Financial Data and Key Metrics Changes - The first quarter of 2025 marked a record production quarter for the company, with total production up 3% quarter over quarter, averaging over 42,000 BOE per day [6] - Adjusted EBITDA was $142 million, reflecting a 1% increase from the prior quarter, while net income rose 36% to $26 million [7] - The company declared a cash dividend of $0.35 per share and repurchased 1,100,000 shares for $22 million during the first quarter, representing a return of capital of $0.50 per share [7][8] Business Line Data and Key Metrics Changes - Net wells turned in line increased by 34% from Q4 2024, primarily driven by activity in the Delaware Basin [6] - The company closed over $20 million in acquisitions, adding 1,350 net royalty acres [6] Market Data and Key Metrics Changes - The company updated its full-year 2025 estimated cash taxes guidance to $23 million, reflecting a $5 million decrease from the original estimate due to lower anticipated commodity prices [9] Company Strategy and Development Direction - The company emphasizes the advantages of minerals and royalties as a high-margin investment opportunity, with no direct operating costs or obligatory capital spending [10][11] - The focus remains on asset quality, operator quality, and asset/operator diversity to maximize returns [19] - The company is actively evaluating consolidation opportunities in the fragmented minerals and royalties market [19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the production trajectory for the next two quarters, underpinned by existing producing wells [26] - The company remains optimistic about the long-term outlook for oil and natural gas, despite short-term price fluctuations [60] - Management noted that operators are curtailing capital expenditures while maintaining production guidance, indicating a cautious approach to capital discipline [58] Other Important Information - The company has a remaining buyback capacity of approximately $350 million following the Board's authorization for an additional $300 million in share repurchases [8][22] - The company has increased its inventory estimate by 40 additional net normalized locations, a 10% quarter-over-quarter increase [16] Q&A Session Summary Question: Outlook on production trajectory for the next two quarters - Management feels relatively good about production trajectory, underpinned by existing producing wells and wells that have been spud [26][27] Question: Comparison of share repurchase value versus M&A opportunities - Management sees a balance between the value of buying back stock and pursuing M&A opportunities, noting the unique value proposition of their stock [28][30] Question: Changes in productivity of wells relative to underwritten assumptions - Management conducts look backs on past acquisitions and feels confident about future projections based on current geologic facts [32][36] Question: Clarification on 1Q production and full-year guidance - Management is pleased with 1Q production but expects to revisit guidance later in the year based on more data [40][41] Question: Trend of share repurchases in relation to commodity price volatility - Management's buyback program is designed to take advantage of price dislocations, with an expectation of increased repurchases at lower prices [44] Question: Context on the increase of 40 net locations - The increase was split between the Delaware and Midland Basins, based on positive well results and operator activity [50][52] Question: Observations on operators' strategies for managing base decline - Management noted that operators are being cautious with capital discipline, which may lead to a self-correcting nature in the industry [58][60]