Eli Jossen: Okay. I look forward to that. And then maybe just as a follow-up. In the release, you also touched on your recent divestiture of non-core assets that kind of allows for capital redeployment into higher-return organic projects. Maybe just a little bit more color on what those types of projects might look like.
Amanda Brock: Certainly, I mean we are seeing a lot of projects right now, particularly in our core Simon and Northern Lea County area. These are just going to be additional projects working with our customers where we expand our system to capture additional volumes at very attractive rates.
Eli Jossen: Okay. Thanks again guys.
Amanda Brock: Thank you.
Operator: Thank you. Our next question comes from the line of Don Crist with Johnson Rice. Please proceed with your question.
Don Crist: Good morning Amanda and the team. You made big strides on connecting your facilities to the grid last year. Can you remind us where you are in that process? Are you over halfway in connecting everything to the grid now? And what kind of savings do you expect this year from those efforts?
Amanda Brock: Good morning Don. And we are more than halfway. And as we told you, Steve is going to have the exact numbers for you.
Stephan Tompsett: Yes, Don. Don, when we originally announced that we had 19 locations we are going to connect, at this point, we have got 16 of those done. We do have two additional facilities we have added to the list, so there is five done – five remaining out of that 21. And at this point, we are mostly waiting on Xcel, the regulated utility to get there. So, we are in the queue, but we are at the mercy a little bit but we have made significant progress. On the recycling facilities, we do have another two locations there. So, well over the halfway mark, but we will see some incremental margin improvement this year from those.
Amanda Brock: As you know, Don, we indicated that we hope to achieve $7.5 million savings by actually connecting all of those systems. And we finished the year with more to go and actually achieving $7.6 million in savings.
Don Crist: Yes, it’s a great progress. And Amanda, if you will indulge me just a little bit. From where I sit, I am asked a lot about OFS consolidation and M&A in the light of E&P consolidation. And my answer to investors are the water industry in general, especially in the Permian, is kind of ripe for M&A given the large amount of private equity on that side of the business. From where you sit, not saying that you are going to do a lot of M&A. But from where you sit, do you see that industry as ripe for consolidation as we kind of move through ‘24 and into ‘25?
Amanda Brock: Great question, Don, I am going to let Bill on for that because we are having this conversation all the time.
Bill Zartler: Yes. I mean Don, the market is fairly fragmented. There is a couple of larger players out there, but the fragmented players do and will need to be consolidated. I think that our focus has really been on making sure that what we do is truly accretive to our business. We have such great long-term contracts and customers that it’s hard to evaluate those in light of where we are valued today and using our equity in anything that may be dilutive in any form or fashion. So, we do think the industry is ready for some level of consolidation. The challenges around the Delaware Basin versus the Midland Basin and landowners and their ability to extract value in these complex systems or at least integrated systems makes it more challenging, but we are in the middle and constantly evaluating all of the opportunities to consolidate what we think should be, over time, consolidated.
Don Crist: I appreciate the color. Thanks again.
Amanda Brock: Thanks Don.
Operator: Thank you. Our next question comes from the line of Selman Akyol with Stifel. Please proceed with your question.
Selman Akyol: Thank you. Good morning all. So, I just want to start with, in your opening comments, you talked about how higher spot volumes were helpful. And so maybe you could just talk about what really drove that. And then as well as we are two months into the first quarter, how you saw that cadence progress as we moved into the New Year.
Amanda Brock: Yes. So, we mentioned the higher spot volumes. We were able to bring those in. And what we have talked about is when there is availability on our system going out to our customers and bringing volumes in on an interruptible basis. That’s as it relates to disposal. What we were really referring to is bringing in additional water solutions business that’s a much shorter-cycle business. And you are looking constantly for opportunities where somebody may need additional water for completions. And so in Q4, we mentioned bringing in some volumes from Q1 ‘24 and also being able to sort of win additional business. It’s just very fluid, and we are well positioned with geographic reach and the number of recycling locations we have to actually win additional spot business.
Selman Akyol: Understood. Thank you for that. And then also, I think you referenced sort of 1,360 barrels of skim oil, and then your guidance is 1,300. So is that just conservatism, because if you expect volumes to ramp across your system, we naturally expect that to move higher as well.
Amanda Brock: So, it’s a level of looking at what we tend to get over time. When we mentioned the 1,036 skim oil barrels, we also indicated that it seemed to be higher as a consequence of flow back. We also had some benefit of price. And so we do see some lumpiness in those skim volumes. So, we are just estimating that over the year, we will sort of have steady state at that 1,300 barrels a day.
