Zach Parham : Hey, guys. Just one question. Following up on Oliver’s question on CapEx. You’ve guided to $100 million run rate for the second half. Any thoughts on what that looks like as you go into ’24 if you’re still running the two-rig program? Is that $100 million run rate kind of a good number to use as a placeholder for now?
Chris Stavros : Yeah. Clearly, it feels still early for ’24, but I know you guys love to have these things at this stage of the year. So yeah, I think it’s reasonable. I mean I think if — I think it’s a reasonable way to look at it for the moment. If pressed, we won’t deviate from our objectives, which means we’ll be disciplined and efficient around the spending. And this will yield and provide mid-single-digit growth. But if I had to be pressed on an amount for capital and based on our current pace of activity and where product prices are around now, I think while we pressed on a number, I think 400 to 425 feels like a reasonable range at the moment going into next year.
Zach Parham : Got it. That’s very helpful color. That’s all I had, guys. Thanks a lot.
Chris Stavros : Okay, thanks.
Operator: And at this time, our last question comes from Tim Rezvan from KeyBanc. Tim, you may go ahead.
Tim Rezvan : Yeah, thanks, everybody for taking my questions. First I want to ask on the repurchase program. The average share price was down pretty sharply for you and all your peers in the second quarter. The number of shares repurchased, though was down and you still generated a lot of free cash flow. Just trying to understand how sort of formulaic is your program and how tactical is it? Because I thought you might have picked away some more shares when they’re selling off.
Chris Stavros : Yeah. I mean it is tactical. I mean, it’s — we don’t sort of deliver the program to any particular broker per se and just sort of how we feel on any given day. We look for opportunities to be a little bit more aggressive or not around the share repurchase. We sort of have our own self-imposed not rigid, but at least 1% of the outstanding per quarter. I’d like to use that as a bit of a bogey, but we could do more. Look, Tim, I mean maybe if somebody was on vacation like me or something like that, did get added, as aggressively as I wanted to. But we’ll look at how the shares perform on a relative and absolute basis. And I’d like to think about it as the way an investor or shareholder would think about buying stock or owning the stock.
Tim Rezvan : Okay. Okay. Fair enough. I appreciate the comments. And then I just wanted to circle up and ask another question sort of related to Giddings disclosures. I appreciated the context on the $40 million bolt-on and you said you don’t want to talk a lot about this potential in new development area. But to be frank, you haven’t talked a lot about your old development areas and your current development areas. And as we take a bigger picture view of the stock this year, it’s been a little bit of an underperformer. Short interest has been creeping up and valuations are now starting to look rich relative to kind of mid-cap peers. This is at a time when it’s hard for the energy sector to kind of get mind share with investors.
So given that setup, do you still — is it at some point, do you feel like you need to kind of pull back the curtain a little bit because there are a lot of questions from investors on sort of the depth and quality of your acreage in Giddings and sort of what your true development area looks like. So any context would be kind of appreciated. Thank you.
Chris Stavros : Yeah. No, I appreciate the question. I don’t feel the need to pull back the curtain. I feel like these — this kind of direction is almost inducing us to say something weird like you can’t handle the truth or something. Now the truth is, and the facts are that it’s borne out or manifested in the outcome of the growth that we’ve seen, the returns that we’ve seen, the free cash flow. So all that has worked out very well in Giddings. And as I said, we have large corral of wells that — highly economic wells that we can continue to drill and we will. On the acquisition, again, a $40 million acquisition, this sort of barely moves the needle in terms of the money. And my hope, frankly, is that we can do more of these things because I’m always looking — we’re always looking for opportunities to further enhance the footprint in Giddings and improve the quality and sustainability of the asset base.
This is nowhere nothing near anything most other companies — or many other companies have done in terms of larger scale acquisitions. While at the same time, having been very upfront or more so upfront in terms of pulling back the curtain on what they have talked about having in terms of runway or economic inventory or whatever you want to say. This is sort of — look, no one’s really pushed other folks as far as why would you’ve done billions of dollars of deals when you claim you got a pathway to the next decade or whatever. So I’m perfectly comfortable with what we’ve done and how we’ve set it and how we framed it. I think I’d be giving away too much competitive information, if I said much more on the acquisition and some other things. So I don’t know if that helps you, but my job really is to improve the value of the business every day and with everything we do.
And so if the valuation is better — that means we’re doing the right thing and the outcome is borne out in that premium.
Tim Rezvan : Thanks, Chris. I appreciate the color and I know it’s a tough situation. And just to close the loop though, I mean these sort of bolt-on pieces, is that — are you going to continue to be opportunistic in that call it $20 million to $100 million size, we could expect them more to come down the pike as you can shake off acreage from peers or privates.
