Cole Couzens: Awesome, thanks. That’s great color. I’ll turn it back.
David Cherechinsky: Thanks, Cole.
Operator: All right, thank you. [Operator Instructions] Our next question comes from the line of Jeff Robertson from Water Tower Research. Jeff, please go ahead.
Jeff Robertson: Thank you. Good morning.
David Cherechinsky: Good morning, Jeff.
Jeff Robertson: Dave, can you talk — you all have talked before about the line of sight you have on well pad construction type projects. When you look at R&G and CCS, do you have a longer line of sight from customers over what kind of business you might be able to generate in those areas in 2024 and even 2025 as construction starts to pick up and people take a long-term view of those opportunities?
David Cherechinsky: Brad?
Brad Wise: Yeah, Jeff, good morning. We talked a lot about the well site. That’s certainly been DNOW’s kind of bread and butter. We provide all the pipe, valves and fittings for the gathering systems, and also the fabricated equipment and pump packages to separate oil, gas and produce water, and move those to the midstream sector. As part of looking at carbon capture, we’ve been involved with a number of our customers as they use carbon dioxide, CO2, for enhanced oil recovery. We’ve been involved in some of those projects. Now we’re starting to see other technologies come to market like direct air capture and we partake in some of those projects. I think we’re kind of early here and the cycle is really kind of looking at a standardized footprint going forward.
I think our customers are still doing a lot of engineering and FID work in this area. So I think that remains to be seen. But what we like about it is it’s our current customers that we currently have agreements with, terms with. We have the technical aptitude to support our customers as they go through this process. So we really like that aspect about the CCUS type market. And then the R&G market, we — previously we have provided pipe, valves and fittings as players move into that space to connect to different farm systems, whether it’s dairy or swine farms, to a gas processing facility to process that gas, to be able to sell that product to the midstream. And then with our EcoVapor acquisition December ‘22, it gave us a technical solution to sell into that end market.
And so we feel like that’s unlocking more opportunities for us, not only in the vast number of RNG sites that are currently being explored and developed, but also additional products that we might be able to sell into the RNG as we get more experience with that gas processing side, as well as the standard pipe, valves and fittings that go along with it. So we like those two sectors. It’s a great growth environment for us looking into the future and we’re looking to expand where we can in both of those end markets.
Jeff Robertson: Are there acquisition opportunities that would support the Process Solutions business that would give you more penetration into those types of opportunities?
Mark Johnson: Jeff, yeah, I would say there are. We’ve looked at a few deals. They range from technology to equipment packages that are — that could append or be sold in connection with the current technical and engineering capability that we have. And then we also look for, certainly one of our acquisition strategies is to look for more exclusivity of territory or manufacture of products in a certain geography like we do on our pump package and our pump lines. So we’re always looking for accretive margins on M&A. We’re looking for some exclusivity where we have dedicated opportunity to sell products into certain geographies or certain end markets. So the answer is yes.
Jeff Robertson: And last question, Mark. You talked about WSA, which has been running just shy of $100 million for the last couple of quarters. As you look at the 2024 business, is that — do you think that’s a good number for as you look out into next year — [per] (ph) quarter?
Mark Johnson: Yeah, I think a lot of it, Jeff, will be dependent on the trajectory of growth into 2024. I can tell you we’re committed to ensuring that we maximize the productivity of that WSA line. And so being able to hold it, $97 million this quarter down from $98 million — the $97 million, $98 million looks good into the fourth quarter. Really look at what it could be going forward depending on the trajectory of growth next year. Certainly willing to invest in people and facilities and things that grow that middle line if we’re going to achieve the top line accretion that we want. So a little early, but in February we should have a better view with you there. Thanks, Jeff.
Jeff Robertson: Thank you.
Operator: All right. There are no further questions at this time. Mr. Brad Wise, I turn the call back over to you.
Brad Wise: Okay, thank you everyone for your questions today and your interest in DNOW. We look forward to talking to everyone on the fourth quarter and full year 2023 earnings conference call in February of next year. Have a great day and I’ll turn it back to the operator to concludes the call.
Operator: Perfect. This concludes today’s conference call. You may disconnect.
