I think we’re very good and getting better in our core areas, and there’s a lot still to do there. So I think you can assume we’ll continue to do what we have shown we would do, which is look to expand our core areas. We are value driven. And so if we are good at something, have the skills to do it, and we can find great value, we certainly think that we have the broadest ability in the sector in terms of scope of what we look at. But I wouldn’t take that as a hint that we’re going to get distracted. I think we like what we’re doing. And then lastly, I’d say a couple of things on the financial markets, we believe as long as you’re patient the valuations, both on the equity and debt side will translate into the M&A market, and they typically do relatively swiftly.
We’re starting to see that happen. And I’d say one of the great things about the way we’re positioned today, we’ve proven our ability to access the public markets. We’ve grown our presence there. And while the cost of debt has gone up, we’re a BB company now, and we’ve been able to push our relative cost of capital down over the time period as a public company. So I think you should just expect that we’re continuing to try to do all of those things. And the only reason we will transact is because we think it will create significant value enhancement for the shareholders.
Operator: Our next question is from the line of John Abbott with Bank of America.
John Abbott: I have two questions that are really about 2024. So in terms of your sort of production outlook. So based off your results during this quarter and for your 2023 guidance, when you’re pulling activity — some activity in from 2024, and Brandi, you gave us a range of 155,000 to 160,000 BOE per day for 2024, just given the acceleration of activity into 2023, why wouldn’t we think that you shouldn’t be at the high end of that production range?
Brandi Kendall: For ’23?
David Rockecharlie: No, ’24.
John Abbott: Into 2024. A lot of earnings out there. So yes. So you’ve accelerated activity into 2023 and your guidance range for 2024 is 155,000 to 160,000 BOE per day was the accelerated activity, why wouldn’t you be at the high end of that production range.
Brandi Kendall: John, it’s Brandi. So I think, as David hit on, right, we’ve had great operational execution all year from a drilling and completion standpoint. I think that sets us up incredibly well as we look into 2024. And I think it’s — we feel comfortable just given where we sit with our preliminary budget that the 155,000 to 160,000 makes sense relative to a capital program of roughly $600 million, which is in line with what we spent this year despite the base production is higher. So I think that’s still a fair range. I think if you end up somewhere in that range that’s good. But I think there’s a chance that we could be at the top end of the range, but we’ll look to provide more formal guidance in the next couple of months on ’24.
John Abbott: Okay. And maybe I’m reaching a little bit here. But for 2024, any — it looks like, at least, if you end — it looks like you will end potentially on a high point in terms of production in 4Q ’23. So any sort of color on the trajectory of production in 2024.
Brandi Kendall: Yes. I would expect it to be relatively consistent, both from a production and capital standpoint over the course of next year. Ultimately, it’ll be impacted on when wells are coming online. But I think for now, if you modeled it fairly consistent throughout the year, I think that’s a good assumption.
Operator: Thank you. As there are no further questions, the conference of Crescent Energy has now concluded. Thank you for your participation. You may now disconnect your lines.
