Evan Kiefer: Yes, Derek. This is Evan, and I’ll start with that. One of the things we’re looking at, not only just from public guidance, whether it’s, Chesapeake has come out and said that they intend on delaying wells for through the next quarter, as well as what Avon has indicated as well. What we’re really looking at is, average pricing in the third quarters, call it on average $2.50, the fourth quarter is closer to $3. And I think whenever you start to move up those levels, they’ll be a little bit more interested in turning those wells online and getting the production as opposed to, right now we’re closer to $2.00 in the second quarter. So our current guidance update really contemplates curtailment through the second quarter into the third, and then assuming at that level that they start to come back online, really kind of targeting that third quarter into the second half of the year.
Derrick Whitfield: That makes sense. And then maybe shifting over to acquisition activity. You’ve been active in acquiring over 50 million in minerals since last September, as you guys have noted. While I know you guys would prefer not to disclose the location at this time, could you at least help frame the opportunity as to whether it’s oil or gas, kind of the competitive environment that you’re seeing, and the depth of the opportunity beyond what’s been disclosed?
Tom Carter: I’ll answer that. Unlike a lot of people in the industry where mineral acquisitions are going on in the Permian and the acquisition of a royalty acre in the Permian is extremely expensive, we are focusing our acquisitions on other areas that are not nearly as expensive, but that are contiguous to and around significant positions that we already have in other areas. And while I’m not trying to say too much about where that is, it doesn’t take a lot of imagination to figure out where that might be. And we think with what we see in the strip in late 2025 and beyond, that those acquisitions made today will have significantly higher return on investments for Black Stone than trying to wade in where everybody else is. So I hope that answers your question.
Derrick Whitfield: It does. And then just in terms of the depth beyond what you guys have committed to today, any color you could offer there?
Tom Carter: Depth meaning how much do we expect to spend?
Derrick Whitfield: Or how much more could you spend given the competitive landscape you’re seeing?
Tom Carter: I would answer that this way. I think we expect and have budgeted to spend a multiple of what we’ve spent so far. And that depends on price, but we’ve got a pretty robust program going on, and we’re probably as active right now as we’ve been since ’23.
Derrick Whitfield: That’s terrific color, and I certainly look forward to updates from you guys in the future.
Tom Carter: As soon as we get a little bit more, we’ll say more about it.
Operator: [Operator Instructions] We’ll go next to Jon Mardini with KeyBanc Capital Markets.
Jon Mardini: Our first question is on distribution. You trimmed it in 1Q and had more than enough coverage to pay for it. Are you looking to maintain this $0.375 distribution going forward, just given the current gas strip and hedges in place?
Evan Kiefer: Yes. Jon, that’s a great question. With the higher coverage that we had in the first quarter, that was really elected to help support some of the acquisition efforts. Now, given the production delays and curtailments, we do expect that coverage to fall in the future. And a lot of this is really going to be dependent on how long the low-gas environment continues. Do we see the strength kind of continue in the second half of the year, as the strip would indicate? And so, we do like setting a distribution level that is achievable and expect to maintain it. But, as always, there’s some openness as to where the strip in the current environment persists.
Operator: And at this time, it appears we have no further questions. I’d like to turn the floor back over to Mr. Tom Carter for any additional or closing comments.
Tom Carter: All right. Well, thank you all for joining us today. I’ll just summarize by saying we’re in one of the many sort of bumpy roads that we run into in our industry, but we’re pretty excited about the next four or five years and what we see coming down the road and are trying to position Black Stone to be in the best position to really perform through there. And thank you very much for joining us today.
Operator: Thank you. Once again, ladies and gentlemen, that will conclude today’s call. Thank you for your participation. You may disconnect at this time.
