Scott Hanold: I guess just sticking with EG since we’re on that topic. Could you give us some color on how those discussions with counterparties are going and your partners? And just give us a sense, if you could, on what, I guess, counterparties are looking for in terms of duration and flexibility as well, that would be helpful.
Lee Tillman: Yes. I would just say, first of all, this is a competitive process, Scott, that we’re in. And from a milestone standpoint, we’re right on track in terms of the commercial milestones that we laid out. And so I want to be absolutely clear. There’s no question that we’ll be receiving global LNG pricing come January 1. Right now, we’re in a competitive process with multiple buyers to, again, drive that competitive tension and deliver what we think will be the most value from whoever that counterparty will ultimately be. But that’s an active ongoing competitive process right now, Scott.
Scott Hanold: I mean, are you able to talk about what kind of duration you’re looking for? And obviously, you talked about maybe stabilizing the Elba field. Is that part of showing that the assets have duration for those counterparties?
Lee Tillman: Yes. I’ll go back to my comment around reliability and security of supply. So certainly, duration is an important element that is in. Of course, the terms that we’re currently discussing. But until we kind of complete that competitive discussion, I don’t want to get too far into some of the commercial details. Suffice to say though, Scott, that we do believe that we’ll be able to provide a very solid runway of LNG cargoes for those counterparties. And so it will be — certainly, we’re looking at a longer-term kind of contractual relationship.
Scott Hanold: Okay. And then my follow-up is a little on 2024. You gave a few tidbits, but clearly, you’re sticking to the maintenance program, but with some of the potential tailwinds coming into the year that you spoke of based on your more efficient program. I mean, at a high level, that coupled with maybe some service cost savings, can you give us a sense of how in general, you’re thinking about that CapEx budget relative to the one, I guess, 195 you’re targeting this year?
Lee Tillman: Yes. Well, of course, it’s a bit early to start forecasting into 2024. But let me, first of all, just share a few thoughts. The case to be for us remains a maintenance oil production level, that means we’re going to be back targeting kind of that notional 10,000 barrels of oil per day. So no real surprises there. And in fact, even at a capital allocation level, I wouldn’t expect a sea change in terms of the mix amongst even our assets as we look ahead to 2024. I do believe, and I think Mike hit upon this in the comments that market trends continue to, I think, give us an opportunity to see some downward pressure in pricing I think we’re well positioned to take advantage of that in the second half of the year. But I don’t think from a materiality standpoint, those deflationary impacts are really not going to take root until 2024.
Now that’s all going to be subject to the market kind of staying where it is. I mean on the service side, it continues to be a supply and demand market for them as well. So do I see an encouraging trend there? Yes. Am I going to give you a quantification of that right now. It’s just a bit too early to go there.
Operator: The next question comes from Neal Dingmann of Truist Securities.
Neal Dingmann: My question is on the D&C specifically, like a number of your peers continue to sort of push the limits and see the benefits of going to larger wells, such as the 3 milers and talking about the upside that they see on returns from this versus the 2 milers and 1. I’m just wondering do you all agree with this assessment? And if so, what type of opportunities in your plays do you have for this?
Michael Henderson: Yes, Neal, it’s Mike. Yes, I definitely, definitely agree with that assessment. It’s been a focus area for — I think it started predominantly with the Permian asset. We’ve progressed from a lot of single mile laterals there. Team has done an incredible amount of work over the last few years. We’ve actually traded close to 5,000 acres over the last couple of years. And that’s allowed us to develop this inventory of 10 years plus of 2 milers there. We’ve now expanded that approach. We’re having a look at potential opportunities in the Eagle Ford and the Bakken. What I’d say Permian is probably still the basin that I think presents the most opportunity for us. But I mean, as we as we included in the deck, we’ve got some opportunities that we just brought online in Atascosa County this quarter in Eagle Ford, I expect more of that.
I mentioned that earlier in the response to run. I expect more of those types of wells coming into the portfolio next year and potentially even ’25, having a look in Bakken is probably a bit more of a limited opportunity set there, but nevertheless, the team are looking at. And even Oklahoma, we’re drilling 3-mile Springer well at the moment. That’s being drilled under the JV that we’ve got there. But if that proves successful, I could open up a few more parts as well for us and oily pads also in Oklahoma, which is always helpful. So I’d characterize it by yet, we’re definitely seeing the uplift, and it’s something that the teams are actively progressing.
Neal Dingmann: Very good. That’s great to hear. And then my second question, just on sort of the regional oil production. I know you guys don’t specifically guide on in each of the regions, but there’s definitely continues to be a pretty nice notably pick up in the Bakken. And I’m just wondering, I guess, almost simultaneously, it seemed like the perm fell a little bit more than we were anticipating. I’m just wondering for each of those, or anything to read into that? Or is it just more timing of the D&C plan?
Michael Henderson: I think in Bakken, you’re seeing the benefits, strong execution there in the second quarter. You’ve seen the benefits and read through into volumes. I think that would translate into the third quarter as well. And Permian, as we mentioned, we’ve had 3 or 4 quarters growing volumes there, but a bit of — seeing some outperformance there, a little bit of underperformance this quarter. But again, as we mentioned, 2 contributing factors there. We had a few prolific base wells go down that we had to work over. And that was simply — that was transitions from ESPs to gas lift. So just it was more of a timing thing there. We do plan for better than that at any given quarter but we just so few more wells coming out and normally there were just some tie-ins were little that weighted on the gas side for the new five well patent that was brought on. So nothing concerning and again we contract in Q3 from the volume perspective yet no concerns there.
Operator: The next question comes from Doug Leggate of Bank of America Merrill Lynch.
