Dave Storms: That’s perfect. Thank you for taking my question.
Anthony Gallegos: Yes. Thank you, Dave.
Operator: And our next question today comes from David Marsh with Singular Research. Please go ahead.
David Marsh: Hey guys. Thanks for taking the questions. First, Phil, if I could, I just wanted to ask a question about this convertible note repurchases. It looks like in the cash flow statement, you spent $5 million exactly the repurchase, but then said par plus crude. So, I just was wanting to get a little color like to make sure I understood, did you retire $5 million in principle of this note?
Philip Choyce: Yes. So, it was $5 million, and the crude interest was probably a couple of hundred thousand dollars on it. And that would be up in the other part of the cash flow statement and the operating piece. So, it’s $5 million pay-down at par, yes.
David Marsh: Got it. And then are they continuously callable at par at this point?
Philip Choyce: There is a mandatory offer provision where we make an offer at the end of each quarter through 2024 to pay-down at par. And so it’s $5 million each quarter through the end of this year and then it’s $3.5 million each quarter through next year. And this was the first quarter, June 30th. This was the first – this was the first offer that we made, and they accepted it.
David Marsh: Got it. I understand. And then are you guys still picking at this point? And could you kind of update us on plan to possibly transition to cash interest payment on this?
Philip Choyce: Yes. So, I think what we have said publicly is our plan was to pick through March – through March ‘24. Certainly, with the opportunity to cease picking at September, where we sit here today assuming the mandatory offers are being accepted and that’s what we think is the most likely scenario. That’s up to our lenders. Then we probably would – we will be funding the mandatory offers, but we probably would go ahead and pick through March ‘24. And then we would – our plan would be to stop picking at that point in time.
David Marsh: Got it. I am guessing that the kind of refinancing market is still not quite favorable enough for you guys to consider some type of an open market refinance at this point?
Philip Choyce: So, the kind of refinancing window under the indenture doesn’t open up until September of next year. Obviously, we are in a little bit of a down market here as far as our EBITDA and reported EBITDA. So, it wouldn’t be ideal for us to do something now, in my opinion, just because it’s a negotiation. It’s pretty early as far as when that window opens up. And I think with the opportunity to get some more rigs out, I think that – there is probably some better opportunities and discussions we can have next year.
David Marsh: Yes, I would absolutely agree. I just kind of just trying to put a finger on the pulse of it. You guys moved – you guys called out some costs in the press release with regard to moving rigs from Haynesville to Permian. $600,000 in Q1, $2.8 million in Q2, how many rigs were moved in total?
Philip Choyce: Six rigs in total.
David Marsh: Okay. Perfect. That just helps, understand – it helps me understand the cost of moving on. So, that’s really helpful. I appreciate it. That’s all I have. Let me yield to someone else here.
Philip Choyce: Thank you, David.
Operator: Thank you. And our next question today comes from Jeff Robertson with Water Tower Research. Please go ahead.