Karen Davis: Again, multiple questions. But first, a reminder that although we did finish the year with a pretty high cash balance at $2.2 billion, there are a number of calls on that cash First of all, a reminder that we did redeem $525 million in additional debt just a few weeks ago. Matt mentioned completion of the project about $200 million and we have a very heavy turnaround schedule in addition to repurchasing shares. So there will be a very disproportionate use of cash in the first half year. With respect to return of capital, financial resilience in the balance sheet are always going to come first. We’re going to ensure that the base business is sufficiently funded and prepared to weather adverse marketing market conditions.
And you should also be thinking that included in that we’ll be funding our annual capital program which should average in the $600 million to $650 million range over the long term. Like 2023, where we have a heavy turnaround schedule, it will be more other years it will be less. And as the cash generates cash or as the business generates cash beyond that, then we’ll expect to be in a position to continue and potentially increase shareholder returns. But given that we just restarted our dividend and approved our first buyback program. We’re not in a position to comfortably provide an additional guidance on the pace of returns. Having said that, we believe it’s important to maintain a competitive dividend with room to grow and to fund buyback programs when it’s appropriate.
Operator: Your next question is coming from Doug Leggate from Bank of America.
Doug Leggate: Karen, congrats on the permanent seat. Now you have to deal with all of us. Forgive me for beating on Neil’s question but let me maybe just ask it differently. Why should we not think about the proceeds from the joint venture translating directly to share buybacks? Because your operating cash flow takes care of all the other things you talked about. So are we looking at a 15% buyback with the cash inflow from the JV?
Karen Davis: Well, first of all, I’d say we are just delighted to be partnering with Eni and at the moment, just focused on closing the deal.
Doug Leggate: You’re not discouraging me from thinking that way?
Matt Lucey: We would never discourage you to think any way you want. It’s a futile — any attempt would be futile. But look, we’ve been very, very focused on getting the transaction to the point where we are today. The transaction hasn’t closed yet and I learned a long, long time ago not to figure out ways to spend money that you don’t have in your pocket yet. Clearly, the company will put forward policies that are appropriate at the appropriate time but we have nothing else to add at the moment.
Doug Leggate: Terrific outcome regardless. Guys, my second question is kind of a micro question but a little nuanced. At the end of last year, folks were getting pretty agitated about the heating oil position in the Northeast. And it seemed to us that was like the first normal winter without — since COVID without Philadelphia Energy Solutions refinery in place which there’s clearly a change in dynamics of the East Coast market. So I guess my question is, what are your expectations for where I say the first normal driving season in the Northeast which is obviously your backyard. Do you think the dynamics of that market of permanently shifted but perhaps not become fully apparent yet given we’ve had 3 years of COVID since that refinery shop. I’m just curious for your opinion.
Tom Nimbley: That’s a great question, Roger. I’ll tell you my view.
Doug Leggate: It’s Doug, Roger is the other guy.
