John Daniel: Just want to dig into the M&A strategy for a second. As you noted a lot of opportunities are out there. I’m curious, do you see any distinction between expectations from maybe some companies say exposed primarily to gas markets versus those international offshore do is there opportunities to be opportunistic if you will, and just any color there?
Wayne Prejean: Yes, sure. Always getting the expectations from sellers and buyers to align is challenging. But there are some technologies in some companies that we’ve observed that need a good home to incubate either a unique product or maybe to achieve scale that wasn’t further available to them before on our distribution platform helps that. Valuations kind of remain range bound. The bid ass spread is narrow. So I think people are realizing how the industry is functioning today and the activity that’s available to it. So we’re hoping that those valuations become a little more attractive, so from our side.
John Daniel: And then when your margins relative to a number of your OFS peers are better, how do you preserve those sorts of strong margins with the M&A strategy? I mean, are most of the deals you look at with, are they — would they be margin accretive, or how would you, just some thoughts on that.
Wayne Prejean: We kind of have a decision tree and a criteria priority scale where we say, hey, it has to meet accretive value, it has to improve cash flow. It has to be a top tier customer type of product. It has to help us, international, offshore, things like that. But at the end of the day, it has to make a positive contribution to our strategic goals, our strength in our existing core business. Maybe a little moat building and opportunity to strengthen our existing distribution platform. Those are kind of some examples of how we look at acquisitions. We’re not in the mode of just bolting on and smash co strategy where we just put everything together for the sake of scale or growth. There is a very thoughtful and I think an experienced approach to understanding the impact of each and every acquisition or each and every deal we look at.
John Daniel: The final one for me, I think if I heard you correctly, some of the growth CapEx is tied to perhaps an, a development of a new tool. Did I hear correctly?
Wayne Prejean : That’s correct, but it’s commercially active and growing. We’ve got it baked into our guidance this year.
John Daniel: I was just trying to understand like as you bring new product to market sort of simplistically, how long does it take to scale up? Just any type of color on that?
Wayne Prejean : Well, we spent ‘22 and ’23 getting it past this first two stages and now it’s fully commercialized with its own asset team. And number, we’re following a number of rigs and growing month by month. We’ve passed the incubation period and we’re full-scale commercial process. And there’ll be more and more guidance coming on that as we get through each quarter, but it’s looking very positive. Well, any more questions?
Operator: There are no other questions in the queue at this time. I’d like to hand it back to management.
Wayne Prejean: Alright, well, we appreciate everyone’s participation on the call and interest in Drilling Tools International. Like I said before, please feel free to look at our investor presentation on drilling tools.com and we look forward to demonstrating our continued growth and success and improving shareholder value. Thank you.
Operator: Ladies and gentlemen, this does conclude today’s teleconference. Thank you for your participation. You may disconnect your lines at this time, and have a wonderful day.
