Preferred Shares
Q: Active conversation on preferred shares?
A: Management confirmed they are actively discussing options with the preferred shareholder to eventually remove it in a way that benefits common shareholders and minimizes dilution.

Balance Sheet
Q: How will you use the strong balance sheet?
A: They highlighted a record low leverage of 0.4x and robust liquidity, aiming to leverage this strength for strategic capital allocation including M&A and shareholder returns.

Margin Outlook
Q: Gas Utilities margin recovery timing?
A: Though Gas Utilities remain slightly dilutive on gross margins, efficient high-volume operations are expected to gradually enhance net margins.

Destocking Timing
Q: Which inning for destocking issues?
A: Management described the destocking process as being in the 6th or 7th inning, with most customers nearing the finish though some issues might extend into next year.

Capital Spending
Q: Will customer capital spending increase next year?
A: With a 13% quarterly improvement in Gas Utilities, they expect customer capital spending to rebound in 2025 with mid-single-digit growth and long-term increases of 4–6% annually.

M&A Outlook
Q: Is M&A more attractive now?
A: They remain open to M&A opportunities, balancing the focus on a simplified capital structure and strong balance sheet, noting that the deal flow hasn’t radically changed from previous periods.

Power Demand
Q: How will power demand impact your business?
A: The team anticipates robust growth in natural gas demand—driving gas-fired power plant and LNG infrastructure investments—with projections of 15–20% growth by 2030 that benefit their upstream and PTI sectors.

Project Push-Outs
Q: Are DIET projects delayed by higher interest rates?
A: Management acknowledged that higher rates have delayed project timelines, yet emphasized that most projects will simply shift to 2025 rather than being canceled.