Jim Evans: Yes, that’s right. At EQT, we completely changed the design of these wells from when we originally hockey assets. They’ve widen spacing, change the completion of time, changed the pullback methodology. So these will just continue to hang in much better than we had expected. And obviously, there’s not a ton of activity that’s been happening out there. And so our modeling is still based on old methodology, and we continue to update that as we go and we see more. But yes, the Marcellus stuff just continues to outperform. And the Utica be in the first quarter as well. Those wells continue to clean out better than we had expected. So that was a nice outperformance there as well.
Nick O’Grady: And while it’s not huge for us, if you actually model out our Appalachian asset, just how much cash flow it has generated for us over the life of its ownership, it has been an amazing investment for us. It is paid out in less than a year and then just continues for very little capital investment continues even with low gas prices to generate significant cash flow for us. It’s been a great investment.
Paul Diamond: Good. Thanks for the clarity.
Operator: Your next question comes from the line of Noel Parks of Tuohy Brothers. Please go ahead.
Noel Park: Hi, good morning. Just had a couple. I was wondering, do you have any sense of maybe where incremental service cost trends are heading in your basin feel like so far in the earnings season, we’ve been getting sort of a mixed picture, just depending on location and type of service. So any thoughts here would be great.
Nick O’Grady: I would say no, very modest deflation we’ve seen year-to-date, but I would imagine as oil prices have increased, I would guess that’s a flattening trend.
Noel Parks: Great. Fair enough. And I was just wondering, you did mention what you’ve all seen was your gas in the Permian and so forth. And I believe over time, you’ve discussed that you are pretty vigilant about the state of infrastructure when you’re looking at potential deals out there and look to steer clear of areas where you have many questions or doubts. I’m just wondering, are you getting deals brought to you that fall into that category these days?
Nick O’Grady: Yes. I think specifically, a lot of assets in parts of the Delaware, you have to be very wary around, particularly as you get parts that New Mexico and other parts where they might be in. They might not have access to midstream systems and you have to understand that going into it. You need to know who your operator is. And so absolutely, all of that goes into the equation. Do you know who are your operators? Do they have firm access? Are they interruptible? Can they be kicked off the system all that stuff. That’s why you hear us talk a lot about this, but knowing who your operator is knowing what kind of midstream access they’re going to have is critical. I think as an issue overall, I think it’s something that it’s the Permian Basin.
So it will, over time, get solved, but I think it’s going to be chronic for some time. In the end, it’s a minor economic none, meaning it doesn’t really destroy the economics of the wells. It just is something that we can model in and still make the level economic, but it certainly doesn’t help.
Jim Evans: That’s right. You just make sure that you’re modeling it. The costs as well as the development time stand.
Nick O’Grady: We were trying to buy something in helping or something like that, it might be a different equation, but that’s helpful.
Noel Parks: Great. Thanks a lot.
Operator: That concludes our Q&A session. I will now turn the conference back over to Nick O’Grady for closing remarks.
Nick O’Grady: Thank you all for joining us today. We appreciate your continued support and look forward to touching base with you in the coming weeks.
Operator: Ladies and gentlemen, that concludes today’s call. Thank you all for joining. You may now disconnect.
