Robert Kwan: Got it. I guess just last, can you give an update just as to how where Heartland is right now, how it’s operating and what your outlook is kind of for 2024?
Ben Vaughan: Yes, Robert, it’s Ben here. Yes, so at Heartland, we continue to achieve new successes and milestones with the running of the plant. But there is still some work to be done. At the PP end of the plant, so the polypropylene end of the plant is doing really well and exceeding our performance expectations. We still have some refinements to do on the PEH side and the feedstock side, and we’ll be working on those through the rest of 2024. But overall, we’re very pleased with the process and the plant is running.
Robert Kwan: Okay. Is there like a percentage utilization you could talk about?
Ben Vaughan: Overall, I’d say that percentage utilization is somewhere in and around the 80% range, 80%.
Robert Kwan: That’s correct. Okay, perfect. Thank you.
Operator: Our next question comes from the line of Devin Dodge with BMO Capital Markets.
Devin Dodge: Hey, good morning. I wanted to go back to one of the earlier questions on specifically on the NTS. So like Ben, you mentioned a dividend recap at NTS, I guess it should be completed soon. I believe you mentioned that the multiple of capital returns so far should go to about 2.4x. I think it’s a bigger number than we were expecting. Are you able to clarify how much capital that is expected to recover from that upcoming dividend recap and where that transaction puts financial leverage at NTS?
David Krant: Yes, I’m happy to, it’s David here. Hey, Devin. Yes, look, I think NTS, as you know, and a reminder for everyone is fully contracted availability based regulated utility that underpins Brazil’s natural gas market. Today, the capital structure we have in place is about 1.5 turns of debt on a debt-to-EBITDA basis. So I’d say significantly under levered relative to the earnings profile of this business. We haven’t finalized the dividend size or recapitalization, but it wouldn’t be — I’d say overly, it wouldn’t change the risk profile of the company. I think we’d be adding about a turn of debt-to-EBITDA. So again, it would bring it back in line to where it was probably pre the last two years of growth that we’ve experienced in the business. So it’s really just rightsizing the capital structure at the business.
Devin Dodge: Okay. Thanks a lot. Okay. And then maybe switching to Brazil, moving to our tariffs, so the toll roads business, there was an agreement with the local government a couple of weeks ago related to one of the concessions there. Can you provide some context for that settlement and whether it changes your view on the toll roads sector in Brazil?
Ben Vaughan: Yes, it’s Ben here. Again, yes, that settlement was at our Arteris toll road in Brazil. That had been in the works for many years, and we’ve been expecting this outcome. So I’d say overall, we’re glad to have this effective rebalancing of that state road behind us. And I just make the comment that the nature of these toll road assets is there is a relatively constant number of rebalancings that are going on with the regulator and in some cases, the governments. And so this was part of that normal course rebalancing and really, I wouldn’t say it hasn’t really changed our view overall of the business.
Devin Dodge: Okay. Thank you. I’ll turn it over.
Operator: [Operator Instructions]. Our next question comes from the line of Frederic Bastien with Raymond James.
Frederic Bastien: Good morning, everyone.
Ben Vaughan: Good morning, Fred.
Sam Pollock: Good morning, Fred.
Frederic Bastien: Looks like your most recent deal in India adds to the long list of the contrarian investments you’ve made over time. Part of the reason why American Towers is exiting ATC India, I understand, it’s due to lower revenue per unit metrics and a challenging regulatory environment, especially on the tax front. What are you seeing differently in the business or industry that makes you want to actually increase your exposure to the sector? Thanks.
Sam Pollock: Hey, Fred, I’ll take that one. Look I think it’s fair to say that our respective platforms are positioned differently in the market. We had the benefit of coming in a bit later and having a very strong underlying tenant that basically supported the commercial framework of our business there, obviously, the strongest one by far. And we’re able to leverage the cost base that we have to make it more efficient, both from an operations cost perspective, but also from a financial perspective. And it just is a matter of this being able to tuck into our business, we’re able to extract a lot more synergies out of it than they would have ever been able to because they would never have been able to scale it up, and or any new buyer could have done.
So we were kind of in a very unique position. And look we remain quite positive. I think the benefit of this transaction is it does add some additional diversity and flexibility from an operations perspective. It does bring to us some capabilities from a BGS perspective that we didn’t have, that we were somewhat reliant on our partner there. And obviously the assets are perpetual and we think the growth in data in India is still at their early stages. So having the dominant platform positions us well for the next couple of decades.
Frederic Bastien: That’s great color. Thanks, Sam. Appreciate it. Maybe one last one is, I know data has been a big focus of yours. Is it still the platform of the four platforms you operate? Is this still the one that you expect to grow the fastest over the next three to five years?
