Repauno is a unique asset and that we sit on top of this incredible granite formation. Obviously, we operate one cavern today, and that thing has been operating flawlessly, handling butane and propane. And so we’re very, very excited about the new caverns. I think just the active obtaining permits is a significant driver in value creation, and that value only grows as you start construction and actually build out the cavern. Look, Repauno is today one of the bigger gateways in the Northeast here for the export of natural gas liquids. With the caverns, we will be very, very close second to our neighbors Transfer just down the river. And so I think it’s huge for the value creation at Repauno even before we have the things up and running.
Giuliano Bologna: That’s very helpful. And then where do you want to see nat gas prices before you start increasing production?
Ken Nicholson: Yes. The prices have been low at Long Ridge for — particularly in the net in the Utica Marcellus formations for quite some time. And so the past few quarters, we have not seen a lot of excess gas production. I can’t say I have a great view as to whether gas prices are going to stay where they are or go up, I think the general consensus is they’ll creep up from here over the next few quarters. So hopefully, we’ll be in a position to produce some additional gas and sell into the market. Generally, we like to see gas prices at $2 an MMBtu before we make significant commitments to gas production. So fingers crossed, we get to that level, and we can start producing more gas. Obviously, West Virginia is going to be in a good position to start gas production here as soon as we close out the financing, which I expect to do this month.
We don’t quite meet the $2 level in West Virginia. The cost of production is a little bit lower, maybe closer to $1.7. So we’re ready to go there. And prices today are hovering around $1.50 in the PJM region where we are. So we’re close. We’re close. But I think we’d like to see gas prices climb a little bit more before we commit to large-scale production.
Giuliano Bologna: Sounds good. And then one final one. As your infrastructure assets mature as more permits are received. I’m curious with all the emphasis [Indiscernible] in terms of infrastructure assets. Are you seeing any reverse increase on any of your assets?
Ken Nicholson: Yes. As you noted, I think there — look, market conditions are generally favorable. There’s a lot of money in the private equity system and investor base and a lot of dedicated infrastructure funds that are out there. There have been not a lot of available targets. And so there’s a lot of hunting for rail assets, terminal assets and long-lived infrastructure assets. And so yes, we — I would say the reverse inquiry has been a little bit more active than it had been. I think it’s a function of what’s going on in the market, but it is probably more a function of our assets really maturing and getting to the point where we’re getting to a level of scale where independent financing of the assets is more readily achievable and what have you.
So obviously, we’re responsive to that reverse inquiry as would be appropriate. But yes, I think the M&A market is a little bit more robust. We’re seeing fewer opportunities to buy things in certain sectors, but it also means there’s a lot of demand from folks and not a lot of supply, which with our assets, that’s not a bad position to be in.
Giuliano Bologna: These are very helpful. I appreciate it and that’s was it from me. So now I’ll turn back in the queue. Thank you.
Ken Nicholson: Thanks.
Operator: There are no further questions at this time. I’d like to turn the call back over to Alan Andreini for any closing remarks.
Alan Andreini: Thanks, Michelle, and thank you all for participating in today’s conference call. We look forward to updating you after Q1.
Operator: Thank you for your participation. This does conclude the program, and you may now disconnect. Everyone, have a great day.
