Viper Energy Partners LP (NASDAQ:VNOM) Q1 2023 Earnings Conference Call May 2, 2023 11:00 AM ET

Company Participants

Adam Lawlis - VP, IR

Travis Stice - CEO & Director

Austen Gilfillian - General Manager

Kaes Van’t Hof - President

Conference Call Participants

Neal Dingmann - Truist Securities

Paul Diamond - Citigroup

Derrick Whitfield - Stifel, Nicolaus & Company

Leo Mariani - ROTH MKM

Timothy Rezvan - KeyBanc Capital Markets

Operator

Good day, and thank you for standing by. Welcome to the Viper Energy Partners' First Quarter 2023 Earnings Conference Call. [Operator Instructions]. Please be advised that today's conference is being recorded. And I would now like to hand the conference over to your speaker today, Mr. Adam Lawlis, Vice President of Investor Relations. Sir, please go ahead.

Adam Lawlis

Thank you, Chris. Good morning, and welcome to Viper Energy Partners' First Quarter 2023 Conference Call. During our call today, we will reference an updated investor presentation, which can be found on Viper's website. Representing Viper today are Travis Stice, CEO; Kaes Van't Hof, President; and Austen Gilfillian, General Manager.

During this conference call, the participants may make certain forward-looking statements relating to the company's financial condition, results of operations, plans, objectives, future performance and businesses. We caution you that actual results could differ materially from those that are indicated in these forward-looking statements due to a variety of factors. Information concerning these factors can be found in the company's filings with the SEC. In addition, we will make reference to certain non-GAAP measures. The reconciliations with the appropriate GAAP measures can be found in our earnings release issued yesterday afternoon.

I'll now turn the call over to Travis Stice.

Travis Stice

Thank you, Adam. Welcome, everyone, and thank you for listening to Viper Energy Partners' First Quarter 2023 Conference Call. The first quarter was a strong start for the year as Viper's oil production set a company record for a fourth consecutive quarter. The advantaged nature of this royalty business model was highlighted during the quarter as we maintained our strong free cash flow conversion despite the volatility in commodity prices. Further on that point, Viper's low operating costs and 0 capital requirements allow us to convert over 80% of our operating cash flow into free cash flow during the quarter. This measure compares favorably to many operators at around a 40% free cash flow conversion and insulates Viper's free cash flow profile in return of capital during times of commodity price volatility.