So those will be the things that will balance the market and if it doesn’t happen sooner, it will happen, it will take longer. That means that the rest of the ’23 curve will come down some, and that will cause quicker reaction, the later action. So it will get there, and that’s what the pricing signal always does.
Operator: Our next question comes from Noel Parks with Tuohy. Your line is now open.
Noel Parks: A few things. Wondering, in the reserves, did you experience any upward revisions on type curves, either just from general efficiency or anything you’d be able to see from your redesign?
Toby Rice: Yes. So the type curve revisions resulted in an increase of about 350 Bcf and that’s sort of what we’re referring to when we said performance revisions. So we have seen an increase to performance didn’t bake in anything on the science work that we’re doing. It’s just too early to factor that in.
David Khani: Yes. You need to have more historical information for Netherlands tool to be comfortable with us booking any uplift in type person. That’s probably more of a, we’ll call it, ’24 and beyond kind of benefit.
Toby Rice: Yes. And I hope that investors look at this with a theme that you’re starting to see around this industry where well performance is sort of degrading across industry to be assured to see that high-quality assets are translating to dependable performance, and you’re seeing positive improvements in the well results that we’re putting out, I think, is — should be very reassuring for investors.
Noel Parks: Great. And I just wanted to, at this point, looking ahead to services, of course, totally curious about what the service response is going to be if we do see activity continuing to head down. But just sort of as a reference point, when is your next significant renegotiation ahead either on the rig side or the frac side?
Toby Rice: Yes. So rigs were good through the end of the year with the frac crews, 2 out of the 3 frac crews or — sorry, we have 2 out of 3 factories locked up. We’ve got a frac crew that will be joining sort of middle part of this year that we’re currently under negotiations for right now. So I’d say probably that’s the biggest big resource we have that we’re working on. And as I mentioned, steel is the other big factor, which we’ll cover through the first half of this year, and we’ll continue to work through that. pressure for the second half.
Noel Parks: And just one more. Thinking about the Tug Hill acquisition, once that closes, can you just give a rough sense of maybe how many quarters of sort of deal-related onetime impact we might have on G&A and when G&A might get back to more of a steady state on a unit basis after the close.
David Khani: Sure. So right now, we’re dealing with extra G&A tied to the FTC and it will pull an unclosed process. So if we were to effectively close by midyear, I would say probably the last of what we would deal with is most likely all hitting at the end of the second quarter. It could some hit in the third quarter. But I would say that’s probably your best bet from what we know right now.
Operator: Our next question is from Paul Diamond with Citi. Your line is now open.
Paul Diamond: Perfect just a quick question for you on 2023 guidance. The numbers give you some optionality around some growth versus some reductions just wanted to kind of get you guys sensed on the strategy. And should we be thinking about that in yearly with pricing? Or is it more — or is there kind of on the high side and then it will step change if pricing drops below a certain level?
