So we think both from their operational capabilities, which we’re enjoying and the macro fundamentals around gas is just not really a compelling reason to liquidate in this environment.
Gabriel Moreen: Thanks, Alan. And then maybe if I can just ask a follow-up on the ERP spend at Transco, and I recognize it’s – Transco’s got an awfully big rate base to it, but as you think about having to file the rate case at Transco and its upcoming, how do you think about ERP spend within that context? Does it matter at all with the rate case coming up as far as accelerating it or refraining from doing that?
Michael Dunn: Hey Gabe, it’s Michael. Yes. We just put in service at Station 180 replacement. We’ve replaced 14 units there with two new state-of-the-art turbines, and we’ve got three more stations that will be very similar fashion coming on before the test period closes on the rate case. And so that’s the anticipated bin curve there, similar to what we did on 180. And its really highly dependent after that on the rate case outcome and whether we get an emissions tracker, which we would certainly hope to achieve on the Transco rate case, similar to what we were able to do on Northwest Pipeline. And that would really drive our decision making in the near-term on spending beyond the 2024, 2025 timeframe. And we layer that into what our next rate case tranche looks like on the Transco system and really try to balance that spending curve where we think those rate cases are going to line out there in the future.
But obviously hoping to go into this one with an emissions tracker, modernization type tracker coming out of the negotiated settlement that we hope to achieve with the Transco customers and we’ll see how that turns out.
Gabriel Moreen: Got it. Thanks, Michael.
Operator: We’ll go next now to Neal Dingmann at Truist.
Jake Nivasch: Hi, this is Jake Nivasch on for Neal. Just a quick one on cap allocation. I think you guys might have covered it, but I just want to make sure that I heard it correctly. Just in regards to distribution growth, I mean, you guys are pretty well covered even after that 5% boost this year. Are you looking – and you might have covered this already, but are you looking to accelerate that at some point in the near-term? Or just curious how you guys are thinking about that?
Alan Armstrong: Yes, really good question. I would say that we’ve said all along that we expect this business to generate in the 5% to 7% growth on EBITDA and that we would expect that to keep our dividend somewhat in line with that. And so I think as we think about it forward AFFO per share really is the number I think to keep your eye on that’ll drive our decisions on dividend looking forward. And so I think that’s a really good number for you to focus on. But yes, we certainly have plenty of room, plenty of capacity and in terms of that dividend increase, and it’s just going to be driven by what we’re seeing as a kind of a long-term sustainable AFFO per share is really what’s going to drive our dividend decisions.
Jake Nivasch: Got you. Okay. That’s it for me. Thank you.
Alan Armstrong: Thank you.
Operator: And we’ll go next now to Robert Catellier at CIBC Capital Markets.
Robert Catellier: Hi, Rob Catellier, I just wanted to follow-up on capital allocation this time on M&A. So understanding that you’ve been quite active in the last 18 months or so. Can you comment on the company’s appetite for additional acquisitions and maybe on the state of the M&A market understanding that maybe MountainWest was a little unique. So just how the low commodity prices and higher interest rates are impacting bid of spreads?
Alan Armstrong: Yes. I would say that that’s not completely clear to us yet. It’s a good question and you would think it would ultimately have some impact, particularly people that are exposed to floating rates that, that, that certainly would drive some transactions. But I would say we haven’t seen great evidence of that occurring just yet. And I would just say we’re going to be like we have been hanging around the hoop looking for things where we have a unique competitive advantage that drives really strong accretion and value to our shareholders. And so far that patience has paid off really well for us. And I don’t see any reason we would change that patience to keep kind of looking for those things that are very unique and that we have a unique competitive advantage on.
And so that’s what I would tell you to expect more of, but I’m not sure that, that I yet see the market being flooded or depressed with assets yet from people that might be sitting on floating rate capitalization. So we’re very fortunate where we stand from both a debt capacity and an interest rate standpoint without floating rate exposure. So we’re really excited about where we stand, but there may be some businesses and assets that get a little bit damaged and have to look for transactions to solve their problems, but that’s not evident to us just yet.
Robert Catellier: Okay. That was the color I was looking for. Thank you.
Operator: Thank you. We do have no further questions this morning. Mr. Armstrong, I’d like to turn things back to you for closing comments.
Alan Armstrong: Okay. Well, thank you all for the great questions this morning. Thank you for your continued interest in the company and we just want to reiterate how excited we are about our continued growth on top of growth here in the business and our abilities to demonstrate our resilience this quarter and we appreciate your confidence in our company. Thank you.
Operator: Thank you again. Ladies and gentlemen, I will conclude The Williams second quarter 2023 earnings conference call. I’d like to thank you all so much for joining us and wish you all a great day. Goodbye.
