Daniel Eggers: Yes, it’s a good question, Jim. And I think about where we are, it’s been quite a year, and we’ve learned an awful lot about the business as far as where our investment opportunities are. The IRA dramatically began to change the landscape for opportunities to deploy capital. I think you got hydrogen the operators, there’s a lot of things that have really opened up, and we made a lot of progress this year, $1.5 billion of growth capital from an organization that wasn’t putting that kind of capital to work. Our expectation is 2022, we’re going to learn a lot more about the opportunities for investment. We’re going to see how inorganic opportunities play their way through. But I think we’re going to continue to learn more about the size, scope and duration of our investments.
And that will then inform some of our capital allocation decisions for the long term, right? We think that the dividend increase today made a lot of sense. It’s still 20% or less of our free cash flow for growth. We think that’s a very reasonable payout at this time. And it will continue to evolve. But I think the balance right now is the growth investment, the dividend is the right setup.
Joseph Dominguez: Yes. The only thing I’d add to that, James, is that obviously, we’re looking at the relative value of our stock right now compared to other assets in the market. At the end of the day, the Board is making a determination of how we feel about our own company, our value and the value of the investment in stock. That will move around certainly over the course of the years, and it may cause us to make different decisions halfway. But the relative value and the are things that drove us to a buyback.
Operator: And our next question comes from Steve Fleishman from Wolfe Research.
Steven Fleishman: So just a couple of things. The increase in CapEx related to fuel, could you just talk to how much of that is kind of this inventory build versus actual higher fuel cost? And then also just how long does this inventory build last? Does that higher level of CapEx start rolling down after the period you’re showing? Or could you get some sense on that?
Daniel Eggers: Yes, Steve, I’m not going to give you the exact numbers. But what I said in the prepared remarks is the majority of that increase is associated with inventory over this period in time. Remember that what we’re doing right now is we’re continuing to expect that the Russian deliveries are contracted to provide, will continue to occur. We will be buying fuel from other providers who will make sure that we would cover any potential Russian store calls. We’ll be net building inventory out towards 2028, assuming Russian delivery — if the Russians were to — if fuel is no longer available to us the capital numbers would change. We are admittedly seeing higher prices both on the pieces of fuel we had not previously purchased.
And then we’ve talked to you in the past about there some hedge in our numbers. When you saw uranium move, really conversion and enrichment services go up 50% to 100% over the course of the year due to the conflict, that is putting upward pressure on that fuel bill. So it is more than inventory reserve.
