John White: I know a lot of people are still trying to figure it out. So you’re not alone. Okay. Nice quarter and I’ll pass it back to the moderator.
Kelly Loyd: Great. Thanks, John.
Ryan Stash: Thanks John.
Mark Bunch: Hi, John.
Operator: The next question comes from Jeff Robertson of Water Tower Research. Please go ahead.
Jeff Robertson: Thanks. Kelly, I missed a part of your opening remarks. I apologize if you address this, but I’m curious now with the SCOOP/STACK acquisition on top of the Chaveroo acquisition. You all now have two assets where you have some influence perhaps on controlling your own capital outlays. I’m just wondering how that fits into your overall strategy of allocating capital, between some of the non-op assets that, you all have traditionally focused on versus having some control over maybe trying to encourage drilling activity on these new assets. And then the obvious choices of leverage reduction and the dividend?
Kelly Loyd: Sure. Yes, Jeff. Thanks for asking. And I would say what really the takeaway, what’s different, right? Well, now with what we’ve got going on a Chaveroo and with the additional assets from the SCOOP/STACK acquisitions and the locations there, plus what’s going on with Delhi, right? We’ve had a couple of wells that we’re super encouraged with there and still our Williston Puds. What we have now is really some investment portfolio flexibility. Largely in the past to maintain, or increase production, we needed to be in an acquisition market that, had more favorable trade winds, which by the way, we have a terrific record of doing that. And we honestly on the PDP side, with our SCOOP/STACK acquisition, I couldn’t be more excited about this purchase, but it also comes with these additional locations.
And again, the flexibility, by flexibility, you may be wondering, look, you’re a non-op. What flexibility do you have? Well, these locations have value, right? We can drill them. We can sell them. But there’s a whole lot of options there. So what we’re going to do, we’ll tailor this to fit nicely with our expected CapEx as we go forward. Yes, it’ll obviously be dynamic, but again, it’s just another sort of really viable tool for us, to put to work, for the best interest of our shareholders.
Jeff Robertson: Thanks. Do you see more opportunities like the SCOOP/STACK acquisition where either, because of some of the consolidation that’s taking place in the industry, owners of non-operated assets are trying to reposition their portfolios?
Kelly Loyd: We do, yes. We look at them honestly. As you know Jeff, as we’ve spoken in the past, we look at these sort of acquisitions a lot. And it doesn’t always come together with the kind of pricing you need, to really have a great return like we expect to get here. So, we’re constantly evaluating, they’re out there. We just – we’re not out of the accretive acquisition game. We never will be here at Evolution. But we are – we’re excited with what we have here
Jeff Robertson: Great. Thank you.
Kelly Loyd: Thank you.
Operator: This concludes our question-and-answer session. I would like to turn the conference back over to Kelly Loyd for any closing remarks.
Kelly Loyd: Thank you. Just a quick one. I mean, I’ll tell you, here at Evolution, we’re really excited about what we have going on. The SCOOP/STACK acquisitions that we expect to close, I think next week, I think we’re going to have some of the strongest production we’ve really ever had. And obviously with what’s going on at Chaveroo with the exciting drilling program there and the hundreds of low working interest upside SCOOP/STACK locations. And our recent successes at Delhi and our Williston Puds. We now have some really significant investment flexibility. Plus, we’ve got this fantastic team here, which I would be remiss in not mentioning now has Kelly Beatty as our Chief Accounting Officer. So, yes, we’re happy here and I appreciate everyone joining us on the call today.
Operator: The conference has now concluded. Thank you for attending today’s presentation and you may now disconnect.
