Operator: Thank you. Our next question comes from the line of Gabe Daoud of TD Cowen.
Gabe Daoud: Thank you. Morning, Joe. Morning, everybody. Maybe we could go back to the midstream angle and maybe just following up on Scott’s question. And, Joe, you kind of eluded us in the response, but just curious if the Marlin plant is at full capacity, how does this impact the way the current 21 wells are being flowed back and the next batch of advanced wells and how those will be flow back. I guess you noted you could divert the gas and lay down some lines to San Mateo, but what would the timing of that be like and how full is the San Mateo plant?
Joe Foran: Well, that’s a whole bunch of questions all in one sentence. What I would simply tell you on that score is that it’s not at full firm delivery capacity. What we are, it has room for a minimum production volume customers. Right now, we’re taking some gas, some part of that is gas on an interruptible basis. But we can extend it and that’s — again another reason that we see a market out there for more minimum production volume deals so that people are confident of their flow assurance. We think that can be attractive. So we’re leaving ourselves the flexibility to take up that optional space or to bring in third parties on a firm basis, in the meantime leaving us the option by keeping it on an interruptible basis. Gregg, did I say that right?
Gregg Krug: Yeah, yeah. It looks like, I mean, we have right now approximately 60 million going into that plant right now. But some of that, as Joe said, is on an interruptible basis. It’s short-term contracts. So we do have room for additional capacity on a firm basis that we could push out the interruptible gas or once those terms are up, we could push that out. And then we also have the connector, which we’re anticipating having done by the first quarter of next year, which will give us additional capacity and the flexibility as far as bringing it over into the San Mateo system.
Gabe Daoud: Okay. Okay. Thanks guys. That’s helpful. And then my follow-up question would be on 2024 CapEx. And maybe instead of asking about how the eighth rig impacts volumes. Just curious how the eighth rig and some of the moving pieces on midstream, how does that translate to a budget for 2024 relative to 2023?
Brian Willey: Hey, Gabe, this is Brian Willey, Chief Financial Officer. Thanks for the question. We appreciate that. I think it’s something that we are continuing to evaluate and look at as we look into the future in 2024. Joe mentioned earlier that the great production growth that we’re set up for next year being at the 145,000 BOE per day in the fourth quarter, and we also have 47 net wells in progress at the end of the year, which sets us up nicely to hit that 150,000 BOE or better next year. So thinking about the CapEx, it’s pretty early. I mean, I think normally, we go into those details in the first quarter, I’d expect we’ll do that in our February call. I mean, obviously, we’re in a volatile commodity environment and the world market as well with the tensions in the Middle East and otherwise.
And so we don’t want to get ahead of ourselves and our plan. And so there’s still a lot of planning left to be done and golf to be played before we were able to talk about that in more detail. So I’d expect more detail on that early next year.
Gabe Daoud: Okay. Understood. Thanks, Brian. Thanks everyone.
Joe Foran : I would add just we’ve got a plan A, B and C working for whatever scenario, whether Congress is unable to come together, if there’s a — the war expands in the Middle East, if peace comes or whatever, we’re trying to build in all the different options. And so we’re prepared to go and have the flexibility to move within 30 days in a different direction if circumstances necessitate it.
Brian Willey: Joe, you’re exactly right. I think the optionality piece. The midstream that we’ve talked about for many years and having that be such an advantage for us. I think as we look at the future, I think Joe said it very well having option A, B, C and just looking at the different opportunities ahead and having that midstream piece that can help support the upstream side is critical as we look towards the future.
Joe Foran : Yes, I would say, our key word around here is being nimble, being compared to move as these things come to rest in one direction or another.
Gabe Daoud: Thanks, Joe.
Brian Willey: Thank you.
Joe Foran : Thanks, Gabe.
Operator: Our next question comes from the line of Zach Parham of JPMorgan.
Zach Parham : Yes. Thanks for taking my question. First, could you just give us some updated thoughts on well productivity in general? Just looking at the state data, well productivity seems down a bit versus 2022 on average. And I know that data has its issues and the public data is a bit delayed. But just curious if that’s what you’re seeing internally or if productivity is kind of in line with your internal expectations?
Tom Elsener : Hey, Zach, this is Tom Elsener, EVP for Reservoir. We’re proud of our well results. I think as we’ve talked for quite some time, the Northern Delaware Basin has been a great part of the basin for us. The very high oil cuts and the low water cuts are things that we’re really proud of. Many of the wells in the Northern Delaware Basin, they don’t have as much gas and so they — some of them will come online with ESPs or other types of artificial lift. But I think over the years, I think we’ve done a really nice job of anticipating the way these wells would behave. And I think we’ve made great strides in our lateral lengths and our targeting. Certainly, Maxcom and all of our operations team, has had a great role to play in that. I think our Reservoir Engineering departments have done a really nice job of anticipating the — how these wells would perform. And so I think we’ve done a really nice job in that department.
