Doug Leggate: I appreciate the color, Joseph. Thanks so much. My follow-up, this might actually be for Rosy, but whoever wants to try and tackle it. The trading and the supply and trading contribution has already been addressed by number of my peers. But, I want to ask you about the July movement. I mean on a go-forward basis, is there a different level — a different magnitude that we should be thinking about? Or do you consider what’s happened here recently, including July to be more one-off in nature? Just how do you — how should we think about that going forward?
Avigal Soreq: Hey, Doug, it’s Avigal. So, Joseph was trying to give some highlights around going — how to look at it going forward and the most of the assets over there are sustainable and joint from a niche market, but I’m sure that once you’re with the Joseph answer, it will make perfectly sense. And if not, I’m sure Rosy will love to follow-up.
Joseph Israel: Yes. We want you guys to understand 2Q results, and we want you to be able to model them going forward. And Rosy has all the tools to support you there.
Doug Leggate: All right. Okay. I’ll follow-up. Thanks guys.
Operator: Next question is from Ryan Todd with Piper Sandler. Please go ahead.
Ryan Todd: Hey, thanks. Maybe a question on CapEx to start. I know 2023 CapEx is front-end loaded because of the turnaround work, but are you still on pace to hit your $250 million target for 2023? And then I know it’s a little early, but as you look forward to 2024, how are you thinking about the put and takes in terms of what the 2024 budget may look like?
Avigal Soreq: Yes. So, thanks for the question. We said that the $350 million is the number that we’re at. And therefore, 2024 numbers, it’s a bit early to talk about it, we’re obviously just starting budget season now. So, I’m sure that we will be able to disclose the data on in the process. So, thanks for the great question.
Ryan Todd: Okay. Thanks. And I guess one on the expense side, operating expense and corporate expense were both lower than we expected this quarter. I know you talked some about the G&A trends expected to the end of the year. OpEx back up a little higher on guidance in 3Q. I mean, can you talk about directionally what you saw in second quarter, the trend on operating expenses going forward and how all of this fits within the context of your cost reduction and efficiency goals? How far along are you on hitting those targets?
Avigal Soreq: Yes, absolutely. So, Reuven here, the CFO, will give some highlights around the — what we call internally zero-based budget and then maybe Joseph will let some comments around OpEx. Please Reuven.
Reuven Spiegel: Thank you and thank you for the question. So, during the discovery process, looked at DK and DKL, and we challenged the organization structure — organization structures, and how we can streamline them. By using technology implementation, too many functions, various operation initiatives such as Stream and system improvement, heater health, and maintenance and reliability. In addition to that, we worked on optimizing our transportation segment, trucking specifically. And we divided the execution to three stages, as some of the projects require more preparation and technology implementation, and execution time. Phase 1 was executed in June with most of the impact on the G&A. We’re working on execution on Phase 2 in the fourth quarter and Phase 3 in the first half of 2024.
For 2023, as Rosy said in her prepared remarks, we expect to achieve approximately $46 million in cost savings, a split of 40% to 60% between G&A and operations. And those initiatives plus the one planned for the first half of 2024 will put us on track for run rate of approximately $100 million savings.
