Derrick Whitfield: Terrific. And as my follow-up I wanted to reference some of your prepared comments on SLEM and specifically, the wet sand opportunity. Could you perhaps elaborate on the potential of that development and when we could first expect meaningful revenue?
Ty Glover: Yes. So we announced four sand mines that we’ve contracted. We’ve done a lot of work over the last couple of years geologic studies coring, locating the sand deposits that we have on TPL’s surface. So we’ve got four sands. We’re still working on locating additional sand deposits so we think there’s future potential there as well. I think we’ll start to see some revenue this year from the mines that we’ve contracted. And probably within a couple of years I think that’s probably going to add somewhere around $20 million in revenue for the company. And so I think there’s a lot of benefit to in-basin wet sand mining right? You’re getting closer to the development, so you’re reducing truck traffic, you’re saving money, reducing emissions, making the roads safer to travel, you’re not running a dryer.
So the end user, which is the operator is able to save money, which increases their efficiency for development and should attract additional development to our acreage.
Derrick Whitfield: Very helpful. Thanks for your time and thoughts.
Ty Glover: Thanks Derrick.
Operator: Our next question is from Hamed Khorsand with BWS Financial. Please proceed.
Hamed Khorsand: Good morning. First off I just want to ask about this bpx agreement. How — where are these or how abundant are these? And why would a company want to use so many acres from you, or is that more of a highlight of the assets that you own?
Ty Glover: Yeah. So the acreage announced that 270,000 acres, bpx has leasehold spread all within that AMI. And this actually covers parts of three different counties. So they’re not necessarily going to be using all 270,000 acres, it just gives them the right to use our surface for certain things gives us the ability to supply them water increase water offtake things like that. So we’re not necessarily using all of those acres, but it just gives both parties certain rights within that AMI.
Hamed Khorsand: Okay. Are there deals like of this size out there? Are there other more of these size deals out there?
Ty Glover: I mean, we’ve announced in the past that we’ve got large AMI agreements like this with multiple operators on our acreage. There’s still some acreage probably left out there. But I think especially in the Delaware, we’ve probably got most of our acreage with most of our operators contracted under some sort of broad agreement like this.
Hamed Khorsand: And the other question I had was about new sources of revenue in your existing acreage. Are you putting more emphasis on trying to develop the acreage for traditional oil, or how much of your time and resources are you applying for new revenue sources?
Ty Glover: That’s a good question. I mean, obviously, we focus a lot on the legacy business. But in the last couple of years we’ve got an internal team that’s focused solely on next-gen opportunities and creating revenue outside of that legacy footprint. So I think more and more we can continue to focus on those non-legacy type opportunities.
Hamed Khorsand: Okay. And my last question is any methodology to the current stock buyback program? You haven’t really utilized the $250 million yet.
