Matt Joyce: Yes. Thanks for the question. It’s Matt Joyce here. More specifically, over the past quarter, in particular, team has done a tremendous job continuing to focus on streamlining our supply chain and manufacturing of certain products and end users. We’ve also been working to get better visibility to our costs through implementation, new digital tools that we’re bringing on board that will help with inventory management and planning. So that’s in process, and that will actually be seen in the second half of the year. So when you’re looking into that quarter three, quarter four benefits. Those are some of the pieces that we’re putting together. And we’ve been looking at the right mix of products. We’re really fortunate to have a good balance of products that are in, what I’d call, sustainable markets where we can really be distinctive in our value proposition and our solutions to the marketplace.
And we’re very satisfied and excited about the opportunities that some of the regional focus that the team has taken in particular in the US in these markets, those have proven to be very good. So despite these headwinds, some of the softer volumes that the markets have experienced in general, we’re doing really well to manage our margins, clean up and make sure that our own housekeeping are in order and look for the right targets and the right customers and partners to grow in the future. Andre, are you still there?
Operator: Yes, I’m still here. Can you hear me?
Matt Joyce: We can now, yes. Let’s move on to next question, Ander.
Operator: Okay. We’re going to go to Jason Gelman [ph] at TD Cowen.
Unidentified Analyst: Hey good morning. Thanks The first one I wanted to ask was kind of on the niche markets that you serve. I think both the Rockies and Southwest saw some margin strength in 2Q. And I was hoping, you could talk about what drove that and if you’re seeing that continue into 3Q, particularly given some regional outages seem to be reaching their conclusion? And I have a follow-up. Thanks.
Steve Ledbetter: Yes, Jason, this is Steve. I’ll take that one. Those markets that we serve, as you know, there’s not a ton of liquidity in some of those markets and so supply demand balances can move pretty quickly. I think what we saw is the strength of the crack in those markets associated with low inventories — in the peak of the driving season really allowed us to take advantage of that. When you think further out, we see some of the back half of the year, some of the cracks coming off and diesel normalizing to more fundamental position. But again, in our markets, we think we have a competitive advantage to take those — those cracks and drive them to the bottom line, and we were to do that through the rest of the year.
Tim Go: Yes. And Jason, this is Tim. I’d just chime in to say we’ve always said, especially since the Sinclair combination that the strength of our portfolio in refining is the markets that we serve, which provide both growing demographics that are supporting demand advantaged crude and then, of course, product premiums for the Gulf Coast. And what you’re seeing play out this year, I think, is very indicative of why we think we have a real competitive advantage in our portfolio.
Unidentified Analyst: Got it. And my follow-up is on M&A and refining. It seems like there’s a number of assets coming to the market that are available for purchase. And Gino’s obviously demonstrated a desire to consolidate the refining space over the past couple of years. So I was wondering if we could just get your updated thoughts on how you’re viewing refining M&A are there any specific regions that you’d be more interested in other any types of assets, or do you feel like the size of your refining portfolio is in a good place right now?
Tim Go: Yes, Jason, thanks for the question. We believe in liquid transportation deals, we would not have done the transaction with or with Sinclair, we did not believe that there were years if not decades left for the derived refining assets, which we believe that we require. Having said that, we’ve just gone through a very successful Robur [ph] in 2020, we added our renewable diesel business. 2021, we acquired Puget Sound 2022. We acquired the Sinclair assets. And of course, in 2023, we’re working on potential discussions with ATP. So there’s — we’ve had a lot of very successful growth and hopefully will continue as we continue discussions with ATP. But right now, as I mentioned, on the last call, our focus is on the same priorities that we’ve talked about when I first got into the job, we need to focus on EHS and reliability — we know there’s a lot of opportunity there.
