Mike Pearl: Yes. To be totally honest, this is Mike. Thanks for the question, TJ. I wouldn’t put buybacks in like any sort of like near-term concern. In terms of leverage, it’s — we’re trending towards the target — the initial target of 4x, and we have a pretty good crystal ball in terms of how we’re going to get there. So I wouldn’t dial in any sort of line in the sand in terms of distribution changes relative to hitting certain leverage targets. We’re comfortable with seeking 4x, 4.5x, then the 4x and then going there under if we can but keeping distribution changes in the back of our mind at all times.
TJ Schultz: And then on the preferred?
Mike Pearl: Yes. What — is there a question? What was the question?
TJ Schultz: I was just — is there an expectation on conversion or redemption?
Mike Pearl: Well, that’s going to be up to EIG in terms of their optionality and so we really can’t comment with respect to what their motivations are relative to the terms of the preferred.
Operator: Our next question comes from Robert Mosca from Mizuho Securities. Please go ahead. Your line is open.
Robert Mosca: Hi, thanks, everyone. So I was just hoping that we can get an update, maybe the latest, on some of your new orders. I think there were 64 that were previously disclosed that would kind of be put into service this year. Are you guys eyeing any potential additions beyond that?
Eric Scheller: Hey, this is Eric Scheller. Thanks for the question. I think we’re always in contact with our customers. We’re looking at the market demand. Eric’s talked about moving up and down depending on the signals. Right now, I think we’re comfortable with what we have on the book.
Robert Mosca: Okay. Great. And are you guys providing CapEx guidance? I didn’t hear the number referenced, but maybe if you could frame how we should think about it directionally compared to 2022.
Mike Pearl: Yes. So this is Mike. I would — we’re going to file our 10-K today, and I would look in the MD&A section to — for what we talk about in terms of growth CapEx.
Robert Mosca: Okay. And maybe just one last follow-up. I think in your 2023 guidance bullet points, you kind of referenced working capital adjustments that could cause cash flow from operations to deviate from other cash proxies. I’m just wondering if there’s anything in particular that you’re expecting this year or is that just kind of a normal course disclosure.
Mike Pearl: That’s absolutely normal course. There’s no way to predict the ebbs and flows of working capital. Therefore, we don’t guide in that direction, but it’s nothing —
Robert Mosca: Got it. Fair enough.
Mike Pearl: Yes.
Operator: . Our next question comes from Selman Akyol from Stifel. Please go ahead. Your line is open.
Selman Akyol: Thank you. Good morning. Couple of quick ones. So you talked a little bit about gross margin, and I think sequentially, it was lower. But I’m just sort of thinking about next year and the guidance you’ve put out there. Can you talk a little bit about your assumptions on that? And I mean I’m hearing pricing coming through but still having some inflationary pressures as well. So just sort of wondering what’s embedded in your guidance for that.
