Paul Cheng: Atanas, is there a number that you can share in terms of the operating synergies? Excluding, I mean, the debt, we can understand, but also like the financial lower interest, I mean, the real operating benefit. Is there a number you can share?
Atanas Atanasov: We will be in better position to shed more light on that after the close of the transaction.
Operator: Your next question comes from the line of Matthew Blair from TPH.
Matthew Blair: Do you have any early thoughts on refining capture in fourth quarter? I think Q3 was around 60%. It seems like the fourth quarter would include some pretty considerable tailwinds from things like wider WCS discounts, butane blending, lower rims and then it looks like lower refinery maintenance.
Steve Ledbetter: And I always appreciate the questions that always have the thesis included, in terms of the answer, and that was one of those. So we do see also a cleaner quarter ahead in Q4. We do think that the diffs, WCS in particular, TI dif will blow out and has already in the forward strip. And we have minimal planned maintenance, we are finishing up the Tulsa turnaround. So supportive structure and margin in terms of distillate diesel on jet, we’ll be moving gas around and we’re in max diesel and jet mode for Q4. So we think we have some opportunities to have a cleaner quarter ahead. But we are not giving explicit guidance on what that number is but we do see a good path ahead.
Tim Go: We’ve got some good tailwinds, as you mentioned, Matt. But seasonally, the fourth quarter always tends to be a little lower on capture too, just because margin is compressed. So that will be the offset to some of the tailwinds that we are seeing.
Matthew Blair: And then I am not sure if this has been addressed yet. But any thoughts on the potential for large scale refinery M&A from HF Sinclair here?
Tim Go: No, that question has been asked yet, Matt. What I would tell you is, we are focused first on closing HEP, it’s been a transaction that we have started earlier in the year and that we are laser focused on completing. As Atanas mentioned earlier, we believe that we will be able to close here before the end of the year. Our priorities are internally focused. We have talked about that before we are really looking to improve our internal reliability as well as our integration and optimization across our assets. So that’s really where our main focus is. We don’t think that the time right now is right to be looking at large M&A as you kind of described it, both from a market standpoint, we like to look counter cyclically.
Right now, I think we are finding valuations [particularly] high but more importantly, from a internal perspective, we are really focused internally more than externally. Now I know there is some assets on the table that are starting to be marketed. We will take a look just like everyone else is, but it’s not a priority for us right now, Matt.
Operator: Your next question comes from the line of Roger Read from Wells Fargo Securities.
Roger Read: Just a couple things to catch up on. One, your comments about refining reliability getting that up. I am just curious if you were say over the last 12 to 24 months, what your available uptime has been and then maybe what the target is for available uptime, ex-turnarounds and all that as we think about a marker for where you’ve been and a marker for where you’re trying to go?
Tim Go: We don’t provide a lot of the internal measures that we use. We have a lot of internal measures that we’re tracking both at the refinery level as well as at the regional level. But we don’t disclose that. We are making progress. We’re feeling good about the progress that we’re making. Val’s talked about that. We are seeing progress. I think one of the biggest ways that we’re seeing progress is in just the improved safety and environmental performance of our assets, which we always believe is a leading indicator of how our reliability is doing as well and the rest of our business is doing. And I can tell you we’re on pace to set another record safety year, both on a process safety standpoint and a personnel safety standpoint. So we feel good about the internal indicators, we’re just not prepared to share any of those, Roger.
Roger Read: Well, if not absolute numbers, I mean, maybe a basis point improvement. I mean looking at 200, 300, 500, something along those lines, if I can dig a little deeper?.
Atanas Atanasov: I would just encourage you to stay tuned and you’ll see graduated process — progress along those lines, and we’re focused on improving reliability.
Roger Read: Switching gears slightly back to the renewable diesel business. So you went through with one of the earlier questions, you know all the things that helped. But I was just curious if you thought year-over-year or quarter-to-quarter maybe how that broke down market factors relative to things you were able to do about changing the mix, keeping control of costs, stuff like that? Just what might have helped out on the lubes front?
Atanas Atanasov: One of the first things that comes to mind is early on as we were getting this business up and running was working off high price feedstock in a backwardated market. So the team has done a lot of good progress with respect to managing inventory and ensuring that we’re focusing on using low CI feedstock. So that’s number one. Number two would be improvements around catalyst performance and optimization. Number three, as a result of our turnarounds and the technical focus on the team is improving hydrogen availability. And so those would be kind of the three things that come to mind and I could ask Steve or Val to add additional color.
Steve Ledbetter: No, I think you’re right. I mean we’re peeling this apart to make sure that we can make it the most profitable business it can be. In our current configuration, we like to remind people that two of our facilities are co-located. And so hydrogen availability is a keen focus. But beyond that we’ve started to pull levers, as Atanas mentioned, in terms of advantaged low CI feedstock as part of that driving pathways are very important to get that full value and we’re hyper focused on that, catalyst optimization, OpEx levers in terms of waste and then really getting our molecules integrated across our value chain is another aspect that we see a lot of value coming forward. So we’ve demonstrated that in Q3 we can be profitable with not hitting our normalized run rate. We still see the path to getting there by the end of the year. And all of those focus areas we believe and expect to have a profitable Renewables business next year.
