Furthermore, our rail capacity to the Gulf Coast diversifies market exposure and supports future growth in the play. With our first quarter drilling program complete, we will continue to on getting the majority of our 2024 wells online through the second quarter. Moving to the Anadarko. Our 2024 drilling program commenced at the beginning of April. We are targeting the oiliest parts of our acreage to leverage the strong oil performance we saw in 2023, where the wells displayed first year oil cuts of more than 55%, with about 85% of first year revenue coming from oil. We plan to run one rig in the play for the remainder of the year and expect to see our first wells come online in the third quarter. The team has also managed our base production very effectively and we expect our 2024 Anadarko base decline rate to average an impressive 17%.
I’ll now turn the call back to Brendan.
Brendan McCracken: Thanks, Greg. Our team delivered another strong quarter, meeting or beating all our targets, and delivering cash flow per share and free cash flow above consensus. Our focus remains on maximizing capital efficiency, generating significant free cash flow, reducing debt and continuing to bolster our premium return drilling inventory. We are well positioned to deliver consistent durable returns to our shareholders through our focus on operational excellence, disciplined capital and responsible operations. This concludes our prepared remarks. Operator, we’re now ready to open the line for questions.
Operator: [Operator Instructions] We will now begin the question-and-answer session and call the first caller. Question comes from Neil Mehta at Goldman Sachs. Please go ahead.
Neil Mehta: Good morning, Brendan and team. A couple of questions for you. First, I would love your perspective, we spent a lot of time talking about the Permian over the last couple of quarters. But on the Montney specifically, and the progress you’re making in the oil window. So if you could just spend some time talking about your plans for that over the course of the year, and what do you think that investors should be focused on from a strategic perspective there?
Brendan McCracken: Yes. Thanks, Neil. Really appreciate it. And where I’ll start first is just with the resource itself. And I think this is a place that’s getting more attention from our investors, but one of the things we’ve been flagging for a little while now is the — everybody knows the Permian is the largest remaining premium oil resource in North America. And I think what a lot of people haven’t realized until recently is the second largest remaining oil resource in North America is in the Montney, and it’s sort of largely been thought of as more of a gas play. But where we’ve been focusing our capital and focusing our attention in the play has been on our acreage that’s in the condensate window, which for us sells as a premium product and really prices just like our oil price in the U.S. And so that’s been the strategic focus for us.
And look, we’re really pleased with the results. I think it’s very consistent with our durable return strategy where we’ve built a culture and expertise that lets us lead on innovation and that showing up in both our cost and our productivity performance in the play. And as we run the business at a maintenance level as a company, that’s the role that the Montney is playing within the portfolio. So investors should expect it to run relatively flat through the year and deliver free cash flow off the back of that.
Neil Mehta: Okay. That’s helpful. And then just a follow-up. We’ve got some questions this morning on just 2Q capital. It is a little bit higher than what would be implied for the full-year. I’m guessing that’s just lumpiness with the sixth rig coming up and the Anadarko kicking off, but just any perspective on just timing of CapEx in Q2?
Brendan McCracken: Yes, you got it, for sure, Neil. The sixth rig is part of that. And then we highlighted the TIL cadence, the turn-in-line cadence across the portfolio being a little lighter in 1Q and a little stronger in 2Q. And so where that will set us up is, if you look at it on a first half, second half basis as a company would be almost balanced on that capital and turn-in-line cadence, but a little bit shaded towards Q2 relative to Q1.
Neil Mehta: Okay.
Brendan McCracken: Yes, thank you, Neil.
Operator: Thank you. The next question comes from Arun Jayaram at JPMorgan. Please go ahead.
Arun Jayaram: Yes, good morning. Corey, I’m wondering if you could just maybe elaborate on the $150 million expected cash inflow, it looks like you resolved a previous asset sale dispute, but maybe some details on that and maybe perhaps timing and any tax implications from that inflow?
Corey Code: Yes. Good morning, Arun. Just based on the agreement, we’re not allowed to say a whole bunch more about it other than I can confirm it’s a very old transaction. We should have minimal cash tax with it. And then maybe the only other clarifying point would be it’s not going to show up in cash flow. So the full amount of it’s going to go to reduce debt in the second half of the year.
Brendan McCracken: And Arun, the only thing I’d add to it, we’re very pleased to get this one resolved. As Corey said, it’s an older item, not a recent one. And think generally, what that should reflect is the relentlessness that our team has to get value for our shareholders. And when you think about the $150 million from this settlement, combined with the work to roll off the REX payment this year, which actually is this month is our final REX payment owing that’s almost $300 million or maybe call it, closer to $250 million of incremental value to the shareholders. And our team is just relentless about trying to unearth those opportunities and bring them all the way to the bottom line.
Arun Jayaram: Yes. Just to clarify, do you have a sense of timing? Is that a 2Q item, or is that second half of the year?
Corey Code: It will be second half. It’s right around third, fourth quarter.
