Andres Lopez: And with regards to 2023, price negotiations are largely on, not just in Europe but across the whole market.
John Haudrich: And to your second question, where do we stand in the pricing process is as most people are familiar, we — 17% of our business in Europe is open market or at least annual agreements and those tend to get reset at the time of the year. We are largely through that but not complete. And so we continue with that effort but it’s — like I said, it’s pretty advanced.
Operator: We have a follow-up question from Gabe Hajde from Wells Fargo.
Gabe Hajde: Just 1 quick follow-up. I think I know the answer to this but there’s been some recent headlines in the news on another case tangential to the litigation that you guys have a deal with in regards to asbestos. And I just want to make sure, I mean, you guys have — that was a kind of a bilateral agreement amongst all parties and that stuff is in terms of funding the trust and something that can’t be reopened.
John Haudrich: Yes, yes. Just to be clear that the Paddock Chapter 11 case is closed. That included a consensual agreement. We funded the trust. We have the channeling injunction fully in place, so that Chapter 11 is closed.
Operator: Our last question today comes from Mike Leithead from Barclays.
Mike Leithead: A nice quarter. Real quick on the CapEx outlook. I appreciate, again, we’re still just in the beginning of 2023. But should broadly ’23 be the high watermark for CapEx so we should see it step back down into ’24? Can you just kind of give us a rough sense of trajectory there?
John Haudrich: Yes. So there’s 2 aspects that are driving obviously the CapEx. It’s the strategic CapEx investment and then well as the maintenance level. So as we had indicated in the materials, our maintenance activity is getting up to this low 400 range after being below that for the last few years due to supply chain issues and things like that with COVID and all the disruptions. So we do think that that is probably a fair level. It could ebb and flow in different levels from one period to the next but it’s probably a reasonable place to be. And then on the expansion side, we have our $630 million announced program We spent $190 million of that in 2022, should be around $300 million this year and then dropping off to the tail end of that $150 million based upon our best estimate of timelines now.
So that would suggest that, that crests and goes forward. Of course, then we’ll look at any opportunities going forward but that’s what we have announced at this particular time.
Mike Leithead: Great. And maybe just 1 quick follow-on to that. As we just think about Slide 11 kind of your capital allocation priorities and a potential return to returning value to shareholders, kind of when should we think about — I mean, if you hit everything you laid out today, you’ll be under 3x by the end of this year. Just when do you think you’d want to start talking more about that or flushing that out more?
John Haudrich: Yes. So I would say that the second bullet point there that is we’re trying to work to this glide path to 2.5x leverage. And so I think the emphasis on return of value to shareholders will probably pick up as we get comfortable about our ability to hit that number. Obviously, the economic situation right now, the uncertainty, everything like that, we’re trying to see where things will play out in particular the back half of the year and flow through from that. But I think once we get comfortable about our ability to knock that out in another year or 2, or a couple of years or something along those lines, I think then we’ll be able to profile more the return to shareholders.
