Operator: Our next question comes from John Moore, a Private Investor. Your line is open.
Unidentified Analyst: Great. And this is a remarkable acquisition you made here of the Merom Power plant. And I guess my question is, are you there are a number of power plants in Indiana, they’re going to be shut down. Are you considering acquisitions of more power plants?
Brent Bilsland: Yes, I think we would always take — we would always consider additional power plants. So we’ll just have to evaluate each one of those opportunities as they come. That being said, I think there’s a significant portion of the U.S. coal fleet that will retire over the next decade. And so we think that there will be more opportunities to look at similar transactions to the Merom transaction, but I can’t tell you when and I can’t tell you where we’ll just have to evaluate those when they come.
Unidentified Analyst: Great. And then the last question is the — I see that the power purchase agreement expires in 2025. And I had understood that it was sort of a May of ’23 was going to be an important drop down in the percentage of the power that you agreed to sell to . I thought I had read a disclosure here that you had agreed to sell 70% of the capacity in up to 2025. Did I misread that? I haven’t been able to reconcile these numbers.
Brent Bilsland: You misread that. So we have 100% of the energy sold of the plant through May of ’23 from the seller. And then it drops down to 20% of the energy output starting in June of ’23 through December of ’25. We chose not to sell power beyond there because we have to comply with ELGs if we want to run the plant which is the environmental piece of it. So that up to $45 million of environmental expense we will have to invest that money if we want to run the plant beyond 2025. Now if we make that decision to do so, then we feel that the plant is in environmental compliance with all environmental rules that are — that exist today, what doesn’t mean the rules won’t change, but we feel the plant will be in good shape from that standpoint. And that investment would come over a handful of years. So is one of the things that we’re disclosing.
Unidentified Analyst: And then I read in the breakout of your electric operations in 2022 that you sold $66 million worth of — you had $66 million of revenue, and you recorded $31 million worth of income, but I assume that was — the difference between that and the $5.5 million that you disclosed was just an accounting difference in the contracts?
Larry Martin: That was the result of the GAAP accounting treatments we had to do on the liabilities and assets that I explained in the purchase accounting for the power plant. The $5.5 million was EBITDA, and those adjustments were not included in EBITDA.
Operator: Our next question comes from Mike Rybak from Butler Hall. Your line is open.
Mike Rybak: So I guess my question, yes, I just wanted to dig in a little more on the power plant. So, you guys did $5 million of EBITDA in the quarter. What was the free cash flow associated with that? And then, I guess, taking a step further, if that’s sort of a good run rate for ’23, right, to take five, multiply it by four, that’s $20 million. I mean if you’re doing like $35 million of CapEx, it looks like it’s going to be free cash flow negative to the tune of $15 million to $20 million in ’23?
