Charles Meade: Got it. And then, Nick, another question on the CapEx. And I want to get the benefit because I’m sure you participated in a lot of internal discussions. And I want to make sure I understand what you’re saying and I’m thinking about the right implications going forward. I mean, in 4Q, you guys had a big CapEx and it came in a lot higher expected you pre-released that. We got another one here this quarter. If I understood you correctly, the two main drivers appear to be increased cycle time or reduced cycle, so increased pace. And a higher oil price, which leads to more AFE proposals. And if that’s correct, what are those two vectors? Are they flat going forward?
Nick O’Grady: I’m not sure I followed Charles.
Charles Meade: Is the arrow pointed, I mean, are we — do we still — if those are the two big drivers, you go a different direction, if you want. But the question is, as we look at 2Q and 3Q, are those errors still pointed up or are we going to have further decreased cycle time? The oil price isn’t going up, but is there a building wave of AFEs? Or is this kind of a spurt that’s going to attend to that?
Nick O’Grady: I got a question like 2018 when I first started here being like, okay, it’s a productivity improvement in the Bakken done? Because well cost — wells have gotten so much better and fracking’s gotten so much better. And then every single year, they found ways to make wells better. And I got the same question last year and I got the same question a year before. And the answer is the industry is amazing. They’ve found ways to go faster and faster and faster. And frankly, the onus is on us. But look, we have candidly struggled to keep up with the pace and we’ve been, I mean, I don’t view it necessarily as a bad thing, but the speed at which our operator has gone has obviously taken a smart surprise to some degree. But at the same time, I don’t really see this as the total cap like, you can see it in our weighted average cost of a well.
We’re not blowing through, we’re not having inflationary pressures. If you look at the overall capital delta, we drilled three extra wells this quarter, right? And you saw it in the top line results, right? So, I don’t think — again, I don’t really see a major disconnect here. The delta of last quarter is masked by the fact that ultimately, it’s really a percentage of completion things as opposed to additional TILs. But ultimately, yes, you’re seeing cycle times. Can I predict if the operators are going to stop going faster? I don’t know if I can make that prediction because that would be predicting something that I don’t control. And I would say operators are incentivized to make more and more money. So I’d say they’re whether oil prices are going up or down, I’d say if oil prices go down, they’re going to still try to find a way to make more money.
So they’re going to find a way to go faster and faster and make more money. So I would say, no, they’re going to still find ways to go faster.
Jim Evans: And it’s just going to depend on the operator mix and the development mix and the working interest that we’re getting in the door, right? And you don’t necessarily have that view of AFEs because they might ballot two AFEs, one week and then they followed it up with six more and they all end up being on the same path. So those are things that we need to digest and truly understand. I think the AFE activity has picked up. We’ve seen that in March and April, and we would expect in this environment, all things remain the same that development cadence and everything else will continue, but that can change on a dime.
Charles Meade: Got it. Thank you for that.
Operator: Question comes from the line of Derrick Whitfield with Stifel. Please go ahead.
Derrick Whitfield: Thanks. Good morning, all. Regarding the larger asset packages, how would you characterize the competition you’re experiencing in that market at present? Aside from the quality and wider bid-ask spreads you saw in Q1, is that still a robust market and opportunity for you?
Nick O’Grady: Yes. At the larger package, Derrick. I don’t think we felt like there’s a ton of — I mean we’ve certainly seen bankers try to make, give the illusion of competition in a couple of cases, but we haven’t really seen much competition for brand in reality. I think where the challenge has been more that I think there’s been, I think, of late, it’s been harder for us to find assets that we really wanted to lean in on meaning like where you knew the clearing price and would we really feel like they were assets that we would be willing to pay what you knew it was required to take it home. I guess is where I was.
Jim Evans: Yes. I guess framing it up a different way for you. I mean we’re certainly seeing more entrants from family offices and private equity groups and some cross over from the minerals side, which is obviously validating in terms of other sources recognizing the power of the business model, but that’s largely limited to smaller funds. And so where I think you see maybe a little bit more of an elevation in competition is on the smaller ground game side. We’re playing in different sandboxes. When you’re starting to talk about asset packages that are north of $150 million in terms of funds that are being raised and being able to handle potential concentration, those types of things. And so I think what we’re seeing in that regard is generally status quo. Obviously, that can also change. But based on kind of what we’re seeing and the feedback that we’re getting, I don’t see a material change on the large.
Nick O’Grady: Yes. I mean, I’d say where we see people we’ve definitely seen buyers of PDP centric assets. And that we’re very happy to see that because it’s just not where we’re generally focused.
