Jordan Levy : Got you. I appreciate all that detail, very helpful. And then maybe just a separate follow-up. Just talking through some of the initiatives you’re working on to bring up profitability at some of the plants. Just considering sort of the portfolio as a whole. Curious how you think about as you go through this and you bring on new plants and that sort of thing, how do you think about optimizing that portfolio if you would consider selling down some of the lower-performing assets and how you think about that?
Thomas Meth : Well, look, based on what we’ve seen — so let me take a step back here. We made very, very significant changes two months ago, right? That is not a whole lot of time, but we’ve made incredible progress, and we’ve really created a bottoms-up plan, plant by plant as to how do we get every single plant to a profitable level, right? And every one of these plants either is there or has that potential in a very short period of time to actually get back to profitability. We don’t — the capital required to get there is very small. The plants can absolutely do this the way they are built with operating with a different level of accountability and with a different level of cost discipline and operational discipline. So, we have 10 plants in service, and all of those plants will create profitability against our underlying contract book.
I think you asked specifically about Epes. I want to remind folks again that I feel really good about the way we’re building Epes. It is modeled after Lucedale, Cottondale, and Waycross. Those are our best performing plants. They have our lowest cost per ton. Lucedale is the last plant we’ve built. So clearly, that’s a really good sign for how we’re executing new plants. We know how to do this. And Epes will have the highest level of automation consistent with those three plants. And I feel really good that, that particular plant will have a top three cost position on a cost-per-ton basis.
Operator: Next question will be from Elvira Scotto, RBC Capital. Please go ahead.
Elvira Scotto: Hi, thanks. good morning, everyone. Can you talk a little bit more about your progress on repricing these legacy contracts? Specifically, what percent of these contracts have you repriced? And what do you think you can reprice higher? I mean, is the goal here 100%? Like, where do you think this can go?
Thomas Meth : Elvira, good morning. Thank you for that question. Look, I would love to reprice 100%, but that’s not the expectation, right? We have repriced or created different profitability at a few of our contracts. And the order of magnitude is around $20 per ton for these types of contracts. We’re targeting $18 to $25 in increased profitability. that will come through, for example, different pricing, but there are also value creation opportunities that we have in those customer relationships like we have just announced in Q1 that can drive incremental margin of $18 to $25 to these contracts. We are making good progress. This is — we’re negotiating with multiple counterparties. We expect some of that to actually start flowing through for the rest of the year.
And then as we complete that exercise over the next couple of months, we’ll also be able to include that in — when we are ready for 2024 guidance in what that’s going to look like on a sustainable go-forward basis.
Elvira Scotto: Okay. Thank you. And then — just help me understand the guidance for the rest of the year, what percent of that is based on some of this potential spot business that you referenced?
Thomas Meth : Look, I think the way to look at this is that if some of that happens as part of the commercial activity, it will happen in Q4. And if we’re successful in that, it certainly helps us to get to the higher end of the range. That’s the order of magnitude that we’re seeing for that part of the business.
