Jeanine Wai : Okay. Great. And then maybe just going back to return of capital. Looking at just the buyback plus the variable amount for this quarter, the buyback was about 44% between the two of those. Is that rough split kind of indicative of what we should be expecting in the future? Or is it really just more opportunistic every quarter. We’re just really just checking in if there’s any change in how you’re viewing the variable versus the buyback.
Kaes Van’t Hof : Yes, no change, Jeanine. Really, the variable is the output of how many shares we didn’t buy back in a particular quarter, and the buyback is still going to be very opportunistic. And I think now that we’ve kind of gone through this for four or five quarters, you can see that we step in and buy back when things are weaker. There’s still been a lot of volatility in the space. We’re going through a period of that volatility right now. And so you look back at a quarter like Q4, bought back less shares in October and November, but hit the buyback very hard in December. And I think you can expect us to keep doing that and then having the variable be the output of what base dividend plus buyback doesn’t get through in a particular quarter.
Operator: Derrick Whitfield from Stifel has our next question.
Derrick Whitfield: Good morning, all. Congrats on a strong year-end.
Travis Stice: Thank you, Derrick.
Kaes Van’t Hof : Thanks, Derrick.
Derrick Whitfield : Building on an earlier question, I wanted to focus on your well productivity. Aside from the development sequencing impacts, are there one to two primary drivers that would explain the improvement you observed in all performance year-over-year?
Kaes Van’t Hof : I think the biggest benefit, Derrick, is not only the assets we acquired from QEP and guide on, I think that deal while done at a tough time hit exactly what you’re looking for in a transaction, right? We allocate more capital to those assets that we would have allocated to the business prior to the deals. So we’re seeing a little benefit there. Those assets are also in areas where you have three or four or even five zone development, and so we’re having massive pads come on in high-return areas with a little bit of a benefit on the Viper side with high mineral interest across that position. So space — as Travis mentioned earlier in the call, taking a close look at spacing, learning from other operators in the basin, what to do and what not to do and implementing that very quickly into our plan is paying dividends.
Derrick Whitfield : Perfect. And for my follow-up, I wanted to focus on your 2023 capital program. If we were to assume a flat commodity price environment, where are your greatest headwinds and tailwinds from a service cost perspective?
Kaes Van’t Hof: The biggest headwind over the last six quarters has been casing costs. Now we can certainly see around the corner that maybe we’re seeing some softening there. I’m not going to count on it until we see it, but casing has moved up from, let’s call it, $40 or $50 a foot to $110 a foot. It’s 20% of our Midland Basin well cost now, and that’s a significant headwind over the last 6 quarters. I think the headwind is going to ease. If not, it’s a little bit out of our control. But the things that we can control are the efficiencies gained from simul-frac operations. We’ll probably have four simul-frac crews running by Q2 of this year, which is highly efficient, saves about $30 a foot versus conventional crews. And on top of that, two of those crews are going to be the Halliburton e-fleet Zeus crews, and those use less fuel, but also run on cheap Waha gas right now.
So that saves another $15 or $20 a foot. So we’re doing what we can to cut costs and keep costs as low as possible in an inflationary environment.
Operator: Our next question comes from Roger Read from Wells Fargo Securities.
