Gregg Krug: Yes, that’s — yeah, that’s correct, Joe. As far as the NGLs, need to keep that in mind, we are two-stream reporter. So when we talk about our natural gas pricing, we also have an NGL component and we get a nice uplift on that. It all kind of really all depends on the particular wells, but some of these wells are really rich and there’s a lot of NGL that comes along with the production. So we get a nice uplift on that as well.
Scott Hanold: Yeah, but in particular, just to hone in on one point, just if I — if you could. Do you have any concerns, I mean, you’re growing production in the Permian. It’s tight with capacity right now. I don’t think a lot of other players are growing production too much. But do you see a risk that you may not be able to sell your gas or there’d be difficulty selling your gas that could constrain things in your outlook at this point?
Gregg Krug: No, we don’t. And one being reason is that we do hold transport — firm transport on these pipes. And if — and then we’re protected as far as on the hedging part of it on the basis there at Waha, for instance, where if you see negative pricing there, I mean, we’ve locked in that basis number for a portion of our gas, where we’re not exposed to that with that portion of gas that we’ve hedged. And so we’ve got, I think we’ve got plenty of transport to get out of the basin. We are not concerned with that. Now, you’re right, as far as with growing production that we have, that’s one reason we’re looking at additional capacity out of the basin, and we’re looking at all the different pipes. And I think we’re well on our way to get in a position where we’re going to be fine on that.
Scott Hanold: Appreciate it. Thank you.
Operator: Thank you. One moment for our next question. Thank you. Our next question comes from Tim Rezvan with KeyBanc Capital Markets. Your line is open.
Tim Rezvan: Good morning, everybody. Thank you for taking my questions. I just wanted to touch on what Scott was talking about on M&A and more on the bolt-ons side. If we look at kind of the cash you’ve raised for the tender and then the equity issuance, it was much greater than what you spent in the last couple of quarters on bolt-ons. So can you provide any kind of line of sight on what you think the bolt-on budget maybe looks like this year? I know it’s hard to gain, but there’s a lot of questions about that. Any kind of financial ring posts you can put around on what you see for the rest of the year would be very helpful. Thank you.
Joe Foran: Tim, I appreciate your question. But it’s really difficult to put any number around at all. It’s kind of like going fishing is when you go fishing, you don’t know whether you’re going to catch two fish or 10 fish. You’re going to get out there and see what works and what’s available and what could be done at a reasonable price. What I would emphasize that we don’t depend on acquisitions to meet our growth targets. Those are opportunistic. And in many cases, we’re merely adding to the working interest that we already have. And that’s kind of the way it works on trades too, is that we trade out of some we don’t have a big interest in for something that is more direct on us. So it’s a really a moving target that we first pin our growth on our drilling activity, where we control the leases and we operate the wells, and then, we opportunistically look at the acquisition opportunities, whether it’s by trade or by adding working interest from our partners, or acquiring a company, as we did Advance Energy last year.
And we have put ourselves this year with that Triple Crown of RBL stock offering and bond offering to where we can do both, meet our drilling — growth by drilling and growth by acquisition. So we’ll do a company when the opportunity is right. But we’re — we want to maintain our ability to go either way. So if you hit a dry spell on acquisitions, you’ve got plenty of leases to drill. And in that case, we’re confident that we could acquire an additional rig, or even two, to grow by organically, by drilling that our main drilling contractor for — since the inception of Matador, 40 years ago, has been Patterson or its predecessors. And we’re confident they would work with us to get us the necessary rigs if we needed to do organic growth, because the acquisitions have been slim.
And the same thing is we’re financially in position that we don’t have to cut back on the eight rigs that we currently have running that are high spec to do an acquisition. Because, as I indicated, we’ve got over $1.5 billion available, plus our cash flow, and nothing borrowed on our current RBL. And feel like if we bought some, that would only go up with the acquisition. So we tried to arrange it to give us, as we try to say, as many options as we can, Tim.
Tim Rezvan: Okay. I was trying for some numbers. I didn’t think I’d get it. But I appreciate the context. If I could [Technical Difficulty] Hello?
Joe Foran: Well, Tim, as I would say to you, Tim, as well everybody else on the call is, look, we’ll answer the questions as best we can, but want to remind you how we run an open shop here that if you’ll come to see us, we’ll spend more time with you and let you meet some people. We always want you to know that you and the other analysts are welcome to come here and have a private session with us.
Tim Rezvan: Okay. I appreciate that. If I could change gears on a follow-up on the midstream side, it sounds like things are on track for Marlan for the middle of 2025. As a bigger entity, how do you think about kind of long-term large-scale projects that you may need to do? And if you think you’re kind of beyond sort of the heavy lifting on these large projects, how do you weigh the value of owning the segment versus highlighting the value in some potential transaction? Because you could argue there’s not a lot of value in the stock today for San Mateo. And I’ll leave it there. Thank you.
Joe Foran: Well, Tim, first, I would say that’s a buying opportunity for any shareholder out there that feels we’re not getting full value because in time, we all know the market begins in the near term, maybe a popularity contest, but in the long term, it’s a weighing deal. So if I — that’s why I think you have 90% or more participation by the employees here, because they can see the value of the midstream and the returns that we’re getting from our drilling operations. So I’m patient on that. I’ve never sold a share of Matador stock because I could see that the value is increasing. Some of it had not yet been recognized, but in time, I’m confident that it will that midstream was done not just as an attraction, or that it was done because it had usefulness, utility to our drilling completion and production operations, and assured us that we wouldn’t be waiting on pipelines, but be getting our gas to market.
