Financial Data and Key Metrics Changes - In Q4 2025, Viper Energy achieved over $8 billion in mineral acquisitions and significant growth in both absolute and per share metrics, with a nearly 2.5 times increase in Permian Basin acreage and a 7% increase in oil production per share year-over-year [4][5] - The company reported a pro forma net debt of approximately $1.6 billion, representing just over 1 turn of leverage after fully repaying a $500 million term loan and outstanding revolver balance [5][6] - The board approved a 15% increase in the base dividend, which now represents about 50% of estimated 2026 free cash flow at $50 WTI, and is fully covered below $30 WTI [6][7] Business Line Data and Key Metrics Changes - Viper Energy's relationship with Diamondback Energy remains strategic, supporting development across their Permian acreage, which is characterized by strong activity levels [4][5] - The company has initiated average daily production guidance for 2026, implying mid-single digit organic production growth from the Q4 2025 exit rate [4] Market Data and Key Metrics Changes - The company has not observed a slowdown in third-party activity, capturing about 50% of all third-party operations across the entire basin, supported by major players in the industry [19][20] - The guidance for production growth is based on existing DUCs and permits, with expectations for strong third-party activity to continue [20] Company Strategy and Development Direction - Viper Energy is focused on generating strong free cash flow, delivering attractive shareholder returns, and pursuing accretive Permian consolidation opportunities [8] - The company emphasizes the importance of mineral ownership, which allows it to benefit from operators' innovations without incurring capital risk [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to return upwards of 100% of cash available for distribution while maintaining differentiated growth in per share metrics [7][8] - The outlook for the Permian Basin remains positive, with expectations for production growth and continued activity from major operators [78][79] Other Important Information - The company is enhancing its operational efficiency through automation and AI to manage a large number of leases and production data effectively [68] - Viper Energy is positioned to explore new development areas as gas takeaway improves, which could enhance lease bonus income [66] Q&A Session Summary Question: Insights on Barnett and Viper's ownership - Management highlighted the benefits of mineral ownership and the ongoing leasing program, with about 10%-15% of potential acreage leased in the Midland Basin [10][11] Question: Return of capital strategy - The board's decision to increase the base dividend reflects confidence in the company's cash-generating ability, with a focus on maintaining flexibility in capital allocation [14][15] Question: Third-party activity outlook - Management confirmed strong third-party activity, with no significant slowdown observed, and emphasized the importance of acquiring high-quality royalty interests [19][20] Question: M&A environment and royalty assets - Management noted a lack of large deals recently, with a focus on integrating previous acquisitions and being ready for future opportunities as market conditions improve [27][28] Question: 2026 oil guidance and visibility - The wide guidance range reflects limited visibility on future activity, with confidence in the first half of the year but uncertainty in the second half [38][40] Question: Lease bonus income outlook - Management indicated that lease bonus income could remain similar in 2026, driven by proactive management and the larger asset base [66][68] Question: Oil cut trends - The decrease in oil cut from mid-50s to low 50s is attributed to various factors, including improved gas system efficiency and the overall performance of the basin [69] Question: Share repurchase strategy - Management discussed the flexibility in capital allocation, balancing between distributions and share repurchases, particularly in light of market conditions [75][76]

Viper Energy Partners (NasdaqGS:VNOM) Q4 2025 Earnings call February 24, 2026 11:00 AM ET Company Participants Austen Gilfillian - President Chip Seale - Director of Investor Relations Derrick Whitfield - Managing Director Kaes Van't Hof - CEO Neil Mehta - Managing Director Timothy Rezvan - Managing Director Conference Call Participants Betty Jiang - Senior Equity Research Analyst Kalei Akamine - Senior Equity Research Analyst Leo Mariani - Managing Director and Senior Research Analyst Neal Dingmann - Energ ...

