Operator: Our next question will come from Dylan Lipner with Ladenburg Thalmann.
Dylan Lipner: The question I have is regarding to the regulatory approvals for Florida City Gas. One, are you expecting the Hart-Scott-Rodino to be resolved, they’re closing this month? And then, are there any other regulatory approvals that are needed beyond, the three that were mentioned?
Beth Cooper: Sure, I can start that off or Jim would you like to start it off and I can add?
Jim Moriarty: Sure. Thank you, Beth, and good morning, Dylan. The waiting period under Hart-Scott-Rodino is to expire at midnight on Monday. As you know, if we were to receive a second request from the Antitrust Division, that would not happen. But we’re one day away from the period expiring. And then that would be the last of the regulatory clearances as we would need.
Dylan Lipner: Okay. Great. And then going back to the acquisition as well, describe any type of synergies that you potentially see with the transaction and any further timing of these synergies occurring?
Beth Cooper: So, I’ll start this off and then Jeff can add anything I missed there, but I would say number one, Dylan first, we, as we indicated on our last call when we announced the transaction, in regards to 2024, I think we still feel like there’ll be a lot more clarity that can be provided in February as part of our yearend earnings call. We’ve been really focused and I think have had excellent results, in regards to getting the regulatory approvals behind us so that’s really been a focus of ours. Certainly, the transition and the integration and beginning to plan that has been a top focus for our teams given the relatively short time frame that we’re talking about. And so, certainly as part of that, we’re digging in and understanding some and actually gaining confirmation and affirmation about some of the assumptions we had made in regards to our model, but the specifics will — there’ll be more that’s to come in February.
Right now, we’re really focused on getting the transaction to a place where, we can close in the fourth quarter as we had originally indicated. Jeff, I don’t know if there’s anything you want to add to that.
Jeff Householder: Maybe just a couple of things. So, I think it was very clear to us the goodwill impacts of this transaction going into the deal. I mean, we went in eyes wide open. We understood the need to identify synergies in City Gas. We also understood that we need to think more broadly than that across our larger enterprise, and we understood the opportunities, I think to accelerate certain capital projects and generate margins quicker than we might otherwise have anticipated. And also the regulatory actions that would likely be required or desired over the next couple of years to overcome some of the goodwill impact. We also, as Beth indicated, modeled several different scenarios and tested a number of different sensitivities.
Anticipatory, we did not, we were hoping that the market would do what it did, but we did have some anticipatory analytics looking at potential market downturns. And so, I think we’ve gone into this understanding what we need to do, and I think we’re prepared to do that. As Beth indicated, the specifics of those synergies and the specifics of the incremental opportunities that we see across organization are something that we’re getting a good handle on and will report in February.
Dylan Lipner: Okay. Great. Thank you for that. And then lastly here, where are you guys year-to-date on your propane business and whether you think you’ll end the year on propane?
Beth Cooper: Well, I think as to Chris’ first question that he guess, the most I would say, the biggest downside for that business this year has been the weather. We’ve had strong, as I also indicated, strong retail margins and service fees, adding customers, adding community gas systems. We can set business continues to do very well and even though on a year-to-date basis weather has been a factor, Dylan, as we’ve talked about several times, this business even in a year like this year will generate a higher than traditional utility returns. So, the business is doing well. The fourth quarter will certainly be impacted by the weather. We’re having some great weather right now, so we’re hoping that continues. And again, the business will do well even in spite of the weather for the year.
