Operator: The next call comes from Derrick Whitfield with Stifel. Your line is open.
Derrick Whitfield: Hey, good morning. On sorry about earlier.
Kevin Haggard: Good to hear you. Thanks, Derrick.
Derrick Whitfield: Perhaps, high level for the first question. In light of your portfolio transformation and the improving capital efficiency as shown on slide five. Could you speak to a range of maintenance capital cost scenarios for 2024 assuming current cost and perhaps also the benefit of deflation?
Joe Gatto: Derrick, this is Joe. I think it’s a bit premature. I mean, going back to Russell’s last answer, hopefully if you were right on back online for that. But we’ve got a lot of things moving real time on the cost side of the equation. Not just the service cost, but real structural design costs as he said are going to be impactful. I could say that, we expect that capital efficiency will improve, whether it be on a, a CapEx to be a lead basis or free cash flow conversion of EBITDA, but right now it’s a little bit premature on 24. Russell will get in the seat for another month before we start pinning that on things like that.
Derrick Whitfield: All right, Russell, you’re up in Q3 as my — as my as my follow up reference in slide six. Could you comment on the change in your completion approach with the 3rd bone spring shale that’s leading to productivity similar to that of the Wolf Campaign?
Russell Parker: So we’ve tried a few different techniques. This one was more intense in terms of both sand loading and fluid loading. And we are seeing reduced our or less drawdown to produce the same amount of Boe’s that you’ve seen on some of the other wells. I’d say we still have more work to do here both and just figuring out what the ultimate inventory looks like and what the ultimate economics will be, but I’m encouraged to see that improvement already and I would say look for not only in just this interval, but as the copy progresses, we’re going to see more and more tweaks and optimization and design experimentation to help us improve our cash flow per barrel.
Derrick Whitfield: And one clarification Russell, if I could so with respect to co-development, do you view the 3rd bone spring shale as part of the same pressure tank as the Wolf Campaign.
Russell Parker: I don’t think you can make that blanket answer across the area, and it also depends on whether you’re talking about the 3rd bone shale or 3rd bone sand which are both considered 3rd bone by certain operators, but different folks pick the top different places, so there’s not one blanket answer to that. But we like what we’re seeing in the 3rd bone shale well early time, I’ll say that.
Derrick Whitfield: Great, great update guys. Thanks for your time.
Russell Parker: Thanks Derrick.
Operator: Your next question comes from the line of Neal Dingmann with Truist Securities. Your line is open.
Neal Dingmann: Morning guys. Maybe I just ask a little bit of that 3rd bone shale is a different way, I’m just wondering. Now, after the success there, just trying to, when I look at your maps, how large an area, you have confidence that, that can be perspective in that, it seems to be a very nice add in this quarter, how large a area can we start to run with on that?
Joe Gatto: Yes, Neal, this is Joe. As you see on the map here on page six, it covers a broad swath of wells that we have down now or in process and feel good about the work that has been done there not only by us and by others, I think that’s where we’re focused right now and I say that we can expand this down further south. But this is going to give you a good representation of things that are either in our current inventory or areas where we think are near term ads, but we’ll continue to work on not only the 3rd bone here. But there’s other zones we haven’t talked about here today that certainly in process like the Wolfcamp C something that we are doing some additional work on and co-development as we speak and we’ll be able to talk about that.