Financial Data and Key Metrics Changes - For Q4 2025, the company reported a net loss of $10.3 million, or $0.41 per diluted share, on total revenue of $62.1 million, compared to a net loss of $26.9 million, or $1.06 per diluted share, on total revenue of $63.8 million in Q4 2024, indicating an improvement in net loss [4] - The company's NOI for Q4 was $37.1 million, a 4.7% decrease from $38.9 million in Q4 2024 [5] - Core FFO for Q4 was $16.5 million, or $0.65 per diluted share, compared to $0.68 per diluted share in Q4 2024 [5] - For the full year 2025, the net loss was $32 million, or a loss of $1.26 per diluted share, compared to net income of $1.1 million, or income of $0.04 per diluted share for 2024 [7][8] - The company reported a decrease in same-store NOI of 1.6% for the full year 2025 compared to 2024 [9] Business Line Data and Key Metrics Changes - The company completed 388 full and partial renovations in Q4 2025, leasing 275 renovated units with an average monthly rent premium of $74 and a 22.2% ROI [6] - Since inception, the company has completed 9,866 upgrades, resulting in significant average monthly rental increases per unit [7] Market Data and Key Metrics Changes - Same-store average effective rents closed at $1,489 per unit per month, down 10 basis points year-over-year, with six of ten markets showing positive growth [16] - Same-store occupancy closed at 92.7%, down 195 basis points year-over-year, with South Florida leading at 94.5% [16] Company Strategy and Development Direction - The company plans to improve economic occupancy by approximately 900 basis points over four years through targeted renovations and technology upgrades [21] - The company is optimistic about the Sun Belt multifamily market, anticipating a positive inflection point in lease growth due to reduced new supply and strong job growth [30][34] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism for 2026, projecting a range of rental income growth and same-store NOI changes, with expectations of improved market conditions in the second half of the year [13][22] - The company is focusing on leveraging AI technology to enhance operational efficiency and drive value-add programs [29] Other Important Information - The company has a $200 million revolving credit facility with JPMorgan Chase Bank, improving pricing across leverage tiers [11] - The company has $121.7 million of available liquidity as it heads into 2026 [12] Q&A Session Summary Question: Refurbishment and remodeling plans for 2026 - The company plans to do 300 full upgrades and 400 partial upgrades, totaling around 1,700 units, similar to 2025 [38] Question: Interest rate swaps and market outlook - Management is monitoring the swap market closely and is cautious about layering in additional swaps due to current pricing [43][46] Question: January and February leasing trends - January new leases were down 7%, while February showed improvement with new leases down 5.7% [49] Question: Dividend coverage by cash flow - The dividend is covered by cash flow, with a target ratio of 65%-75% of core AFFO [58] Question: Senior renter population trends - The company is seeing an increase in the average age and income of renters, indicating a shift in demographic trends [66][67]

Financial Data and Key Metrics Changes - For Q4 2025, the company reported a net loss of $10.3 million, or $0.41 per diluted share, on total revenue of $62.1 million, compared to a net loss of $26.9 million, or $1.06 per diluted share, on total revenue of $63.8 million in Q4 2024, indicating an improvement in net loss [5][9] - The company's NOI for Q4 was $37.1 million, a 4.7% decrease from $38.9 million in Q4 2024 [6] - Core FFO for Q4 was $16.5 million, or $0.65 per diluted share, down from $0.68 per diluted share in Q4 2024 [6] - For the full year 2025, the net loss was $32 million, or $1.26 per diluted share, compared to a net income of $1.1 million, or $0.04 per diluted share, in 2024 [8][10] Business Line Data and Key Metrics Changes - Same-store rental income decreased by 2.8% in Q4 2025, with same-store occupancy closing at 92.7% [6][10] - The company completed 388 renovations in Q4, leasing 275 renovated units with an average monthly rent premium of $74 and a 22.2% ROI [7] - Since inception, the company has completed 9,866 upgrades, resulting in significant average monthly rental increases per unit [8] Market Data and Key Metrics Changes - Same-store average effective rents closed at $1,489 per unit per month, down 10 basis points year-over-year [17] - Six of the ten same-store markets showed positive year-over-year growth in effective rents, with Tampa leading at 3.1% [17] - Bad debt improved to 80 basis points of GPR, a 42% year-over-year improvement [20] Company Strategy and Development Direction - The company plans to continue its value-add business strategy, focusing on renovations and upgrades to drive rental income and asset appreciation [7][23] - The acquisition of Sedona at Lone Mountain for $73.25 million is part of a strategy to enhance economic occupancy and expand operating margins [23] - The company aims to improve economic occupancy by approximately 900 basis