So I think the two leading indicators for you are as you see us investing in CapEx and OpEx because that’s an indicator. We’re seeing green shoots. And the other is certainly would be an announcement that we have with respect to being awarded a contract or several.
Martin Malloy: Thank you very much. I’ll turn it back.
Westy Ballard: Yes.
Operator: Thank you. We will take our next question from Jeff Grampp with Alliance Global Partners. Please go ahead.
Jeff Grampp: Good morning guys. Thanks for the time.
Westy Ballard: Good morning.
Andy Puhala: Good morning.
Jeff Grampp: Stick – sticking on the LNG bunkering opportunity there, it’s – so I think it’s starting to materialize here in a really interesting way in 2024 and beyond with the new ships being commissioned. Hoping to get an update there just in terms of kind of how you guys see that playing out for the company just big picture standpoint. And then from a contracting standpoint, does that market operate differently than how most of the business is done today from a size and duration standpoint? Or how are you guys thinking about kind of pursuing that opportunity as it relates to the contractual aspects of it?
Westy Ballard: Yes, both great questions. I think when you think about the first question, you got to really think about really what’s that addressable market and the perspective we have on that. And so what we’re really looking for is we’re looking for as sticky a revenue base as possible. And so more specifically think about those vessels that are making ratable and routine calls into port and they need fuel. So I think cruise ships, think some of those car carriers, those car carriers coming out of Asia and Europe, they’ve got to deliver floor plan models to these auto dealers in the U.S. So they’re making fairly predictable routine ports of call, I think container ships. Those are all three likely candidates categorically speaking for us to be thinking about.
And then I think also we want to own our backyard. We’ve got infrastructure already in place in close to the Gulf of Mexico. That’s not really as much a container ship or a car carrier, but you do have cruise lines coming in at the port of Galveston, but also it’s a large chemical and tanker market for us to be really excited about as well. So those four categories, and if you kind of follow those ports that’s kind of where we’re thinking about the infrastructure. Now I will caveat that with – with no – no port is the same, each port in each jurisdiction, each state has its own kind of unique permitting and regulatory environment, but rest assured. We’ve been doing this for a few years. And so we’ve got a pretty strong technical and engineering and legal capability on our staff.
We’ve got memorandums of understanding across most of the Gulf of Mexico ports. We’ve operated in California. We’ve operated on the East Coast. So we have a very strong appreciation about how to get licensed and approved in those markets. But those are the markets that make sense to us that kind of ratable, consistent sticky revenue base. I think when you think about size and contract, the center of those contracts really – really is varied. We said and announced that we did a six month contract that that completed in the quarter, but also these contracts could be a year, 2, 3, 4 years. There is no real specific model right now just given the nascent nature of the industry. But it stands to reason that if people are going to spend large numbers of capital investment for this small infrastructure that’s got heavy demand, many are going to want some guarantees and offtake.
