John Lindsay: Yeah, Waqar that €“ we’re excited about that opportunity, as Mark said, and there’s a lot of experience on the ground there. Tamboran has €“ guys that have done a lot of work on unconventional plays in the U.S., and we’re excited to be working with them. We think it’s a great opportunity, again, it’s really early days, but it looks like an exciting play.
Waqar Syed: Absolutely. And then just final question, John, what’s your contracting strategy change, given that you now have like this capital allocation program and you’ve got this $1.94 type dividend that you’re planning for fiscal year 2023?
John Lindsay: No. Waqar, I’m not completely following the change of contracting strategy.
Waqar Syed: Well, now, I’m just saying like you have about, let’s say, two-thirds rigs contracted right now. And that’s pretty much consistent of what you’ve had over the last 1-year or so. And, I mean, like 50% over the next 6 months. I’m just thinking that would you get a higher number of rigs on the term contracts for the subsequent 6 months going forward? Are you okay with that, despite having a high level of dividend that you’d be paying out?
John Lindsay: Yeah, we’re targeting in a 50% to 60% range. And that really hasn’t been driven by the dividend levels. I mean, the cash that we’re generating is €“ as Mark described, we should have excess cash outside of that plan. Mark, what would you add?
Mark Smith: I would just say today, we talked about so many of them rolling over between now and the end of March, and their comment, Waqar, the average term length today is probably 10, 11 months. So, you have to just remember that by and large, those €“ so many of the term contracts that have existed from rollovers back from the super-spec upgrading timeframe are really in the 1-year calendar period. That’s why so much of our capital allocation plan is as a result of the customers, and they’re really adhering to their annual budgets. And so that really gives us an underpinning in our confidence for the annual supplemental plan. But, overall, where we are in this cycle, and due to that, due to not having new bills, due to not having significant investments and super-spec upgrades, and due to customers living in an annual fiscal year budget as opposed to cash flow, you see a lot of 12-month terms.
Waqar Syed: Yeah. Okay. Thank you very much.
John Lindsay: Much different cycle, Waqar, than what we experienced previously, because obviously we’re not looking at new bills, we don’t have all that capital outlay. And as we’ve said, we’re really focused on this in margin generation, it’s a margin cycle, not really a growth cycle. So we’re excited about that.
Waqar Syed: Wonderful. Thank you very much.
John Lindsay: Thank you.
Operator: We’ll go next on Marc Bianchi with Cowen. Please go ahead.
Marc Bianchi: Hey, thanks. Mark, I think in your prepared remarks, you mentioned a $1,500 sequential benefit to margin. Was that meant for the March quarter? And then does that kind of continue in the subsequent quarters was that the message just because of how the contracts kind of roll off and reprice?
Mark Smith: It’s actually happening for this December quarter, and then each of the next couple. But that’s exactly right, Mark, that’s what I was talking about is that rollover, when you pull the lower term out, helps the average of the remaining on term.
Marc Bianchi: Okay. With the benefit in December quarter should be better than the $1,500. If I’m just trying to back into what’s implied by the 250 to 270. Is that correct?
Mark Smith: Yeah, you’re correct. Yeah, it’s a little bit better.
