Sanjiv Lamba: Steve, you mentioned network density. And sometimes we live and breathe it over a year, so we take it for granted, everyone’s on the same page, as far as that definition is concerned. So I’m going to spend a minute just talking about how we think about network density and then I’ll talk about nexAir in a bit more detail. When you think about network density, it is about a combination of factors. But really, what stands out over there is creating a dense network that has an opportunity to leverage core product, economics and ensure that you fully leverage that to look at your cost to serve, optimizing that and enhancing margins. If you want to visually think about it, the difference of network density the way we think about it is it’s a rifle shot.
It’s a small-targeted area where we have intense density of customers we serve and obviously optimize how we do that. And it’s not — what type of network density isn’t is a scattergun approach that you would see all over the place. So that’s kind of how we think about network density. Now, let’s play that into the nexAir acquisition. So the headline of nexAir acquisition is performing better than our expectations and forecast. So I feel pretty good about having gone in there. We did have a minority holding in nexAir and we were able to buy out the rest of the shareholders to own it fully now and integrate it back into our system. So to your point, we are going through that process of integration. We are supporting them in their aspirations to grow in the South of the U.S. A very attractive market which we’re seeing a lot of incoming investments, particularly given the near-shoring or re-shoring sentiment that’s there in the U.S. at the moment.
So we’re seeing three benefits. Obviously, there are some integration benefits that we are fully kind of working our way through. In addition to that, we have the opportunity for creating some revenue upside by cross-selling into that existing nexAir network that exists where obviously, density is playing a big role now and being able to go and serve that market. And thirdly, as new investments happened in that space, we’re looking at expanding the network density that exists over there. And to a large extent, wherever we have some complementary opportunities between our stores and theirs, making sure that we’re optimizing and ensuring reach and penetration of the market continues to grow. All in, pretty happy with the nexAir acquisition where it’s at.
Operator: And we will take our next question from Laurence Alexander, Jefferies. Your line is open.
Kevin Estok: This is Kevin Estok on for Laurence Alexander. So you’ve touched on hydrogen. I guess, any sense of how many of those hydrogen projects are insensitive to interest rates? And I guess, how many could be viewed as maybe more likely to being delayed if rates continue to move higher from current levels? Thank you.
Sanjiv Lamba: So I said before and I just mentioned it again, most of these large hydrogen projects and again, I’d emphasize that at this point in time, while I want to consider I want to define these projects as low carbon intensity projects. But for easier definition, blue hydrogen projects, I find are the ones that continue to make good progress. And we are finding that despite the high interest rates and some capital cost inflation in the marketplace as well that there is an economic case to pursue those, particularly given the incentives that come out of the IRA. So there is a lot of policy support for these. At this point in time, we’re not seeing any of the larger projects that we are currently developing for or with our customers and partners, kind of scale backwards in any shape of form.
