I think our real fertile grounds, as we’ve mentioned earlier, more synergy opportunities there, more opportunities for higher utilization, better capture rates and lower costs, which is what we’re going to go after. And then the last point, Doug, is yes, we are really pleased with how our Lubes and Specialty business has performed over the last 3 years. We’ve been working very hard to improve the profitability of that business. And I’m pleased to say that we set up a record last year. In fact, it’s the third year in a row that we’ve set a record on Lubes and Specialties earnings, and we’re pleased to see that improve. With that, we still think there’s more out there, and we’re going after that. That’s another testament to our focus on operations excellence and margin improvement.
But with that better performance, more doors open. And yes, we can consider more strategic opportunities. I’d say, in the short term, we’re focused on improving that business. But I’d say, in the midterm, there may be more opportunities to look at for our lubes business to maximize shareholder value.
Operator: Your next question comes from the line of John Royall from JPMorgan.
John Royall: You called out a heavy maintenance year in refining with your full year guide, and the 1Q throughput guidance looks like pretty heavy maintenance early in the year. But as we think about how maintenance might progress throughout the year, any guidance in terms of maybe first half versus second half or just anything more granular timing-wise?
Tim Go: Yes, John, this is Tim. We put out the guidance of 500,000 to 530,000 barrels a day in the first quarter. I think Atanas mentioned that in the prepared remarks. That is a combination of lingering winter storm effects as well as the turnaround impacts in the first quarter. That, of course, is a lower utilization than what we normally run. We do believe if you look at the second quarter and on that we’ll be back into the mid — I’m sorry, into the low 90% utilization type range as we get through the first quarter turnarounds. We’ll still have some more turnaround work throughout the year, but the impact on crude rate and the impact on utilization is clearly front-end weighted here in the first quarter. So if you think about low 90s utilization, that’s really back to normal in terms of what we typically produce in those — in the rest of the year.
John Royall: And then just wondering your view on Brent-WTI, given your exposure there. It’s remained relatively wide even with the SPR release ending. Can you talk about the drivers there and how you think that can progress in 2023?
Tim Go: Yes. There’s a lot of drivers, of course, in the Brent TI spread. But I think the one that seems to be taking the biggest impact right now is just the high freight rates, dirty freight rates globally. I think the Russia-Ukraine conflict has created even more pressure on shipping rates. And what you’re seeing, we’ve always said that the Brent TI spread is basically determined by shipping rates of TI into the rest of the world. And we’re seeing that play out with the higher freight rates now, keeping that Brent TI spread wide. We’re also pretty happy with the WCS/WTI spread that we continue to see. Now it jumped up in the $25, $30 discount here in the fourth quarter, and it’s come off that since then. But we still are fairly bullish that a $20 or so WCS/WTI spread for the rest of the year feels pretty good to us.
And then the last thing that I’ll just point out is A&S has been pricing at a discount to Brent here over the last few months. That has a big impact in our Puget Sound Refinery. We think that’s associated with the higher A&S crude that we’ve seen production-wise coming out of the North Slope, and we think that’s going to continue to advantage our P&W location.
Operator: Your next question comes from the line of Neil Mehta from Goldman Sachs & Company.
