The Diamondback Energy First Quarter 2024 Earnings Conference Call is about to begin, and all participants are in listen-only mode. The operator introduces Adam Lawlis, VP of Investor Relations, who in turn introduces the speakers: Travis Stice, Chairman and CEO; Kaes Van't Hof, President and CFO; and Danny Wesson, COO. The speakers may make forward-looking statements and will reference an updated investor presentation and Letter to Stockholders. The operator reminds listeners that actual results may differ from these statements and that non-GAAP measures will be used. Travis Stice thanks everyone for joining and mentions the stockholders letter that was issued the previous night. The call is now open for questions.

During the question-and-answer session, Neil Mehta from Goldman Sachs asks about the steps the company is taking to mitigate the softness in Waha pricing for natural gas. Travis Stice explains that they will need to continue building pipelines every 12 to 18 months to accommodate the associated gas from their 6 million barrels per day production. Kaes Van't Hof adds that they are committed to contributing to more pipelines and are in talks with various projects to debottleneck the gas flow. Mehta also asks about the company's capital efficiency.

Travis Stice, CEO of Diamondback Energy, discusses the 10% improvement they expect to see per lateral foot in the Permian Basin. He attributes the deflationary pressures in the region to the decline in rig and completion crew counts, but also notes that they are pushing the envelope on their drilling and completion operations. The team had previously highlighted up to 550 million of annualized synergy capture in the transaction in the Midland Basin, including a 150-foot decline in D&C and ECOS. They are also seeing leading edge costs in the Midland Basin as they continue to push for longer lateral lengths.

In the fourth paragraph of the article, the speaker discusses the combination of longer laterals and efficiencies on the completion side that have resulted in lower costs for the company. They also mention their focus on the Midland Basin and their confidence in their plan for the year and beyond, including the acquisition of Endeavor. The speaker also briefly mentions their plans for the Delaware Basin and the potential for good projects in the future. A question is asked about the Delaware program, but the speaker does not provide much detail on it.

Travis Stice and Kaes Van't Hof discuss the synergy expectations and non-core asset sales as a result of the debt raised earlier in the month and the expected deal closure with Endeavor at the end of the year. They mention that the timing may have changed due to market conditions, but the strategy and plans for these sales remain the same. There is also an $8 billion cash consideration that will be worked down with free cash flow between sign and close.

This summary was generated with AI and may contain some inaccuracies.