Sital Mody: I think the only thing I’ll add to that, we’re – when you think about the competitive landscape, we’re heavily competitive, right? And so I think what differentiates us is our network. I think what we’ll bring to the table is our – our on-system storage, balancing capabilities, and then more recently, we’ve been focused on expanding our ability to aggregate nitrogen. And I think that’s what’s going to help differentiate us from the competition.
Kim Dang: Yes. The other thing I’d say is that helps differentiate is the fact that we can provide shippers with multiple different outlets. So if an LNG shipper, if the international markets change and the ships go somewhere else, we can, given the pipeline system that we have can help them redirect those flows if they have storage service into storage, but if they don’t have storage service to other markets.
Brian Reynolds: Great. Thanks for all that. Maybe as my follow-up to touch on just the CapEx backlog build multiple. It’s got a lot of focus over the previous few quarters. So it seemed to trend a little bit higher this quarter with an increase of the backlog as well. So just kind of wondering if you can talk about the moving pieces there, whether it’s new projects driving it or whether the rising rate environment is having an impact on future returns? Any color would be helpful. Thanks.
Kim Dang: Sure. Absolutely. So one, let me start with the fact, and we talked a little bit about this last quarter that the backlog multiple is not our focus. What we focus on is the return on projects. And so – and we run a long-term cash flow and assume a terminal value or not and assume a renewal or a partial renewal or not. And for you guys, what we do and the backlog is we just look at first year EBITDA and translate that into a multiple to try to help you understand sort of what these projects are going to generate. But the way – so all I’m saying is that, the multiple may move up or down on the backlog and these are still very attractive projects. So it’s not like we only do projects that come into the backlog at three times.
And again, with kind of a mid-teens average unlevered IRR and we’re adjusting up or down that slightly based on cash flow risk. But this quarter, what we saw was the projects that went into service were about roughly three times multiple the projects that we placed into the backlog, so that the added projects were about a four times multiple. And then on one of the existing projects in the backlog, we decreased the year one EBITDA. And the reason did that was because we think that project is going to take a little longer time to ramp into the EBITDA. And so we’ll get – we think we’ll get to the EBITDA that was in the backlog. It just won’t happen until later in time, it won’t be year one. Now, even if we never ramped on that project, that project is still a very attractive return.
And I think we feel pretty good that we are going to add incremental volume there.
Brian Reynolds: Great. Makes sense. I’ll leave it there. Enjoy the rest of the evening. Thanks
Operator: Our next caller is Tristan Richardson, Scotiabank.
Kimberly Dang: Hi, Tristan.
Tristan Richardson: Hi, good morning. Good evening. Just appreciate it Kim. I guess just given the growth you guys you’re seeing in the core transport business and certainly, volumes are growing in midstream, but as you said, volumes are a little below plan, and you guys are working on asset sales. I mean, do you see midstream continuing to contribute less to the business maybe as a percent over time, especially as we kind of look into next year?
Kimberly Dang: And so when you say midstream, you’re separating out the gathering and processing from all Texas Intrastate business, which is also in midstream?
