Joe Foran: Yeah. And on that same deal is we’re comforted by the amount of repeat business. Virtually all of our current third-party customers are repeat customers that have been with us before. But let me turn it to Glenn, who’s the Head of our Production that is making that happen.
Glenn Stetson: Yeah. And, Neal, I just wanted to kind of pile on here and give a shoutout to the guys in the field, Sam Witton and Paul Ramirez were a big part of getting those connectors driven to completion on time or ahead of time and on budget. Those connectors, in the quarter, we installed over 50 miles of pipe and we talked about some of the oilfield service side, but those guys work very — our guys in the field work very closely with the companies that construct those pipelines. And we were able to do quite a bit of work in the first quarter and it sets us up very nicely for the second quarter. We have a number of wells that are going to produce too — utilize those connectors, including those 21 Dagger Lake South wells. So it was a very busy quarter and again, kind of sets us up really nicely here for Q2.
Neal Dingmann: Great details. Thanks, Joe. Thanks, team.
Joe Foran: Thanks, Neal.
Operator: Thank you. One moment for our next question. Our next question comes from Zach Parham with JPM. Your line is open.
Zach Parham: Hey, guys, thanks for taking my question. You highlighted that higher oil volumes were driven by better-than-expected production at Stateline. I noticed you haven’t turned in line any wells there since 2Q of last year. So just trying to get a little bit more color on what’s driving the outperformance there. Is it lower, shallower declines than you would have thought? Maybe just any color you can provide there on the better performance.
Tom Elsener: Hey, Zach, it’s Tom Elsener. Yeah, thank you for your question. It’s a great question. I think a lot of the performance has been to really on the midstream team again. I know we’ve talked about that quite a bit. But they have a unique system that they designed down at Stateline that Glenn can talk about more. But basically, they are able to custom put these wells into either a high-pressure, medium pressure or low-pressure gathering system that allows them to very rapidly, appropriately fit the wells to the pipeline pressure. And the lower pressure they can go into, the better the wells can produce. And that also aids in our ability to recover from offset activity if wells go down and need repairs. There’s a lot of clever things that Glenn and his team [and worked with the San Mateo team] (ph) have been able to accomplish on there.
There are certainly great wells and we’re very proud of them as well. But I think a lot of the comments you made here recently have been to the credit of the midstream team. I will say we have drilled six additional wells, and those will be online here later in the second quarter as well.
Zach Parham: Got it. Thanks for that color. And then just one on the guidance. You raised the full-year guide to the high end of the range, but didn’t provide an update on the 4Q exit rate guidance, which was previously, I think, 98,000 barrels a day at the high end. Just trying to get a sense of the production trajectory going forward. Based on my math, to get to the high end of the range in ’24, it seemed like you’re just over 100,000 barrels a day in 4Q. Maybe if you could just give us an update on where you expect to exit the year and maybe any initial thoughts on what that could mean for 2025 volumes?
Brian Willey: Yeah, Zach, this is Brian. Happy to answer that. Thanks for the question. You’re right, we pointed the high end of guidance. We’re really proud of the quarter that we had, and to be able to point to the high end of guidance for the year. I mean, fantastic work by the teams and be able to execute that. And we haven’t given a lot of specifics on the second half of the year whether the balance between the third quarter and the fourth quarter. I think there’s a lot of golf to be played there. And so, I think expect third quarter to continue to improve over second quarter and then as it relates to fourth quarter, obviously a few months out and early in the year. So we haven’t updated the guidance as it relates to that quarter yet, but we’re really excited about the remainder of the year and how it sets us up for a great 2024 and then into 2025. So just really, really great news all around.
Zach Parham: Okay. Thanks guys.
Joe Foran: Thanks, Zach.
Operator: Thank you. And our final question comes from the line of Leo Mariani with ROTH. Your line is open.
Leo Mariani: Hey, guys. I wanted to just ask a little bit on CapEx trajectory here. Wanted to get a sense of how you see that kind of playing out. I know you’ve got the second-quarter guidance here. Would you guys expect CapEx to come down a bit in the second half of the year versus first half? Just trying to kind of get a sense of the capital cadence as it kind of relates to the operations.
Joe Foran: Leo, that’s a great question. And we talk about it every week, if not every day, of how things are looking. And it’s a little hard to predict because somewhat tied to what the commodity price is doing. If the commodity price goes up, our current estimates would be a little low. If it goes down, then our CapEx estimates are probably going to be a little high. Now, that’s simplistic, but we try to put the best number we can and adjust it throughout the year. So — and stay within cash flow and the other financial parameters that we make our decisions by. But let me turn it to Brian Willey, because he works on this every day, if not every hour.
Brian Willey: Thanks, Joe. It certainly feels like every hour. It’s not every minute. So we think about this a lot, as Joe said, and talk about that. And you’re right, Leo. We did a point to the high end of guidance for production. But we were proud that we were able to do that and not change our guidance as it relates to capital expenditures. And you saw in our release, we had $10 million that was in savings that we incurred during the first quarter. So great job by Chris and his team, the production group as well, and did really great execution. The remainder was just shifted into the second quarter. And we expect throughout the remainder of the year, that kind of that midpoint of guidance on the CapEx that you’ll see that just play out over the third quarter and then into the fourth quarter. So — but really excited to be able to raise production guidance while we didn’t change CapEx guidance. I think that’s a great story for us.
