Brian Reynolds: So you couldn’t build a Greenfield terminal based on what we think the terminating fees are going to be.
Unidentified Company Representative: Absolutely not.
Brian Reynolds: Great. Thanks. Appreciate all that. As my follow up, maybe just an update on the spot license and permit process. You alluded to some comments around the LNG and maybe have some having some impacts on the upcoming U.S. elections. Just kind of curious if we should see any risks to the timeline around the spot licensing and permitting process relative to maybe expectations from last year. Thanks.
Unidentified Company Representative: Hang on Bob. Brian, I didn’t, I didn’t say anything about the elections, by the way. Right now we haven’t, we’ve got a record of decision and I’ll let Bob tell you what else we’ve got. But right now, we don’t see anything that should preclude us getting that license.
Robert Sanders: So where we are with, with, with Mirad [ph] we, we have completed all the requirements to receive the license. We’re in constant contact with Mirad [ph]. As a matter of fact, we have seen a draft of the license, which they asked us to comment on, which we’ve commented on, and they’ve accepted our changes. So everything is basically done. We’re just waiting on knowledge that we’ve got the license.
Brian Reynolds: Great to hear. I’ll leave it there. Enjoy the rest of your day. And thanks again.
Operator: Thank you. One moment for questions. Our next question comes from Neal Dingmann with Truist Securities. He may proceed.
Neal Dingmann: Morning all thanks for the time and Randy, congrats and look forward to hearing what’s next for you. I can only imagine. My first question is on guys on marketing specifically. I just wanted to did you’ll capture some of the commodity price volatility experience with this last, I guess I’d call it the January cold snap, perhaps in Waha or the HSC spreads.
Brent Secrest: Neal, this is Brent. We were able to capture some, there were some kind of puts and takes on that whole, the whole weather event. There were some operational issues that we had in Midland that are, that are getting fixed. But from a marketing perspective, there was, there was some arbitrage capture on our side. And we pulled all our references, what you’re saying.
Neal Dingmann: Great. And then my second question, just on the PDH plan, just wanted to sound like for the second quarter row, you all mentioned a bit of operational challenges, maybe with the reactor and licenses issue. I’m just wondering, I think Randy, or for Graham, you mentioned, I think last quarter, you thought they’d maybe be more one off and just wondering, has something changed here and maybe just talked about your sort of future view of the ops there.
Unidentified Company Representative: This is Graham [ph]. Yes, we did have some operating issues in the fourth quarter with the PDH plan. Some of those are related, some of those related to some construction related startup issues, some design issues. At this point, we think we’ve got, the unit is up and operating. We’re not quite at 100% capacity, but we’ve got line of sight on the fixes that will be taking place here soon. And I think at that point, we can expect we’ll have a good operating unit, all the other parameters of the unit that we look at in terms of robustness and ability to maintain operation are really looking good right now. There’s just one, one issue, one more issue we’ve got to get passed on. I think we’ll be looking at a good unit there.
Neal Dingmann: Very good. Thanks for the details, guys.
Operator: Thank you. One moment for questions. Our next question comes from Tristan Richardson with Scotiabank. You may proceed.
Tristan Richardson: Hi, good morning, guys. Congrats to Randy. We appreciate all the time you spent with us over the years. Mr. Fowler, you guys have framed up the return of capital slide for a long time. And we’ve seen that payout ratio that adjusted payout ratio increase over time. And just curious what the stability you’re seeing in the earnings base and the stability you’re seeing in CapEx sort of as you mentioned over the long-term do you see that payout ratio changing meaningfully over time or is there a way to think about a long-term target for that adjusted cash flow ratio, particularly when you sit in such an advantage position from a leveraged standpoint?
Randy Fowler: Yes. I’m thinking of how to frame that because you had quite a bit in there. Several of our peers in the energy sector have come in with a formulaic approach on returning capital. And I think we’ve just been hesitant to doing that because we live in a very dynamic world and opportunities come up. And so really coming in and locking into a formula of so much distribution and so much buyback, more often than not, when I’ve seen companies come in with those formulas, they’re forever tweaking them or rescinding them. And they really have a short shelf life. I really just come back and look at, Jim went through some of our history of returning capital for our first 25 years. We’re going to continue to come in and do that as far as distribution growth.
I think you’ve seen over the last two or three years, we’re back to mid-single digit distribution growth, which is good to be there. And then we’ve been doing buybacks steadily on this. And I think if obviously if we come into an era where we’re not spending as much CapEx, then we’ll have more flexibility to come in and do buybacks. There’ll still be opportunistic buybacks. And I think you saw that when the third quarter, the unit price was really pretty strong and we just opted not to come in and do any buybacks in the third quarter of 2023. But when we got into year-end tax selling and saw the weakness in 2024, we executed buybacks at a better level, even considering the distribution that we the November distribution, we still executed at a better buyback level in the fourth quarter than what was available in the third quarter.
So I think we’ll continue to be opportunistic going forward. And then I think we just need to see what kind of opportunities that we have in the future. But again, I come back in and I don’t know of another midstream maybe other than what’s the Canadian? Or Canada that has successfully returned capital the way that we have over the last 25 years. So that was long winded, but I hope that helps.
Tristan Richardson: I appreciate it, Randy. And then maybe just on the earlier question to ask it a different way. I think, given the pace of NGO pipeline volumes today, plus Tony’s forecast and Justin’s earlier comments, is there an opportunity for the capacity of the year to expand as you progress through construction as we go into 2025 or are we seeing enough competing pipes in the market where this should be pretty balanced in 2025.
Justin Kleiderer: Yes, Tristan, we this Justin, we picked 600 for the reasons before, but you think of a 30 inch pipeline. If it’s fully horsepower, it could do upwards of a million. But we’re trying to be capital efficient about how we phase into it. So if our forecast are right and we need more than what we have today, we can add pumps on it to upsize it.
Tristan Richardson: Appreciate it. Thank you guys very much.
Operator: Thank you. One moment for questions. Our next question comes from Keith Stanley with Wolfe Research. You may proceed.
