Chart Industries, Inc. (NYSE:GTLS) Q3 2023 Earnings Call Transcript

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Jill Evanko: And Rob, I’d elaborate on that answer in that, you think about we said $800 million of commercial synergy pipeline available to us; that was in May of this year. And now we’re saying $1.3 billion of commercial synergy pipeline here sitting at the end of October, even after this $300 million of already awarded commercial synergies. That’s pretty exceptional in my mind, but what to me is even more so is we have this WhatsApp Group for the commercial team, and we share wins amongst that and the amount and types and breadth of the synergy potentials that these teams are working on and going out together. This is the value of the OneChart commercial team is really amazing. The other thing that I think has been fantastic around bringing these synergy opportunities forward, there’s two things I’d point out.

One is we have a dedicated team that trains the commercial organization and the technical organization on the respective offerings that both Chart and Howden legacy brought together. And I think that’s really driven their ability to sell. So kudos to Jessie [ph] and the team that’s been working on that. And then the second piece is this RSL opportunity. I can’t share enough times how much synergy potential on the RSL side that’s untapped yet, and it’s already been – it’s already gained a lot of traction. I love the tools Mark and his team up in Buffalo, the tools that they’ve been able to deploy to our commercial team, whether that’s an app to be able to see an install base when they go to a customer or just gathering the opportunity of installed base has really been an accelerant to the synergy achievement.

I’m not going to give a specific number, but I don’t see – I don’t see certainly it slowing in 2024 by any means.

Rob Brown: Great. Thanks for the color, and congratulations on progress.

Jill Evanko: Thank you, Rob.

Operator: Next question will be from Sherif Elmaghrabi at BTIG. Please go ahead.

Sherif Elmaghrabi: Hey, thanks for taking my question. Changing gears here, you talked about high velocity hub really being a group of projects. Can you give us more color on what kind of projects Chart’s involved in at the hub? And on the equipment side, given its blue hydrogen or mostly blue hydrogen, is there an opportunity for HTS and CTS here as well?

Jill Evanko: Yes. Thanks for the question, Sherif. So stepping back on the hub, I think well, first of all, I think BTIG understands the hubs really well. From what I read, in the sense of – in the sense of they are not – it wasn’t just seven awards and that was it. Sometimes we had some calls in saying; well you’re only in one hub. Well, you actually just join the hub, but being in the hub doesn’t mean that you automatically are winning a project. So we’re in the high velocity hub. We think that in particular, in high velocity, there’s a great opportunity for liquefaction, which would be strong for our content. Also in the high velocity hub, we have partners such as Cummins in this hub, and so there’s a lot of kind of behind the scenes opportunities for us to commercially work together whether that’s in the hub or not.

When we talk about across the hubs, so as the regional hub partners down select the projects, there will be multiple projects in the hubs. And we have been in conversations with existing customers and potential customers that all have projects that they would like to win within the hubs and think that there’s plenty of opportunity both on the gaseous and the liquid side. And so to your question on HTS, so we talk specialty, rights on HTS or CTS content for hydrogen opportunities? I’ll let Joe talk to that.

Joe Brinkman: Yes. I mean, just the liquefaction flows through HTS, but as a reminder any investment in liquefaction of hydrogen is going to lead to more hydrogen trailers needed and more hydrogen storage tanks downstream that those trailers are delivering into, so we get pull through in both HTS and CTS with any of the hubs.

Sherif Elmaghrabi: And that’s very helpful. Thanks both for taking my question.

Jill Evanko: Thank you, Sherif.

Operator: Thank you. At this time we have no further questions. Please proceed.

Jill Evanko: Thank you for everyone for attending the call today, and we look forward to continuing the dialogue going forward in a strong fourth quarter. Goodbye.

Operator: Thank you. Ladies and gentlemen, this does indeed conclude your conference call for today. Once again, thank you for attending. And at this time we do ask that you please disconnect your line.

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