Stephen Gengaro: Good morning. A couple for me. I’m not sure you can comment on this or not, but Don was well-liked. Any comment on just kind of we get a lot of questions about this as far as financial controls, everything’s strong with the company. I mean, we think it is, but anything you can add just to address that?
Bryan Shinn: Sure Stephen, and I certainly understand your comment there. We can’t really provide any additional information as we don’t talk about employee matters publicly, but I would refer everyone to the 8K that we filed. And so if you look at that document, we said specifically in there that there’s no disagreement or issues with a company’s financial reporting, accounting policies, procedures, estimates, judgments, etcetera. So I think you can infer by that that there’s no issues of that sort.
Stephen Gengaro: Okay. Thank you. So when we think about the oil and gas business, can you just give us a sense for where Guardian stands? Are we seeing it in the numbers yet? And when do you think we’ll start to potentially see a more significant impact on price per ton or contribution margin per ton, however you want to phrase it?
Bryan Shinn: So that’s not really in the numbers much at this point. We have some commercial units out, and we have a lot of units out under trial. And I think there’s a couple of big end users who are looking at potentially taking this technology across their entire system. So I think we’ll have some success there. And as we look into 2024, I believe we’ll definitely see some meaningful bumps there. Just to be realistic, when you think about the offerings we have, though, obviously the sand piece is number one in terms of margins. Sandbox is number two. And so this would be kind of third behind sandbox. But I still think it’d be something that will be meaningful, and we’ll be able to talk more about that as we hopefully get some contracts inked up here in the coming months for Guardian.
Stephen Gengaro: Thanks, and then just one final one. Just your sort of current view on track sand supply and demand and what you see as you sort of think about 2024.
Bryan Shinn: So I think we’ll definitely see some additional capacity come online. One of our competitors has announced five million tons coming online, and we’ll see a few more mobile mines come. I think one of the interesting dynamics around the supply side, though, is that a lot of the new capacity is focused at the Delaware Basin. And for us specifically, we have most of our operations on the Midland side of the Permian. And so I believe the capacity that’s coming online in 2024 is going to have much less impact on us just because of where our mines and where our customers are located. And actually, we’re seeing some big operators switching their focus for 2024 and beyond more towards the Midland side of the Permian. And again, I think that will be a positive for us.
I think demand next year is relatively flat, all in. Just given the appetite of our customers to sign contracts, I’m pretty bullish about demand overall, and especially some of the operators who are moving towards the Midland side. That’s definitely an advantage for us.
Stephen Gengaro: Excellent, thank you. Thanks for the color.
Bryan Shinn: Thanks, Stephen.
Operator: Thank you. Our next question comes from the line of John Daniel with Daniel Energy. Please proceed with your question.
John Daniel: Hey Bryan, thanks for having me.
Bryan Shinn: Good morning, John.
John Daniel: This might be a dumb question, but can you remind me what your exposure is within oil and gas to Canada? And if you have much, speak to the outlook. Step made a comment about record volumes expected in Q1. So just your thoughts.
Bryan Shinn: Yes, so we don’t sell into Canada. We used to do a little bit there, but we don’t do anything to the best of my knowledge in Canada right now.
John Daniel: Okay, so thanks for reminding me. I apologize. And then I think you said something about, and I think I heard it correctly, the desire of some of the larger E&P customers as they’re consolidating to work with larger suppliers and vendors, and that makes sense. I’m just curious, how does that desire potentially translate into the need for more consolidation within your space?
