Thomas Mireles: Yes, Charles, thanks for that question. As Roger said, we’ll be planning to utilize more of our adjusted free cash flow towards the second half of the year. We do have a little over $300 million of cash coming into the year. That’s a balance that we try to hold just to manage our business, some of our operational needs and our international and domestic activities. So we like to try to keep that cash balance around $300 million to $350 million for those needs. As you may have noticed coming into 2023 last year, we had a little over $400 million of cash, and we did use some of that towards our framework as we got into the year. But as I mentioned to Paul’s question, we try to manage this on an annual basis, this framework. And I think we’ll see more of that happening for the second half of the year.
Charles Meade: That is helpful, Tom. And then Roger, I wanted to ask about these two Gulf of Mexico prospects that you added Orange [ph] I think — I didn’t — I don’t remember the other. Ocotillo — if I’m doing the math right, it looks to me after you mentioned the $120 million of net mean after taking away the Vietnam prospects. It looks like these two Gulf of Mexico prospects are in the range of $20 million to $30 million gross. And I wondered if that’s the — if I’m doing the math right there. And if you could just talk a little bit about the timing of those prospects and what they look like and what the development time line would be if you get on that success lag?
Roger Jenkins: I think they’re a little bigger than that. I believe they’re in the 40s range. A story there. It’s a long story. We just drilled this well so. It’s a disappointing well that we disclosed earlier. But our team is doing a great job. We have a great team. We have a new enhanced team here, and people want to trade and be in our business. So when we drilled Oso for people to come into that well, Occidental, a close relationship with them, OXY. We were able to get into two of their prospects for them joining ours. We also have a very nice acreage position near Delta House. We recently did a large land trade where people want to come into our acreage, and we build into a portfolio of other wells. So we’re using our prospects to gain entry into other prospects, meaning people believe our prospects are good.
As a matter of fact, we’re doing extremely well in trading in and out and building a really nice portfolio, Chris Olson, our exploration leader, and our land team is doing a great job pulling all that together for us. These are — again, I spoke to Paul Cheng a few minutes ago about the risk of the program on occasion, you end up with a higher risk program year-to-year, I consider this year lower risk. These are amplitude type plays near one of Oxy’s very successful fields can be tied back very closely to where they work. These would be near-field tieback, totally different from Oso, totally different from other things that we drilled in the past. So this year, we have some lower risk, lower cost not its deep and tough wells, if you will, and some really nice wells in Vietnam that we’ve been on the sidelines in Vietnam for a long time until we made plans with our field development plan with that host government, now the host government is very interested and us moving forward, that’s going extremely well.
So they’re smaller wells, they’re lower risk. With a great partner, they come from acreage situations that we put together. And in Vietnam, we’re back in an area that’s been on hold for us. So that’s kind of a fast wrap-up of what we got going on there, Charles.
Charles Meade: That’s helpful detail. Thank you Roger.
Roger Jenkins: Thank you, appreciate it.
Operator: Thank you. Your next question is from Tim Rezvan from KeyBanc Capital Mortgage. Please ask your question.
Roger Jenkins: Good morning, Tim. How’re doing?
Timothy Rezvan: I am well. Thanks for taking my question. I wanted to dig back into the Eagle Ford. You have a clear, as a company, a long-term growth and income approach, there’s inherent variability in your Gulf business. So I’m trying to understand why with the uplift in productivity from new completions, why not run more of a continuous program in the Eagle Ford. It’s hard to think that, that wouldn’t compete for capital, especially given the comments you’ve given about the high-spec rigs. So just curious on that.
Roger Jenkins: We focus on our offshore business typically first because these are infrastructures that need to be used. And on a pure return basis, the returns are better. But on a risk basis, it’s different and the outcomes. It’s not quite as volatile as you say, we’ve had three really strong years of work in the Gulf made enormous billions and billions of free cash flow in our Gulf business. So we just want to hold it in here and use it later if our Gulf business, our offshore business declines. It’s a big advantage. We’re showing a plan to our Board to produce past 2050 with assets that we own without any M&A or any exploration success. So we’re a little different animal there. And we’re trying to get our balance sheet in great shape. But I’ll let Eric give you a little better color than that on this choice of capital allocation.
Eric Hambly: Yes. I think Roger, you’re right on. I mean the returns for offshore projects are typically higher than our Eagle Ford. And we like our Eagle Ford, we have great returns. We have highlighted in our slides here, how many years of great inventory we have. And we do really like the optionality we have to maintain the scale of our business and the oily scale of our business for many decades by investing in the Eagle Ford in the future. What Roger briefly touched on was that in the offshore space, it’s common that if you do not pursue an opportunity, the infrastructure where you can take that new well as a subsea tieback to a facility, the facility has a defined life. And it won’t be there forever. And so you like the returns and you want to use it or lose it.
In the Eagle Ford, that well is going to be waiting for us whenever we want it. So we like the flexibility that it provides for us. The other thing just to highlight that we have reduced our capital program in the Eagle Ford over the last few years and have generated strong free cash flows, which we’ve used to delever and return more money to shareholders, which we think is valued by our shareholders.
Roger Jenkins: We have the Eagle Ford for long-term, and we have it when we need it. We can change capital allocation on the dime here in 30 minutes. We can change cap allocation. So we’re proud to have it. I think it’s going to become more and more valuable. And I think all of our onshore assets will become more and more valuable with the scarcity of the peers in that group that only do that business decline over the next decade. There’s very valuable assets in both Canada and the Eagle Ford.
Timothy Rezvan: Okay. I appreciate the color on that. On my follow-up, if I could pivot to Vietnam. You’re allocating $40 million to the exploration wells this year. You did book the 13 million barrels of pud reserves. Can you talk about the assumptions behind those reserve bookings? Is that strictly based on that? I’m just trying to understand kind of what the upside could be from the exploration wells and how that impacted the reserves you booked and just kind of overview on how that — the other play there?
