Jeff Leitzell: Yes, Scott. Just there’s no major updates this quarter, especially just in the Permian with the Wolfcamp. We’re still seeing the outstanding strong results that we talked about earlier. Consistently 20% uplift in the first year production in EOR. The thing I would say is there in the Permian, we do have a handful of tests up in the shallower targets, and that’s really where our focus is shifting out there. We hope to bring those on towards the end of this year and kind of the first half of next year. And once we get those results, we’ll go ahead and share those with. But then around the rest of the plays, we talked about in the Powder River Basin, we do have a test in the ground we’re currently evaluating there.
And then more so over in the Utica, obviously, we started applying that with all of our new designs there. So seeing good results, but we’re still just kind of collecting data and we’ll see exactly what formations that we have success with moving forward.
Scott Gruber: Got it. And then a follow-up on the South Texas pipeline. Does the completion of Phase 2 of the pipeline later next year influence how you think about the cadence of activity in Dorado? Are you inclined to add rigs into the play later in ’24 to set the stage for a stronger growth once the pipeline is complete?
Billy Helms: Yes, Scott. This is Billy. Phase 2, first of all, we’re very excited about that project. Getting that pipeline is going to give us access to multiple markets in that basin. The pace of activity in Dorado is really governed by our learnings and results more so than the pipeline date. Certainly, we’re excited about the pipeline, because as Lance laid out, it’s going to allow us to save $0.20 or $0.30 in Mcf over the life of those reserves, which is 21 Tcf of reserves, But the pace of activity is really governed by how we see the macro and our learnings as we progress to play really independent of the pipeline.
Lance Terveen: And then this is Lance, too. Some of the other strategic things we’ve done as you think about Phase 2, once we go in service, just to start, we already have existing capacity with other existing markets that are in place. But as Billy mentioned, really excited about getting to what we’re going to potentially see as premium markets because we’ve got offtake agreements already in place, 2 of those which are very strategic. One of those, obviously, is with Cheniere and excited to see the development and momentum they’re getting with the Stage 3 facility where we’ll be a big piece of. And then, just two, the Transco, we’ll have a strategic connection there. And that’s going to give us access all the way up essentially the Gulf Coast Corridor, getting all the way into the premium market. So again, really excited about that as well, just from an offtake capability as well.
Operator: The next question comes from Derrick Whitfield of Stifel. Please go ahead.
Derrick Whitfield: I have two questions related to topics not covered yet. So first question, I wanted to focus on your CCS pilot, was the benefit of a year of experience in the pilot. I wonder to see if you could speak to some of the learnings to date and applicability of the pilot to your larger operations as a means to achieve net zero.
Billy Helms: Yes, Derrick, this is Billy. Yes, the CCS pilot project, we’re very excited about that project, what we’ve learned and how we can move forward with the play. So as far as how we’ve learned, there’s a lot of operational things we’ve kind of uncovered as we develop that project, how we think about the CO2 we’re sequestering, how we store it, how we move it, the pipeline infrastructure, the equipment we need, those kind of things. But also technically, what we’ve learned there as well. One thing we bring to the table on all these CCS projects, we have an immense amount of understanding of geological areas to store the carbon and our ability to map out those zones. And then we’re also very good at drilling wells. So applying those 2 things give us some advantage on projects as we move forward.
What we’ve learned in some of the monitoring we’ve done so far is very supportive of our initial thoughts on the play and how we can store the CO2 and observe its movement in the ground and be able to have confidence that we can store that for a sustainable period of time. So we’re learning a lot. We’re very pleased with the results we’re seeing. Now we’re also looking beyond our pilot project to see where else we can apply that technology. And it’s early to say yet where we’re going to take that, but needless to say, we’re encouraged with what we’re doing and excited about the opportunities moving forward.
Scott Gruber: Great. And then, second, I wanted to lean in on your shallow water exploration schedule. With offshore drilling rig rates approaching historic levels and industry messaging sustained strength, how does that impact your views on the timeline for exploration wells and, more importantly, development activities, assuming exploration success?
Billy Helms: Yes, Derrick. This is Billy again. Certainly, for offshore, as you mentioned there, the rig utilization is pretty tight or I’d say it’s pretty high. So the market remains pretty tight on offshore rigs. We are very happy and pleased with the activity we have ongoing in Trinidad. We’ve been in the Trinidad, just a reminder, we’ve been in Trinidad for over 30 years. And currently, we have line of sight on probably one of our longest running programs we’ve ever had in the history of that play. And so we’ve secured a rig there for that operation and very pleased with the results we’ve seen to date. So now moving forward, as far as our exploration activity, certainly we’re interested in pursuing other shallow water offshore opportunities in the company, and mainly because we’ve built quite a bit of expertise of drilling these offshore wells very efficiently and cost competitively compared to the industry.
So we think that gives us a strategic advantage being able to pursue these kind of opportunities around the world. So we’re continuing to look for those opportunities. And certainly, those opportunities would factor in the cost of doing business today the current offshore rig environment. And they’d have to be competitive with what we’re doing in the rest of our portfolio. So looking at it that way, we see opportunities to continue to pursue that and excited about what that looks like going forward.
Operator: The next question comes from Nitin Kumar of Mizuho. Please go ahead.
