Sheridan Swords: Michael, this is Sheridan. I think what we’re talking about there is that, as we explained before, the legacy system that we bought from Chevron, we’ve been looping that system from West Texas all the way into the Fort Worth area where we tie into the Arbuckle II pipeline. When that loop is completed, which is in our West Texas project, we can segregate out the legacy system, the system we bought from Chevron and use it for a different product. And that is one of the things we’re looking at in synergies, and we will continue to evaluate as we go forward. But that gives us an opportunity to be able to move more product back into the Permian, whether that be refined products, where it gives us opportunity to move crude out of the Permian into the Gulf Coast or leave it in NGL service.
That’s probably more of a longer-term type synergy that we have right now as we continue to look at that. But we do think that is an opportunity going forward to be able to leverage our three liquid pipeline streams in that pipeline, what we use it for.
Michael Blum: Okay. Got it. Thanks for that. And then just one question on the Bakken. So it seems like the Bison Express pipeline project is moving ahead. So I wanted to just get your thoughts on that project. Does this reduce ethane recoveries volumes for you? Or ultimately should we think of this as sort of a tailwind because ultimately, it opens up the potential for more natural gas production in the basin, which obviously would lead to more associated NGL production?
Sheridan Swords: Michael, I think what this project does is make sure that we have enough natural gas takeaway out of the basin, we wouldn’t want that to be a constraint on the producers up there well, I do not think it has a big impact on our incentivized ethane program that we’ve had going on there because today, there is enough natural gas production coming out of the basin. So I think it’s going to allow the producers to continue to grow and have a surety of natural gas takeaway without hurting our ethane recovery benefits that we have today.
Michael Blum: Great. Thank you.
Operator: Thank you. And our next question today comes from Spiro Dounis with Citi. Please go ahead.
Spiro Dounis: Thanks, operator. First question just maybe on the export opportunity. I don’t think that was a synergy necessarily when you announced the deal, but something you may’ve been better positioned to do post Magellan. Just curious where that stands now and then expanding into exports is kind of high on the priority list of things to do post close?
Pierce Norton: Spiro, this is Pierce. And I’ll let Sheridan kind of fill in some of the details here. But we’ve said all along that what Magellan brings to us is the expertise to operate docs and to build docks and to just really understand the dynamics of marketing across docs. We don’t expect to necessarily turn any of those docs into anything other than what they are currently doing. But we do believe that global demand will continue to grow both in crude and both in probably refined products and liquefied petroleum gas and propane. So we’re going to continue to look at that. And as the market dictates and as we learn more, and if we get some customers that either on the producing side or the takeaway side that wants to take space across stock, then we’re going to continue to look at that. So Sheridan, you got anything to add?
Sheridan Swords: The only thing I would add to that, Pierce, is that with the addition of the Magellan employees, we have much more confidence in both our engineering and operation capability since that is what they bring to the table since they are already operating marine docs and built marine docks.
Spiro Dounis: Got it. That’s great color. Thanks for that, guys. Second question just going for the Bakken. I guess we’re hearing increased talk of peers, maybe looking to develop LNG infrastructure in the region, too. You’ve obviously got a pretty good stronghold there. But just curious how you’re assessing the risk of kind of new competition in the basin going forward?
Sheridan Swords: What I – this is Sheridan again. What I would say on competition coming in the basin is what we’ve said for many times is that on the G&P side, we have 60% of the market share, and that feeds our NGL pipeline. So we very – feel very secure about that volume. And then on the third-party NGL customers, we have long-term contracts with them, and that also gives us a surety that we will be able to maintain our volume coming out of the Bakken and be able to capture the growth going forward.
Spiro Dounis: Great. That’s all I have today, guys. Thank you.
Operator: Thank you. And our next question today comes from Tristan Richardson with Scotiabank. Please go ahead.
Tristan Richardson: Hey, good morning, guys. Appreciate the comments on what you’re seeing so far early in the merger. Just curious, like we’ve replaced the concentric circle with a telescope, but in that telescope, you talked about mid to high-single-digit dividend growth. Curious about capital allocation now that the merger is closed and thinking about balancing project opportunities with allocating free cash for repurchases and dividend growth to be competitive with peers.
Walt Hulse: Yes, well, Tristan, as I just mentioned, our debt metrics are coming in line even quicker than we had expected. We continue – we think that direction will continue. And that’s going to give us significantly greater flexibility as we move forward to think about capital allocation. It’s going to give us plenty of capital to take advantage of high-return projects as they become available and think about ways of returning value to shareholders. And we’re going to lay that out as we get into ‘24 as we see forward where our debt metrics are headed and we will give you more clarity as we get into February.
Tristan Richardson: Appreciate it, Walt. And then maybe, Sheridan, where do you see sort of this GOR theme, particularly in the Bakken going long-term, particularly as producers consolidate – operator consolidation drives producer efficiency, but just where – what’s the end game or in terms of where do we top out from a GOR perspective long-term?
Sheridan Swords: Tristan, that’s a good question. And we’ve had that talk to our producers about that as well. And they don’t know where the top end of it is. What we do know is as wells continue to age, the GOR continues to grow up – grow. Now we do see some up and down in the GOR overall for the basin because as new rigs come on, depending on where they come on, they may have a starting point of a lower or higher GOR. So overall, it makes it move around. But every well up there as it continues to decline, the GORs continue to rise. And so that gives us a lot of confidence that even in a flat crude environment, which crude is growing right now, but in a flat crude environment, we are still going to see some pretty good growth in the gas volume in the basin.
