Gregory Heckman: I might add. The one thing that we have spoken about is how the businesses are so different, with us being much stronger in the processing and then much stronger on the origination, storage, handling and distribution. So if you do have a market that moves more into a contango or a carry, that does benefit where you have more storage. So I think that when we talk about the diversification in the crops we handle and in the asset footprints and the geographies, that would be one of the things that we’d be thinking about depending on when we close and what the environment looks at, when we talk about the outlook at those times.
Manav Gupta: Thank you. My quick follow up here is it looks like the discretionary CapEx for 2024 is going – probably going to be somewhere between $720 to $840 million. Help us understand where this money is being spent, the kind of returns and when do we start seeing these projects come online so we can start giving you the benefit of earnings associated with this CapEx. Thank you.
Gregory Heckman: Sure. Yes. So we embarked really last year and the year before on some pretty large multi-year projects. And most of those things like our build out with our Chevron joint venture, our plant in Amsterdam, our new oils plant, our specialty proteins plant in Indiana, all those things, our plant in India, all of those things have been multi-year. While India is coming on later this year, most of those are still going to be in build out phase through 2025. So we really expect them to start contributing in 2026 and we target a mid-teens return on average on most of our projects. Some could be a little lower, some could be higher. So that’s the CapEx side. And then certainly on the M&A as we announced CJ Selecta, that we’re hoping to close later this year.
Beauty of that one is it’ll be immediately accretive when we get that one executed and closed. But I wouldn’t expect too much contribution in 2025 on those because they’re really going to be coming online late in the year and it takes a little bit of time for commissioning. So most of those will start contributing in 2026. And then on the M&A side, we continue to look at a lot of smaller opportunities, not anything of the magnitude of a Viterra or a CJ Selecta necessarily, but there’s a lot of smaller bolt-on opportunities that we’re working as well that we’ll keep you updated on.
Manav Gupta: Thank you so much.
Operator: The next question is from Ben Theurer with Barclays.
Ben Theurer: Good morning, John, Greg. As well congrats from my side.
Gregory Heckman: Thank you.
Ben Theurer: Just two ones to follow up. So one actually associated a little bit with the M&A and the contribution of it, capital allocation in general. Can you just maybe frame to the audience how you think about the buybacks left over for the Viterra deal? Because if I remember right, you said you wanted to have done about half of it of the $2 billion that was announced until the close. So that would leave you with, I guess, some roundabout $400 million, just that we can think about is that something you target for in the first half and then aside from it with that contribution, and you’ve laid it out nicely right now on the 2026 and the returns, et cetera, if we would have to go back to some of like the mid cycle EPS framework, I remember a few quarters ago, you’ve laid this out and I think you’ve set back then like $850 on a base business, but with all the buybacks and accretions and projects and M&A, et cetera, it was more like a $10 and $11.
Does that still hold, even if we’re thinking about around nine for 2024, if these projects would be around.
Gregory Heckman: Sure. So we’ll start with share buyback and the $400 million. I think our expectation right now is we will execute that in the first half of the year, and we committed they doing at least that $400 million by close of the transaction. So we expect to do that, and then we’ll see from there as we go forward. With respect to our outlook for 2026 and the $11, I think we still feel very positive with that and right on track. While the CapEx has maybe been delayed a little bit, from a timing standpoint, we got a little bit of a late start and some of these costs went up and we went back and took a look at projects. We’ve actually picked up pace on the M&A side a little bit. So we feel very good about our trajectory against that $11 plus by 2026 and have no reason to change it at this point.
Ben Theurer: Okay, perfect. And then quick follow up as we think about the guidance for this year and maybe the magnitude of changes that you’re foreseeing right now. I know, and Ben brought this up early on about the visibility and I know about the challenges 2Q onwards. But as you look at it today, where do you think the biggest downside versus 2023 is? Within, call it maybe, of a key for processing, merchandising, and refined and specialty oils.
Gregory Heckman: I think if you look at the big flags, the big put and takes that, we’re thinking about it at the highest level, of course, the geopolitically and weather, right. And so while we’re getting a more balanced S&D situation globally, we’re kind of one weather event from really tightening things up, and that could bring some volatility back. And then the other offset is around at a high level. You think about demand, and so lower prices should spur more demand. That’s what we’ve seen historically and then it’s really how quickly we see that and even if you take an anecdote on the food side, we’re seeing all of our food customers, innovation projects, which had spent the last two years being cost reduction type programs, are now really focused on growth.
