Stephen Gengaro: Thanks. Good afternoon, everybody. I guess two for me. What I’d start with, George, you mentioned some confidence on your $300 million EBITDA target, and that’s a pretty steep ramp. I think it’s 40% growth in ’24 versus ’23. Can you — could you talk a little bit about sort of the path to get there?
George Sakellaris: Yes. I mean we look at it very, very carefully. We look at the contracted backlog, project backlog. The contribution that we will get not only from the RNG assets, but the other asset that we place it into, whether it’s solar or battery storage and so on, and we feel very comfortable. The way I look at it, though, it’s a 40% jump from 2023 to 2024. But if you were to look at it from 2022 to ’24, it’s not that much out of line. Between the 2 years, it’s 45% growth, which is 32% growth for each year. And if you go in the past, we are in a little bit lumpy business, but building it up to the ’24 number, we feel very comfortable because it’s basically contracted backlog, awarded backlog and assets that we have a very quick level, including the operation.
Stephen Gengaro: Great. Thank you, George. And then the other thing I wanted to just ask about was just on the contracting side, in general. It feels like things have progressed pretty well sequentially as far as your backlog is concerned. Just when you’re talking to customers and given the inflationary environment and interest rates, what are the conversations like? And have there been any impediment to getting these deals across the finish line?
George Sakellaris: Yes, because of the interest rate jump, it has impacted the business and couple of the push outs that we have in the very large projects. I’m talking in the them on the $150 million project. And one of them, so the federal facility, the way — it’s a good — actually example to remind everybody of the process, but we did a detailed energy audit, then we negotiate the scope with the client and then the price and then we go out to get the financing. And then what happened in this incident, they financing now, we get a couple — almost a couple of points jump on interest rate, and when they save it within finance, the overall the project. So we’re going back to the drawing board, renegotiate the scope of the project and so on.
And so that was one of the projects. And the other one, it was a municipality, but because of the higher interest rate, they got to go out and reconsolidate new bid. So it’s a concern, but lately, though, what’s happened a little bit and that’s why on my comments, I said the customers it’s going to prioritize the projects and their timing because some of them now, they’re getting money from the IRA. It’ll be waiting to see how much we going to get from the IRA and how good impacted. And we have a couple of projects that we think we’re getting a good chunk of money from the IRA, and actually, the projects will grow. But the reason, I would say, is a little bit wait and see until everything comes out. But the activity though, the request, the activity, the pipeline is growing a lot.
That’s why we feel very comfortable for the business going forward.
Stephen Gengaro: Very good. Thank you for the color.
Operator: Thank you. One moment please for our next question. Our next question will come from Greg Wasikowski of Webber Research & Advisory LLC. Your line is open.
Greg Wasikowski: Hey, guys. Good afternoon. Thanks for taking our questions. I wanted to ask about Enerqos. Could you just talk about the origination of that relationship. Was Italy a market that you were actively targeting before this? Does it make it easier to expand into additional territories, thinking like France, Spain, Portugal, those areas? And does the business help with any other existing operations that you have in Europe kind of thinking probably more like Greece, but just trying to understand any synergies there. Thanks.
