Tom Ciccone: Sure. Yes, we’ve disclosed it, and you’ll see that in the 10-K that comes out later today. We – the direct discount that we sold it for was 6.5%. When you factor in all the other administrative fees that we incurred, it’s a little bit – it’s almost 8% is what we’ve – the overall discount factor. So we took a December Q4 charge of $1.1 million, which represents the discount on all of the ’23 credits that we’ve earned. As part of our agreement, we’ve also sold all of the ’24 credits, and we’ll be monetizing those on a ratable basis in ’24. So that discount will remain the same throughout the balance of 2024. So after ’24, we do not have an agreement to sell those assets yet. So that will be something we look into midyear.
Sameer Joshi: Understood. So the $7 million and the $6.5 million are sort of part of the same agreement. It’s just that you received $6.5 million last year and $7 million in February.
Tom Ciccone: Yes. That’s just how the timing worked out in terms of the cash settlement, yes.
Eric Blashford: Sameer, if I could go back to – if I could ask – add some color to your question about the PRS, you did – Tom talked about revenue and profitability, but you asked about the acceptance. It’s been very well accepted in the marketplace. That’s why we’re coming up with these multiple models to fill out the family, which supports different flow rates and different applications. So we’re very excited about that. And I think that market, we estimate to between – for just the PRSs, to be between $100 million, $150 million, part of a larger $700 million market in the overall compressed natural gas virtual pipeline. So we do see room to grow there. And it’s been very well received so far, which is why we’re expanding the line.
Sameer Joshi: Yes. No. It is great to see that Industrial Solutions that you’re offering is able to replace existing solutions so quickly. I think that just speaks to the PRS technology, quality of that technology.
Eric Blashford: Yes, thank you.
Sameer Joshi: That’s all I have. Thanks. Thanks, Sameer.
Eric Blashford: Thanks, Sameer.
Operator: Our next question is from Justin Clare with ROTH MKM. Please proceed with your question.
Justin Clare: Hi, guys. Thanks for taking our questions here. So first, I just wanted to start on the visibility you have into 2025. Just based on the conversations you’re having with wind tower customers, are they planning for a significant increase in demand in 2025 relative to 2024? And are you seeing preparations for that? And what’s the potential that they could look to secure capacity some – potentially in the near term here so that they’re prepared for 2025.
Eric Blashford: Well, I’d say that the customers that we’re speaking to are bullish, they’re cautious, but they’re bullish on ’25 versus ’24 and ’26 beyond that. So I think there are active discussions, they are planning. Some of the capacity has been secured in long-term agreements like we have with our customers, but others – but those long-term agreements can certainly be expanded and added to. And those are the discussions that are active.
Justin Clare: Okay. Got it. And then you mentioned some of the factors that are impacting the demand for wind here, high rates, inflation. Wondering if you’re seeing cancellations? Or is this just delays? And then wondering what it takes for many of these projects to kind of get back on track? Or are PPAs needing to be amended and renegotiated higher for the economics to make sense. And then also, are we waiting for treasury guidance here? Is that a key factor that is potentially holding projects back? Maybe you could share a little bit about that.
Eric Blashford: Sure. We haven’t had – and speaking with our customers, we haven’t heard that, that final 10%, that bonus, you think you’re talking about, Justin, with the IRA has had any impact on the timing. At least we haven’t heard that. If it has, it certainly hasn’t risen to the conversations we’ve had. But the customers are pretty open when it talks about inflation pressures, interest pressures, infrastructure, interconnection queues. Those tend to delay projects. We haven’t had any cancellations, but I know that there has been some projects or customer projects have been pushed to the right because I think the customers are waiting where they’re potentially evaluating one project site over a different project site because of interconnection queue or the timing thereof.
So I answered your question. I still feel that customers are bullish. We’re all excited about the IRA and the impact. But again, in an inflationary environment with interest rates still high or higher than they’d be desired, I think that’s causing the pause or temporary pause in some projects.
Justin Clare: Got it. Okay. Okay. And then you did mention – so the earnings profile for 2024, expected to be more back half-weighted. And it sounds like that’s actually not the wind business that’s expected to pick up, but your other businesses here, so Gearing, Industrial Fabrications. So I was wondering if you could just speak to that a little bit more. What end markets are driving the anticipated uptick in orders? And is that really across Heavy Fabrications, Gearing, Industrial Solutions? And then maybe you could just speak to oil and gas. Is that part of it. Do you see the oil and gas order flow picking up here?
Eric Blashford: Yes. Good question. Thank you. Regarding – let’s start with Gearing. Steel is strong. Coal pulverizers are strong. Cement is strong. The Industrial, the core industrials, material handling are strong. Oil and gas is predicted to remain soft. At least through 2024, we think. We’re seeing some green shoots, some customer orders are coming through and some quotes are coming through, but we’re cautious on that. So we think the demand from Gearing is going to come from these other markets. And we’re also getting into other markets that are not Gearing that are more machining. I mentioned that this 9100 new quality certification we’re going after, which will allow us to get into aerospace and defense. That’s a market we think is untapped certainly for us, and we think it’s attractive for us because we have the capabilities.
