And — so if you look at our cash position today and relative balance sheet strength – our stock is a better buy than what other people think there is worse. So we will see.
Amanda Brock: And on the commercial side, Spiro we continue to have great relationships with our customers getting repeat business from them as they expand their footprint. So we do see continued growth in the basin. And of course the basin that we’re in the Northern Delaware is in many respects the growth engine of the Permian. So in terms of future market share, we are very deliberate. We are seeing high return projects. We have an exceptional BD commercial team and I expect us to continue to grow our market share.
Spiro Dounis: Great. Second question. Maybe just want to touch on some of these reuse initiatives. You all seem to be leaning in more here with this latest Brent. One you mentioned the sort of mineral extraction and then also this hydrogen pilot. It sounds early stages in both cases. But curious can you just give us a sense of what these projects look like over time and maybe some milestones we should be able to look out for?
Amanda Brock: Certainly, Spiro. As we’ve tried to emphasize the expansion into beneficial reuse and additional initiatives like mineral extraction does take time. The last thing we want to do is to start to set expectations. We’ve seen that happen to other companies and we are going to be very deliberate in what we say and we are going to be coming back with milestones as we feel confident that what we are seeing can actually come to fruition. On the mineral extraction side, yes, we have referred to that now. We’ve spent over a year in examining the mineral content in our water across our assets. And we now have a much better idea and understanding of what is in our water. So at this point we are moving forward and evaluating opportunities to see with partners and other technology providers to see how we can commercialize, look at what revenue might be expected.
We do not expect any revenue from beneficial reuse or mineral extraction definitely not 2024-2025 potentially in mineral extraction but we’ll continue to be deliberate. We see this as promising and we will come back to you with milestones. The reference in the – our materials – our quarterly materials on the hydrogen project is just to reinforce that we are being viewed as leaders in the development of technology and the ability to bring innovative water treatment processes to different applications. So we’ve had majors come to us who are looking at smaller hydrogen projects to be their water treatment partner and to develop processes to potentially use treated produced water in hydrogen production. So standby and to — be deliberate.
Spiro Dounis: Understood. Helpful as always. Thanks for the color everybody.
Amanda Brock: Thank you.
Operator: Thank you. Next question comes from the line of Wade Suki with Capital One. Please go ahead.
Amanda Brock: Wade, you are mute.
Operator: Mr. Suki, please go ahead with your question.
Wade Suki: Okay. Good morning. Can you hear me?
Bill Zartler: Yes. Good morning.
Amanda Brock: Good morning.
Wade Suki: Good morning. Thanks for taking my questions. I think most of them have been answered at this point, but just taking a step back. I’m wondering how do you think about the durability, sustainability or maybe as you put it the visibility into the longer term kind of revenue cash flow of the business given the profile contracting customers geography all that stuff that underpin the business today. How do you think about that on a longer-term basis?
Amanda Brock: We feel really good about it, Wade. If you think about where we sit, we’ve got these long-dated contracts with great customers, the premier customers in the basin and we’ve got great visibility under those contracts into 2025 and beyond. And I think you pair that with our infrastructure, you pair it with the fact that we get repeat contracts with the customers and the basins expanding. And then most importantly under these long-dated contracts the fact that 80% of our revenue is coming from production that’s currently flowing under these contracts. I think anybody with that type of profile will respectfully feel good about what the future looks like. We’re going to continue to work extremely hard but we feel good about it.
Wade Suki: Fantastic. Thank you. And if I could just dovetail on a couple of the questions before thinking about capital allocation, free cash flow, et cetera. I just want to make sure I’m kind of reading the cue right here, or at least analyzing things within the ballpark. Free cash, obviously, excellent performance in the first quarter. If I’m looking at the second half of the year, could I think about a similar cadence per quarter before dividends, after dividends? Is that reasonable to think about?
Stephan Tompsett: Well, when you look at the free cash flow quarter-to-quarter, of course, we are looking at this on more of a long-term basis. So you’re always going to have some noise from working capital and timing of capital projects. So we look through cycles as we think about cash flow and shareholder return growth. So it’s not going to be necessarily quarterly dividend increases. We’ll look on more of an annual basis. And there will be timing considerations just from a free cash flow standpoint.
Wade Suki: Understood. Thank you so much. Appreciate you all taking my questions.
Operator: Thank you. Next question comes from the line of Jeremy Tonet with JPMorgan Chase & Co. Please go ahead.
Noah Katz: Hey, this is Noah Katz on for Jeremy. First, I wanted to touch on your line of sight into your customer needs and performance. I think you’ve previously said you received a six-month notice from customers. So if you could touch on any upside to volumes you’re seeing in the second half of 2024 and what gives you guys confidence in providing your 2Q guidance? Thank you.
Amanda Brock: Thanks, Noah. Yes, we do under our contracts have to get a six-month notice. But we are talking to our customers constantly. And while that is a contractual provision, we do have visibility into more than six months longer dated. We know where they are. We run our own forecast. We talk to them every day. The commercial team is very embedded. It’s a very sticky relationship. So we do have great visibility. And we do see total volumes trending into a ramp by the end of the year. So it does give us confidence. And I think we signaled that by the dividend increase. But we do see volumes ramping at the end of the year. But it’s pretty steady.
Noah Katz: That’s great. Thank you. And as a follow-up, I know you guys reduced leverage again this quarter to the 2.15 times mark from 2.4 previously. With the reduced leverage and the dividend raise this quarter, can you speak to how repurchases stack up with your capital allocation priorities?
Amanda Brock: Go ahead.
