We obviously have the step up with New Mexico. Of particular importance to you all the contracts with New Mexico start April 1. The only reason they start April 1, and yet our pipeline will be in service in probably mid-January, is because we need the front end naming treating because the gas quality changes as we have got as we go into New Mexico. So the contract date is really tied more to when the front end naming treating will be done as opposed to anything else. But I think, look, by and large, you continue to see everything that we have ever said before, and pretty much every other service provider, basin’s getting gas here, you have got, you have got really, you continue to see lots of activity. We continue to see lots of privates, pop up buying single sections.
We continue to see a lot of activity against the backdrop of this commodity price environment.
Jeremy Tonet: Got it. That is very helpful there. Thank you. And then just, wanted to touch base the midstream industry as a whole. We have seen kind of a string of consolidation measures across the space. And just wondering how you view Kinetik’s role, you know, going forward here amidst this backdrop?
Jamie Welch: Against the public’s. Jeremy, the short answer is look at the size of us versus the larger peers that surround us. So we are, I suppose a minnow amongst whales, so to speak. On the privates, you know, there are some privates, private companies out there which are small. They are more like bolt-on or tuck in acquisitions. And to the extent that the sun, the moon and the stars can align on a, from a value proposition, you know, sure. If we thought that it was additive, you know, we are value creators. I think we struggle to be value acquirers because I think acquisitions by definition oftentimes have a higher multiple associated with it going in, in the context of value creation. That is what we have done organically or where we have done like a Permian resource water/gas incentive transaction, which we think is really it is all about the gas from our vantage point.
So I think look, our role is, look, we don’t control the future. We just continue to do what we can do and look consolidation’s going to happen both on the upstream side and the midstream side. And how we – what role we have to play in that and how that affects us and when is obviously subject to spec – it can be subject to anyone’s subjective speculation.
Jeremy Tonet: Got it. That is helpful. I will leave it there. Thanks.
Operator: Our next question comes from [indiscernible] from Wolfe Research. Bet your line is now open. Please go ahead.
Unidentified Analyst: Hi. Thanks for taking my questions. First, just on the GCX sale process. In the event you don’t sell the pipeline, how are you thinking about the drip for 2024? Should we still expect the drip to end with the Q4 dividend payment? And when would that decision be made?
Jamie Welch: Really good question. So, yes, just I want to be unequivocal. The drip, regardless, could go no further than the February 2024 dividend payment. Done. It is finished. We don’t need to talk about dividend reinvestment any longer. And we will make a decision as late as possible in the context of trying to make sure we want to get something done. So we want to push to try to get resolution and get to a positive conclusion on GCX as quickly as we can. We have got plenty of time now to play, play forward. The interesting thing is we look at, obviously, in the context of our overall the strength of the business is, look, we think this accelerates. To us, this is an acceleration of our capital allocation objectives and priorities.
That is really the underlying reason for GCX. And that is it. It is nothing more, nothing less. The deleveraging story is phenomenal regardless of what we did. We would be right maybe just a little north of the three-and-a-half times by the end of next year. Even if you didn’t sell. But we want to sell because we want to go proactively on the front foot as far as capital allocation and focus on deployment of the free cash flow that we create, and obviously also thinking about the dividend increase.
Unidentified Analyst: Thanks. That is very helpful. And just on Shin Oak, how much volume today is firm committed that has to fall on the pipe versus uncommitted volumes that could elect to move on to the other pipelines?
Jamie Welch: I don’t really know. I mean, look, as far our capacity lease is on Shin Oak. Apache is on Shin Oak. There is some plant dedications from enterprise that go on Shin Oak. Enterprise has a capacity lease. I don’t – the question is better after enterprise as to what flexibility they think they have, because I know what we have, and I don’t have full transparency or insight into the full contractual picture.
Trevor Howard: I’m happy to jump in here too. Look, the underlying contracts that support the volumes on Shin Oak are a combination of acres syndication, plant dedications and then committed volumes under the capacity leases. And so we view the volumes across the pipeline today and going forward is quite tricky. Thank you.
Unidentified Analyst: Great, thanks. I will leave it there.
Operator: Thank you, Bob. My next question comes from John McKay from Goldman Sachs. John, your line is now open. Please go ahead.
John McKay: Hey, good morning. Thanks for the time. Just wanted to go back to kind of the volume trajectory and the quarter. You guys call that weather issues like everyone else, but volumes held up, I think, better than we have seen elsewhere. Just curious if you can kind of comment on, you know, did we see a push to the right in completion activity? Have those, you know, have you fully caught up with this kind of close to one six you are sitting at now? You know, do you expect that to kind of keep stepping up or do we kind of need to wait for the New Mexico contracts to kick in April?
Jamie Welch: I don’t think it was necessarily a push to the right, I just think it was more fill conditions in the context of just dealing with heat. And obviously as we said in our second quarter and I think a lot of our peers said the issue on heat was, is multifaceted. It impacted producers, it impacted the utilities and it impacted the service providers. Anytime you are running mechanical equipment, you know, when it is consistently between a 100 and 120 degrees Fahrenheit, things are prone to breaking down. It is just, it is just tough to keep everything running just given, what you are dealing with. So as far as pushing to the right from a turn in line activity, not really. We didn’t really see any changes in the context of shifts, as far as development activity is concerned, I think, the catch up for us is, when you have what, literally when you have wells that, where you may have an electrical outage and you might be down for an extended period of time, you have got to bring up the wells.
