Atanas Atanasov: John, thanks for your question. This is Atanas. With respect to — forgive me, with respect to our synergies, we continue to optimize and integrate our portfolio and we’re capturing additional synergies, for example in our lubricants in Sinclair itself, through continual integration, both in terms of systems back offices that we’ve already realized, continuing to capture incremental value across the value chain. But we’re also looking at synergies in our existing segments, such as Lubricants. For example where to Matt’s point, we’re continuing to integrate our base oils portfolio and finished and specialties through some of the systems upgrades. On the IT side, we’re able to automate and processes and optimize resources, for example, procurement is a good example.
In HEP, as we said earlier, beyond the synergies related to having two public companies streamlining processes and systems. So these are the types of value enhancing synergies that we’re continuing to go after this year. With respect to a specific number, we’re not prepared to give one yet, but I’d say we’ll probably be able to provide more clarity as we go further into 2024.
Tim Go: Yeah. And I would just add on top of that, John, that we had good capture in the West in the fourth quarter, and I think that continues to reflect some of the additional synergies and some of the additional improvements that we’re able to find just quarter-over-quarter. And as you continue to watch that capture, I think you guys will continue to see that reflecting the opportunities that we’re finding and capturing.
John Royall: Great. Thank you. And then the next one is, I think, for Atanas. Can you talk about returns to shareholders into this year? Should we think about just the 50% payout target or any reason, it could be more or less. And then in terms of the form of the buyback, maybe you can also speak to sales from the Sinclair’s versus open market purchases and any expectations there.
Atanas Atanasov: Sure. Thank you for your question. With respect to shareholder return expectations for 2024, first of all, again, as we always, we want to reiterate that we’re 100% committed to our capital return strategy to our shareholders. We have the 50% payout ratio, long-term payout ratio as our target. But our view is that 2024 is another above mid cycle year. And to the extent that this dynamic prevails, we’re not shy to exceed that. As you can see, last year we’re at 74% payout ratio. And we will remain consistent in our diligence to keep returning excess cash to our shareholders. With respect to the form of the buyback, again, returning cash to shareholders through buyback and dividends is top priority. And we’re open to both markets and REH Co., purchases and we have done both. And as we’ve demonstrated and that dynamic will continue this year.
Tim Go: Yeah, John, and I’ll just add again. The dividend increase that we announced last week. Just continued commitment to our goal of shareholder returns and increasing shareholder returns. So that’s contributing to that. Look, we said last year that we can’t speak for the REH Co., family that owns Sinclair, but they put out in their 13D that their preference would be to continue to sell shares directly to the company when they have desired to do so. Our preference is to buy those shares directly from them. And so as long as that continues to be an opportunity for us in 2024, we’re going to take full advantage of it on both sides to continue to do that. We do think, as I mentioned before, we’re bullish on 2024. We think it’s going to be above mid-cycle.
We think that the seasonality is starting to turn, as we talked about, not just on the Mid-Con, but we’ve seen inventories and cracks recovering in the Rockies as well. And that’s consistent with what our overall view is and what the market is going to be. We think ‘24 is going to be another good year for us and going to allow us to return excess cash to our shareholders on behalf of the last few years.
John Royall: Thank you.
Operator: Your next question comes from the line of Joe Laetsch of Morgan Stanley. Your line is open.
Joe Laetsch: Hey. Good morning, and thanks for taking my questions. So I’d like to just go back to the macro first. I was hoping you just highlight what demand trends you’re seeing within your system across both gasoline and diesel, and then any differences you’re seeing in the West versus the Mid-Con would be great?
Steve Ledbetter: Yeah, Joe. Hi. This is Steve. I’ll take that one. So, in general, as we talked about earlier, I think demand was softer, both gas and diesel for Q4 versus same quarter 2022, but also higher than pre-COVID levels in 2019. Specifically on the Mid-Con is a little bit more impacted negatively for the same quarter versus — both in gas and diesel versus the West. Overall, I think we’re seeing that the demand picture is becoming more supportive. We think this is mainly seasonality and we’re seeing improvements both in inventories demand and in associated margin structure looking forward into Q1, and as Tim already articulated structurally, we see it balanced and above mid-cycle for 2024.
Tim Go: We saw, Joe, that in the Mid-Con, I know a lot of people were watching that the very, very cold weather that came through basically in the early January time frame really, really took a bite out of demand even further than what seasonality would typically project. And again, I think over time, especially with the BP Whiting outage right now, those inventories and those balances are being restored right now.
Joe Laetsch: Great. Thanks for that. And then I wanted to just hit on the throughput guidance. So I know you gave the first quarter guide, but I just want to get your thoughts on the path towards the 640,000 barrel per day target throughput, just where we are in that right now. Thank you.
