Tobey Sommer: Sure. So I had a couple of questions on M&A. I’d like to get your autonomous sense for what the large activity in the oil patch, is that indicative of a broader resurgence or perhaps isolated? And I’d love to hear if you have any perspective on the new merger guidelines out of the FTC related to antitrust. It seem a little bit stricter, which can maybe be favorable on a specific project, but also could influence the animal spirits that sometimes drive consolidation and make some other sort of reluctant to pursue it. If you have an early perspective, I’d love to hear it.
Steve Gunby : Look, I don’t have a definitive perspective on this. I think you’re hitting on the 2 points that do matter a lot. I mean one is how many deals get done. And then the second one is how contested are those deals. I mean if you look at this year, the deal market is down a lot. Our E-Con business is doing pretty well. Why is that? Because there’s been a lot of regulatory scrutiny — enhanced regulatory scrutiny and where does enhance regulatory scrutiny having a leading group of economists is — your group is in demand. I think you’re pointing out the right forces that people we scrutinize every day, which is higher interest rate, does that mean deals down, animal spirits, positive-negative, but also enhanced regulatory script.
I don’t know how that all shakes out, but certainly enhanced regulatory scrutiny has historically meant more demand for our services rather than less. The market, how many M&A deals next year, I don’t know any better than you, Tobey, happy to compare notes, but I think we’re both guessing. Does that lead to a little?
Tobey Sommer: Absolutely. Last question for me, Ajay, you retired the convert. Is the current balance sheet structure, what we should think of over the medium term? Or do you have something in mind to alter the complexion?
Ajay Sabherwal: No. No, Tobey. We have a $900 million revolver and that’s what we are using and paying down.
Tobey Sommer: Thank you.
Ajay Sabherwal: Thank you, Tobey.
Operator: Our next question will come from Andrew Nicholas with William Blair. Please go ahead.
Andrew Nicholas: Hi. Good morning. I appreciate you taking my questions. A lot of things that I was going to ask have been covered. So apologies for a little bit more granular questions here. I guess, first on CFR, the higher bill rate, really good growth. I think you mentioned some differences in terms of the staffing period and who’s doing work. But is there any way to kind of frame the impact from mix between the different business lines and practices versus underlying rate increases or price increases on a rate card? Just trying to get a better sense for the different levers there.
Ajay Sabherwal : So — I wouldn’t, at the outset, go to either of those two places, the rate card or the mix. I would go to the factors that we mentioned, which is that we hired a lot of junior people in the universities and yet our utilization, if you look at by segment, remain fairly steady, which meant that more senior people were more busy and they build at a higher rate. That plus the realization on past deferred revenues where somebody hit a cap or we started work without an LOE. Those were the larger factors there. On our last call, Steve mentioned something very important, where he said, look, it’s the headcount growth plus inflation, our revenue should exceed both of those combined together. This quarter, we achieved that. That’s our goal. Now over – those can come through rate increases, mix, utilization, realization, two of those four were in play this quarter.
