Selman Akyol: Got it. Thank you so much.
Operator: Thank you. Our next question comes from the line of John Daniel with Daniel Energy. Please proceed with your question.
John Daniel: Thank you. Good morning guys. Amanda, this might be a rookie question, and it is a bit of a long-term one. But when you think about how important water recycling is to your customers, their ESG goals, and perhaps high switching costs, I am not sure if that’s right or not, but I would think so. How will that ultimately influence pricing strategy as contracts mature years down the road? I feel like pricing could have got higher over time.
Amanda Brock: John, I don’t think you have ever had a rookie question, but good question. So, yes, the relationships we have with our customers and as a consequence of the physical infrastructure we have and the volumes we aggregate in order to deliver these large quantities of water to our customers as they need more and more with these multiple fracs, the relationships are very sticky. I think as contracts roll off and as there is more demand in the basin for reuse versus groundwater, for example, I do think that there will be pricing power. We will also see some pricing power and rate increase over time in our disposal business as volumes just over the basin continue to increase.
John Daniel: Got it. Okay. Thank you. And then when I look at the customer that you guys have, which is a very good one. And many of those are the people that are viewed as the likely consolidators. I know in some of the dumb iron oil service businesses, and that’s a term of endearment, but those types of companies will switch to their incumbent providers pretty quickly because of service and reliability. I am curious like what happens when big company A buys big company B, your customer? They have got a different water infrastructure partner. How quickly do they want to change? Do they change? Just any thoughts on that would be helpful to me.
Amanda Brock: And let me answer sort of from a legal perspective first. Our contracts, which are long-term contracts with our customers, are sort of covenants running with the land. So, what that means is even if they sell or consolidate, they will still have that contract in effect. So, we have contractual support. But Bill, why don’t you respond to that?
Bill Zartler: John, probably we have seen that happen with Concho rolling into Conoco. And as the relationship already and continue to get more business from Conoco along the way. And so the takeaway piece of this and the infrastructure required is this is a midstream business. These are long-term contracts. But in order to facilitate the oilfield servicing part of this, if you will, the water recycling that’s in high demand, you would have to have the infrastructure in place to be able to deliver and control those volumes, which we do under those contracts. And so the stickiness is around the infrastructure and its ability to perform more than it is the relationship per se. And so I think that, ultimately, the sticky part of that business is that we will perform virtually 100% of the time because the infrastructure is there.
The buffer pumps are there, the pumps are there, the massive amounts of their water plus other people’s water that we can blend and treat and redeliver for these big trucks is just impossible to replicate.
John Daniel: Fair enough. Okay. Thank you. I appreciate it.
Amanda Brock: Thanks John.
Operator: Thank you. There are no further questions at this time. I would like to pass the floor back over to Amanda Brock for closing remarks.
Amanda Brock: Thank you very much. First of all, I want to thank everybody who called in and our customers who we continue to work with very closely and appreciate. We had a great year in ‘23 and we are continuing to push hard into ‘24 because our work is not done. So, with that, I want to especially thank our employees who work so hard to deliver the great year we had in ‘23 and provided us with this positive momentum into ‘24. So, we look forward to talking to you all again later in the year.
Operator: This concludes today’s teleconference. You may disconnect your lines at this time. Thank you for your participation.
