Operator: Our next question will come from Mike Sison with Wells Fargo.
Mike Sison : Just curious on your outlook for chlorine, particularly in the second half of the year, there’s been a couple — one big paint company who sees the second half weaker in housing. So just your thoughts on how that would affect that part of the ECU.
Scott Sutton : Yes. Mike, it’s Scott. Yes. I mean we — we see the same thing. I mean, the trend in U.S. housing isn’t great. And it’s not impossible that trends like that change which side of the ECU has the better fundamental conditions. And again, we’ll set our market participation according to that bad weak side. But when you go all the way to merchant coring, just as Patrick said, Mike. I mean that’s something that — we’ve had contract resets. Patrick already mentioned $100 million a year. And looking beyond 2023, we would expect additional resets as well. So chlorine has a very nice runway.
Mike Sison : Got it. And then I guess when you think about your operating rates for the rest of the year, do they sort of stay at these levels for most of the year? Or is there an assumption that they would improve a little bit as the year unfolds?
Operator: Sorry, give us a moment as we reconnect the main speaker line.
Mike Sison : I guess my question was, where are your operating rates now? And do you think they will — based on your guidance, stay similar through the rest of the year, given the outlook for demand?
Scott Sutton : Well, look, I would say overall, I mean, we’re certainly running lower operating rates. I mean, the highlights of those lows really are that if you went all the way down into our epoxy resin, you’d find that we’re running below 50% capacity. And that situation is certainly going to continue because we’re just not going to sell too much volume into an undervalued marketplace. In the fourth quarter, we had to adjust Winchester’s rates quite a bit as well because the supply channel got a bit fat and that’s trending the right way. And that’s why we’ve said in the first quarter, that business will improve over the fourth quarter.
Operator: Our next question will come from Arun Viswanathan with RBC.
Arun Viswanathan: So first off, on that note of operating rates, it says you can run at 50% for 1 year. I think we’ve been at these low rates now for a little while. Are we — how long does that year last? I mean, how much time do we have left in that? And then I had a couple of questions on Blue Water and hydrogen as well.
Scott Sutton : Yes. Sure. Yes, I mean, that 50% rate was across effectively the whole company for a whole year. If we ran at the pricing levels established in the middle of last year, that would still deliver our recession case. So against that standard, there’s still quite a bit of room left, Arun.
Arun Viswanathan: And on Blue Water, is there any way we can quantify the impact — financial impact and benefit to you? I know that you noted that you’ll control a greater amount of the industry supply or at least be in a position to manage it. So how does that translate to EBITDA benefit? And when do you start seeing that?
Scott Sutton : Yes. Sure. I mean keep in mind, that’s a consolidated joint venture for Olin. So Todd will make a couple of comments on the direct impact that you’ll see.
