Sunil Sibal: Okay. Understood. And then one kind of operational one for me, it seems like in Permian NGL volumes were a little bit weak sequentially. And I was curious, ending more towards the end of weather issues there. And then in terms of the fixes expansion, if you could update us on the contracting there?
Sheridan Swords: Yes, on the Permian just kind of the drop sequential in the Permian is really weather. We had the impact of weather out there. And one thing we noticed in the Permian, they are not used to weather. And any time they get any kind of weather, it takes them a little bit more to get back up and going. So, we saw some weather impact the first quarter was a big reason for the volume decrease. As we think about contracting going forward on our West Texas pipeline expansion, it is going as we had planned. We continue to contract more volume on that. We are right where we think we need to be as we continue to go forward. We are going to continue to leverage that into the future for more plant connects and to feed our transportation and fractionation business.
As we have said earlier, we already have contracted two plants that will be coming on this year. We have another one that’s expanding. And recently, we have actually signed up some more people as well to bring more volume onto the system. So, like I said, we are very comfortable where we are with the contracting on that system today – on that expansion. And the expansion is on time, on budget, coming up in this first quarter 2025.
Sunil Sibal: Understood. Thank you.
Operator: Our next question comes from Neel Mitra with Bank of America. Please go ahead.
Neel Mitra: Thanks for taking my questions. I had a couple of questions on the guidance increase. So, first, it seemed like the GMP rate was $1.21 an Mcf, which was a little bit higher than the high end of the range of $1.15 to $1.20, which is the guidance. Is that something that we should roll forward, or is that something that occurred with maybe MVCs in the first quarter? And then second on that part, should we expect kind of a linear increase in volumes in the Bakken, or should we expect another weather downturn in 4Q in terms of your budgeting?
Sheridan Swords: Neel, this is Sheridan. First thing on your increase on the earnings on the fee rate, a lot of that is driven by our inflationary escalators that are coming in, and to a lesser extent, volume coming from certain customers that may have a different fee structure in there. And yes, we do think that will continue going forward that fee rate. On the volume cadence coming out of the Bakken, it can be a little bit lumpy as we bring on compressor units and everything else. We will sometimes will have some big volumes coming in. We do always budget for winter weather in the first quarter and – in the fourth quarter and the first quarter. But as you saw in ‘23, the fourth quarter did not have any weather and all the weather showed up in the first quarter. But we spread it out over the two quarters in a budgeting standpoint, but we know it doesn’t all show up evenly across those quarters. It usually concentrates in one quarter or the other.
Neel Mitra: Got it. And then I wanted to clarify on the AI theme. I know this is still very early innings. But curious, I wanted to follow back up on kind of the opportunity you see there in North Dakota with the advantageous weather temperatures, etcetera. Are you seeing opportunities from the wellhead to move lines to CCGTs, or more so from CCGTs to data centers? And is this kind of geographically concentrated with your opportunities within your NGL footprint in the Bakken, or are you seeing things outside of the Bakken and perhaps the Permian and Mid-Con as well?
Walt Hulse: Well, first of all, you are not going to take it out of the well hit because the GPMs or the gallons per thousand of liquids that’s associated with that gas is just too high to tie it in back there. So, you are going to need to get downstream of a plant. And I would also tell you that that’s a theoretical scenario at this point, and that’s something that we will be exploring in the future with multiple different players. It could happen in any one of our basins. It’s just that it’s a little more advantageous where you can locate one of these things, where you get some really good kind of lower natural gas prices. And you got a lot of natural gas supply and the weather actually is colder, you have more kind of heating degree days.
So, therefore, it lessens the cooling load that you are meeting on these AI facilities. So, the thing I would probably say again about AI, more to come. We will have more updates on these in the coming quarters. But again, I don’t think it’s necessarily going to be material in the short-term.
Neel Mitra: Prefect. Thank you.
Operator: The next question comes from Keith Stanley with Wolfe Research. Please go ahead.
Keith Stanley: Hi. Good morning. First, just a follow-up to Neel’s question, but on the Rockies NGL bundled rate, that was up nicely to $0.30 in Q1. What drove that higher? And is that a good run rate for the balance of the year?
Sheridan Swords: What drove that – Keith, this is Sheridan. What drove that rate is less incentivized ethane that came out, so that rate is going to depend a lot on how much incentivized ethane we come out because obviously, we are bringing that out at a lower rate. But that $0.28 to $0.30 is going to be maybe even a little higher than that, depending if we get volume continue to ramp up and we have to manage capacity on Elk Creek through backing out of ethane for C3+. You could see it go a little bit higher there, but it’s going to be in that range.
