Tim Go: And Roger, I would just draw an analogy to the lubes business. We spent a lot of resources and a lot of effort to turn that business around, I think over the last two and half years. We have been at well above mid cycle performance for our lubes business. That same type of effort, that same type of focus is what we have got pouring into our renewable diesel business right now. And we believe that we will be successful in getting that business turned around and performing the way we want just like we have our lubes business performing the way we want right now.
Operator: Your next question comes from the line of Jason Gabelman from TD Cowen.
Jason Gabelman: I wanted to first hit on the CAT, the financial framework as you get close to the closing of the HEP transaction. It looks like on a consolidated basis, you are holding about $1 billion of of net debt. Is that the right number for the company to hold on a consolidated basis? And then how do you think about buybacks as you are able to get back into the market following the HEP deal close?
Atanas Atanasov: The way we think with respect to our capital structure and debt in particular is in terms of net leverage. And the net leverage target that we have publicly stated has been one time net leverage. As you can see, we are far below that right now and we are very pleased. Given where capital structure is today, our first and foremost priority is shareholder return, both in terms of buybacks and dividends and we will continue with that mindset. With respect to anything around the debt, I think we are very much — we are very pleased with where our debt is and shareholder return is our priority.
Jason Gabelman: And then my other question is just looking at the indicators that you posted for October. It seems like the premiums in the West relative to Mid-Con have come in after a pretty good run of pricing premiums. How much of that is seasonally driven? And is there any structural components as maybe there were a couple of assets, I guess, in the Rockies in particular offline for the better part of the past couple of years and now they’re back? If you could answer that, that would be great. And just one more, a clarification, I don’t actually think you provided the working capital number in terms of cash inflow. If you could provide that, that would be great. Thanks.
Atanas Atanasov: Let’s start with the last part as refresher. In terms of working capital, we saw a tailwind to the tune of $500 million for the third quarter.
Steve Ledbetter: And then just to answer the structure margin environment on the West Coast, we don’t see anything necessarily structurally other than a good portion of diesel, particularly RD coming to those markets. And therefore, we think there will be length of diesel and to be honest an opportunity in gas as well as jet. But we don’t think there is anything materially structural and we think that what you are seeing right now is seasonal normal patterns.
Tim Go: I would just jump in, Jason. We typically see seasonal weakness as the tourism and the driving season kind of comes to a close, we’re not seeing anything unusual at this point. What we are seeing is pretty strong jet premiums right now. And I would tell you for the third quarter, we had record jet production and record jet sales that helped boost capture in both the Mid-Con and in the West regions, and we’re seeing that continue here in the fourth quarter. So we will continue to look for those types of opportunities to continue to just optimize our portfolio.
Operator: Your next question comes from the line of Joe Laetsch from Morgan Stanley.
Joe Laetsch: So I just had a follow up on RD. I was just hoping to get your outlook for RD margins here, just given the industry capacity coming online next year. We’ve seen RINs fall, we’ve also seen some of the feedstock costs decline, as well as an offset. So just hoping to get your thoughts on the credit side as well as the feedstock side here please.
Steve Ledbetter: Yes, I think you hit it right. With the RVO release and the view of additional capacity coming on, there’s been weakness in both RIN value and LCFS. We think that that will adjust sometime. There’s been some announcements of some of the larger production coming on, some delays there. And so you’ve seen some of that change the overall margin and pricing structure, but we think that’s temporary. That has created a bit of reduction in terms of the feedstock pricing near term and we’ll take advantage of that. But we think that will normal out and ultimately we think that the RVO will adjust. We don’t know when but we do think that when it does adjust, it will create additional support in terms of the RIN value, and we continue to try to find other markets to take our products to.
And we think that there are opportunities not only in terms of the markets that have LCFS, but we’re also finding some opportunities where we can match proximity to our barrels and put them into those things and into those channels profitable. So longer term outlook, we’re pretty comfortable with what we’re doing and unlocking and untapping the complete value chain in our RD business.
Tim Go: And you saw, Joe, that RD margins tightened here in the third quarter, and yet our gross margin and net margins actually increased. And that’s testament to what the team is doing to try to improve our — just our base business.
Operator: And we have no further questions in the queue at this time. I will turn the call back over to Tim for closing remarks.
Tim Go: Thank you, Christa. Let me recap by saying that in the third quarter we executed our turnarounds on time and on budget. We delivered above mid-cycle profits in our refining segment, lubricants and specialty segment and marketing segment, and we returned $669 million to our shareholders for a total of $1.2 billion of shareholder returns so far this year. These strong results are a testament to the competitive advantages of our business portfolio and the hard work of our employees to execute our strategies and deliver on these results. Our priorities remain the same; to improve our reliability, number one; to integrate and optimize our new portfolio of assets, number two; and to return excess cash to our shareholders, number three. Thank you for joining our call. Have a great day and Go Rangers.
Operator: Thank you. This does conclude today’s teleconference. Please disconnect your lines. at this time, and have a wonderful day.
