Earnings Sentiment

Sentiment Analysis of the earnings transcript to help figure out if there are any bullish or bearish sentiments that could be gathered from it. We're doing ML and AI based analysis on the earnings call to get some more insights.

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Sentiment Distribution

   

Earnings Call Transcript Word Cloud

     

Bullish Statements during Earnings call

Statement
Given the low natural gas environment today and the liquefied natural gas export capacity expected to increase going into 2025 and beyond, we remain bullish on our long-term gas exposure and unit price
Despite the challenges with natural gas prices, we’ve been able to maintain a strong balance sheet throughout the year and hold distribution at its highest level since going public
In 2022, we mentioned that we expected to grow production through ‘23 with a target exit rate close to 40,000 BOE per day, and we’re able to execute and exceed those expectations
Overall, it’s a strong quarter
And despite challenging commodity price environment, we remain encouraged by the long-term natural gas outlook as we continue to make progress on strategic initiatives in ‘24 and beyond
But suffice it to say that our goals here are to buy properties that are not already well overpriced like in the Permian so that our capital will have better running room and can be accretive to our production profile
We posted strong results with adjusted EBITDA of $125.5 million for the quarter, bringing us to $474.7 million in 2023
As Tom pointed out, we had a very good fourth quarter where we reported average daily production of 41,100 BOE per day
The fourth quarter included leasing from primarily in the Haynesville, the Granite Wash and Gulf Coast, but we remain encouraged by continued activity in these plays despite the lower price environment
We generated total production volumes for the fourth quarter of 41,400 BOE per day, 2% above the upper end of our full year guidance range
I think specifically thinking about comps or thinking about the Southwestern deal, there is benefits that can be gained through operator efficiencies, costs and everything that I think will trickle down best of the benefit on the mineral owner side as additional development could persist
Good morning all and congrats on the strong year-end
This gives us the flexibility to opportunistically buy our common units, which currently trade at a discount to the preferred units redemption price
And as we look forward to the full year 2024, we forecast annual production to be up slightly from 2023 levels
For the full year, we generated $474.7 million of adjusted EBITDA from 39,800 BOE per day, which is just above the high end of our full year guidance range
We expect a modest increase in volumes in the East Texas Austin Chalk where we now have 30 new generation, multistage completion wells that are currently producing as we are working with our operating partners in the area to accelerate activity
Our strategy in ‘24 includes a continuation of targeted acquisitions that support our commercial initiatives and provide long-term accretive growth to our unitholders
With the previously announced fourth quarter distribution, we will pay out total distributions of $1.90 per unit for 2023, which represents a 9% increase over 2022
That will continue to provide support to our cash flows for 2024 due to the recent pullback in pricing
And so overall, we feel more comfortable using some of the revolver as it exists to be able to repurchase our common units as opposed to supporting a distribution level that would require coverage to be less than 1x
G&A is expected to increase slightly in 2024 as a result of inflationary costs and our continued efforts to support our ability to evaluate, market and manage our undeveloped acreage positions to potential operators
That said, we also see value in our units over a long-term and see that there could be accretion to repurchasing those units at where we are at today at lower gas prices, especially compared to the $21 on the preferred
It’s something that with the current environment, we think it makes sense and something where we have the opportunity to utilize kind of throughout the year and expect more on that to come
Good morning to everyone
Thank you
With oil prices remaining around the $70 per barrel range, we did see a small increase in Midland Delaware and the Bakken play trends
       

Bearish Statements during earnings call

Statement
Like most in our business, we are seeing general slowdown in drilling in the Haynesville and Gulf Coast as a response to lower natural gas prices
On the heels of a robust 2022 and 2023, we expect a slowdown in Louisiana Haynesville in response to lower natural gas prices as evidenced by a recent announcement of rig cuts as well as some natural production declines on our acreage outside of these 4 plays
We also saw a modest decrease in natural gas volumes, primarily in the Louisiana Haynesville conforming with natural gas trends in our industry
As we enter 2024, there are headwinds
Due to the suppressed price environment, we may be in a position where at current distribution rates, we could fall below 1x coverage, something we likely would not let stand implying a possible reduced distribution until pricing recoveries
Royalty volumes for the quarter were 38,900 BOE, where we saw oil volumes trend down in the Bakken and Eagle Ford, but were offset by an increase in Mid/Del
rig count and a reduction of 13 rigs compared to the third quarter
   

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