Amanda Brock: Right way to explain it.
Operator: Your next question comes from Selman Akyol with Stifel. Your line is open.
Selman Akyol: Thank you. Good morning, all. Just sort of following up on John’s question earlier in terms of you guys talked about sort of the electrification and the additional pumps that can be removed, et cetera. I’m just curious, can you put some dollar figures on what’s left to go in terms of — you characterized it as sort of 5.4 million on an annual basis. With what you see coming up, can you talk about maybe the savings you’re trying to capture in terms of dollars on a go-forward basis?
Stephan Tompsett: Yes, happy to. On those two projects specifically, we talked about $7.5 million to $8 million in total and it’s all done. So we made substantial progress towards that goal. So we’re confident we’re going to achieve those figures. Beyond that, we are looking across the business for other ways to optimize vendors, contracts, operations, et cetera. So this is a mindset of continuous improvement. But in terms of those two projects, we’re tracking well towards our $7.5 million plus or minus target.
Selman Akyol: Got it. So the 5.4 million is out of that 7.5 million plus or minus?
Stephan Tompsett: That’s right.
Selman Akyol: Okay, great. Understood. And then in terms of just sort of the brine stream opportunity or exploration that you’re doing, and I know we’re going to get more of it in ’24, but should we be thinking of this as still several years out for revenue generation or are you seeing something potentially maybe sooner?
Amanda Brock: I think we — on the brine side, we believe that may be sooner, but this is still several years out. So we want to explain to everybody that we are very focused on it. We are very encouraged by what we are seeing, but we are not at a point where we are going to come out and sort of talk about what the revenue expectation is.
Selman Akyol: Understood. Thank you very much.
Amanda Brock: Thanks, Selman.
Operator: Your next question comes from Praneeth Satish with Wells Fargo. Your line is open.
Praneeth Satish: Thanks. Good morning. Maybe just I guess following up on the brine questions here and yes, I know you’ll give more clarity next year. But I’m just wondering conceptually, if you kind of perfect the pilot, are you looking to apply this across all of your water volumes, or is it just kind of certain regions that are more concentrated and more economically viable? I guess how homogeneous is this opportunity?
Amanda Brock: Praneeth, good to hear from you. So we are very focused and we’ve always said that we’re focused on waste to asset or waste to value. So we are constantly looking at our produced water to see what we can do with it other than just dispose of it and what is there that got value. So we have reuse and recycle as much as we can, and we continue to be very focused on reuse. In addition then, this pilot for beneficial reuse is to provide technology that can be used for water across the basin. And so it is not that it’s just specific for certain areas of the basin. It is going to have flexibility that can be used with different influence water across the basin.
Praneeth Satish: Got it. That’s helpful. And then switching gears, I know it’s a little early but as you look out to 2024, do you envision being free cash flow positive after dividends? And then if so, would you consider raising the dividend at that point or increasing capital over time?
Amanda Brock: Yes. I think we are very focused on free cash flow, and we know it’s very important. Steve, why don’t you go ahead and explain how we’re looking at this?
Stephan Tompsett: Yes. Praneeth, at this point, we don’t have full year outlooks from our customers for the back half of the year. We have some indications for the first quarter and into the second quarter. But as Amanda mentioned in her prepared comments, we do expect CapEx to come down relative to this year. And we expect EBITDA to be up. So at this point, we’re going to have to defer more full demand until our full year call in a couple of months. But again, as Amanda said, we’re very focused on it. We know the importance of it to our investors, and we’ll have more to communicate here before too long.
Praneeth Satish: Thank you.
Operator: At this time, it appears there are no further questions. I’d like to turn the call back over to management for any closing remarks.
Amanda Brock: Thank you all for participating today. We want to thank everybody on the team for a great quarter. We know we have more work to do, but we are very excited about what’s to come. We also want to thank our customers for their continued support, and we look forward to talking to you all again on the fourth quarter earnings call. Have a great day. And because we won’t be talking to you before then, have a great Thanksgiving.
Operator: This concludes today’s Aris Water Solutions third quarter 2023 earnings conference call. Thank you for attending, and have a wonderful rest of your day.
