John Royall: Great. Really thorough and helpful. And then apologies if this one is maybe more housekeeping, but just on interest expense there, a couple of moving pieces there. You talked about $6 million in savings annually from essentially moving the intermediation agreement into your ABL, but you did have an increase in 3Q, which is obviously related to the Billings acquisition. So is that $21 million quarterly run rate minus, I guess, $1.5 million for the intermediation. Is that the right way to think about the quarterly run rate going forward?
Shawn Flores: John, it’s Shawn. I think the quarterly run rate going forward as we get into early next year, we’ll be closer to the $15 million, $16 million per quarter level. The $6 million of funding savings from flipping from intermediation in ABL is really split between interest savings and a reduction in cost of sales just due to the elimination of the intermediation fee, but as we guide towards interest expense for next year, it will likely hold around $15 million.
Operator: Our next question comes from Neil Mehta from Goldman Sachs.
Neil Mehta: Bill, you’ve done a great job around M&A, particularly around the Billings transaction where you timed that very well. And just curious what your thoughts are around the market right now? Are there other opportunities for opportunistic bolt-on or a better opportunity when refining margins are below mid-cycle.
William Pate: I think the latter is definitely the case. Frankly, with the market as strong as it is right now, every refinery is profitable. And I think it’s really challenging for parties who might be a refinery is nonstrategic to think about parting with that asset. The other thing is our footprint is just bigger. And I think we’ve been very clear about where we want to operate and where we don’t want to operate. I don’t think we would be very competitive on the East Coast or the Gulf Coast or even the Mid-Con, we want to be supplying transportation fuels in the upper Rockies in the Pacific in PADD IV and PADD 5. And so it’s harder for us to get transactions done going forward. But certainly, the market environment is not very receptive to that.
And as I was noting earlier, if you think about most of our strategic growth objectives, and I should have included renewables, by the way, which is a very significant part of how we think about our growth. They’re really all organic. It’s putting capital work in and around our existing asset base and investing in our plant and our people.
Neil Mehta: Yes. That makes a lot of sense. So a big picture question in the last 5 years, the stock has done very well. You kind of repaired the balance sheet, you scaled the business. And now have a very competitive refining footprint. Talk about how you’re setting up the business for the next 5 years. What is Phase 2 of this company’s development look like?
William Pate: Well, it’s exactly what I just said. I think we have the footprint. We have the assets and the people, and we’re going to invest in and around that footprint. So it’s things like the Tacoma project or it’s the conversion of the hydrotreater in Hawaii to start to produce renewable fuels in Hawaii. It’s bolting up our retail business. As Will mentioned, our Northwest retail business is ramping very nicely and growing well. And it’s building on what we have. I mean, I think there’s also logistics opportunities, but within our asset base, there are plenty of opportunities to put capital to work. And then more broadly, the best opportunity to put capital to work may be simply repurchasing our stock.
