As far as your — the first part of your question regarding the basin rig count activity, we have seen the rig count drop off, like you said, from the low-40s down to, say the mid-30s. But we’ve continued to see oil production in the basin continue to grow. So, I think it’s just a function of timing for different operators that’s driving that. I don’t think that there’s any anticipated real material slowdown in activity in the basin. I think it’s rig shifting between operators sometimes depending on how the rig count is counted, from that it can fluctuate rigs, handful of rigs here and there. So, again, I don’t think we’ve seen anything from an overall activity perspective in the basin that would change the trajectory for where we think production in North Dakota is going.
Brian Reynolds : Great. Appreciate the color. Enjoy the rest of your morning.
John A. Gatling: Sure. Thank you.
Operator: Perfect. Thank you. [Operator Instructions]. Our next question comes from the line of Douglas Irwin from Citi.
Douglas Irwin: Hi, thanks for the question. Maybe just to start with buybacks, and maybe a two part question here. I guess first, around kind of the outlook and some guidance. We’ve started the year with over a $1 billion of financial flexibility as you framed it, and then we’ve seen $200 million of buyback since then and you still guiding to over a $1 billion of flexibility. So I guess first, just curious if that’s kind of an indication of an improved outlook there. And then second, just wondering if you could maybe talk a bit about how much of that flexibility is attributed to kind of spare revolver capacity versus maybe excess free cash flow going forward.
Jonathan C. Stein: Okay, sure. So yes, in terms of the $1 billion, let just start there, and the plan going forward, right. As we had said at the beginning, we have more than a $1 billion, if you really think about what we’ve talked about and talk about EBITDA growth, of more than 10% and free cash flow growth also more than 10%. So, we have significant capacity financial flexibility to be able to execute, and as we’ve highlighted, historically, we had done in ’21 to ’22, one large buyback per year. Now going forward, we intend to do multiple buybacks per year on an ongoing basis through 2025 using that flexibility. So, we’re really in a great spot there. I continue to have more than a $1 billion even after those [two $100 million] (ph) buybacks in the first and second quarter.
In terms of funding that and capacity going forward, really highlight, first I would say just to highlight that when we said at the beginning, we had explained that really about 40% of that $1 billion at least we expect to be funded from excess free cash flow as our free cash flow positive after distributions. And then the remainder would be funded with debt and relative to our leverage capacity as we fall below our targeted 3x leverage target. So, where we are now is we’ve basically funded the first two on the revolver, we still have $800 million left on the revolver together with the fact that 40% of the flexibility of the financial capacity we have will be funded with free cash flow after distribution and that $800 million we have on the revolver, we have significant capacity there and really no pressure in terms of that.
As we have done in the past, certainly we have the option to trim out those borrowings on the revolver, and we can look at that, we don’t have the optionality to decide if and when we do that, whether it makes sense relative to the market, at our own capital structure. But I think right now, we have significant flexibility whether it be on the $800 million in terms of the revolver capacity and together with again the 40% of that $1 billion is $400 million at least of excess free cash flow that we will generate over the next three years and two and a half years, all that provides significant financial flexibility for us to continue to execute our return on capital program on an ongoing basis with multiple buybacks per year through 2025.
