Sital Mody: Yes. So, this is Sital Mody. Just to – I’ll give you a micro example of something we’re working on in the Southeast. We’ve got data center looking to connect to our system. As Rich alluded to, reliability is very important. Not only are they looking for reliable power supply, the power provider itself is looking for incremental capacity. And on top of that, the data center is looking for incremental storage to backstop the intermittency of their backup power generator to the effect that it’s not available. So, that’s an example of something we’re looking at in terms of the broader themes. I think they’re looking for access to reliable power. They’re looking for access to obviously large populations and land and then water is important for cooling purposes. So, those are kind of some of the themes in our discussions, but specifically, that’s a good example of something we’re working on in the Southeast.
Theresa Chen: Thank you, Sital. And Kim, to your earlier comment about significant opportunities to add to the backlog within the next year or so. Is that referring to an Egress solution out of the Permian? Is there more to that comment? If you could help us unpack that would be great.
Kim Dang: Sure. So, I think it just – it refers to a broad set of opportunities that we’re looking at. And so – that is on the supply side, there could be things around Haynesville. We talked about already on this call, coming out of the Permian, there is opportunities coming out of the Eagle Ford as all these basins are going to have to ramp up. Just to get to the 20 Bcf of growth that we’ve been talking about before you add on top of that, what all the data center and AI demand growth numbers that we talked about. So it is supply to the Southeast, it’s LNG on the demand side, it’s the industrial growth on the demand side. It is LNG potentially on the West Coast, it’s market power growth out in the West. Its power growth in Mexico on the West Coast.
So I mean there’s a whole bunch of fundamental factors that are driving this. And I think what we’re seeing is that the opportunity set has grown. And so – but we are to the point of commercialization of the opportunity set. We won’t get all the things that we’re looking at. But I think that once you start looking at larger opportunity sets, over time, we’re going to add those to the backlog. And so I think some of these opportunities are going to come to fruition within the next year, and that’s really what’s behind my comments.
Theresa Chen: Thank you.
Operator: And the next question is from Dan Lungo with Bank of America. Your line is open.
Dan Lungo: Hi, guys. Thank you for taking my question. I just want to turn back to the leverage target real quick. I know nothing changed with capital allocation priorities. I was just wondering if you could comment what type of factors would drive it to the higher end of the range and the lower end of the range outside of, obviously, the right acquisition?
Kim Dang: Yes. So I mean here’s what I’d say is if we see an acquisition or there’s some huge expansion opportunity that could result in leverage going up for a period of time. If there are periods of time when there’s less opportunity. Obviously, we produce tremendous amounts of cash flow. And then you could create capacity on the balance sheet for a period of time until more opportunity came along. And so that’s why the range it gives us the flexibility to move up and down inside that range, depending on what the environment looks like.
Dan Lungo: Thanks. Very clear. And then does this change anything in regards to how the rating agencies view you – obviously, you’ve been operating like this for a while. So I don’t think it will, but just any comments around what the agencies have said to you guys?
David Michels: I don’t want to speak for the agencies. But I do think it matters that 4.5 being our previous target was viewed somewhat – somewhat by the agencies and certainly by some of our fixed income investors as where we would like to operate with our leverage over the longer period of time to get up to that 4.5 times. In reality, the way we operated was – we operated with some cushion below that. So we think that this leverage target is more in line with the way we’ve been operating, which is what we’ve told everyone for a long time. But I think by making this change, I think it will have some impact on the way that the rating agencies view our financial policy as well as our fixed income investors.
Dan Lungo: Thanks. Very clear.
Operator: And I’m showing no further phone questions at this time.
Rich Kinder: Okay. Well, thank you all very much. Have a good evening.
Operator: This concludes today’s call. Thank you for your participation. You may disconnect at this time.
