And so really, that’s going to be our focus going forward is extending laterals. We’ve done so by increasing our lateral length by 65% in the Marcellus over the last 5 years and we are going to continue to do that.
Zach Parham: Got it. Thanks, Josh. That’s great color.
Operator: The next question comes from Nitin Kumar with Mizuho. Please go ahead.
Nitin Kumar: Hi, good morning guys and thanks for taking our question. Nick, I am going to start with the kind of elephant in the room, gas this morning breached $2. What is your macro outlook for gas now that you are transforming into a more pure-play gas company. Curious how you are looking at both the near term and the medium term?
Nick Dell’Osso: Yes, hey, good morning. And our macro outlook for gas hasn’t changed. We are very bullish, the long-term natural gas fundamentals, and we’ve been cautious to 2023 setup for quite some time and we have referenced that throughout last year. We noted that the supply-demand dynamics were trending in a manner that suggested supply was going to outpace demand. That has clearly happened and then has been exacerbated by what’s been a pretty low demand winter weather set up. In terms of near term, I think we’re at a pretty interesting point. We’re making some changes to our program. We’ve seen a handful of others make changes to their program, hard to really know what the rest of the industry will do. You have variables like the associated gas from the Permian that as pipeline capacity comes on, that gas is going to show up to market, and you don’t really have any structural demand growth for at least a year.
And really in the end of €˜24 and into €˜25 is where you start to expect LNG export capacity to expand and so that’s how we’re going to think about what our production profile should do. We should be flat to down a little bit because the market is currently oversupplied until that structural demand growth shows up. We will never be perfect to timing that. But we do think that there are some long-term trends here that we can plan for. And then I would just note that while this morning’s gas price dipped below $2 and that is a low level and nobody likes that, we’re really not bothered by the short-term dip in gas prices, because we do expect it to be short term. We are very bullish in the long-term fundamentals. We think that the projects that are coming online will represent true incremental demand, the demand for natural gas internationally with the competitive economics of shale gas in the U.S., is strong.
We expect it to remain strong. We get a lot of questions about whether or not the war in Ukraine could end and what might happen with that. We actually think the demand for gas remains resilient regardless. There is plenty of demand for natural gas growth around the world that we don’t actually think that would have a meaningful negative impact to this long-term trend that we see. So we remain bullish beyond 2024. And we think we can manage through a flattish period until then, and we can do so in a way where we are optimizing cash flows and creating great returns for shareholders along the way.
Nitin Kumar: Great. Thanks for that detail. My other question is around the momentum spending. It was a little bit higher than we expected for 2023. It sounds like it’s just an acceleration, but could you maybe talk a little bit about what drove that exploration? And any specific milestones we should be looking for as that project starts ramping up and in terms of getting gas to that pipeline?
