Todd Borgmann: At the parent, at Calumet?
Gregg Brody: Yes.
Todd Borgmann: I think we could invest $100 million, $200 million in the next couple years at 20% plus IRRs. Like I said earlier, we’re not committed to doing that. That’s purely an option. At today’s market prices, I don’t think that would actually pass the hurdle, right, of what’s available to us, just with our own equity and the like. But, yes, I think that we could and will at some point in time move forward with those opportunistic growth CapEx choices that we have. It just — it may or may not be this year.
Gregg Brody: And you haven’t provided in the past, but are you providing capital spend for Montana Renewables for the year?
Bruce Fleming: Gregg, its Bruce again. We have elected not to hold ourselves to a spending metric as you’re aware, as you just mentioned. The purpose was to get that business stood up quickly and effectively. We think we’ve accomplished both of those. The thing I want to circle back on though to the, maybe instead of your question — looks like the floor is opened in the background. Okay, that got muted. Great. So the MAX SAF expansion is something that we’re going to understand the cost of better within 6 months or so as we advance another gate in our project management process. That’s going to be, if you want to talking figure, a couple $100 million dollars range, we’ll see plus or minus a lot of uncertainty right now, but that’s a major element.
We’ve got that pegged as a 100 plus IRR. So when Todd says we’re going to evaluate spending opportunities, it’s really from the lens of what is the capital markets telling us to do, company stock, company equity, MRL, organic growth. We’ve got inorganic growth opportunities that are beginning to present themselves. I mean, it is a target rich environment for putting money to work.
Gregg Brody: And just — and I appreciate all that. And just one last question. I don’t know if I heard you right, but I think you said on a minority partner you were actually working with a smaller subset of potential strategic investors. I don’t know if I heard that right, could just say yes. And then I guess the question is, is there — did that imply that there’s something — there’s a timeline for doing something there that might be near-term?
Bruce Fleming: Appreciate the question. Bruce, again. So look, our plan is to maximize shareholder value. At the end of 2022, we turned a lot of options that we’ve been running into our new base case, that was the Warburg Pincus partnership. Very satisfied with that as Todd mentioned. In 2023, we want to do that again. We want to do it off of the SAF platform now. That’s the thing that is changing for us and that specifically has caused us to revalue upward our sense of the enterprise value of this new MRL business. That’s off of the SAF and it’s off of the IRA legislation. It’s off of the access that we’re developing to appropriately price capital, mainly in the form of muni and hopefully DOE if we succeed in the Part 2 application there.
So our flexible approach is already added a lot of shareholder value. We’re not in a hurry. We’re not short of people that want to put money into quality businesses like this. So the real selection criteria come down to a partner that makes sense strategically. But if you want to think in terms of a potential significant minority investment by a strategic leading to an IPO, that’s consistent with everything we’ve said. Do we want to put a specific timeline on it? We do not.
Gregg Brody: Yes, I know Steve is not tweeting anymore, so I didn’t expect you to give me the timeline. Thanks for the time, guys. Appreciate it.
