Mike Stivala: Yes. So I’ll take the CapEx question first. So I think, first, I think you have to reflect on sort of the excess cash flow generating capacity of our core propane business. And and what we’ve proven over the past couple of years in relatively normal weather patterns. The business can generate sort of after propane-related somewhere in the $70 million to $100 million range depending on weather. Currently, we have visibility to the expansion efforts and projects that we’ve committed to so far and the cadence of that cash — the cash needs for that CapEx, we have visibility to anywhere from $10 million to $50 million growth capital for the rest of this year, depending on how some of the projects continue to develop and the cash needs for 2023 versus some of the capital shifting into 2024 as well as depending on how fast and what kind of opportunities that come our way in the joint venture to deploy additional capital.
So, I think if you think about it as we have $70 million to $100 million or so of excess cash flow with current visibility of $10 million to $50 million. We still have some dry powder within our existing cash flow generating capacity to do additional CapEx as opportunities arise. As it relates to the balance sheet, I mentioned or Mike mentioned in his opening remarks, that obviously, this was all funded with debt, this particular acquisition. I think when — if you think about our history on acquisition funding, we do typically like to be closer to 50-50 on debt and equity financing, given what we’ve — the focus that we’ve had over the past several years in really delevering the balance sheet and getting it down in the 3.6% range at the end of fiscal 2022, really did allow us to take on additional leverage for something that was highly strategic like this Equilibrium acquisition.
And so if you think about it, we referenced in our opening remarks that in the past three years, we paid off $150 million. And so that really did reload the balance sheet to be able to take on the additional $200 million or so of debt associated with this deal and still not really damage the balance sheet on a pro forma basis, without any earnings expectation right today in terms of the balance sheet. If you just look at the leverage and the trailing 12 EBITDA and is on pro forma the earnings potential, it’s still below 4.5 times levered. And if you pro forma the potential earnings for 2024 and beyond, it will get closer to four. So I think relative to this acquisition, I think the steps we took over the past several years to continue to strengthen the balance sheet put us in a very advantageous position to be able to add some leverage to allow the business to get to its run rate capacity to then naturally bring leverage down.
And so, I think as you think about profiling us going forward, we still have a similar strategy for our leverage. We’re always going to be focused on strengthening the balance sheet because as Mike said in his remarks, we plan for the potential for record warm-type winters in the propane industry. We plan for being able to be very opportunistic when the right deals come our way. I think we’ve demonstrated a pretty good discipline in our acquisition approach. And so, I think you’ll see us continue to work towards bringing leverage back down below four so that we can — we always have sufficient capital to be opportunistic. And as equity markets perhaps improve in the future, there may be an opportunity for us to bring in some capital on the equity side to offset some of the leveraging aspect of this particular acquisition or maybe future acquisitions.