points over four years through targeted upgrades and technology installations [24] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about the Sun Belt multifamily market, anticipating a positive inflection point in lease growth in the second half of 2026 [32][34] - The demographic profile of renters is shifting, with an increasing number of older renters, which the company plans to cater to with enhanced amenities [36][68] - The company is focused on leveraging technology to improve operational efficiency and drive value for tenants and shareholders [36] Other Important Information - The company has a strong liquidity position with $121.7 million available as it heads into 2026 [13] - The 2026 guidance includes expectations for rental income growth between 0% and 1.9%, with total revenue growth projected between 0.1% and 2% [15][26] Q&A Session Summary Question: About refurbishment and remodeling plans for 2026 - The company plans to do 300 full upgrades and 400 partial upgrades, totaling around 1,700 units, similar to 2025 [39][42] Question: Updates on interest rate swaps and their impact - The company is monitoring the swap market closely and is cautious about layering in additional swaps due to current pricing not reflecting expected rate cuts [43][46] Question: Trends in January and February regarding leasing and occupancy - January new leases were down 7%, while February showed improvement with new leases down 5.7% [50] Question: Dividend coverage by cash flow - The dividend is covered by cash flow, with a target payout ratio of 65%-75% of core AFFO [58][59] Question: Insights on the aging renter population and property amenities - The company is adapting its properties to cater to an aging population, focusing on health and wellness amenities [68]

Financial Data and Key Metrics Changes - Comparable hotels total revenue was $319 million for Q4 2025 and $1.4 billion for the full year, down approximately 2% and 1% compared to 2024 [21] - Comparable hotels RevPAR for the full year was $118, down 1.6%, with Q4 RevPAR at $107, down 2.6% [23][24] - Comparable hotels adjusted hotel EBITDA was approximately $99 million for Q4 and $474 million for the year, down approximately 8% and 6% compared to 2024 [21][32] - The company achieved an industry-leading comparable hotels EBITDA margin of 31.1% for Q4 and 34.3% for the year, down 210 basis points and 190 basis points respectively [7][31] Business Line Data and Key Metrics Changes - The company adjusted its strategy to optimize the mix of business at hotels, layering additional group business to bolster market share [5][6] - Variable hotel expenses increased only 0.5% in Q4, while total hotel expenses increased by 1% for the quarter and 1.9% for the year [29][31] - The transition of 13 Marriott-managed hotels to franchise is expected to drive operational synergies and increase marketability [8][102] Market Data and Key Metrics Changes - The portfolio is diversified across 84 markets, with strong leisure travel demand, although midweek demand was impacted by government travel pullbacks [5][6] - Top RevPAR performing hotels included the Embassy Suites in Anchorage, Alaska, which was up almost 42%, and the Homewood Suites in Tukwila, Washington, which was up 33% [24] - The company reported that nearly 59% of its hotels had no new upper upscale or upper mid-scale product under construction within a five-mile radius, reducing overall risk [17][106] Company Strategy and Development Direction - The company aims to maximize shareholder value through strategic initiatives, optimizing its portfolio, and capitalizing on market dislocations [5][9] - The long-term goal is to grow the portfolio while managing capital allocation to safeguard against macroeconomic volatility [9][13] - The company plans to reinvest between $80 million and $90 million in its portfolio for 2026, with major renovations planned for approximately 21 hotels [16] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the long-term outlook for the hospitality industry and the company's ability to drive profitability [20][37] - The guidance for 2026 anticipates comparable hotels RevPAR to be flat at the midpoint, with potential benefits from the FIFA World Cup 2026 [18][36] - Management acknowledged the challenges posed by policy-related disruptions but remains confident in the company's ability to adapt and maximize profitability [37] Other Important Information - The company sold seven hotels for a combined gross sales price of approximately $73 million and repurchased 4.6 million common shares for about $58 million [9][10] - Capital expenditures for the year totaled approximately $88 million, with plans for significant renovations in 2026 [15][16] - The company continues to pay attractive dividends, with distributions totaling approximately $240 million for the full year [17] Q&A Session Summary Question: What was the total drag on RevPAR in 2025 from Liberation Day and the government shutdown? - Management indicated that government-related room nights were down about 12% for the year, with a potential recovery of about a point in occupancy expected in 2026 [40][41] Question: Can you take