Nick O’Grady: On the latter part, what I could tell you is that there’s a huge difference between a one or two rig private company and a large several hundred thousand barrel a day company from a both a technical perspective and from just a sourcing. I mean, you’re talking in some cases millions of dollars per well. And that means, it’s — because the small guy is borrowing a frac crew in between time and sourcing their tubulars on the spot and all those sort of things. And so, that’s why the bulk of our operation, general, we’re a smaller company by public standards, but our operating group is mostly large companies. It doesn’t mean there aren’t private companies that are incredibly good drillers and can make up for it. In other ways, there are exceptions to every rule.
But by and large scale is incredibly important from a sourcing perspective. There’s just a big difference between a company like Amubert , and that operates a lot of our Permian assets with, you know, 20 rigs running versus someone with a stand up rig and sourcing things on the spot. Everything from midstream contracts to drilling costs to every ancillary cost along the chain.
Adam Dirlam: No. That’s right. I think, having conversations with our operators, they’re seeing some really fund the tangibles. Not necessarily having to put down deposits in order to secure supplies, all of that kind of comes through from a pricing standpoint as well, from an inflationary standpoint.
Derrick Whitfield: And on the leading edge, is there anything worth discussing?
Adam Dirlam: No. I mean, I think it’s the tangibles that really we’ve seen in the release. There’s been some drilling contract and those sets of things that we’ve seen that make up the largest percentage the overall AFE? No. Does it help? Yes.
Derrick Whitfield: Makes sense. Very helpful, guys.
Adam Dirlam: Thanks Derrick.
Operator: Our next question comes from the line of Donovan Schafer with Northland Capital Markets. Please proceed with your question.
Donovan Schafer: Hey, guys. Thanks for taking the questions. I want to start off talking about — it’s a little bit kind of further looking. I mean, this would be talking about one to maybe even like three-year time horizon. But I want to focus on infrastructure and pipelines and so forth. So obviously, you have pretty big stakes in some of the major basins, the Permian, the Williston and then you’ve got a certain amount involvement in Appalachian. And these are all areas that have potentially meaningful benefits from some addition to pipeline infrastructure, maybe LNG capacity in the Gulf. Just other types of developments like that? And then, you’ve got the situation now like I also cover a lot of the kind of clean energy names.
And I was at a conference this week in California with commercial fleets are getting forced to like electrify or do something. And they’re freaking out because of the infrastructure. Like they are – I mean, it was like just shy of panic in terms of being able to hit targets that are being legislated and so forth. So now you’ve got Democrats and Republicans, it’s like what Mansion tried to do. Try and get like a permitting reform something where it seems like they might be able to get Republicans on board or the key to it could be giving concessions on traditional sort of oil and gas type infrastructure, making it easier for all that to happen. So I’m just curious, if you guys have any kind of unique insights if this is something you follow.
