Ron Mittelstaedt: Yes. We’ll try to provide you as much clarity as we have and our experience. So the slope event, we will have remediated in the quarter. So that will be an under 90-day. And when I say remediating solved, we will have the landfill reopened and the slope stabilized and begin backfilling into a new area. So in that way, the event will be contained within the quarter. There will still be waste. We have to relocate in the first quarter of next year. But that’s not really anything you would see that’s just sort of using lateral airspace and then we will go up later. So that one’s relatively simplistic to do. And this was not a large failure. There was no equipment, no personnel, no anything involved. This was really a side slope failure with waste moving laterally some. It just happened to be near our road, which is one of the reasons we closed the site on a temporary basis.
Tyler Brown: Okay.
Ron Mittelstaedt: The elevated temperature event is a little bit harder to predict right now, Tyler, but here’s what I will tell you. We’ve been monitoring this since March or April of this year. As temperatures were rising, we really didn’t start seeing any significant generation of additional leachate or odors until really August is when that occurred. And so now, as we sit here at almost the end of October, we believe that we’re just probably about a month away from being at the fulcrum point and starting to come down in some of the certainly, at least, the odor component, the leachate will – generation will go on for a while, but I think we will have a lot better clarity in February. These events – these reactions can go on for some period of time, sort of think of it as it’s going to go on.
It takes time for the temperature to come down. As it comes down, the leachate generation comes down. As it comes down, the odor comes down, and it just sort of continues to diminish until it stops. So it’s a matter of getting both the leachate and the methane out to slow the reaction fully, it’s an organic reaction. So – but it should sort of peak at some point, we believe here in the first quarter or early next year.
Tyler Brown: Okay. Perfect. And then Mary Anne, couple modeling questions. So I may have missed it, but what was the average commodity price in Q3?
Mary Anne Whitney: So Q3 OCC average was $88.
Tyler Brown: $88. Perfect. And then I appreciate the margin walk, but was M&A dilutive? I would have thought that Arrowhead would be dilutive just given all the transportation revenue flowing there.
Mary Anne Whitney: No. So M&A was not dilutive. It would came in line in the aggregate.
Ron Mittelstaedt: In the aggregate, yes. There’s a nominal dilution. You are correct on the margin for Arrowhead because of the transportation at this point, as we march forward that will reverse.
Tyler Brown: Okay. So we should expect some dilution.
Ron Mittelstaedt: I would tell you de minimis. If it’s 10 bps, that’s probably a fair number.
Tyler Brown: Okay. Perfect. And then what is the revenue contribution in Q4 from M&A if I could?
Mary Anne Whitney: $50 million.
Tyler Brown: Perfect. Okay. Thank you guys so much.
Ron Mittelstaedt: Thanks, Tyler.
Operator: Thank you. And our next question today comes from Noah Kaye with Oppenheimer. Please go ahead.
Noah Kaye: Hey, good morning. Thanks for taking the questions. So I’m asking to help clarify this by investors. So I just want to make sure we’re all clear, please. Can you clarify that the outlook for 2024 is based off of the current FY2023 guidance, which does not include the $20 million potential impact for 4Q?
Mary Anne Whitney: That’s correct. That’s consistent with the way we’ve approached it, yes.
Noah Kaye: All right. Appreciate that. Maybe if you can put some color around the RNG capital outlays, you said $125 million to $150 million for 2024, you would called out previously a total CapEx spend of $200 million through 2026. So, A, making sure there’s no change there in the total expected spend. B, remind us what you’re tracking to spend in 2023, and then maybe confirming the implication that you expect to be most of the way through that spending program exiting next year.
Mary Anne Whitney: Sure. So for 2023, maybe $35 million or $40 million is the way to think about the spend. And so that tells you the vast majority of it is next year in 2024.
Noah Kaye: All right. Excellent. Last question, we’ve gotten this from folks that the volumes associated with shedding seem higher relative to the level of M&A than perhaps if you look back four or five years in the past. And wondering if that is a function of just a lot of the legacy contracts and these acquisitions you’re doing recently being underpriced for the inflationary environment. Is there something else we should read into? And then really, I guess the question is at what point in the future would you expect the shedding associated with some of this M&A to start to abate?
