Operator: Our next question comes from Jackie [inaudible] with Goldman Sachs.
Unidentified Analyst : Hi. Good afternoon. First, I just want to start off on exports. It looks like for NGL exports continue to be strong, though slightly down a little bit quarter-over-quarter and how do you view exports going into ‘24? And do you see any upward pressure on margins as that dock capacity remains tight until you see those expansions online in mid-25?
Mackie McCrea : Yes. Jackie, this is Mackie. What a great business we have with our export at Nederland and at Marcus. We’re very excited about what we’ve built and what we’re building out. However, there’s a lot of issues that are involved, especially with shipping. And so there’s issues with Panama Canal or through the Red Sea, the timing of ship. Some months we may see direct basis and some months less. So every month, every quarter kind of have it’s up and down. But overall, we see our steady where we’ve been and our slight growth pretty much completely fill up, our entire export capacity in the short term over the next 18 months, we believe we’re going to see some very, very good margins for that business. For the spot business that we have available today, there’s a significant overdemand in the international market than what the U.S. is capable of exporting, and we are positioned very well in the next 18 months to capture that upside.
And then, as I mentioned earlier, we’re very excited about bringing old projects that will bring in significant revenue for our export business.
Unidentified Analyst : Got it. Great. Thanks. It makes sense. And then, just as a follow-up, we saw some partial contributions from the Crestwood acquisition this quarter. Wondering if you would be able to quantify what synergies you were able to capture for the remainder of ‘23, and if you see any additional opportunities at this point beyond that $80 million annual cost synergies disclosed and the potential timing of when you expect to see that downstream gain from the acquisition.
Tom Long: Yes. After you get a chance to start going through all the various costs in an organization, we always try to be fairly conservative. We’re doing it with what information we have at the time, meaning public information. But after you get really further into these things and start looking at organizations, et cetera, I think you’ll find that a lot of times you’re always hopeful that you can’t find more. So the $80 million run rate that we’ve talked about from a call standpoint is something that we feel very comfortable with and putting that number out there. And, of course, $65 million is what we put out for 2025. But when you start looking across its systems and all the other type of costs that are buried sometimes that, once again, you can’t see when you’re middle of these things are early in the process of them.
It’s always good to be able to find those, and I want to make sure we stop for a moment and give a huge complement to our team, who I know we’ve said before, is no one is better out there at integrating these companies than we are. We’ve had a lot of experience at it, and we move quickly, efficiently, and effectively as we go through it. But as mentioned in the prepared remarks up front, we’ve remained on multiple fronts, very excited about some of the commercial opportunities. I don’t know, Mackie, you want to add anything more to that, what we said?
Mackie McCrea : Other than what you’ve did in the opening script, we’re still digging in. Every acquisition that we do, we discover more and more under the rocks that we turn over to elaborate a little bit more on his opening remarks. We are seeing significant logistics and maybe even deferred on some cost, fully utilizing all of the assets when combined with the new Crestwood assets in the Delaware Basin. There are also some things we can do in the DJ Basin that we’re looking at. Up in the Bakken, a lot of those barrels haven’t found their way to our pipeline. We think now they will. So we think that will also bring more business to our total pipeline out of North Dakota and then the Northeast. We see some or starting to see some real commercial advantages to working together with that team and doing two things.
One, helping that business grow distribution with propane and butane that Crestwood built and then on the other side where they can bring in volumes with their contracts and with their relationship into our Mariner franchise for deliveries to Marcus Hook. So as Tom said, we’re just getting started but pretty excited about the things that we’re already seeing.
Operator: Our next question comes from Michael Blum with Wells Fargo.
Michael Blum: Thanks. Good afternoon, everyone. So I know you have a growth CapEx target of $2 billion to $3 billion but you also discussed quite a few potential projects in your prepared remarks today, some of which could be quite large. So I’m wondering if that’s $3 billion is hard cap or would you consider going above that range, if the returns make sense?
Tom Long: Yes, listen, I’ll start and then you go with Mackie. No, there’s not a hard cap as we look at these. Once again, we’ll evaluate projects that make economic sense and when we pull it all together, as recently gave the range of the 2.4 to 2.6 and keep in mind that that did include $300 million of rollover from 2023. That didn’t make it into service at the time, so those got rolled into 2024. So make sure you bake that in there. But is there any more details on that with Michael, as far as your question here?
