Roger Jenkins: Well, I appreciate that, Neal, and we have been very active in M&A, both buying and selling $8 billion of deals in 8 years However, this is part of our business to be a sustainable business, and I’ve rattled off to Paul a few minutes ago, 210,000 for a long time without exploration success without M&A and delivering billions of dollars to our shareholders. And it’s going to — it’s just a lot to unravel that. It gives stability to our offshore business. It’s all weighted, it’s unique. And people make the price to buy it may keep going up Neil because it’s probably not going down. So we’re happy with what we have. We have a solid business, long haul here about doing anything and going to need to execute into that and start returning to shareholders before we consider that type of opportunity right now.
Neal Dingmann: Thank you. Appreciate it.
Operator: Your next question comes from Neil Mehta with Goldman Sachs.
Neil Mehta: Roger, first question is around bolt-on M&A. You’ve done some really good stuff, particularly in the Gulf of Mexico. Just what do you think the prospects are there, especially given the — all that’s going on in Brazil right now, but curious your views on the opportunity set.
Roger Jenkins: Thank you, Neil, for that question. It’s been a real key for us as people has followed us like Goldman for a long time, came out of Malaysia, pain extensive cash taxes, got our money repatriated, bought things at very good prices in the Gulf produced way more than we originally planned and paid — and another advantage to Murphy is that we pay no cash taxes. — all the way into early ’25. So incredibly well positioned with that transaction. We look at this. We consider ourselves the leader in M&A and execution in the Gulf. Everything is brought to Murphy to review. We have incredible database and knowledge and experience around Gulf of Mexico deals. We know every deal. We know every field. And these things continue to come.
We, though, are very particular and we have a particular process around focusing on the resource first and what we will pay, oftentimes, people ask about the bid ask. It doesn’t matter to Murphy because we get a price we’re going to pay, and we don’t care about the word bid asked. So we look at them closely, look at them with our framework what will it do to the framework, how can it be financed and still try like heck to keep the framework because we really want to get into that as soon as we possibly can. So all those factors come to bear. And if we have a certain type of return and a certain type of EBITDA multiple that we look for. And when those come up, we will execute on those, but not looking at any big deals that require altering our — significantly altering our capital structure.
But look at a lot of things, a lot of people come to us to partner with them, a lot of situations coming our way due to our outstanding operatorship. As a matter of fact, we’re being promoted into drilling a well for the first time due to our operating ability. So a lot of things coming our way due to our unique operational skill set that we’re very proud of. So we’re looking at them, and we’ll look at all of them, but have a really tight criteria that we don’t share around that deal, but looking at that, and I appreciate your question on it.
Neil Mehta: All right. Great. And the quick follow-up is just you talked about it in the comments around CapEx, but we’re seeing signs of offshore inflation and things like rig rates and service commentary. How are you guys mitigating it? And what do you see in firsthand?
