The Board of Directors today at Crescent has representatives related to 40% of the stockholding. And so we think there’s really strong alignment there. And we really like waking up every day, knowing that we’ve got support from the shareholders and from the Board to continue to pursue the same strategy. So, we view it as a positive, not a negative. And I think over time, as the sector continues to chase different strategic alternatives, I think Crescent being committed to it successful and stable strategy is going to be a great thing. So, that’s how I’d answer that question.
John Abbott: Appreciate the color. And then when you think about for the second question. When you think about your CapEx and productivity gains and if you think about what your CapEx budget is this year, as you peer into 2025, I mean just how do you think about spending on a year-over-year basis? I think it’s a little bit higher this year? How do you sort of think about capital spend potentially peering into 2025 just given what you’ve achieved in the segment?
Brandi Kendall: Hey, John its Brandi. Thanks for the questions. So, we would view our 2024 program as is maintenance pro forma for our most recent acquisitions that’s the 155 to 160 at plus or minus $600 million of capital. So, I think it’s fair to assume that that’s a good maintenance capital level for us going forward.
John Abbott: Appreciate it. Thank you very much for taking our questions.
Brandi Kendall: Thanks John.
Operator: Thank you. And our next question comes from the line of Tarek Hamid with JPMorgan. Please proceed with your question.
Tarek Hamid: Hey, good morning. So, familiar with interest formation the Utica designed on just wondering kind of how that changes how you think how you think about the Uinta sorry as I said is that target for further acquisitions?
Clay Rynd: Hey, hey Tarek it’s Clay. Listen I think we’re obviously very encouraged about the results we’re seeing with the updated completion design and allocate more capital there this year. So, we’re excited about the organic opportunity on the capital side certainly it’s unique placed for further M&A given how we ultimately came in ownership of that the asset we own there today. So, it’s a place we’re paying attention to as you’d expect, but there’s obviously unique dynamics around that as well that that we’re cognizant of. So, it’s an area we love to continue to invest behind won’t be imprudent in terms of how we think about it.
Tarek Hamid: Got it. And then I guess just turning over to the new capital return framework. I mean you guys have always been very, very thoughtful about returning capital to shareholders so just love a little bit more context on why the decision to go from your kind of historical sort of 10% of EBITDA philosophy to this new updated philosophy?
David Rockecharlie: Hey great question. Obviously, we’ve had a lot of dialogue around this. The number one thing I would I would say and kind of reiterate about the way you asked your question and we’re definitely not changing anything in terms of strategic approach which is take care of the balance sheet and deliver a dividend, so that we’re taking care of the investors first. We do — we’ve sort of lifted at both the private and public company and had that same strategy and approach consistently for over a decade now. And make sure we just think that this is enhancing and simplifying. And so anything we can do to make things simpler make the business more predictable and more credible, we think is good. And so again we were not in a hurry to change anything do we were — were and still are a leader in return of capital in the sector.
But when you look at the balance sheet and the dividend policy. So, we think this is just more of the same, but more predictable and more value really to the business.
Tarek Hamid: So, really think about just the predictability of the fixed dividend the one thing that you source in life easier for shareholders?
David Rockecharlie: Yes, I think that’s right. I think it’s the same though in terms of predictability for the balance sheet as well. I know we would get questions around on it is it is 10% of target. And how do you think about 10% what percentage. And so I think just telling everybody hey we’re committed to it. No change to the commitment on priorities 1a 1b, balance sheet dividend and just making sure everybody knows we’ve been paying $0.12 for the last year and we feel very comfortable continuing to pay, pay that $0.12 this quarter obviously and defining that as our framework going forward. But other than that no change side. So, I think the main takeaway should be and this team has been doing the same thing as it relates to return of capital and taking care of the investors, both through the balance sheet and dividend and we’ll continue to do so.
Tarek Hamid: Got it. Thank you. That’s it for me.
David Rockecharlie: Great.
Operator: Thank you. And our next question comes from the line of Hanwen Chang with Wells Fargo Securities. Please proceed with your question.
Hanwen Chang: Thanks for taking my question. The first question is on the Western Eagle Ford assets. Could you give us some colors on the Austin Chalk potential? Do you have any are testing projects planned for 2024? And what have you learned from recent offset activity?
