Paul Cheng: Yes, I’m just looking at not even just on Brick Spring, but your total system for facility =– that what is a normal average and nice one way we can assume? And then also under that status, if we assume Henry Hub around $4 what will be a normalized annual cash operating cost in your refining system? And what is the sustaining CapEx we can assume for your refining system?
Avigal Soreq: Our quarter — our OpEx was $5.48 per barrel for the system. And this happened with still issues in Big Spring. We spoke about the several things that affected us EUR 0.80 for the unplanned maintenance, $0.7 for the elevated utility cost and the dollar we gave for reliability. What I’m trying to say, Big Spring is probably more like $550 million going forward. The 8.37. So you’re looking at overall OpEx for the system under $5 per barrel. And we think that this is — will happen even with the long term and we have pricing for natural gas and energy costs.
Paul Cheng: Okay. How about sustaining CapEx?
Avigal Soreq: Obviously, it’s a bigger question because there is with turnaround and sometimes without turnaround, it’s the question is the scope of the turnaround. So I don’t think it’s going to — we are going to do a good service by just giving you a number without context. So going back to my earlier comment about the capital. Our commitment is to be very disciplined with capital deployment. Like we demonstrate and that’s what we’re going to do. But it’s very hard to say to pin to a number
Paul Cheng: Okay. Yeah. Understand. Thank you
Avigal Soreq: Thank you.
Operator: Our next question comes from Roger Read with Wells Fargo. Please go ahead.
Roger Read: Yes. Thanks. Good morning. Apologies for joining a little late. So if I’m asking question that’s been asked, please let me know. But maybe digging a little deeper into Big Spring and juxtapose that with the performance at Tyler this quarter, Joseph, I know you were brought in to kind of improve operations, is there a takeaway from what we see at Tyler coming out of the turnaround versus what you’d like to do at Big Spring in the coming, let’s call it, months, quarters, years until its next scheduled turnaround.
Avigal Soreq: Roger, with your permission, I will start and then Joseph will add some comments around it. a is a good way to see how good operations become after turnaround in terms of both MTBF and also capture and that’s something that we obviously can take from one turnaround to another and improve as long as the time goes by. Joseph has a lot of energy at Big Spring and maybe you want to add around that Big Spring. I think we spoke about it,
Joseph Israel: In time of I think the turnaround scope was excellent. It was right. And beyond just maintenance, the team improved the vacuum tower bottoms and allow the better quality of Regio going to the FCC, providing us with better yields and catalyst replacement on the reform was exactly what we needed and we see the results. The rest for the system and mainly for Big Spring is just all about the fundamentals and it’s about the focus on the right things and — it’s the culture and it’s the right people in the right place that we’re leading and the processes and the procedures. These are not costly type of investments. But the efforts are bringing us fruits and allowing us to commit on a much better performance, especially in Big Spring going forward.
Roger Read: Okay. And then just as a follow-up, curious with Krotz Springs in terms of its product yield, I know it’s historically had a little less of a clean diesel yield relative to its total distillate yield. Any changes there or anything you’re seeing in terms of how that product is being able to move into the market?
Avigal Soreq: Generally speaking, KSR is a refinery that basically is on the colonial. So, that’s the deployment, that’s the distribution channel we have. We had some improvements we did, but nothing that was a meaningful discussion. We’re obviously seeing the fruits of our hard labor and the great commitment over there to a great operation and a great safety record and a great yield. So, we are very pleased with KSR, and we see the improvement over time. So, more to come.
Joseph Israel: Yes. The one thing to remember about Krotz Spring, even though it’s a high sulfur diesel, you’re still in the Gulf Coast area, and you have plenty of customers that they see a lot of value in this product in different uses. And the other thing, the crude unit configuration is very special with almost 20,000 barrels per day of jet fuel in the codon it. All-in-all, distillate yield in Krotz Spring is in the high 30s, which will allow them to compete long-term
Roger Read: Okay. Thank you,
Avigal Soreq: Thank you.
Operator: Our next question is from John Royall with JPMorgan. Please go ahead.
John Royall: Hi, good morning. Thanks for taking my question. So, my first one is to follow up on the capital allocation question. You’re sitting today at parent net debt, which you’ve spoken about, which is a great spot to be in. I’m wondering how capital allocation could be impacted by a lower crack environment? And if you’re willing to lever up a little from here, should the environment deteriorate just in the interest of keeping capital returns at a strong pace.
Avigal Soreq: So, John, thank you for the question. We’re going to remain disciplined. Obviously, there is — once we feel — first of all, we want to maintain dividend towards the cycle, that’s one thing we need to check the box. If we believe that the allocation capital to buy back, we will not be able to — we will not be shy to do so like we did in the past, we’ll do that again. And we’re obviously looking at the opportunity that presented themselves in the market. So we have all the toolbox to deploy on the right opportunity and keeping good return to shareholder is a very high priority for us.
John Royall: Great. Thanks Avigal. And then last quarter, you had mentioned just very broadly, you had some very high returning and presumably relatively quick hit projects in refining that you may think about for next year. And I think you touched on it again on this call. And can you maybe just give us some color around what those projects are and just expand on those opportunities a little?
Avigal Soreq: Yes. So we — again, we don’t want to get ahead of ourselves and to give exactly because we didn’t finish the planning process around it and improving them with our Board of Directors. But we definitely have some very encouraging project on the table, and we’ll disclose them once we can. But again, number one thing about capital is disciplined, right, disciplined and return to shareholders. So we’re maintaining very disciplined about the way we deploy capital and want to go ahead good to out of our shareholders. Joseph, you want to add on that?
Joseph Israel: Yes. I will just say that they are all low cycle return type of projects that fund themselves in less than 24 months. They are all about liquid yield recovery and this type of project you will expect us to look very closely.
John Royall: Great. Thank you very much.
Avigal Soreq: Thank you, John.
Operator: Our next question comes from Jason Gabelman with Cowen. Please go ahead.