us through some of the building blocks on the expense side? - Management provided details that variable expenses are expected to be just under 3% for the full year, with fixed expenses around 4.5% [42] Question: How is the RevPAR growth guidance structured for 2026? - Management noted that the guidance assumes little impact from special events, with expectations for occupancy growth as comparisons ease [45][56] Question: What is the focus regarding the transaction market? - Management stated that the current focus is on select dispositions where they can redeploy proceeds into higher producing opportunities [60][61] Question: What trends are being observed in midweek occupancy? - Management reported encouraging signs of midweek occupancy growth, especially post-government shutdown, but noted the need for caution due to weather disruptions [66][69] Question: How does the transition of Marriott-managed hotels impact marketability? - Management confirmed that transitioning to franchise agreements increases marketability and provides flexibility for potential sales [101][102]

Financial Data and Key Metrics Changes - Viper Energy reported over $8 billion in mineral acquisitions during 2025, leading to significant growth in both absolute and per share metrics [3] - The company grew its Permian Basin acreage by nearly 2.5 times year-over-year and increased oil production per share by 7% [3] - Pro forma net debt was approximately $1.6 billion, representing just over 1 turn of leverage after repaying a $500 million term loan and outstanding revolver balance [4] Business Line Data and Key Metrics Changes - The company initiated average daily production guidance for 2026, implying mid-single digit organic production growth from the Q4 2025 exit rate [3] - Viper Energy returned 90% of available cash during Q4 2025 and is positioned to increase returns to upwards of 100% of cash available for distribution [5] Market Data and Key Metrics Changes - The company has not observed a slowdown in third-party activity, capturing about 50% of all activity across the entire basin [20] - The guidance for production growth is based on existing DUCs and permits, with visibility expected to improve as new wells are permitted [38] Company Strategy and Development Direction - Viper Energy is focused on generating strong free cash flow and delivering attractive shareholder returns while pursuing accretive Permian consolidation opportunities [6] - The company has approved a 15% increase in its base dividend and a $1 billion increase in share repurchase authorization, reflecting confidence in long-term cash generation [4] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the strength of the Permian Basin, indicating that larger operators continue to grow and that concerns about reductions in activity have quieted [75] - The company is well-positioned to benefit from the ongoing development of deeper zones and the resilience of third-party operators [20][21] Other Important Information - The company is leveraging technology and automation to manage a large number of leases and production data effectively, which is expected to enhance shareholder value [65] - The relationship with Diamondback Energy remains strategic, with ongoing leasing activities and development plans that align with Viper's interests [10][50] Q&A Session Summary Question: How does Viper Energy's ownership translate across FANG's Barnett position? - Management highlighted the benefits of mineral ownership, stating that operators' new techniques and zones accrue benefits to mineral owners without additional capital risk [9] Question: Will the return of capital strategy remain consistent? - Management indicated that the base dividend will remain a priority, with flexibility to adjust based on market conditions and stock price [12][14] Question: What is the outlook for third-party activity? - Management confirmed that third-party activity remains strong, with no significant slowdown observed [20] Question: How does the company view the current market for royalty assets? - Management noted that while there haven't been many large deals recently, they are ready to pursue larger opportunities when market conditions improve [26][28] Question: What is the outlook for lease bonus income in 2026? - Management suggested that lease bonus income could remain similar to 2025 levels, driven by proactive management and the larger asset base [64] Question: How does the company view its oil cut trend? - Management attributed the trend towards lower oil cut to various factors, including improved efficiency in gas systems and the overall performance of the basin [66]

ONEOK (NYSE:OKE) Q4 2025 Earnings call February 24, 2026 11:00 AM ET Speaker9 Speaker7 Thank you, Angela, and welcome to ONEOK's fourth quarter and year-end 2025 earnings call. We issued our earnings release and presentation after the markets closed yesterday. Those materials are available on our website. After our prepared remarks, management will be available to take your questions. Statements made during this call that might include ONEOK's expectations or predictions should be considered forward-looking ...

