Unidentified Analyst: Very good. Thank you. I’m a very happy shareholder, gentlemen. Thanks for being such prudent stewards of capital.
Kelly Loyd: Appreciate that. Thank you. Very important to us.
Operator: The next question is a follow-up from Jeff Robertson of Water Tower Research. Please go ahead.
Jeff Robertson: Thank you, Mark. As you or Kelly or Ryan, as you model the Permian wells, can you talk about what kind of impact you think those — that asset could have on Evolution’s realized oil price and also LOE? I mean Permian pricing, this receives WCS sour, right?
Ryan Stash: Yes, it’s about $3 deduct to WTI. Yes, it’s about a $3 deduct to WTI, maybe a little bit more than that. It kind of $3 to $4. And I don’t expect these will be particularly expensive to operate. So, yes, you would expect — I would expect that overall the margin for company would be better just because, the lot of the other stuff we have is either waterflooded or CO2 flooded, which typically is low margin — is a lower margin type of operation. So, yes, I would think the margins would improve.
Kelly Loyd: I definitely think it — well, I mean, the work we’ve done, it certainly stacks up to be a fairly high-margin low-cost operating-wise oil play.
Ryan Stash: Well, and it’s like whenever you have new wells, you’re drilling new wells, you’re going to be higher rate wells and that’s typically translates into higher margins.
Jeff Robertson: Thank you.
Kelly Loyd: Thanks Jeff.
Operator: The next question comes from John Bair of Ascend Wealth Advisors. Please go ahead.
John Bair: Thank you and good afternoon gentlemen.
Kelly Loyd: Thanks John.
John Bair: Just to be clear, real simple question. I guess as you move forward to develop the drill the three well pad, and your other operations, all that should be paid for through cash flow. Is that correct? In other words, you’ve ended the quarter and the year debt free with cash on the books and so forth. So, I’m just kind of curious if I’m reading this right or hearing this correctly?
Ryan Stash: Yes, John, that’s the plan. Obviously, pricing aside, but at where prices are right now in the forward market and where we expect, yes. So, we would plan and it’s always our goal to drill those out of cash flow, right? We wouldn’t additional funding to drill those.
John Bair: Right. So, other your other operations, other fields and so forth, so I’m just — I’m a little — I guess I’m a little stunned at the reaction today. And obviously a lot of questions about and I think inferring that the dividend payment might be in jeopardy and yet, you’ve confirmed the $0.12 and have long made that a very, priority. And so I’m just — I’m a little baffled at the extent of the reaction that’s going on here today. And I don’t know if you would care to comment on that at all or–
Kelly Loyd: Well, — okay, so here’s our goal. We’re going to make sure we do everything we can to make everyone who sold regret it and buy it back. How about that?
John Bair: Right. understood. Did you do any stock buyback in the last quarter at all?
Ryan Stash: We’ll obviously come out with our 10-K later to confirm that, but the stock buybacks were honestly really limited for the prior — we did a lot more, let’s just say that in the March quarter that we already published. We’ll publish out our 10-K after we close today.
John Bair: Right. Okay. Well, very good. Well, I would echo the previous — or one of the previous commentators that been pleased with how you’ve moved forward. And I hope that you do prove everybody that have been dumping this thing today in error. So, keep on doing what you’re doing.
Kelly Loyd: Thanks for the sentiment. And look as you know — and I think is pretty obvious, we run this company for the long run and we think about things with multiyear horizons. So, while nobody likes to see what’s going on in the stock today with our stock, we’re not going to let that make us make any rash decisions. We’re always going to do what what’s in the best interest for our shareholders in the long run.
John Bair: I’m fully convinced with that. Thanks very much.
Kelly Loyd: Thank you.
Operator: The next question is a follow-up from David Locke of Old Mammoth Investments. Please go ahead.
Kelly Loyd: David, are you there? Maybe he’s on mute.
David Locke: Sorry about that.
Kelly Loyd: There you go.
