Brian Recatto: Yes. That’s really the way we’re looking at it. We’re really pleased with our overall performance in oil. And I want to give a shout out to our re-refinery team. We completed another year without a recordable or a lost time injury, so great operating performance for the plant. We’re still very bullish on it. Lots of interest in our base oil from large integrated oil companies because of the ESG properties of our base oil. I think we’ll have an opportunity over the course of this year, the term up even more of our supply given the attractive nature of our base oil. So we’re bullish on it. We think the mid-20s makes sense for us on a go forward basis.
Quinn Fredrickson: Okay. Thank you, guys.
Brian Recatto: Thank you.
Mark DeVita: Thanks.
Operator: Your next question comes from the line of Brian Butler from Stifel. Your line is open.
Brian Butler: Good morning. Thank you for taking questions. I guess I’d just start maybe on the PFAS that you talked about, that kind of run rate exiting 2023 being $25 million. Can you give some color maybe on what percent of capacity does that represent and thoughts maybe longer term on the size of the opportunity?
Brian Recatto: Yes. I mean, as you know, the opportunity is extremely large. We need some regulatory cooperation. Obviously the EPA is yet to settle in on treatment standards for PFAS waste. The activity has been driven for us by states that have been a bit more aggressive than the federal EPA, but we think it’s a tremendous opportunity. It’s based a lot on delivery of equipment for us. If you read our 4never press release, we have a concentration technology that we have the exclusive right to market in the U.S. which takes the large volume wastewater, concentrates the PFAS contamination. Then one of our other partners has the ability to destroy the resulting concentrate. So we’ll offer a turnkey package utilizing our Vac trucks, our wastewater treatment plants, the ability to concentrate, and then the ability to destroy.
And it’s a function of us being able to get the equipment. We’re expecting delivery of quite a few units of the concentration equipment this year, which is giving us some comfort around the run rate of $25 million in revenue, full-year effect of that equipment and in 2024, should put us a double that number in 2024. And then beyond that, we think it can continue to grow as a state regulated, so we’re very excited about it.
Brian Butler: All right. That’s helpful color. And then I guess going back on the margins in the ES business and do you think kind of exiting again in the mid-20s and the price increase from December, I actually think that paces through the quarters. I mean, do you see most of that improvement in the first quarter as that price becomes realized? Or is it going to kind of really slowly build up to get to kind of that exit at the mid-20s?
Brian Recatto: Yes. It’s going to slowly build up. Obviously we’re beginning to see the impact of it already in Q1. We did the price increase in December. The encouraging thing from my perspective is we’re not seeing additional price increases from our hazardous waste vendors. The market is beginning to stabilize, the waste treatment facilities are beginning to catch up on the backlog. So I think we’ll get a bit of a reprieve from seeing price increases from our third-party hazardous waste suppliers. As Mark mentioned, we did three comprehensive price increases over the course of 2022, which we’ve never done in the history of the company. And we felt like we were chasing our tail all years of staying ahead of our third-party vendors.
That’s something we’re fixing with the development of our own in-house treatment capabilities because we want to get control of our own destiny. So we do think we’re getting a break now, we’ve raised our prices. We are going to look at rifle shot approach on hazardous waste because the market has changed so much over the last two years in terms of supply demand, as you’ve heard from our competitors in their quarterly conference calls. But we’re confident that by second, third quarter we’ll begin to see the mid-20s range.