Financial Data and Key Metrics Changes - Full-year net income for 2025 was $132.8 million, or $3.53 per share, compared to $68.9 million, or $1.78 per share in the prior year quarter [3][4] - Consolidated fourth-quarter sales were $1.5 billion, down 7% from the fourth quarter of 2024 [4] - Fourth-quarter net income was $8.7 million, or $0.24 per share, compared to $68.9 million, or $1.78 per share in the year-ago quarter [4][5] Business Line Data and Key Metrics Changes - Building Materials Distribution (BMD) sales in the fourth quarter were $1.4 billion, down 5% from the fourth quarter of 2024, with segment EBITDA of $56.4 million compared to $84.5 million in the prior year quarter [7][8] - Wood Products sales in the fourth quarter were $354 million, down 16% compared to the fourth quarter of 2024, with segment EBITDA of $12.3 million compared to $56.6 million in the year-ago quarter [7][8] Market Data and Key Metrics Changes - Total U.S. housing starts increased by 4% year-over-year, while single-family housing starts increased by 7% compared to the prior year quarter [4] - Plywood sales volume was 354 million feet, down from 371 million feet in the fourth quarter of 2024, with average net sales price down 6% year-over-year [12][13] Company Strategy and Development Direction - The company continues to focus on expanding its distribution business and enhancing EWP production capabilities, with significant investments made in the last three years [3][4] - The acquisition of Holden Humphrey is expected to enhance the company's footprint and product offerings in the Northeast region [19][77] Management's Comments on Operating Environment and Future Outlook - Management noted that single-family starts fell short of 2024 levels by approximately 7% and are expected to be flat or modestly down in 2026 due to affordability challenges for homebuyers [20] - The company remains confident in long-term demand drivers for residential construction, including persistent undersupply of housing and high levels of homeowner equity [22] Other Important Information - The company repurchased approximately $181 million of common stock in 2025, including $70 million in the fourth quarter [15] - Capital expenditures for 2025 were $241 million, with expectations for 2026 spending to be between $150 million and $170 million [14][15] Q&A Session Summary Question: Can you talk about the share gains in the general line within BMD? - Management noted strong demand in general line products, achieving an all-time high in 2025, with continued growth expected [27][28] Question: How is the channel positioned for EWP as builders target low single-digit volume growth? - Management indicated that restocking has begun in Q1, and strong partnerships with builders and dealers position the company well for market recovery [30] Question: What areas will the new CEO focus on? - The new CEO emphasized maintaining strategic priorities, increasing earnings stability, and becoming the employer of choice for associates [31][32] Question: Can you provide more color on the Holden Humphrey acquisition? - The acquisition is expected to enhance efficiency and access to new product categories in the Northeast, allowing for expanded relationships with key suppliers [76][78] Question: What factors will drive BMD margins back to 5%? - Management indicated that improved sales velocity, mix shift, and seasonal strength in the second and third quarters could help achieve this margin target [46][60]

Financial Data and Key Metrics Changes - The fourth quarter revenue was almost $1.9 billion, an increase of $116.4 million or almost 7% compared to the prior year, driven by growth in both the Energy and Utility segments [26] - Gross profit for the fourth quarter declined by $9.6 million, or approximately 5% to $175 million, with overall gross margins at 9.4%, compared to 10.6% in the prior year [26][27] - For the full year 2025, revenue was up $1.2 billion to almost $7.6 billion, primarily driven by double-digit growth in both segments [28][29] Business Line Data and Key Metrics Changes - In the Utility segment, revenue was up over 10% from the prior year, driven by growth across all business lines, with gas operations and power delivery leading the growth [30] - The Energy segment revenue grew almost 25%, primarily driven by renewables, partially offset by lower industrial and pipeline revenue [17][28] - Renewables grew over 50% in 2025, with significant revenue pulled forward into 2025 due to project resequencing [31] Market Data and Key Metrics Changes - The total backlog at year-end was over $11.9 billion, with total MSA backlog up over 20% compared to the prior year [35] - The average increase in CapEx by the largest utility customers suggests a 50% increase in spending over the next five years compared to the previous five years [11] - The demand for power generation is projected to grow by 50% over the next decade, driven by data centers and increased electrification [10][11] Company Strategy and Development Direction - The company aims to improve margins, generate cash flow, and be the best allocators of capital in the industry, focusing on attracting and retaining talent [39] - There is a commitment to investing in people and systems to enhance execution efficiency and improve gross margins [87] - The company is positioned to assist clients in generating power and providing transmission and distribution solutions to meet growing demand [12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong end markets and the company's ability to adapt to changes, emphasizing the importance of