We are hopeful that as the year develops, those utilities will actually perform better or have less issues than what we’re projecting, which will allow us the opportunity to grow at a faster rate. For us in our Power Delivery business to set a mid-single-digit growth rate going into next year is a really low number. It’s one that is lower than we would have suspected. And then when you throw on to that some projects that we’ve won that should help that. I think we’re being really conservative as we think about where they are from a capitalization perspective and what they need to do to fund projects. And I’d say it’s exactly the same answer on our Clean Energy business as well.
Marc Bianchi: Okay. Thanks, Jose. The other one I had relates to Oil and Gas. So you’ve got MVP helping in the first half of 2024, but talked about overall revenue decline for the year. So, it would look like the second half is quite a bit below sort of the $2 billion run rate that I think you talked about as a steady state level for that business. So can you talk about, is it in fact that you do see the steady state run rate now quite a bit below $2 billion, or is that another maybe source of conservatism?
Jose Mas: No. Look, I think we’ve said for a while that the right level for that business was $1.5 billion to $2 billion. We’ve been feeling more comfortable that it’s going to be closer to the higher end of that. We also knew that MVP would present its own set of challenges in that it would start, it would be a lot of revenue in particular periods, and it would go away. As I think about 2024, obviously, the first half of the year is going to be a little bit stronger because of MVP. We’ve got a lot of projects that we’ve previously talked about that are filling in 2024. So, we actually feel really good about 2024. I think the first half will be higher than it was in 2023, the second half will be slightly lower. Again, I think that’s based on the projects we know today, I think, there’s some opportunities for some potential pull-in.
But there’s also projects that we know about that are going to start in 2025. So, I think it’s going to be a much more consistent year versus the ebbs and flows that we’ve had this year or quite frankly, that we had last year as well in that business.
Marc Bianchi: Okay. Thank you very much.
Jose Mas: Thank you.
Operator: We will take our next question from Brent Thielman from D.A. Davidson. Please go ahead.
Brent Thielman: Hey, thanks. Good morning. Jose, just one more on the Clean Energy margins. I guess the question is does the profile of the projects in the backlog or under LNP support the margins you are hoping to eventually achieve for that business once that work gets underway? Or do you need to work through that first before we start to think about something sort of nicely above the mid-single-digit range?
Jose Mas: If we could hit the volume profiles that we’re talking about, the margins associated with our pricing in bids definitely allows us to achieve that, and we actually think it potentially allows us to achieve more. So we don’t believe we have a pricing issue. We – as we look at it on a project-by-project basis as we’ve been delivering projects this year, project performance at the job level has been good. It’s been the absorption of costs that’s been more of a problem. So as we get revenue levels to where they need to be, we start getting into the margin profile, not even that we’re talking about today, but over time, what we’ve laid out previously on our longer-term outlook.
Brent Thielman: Okay. And I guess I’ll ask this question on 2024 maybe another way. I mean the preliminary view, sort of mid- to high single-digit growth for next year. To what degree does that included executing on through the renewables projects inherited from IEA that you’ve seen sort of defer thus far this year?
Jose Mas: Brian, I missed a slight part of the question after – can you repeat the question because it cut out for a second?
Brent Thielman: Yes, Jose, I guess the question is just as you think about that 2024 preliminary view for growth. To what degree does that include assumptions for the work from IEA that you’ve seen deferred so far this year?
Jose Mas: Well, what we’ve done for 2024 in Clean Energy is we’ve kind of gone back to the start, right? And we took every project regardless of where it came from, whether it was IEA or our legacy business, and we’ve risk-adjusted it, and we’re focusing on projects where we think have very little issues to proceed in 2024, and that’s how we’re building our plan. We’re not abandoning any projects. We’re not abandoning any customers to the extent that we can pull them in, we will obviously do that. But we’re really trying to build the plan based on a combined work schedule of jobs that we think have the highest likelihood of going and are performing well.
Brent Thielman: Okay. Thanks, Jose.
Operator: [Operator Instructions] We will take our next question from Adam Thalhimer from Thompson Davis.
Adam Thalhimer: Hey, good morning. Thanks guys.
Jose Mas: Good morning, Adam.
Adam Thalhimer: Jose, to what extent are higher rates and macro uncertainty impacting bidding?
Jose Mas: Well, I don’t know that they’re impacting bidding as much as they’re impacting customers’ ability to ultimately perform on projects as a concern in bidding, right? So I think – what it does to our bidding strategy is it really makes us get a very good understanding of where the customer is, what the potential of that job on a go-forward basis is and their ability to execute. And to the extent that they can meet that from a cost perspective, right, we’re building in our current costs as we know them, we’re building in whatever we think may change from a labor perspective or materials. A lot of that gets locked in a bid time. So from a pricing mechanism perspective, we’re not overly concerned. We’re more concerned with making sure that the projects that we’re bidding and the time that we’re spending bidding on projects is well served relative to the potential of that project moving forward.
Adam Thalhimer: Okay. So, I was kind of more thinking about just the pace of bidding or the flow of bidding or the amount of projects that people are giving to look at for 2024?
