Doug Leggate : Thank you for the answers, guys. I hope that the operator doesn’t take this as my second question. It’s more of a clarification point. What do you think your dividend breakeven is right now? I do have a separate follow-up question?
Dan Lyons: Yeah, well we say with sustaining capital and our dividend, we’re about $35, that’s WTI, U.S. dollars, so that’s where we are. So a pretty good spot I would say. And leaves open room for growth over time.
Doug Leggate : Perfect. Thank you. My follow-up is actually on Kearl, but a slightly different question. You’re the only – I think I’m correct in saying this. You’re the only major mining project left that’s still pre-royalty. Given all the moving parts, potentially the fact that you are out-performing obviously, and there was obviously some growth options down the road. To the extent you can give any visibility, how long do you expect to stay pre-royalty? We’ve got you through the end of the decade. I’m curious if you can offer any color on that. I’m going to leave it there. Thank you.
Brad Corson: Yeah. Thanks for the comment, Doug. I’ll defer that one to Den as well.
A – Dan Lyons: Yeah, obviously it depends on prices Doug. But our outlook is to be pre-royalty, and I think, we would – the end of the decade or even more is probably very reasonable. But it’s very sensitive to prices. If prices get really high, we’d get there sooner. But for the foreseeable future, in reasonable scenarios, I think we’ll – we will continue to be pre-royalty, which is a significant benefit for us on a cash flow basis for sure.
Doug Leggate : Absolutely. Well guys, thanks for taking my questions and congrats on nailing this dividend story.
Brad Corson: Thanks, Doug.
Operator: Your next question comes from the line of Menno Hulshof with TD Securities. Go ahead.
Menno Hulshof: Thanks everyone and good morning. Maybe I’ll just start with a question on Grand Rapids, Phase 1, which of course is solvent-assisted. You did, Brad, touch on the emissions reduction in your prepared comments. But can you just elaborate on some of the KPIs for this project, including SORs, OpEx, and how much solvent is actually getting recycled through the system? And then as a follow-up to that, how do you — how much do you think you can scale up solvent-assisted over time?
Brad Corson: Yeah, thanks for the question Menno. I don’t necessarily have those details at my fingertips on those metrics for Grand Rapids. I’ll maybe defer to Simon, who’s here beside me to see if he has those. And if he doesn’t, we may have to follow-up with you offline on those. But I will say that from a very macro standpoint, what is most important is we do expect to deliver 15,000 barrels a day from this asset. It’s very high return economically. By its design it relies on lower steam production, which is more economic for us, and lower emissions intensity. So those are the macros that are most important for the project and how it fits into our overall strategy to increase production, reduce operating costs, reduce greenhouse gas emission intensity. But now I’ll see if Simon has any of those more details he can share with you.
Simon Younger: Yes, no worries Brad. I can take a bit of a run at some of those. I mean, as Brad shared, in terms of the greenhouse gas intensity for Grand Rapids, Phase 1, when we started up, we expect it to be at least 40% lower than our heritage CSS process. If you compared it though to set conventional SAGD with the addition of SA, the solvent-assisted, depending on how we evolve that and optimize that through time, think about that as anywhere from a sort of a 10% to a 20% improvement over conventional SAGD by virtue of the solvent-addition. So that would be a key sort of KPI as you were asking about. Another one of course is the solvent recovery, which will only be known over time and through experience, again, as we optimize the operation.
But certainly we’re looking at numbers north of 85% or even 90% on the solvent recovery will be a key KPI. You mentioned unit costs. I think if you look across industry, at the most competitive SAGD operations, sort of as low as $10 a barrel, I’d certainly expect us to be targeting that and even improving on that, again, aided by the benefit of the solvent-assisted, the solvent addition to the SAGD process, which by the way, we piloted for several years at Cold Lake, which gave us the confidence to proceed with a full scale investment at Grand Rapids. And then I think another part of your question was sort of what’s the running room? And I would say it’s substantial. I mean, we’re starting with our first pad here. It’s got 21 well pairs. We’re currently steaming, and that’s across two wings.
We’re currently steaming one of those. But we have – there’s running room. If this, if the Grand Rapids resource development proves successful, we’ve got running room of several more pads, up to as many as 10 additional pads. So it’s really exciting, and the whole organization is super excited to see across this first quarter of this year how we bring that new asset online.
Menno Hulshof: Terrific. I appreciate the detail. And for my second question, I’m just going to follow-up on Dennis’s and your comments on autonomous haul, and I’m probably getting a bit ahead of things, but is conversion of the dozer fleet still in the cards, and to the extent that it is, how would that compare in terms of scale with what you’ve done so far in the truck side of things, and any initial high level thoughts on timing and upside would be helpful as well.
Brad Corson: Yeah, thanks for that question. I mean, it is an example of the next evolution of autonomous or driverless that we are looking at, and we are actively piloting driverless dozers. So it’s really exciting. We see huge benefits to that across the whole range of considerations I mentioned earlier, starting first with safety, as well as cost or activity. We’re very early in that pilot test work, so I think it’s premature for me to quantify it, but our early experience with our pilot work is very encouraging. So we’re continuing to progress that work, and again, I think we’ll be in a better position to talk about that at Investor Day. And I’ll just remind you that, the evolution of the autonomous hull trucks at Kearl took several years.
And so I would anticipate, as we look at expanding that technology and approach to other pieces of equipment, it takes time, because we obviously want to make sure that not only we get the full benefit, but that we are in no way compromising the safety of the operation. So stay tuned, more to come.
Menno Hulshof: Thanks, Brad. I’ll turn it back. Thanks.
Brad Corson: Thank you.
Operator: Your next question comes from the line of Patrick O’Rourke with ATB Capital Markets. Please go ahead.
Patrick O’Rourke : Oh, hey guys. Good morning. Congratulations on the dividend increase, and a great quarter. You’ve obviously unpacked a lot between the prepared remarks and a lot of the very detailed questions we’ve had. So perhaps this first question is going a little bit off the board, but so we’re seeing industrial, we’re in drought conditions in Western Canada, and we’re starting to see industrial water use restrictions that are coming about. Are there sort of any commercial risks to your business, and how are you preparing for those going forward here in 2024?
