So — and that — the other side of the opportunity here is that those — that legislation all sort of came out like mid- to late 2022 and gave us the opportunity to sort of look at that as more sort of upside than factoring it into the deal to achieve the earnings potential.
Ned Baramov: Got it. And then moving on to propane. Do you think that current unit gross margins in this business are sustainable going forward? And does the pickup in doubtful accounts keep you up at night?
Mike Stivala: I do think, obviously, pricing is always going to be very tied to the direction of commodity prices commodity prices have ticked up now in the January time frame from the average prices in the fiscal first quarter. So there’s still a fair amount of volatility I think what we’re seeing in the marketplace is that all marketers are experiencing the same thing, which is a bit of a challenge with respect to hiring and retaining drivers and service techs and inflationary factors in payroll as a result of the competitive landscape to attract qualified individuals for those positions and the inflationary factors around fuel costs and insurance costs and the price of steel for the tanks that we buy and place at our customers’ locations.
So I think everybody is experiencing a higher operating threshold, and that gives it gives the market sort of the need to ensure that we’re covering those costs through our margin profile, but also ensuring that the customers are getting some of the benefits as commodity prices do come off, but ensuring that we can cover our expenses and the inflationary factors that we face. And I think what we see in the market is that all the marketers are experiencing that same dynamic and are pretty disciplined in their own pricing structure, and that’s created a lot of stability in the marketplace. As far as doubtful accounts, the only thing I would say is we do a heck of a job at the field level in terms of setting credit limits and the upfront credit profile for our customers, not to say that receivable management isn’t a bigger challenge in an environment like this.
We’re certainly seeing our customers challenged with respect to their own household budgets and commodity prices have been elevated. So we have more invested in receivables because of the pure level of commodity prices over the last year. And so we are certainly working with and managing those receivables very closely and working with our customers to ensure that they have the kind of flexibility to manage their budgets and continue to work with us through whatever payment mechanism works best for them and for us. So I would say it doesn’t keep me up at night because I know just how focused our team is on that every single day, but it certainly is a challenge.
Operator: The next question is from Jay Kanive with Tonka Capital. Please go ahead.
Jay Kanive: A lot of my questions have been answered, but I did want to follow up on the Equilibrium deal. What — this is a different acquisition for you. This is a production in commodity price risk type business versus your distribution, logistics, customer service model. How are you going to hedge or look to stabilize those cash flows given that a lot of them are dependent, I think, on California type credits, what is your ability to do that? And how are you going to look to hedge those? And maybe to help us out, what is the current price that you’re getting for your RNG kind of vis-Ã -vis the price that you would get for a standard unit of natural gas?
