But I would just continue to note something that we’ve said all along, which is that M&A is hard €“ and it’s really hard to get buyers and sellers to agree on values that we would find would meet our non-negotiables. And our non-negotiables haven’t gone away. We continue to print them in our investor presentation for a reason. And we know that we’re going to have some liquidity this year, and we know that there is going to be some volatility in the market. We also expect that volatility to result in some attractive opportunities to buy our own stock. And so we will weigh our non-negotiables, we will weigh the attractiveness of our own stock, we will weigh all of those factors around if anybody wants to engage in an M&A discussion, is it something that is truly a good answer for our shareholders.
And if it’s not, we won’t engage. If it is, we will find out if there is a viable path forward. But M&A is hard. And it’s not something that just because you have some cash around, you’ll go pursue in a different way than you otherwise would because if you’re doing the right M&A, it’s financeable. I’ve always believed that. And so having cash can be a cost of capital advantage at times, but that’s it because otherwise, your capital is the €“ your cost of capital is reflected in your stock price, it’s reflected in the way that you trade, and it all has to work which is, again, very much in line with our non-negotiables and just having cash doesn’t make it necessarily more attractive to do M&A. Deals have to make sense. They have to be accretive.
You have to buy assets that you can make better by consolidating them into your existing portfolio, thereby creating value for both sets of shareholders that wasn’t able to be created on its own.
Nicholas Pope: Got it. I appreciate that. One thing €“ another item on modeling, the guidance for 1Q for NGL is a pretty big uptick, is that just related to the NGL price strength relative to gas and an expectation about the injection. Is there a fair amount of flexibility down there in South Texas or why that €“ we’re seeing the jump in the guidance on the NGL?
Nick Dell’Osso: It’s probably just a mix. We may have to follow-up with you on that. But obviously, we have our volumes in the rich gas area, which has a fair amount of NGLs that are going up based on the investments we had in the Upper Austin Chalk last year, and so then just the mix of assets and pricing is probably affecting that a little bit as we look at 2023 relative to 2022.
Nicholas Pope: Okay. That’s all I had. I appreciate the time, everyone.
Nick Dell’Osso: Alright, thanks a lot.
Nick Dell’Osso: Okay, thank you all for joining the call this morning. I think that was our last question. I appreciate everybody’s time. We think it’s a really interesting time in the market. We really like how we’re positioned. We think that there is an opportunity to create a lot of value for shareholders in a down market. When you have the cash flow, the liquidity and the overall strength that we have, we think this is the time the companies differentiate themselves, and we look forward to doing that for our shareholders. So we look forward to this being a really important and value-creating year for Chesapeake. We look forward to talking to all of you as we see you out at conferences or over the phone. Thanks a lot.
