Nick Dell’Osso: Well, I think as the Haynesville goes in the way of cost curve, will the U.S. market go in the way of cost curve because the Haynesville is going to be the leading asset to deliver the volume growth into LNG. So you’re spot on, Matt. The growth required for LNG is not going to be met by the very best acreage in the Haynesville alone. Now we and a couple of others do own that very best acreage. And so the relative advantages those with the best cost structure, the best full cycle return investment points for that gas are going to win. And we think this is setting up for exactly that. We think that you’re going to have some higher cost areas of the Haynesville developed. We think you’re probably going to have some higher cost areas away from the Haynesville developed as well.
One thing that we do point to as an important trend there is that we think that one of the reasons you will continue to have some of these higher cost areas developed readily in a rising price environment, and you probably will have less exploration or new play development than you’ve seen in past cycles like this is that the build-out of infrastructure is a massive challenge in the United States today. We would love to see more infrastructure built in Northeast U.S., where there is vast resources of gas that will wait for room and infrastructure to be delivered to market. If we saw more pipe built throughout all of Appalachia, including the area that we operate in Northeast Pennsylvania as well as Southwest Appalachia. I think it changed the game on how the dynamics of the cost curve for U.S. gas works.
But we don’t see that as a likely outcome in the near-term, aside from maybe Mountain Valley, which is pretty close. We’d really like to see that come online and think that there is still a reasonable chance that it will given how close it is and how much the country needs the gas. But new projects are going to be hard until there is a fundamental change in the social and political views of infrastructure in this country, not just for natural gas, but for really all forms of energy and all forms of infrastructure. And that needs to happen because until it does, we’re not going to deliver to consumers the most efficient form of energy product that they can have. And we think that’s an important trend that will play out. But until it does, we see that our company sits in a great position being overall the lowest on the cost structure for full cycle investment to activate natural gas.
Matt Portillo: Thank you.
Operator: The next question comes from Subash Chandra with Benchmark. Please go ahead.
Subash Chandra: Thank you. Hey, Nick, I think you might have references that you don’t think curtailment conditions are likely based on the shape of the curve. Is that a fair comment in the Marcellus and Haynesville, or do you think there could be some near-term physical constraints that are imminent?
Nick Dell’Osso: Whether it’s physical constraints or producers just deciding to pull back volumes, we could sell gas almost every shoulder season. And given the price set up that’s in front of us now, we’re going to expect to curtail some gas in the shoulder season. I had no idea what other producers will do, but they are going to be staring at similar economics to us. So it wouldn’t surprise me if they did the same. But that’s a common occurrence for us. We get full pipes, we get an economic flow on certain days, and we have the processes set up internally to day-by-day, hour-by-hour, decide what gas to flow and whatnot. We will proactively manage that this year, just like we do every year.
