Michael Cusimano: I wanted to ask a little bit more about the assumptions in guidance. I think historically, Magellan hasn’t assumed much in terms of like product dislocations between markets within the guidance. So I’m just wondering, do you have better visibility today than maybe in years past or just maybe a more aggressive approach?
Aaron Milford: When you say product dislocation, just help me with exactly what you mean, do you mean price dislocation, do you mean inventory
Michael Cusimano: Like higher barrel miles in your products transport business?
Aaron Milford: That’s been an area that’s always been difficult for us to predict, whether it’s planned or unplanned. Refiners are typically pretty tied to the vest about when they plan to be down. So what’s happening is we’ve just seen a more consistent longer haul barrel and certainly when planned maintenance happens. So it just becomes a little easier for us to have an expectation that we’re going to get some benefit from that on those planned outages. So that’s really all it is. We’re just getting a little bit of visibility, a little more of a track record of seeing how it plays out. And when you combine that for this year, just a higher maintenance cycle for the refineries, we think that we’re going to benefit from that.
And we’ve included some of that into our guidance. And as I said previously, the unplanned part is what’s really difficult to predict. So we really don’t have anything in the guidance that says we’re planning X percent of unplanned, we don’t have that. But to the extent we can see turnarounds, we are trying to include some of that. So it’s probably less about visibility towards it, more so than it is a track record of us seeing it more consistently is what I would say.
Michael Cusimano: And then one more on the on the guidance. I was wondering if you made any like methodological adjustments, or if the provided sensitivities was just additional disclosure that you all wanted because I don’t think you’ve provided that in the past?
Aaron Milford: We have provided different sensitivities, or I should say we’ve tried to provide some sensitivities, especially around commodities and crude prices. So that’s not new for us. And there’s really no methodology change in how we think about guidance. We’re looking at it the same way. Again, the changes will be to the extent, for instance, on the longer haul pipe movement, because we assume we have more of a track record of seeing it, we’ve got some of that in it. But there isn’t any methodological change in how we’re producing guidance or thinking about guidance and the sensitivities aren’t new.
Operator: The next question comes from James Carreker of U.S. Capital Advisors.
James Carreker: In previous years, you’ve talked about the July 1 step up, but then also talked about due to mix shift headline number that you kind of print on tariff basis for the refined products segment may be lower than that. Just wondering if you’re seeing any of that dynamic as you look out to ’23, understanding it’s hard to predict planned and unplanned maintenance?
Aaron Milford: No, we’re not seeing anything.
