Wade Suki: Good morning, everyone. Not to harp on the prior couple of questions on the M&A front, but it sounds like we don’t have to read into this asset. So I don’t read into anything with that. But we’ve talked about this before. We don’t mind maybe walking us through what some of the consolidation in the basin might do for opportunities. We’ve got a big player out here who’s maybe a little bit more strategic minded. How do you think about the opportunities longer term given that backdrop?
Amanda Brock: Wade, are you talking about the consolidation opportunities that are going on between the E&P guys or –?
Wade Suki: Exactly. One big customer in particular is sort of what I’m referring to.
Amanda Brock: Well, trust us, we watch it very closely. It’s interesting in that our customers tend to be consolidated. Our customers tend to be sort of Conoco and Chevron and the larger companies who are dedicated to the Permian Basin and dedicated, particularly to Northern Delaware and allocating a lot of capital to continued growth there. So the recent deals that we’ve seen, the Pioneer-Exxon deal does not really impact us being in the Midland Basin. But our contracts run with the land, and so that means that there is a consolidation. We are not concerned with any contractual impact. And we do believe that being on this great rock with these great customers that this is a tailwind for us. You will see increased efficiencies. People are making acquisitions to grow, and this is great rock. Bill, you look at this a lot. Would you want to bring anything else?
Bill Zartler: I think the consolidation is actually good for us. We have focused on the larger customers and longer transactions. And so as the roll up, there’s been several levels of consolidation. Obviously, there’s the big mega deals and then there’s been a lot of smaller consolidation among the formerly private equity-backed companies that have gone public and put themselves together and formed up some great mid type companies. And as those do, I think we — they look more strategic. We end up rolling anchorage with them, and their activity sort of swings more than the activity of the majors. And so that’s why we’ve been really steadily growing is because we’ve had a proportionate share with the majors versus those that are in the middle of transactions.
Wade Suki: Great. Thank you. Just switching gears a little bit to the kind of the reuse [indiscernible] going on right now, what kind of milestones or maybe guidepost should we be looking for over the next few months, kind of data related?
Amanda Brock: Yes. We expect sort of in Q1 to begin to talk to you guys about what we are seeing in the brines and the work that we are doing in understanding the valuable constituents that maybe in trained in our produced water that we can also begin to see if there’s additional revenue stream there. And insofar as the actual pilot that we are underway with right now we will keep everybody informed as to how the technology results are coming through as we work with Exxon and Chevron and Conoco. So I think you will hear a lot more in ’24 about what we are doing and what we see as potential upside next year.
Wade Suki: Perfect. Thank you so much. I appreciate it. You have a great day.
Operator: Your next question comes from Jeffrey Campbell with Seaport Research Partners. Your line is open.
Jeffrey Campbell: Good morning. Alliance participant ExxonMobil does not appear to have much acreage in Aris’ core state line area even accounting for the recent Pioneer acquisition. I just wondered how this affects their participation in the beneficial water reuse effort.
Amanda Brock: Jeffrey, our focus with the beneficial reuse is really sort of agnostic as to where acreage is, and they are very committed to that consortium because finding what we can do with beneficial reuse is actually not just a Permian issue, it’s just everywhere. But in terms of their acreage, they have significant acreage with Poker Lake and the other acreage positions in Lea and Eddy. So in fact, and they are a great customer for us and will continue to be a great customer as we grow our position with them.
Bill Zartler: Yes. I think a fundamental nature of the business. The beneficial reuse may be along the state line but our pipeline network that’s moving water around extends far up into Eddy and Lea County and actually does surround Exxon at Poker Lake and James Ranch.
Jeffrey Campbell: Great. Thank you for that color. Between technology commercialization and regulatory approval, I’m talking about the reuse — beneficial reuse, which do you regard as more challenging?
Amanda Brock: I think at this point, we are very focused on the regulatory approvals that will be needed, particularly in New Mexico. We’ve seen a lot of progress made with the Rail Road Commission and other regulators in Texas. The issue in technology is technology is there to treat this water. What we are trying to do is to make sure that it is robust and that it is cost effective. So a lot of our focus is on bringing down the cost of treating this high TDS water to the lowest cost we can accommodate with what we have to achieve in terms of dealing with the constituents.
Jeffrey Campbell: Okay, great. And if I could just one last one. Regarding the effort to commercialize high value materials and minerals in your brine stream, will this require a significantly different technical approach than the beneficial use effort? And can given water volumes be exposed to both efforts or are they going to have to be discrete to one effort or the other? Thanks.
Amanda Brock: No, it is a process. The beneficial reuse pilot is focused on treating water to make that water — let me just use very simple terms, to clean it to a certain standard so it can be used for a certain purpose like ag, discharge or whatever you’re going to use it for. When we’re focused on the brines, we are more focused not on treating it to make it clean, but how can we treat to extract from that water the highest concentrate of whatever mineral or valuable material you’re trying to extract. So it’s slightly different, but it is a process. It is just more of a different approach when it comes to the extractive side.
Jeffrey Campbell: Yes. And if you think about the beneficial reuse, you’re removing as much good water as possible and you’re concentrating the constituents in that heavier brine. That heavier brine and the concentrated brine allows you to more cost effectively potentially extract those other minerals.
