Jeremy Tonet: Just wanted to talk about the guidance range for ’24 a little bit more. If you could dive into what maybe could drive high end versus low end there? What amount of EBITDA would be subject to maybe producer activity shifting and also, I guess, the cartage connector, what type of impact do you see that having in the year?
David Slater: Yeah, Jeremy. The two way that we laid out in the guidance, we feel really confident in that two way. And like I mentioned earlier with John’s question, we’ve certainly calibrated to what I’ll call the current realities in the commodity space that may affect some of our customers and factored in the behaviors that we saw last summer when we experienced some really weak cash prices. So that’s baked into the guidance two way. So I feel very confident that we’re going to be in between those goalposts. In terms of some of the incremental activity in the portfolio, getting the Blue Union and LEAP system more deeply integrated to the Haynesville basin has been a strategic priority for us. That Carthage Interconnect is an example of that, just getting it more deeply tied to the entire breadth of the basin, lots of customers sitting over there that are looking for incremental egress down into the Gulf region and we’re very bullish that interconnect that it will drive incremental activity and potentially help support incremental LEAP expansion.
Jeremy Tonet: Got it. Thank you for that. And just want to see, I guess, over time, how you see capital allocation evolving for the company you have the CapEx stepped up a bit this year, and it seems like there’s still more opportunities. Also, it seems like there is M&A potential out there in the market and which would argue for leaving some balance sheet capacity. So I just wonder how you see balancing these competing priorities.
David Slater: Yeah. The way I think about it, and as we laid out in the deck, we’ve got this really robust organic backlog of opportunities and everything that we detailed in the disclosure are actively being worked. So we’re in a really advantaged position of having that deep organic backlog, which typically drive higher returns for capital deployment. So our priority will be to deploy capital there and monetize those higher returns. That will be priority number one. We announced 7% dividend increase. Our plan and our goal is to continue to grow that dividend and make it very durable for investors, so people have confidence in it. That’s currently our primary tool to return capital to shareholders. In terms of M&A, lots of assets in the market, lots of activity happening in the space, especially upstream, I don’t think that’s going to abate.
I think we’re in a consolidation mode right now. Lots of bolt-on opportunities in around us. Those will just have to compete with the organic opportunities that we’re pursuing. We’re very aware of all those bolt-on opportunities around us. We’ll assess them and hold them to the standard of our organic. And if it makes sense, we’ll pursue. That’s one of the reasons why Jeff’s kept the balance sheet as clean and pure as it has and why we continue to strengthen the balance sheet to have that dry powder sort of in the covered if opportunities present themselves.
Jeremy Tonet: Got it. That’s helpful. I’ll leave it there. Thank you very much.
David Slater: Thanks a lot Jeremy.
Operator: We’ll go next to Spiro Dounis at Citi.
Spiro Dounis: Thanks, operator. Good morning, guys. First question, maybe a two part one on the LEAP expansion. First, can you walk us through the scope of getting that extra one Bcf a day out of the pipeline and how much of that is going to ultimately be dependent on new LNG FIDs? And the second part of the question is, we think about the Phase IV part of the expansion that you’re potentially moving forward soon, is any of that impacted right now by some of the litigation going on right now in Haynesville?
David Slater: Good morning, Spiro. Great questions. So I’ll unpack that. For our Phase IV, we’re in some detailed conversations with a handful of shippers. These are long-term shippers with a long view on the basin and LNG export. I think those conversations are really driven by the commercial value that the system offers. It’s like, I talked about earlier with Jeremy, it’s interconnectivity to numerous supply points in the basin and it’s egress capacity to multiple market areas out of the basin, both to the South, but also in the north. It’s very well connected. And I think the customers are recognizing that a lot of optionality for them to move their product to market. And I think that’s driving the conversation more than some of the drama that’s unfolding in the basin with some other pipelines.
So that’s my perspective on that, Spiro. In terms of extending the runway from 3 Bcf a day to 4 Bcf a day, that’s sort of evolved organically driven by a couple of things. We’re — we’ve completed Phase I and Phase II and we’re now — has scheduled on Phase III. So we’re getting a much better feel from an engineering perspective, how the system is operating, where potential incremental gas is coming in on the system that affects the hydraulics of the system. As we have inbound requests for capacity and running different studies, it’s become clear to us that we actually can expand this beyond 3 Bcf a day up to the 4 Bcf a day neighborhood. So that’s obviously been well received in the market. We have no limitations on that right now, like some other projects have.
