But again, we also like the optionality that it has for next year, and that could be capital that comes out of next year program or becomes still a part of the base program in 2024 and €˜25.
Neal Dingmann: Thank you. I’m glad that you all spend that now.
Jeff Ventura: Could you repeat that Neal?
Neal Dingmann: I said thanks. And I appreciate it. It’s really good to see that you’re all spending that now for next year’s build.
Jeff Ventura: Okay. Thank you Neal,
Mark Scucchi: Thanks Neal.
Operator: Please stand by for our next question. Our next question comes from the line of Arun Jayaram of J.P. Morgan. Your line is now open.
Arun Jayaram : Yes, good morning, Jeff, Mark. I wanted to get your thoughts on just potentially unlocking value. It’s clear that you think the stock is undervalued based on your PV10 update at strip. And I was wondering, your thoughts on how you unlock value beyond using the buy back and if someone came knocking on the door, what type of approach would you take in terms of evaluating some sort of bid. And just you know putting that relative to your views on what’s an appropriate, call it mid-cycle natural gas price.
Jeff Ventura: Yeah, I’d just say you know, you’re talking about if somebody came knocking on the door. So clearly you’re probably referring to the Reuters article and the good news there is Pioneer, confirmed their position that they’re not considering a deal. And then the good part is the position we’re in. We’re extremely confident in our inventory life and in our assets and our ability to deliver shareholder value. So we’re in a great position where we don’t need to pursue any sort of M&A. And again back to, you know we can talk about unlocking value. I think just consistently executing, you’re seeing €“ you know again, if you look at it in your work that you put out in some of your research, you see declining productivity in most basins and in most companies across the U.S. it doesn’t matter with basin it’s in.
We’re unique and that for one of the few companies that doesn’t see that. But you are seeing consistent results year after year. In fact, when you look at page 30 in our future projections of drilling, like in a wet area, EUR per 1,000 over 3 BCF per 1,000, we are confident in those numbers. We’re one of the few companies that had positive reserve revisions 15 years in a row. So I think just consistently executing into what we think is a better environment will add value, but Mark, do you want to?
Mark Scucchi: Yes, I think when you’re asking a question about basically, I’ll rephrase it, when does the market recognize the value of Range or even more broadly just energy. I think you’ve got a slow return of investor dollars into the sector. You have €“ you know the energy sector had gone down to what roughly 2% of the S&P 500 or getting back close to 5%-ish, the zip code. As you look at what free cash flow yields are for energy, specifically upstream and then more specifically Range, you’re talking teens, up north of greater than 20% free cash flow yield for Range under whatever price expectations are. Those are valuations of a company with a multi-decade inventory with 15 years of production history to prove it and audited reserves to back that up, that it simply can’t be ignored over the long haul.
