And what we found is that ultimately the need to securitize or find some buy and then exit path for those capital providers made it very untenable for the operators. And we find them seeking us out not just we are — like, the concept that we would ever abandon or that we’re leaving for others, our traditional non-operated business is far from the truth. We are as active in just our normal course of businesses we’ve ever been. But what I would tell you is that we have a lot of operators who come to us who say, I did a deal with XYZ financial firm. And I don’t want to do that ever again. I want to deal with someone who understands oil and gas, who’s willing to take the risk and who’s a permanent owner of these assets. And in that respect, cost of capital matters.
But really, what matters is alignment and risk sharing and an understanding of what we’re actually doing, not the need to just scrape a return and then move on.
Charles Meade: Thank you for that comments. Thanks. Appreciate it.
Nick O’Grady: Sure.
Operator: Our next question comes from the line of Paul Diamond with Citi. Please proceed with your question.
Paul Diamond: Thank you. Good morning. Thanks for taking my call. I just want to touch quickly on, you guys talked about hitting — kind of hit rate of like 10 of 140 ground game opportunities. As of the way just puts in kind of a low to mid single digit or mid single digit hit rate, is that the — could that be thought of its kind of your target for the longer term or is that just — is that going to shift quarter-to-quarter depending what’s in front of you?
Nick O’Grady: Yes. It’s going to shift quarter-to-quarter. It’s all going to depend on the quality and other qualitative factors in terms of what the average size working interest is as it going to move the needle. So, it’s all going to be rig and seller dependent. We’ve got our hurdle rates. That’s what we’re sticking to. And then from there, it’s a matter of just distilling down the quality opportunities. We mentioned 140 opportunities. 70 of those probably went in the garbage as soon as they hit the inbox. So, it’s all dependent on overall activity flows, as this stuff all comes in a linear fashion.
Paul Diamond: Got it. Understood. And then just one more kind of circling on M&A as well. You discussed 14 opportunities you’re currently looking at. Is there anything we should expect as a departure from scale from the ones we’ve seen over the past 18 months? Or they all relatively within that same range?
Nick O’Grady: Yes. I mean, the range generally at the kind of package level is kind of like $10 million to a $1 billion. I’d say the average size is still probably less than $200 million. I think there’s a point at which a big deal and a small deal take the same amount of time. And so, obviously, you want something that’s significant enough to be worthwhile of your time and to be impactful to the bottom line. You have a lot of costs associated with these evaluations, legal costs, all sorts of stuff. And so, you want to make sure that it’s going to be meaningful to the investor, but we’re still the Dustbuster. We’re still picking up tiny, tiny interest every single day. And going back to your last question just for a second, I think it’s worth noting that, we’re pretty robotic in terms of how we look at this.
