Michael Henderson: Yes. Just looking at the wells to sales cadence, I’d probably start the capital program is very much tracking its plan. So kind of we fully expect it to execute on that. Kind of purely typical for us to be more front-end loaded. We are seeing some outperformance from an execution perspective, particularly in the drilling space. Looking back, and I think we’ve got a record quarter in the second quarter from a drilling perspective. Similar story in Permian where I think year-to-date, we’ve had our best-ever drilling performance, similar story in the completion space. And then in Eagle Ford, again, a similar story there. I think what’s encouraging in the Eagle Ford is with the Ensign acreage since we’ve got in there, we’re probably drilling our wells about 10% faster than what they were drilling them last year.
So when you kind of combine all of that together, it’s putting a little bit of pressure on the wells to sales in the year, but I think how I think about it, that pressure is going to really translate more so in the fourth quarter. So if you think about it, we’re probably pulling a few wells in from the first quarter into the fourth quarter. So from a capital and production perspective, not going to have a big impact on 2023, but potentially could set us up well or for the run into 2024 in the first quarter there. You asked specifically about Eagle Ford well performance. Yes, I think we highlighted the 74 branch wells in Atascosa County. Those are extended laterals. We’re seeing some great performance and great early production performance out of those, and that’s an area of the play that we’ve got some future running room.
I expect that’s going to be a big part of our execution portfolio in ’24 and then into ’25 . Hopefully, that answered all the questions that you had there.
Lee Tillman: Yes. I just think one, Arun, just on Permian to, you’d asked a little bit about why we saw a little bit of a step down sequentially there. That was generally speaking to a little bit of lag in our workover program, and we are on top of a couple of large producers that went down. We had to get a workover rig on them. And then finally, we had some midstream gas takeaway that was a little bit delayed on one of our new pads in the quarter. All that’s been resolved now. So really just a question of timing, no well performance issues whatsoever.
Operator: The next question comes from Josh Silverstein of UBS.
Joshua Silverstein: You had some comments before on the — some of the EG infilling opportunities there. Can you also talk about just the product scope of some of the other field developments, the time line for investments? Are these a couple of hundred million dollar products over 3 or 4 years? Just a little bit more about the scope of the opportunity there?
Lee Tillman: Yes. You bet, Josh. Happy to do so. Yes, just maybe stepping back, first of all, on the infill drilling program. The objective here, of course, in EG is to continue to base load, our 3.7 MTPA train. We obviously prefer to do that with equity molecules. But to the extent [indiscernible] will also drive third-party molecules there to maximize the value proposition out of this really world-class infrastructure. The unique feature, of course, of the Alba infill program is that we’re fully aligned across the value chain, from the AlpaPSC, all the way through EG LNG, so those are extremely valuable molecules and would ultimately help us offset and mitigate some of the decline that we’re seeing from the Alpha field. And again, remember, we have aligned interest that we’ve got about 64% interest in the Albin unit.
We’ve got about 56% working interest in EG LNG and, of course, are operator of both. So the beauty of the program is this is going to be a very high confidence low execution risk. And in the world of offshore production, we would consider this about a short cycle as you can get. These are — this would be jackup drilling over existing facilities, typically reentry, dry trees. And so again, from an offshore perspective, these are relatively straightforward opportunities. The work we’re doing now is, of course, assessing the economics, really making sure that we have good solid target locations, working with our partners to ensure there’s good alignment there, but ultimately, we believe up to 2 wells in Alba can compete with those risks at a very strong risk-adjusted returns that we’re generating here in the U.S. portfolio.
If we can stay on track with an FID decision in the near term, then they could have us in a position subject to rig availability to may even be able to spud late ’24 in that time frame. The way the capital will phase just quite frankly, on a say, a notional couple of billion-dollar budget, it’s not going to be material. It will be phased over time. And again, across our total budget, we just don’t see this to be a big needle mover for us, but very accretive opportunities for our EG asset.
Joshua Silverstein: Got it. That’s helpful. And then obviously, there’s a lot of upside to come as the contract rolls off, but we’ve also seen a lot of volatility in TTF and international pricing. Is there anything you guys can do to take some of that volatility out? Are there — is there a hedging liquidity? Are there contracts you can sign. Just anything that you can provide there, given we’ve seen as much volatility there as we have here.
Lee Tillman: Yes, I think we’ve tried to show the notional uplift that we could obtain from the change in commercial terms that will occur January 1, 2024. And the reality is, Josh, as long as there is arbitrage between Henry Hub and TTF, there’s going to be financial uplift in EG. Really, it’s just going to be a matter, as you said, of where does that global LNG market price ultimately land. We’ve shown some sensitivities, $15, $20 and $40 TTF. And in all those cases, there’s material uplift relative to what we’re seeing in 2023. The work is ongoing from a commercial standpoint from the liquefaction agreement, the lifting agreements all the way through to LNG marketing. More to come on that. But as I think we said in our opening comments, the good news for us is we’re going out into a very competitive market today where LNG cargoes, particularly Atlantic Margin sourced LNG cargoes that are advanced into Europe are going to be very much sought after.
And I would just emphasize that buyers are looking for reliable suppliers. And over the life of EG LNG, we’ve never missed a cargo. And so I think we’re in a very good position to maybe not damp out all the volatility that you referenced, but certainly take full advantage of the market price that’s available to us.
Operator: The next question comes from Scott Hanold from RBC Capital Markets.
