But over the long-term, those cash flows will be returned to shareholders. And so we want to do it in a way that is steady across the cycle. As Mike said, we don’t want to be pro-cyclical. And by the way, we haven’t, right? Our track record shows that over the past nearly two decades that we’ve been able to buy actually below what the market average price has been. So the intent is to, yeah, we’ll be a little strong balance sheet depending on commodity prices and margins and how strong our operations have been. But then over time, the cycle will correct and then we’ll continue buying back shares. We’ve said we could have a higher buyback rate right now. We’re sizing it at a level to maintain it for multiple years across the cycle. That means there’ll be a time period where we’ll be buying back shares off the balance sheet, and we’ll lever back up closer to that 20% to 25% guidance.
Thanks, John.
John Royall: Very clear. Thank you, Pierre. And just a follow-up on the TCO project. I was hoping you could give an update on the CPC terminal operationally and where that stands. And then what type of discounts are you seeing at that terminal right now? I think you called out a few quarters ago or maybe two quarters ago that it was $6 or $7 per barrel. I imagine that’s come in a bit. So where is that discount today? And how is that terminal operating?
Mike Wirth: Yeah. So last year, there was probably more news than there was impact on a variety of issues relative to the pipeline and the terminal. There was work going on in the late third and into the fourth quarter on the two of the three single point mornings. All that work is done. All three SPMs are operational today. There are no constraints on loading. There are no constraints on throughput on the pipe. Despite a lot of the things that people heard and worried about last year, the pipeline was very reliable. Our production was impacted less than 10,000 barrels a day over the course of the year. It was all a few weeks in March and April. And so everything there is running very smoothly now, and we don’t see any constraints.
Discounts have come in a little bit on CPC. In the immediate aftermath of some of the sanctions and changes related to Ukraine. We saw a trading range that was like $4 to $10 below dated Brent. And before the conflict began, it was plus or minus $1. We’re seeing kind of $1 to $3 discounts now. So maybe not quite at pre-invasion levels, but not as deep as they were immediately afterwards. And given the overall flat price environment and the way it has strengthened the impact to CCO is relatively muted.
Operator: We’ll take our next question from Roger Read with Wells Fargo.
Roger Read: Yeah. Thank you. Good morning.
Mike Wirth: Good morning, Roger.
Roger Read: Hey, good morning, guys. Just looking at, let’s call it, refined product demand. You talked about gas demand earlier. I’m just curious, as you look around the world, we’ve got positives moving away from COVID on a year-over-year comparison and then everybody’s got high expectations for the China reopening. I was just curious, as you look across your operating base, what you’re seeing there?
Mike Wirth: Yeah. Overall, Roger, gasoline demand, I’ll start there. Still just a touch below pre-pandemic levels, fourth quarter of 2022 maybe 2% or 3% below fourth quarter of 2019. If you look at diesel, demand is pretty flat versus pre-pandemic. Jet recovering, but still below and so at the highest level, we’re kind of still flattish to recovering from pre-COVID. I think that’s why there is concern that as China’s economy really does come through and return to a more normal level, that we could see increased demand start to pull on these markets again. You’ve seen announcements out of China about their intention. We see international flights and air travel now being scheduled at much higher levels than we’ve seen before long.