relationships with clients [62] - The company expects to see improvements in margins and cash flow in 2026, with a focus on executing projects effectively [22][37] - Management highlighted the importance of maintaining a strong balance sheet to support growth and pursue acquisitions [35][88] Other Important Information - The company increased its labor force by more than 2,800 people in 2025 to meet client needs [13] - The company plans to invest in a new facility for its Premier PV business line in 2026 to increase capacity and align with customer demand [24] Q&A Session Questions and Answers Question: On the gas generation business, how much of the $1.5 billion-$2 billion bidding activity might convert to revenues in 2026 and 2027? - Management indicated that the funnel of opportunities in gas generation is solid, with a meaningful burn expected in 2026, and a line of sight to nearly $6 billion in opportunities [41][42] Question: Can you share more on the challenges faced in renewables and what changes have been made to avoid them in the future? - Management acknowledged underestimating geotechnical conditions in certain projects, leading to cost overruns, and emphasized investments in project leadership to mitigate future issues [45][47] Question: What is the focus on execution moving into 2026? - Management highlighted the importance of better estimating, project controls, and change management as key areas to improve execution across the enterprise [52][53] Question: What is the coverage on guidance and what areas need more bookings to hit targets? - Management expressed confidence in their guidance, noting that while strong backlog supports it, additional bookings in pipeline projects are still needed [56][58] Question: Can you discuss the opportunities in the utility side, especially in Texas? - Management noted Texas as a fertile location for energy markets, with strong relationships and opportunities for power generation and data center clients [61][62]

Financial Data and Key Metrics Changes - Total revenue for Q4 2025 increased by 12.3% to $745 million, driven by higher average dues and utilization of in-center businesses [5] - Net income for Q4 2025 was $123 million, a 231% increase, while adjusted net income rose by 28.4% to $77 million [6][7] - Adjusted EBITDA for Q4 2025 was $203 million, up 14.5%, with an adjusted EBITDA margin of 27.2% [8] - For the full year 2025, total revenue increased by 14.3% to $2.995 billion, with adjusted net income rising by 62.3% to $326 million [10] Business Line Data and Key Metrics Changes - Average monthly dues increased by 10.8% to $223, and average revenue per center membership rose by 10.8% to $882 [5] - Comparable center revenue grew by 9.9% in Q4 2025, reflecting strong membership dues and in-center business performance [5] - For the full year, comparable center revenue grew by 11.1% [8] Market Data and Key Metrics Changes - The company ended 2025 with over 822,000 center memberships, and total memberships, including on-hold memberships, reached approximately 873,000 [5] - The company expects to open up to 28 clubs across 2026 and 2027, funded primarily through operating cash flow and a robust sale-leaseback market [15] Company Strategy and Development Direction - The company plans to invest between $875 million and $915 million in growth capital for 2026, with over half allocated for clubs opening in 2027 and beyond [11] - A $500 million share repurchase program has been approved, reflecting confidence in the business model and ability to generate cash [16] - The company is focused on optimizing member experience and revenue on a club-by-club basis, with a commitment to modernizing facilities and services [17] Management's Comments on Operating Environment and Future Outlook - Management noted that mature clubs are operating at optimal levels, with a strong balance sheet and financial flexibility entering 2026 [15] - The company anticipates full-year comparable center revenue growth of approximately 6.3%-7.3% for 2026, with a gradual decline in growth rate throughout the year [9] - Management emphasized the importance of maintaining a balance between member experience and shareholder value [75] Other Important Information - The company achieved a 27.5% adjusted EBITDA margin in 2025, exceeding initial guidance [14] - The company plans to capitalize between $33 million and $35 million of interest expense in 2026 due to increased growth capital spending [13] Q&A Session Summary Question: What are the biggest opportunities for 2026? - Management highlighted the need to modernize and evolve facilities to meet the demands of affluent customers seeking health and wellness services [24] Question: How are new clubs performing? - New clubs are opening stronger and ramping faster than ever, with some reaching contribution margin positive in the first month [28] Question: What are the unit economics of new clubs? - New clubs have higher membership prices and lower member counts, leading to a more efficient model [33] Question: How is the company managing inflation and healthcare costs? - The company is aware of headwinds from payroll and supply increases and has planned accordingly [62] Question: What is the strategy for digital members and retail opportunities? - The company is focusing on enhancing the member experience through digital platforms and improving conversion rates for digital members [83] Question: How is the company planning to optimize membership mix? - Management is focused on reducing discounted memberships and optimizing member experience to improve revenue and EBITDA [72]