Mackie McCrea : You bet. This is Mackie again. As you can imagine, that’s a very sensitive question from the standpoint of competition. But as far as when contracts fall off and kind of what our approach is, but I will answer it this way. We are very confident that we will keep our pipeline full and increase the volumes through time, certainly if the volumes grow in the Bakken. For the best outlet out of there, we can, at the best cost, we can feed all the refineries, or many of the refineries in the Midwest. We come down to the Gulf Coast, of course, and feed all the refineries in the Port Arthur area. And of course, through our Bayou Bridge Pipeline, we can, well volumes all the way to St. James. So there’s no other pipeline that’s even close, no other options than ours we feel really good about as contracts roll off, we’ll do very well on re-contracting or selling on a spot basis.
Operator: Our next question comes from Steve Stanley with Wolfe Research.
Keith Stanley: Hi, it’s Keith. First question, you made some progress on repaying some of the preferred equity and you mentioned another series to take out in May. How are you viewing the preferred stock right now over the next few years and how do you kind of weigh using excess cash to repay that versus other uses?
Tom Long: Yes, listen, we’re actually very excited at the fact that we’re able to start bringing some of that back in as far as the perpetual prefers. I think you’re going to see us to continue to look at those and as we look at even cash flow and where our cost of that is, it makes a lot of sense for us to continue to bring those back in. So I think that’s how you’ll see us kind of prioritize when you look at our deck, told you that, you’ll see us working on those first going forward. It’s probably worth mentioning that even with the Crestwood acquisition, as you know, we had some more come in with that. We’re going to continue to be opportunistic on those. When they make sense, economic sense, we’ll look at calling those, but we always are very diligent in looking at the math on those and as soon as they make economic sense, we will jump.
Keith Stanley: Great, thanks. Second question, one of your peers recently said they think one to two new Permian gas take away projects move forward this year. I might have missed it, but I don’t think you mentioned Warrior today. So my question is, do you agree with the view that one to two pipelines probably move forward and any updates on Warrior and how optimistic you are on moving that forward kind of with or without Lake Charles?
Mackie McCrea : Yes, this is Macky. I’ll answer that. I guess an update on Warrior is we love to say where at FID we’re sold out for 10 years, demand charge, and ready to go, but that’s not where we’re at. We have sold about 25% of our goal. We’re in negotiations with about 1.6, 1.7 BCF of additional customers. All of them are looking for, or a lot of them are looking for different places to take the gas. There’s no project that’s even contemplated. It’s anywhere close to Warrior where it provides access to almost every major city gate in the state of Texas. It goes to all the major hubs, Carthage, KD, et cetera. It also goes to a lot of the power plants either directly or indirectly were connected to the majority of power plants.
So it’s by far the best project that’s out there with the pause from the DOE. There is a customer that was looking at that. That’s going to pause a little bit. However, we continue to push forward. We’re not saying that FID is imminent. We do think there will be another pipeline needed in the next two and a half years. And if that were to happen, we do believe it will be ours.
Operator: Our next question comes from Brian Reynolds with UBS.
Brian Reynolds: Good afternoon, everyone. Maybe to follow up on some of the guidance on the EBITDA side relative to the S4 guide. I assume if you could just talk about maybe some of the differences between today’s guidance and the S4. I assume a lot of it’s related to some underlying growth CapEx assumptions that were in the S4, along with maybe some marketing that was included there. So it’d be great if you could just provide us an update on and maybe your expectations for marketing, which I believe you need to typically exclude from the guide. Thanks.
Tom Long: Yes, listen, I’ll definitely start off here, and then if Mackie you want to add something more, you can. By far the largest driver on the difference between the S4 was the commodity prices. I think when you look at what we used back then when that was filed, we are substantially lower now with our commodity prices. So and then also deferring — maybe deferring some of the capital, I think is another piece of that that you’ll see in the difference between that S4 and now. So those are probably the two largest drivers.
Brian Reynolds: Great, makes sense. And as a follow-up, just touching on M&A, Sonoco made a large acquisition over the past month. So kind of just curious from an ET value perspective, are there other opportunities to optimize ET system with additional access to different types of assets, whether it’s crude or NGLs or refined products? Thanks.
Tom Long: Obviously, a great acquisition by Sonoco. It’s a very, very good fit for them. And I will say there’s not been discussion Sunoco. This was a Sunoco transaction and they are doing a great job of proceeding through getting all the approvals and even moving a little bit into the integrations. But I wouldn’t say there’s been any discussions on that.
