Nicholas Olds: Yes, John, this is Nick. Yes. You look at our operational performance from the rigs and frac crew that we have in Bakken, it’s is just performing extremely strong. Like other assets in the portfolio, you’re going to see a little bit of lumpiness from quarter-to-quarter. And you can think of Bakken at plateau. So 100,000 barrels a day for several years is a good number. I would refer you to the AIM presentation, where we talked about Eagle Ford and Bakken essentially sustaining production for $330,000 through the decade. That will give you a good long-term view. We like the asset. It’s competitive, low cost of supply, and we continue to find opportunities and looking to increase the overall inventory in that asset.
Operator: Our next question comes from the line of Roger Read with Wells Fargo.
Roger Read: It broke off, but I’ll assume I’m the only Roger on the call. Anyway, I just wanted to come back around — you’ve had some opportunities here on the investment in the acquisition front with Surmont and the deal here in Mexico. So I was just sort of curious, as you look at, let’s call it, the M&A opportunity versus the organic opportunity, what how are you comparing those 2? How are the opportunities looking on those? Thinking returns, right, where to put your incremental dollar.
Ryan Lance: Yes. Right now, I think we’re pretty focused on the organic side, Roger, but just because of the resource base right now and the stuff that we’re executing has got pretty compelling opportunity for the company to focus most of our capital and our allocation towards our organic side of the business. But it’s performing as well as it is. We’re delivering the efficiencies that Nick talked about in the Lower 48 and what Andy is delivering around the rest of the world. that just looks to be compelling opportunities for the company. But with that said, you kind of — you hang around the hoop, and you catch these rebounds a little bit because — we never know when our partners in some of these assets make different strategic decisions, which is clearly what our partner at APLNG has done or is doing and what’s clearly what our partner at Surmont is done and is doing.
So we know these assets really well, and we’ve tried to — we’re consistent in the framework around cost of supply that we described to you a number of years ago of how we kind of match up inorganic opportunities with organic opportunities. And that’s why we want to have the financial strength that we do with cash on the balance sheet and the ability to fund these projects when they come available. You just never know when your partner makes the kind of decisions that they have made. And we want — when we know the assets well and we can get it for a deal that’s very competitive, as you talked about, vis-a-vis Surmont and APLNG, for that matter, we’re going to be all over those when those opportunities present themselves. We never quite know when they do.
But — so we’re mostly focused on the organic side of the portfolio, but we want to have the firepower and be there. And we watch everything. We pay attention to everything that’s going on in the market. We know what we like, and we know what we can afford to pay more importantly. And when we can bring those 2 together, we want to be able to execute those when those opportunities present themselves. And that — and it was really opportunistic with both APLNG and Surmont. We had partners that made strategic decisions to go in a different direction, and that was to our advantage. So we want to take advantage of that.
Roger Read: Absolutely. And then just as a follow-up question on the agreement to go the LNG route on the West Coast of Mexico. What is the situation with takeaway capacity to get there, presumably from the Permian? Just what pipelines might need to be constructed in order to make this project or bring it to fruition?
William Bullock: Yes, Roger, this is Bill. So 2 points. First up, the 2.2 million tons from Saguaro, that is an offtake agreement. It’s not an equity investment. So I just think it’s important to make sure that that’s clear. And then for the specific question about the pipeline, I’d really direct you to the operator of Mexico Pacific for a detailed answer, but they’ve had several press releases out, including one in July that announced a 20-year agreement with CFE. That’s the Federal Electric Commission in Mexico to supply Mexico Pacific with natural gas delivered from the Permian Basin via CFE’s pipelines in Mexico. And so that’s the best source of information for you on that. And of course, that takeaway from the Permian is helpful for Waha differentials and pricing overall.
