Kevin MacCurdy: Congratulations on the great free cash flow quarter. It looks like cash taxes came in well under expectations and the guidance for 2023 cash taxes was below our model. I wonder if you can talk about what is driving the cash taxes lower, and any benefits you may be receiving from acquisitions?
Kaes Van’t Hof: Yes. Good question, Kevin. The biggest benefit we did receive in the fourth quarter, obviously, commodity prices came down quarter-over-quarter, Q3 to Q4. So that was a surprise for the positive on cash taxes. I guess that hurts you overall. But the biggest deferral we got was when we closed the FireBird deal came with about $100 million of midstream assets and some other fixed assets that we’re able to depreciate right away, and so that allowed us to defer more taxes into 2023. As we’ve modeled 2023, we still have about $1 billion of NOL that will be exhausted this year. But on top of that, also closing the FireBird or the Lario transaction, which added some midstream and fixed assets as well. So generally, this is kind of our last year before being a full cash taxpayer. About two well timed deals allowed us to push out a little more cash. Obviously, it’s not the reason why we do the deals, but it’s a nice tangential benefit.
Operator: Our next question comes from Leo Mariani from ROTH MKM.
Leo Mariani : I was hoping you could talk a little bit about LOE trends. Just looking at the guide here. In ’23, you guys are expecting LOE to come up a little bit kind of versus where it was in ’22? Maybe just a little color around what you’re sort of seeing there.
Travis Stice : Yes. I think you’ve got just a couple things that are impacting LOE. First, we’re fairly exposed to the power market, and we rode through the back half of last year fairly unhedged through the — we’re up in gas prices and that really impacted our real-time power pricing, and you’ve seen kind of real-time power pricing kind of stay a little elevated through the first part of 2023 here. And so trying to guess where we’re going to land with respect to power and have an opportunity to get hedged to protect ourselves, but — so that’s adding about a dime. And then you’ve got another impact from the FireBird acquisition with about 900 vertical wells, which had another dime or two to our consolidated LOE. So between those two things, you’re looking at about a quarter, and we think we’re probably running in the lower end of the guide today.
And if we see some things come our way, we think we could potentially be under the guide, but we’re not baking that into our guidance.
Leo Mariani : Okay. Appreciate that. And then just on M&A, obviously, you guys were helpful in terms of talking about some of these noncore asset sales, but I think you did mention in your prepared comments that perhaps, some of those proceeds could go to bolt-ons out there in the space. I was hoping you guys could just give us a little color in terms of what you’re seeing? Are there bolt-ons available that are kind of in and around your asset base? And how would you kind of characterize the market now? Do you think that generally speaking, expectations from sellers are reasonable these days? Just trying to get a sense of whether or not there’s a decent chance you might pick something up here in ’23?
