Anthony Bonadio: Yes. Hi, good morning, guys. So, I just wanted to dig in a little bit on unit growth or NTI growth. You ultimately came in near the low end of negatively revised guidance in ’23. So can you just walk us through, just at a high level some of the hurdles there as the year progressed versus your original expectations? And then just, I guess, what’s giving you confidence in 2024 to accelerate that unit growth?
Andrew Clyde: Yes. So look, on the unit growth, we’ve expressed our disappointment there. I mean it’s just been a variety of issues. Some of its permitting, some of it is labor issues with general contractors. We’ve had stores where we’ve expected utilities to hook up, and you wait a month, or longer for the utilities to show up. I mean it’s very frustrating, to say the least. And when I talk to industry peers and as well as other retail small-box retail peers. They’re experiencing the same thing. Our confidence lies in the fact that we’re just building up the pipeline faster. And so, you’re going to have to start more projects or on a risk-adjusted basis, to be able to finish more projects within the calendar year. So it’s just a simple exercise of loading up more into the queue, knowing the average QuickChek store has gone from taking four years to five years; Murphy store from contract completion, two years to three years.
And one of the things we talked about as well, is we’ve improved our time by about six months with our general contractors, by providing a set of incentives, you think carrots and sticks. The challenge now is, we’ve lost all of that six months plus some, because there’s not an incentive for them, to invest in over time, expediting, et cetera, because there will be something else outside of their control. That would impact their ability, to deliver on time, or ahead of time. And therefore, earn an incentive bonus that, would more than make up for the overtime, or the expediting cost. And so, I’d like to think some of that will return to normal, but we’re not counting on it. So, we’re just loading up the queue, and staffing up for that, more than we had in the past.
Anthony Bonadio: Okay. Got it. And then just on PS&W RINs, I know you guys have kind of talked about that like $0.025 to $0.03 per gallon range, over the long-term as we model that. But this is now the third straight year, I guess, that you guys have come in ahead of that. Should we be thinking about that any differently now in the model?
Mindy West: I don’t think so, Anthony. The direction and magnitude of the price swings primarily dictate, what the fluctuation is from quarter-to-quarter. And if you remember second quarter, where we commented that it was completely unremarkable from a macro basis, we turned in right in the center of that range of $0.25. So, I would say going forward, while we’re still going to have quarterly fluctuations. I would model something $0.02 to $0.03, maybe $0.03 and a little higher, given the capability investments that, we’ve made in that part of the business, and the way that we leverage our scale. But I would not predict that, we’re going to earn outsized product supply, and wholesale margins unless you see an environment of rising prices consistently, which would then dictate that, we’re going to make some money in the way that we account from our inventory barrels.
But at the same time, retail margins from the other side would likely be squeezed in that environment, to as a partial offset. But no change to how we’re telling you to model. It’s just really a function, of the direction and magnitude, of the price increases, or decreases.
Operator: Thank you. There are no further questions at this time. Andrew Clyde, I turn the call back to you.
Andrew Clyde: Great. Well, thank you, everyone, for listening in. As I said, we’re really excited about the 2023 results the team delivered. But we’ve got even more excitement about what lies ahead, and we hope more of the same is good for all our Murphy USA investors. Thank you.
Operator: Thank you. This does conclude today’s conference call. You may now disconnect.
