Steven Kobos: No, thanks, Mike. I appreciate the question. As I said, we are a global company. We’re out there. Sometimes if I speak to the Indian Ocean Basin, not writing off sub-Saharan Africa at all. But the reality is there are interesting points all over the global market. And since we have offices all over the world, we have insights into those opportunities. So I’m not meaning to denigrate any of those regions, but we clearly do like the Americas as well. And you shouldn’t take that we’re writing off any particular part of the world. We’re just prioritizing in the way we best can what we think are the most likely near-term opportunities.
Michael Scialla: I guess from a reverse point of view or anything that’s elevated the Americas recently? Anything changed there that has made that look more attractive?
Steven Kobos: Mike, nothing I want to get into right now. As soon as I can provide better color, we will.
Michael Scialla: Got you. Then I just wanted to ask on the long-term LNG sale and purchase agreements. Do you plan to continue to tie those agreements together like you did with Qatar and Bangladesh? And if so, any thoughts on where the Plaquin LNG volumes go? Or do you leave some for the spot market? That’s all I have.
Steven Kobos: Yes. Thanks, Mark. I’m going to turn to Oliver in a second on it. I will say, very happy with the Qatar energy deal. It’s a good fit, a good solution for an important market of ours. And frankly, we’ve been working with Qatar for some time. And as we’ve mentioned before, 10% of their existing LNG is regasified across our asset class. Really proud about that deal because it shows the high regard the Excelerate is held by major players around the globe. But Oliver, let me turn to you for Mike a little more. Obviously, we want to support integrated deals.
Oliver Simpson: Yes. Thanks, Mike. I think as we mentioned in the presentation, we mentioned before, establishing a diversified energy portfolio is a key part of our strategy. I think you see today in that prioritized project portfolio that we have a number of projects where we’ll lead that LNG supply. These U.S. Gulf volumes are — there some of the most — as FOB volumes or some of the those flexible volumes that are out there. So they’re a natural fit to these projects. At the same time, we’re seeing good interest for the key volumes. So we will assess the different opportunities, whether the projects or elsewhere as needed. But I think to your question, it’s building that LNG supply portfolio is very much aligned with how we see the downstream demand growth. So we’ll build it in parallel with that and to match that demand.
Operator: Our next question comes from Craig Shere of Tuohy Brothers.
Craig Tuohy: I look forward to catching up later this afternoon. The growth opportunities are obviously exciting. You’ve got to walk before you run. And quite frankly, we think you’re not getting credit for the speed at which you’re walking today. So I’ve got 2 simple questions about 2024 guidance and what the business really looks like. First, excluding growth-oriented development expense and smoothing out that unusually Excellence vessel dry docking costs that I believe only occur over a few years. What would a more current recurring average run rate EBITDA look like? That’s my first question.
Dana Armstrong: I can — that’s actually relatively simple. So as you can see from our guidance, the midpoint is $30 million to $25 million for 2024. And as we stated previously, of that $325 million, $20 million is what we expect to spend in business development this year. And we spent roughly $20 million on our drydock, and that was in all spin. Some of that was off-hire. But we have a net P&L impact for the summit drydock of $20 million in this quarter, and we have roughly a $20 million impact last quarter for the Excellence. And you are correct, that happens every 5 years. None of our other vessels are on the boot structure, so we will capitalize all of our drydocks for the other state vessels. So you can safely assume, I think, a run rate, you could probably exclude that $20 million.
However, we caution you not to exclude that business development spend from a run rate viewpoint because we are a growth company, we will continue to invest in growth and so the $20 million of business development, I would see is pretty in the range of an ongoing average run rate for a broadcoming of our size. Does that make sense?
Craig Tuohy: Yes. I mean I guess the point I’m trying to drive home here is if you’re not being paid for growth, we probably shouldn’t be docking you for expenses to pay for growth. And it sounds like smoothing out the dry docking, your run rate, if you weren’t focused on these tremendous opportunities might be in the area of about $350. Does that sound about right?
Dana Armstrong: That sounds about right, maybe a little bit more. But yes, I mean if you just add back to $40, you get 365. So yes, somewhere around 350 to 370 would be the range without the growth spend and the drydock.
Craig Tuohy: Okay. And as to the discussion about the global south returning to spot market purchasing, can you opine about what, if any, is included in your ’24 guidance on one-off upside there that you’ve seen in prior years? And to the degree it’s not included, does that represent a prospective upside for this year?
Steven Kobos: I mean in terms of — Craig, I want to understand the question. I think you’re asking does our guidance contemplate much in the way of additional incremental cargo sales questions.
Dana Armstrong: Yes. So Craig, we don’t expect a huge amount of quarter. So this year, we had one in the first quarter. And from a guidance perspective, it’s included in our expectations. It’s not a material figure.
Craig Tuohy: Okay. In prior years, you had managed to, on occasion, get some low millions of dollars of margin from unexpected kind of seasonal opportunities. You don’t think that exists today, the way you’re working?
Steven Kobos: I think, Craig, the words you used of unexpected and seasonal are probably the right way to think about it. But I’m not going to give the commercial team a hall pass, obviously, and they’re going to be out there trying to do what they can. But I think we’ve got the right balance of that in our guidance.
Operator: [Operator Instructions] We have a follow-up question from Wade Suki, Capital One.
Wade Suki: Sorry for the double tap. Just to say something, I think it was in response to Bob’s question on upgrades. Did I hear you correctly say reliquefaction capability, is that right?
