Leo Mariani: Okay. That’s what I was for trying to get at. Okay. And then just following up on the plan for this year. Everything is in the Wilmington field, it sounds like focused on oil. Obviously, gas prices in California have been pretty volatile, but generally speaking, have been very robust. Why not try to drill some gas out there as well in California, obviously have, I think, some opportunities and permits to do that, I believe.
Francisco Leon: Yes. No, we saw, in particular, in January, very, very strong natural gas prices around $47 per Mcf that’s flowing. As you know, we’re a net — a long producer of natural gas. We produce about 30 Bcf more than we consume. And so we see those prices coming in very strong. In — the question with gas always, it’s very seasonal and it’s more difficult to time. But definitely, we’re focused on natural gas and trying to bring more gas on board, and that’s a part of the plan here is to develop that inventory. But I don’t know, Jay, if you want to add any other comments around what we see it in February — in January and February. By the way, we are now doing first quarter guidance. We’re doing quarterly guidance. And you can see the anticipated realizations of natural gas that we’re expecting in Q1 flowed through those numbers.
Jay Bys: Okay. kind of to speak to the realizations and what happened in December, we generally market most of our sales gas on a first month index basis. So during the month of December, for example, when prices ran up mid-month, we were not there to participate. Now obviously, that approach served us pretty well in that first month sales process. served us well in January and again in February. To Francisco’s point, roughly 90% to 95% of the natural gas consumed in California comes in from out of state. We’d like to have a larger impact going forward, and that’s part of our plan to figure out where can we have that positive impact.
Francisco Leon: Maybe Mac has one more thing to add.
Mark McFarland: Yes. I mean that’s the benefit of being a long natural gas producer. We produce more than we consume. And it was a nice result in Jan and Feb. Leo, I just wanted to go back and address something. You had posed a question in the hypothetical about rig count. Unfortunately, we don’t deal in hypotheticals. We deal in the circumstances that are in front of us. And the circumstances that are in front of us is that we’ve laid out a drill plan that’s based off of permits in hand and have reduced the uncertainty associated with any outcome associated with Kern County or any additional permits down the road. Obviously, the question about gas is a good one because gas, in the future, has the possibility of being a transitionary fuel, if you will, or at least it’s viewed as that way, and it’s needed for the electrical grid out here.
And so that’s good to have that vision. But the reality is, is we’re dealing with circumstances all the time. And what we look at in reality, nonhypothetical situation is, is how do we maximize cash flow generation? And then what do we do with that cash?
Operator: We have a question now from Kalei Akamine from Bank of America.
Kalei Akamine: My first question is on cost. So CRC has always screened at the higher end of unit cost in the peer group. Pre-COVID, my understanding is that you guys did as much as you possibly could, yet you’re focusing your efforts here. So I want to understand what’s different today? Or maybe to ask it differently, under what premise are you guys cutting costs? Because you guys are declining this year between 5% and 7%. Are you now optimizing your permanent cost structure around a declining business?
