typically are running three to five well deployments with the rig. So currently conducting two drilling programs, one in the gas window and one in the oil window. So as those wrap up, you should sort of expect that standard cadence for those to be coming online throughout the year.

Okay.

And Zach, does that translate to sort of straight line production growth or was a way off in thinking that production kind of uh slow growth in in first quarter and then ramping from there yeah Michael this is this is David Sproul I think you know it's it's always difficult when you think about quarter to quarter comparisons on growth on aspects there you know I think we would um like Zach was mentioning with the cycle times we anticipate uh wells coming on uh continuously during the course of this year um I wouldn't necessarily say that it's a straight linear line but But you see our guidance for the end of the year, and you see the cadence that we should bring these things on, these wells on, with regards to the cycle times that JITZAC just mentioned. So as these wells come online, whether gas or oil, you should see a period of jump for those as we execute on our development plan.

Okay.

Fair enough. and on the Marcellus pad I know it's early days with those five wells but anything you can say as to how those are performing so far yeah this is Zach again thank you I think we're very excited about the results we're seeing it's early days so you know plenty of time to continue to firm up our views on the wells but the fact that they've come in line and they're producing as anticipated this early on in their head of schedule is always very exciting to us so our views on all of our uh new performing wells the the wells we brought in in q4 as well as these are reflected in our production guides so okay i think you had said that those are capable of possibly uh like 100

million cubic feet a day that pad is that still within the uh in the range yeah we're really excited about the wells early time performance and that's probably all i'm going to say Thanks, guys.

Your next question comes from the line of Noah Hungness with Bank of America. Noah, please go ahead.

Morning, INR team. For my first question, David, I was hoping that maybe you could give us a little bit of additional color on the per unit operating expense, LOE and GP&T. You mentioned it was going lower in 25 versus 24, but could you help us kind of quantify what that looks like?

I think the easiest way to think about that there, Noah, is really just focusing on what is our operating cost for our wells in southwest Pennsylvania. We wholly own that gathering, processing, and transportation system that we have there. And so the cost for those wells is exceedingly low, relatively speaking. Moreover, our volumes from a gas side are obviously much stronger. So as you blend those components in and you look at it on an aggregated basis, while our oil production, our liquids production, and our gas in Ohio will continue to increase, on a blended basis, as I move more natural gas into that equation from southwest Pennsylvania, our per-unit costs will decline on that. In terms of the actual numbers, I think we're going to hold that back at this stage for us today. But our cost structure, again, in southwest Pennsylvania is exceedingly low with regards to the GP&T aspect.

Gotcha. I appreciate the additional color there. And then for my second question, I wanted to ask on your guys' CapEx budget, is the midstream CapEx the only other component of the CapEx budget? Last year, you spent a little over $100 million on land. I guess, how can we be thinking about land spend in 2025?

No, thanks. This is Zach, and I'll take a response here. So, first of all, we have limited need for maintenance land spend for our 2025 budget program. So I think that's why we're not giving a number there. But I'll also talk about the broader CapEx guidance that we've given, because I think it's important to know, first of all, we have no debt. And our land group has been very successful, both historically and recently, at adding working interest into our units and lengthening laterals. And those deals have always screened very, very well. And we look at those deals the way we look at every other capital allocation decision. It's on a PV analysis with a view towards long-term value creation. So when you factor all of those things in, we wanted that room in our CapEx guidance there. None of that was a result of changes in DNC cost expectations. Those are in line with our view, but that's how we've approached CapEx. Great, guys. Thanks so much.

And your last question comes from the line of Paul Diamond with CD. Paul, please go ahead.

Thank you. Good morning, Al. Thanks for taking the call. Just a quick one. I wanted to touch base on the midstream CapEx. How should we think about, as you shift more activity towards southwest PA, away from Utica, how should we think about the correlation between the wider activity and that spend over time? Should it be somewhat correlated, or is that more of a, will the spend just remain more linear regardless of activity?

Yeah, I think near term, Paul, this is David Spurl. I think near term, you know, as we look to add on pad sites and expand our system there, you should be anticipating that we would incur additional capex. You know, I think this year we're obviously tying in two pad locations to that. I would caution you, though, to think about, you know, tying it to active well development in our South Bend field in particular, because this is our first time through those pads. The way we have set up these pad locations affords us the flexibility and optionality to return to pads developed. And so, again, I would tie your development in view of long-term midstream capex to the tying in of additional pad locations versus the actual well totals.

Understood. Appreciate the clarity. And just one quick follow-up. You talked a bit about how the M&A landscape has shifted. Just wanted to see if that, I mean, does the current environment kind of lend itself towards those small and bolt-on deals or something larger? I guess how you're seeing the landscape really play out with the recent volatility.

No, thanks. I think the way we viewed it has been consistent with how we have historically. So we're very excited to have skill at executing both small and large deals, both gas and oil-weighted deals, both PDP and Greenfield deals. So even as commodities move around, you know, we've been able to be very involved in looking at all sorts of different asset packages that would augment our positions in both areas.

Understood. Appreciate the time. I'll leave you there. Thanks, Paul.

There are no further questions at this time. I will now turn the conference back over to Zach Arno for closing remarks. Zach?

Thank you all for your time and joining us today. Appreciate the thoughtful questions, and we look forward to continuing to share more information throughout the year. Hope everyone has a great weekend.

That concludes the conference call. You may now disconnect.