Q – Jeff Robertson: Hey, Michael..
Michael Skarke: Jeff, sorry…
Q – Jeff Robertson: I was going to say does the pricing policy? You mentioned pricing volatility and obviously, affecting operator budgets. But this pricing volatility and consolidation it, is having an impact on the type of conversations Select has with its customers over duration of contracts or how contracts are structured?
Michael Skarke: Not necessarily. I don’t think that’s the case. I mean there are implications for consolidations for sure. We’re — if you look at our customer base, we work for everyone, but we have a bias towards the larger operators. And so consolidation is something that we certainly welcome because we believe scale seeks out scale and a lot of times, larger operators are ones that are really looking ahead kind of a long-term solution. And so it allows us to have a very productive conversation around, an expansive or extensive economic. Fixed asset expansion excuse me, or an existing or expansion of our existing assets. And when we do that we obviously need a partner to underwrite it. So. we’re having those conversations. I think with more consolidation. there will be more of those to be had.
John Schmitz: Jeff, one thing that I’d add to Michael’s, I mean there is consolidation. There is movement. We’re all watching it. We’re feeling it, but what we’re very focused on is how we can do something that will bring value. And when we bring value, we want to make sure that we share that value properly. We believe there is value in these systems and we prove that and continue to find opportunity to prove it. And we also bring there — we believe there’s real value in being able to — pull those services through that contract just like Michael talked about and the system we’re putting on the north side of Lake Sakakawea, water transfer will be part of that overall solution which is a value to that acreage in that customer.
Q – Jeff Robertson: Thanks. And the last question you — just on the some of the adjusted EBITDA outlook for 2024 that you mentioned, does that outlook only includes the three acquisitions you announced in the first quarter? Or are you factoring in the expectation of other acquisitions and how you’re talking about 2024 adjusted EBITDA?
John Schmitz: No Jeff, that’s purely the acquisitions we’ve made. And then the projects, we’ve given here now in our overall growth CapEx for Water Infrastructure we have a number of projects under discussion. If they all come to fruition that CapEx number would move higher, if none of them do than that would move lower. I certainly don’t expect either of those outcomes there. But we do we do anticipate that a number of conversions, of new infrastructure projects that we look forward to announcing in the next few quarters. Most of those that are announced over the next quarter or two, will have some impact in 2024.
Q – Jeff Robertson: Thank you.
Operator: Our next question comes from the line of John Daniel with Daniel Energy Partners. Please proceed with your question.
Q – John Daniel: Hi. Can you hear me okay.
John Schmitz: Hi, John.
Q – John Daniel: Just one question on. I’m curious, if you’re starting to see are any signs of distressed opportunities from a consolidation perspective particularly in places like the Haynesville?
John Schmitz: Yes, this is John. I would say, there’s the — the acquisitions and the opportunities have ingredients in them in various ways. But you know, the downturn or the activity, traction that we’re seeing right now is definitely had a positive effect on those conversations. Yes, as we go forward. But, we I’d also tell you that a lot of these assets that you’re watching us do, they really fit into our system extremely well and their value is either getting diluted by these systems or their value is could be enhanced, but they got to be part of the system and that’s driving these conversations as well, John.
Q – John Daniel: Okay. That’s all I had. Thank you for including me
Operator: Since there are no further questions at this time, I’d like to hand the call back to John Schmitz for closing remarks.
John Schmitz: Thanks to everyone for joining the call and your interest in learning more about Select Water Solutions. Look forward to speaking, with you again next quarter.
Operator: Ladies and gentlemen, this does conclude today’s teleconference. Thank you for your participation. You may disconnect your lines at this time and have a wonderful day.
