Jeff Zekauskas: A two-part question. When you think about the shutdown of your refinery at the end of 2023, does that mean that there are reduced operating rates in the fourth quarter of 2023? That is, do you have to really prepare to shut it down or you get to the end of the year and you shut it down? Second question is, you gave a sensitivity to natural gas price changes. You said every dollar per MMBtu is . And you said 20% is in Europe. So that’s roughly 35 million MMBtus. The European gas price today is maybe $17 an MMBtu. And last year, it averaged $37. So it’s down $20. $20 times 35, $700 million. So is that the benefit for 2023 if gas prices in Europe stay where they are relative to last year? Have I done the calculation correctly?
Peter Vanacker: Thank you, Jeff. Very good questions. I mean, talking about the refinery, as we have said, I mean, we want to shut down the refinery in Houston by the end of 2023. So that has not changed in our opinion. The rationale for that has not changed either. And of course, there is some preparation that needs to be done in order to be hydrocarbon free by the end of the year. So Kim, if you want to add something on that question?
Kimberly Foley : I would just tell the audience that we’re working through the detailed plans of how to do that. As you alluded, you can do that with a slow ramp down? Or are you going to do that by just pulling the plug on the 31st , and we’re working through the different scenarios to make sure that we have the most efficient an effective shutdown in clearing process.
Peter Vanacker: Answer your second question, of course, I mean, if you just do the math, then you make up to that conclusion. But let’s not forget that in Europe, our teams have done an excellent job by also increasing prices on one hand side, on the other hand side, also implementing energy surcharges. So you can’t actually net that out the way you did, Jeff.
Operator: Our next question comes from the line of Frank Mitsch with Fermium Research.
Frank Mitsch: Congrats, Michael and David on the Institutional Investor Magazine recognition, well deserved. Michael, you made good progress on working capital in 2022, and I’m wondering what the expectation is for 2023. And in terms of uses of cash, there was a breather on buybacks here in the fourth quarter. CapEx is coming down in ’23. What are your thoughts in terms of a resumption of the buybacks?
Michael McMurray : So good question. So I think, first, I mean I just — I’d point out again that the cash generation in 2022 was extremely strong. Excellent execution by the businesses from a working capital perspective during the year. In the fourth quarter, in particular, longer-term perspective as well. Kind of turning to this year and looking forward, I would say that, I think, first and foremost, our capital allocation priorities remain unchanged. And you all know that we have a reputation for generating strong cash flow and returning to gain cash flow to our shareholders, and that expectation has not changed. Thinking specifically about 2023, I would point out that CapEx is going to be down materially. So expectations for capital is about $1.5 billion.
It is going to be a tale of 2 halves for this year with an expectation that the second half gets stronger. As we move here into the first quarter, it’s my expectation that working capital should be flattish. But as I look towards the balance of the year, I actually hope to consume some working capital with better sales and better pricing. And then remember, our growth investments are starting to pay dividends as well, in particular, with the start-up of PO/TBA. And so again, as I think about the full year, it’s my expectation, and I’m looking at Peter and he’s nodding at me. But we will continue to return meaningful cash to shareholders, including growing our recurring dividend.
