Wade Harrison: I think it’s really just kind of normalization of the market. Over the past 12, 18 months, it’s really been a depressed market from historical “normal volumes.” And so it’s kind of a false increase, so it’s not really additional volumes. It’s just getting back to what’s normal. For the past several years, they’ve been running ahead of normal. And we actually spent a lot of time with the major guys. And it’s really just getting back to a normal-type level, whereas, before they were exceeding normal and now they’re just trending back towards normal.
Kevin Roycraft: And Jason I’ll add that the main markets, the focus on the STC business is really automotive housing starts. And we have not seen a lot of good headlines in either of those areas, but we do think there’s some rebuilding of inventories going on right now and some slight recoveries in those markets. But as you see them start to boom a little bit whether it’s latex or wood treating products or foams that go into automobiles that will really start getting busy. But I think to get a full recovery and get back even close to where we were in 2021 those industries will have to have a significant improvement.
Jason Ursaner: Got it. But it sounds like everything is at least on the path to maybe getting a little stronger either in the numbers or more anecdotally, which is positive to hear. So just congrats on the progress. Appreciate all the details and I’ll hop back and let someone else ask question. Thanks.
Kevin Roycraft: Thank you, Jason.
Operator: [Operator Instructions] The next question is from Chris Sakai with Singular Research. Please go ahead.
Chris Sakai: Hi, good morning. Just first question on your throughput and terminaling volumes for your pipeline segment, what should we be expecting for the next couple of quarters?
Wade Harrison: I’d say more of the same. Marketing group has really targeted volumes that they can bring to the pipeline. They’ve been successful picking up some new production and even a few flowbacks this year. So right now volumes have been pretty steady and the volumes actually grew each month in the first quarter. And we’re kind of plateaued right now, but we think we can maintain the volumes we’re at now. So I’d say more of the same that you saw in the first quarter, should be about similar in the second quarter.
Kevin Roycraft: Yes, I think, we’ll see some barging revenue from third-party start-up in Q2. They’re getting close to being able to ship a barge there. That doesn’t run through the line but it does use the terminaling location in our Victoria Texas location. As Greg said, we’ve seen volumes steadily increase. Q2 should be a little stronger than Q1 at least started out that way. And then we’re still hopeful we get third-party shipping on that line the third-party that we’ve been targeting this year certainly won’t be shipping in Q2, but they do are still giving us positive signs and spending money fixing their line that they may be shipping sometime before the year’s out.
Chris Sakai: Okay. Thanks for that. How should we be thinking about your crude oil inventory barrels? Do we — would you expect that to be increasing or stay the same or lowering?
Greg Mills: Yes, this is Greg. I’ll take that one. The crude oil inventory, now we’ve had a focus on managing our inventory exposure and we’re doing a good job of keeping our inventories to a minimum. Now we do have tank bottoms and line fills that we are going to have at all times. But in terms of just carrying inventory for the sake of inventory we try not to do that and we’re effectively marketing everything we buy. So we’re trying to just keep that. Keep it out in the numbers and keep it relatively flat.
Kevin Roycraft: Yes. And Chris I’ll tell you it’s a working inventory. So usually the fluctuations you see for us as Greg is really focused on keeping the inventory as low as possible is the timing of barges that may hit towards the end of the month. And that could have some relatively significant swings if a barge either leaves late in the month or it gets pushed into the next month. So I think you see swings on that.
Greg Mills: That’s correct. And so if you see a higher inventory number in the first quarter this year, we did have some carryover. So not inventory that we’re necessarily sitting on but inventory that’s already pre-sold but it still counts in our numbers.
Kevin Roycraft: Right. We show it as inventory we own because it hasn’t left our facility but in multiple instances when that happens at that late in the quarter like that or late in any given month but in the quarters where you see it probably is already pre-priced so we don’t have price exposure risk if that were to happen in the future months.
Greg Mills: That’s exactly right. And that number was probably close to 100,000 barrels at the end of the first quarter.
Chris Sakai: Okay. Thanks. That’s good to know. Can you talk about your capital expenditures for the remaining of the year? Do you have a target number for the year?
Kevin Roycraft: Tracy?
Tracy Ohmart: Yes. A lot of the capital spending that you saw here in the first quarter was — I’ll call it a carryover from orders placed both in 2022 and 2023. So going forward on both the Logistics Repurposing segment and the Marketing segment the crude oil side of the business it will be very minimal other than the expenditures related to the Dayton facility which is more of a growth or new revenue-type capital. But just from replacement of tractors and trailers with the shutdown of the Red River business we took that equipment redeployed it both among or between Firebird and GulfMark. So we’ll have very little capital spending on the crude side of the business. And then we’ve got orders for tractors and trailers scheduled for delivery. It really kind of starting in early Q3 and going into Q4 on the Service Transportation side but it’s not a substantial amount of capital.
