So we have a clear runway to expand on a relatively short notice with relatively low execution risks to that higher number. And if you look at what’s under construction and FID (ph) in terms of incremental demand coming over the balance of this decade, there’s definitely a need for significant incremental pipeline capacity. We laid that out in our deck, and I’d point you to that slide, just to look at the numbers.
Spiro Dounis: Got it. That’s helpful color. Thanks for that, David. Second question just going to the CapEx backlog of over $1.3 billion. You sort of laid out ’24 and ’25 pretty clearly, and then it seems like the capital spending in ’26, ‘27, maybe is around that sort of $300 million level. I’m curious if you look at that backlog and sort of tether that to the 5% to 7% EBITDA growth outlook, does that level of spending gets you 5% to 7% or is there an assumption there that you would be adding on more?
David Slater: No. That — if you do the simple math on the EBITDA multiple, that will get you the 5% to 7% growth rate.
Spiro Dounis: Got it. Helpful, guys. Thanks for the time.
David Slater: Yeah. No problem.
Operator: [Operator Instructions] We’ll move next to Robert Mosca at Mizuho Securities.
Robert Mosca: Hey. Good morning, everyone. Wondering if you could speak to the viability of some of those Northeast pipeline expansions you flagged in that CapEx slide. Just understand there might be a commercial desire, but perhaps your thoughts on how they could navigate the regulatory backdrop in the Northeast?
David Slater: Sure, Rob. I’d say Millennium is probably one of the best examples of that. They’ve — they’re in an open season process that had an open season on expansion that ties into the Algonquin expansion that I think Enbridge has talked about publicly recently. So both those two projects are sort of hand in glove. And both of them are in active discussions with shippers as we speak. So they’re very real. They’re active. There’s clearly an incremental demand need in that area. There’s obviously a lot of political drama around this topic around the reliability topic. But they’re very real, and they’re being — we’re in active conversations with long-term shippers around this as we speak.
Robert Mosca: Got it. Appreciate it, David. And then my second question, been some consolidation on your acreage in the Haynesville. Can you talk about maybe base case assumptions on how it affects your volume outflow and growth plan in that region just outside of having a stronger credit customer?
David Slater: Yeah. I mean, that’s a great question that I think until that merger closes and the new entity emerges. When we look at it and you look at the acreage overlap, just looking at the acreage map, you can see the kind of the industrial engineering rationale around that merger. The acreage is side by side. I think it’s going to enable them. And I think Chesapeake has said this publicly, it will enable them to drill longer laterals, more efficient capital deployment to release the same quantity of gas. So I think once the merger happens, there should be a good opportunity for us to sit down with the new entity, look at the dedications that we have, the swing dedications. Look at where maybe there’s pockets of acreage at Island within that dedication that maybe has the Chesapeake label on it.
I suspect there’ll be opportunity, but it’s really going to be a question post-merger as to having more clarity on what those incremental opportunities may be. We’re certainly bullish the transaction from a credit counterparty exposure. It’s a significant uplift for us. And I think is one of the key items in our journey to investment grade for DTM.
Robert Mosca: Got it. Appreciate the time, everyone.
Operator: Next, we’ll go to Sunil Sibal at Seaport Global.
Sunil Sibal: Yes. Hi. Good morning, and thanks for all the clarity on the call. So first question on your investment grade ratings targeted by year-end 2024. So I was just curious, are there any specific milestones that the rating agencies have laid out for you for 2024 that help them get there or is it just basically executing on the ’24 guidance.
David Slater: Sunil, I’d say there are a couple of things that the agencies have made very clear. And I think when you read the reports that they’ve published on us, they allude to them in the reports. So I’d say the first item would be we’re currently on positive outlook at Finch (ph). They all mentioned Southwestern achieving investment grade, which the original plant for Southwestern was to achieve investment grade this year. So I think the merger is an accelerant to that. The agencies have already publicly stated that the new merged entity would be investment grade. So I think that’s a catalyst that accelerates our journey to investment grade. It’s one of the key measures that the agencies have mentioned in terms of our move from where we are to investment grade.
And then the other item is what you alluded to, which is just continuing to have a disciplined execution of the detailed plans that we share with the rating agencies since we spun the company. And we’re definitely doing that, and we’ll have an opportunity to sit down in the spring to do our annual checkup, and we’ll be demonstrating again to them that we continue to execute on that plan and deliver the outcomes that they were expecting. So I think we’re well positioned to achieve that later in the year.
Sunil Sibal: Got it. And then on the $1.3 billion backlog that you laid out on the projects. I was curious if you could talk a little bit about some puts and takes, which might pull that backlog either up or might lead to some pruning in the backlog as you go along?
