Montney will be fairly flat through the year. Uinta grows a little bit more and Anadarko fairly flat to slightly down through the year until we start to bring on those wells in the second half.
Gabriel Daoud: Okay. Okay. Great. Thanks, Brendan. That’s helpful. And then I guess as a follow-up, you did $190 million or so, I guess, in bolt-ons in 1Q. Just curious what the sites like for continued bolt-ons and if we should expect maybe that similar level of spend the rest of the year? Or do you think the $190 million is kind of it for this year? Thanks guys.
Brendan McCracken: Yes. I think the thing to think about there is we’ve done a lot in this space over the last several years, and we’ve updated that outcome with the 1,650 net premium inventory additions that we’ve made over that time. And it was a combination of the smaller bolt-ons, like the ones that you referenced that we did earlier in 1Q, and then the larger transaction in the Permian last year and our organic efforts, right, converting nonpremium locations to premium on our existing acreage. And so look, I think that puts in a spot today where — we’re keeping it very opportunistic. We’re not driven to have to transact in order to extend our inventory. We’ve got that in place. And so it lets us be very value-oriented and disciplined in the market that we’re seeing today.
And I think we’ll stay opportunistic though. And when we see opportunities like we saw in 1Q to go grab some really high-quality inventory that bolts rate on to our existing acreage, we’ll continue to do that, but we’ll balance that with our ambitions on debt reduction and we’ll be disciplined about value creation.
Gabriel Daoud: Great, thanks Brendan. Thanks for the time.
Brendan McCracken: Yes, thanks Gabe.
Operator: Thank you. The next question comes from Scott Gruber of Citigroup. Please go ahead.
Scott Gruber: Yes, good morning. Just following up on the Permian rig count question. Given the efficiency gains, I’m curious, the Permian rig count of six equivalent with a modest level of growth out of the asset relative to where it’s going to stabilize in the second half?
Brendan McCracken: Well, I think that will be a ’25 question, really, Scott, because today, what we’re doing is, like I said, integrating that higher WIP activity that we inherited and whether that’s leaving us is with the guidance that you’ve got there for both the company and the asset. And really the question around is five or six the maintenance level, that will be a ’25 question that will come to as we get through the year. And really, what we’re honoring there is the rate of change that the team is continuing to drive like as we just drill faster and complete faster. So we’ll get a read on that as we get through the rest of the year and update that view for ’25 when we get there.
Scott Gruber: Okay. And then just circling back on the $150 million gain on the resolution. Just checking, you guys will receive $150 million in cash in the second half. Is that correct? And how do we think about that in terms of cash distributions or that cash going to the balance sheet?
Brendan McCracken: Yes, Scott, really appreciate the clarification. That is correct. So that’s $150 million in cash coming to us. It will not be a cash flow item. And so our intention is to put that directly to debt reduction.
Scott Gruber: Okay. Appreciate it. Thank you.
Brendan McCracken: Yes, great. Thank you.
Operator: Our next question comes from Greg Pardy at RBC Capital Markets. Please go ahead.
Greg Pardy: Yes, thanks. Good morning. I want to maybe just build a little on the balance sheet question. So that’s — the $150 million paydown is helpful. Corey, you had what — I think a working capital headwind of $376 million or so in the first quarter bits. Do you expect some of that to unwind through the year. The bigger question is where is most of the progress made in the deleveraging getting to the $4 billion? Is that really — is that predominantly going to be 2025 as you look at it?
Brendan McCracken: Yes. I’ll let Corey chime in here, Greg. But really, the progress is the free cash generation from the business, driving debt down. But I’ll turn it to Corey.
Corey Code: Yes, Greg. We’ll start to see progress even as we get through the first quarter, because we put that debt bridge in the appendix as to help people see some of these onetime items in the first quarter. So those included the bolt-ons here that were previously mentioned plus the actual cash payment of the 2023 tax bill for us. So our business will generate more free cash flow really starting in April after the first quarter and the debt starts to come down, and obviously accelerates as oil’s 80-plus. So we’ll start to see progress this year we don’t know, we have to wait until 2025 to see that.
Greg Pardy: Okay. And then thanks for that. And then maybe just related, how are you thinking about your hedging program, particularly as the balance sheet continues to deleverage, is hedging something that you could see really moving away from? Or is that something you’d want to stay involved with no matter what?
Brendan McCracken: Yes. I think — so the — maybe I’ll talk about the current state and then talk about the future. So really, what we’ve been doing with our hedging program is protecting the business against a long period of very low prices. And so with that has resulted in is us hedging on a quarterly basis about a year out in time, and hedging a brown a quarter of production on both the gas and oil fronts. And with that will let us do is withstand a period of pricing as low as 40 on the oil and two on the gas, and still be free cash flow neutral or better after the base dividend. That’s been kind of the principle of what we’ve been doing. And so as the debt comes down, I think there’s kind of two things that happened. One, the interest expense comes down and so that balancing point on free cash flow neutrality is enhanced.
And then the other is kind of your question, which is do you even feel the need to hedge at all. And I think that’s something that we’ll just continue to address as we work towards that debt reduction. But the direction of travel is as you suggested, which is as the business de-levers the need hedge goes down.
Greg Pardy: Okay. Thanks very much, Brendan.
Brendan McCracken: Yes. Thanks, Greg.
Operator: Thank you. The next question comes from Roger Read at Wells Fargo. Please go ahead.
Roger Read: Yes, thanks. Good morning. Just really wanted to follow-up on, I guess, kind of thinking about it in the portfolio side. You’ve got a nice collection of assets here. You’ve obviously done some modest acquisitions. Is there anything at this point that it makes more sense to kind of put on the back burner potentially monetize as a way to accelerate debt repayment?
