Operator: We’ll go next to Doug Leggate with Bank of America.
Doug Leggate: Thanks everyone. Hi, Brad, Happy New Year and to all your team. I wonder if I could ask a couple of questions. One operation and one about my favorite topic, as Dan knows well is dividend policy. So first, operationally, your refining performance was €“ compared to your peers is quite extraordinary. And obviously, your distillate yield is a little higher. You’ve got some exposure to WCS, but I wonder if you could, kind of walk us through, how you see the outlook for your refining business? Because it looks like there’s been some channel changes in terms of how you’ve been able to maximize margins, particularly, I guess, in the Northeast during the fourth quarter. So, anything you would call out on the strength about refining performance is my first question, and then I’ll have my follow-up, if that’s okay?
Brad Corson: Okay. Yes. Thanks, Doug, and Happy New Year to you as well. When we look at the refining business, it is very much around maximizing value of our products driven by, kind of our operating envelopes at each of our three refineries, coupled with the commodity pricing and the crack spreads that are available to us. And what we saw late in the year, third, fourth quarter was the extremely robust diesel crack spreads, and that was very motivational to us, both operationally and financially to maximize diesel. And so, a great credit to the team. They optimized around their operating envelopes and each of our three refineries set records around levels of distillate that we produced and that had two beneficial effects. I mean, one is put more product on the market at a time when the market needed it, and it also allowed us to maximize value from that strategy.
As we look into the first part of this year, we’re continuing to see a lot of strength in the diesel side of the business. And so, the teams are continuing to optimize around that. And we’ll just continue to assess that as the year goes forward, but it really does speak to the capabilities of our assets where they can shift between diesel and jet and motor gasoline to maximize value.
Doug Leggate: Okay. So, nothing unusual in the quarter then other than just optimization, basically, which is a go-forward I suppose?
Brad Corson: Yes. I think that’s right. Continuing to optimize around the market conditions that we see.
Doug Leggate: Okay. That’s a good answer. Anyway, thank you. We’ll keep an eye on it going forward we might have some upside risk to Street numbers if our performance continues. My follow-up is, kind of a hypothetical, I guess. I realize Greg asked about the SIB. I want to ask about the balance between the buybacks, which obviously had some limitations and thinking back to the share price response to when you raised your dividend last October because it seems to us that long life that’s higher reliability, long-life assets like yourselves with tremendous cash dividend cover, you get paid on a dividend discount model and your dividend growth potential remains quite extraordinary, compared to your peer group. So, I guess my question is, how should we think about that balance between continuing to go after things like an SIB versus stepping up a sustainable dividend payout because let’s say that a 10% buyback means your starting point is a 10% dividend growth.
So, how should we think about that balance? And I’ll leave it there. Thank you.