Operator: We’ll move next to Robert Mosca at Mizuho Securities.
Robert Mosca: Just wondering, if I could get your latest thoughts on a potential NEXUS expansion. Do you still consider permitting reform to be the gating item? And just wondering, if you view the Utica project as perhaps a way to feed any future expansion side?
David Slater: Yes. So let’s just start with permitting reform. We’re very supportive of what’s happened to-date through the IRA and also the dialogue that’s occurring in Washington as we speak around incremental permitting reform. So we’re optimistic. There seems to be a Washington that more work needs to be done in this area for all energy infrastructure like from an agnostic perspective, it doesn’t really matter what infrastructure we need more clarity on permitting and scheduling and sort of the steps to take a project from concept to completion. So, very important work that’s being done in Washington, very supportive of that work. So is our Utica project, we’re very optimistic that we’re building that project right back to be able to directly interconnect with NEXUS.
And as you know, NEXUS has a direct open pathway to some great markets here in the upper Midwest, Chicago through to Eastern Canada and right across Michigan. So, that’s certainly something that our customer is aware of and that there is dialogue occurring around. So we see that as a nice strategic value in this upfront investment. In terms of NEXUS, I think as we’ve talked about on previous calls, we’re looking very closely at just the hydraulics of that system and optimizing the hydraulics now that it’s been in service for three or four years to maximize the utilization and capacity available in the system. This past winter, the pipe’s been chockful. I’ll say it that way. Just running at very, very high utilization. And so step one is to optimize it hydraulically.
Step two, Rob, is what you’re alluding to is doing more of a permanent expansion on the pipe. And we’re working on that. There’s nothing public on that at this point, but we will certainly be sharing that information when we decide to look at that.
Robert Mosca: Great. That’s helpful. And my second question, I think in your prepared remarks, you said something about the commercial agreement underpinning the Utica project that it was restructured, which allowed you to pull it into ’23. Just wondering is that simply modifying the construction schedule? Or were there any concessions made that maybe made it more appealing for your customers to accelerate production where you need to build the asset earlier?
David Slater: I’d say what happened there is when the ownership changed. The ownership shifted from a smaller independent producer to a large cap investment grade producer. And their development schedule obviously changed after they acquired those assets. Part of restructuring the contract was just readdressing how we’re going to develop this acreage in tandem with our customer and making sure that both companies are aligned in terms of activity, economics and the like it’s a new area, and we were in a difficult commodity environment. So, a lot of the features of that agreement kind of reflect the times that we’re operating in. And as I said on my opening remarks, there’s significant MVCs in this agreement that were important to protect the capital that we’re deploying against this acreage and this resource development, so.
Operator: And there are no further questions at this time. I would like to turn the call back to David Slater for closing remarks.
David Slater: Thank you very much for joining us today. We certainly appreciate all the support and your interest in DT Midstream, and hope your day goes well, and thank you very much.
Operator: And this does conclude today’s conference call. Thank you for your participation. You may now disconnect.
