and that's a great place for us to be. One of our directors says it all the time. He said, our nine to 10% decline rate, with the growth that we have, it becomes larger and larger. What that percentage represents, this has the ability to offset that, which is tremendous.

Right, yes. It's definitely a new thing. And then if we could go back to, I think the way you described It was really the Camino acquisition that got you guys over the line as far as really wanting to start up this operated drilling program. I'm curious, did you guys get a number of offers? Once you announced that you guys were going to do the Camino deal, I know there were a lot of people looking at it, a lot of people A lot of people wanted those locations. Did you have a lot of offers come in to do what had traditionally been your MO, which is having a non-op come in? Did you evaluate that also, or was this just something that you knew you needed to do?

No, that's a great question. We always evaluate every option. And yes, we did have... Inbounds about drilling this acreage for us. We could have participated, we could have sold it, whatever. But when we looked at the concentration of acreage and it's got a 90% working interest on it, that's pretty good for any acreage position you pick up nowadays. But that means we don't have to go out and and all that other work that comes along with that. This was just a long runway of optionality for us. And we felt like with the information we had on the wells that Camino had already drilled, that we had a pretty good idea what our returns were going to be. And this just gave us the ability to run that rig and feel comfortable from an operating perspective with Rick's team of being able to do it ourselves.

Yeah, I'd add to that just slightly, you know, with the scale and consolidated footprint we had there, as well as the low risk, high return, you know, the ability to Run Your Own Operated. We get to control the pace of the spend. And so that's beneficial to us. Lots of great partners out there. We would continue to work with them. But remember, as I stated, you know, when we purchased this, Camino was running multiple rigs out there and getting very good results. We're running one rig. We get to control that pace. And we're not doing it because we have to. We're doing it because we choose to.

That is great color. Thank you, gentlemen.

Thanks, Charles.

Thank you. Our next question comes from the line of Jared Giroux with Starco Brand. Please proceed with your question.

Hey, good morning, guys. Congrats on a great quarter and thanks for taking my questions. Yeah, my first one is just I kind of want to clear up one thing. I know it's been talked about a lot, but I just want to confirm that the annual run rate of CapEx of 250 to 300 million, is that essentially like a maintenance CapEx number that could keep production flat going forward? Thanks.

Well, that's the total capital allocation for the operated and what we call our maintenance CapEx associated with our PDP portfolio. And We've essentially said that we're going to offset our decline rates, and that's our capital number.

Yeah, and Jared, just one thing. In the event, as we've indicated, that we choose to continue with a one-rig program in the next year or two, then this level of capital would be somewhat of a run rate. but that's going to be our choice as we've already highlighted several times today.

That's perfect. That makes sense. Thank you. And then just one other one just on the non-op program. So for 2026, the non-op was mainly with Newborn, Continental, and the private operator starting up in the back half of the year. Just wondering if you could give any color on expectations for those other two non-op programs, whether it be production, RIGS activity, just anything else you have on those.

Thanks. I don't think we've given any direction on that yet. What I would tell you is if we are doing it, it competes in our portfolio for capital. So we expect good returns and both of those, you know, you're going to see the majority of the production in 27 due to the timing in the latter part of this year. But as you well know, and we called out, you know, kind of the plays, if you look at the zip codes, you know, in the BMW play and on the Northwest shelf, You've seen good results to date, so that's why we'll continue to participate in those.

Thank you for the color. Thanks, guys.

Thanks, Jared. Thank you. And as a reminder, if anyone has any questions, you may press star 1 on your telephone keypad to join the queue and ask a question. Our next question comes from the line of Paul Diamond with Citi. Please proceed with your questions.

Thank you. Good morning. I don't think you're taking the call. Just wanted to quickly stay on the new off program. Is it too early to talk about breakevens and I guess how to quantify modularity in the program, whether you add a rig or take your foot off the gas? Is there a price that you guys have in mind and kind of how to think about the breakeven and just the strategy around that?

We'll always pay attention to the commodity prices. I don't think we've called out the break-even, but we did call out what we ran this at, at a 65, 325 flat price deck, just to understand what those returns would be. So I think we're conservative on that side. We make sure that this will be economic on the decks we see out there now, but we have that ability to pivot at any point. as you well stated. And that could be that we decide not to run the program due to commodity price or we decide to expand the program.

Okay, understood. and then just one more kind of longer-term question. Can you talk about how you guys see the evolution of your base decline as you kind of layer in additional, you know, I guess new wells from both the op program and the JV? I understand the design is to replace that 10% base decline, but over time, can you talk about any migration you see there?

Yeah, I mean, here's the deal. I think where people, they always think about, okay, you're drilling new wells, you're going to have these higher declines, but you also have higher declines that are leaving and coming down over time as well. And so the blend of wells that are coming off of high decline into what we call their, you know, lower decline years, blended with the stuff that we're drilling today, which is, you know, significant, but not as significant as our PDP portfolio production. It really marginalizes that. And unless we really just went out and started, you know, and many more. And I think that's what we're going to do. It's not going to have material impacts on our corporate decline rate moving forward. We feel really good about covering our corporate decline rate with these programs, but we don't anticipate significant increases in our decline rates.

Paul, that structural advantage that I mentioned in my comments, we've got a significant existing are foundational production base that's already at a lower decline rate. And that's different than just some of the other companies or really all the other companies that are very heavy on the drill business. So we've got that very stable base underneath that supports what Rusty indicated. Understood. Thanks, Paul. Thanks.

Thank you. We have reached the end of the question and answer session. Therefore, I would like to turn the conference call back over to Rusty Hudson for closing remarks.

Thank you all for joining today. As always, if you have further questions or clarifications needed, please get in touch with Doug and his team and they'll be happy to assist and everyone have a great day.

Thank you, and this concludes today's conference, and you may disconnect your lines at this time. We thank you for your participation.