And I’ll turn it over to Kyle now, he can give you a little more details on what they’re doing on the operational front to create these efficiencies and outperformance.
Kyle Coldiron: Yeah. So Zach to your question on the Delaware side specifically, the intervals or the inventory that we added was across our Second Bone, Third Bone, Wolfcamp A and Wolfcamp B, which are our core development horizons. So these aren’t new horizons or anything that we haven’t previously disclosed, but as Jason said it well, ultimately, the improved economics of $1.5 million off of your well cost improves all of the inventory and ultimately just provides a lot more opportunity to develop. Also, the well performance has been outstanding so far as you can see both from the cume time curve and the IPs that we’ve highlighted here that from our recent packages that we turned in line, the well productivity has been fantastic. And so it just gives us a lot of confidence that we can go and develop across those benches there on the Delaware side.
Zachary Parham: Thanks. I appreciate the color there. I guess my follow-up just on M&A specifically. I mean you’ve done a number of deals in 2023, but just talking about these organic inventory additions, I mean that’s two plus years of inventory. How do you think about M&A versus organic conditions at this point, where does kind of M&A set in your mind going forward?
Kyle Coldiron: Yeah. Another great question. I think we did amazing work in ’23 to continue our transformation as a company. We talked a lot last year about this transition to small ball, which was performing a series of smaller transactions that weren’t as competitive when again, the larger peers were bidding on things and it was wildly successful for us. Again, as we completed, again, almost $1.6 billion in over $1.6 billion in transactions. In ’24, we’re switching a little bit more to the money ball, which is let’s spin less testing new zones and get wells not for free, but almost for free as you think about adding 185 wells in total last year with the acquisitions, again, we brought on 485 wells. And if you divide that by a rate of 80 wells per year, we added six years of inventory last year alone.
And so we’re in really good shape. And as I mentioned, we’re going to be testing some of these new zones. So I think we can get outsized well additions with less cost. However, we will still be active in the market. There’s deals out there today. There’s going to be deals in the future. But I would say the bar has been raised for us. Any deals that we look at, we’ll need to be accretive to us and inventory will need to jump the inventory that we’ve added this year. So I’d say, we’re still going to look at it. I mean there could be great opportunities with an Oxy or Diamondback that are looking to or endeavor – former endeavor properties that are adjacent to us and can make a lot of sense as those come to the market. So we’re going to continue to be active and look at creating scale, but I’d say for us, the bar is raised on the type of things that we’ll look at in 2024.
Zachary Parham: Okay. Thanks for taking my questions.
Operator: Next question comes from the line of Tim Rezvan with KeyBanc Capital Markets. Your line is open.
Tim Rezvan: Hey. Good morning, folks. Thanks for taking my question. This may be best for Katie. I know you all, you’re pretty vocal about what you’re doing on the technology side to optimize base production. And you gave an update on what’s happening at Driftwood and Forge. I was wondering, if you could give an update on kind of how things stand with the recently acquired assets and maybe when you would get that fully implemented into sort of your cloud system, what the time line for that would be? Thanks.
Katie Hill: Sure. Good morning, Tim. I think we would consider the technology implementation to typically come in phases. I think at this stage, we’re really excited about the progress we’ve made on our early ’23 acquisition. So Driftwood, the Southern Midland Basin assets are effectively fully integrated into our operating platform. We’ve taken some really strong steps on that first Delaware asset in Forge, like you mentioned. When we think about this three assets that were in the second half of the year, I think we’ve been successful at deploying our operating platform from a people standpoint. So really good work from the team on applying some of the technical learnings that we’ve seen in the Midland with specialized focus on either compression uptime on ESP and artificial lift optimization and then on really great support for flowback and new wells, which you see in our results from the second half of the year.
What we’re working on today is the deployment of the hardware and the structure that will allow for us to then apply that AI and machine learning work that we’ve been focused on for the last couple of years. I think that’s really a full 2024 effort to get the system stood up and actually start to deploy that AI piece that’s late in the year this year. We do assume continued success because we’ve seen such great work in the Midland across a variety of wells. So both wells that are lifted from ESC, from gas lift to different artificial lift types, different GORs, we’ve seen really successful implementation of AI, and we assume success in the Delaware as well. So it’s built into our forward-looking plan, but we expect it to take moves to 2024 to get there.
Tim Rezvan: Okay. Thanks for the color. And then as my follow-up, I’m looking at your deck on Slide 6 and 11 and just trying to kind of understand that the pace of activity. Obviously, you’re sort of working down some DUCs (ph) with that Glasscock pad this year. I’m just trying to understand the Delaware activity, 40 spuds, 20 turn-in-lines, is this just a timing issue with the calendar year? Are you looking to kind of build more of a little bit of a backlog of DUCs for steady-state operations, trying to understand how we should think about Delaware, the pace of activity there over the next couple of years? Thank you.
