All those things are proven in certain areas. And then we’ve got good geologic reasons to believe they’re going to work in other areas where we have drilled them. So we’re excited to add those kind of locations into our portfolio, but we’re not going to go out there and explore for 25,000-foot vertical wells to see the next gas play or something like that. That’s not our game.
Subash Chandra: Got it. And do you have any sort of theories or ways that you want to tackle the disconnect between your multiple and now what’s size, the fact you have a pan Permian presence, some of the, I guess, old excuses have gone by the wayside as why your multiple is what it is. But how do you think internally about tackling that deficit and getting something closer to PDP value?
Robert Anderson: Yeah. That is a great question, and we wrestle with it probably every day. And the one thing that we can do is we can continue to perform. And we just did another deal or in the process of closing another deal. So I think folks need to see that we’ve done another good transaction, and I believe they will. The results are pretty impressive on that acreage position. And I’m confident that our team can operate it and maybe even shave off some costs. We’re starting to see some good efficiencies and efficiencies that are sticky. They’re staying with us — and I think as we continue to show those results, investors will take notice and probably can’t avoid taking a hard look at Earthstone. We do have some larger inside ownership with EnCap and Post.
They are sticky investors. And then we’ve got other investors who have hold large positions that over time, they’ll probably sell off some of their shares, and that will be great for trading volume and liquidity and allow folks to get in our stock at the appropriate time. So we work really hard every day to prove to the market that we bought good assets and we can execute on those.
Subash Chander: Terrific. Sounds like a plan. Thank you.
Robert Anderson: Thanks, Shubash
Operator: Thank you. Our next questions come from the line of Charles Meade with Johnson Rice. Please proceed with your questions.
Charles Meade : Good afternoon, Robert and Steve Mark and the rest of the Earthstone Crew. Mark, going back to your comments, I want to see if I understood correctly, it sounded to me like you were attributing most of the I guess the beat or most of the outperformance versus your plan was coming from the Tides assets. And if that’s the right understanding, are there some reasons that you would point us to for why that’s not going to continue?
Robert Anderson: Yes. So that’s a few questions. Those are great questions, and I know I spent a bunch at once, and I was — as I was sitting here a lot on how long we’re going I was wondering how we can start in the next time. But thinking about Titus, I wasn’t really attributing our ability to hold production flat for the past three quarters at 105 a day two ties. That’s just the timing of the benchmark. And that was the first time in 7 quarters we didn’t do a new acquisition. So we’ve now actually had three full quarters with no acquisitions. So since then, we’ve held production flat at 105. I mean, back then, our model was, if I’m thinking about this right, our guidance for 4Q last year was 98,000 to 102,00 million BOE per day, and we came in at almost 105,000.
And then candidly, we — our midpoint of the guidance, pre-NoVO is 100 a day this year. our model was lower than the $104 million something that we did in the first quarter and certainly lower than the $105 million we just did this quarter. It’s not related to Titus per se. I would say really, it’s related to capital efficiency and being able to turn drilling and completion dollars into better wells than we had anticipated. And then I would say on top of that, the PEP has declined less like thinking specifically about the second quarter, and we had this call in May, I was pretty darn nervous about EBIT 100 a day. And as I told you, we had just shut in a bunch of stuff in Lea County that was heavy oil and like — literally overnight lost 4,000 barrels a day of oil.
The BOE is higher than that. And really, what’s happened is that hit like it was. We had downtime that was higher than normal in 2Q, and it came out almost exactly like we expected. So we started looking at, well, hey, how are we 105 a day and really kind of the same oil content that we had expected. It is a function of two things. I mean some of the early wells, but not every single well, but on average, our early well results are better than what our model has been. And then secondly, even just looking at the PDP. The PDP decline rate on call it wells that were online by year end or maybe even like by late first quarter, they didn’t decline as much as we had forecasted. So net-net, we do probably have some conservatism around some of the forecasting as it relates to type curves, but we’re really encouraged that they’re doing better than we expected.
It’s not really just the tightest assets. I mean, they certainly are a part of it. I would say that Delaware, generally speaking has just looked better than what we modeled. And it’s a little bit — we’re sitting here telling you that the fourth quarter is going to be 130, 135 a day. And we think that’s pretty reasonable. We’re also telling you it’s going to drop next year. I recognize that we told you that last year, it never actually dropped. So you might think we’re being too conservative. We don’t think we’re being too conservative. I mean, if that turns out to be the case, fantastic, but we’re adjusting real time as we’re seeing some things outperform relative to prior expectations.
