Roger Read: Good morning. I wanted to come to two items. One, Slide 10, the end to end OVV pads on the results. And then what’s the right way to think about that particular structure as we look into 2024, right? I mean a handful of wells in this pad in the fourth quarter, good results, but what’s the right way to extrapolate that as we look at ’24 and it sounds like ’25 kind of looks similar. What’s the right way to think about it over the next, say, 24 months?
Brendan McCracken: Yes. Really appreciate you digging into this one, Roger. I think it’s a really important update. It’s obviously been one that we’ve been talking about since we announced the deal. The end-to-end wells, we now have 19 wells on stream with a meaningful amount of production data that were designed and drilled and completed by Ovintiv. It’s across three different pads that are spread out across the acreage position. Those collective 19 wells are delivering at a level consistent with our legacy 2023 wells. I mean, that’s just a tremendous outcome. I know that was one of the questions that the market had for us is, how is this acreage going to compete within our portfolio. There you go, right out of the gate, 19 wells, three pads spread across our rate in line.
That’s given us the confidence to be able to underwrite that 2024 curve, which you can see is actually a little bit up from the ’23 overall average. Really that’s what’s baking in is the full end-to-end Ovintiv design in 2024 across the combined EnCap and legacy acreage.
Roger Read: Thanks for that. And then to follow-up on the 65 locations you’ve acquired year-to-date, how much of that is brand new location? How much of that is in a sense the ability to drill the longer laterals, right? In other words, you’re acquiring additional acreage that improves a location that might not have previously been on the list? I’m just trying to understand what bolt-ons are really providing?
Brendan McCracken: It’s a mix of both of those things, Roger. It’s both the extending longer laterals and getting that across existing acres that we control onto new acres, as well as just pure, as you put it, pure new locations where we’re adding acreage adjacent to our existing position. It’s a mix of both of those things.
Operator: The next question comes from John Abbott from Bank of America.
John Abbott: Thank you for taking our questions. First question is on M&A. You have the advantage of bringing both in the U.S. and in Canada. We’ve seen a lot of industry deals in the U.S. what are your thoughts about industry consolidation in Canada at this point in time?
Brendan McCracken: Yes. I don’t think any different, Jon. I think, again, because of the actions that we’ve taken to get out ahead of the crowd, so to speak, I think that leads us in a place where we can be really disciplined and just focus on executing within the portfolio that we’ve got. As you’ve seen in the 1Q update here, we continue to be pretty focused on adding in the Permian. I would say out of the 1650, the biggest two-third of it was Permian and then the next biggest place where we did bolt-ons was in the Montney. I don’t think our view is any different in Canada versus the U.S.
John Abbott: And then for the follow-up question, if you make the decision to maintain production, even if you achieve efficiency gains and return capital shareholders, where do you see long-term maintenance CapEx for the trend?
Brendan McCracken: So we really see this guide that we’ve laid out here in ‘24 as repeatable for 2025. So obviously we’re not guiding to ‘25 and beyond, but as we look out in the business, that’s what we’re seeing is the rateable activity program that we put in place this year. We can just roll that rate into next year again and barring some big change inflation, deflation, we’d just see the same guide numbers that we rolled out today.
Operator: Thank you. At this time we have completed the question-and-answer session, and we’ll turn the call back over to Mr. Verhaest.
Jason Verhaest: Thanks Joanna, and thank you everyone for joining us today. Our call is now completed.
Operator: Ladies and gentlemen, this concludes your conference call for today. We thank you for participating, and we ask that you please disconnect your lines.
