Steven Kobos: Thank you, Bobby, for inviting us to open up a postmortem seminar here. We’ve got – everything is dependent upon the market we’re looking at if we – what we think about the fundamental demand. We often talk about the fact that we’re going to invest in projects, we like to invest in markets. We care about the fundamental demand and need for energy in a particular market, whether it’s the demand for energy security or the demand for energy. We want to know that there is a solid business case driving the demand. And then we’ll look at what we expect. We’ve said before, we’re looking for mid-teens unlevered after-tax returns on a lot of those sorts of projects. So we’re looking at our hurdle rates in different markets.
These are big opportunities. Obviously, you’re talking about CapEx. It can vary – I would say they average $200 million to $400 million in terms of opportunity size. But if you’re going to pass anything and I’m not going to speak to that, but I think we have a track record of doing great due diligence out there in the world, evaluating the need for energy in a particular market that drives a successful project over many years. And then making sure that it’s going to meet our hurdle rates that we’re comfortable with our governance. So it’s a host of things. But I do think we’ve got a good track record and I assure you, we have rigor in this process.
Bobby Brooks: Yes, I would definitely agree with that in term – the solid track record that you guys have built. And then I guess just last question would be, I think Dana mentioned you’ll use the balance sheet to pay down debt when appropriate. You guys made that extra $50 million payment towards debt in the fourth quarter. So I was just wondering maybe what triggers made it appropriate to pay down more debt in the fourth quarter of last year?
Dana Armstrong: Hi, Bobby. Thanks for the question. So as we went into the fourth quarter of last year, we did quite a bit of analysis on our cash flow and our ongoing projections, and our CapEx needs, and so on. And as we looked at where we finished the year and as you can see from our balance sheet, we finished the year with very healthy amount of cash. We felt comfortable that we had enough excess cash to continue to move forward with these growth programs, as well as the share repurchase reprogram and pay down some debt. We made a decision to pay back roughly $55 million, that’s about 7%. So that will save us roughly $4 million a year. We felt like that was a good use of cash based on where we are right now with our balance sheet. So we’ll continue to evaluate it as we look at our growth needs going forward and make those decisions on a case-by-case basis.
Bobby Brooks: Got it. That makes sense. I really appreciate the color. And I’ll return to the queue. Thank you, guys.
Operator: Our next question today comes from Eli Jossen from JPMorgan. Your line is now open. Please go ahead.
Eli Jossen: Hi, good morning, everyone. Just hoping to circle back on the share repurchase program. So I know you highlighted 1Q ’24 commencement. Are you able to confirm if there have been any repurchases year-to-date? And then kind of just how do you see the cadence of those playing out through the year? Thanks.
Dana Armstrong: So, thanks, Eli. We actually haven’t opened that, we’re still in a quiet period. So obviously, as we release earnings today, we’ll exit our quiet period. We intend to start those very early next week. So we have not actually started yet. As far as the cadence, we fully intend to – even though we announced that over a two-year program, we expect that to be likely will be completed ahead of that two-year program and that’s because just based on where our stock is today and the fact that we’re so undervalued based on the parameters that we’ve set with the banks, we feel very comfortable that we’ll be able to get that done within the year.
Eli Jossen: Got it. That’s a great color. I appreciate it. And then maybe just if we could pivot back to some of the portfolio additions you guys have referenced in the forward-looking CapEx guide. So beyond the new build coming on in 2026, what are the puts and takes for the kind of build versus buy strategy in your view? And could you just remind us how you kind of compare economics between those two strategies?
Steven Kobos: Sure. I mean, the bulk of the committed CapEx, as Dana mentioned, is for tranche on the new building with Hyundai Heavy Industries. As we mentioned on the call, we’re going to continue to evaluate opportunities to expand the fleet as part of the strategy. We feel very strongly that, there is a market tightness in this asset class, we continue to see that. We think it’s one of the limiting factors in projects and the ability to move forward with us. We will continue to be evaluating acquisition or new building of the fleet. In terms of the question going as to organic or inorganic development of some of the opportunities we discussed, it’s just a both and obviously, we want to look to the inorganic opportunities.
We like as we’re interested in accelerating earnings in 2025 and 2026, no doubt about it. So that is one of the key drivers on that, plus not every market is the same. Some are better suited for organic development, some are better suited for buying something that’s further along. So it’s horses for courses. We’re going to keep evaluating those, but we have very definite return expectations and hurdle rates that we have to meet. And whether we get there through an organic or inorganic basis, we have our expectations, which we fully tend to meet and anything we’re going to execute on is going to be accretive for the company and for our shareholders.
Eli Jossen: Got it. Appreciate all that color. Thanks again.
Operator: Our next question comes from Zack Van Everen from TPH. Your line is now open. Please go ahead.
