Umang Choudhary: My questions. I appreciate all the color on the strong performance in the Permian and the Montney. And I understand that there’s less clarity in terms of how the 3Q performance will shape up in the Permian in the acquired assets. Can you remind us on the cadence of activity in the back half of this year, especially in the Permian. I’m trying to pare the improved performance, which you’ve seen recently in your legacy assets and the implication to your production guidance next year.
Brendan McCracken: Yes, I appreciate it. Yes, cadence wise, a lot going on in the Permian here in the back half of the year. So we are going to see between 60 and 70 TILs in the third quarter. and just a little bit less than that in the fourth quarter, but rate up there as well. So that’s the setup through the back half of the year on cadence, which is going to see us at a total company level, averaged 210,000 barrels a day of crude and conde in the back half of the year, and then some of that will spill into early ’24 and then we’d expect to level back out at that 200,000 barrels a day by midyear and hold that flat through the back half. So that’s the cadence set up there.
Umang Choudhary: Got you. That’s really helpful. And then my next question was on risk management. As you mentioned earlier, you added some leverage here with the transaction. Any updated thoughts around the level of hedges — hedging you want to do to protect yourself from commodity price risk next year?
Brendan McCracken: Yes. I appreciate the question there. So on hedging, really what we’ve done here is continue to use our next 12-month approach. So building the book out one quarter at a time over the next 12 months. And we’ve also continued to use three way structures to provide a soft floor that we are comfortable with, but also give some upside to higher price exposure, which, of course, would enable us to participate in a structurally stronger market. So in the second quarter here, we did add some second quarter ’24 hedges on the gas side. And so over that next 12-month period, we are about half hedged on oil and about 40% hedged on gas, again, primarily in those three wave structures. And I’m sure you saw it, but Slide 20 has got the details of that, but that’s generally the approach we’ve been taking.
I think as we continue to drive debt down, we’ll drive that hedging level down from that sort of 50% and 40% down back towards that more quarter to a third of production level.
Umang Choudhary: Got it. Thank you so much.
Brendan McCracken: Thank you.
Operator: Your next question will come from Phillips Johnston at Capital One. Please go ahead.
Phillips Johnston: Thanks. In addition to the uplift in productivity that you’re seeing in this year’s vintage of wells in the legacy Midland [ph] properties. In the slide deck, you also mentioned older wells are outperforming forecast. Just wondering what kind of magnitude you might be talking about there, what you would trim that to? And which areas you’re seeing the biggest upside?
Brendan McCracken: Yes, Phil awesome pick up. Appreciate the catch on that. And Obviously, that’s one of the most efficient ways to add production is by optimizing base. And so kind of the contributing factors here, and Greg might have some fill-ins, but it’s been what we’ve been doing on artificial lift. And then also some really inexpensive workover treatments that have been creating some boosts in our older vintage wells that we are excited about. So I don’t know, Greg, if you want to add anything there?
