Mark Lashier : I’d like to circle back. I don’t think I covered one of the questions that John asked around Chems and that’s the risk — the market risk of CPChem generating enough cash to self-fund these two projects. Both of those projects, they own 30% of the Ras Laffan project, 51% of the U.S.-based project, both will be off-balance sheet project finance, mitigating their cash outflows, substantially mitigating our exposure there. So you can never predict that there is no risk, but I think it’s highly mitigated because of the debt structuring they’re going to undertake to support those projects.
Operator: The next question comes from Paul Cheng with Scotiabank. Paul, please go ahead. Your line is open.
Paul Cheng : Hi, guys. Good morning. Maybe for Kevin, can you go back into the CPC with the two major cracker is going to be under construction? How is the CPC distribution to for the next several years we should assume? So we assume that it’s going to be quite minimum and that they will build up their own financing and also some cash in the year given that there’s a heavy spending ahead? Or that do you think that the decision is that they will just use more of that capacity and continue to payout?
Mark Lashier : If you look — again, if you look at those projects and if you look at the assumptions on project financing, I think we had talked about earlier, maybe even at Investor Day, that our exposure to foregone dividends is really probably about 10% of the aggregate capital spend if you look at those two projects combined. And that’s spread out over four years. So it’s not a major impact on our ability to generate cash overall. Kevin, do you want to —
Kevin Mitchell : Yeah. So just to expand on that a little bit. The — when Mark talks about off-balance sheet financing, he is specifically referring to project level financing. So financing those projects at the Ras Laffan Petrochemical project level and at the Golden Triangle Polymers project level. So that’s not on CPChem’s balance sheet, and we’re not anticipating that CPChem would have to go to its own balance sheet to fund its equity contributions into those joint ventures to fund those projects. And in fact, we’ll still be able to do that and continue making distributions to the owners. Obviously, there is a dependency on what the overall market environment looks like. But based on what we’re seeing, we still expect to be receiving distributions from CPChem through this period.
Clearly, there’s an impact. Anything — any discretionary spend by CPChem into a capital investment is cash that’s not available for distribution out, but it’s all pretty manageable within the overall expectation of where their cash flows will be.
Paul Cheng : Kevin, do you have any rough estimate whether you expect CPC to sensory pay out to earn 100% or 50% or 75% or any estimate that you have?
Kevin Mitchell : Yeah. Well, you would expect it to be less than 100% because they do have the capital projects underway. So there’s the two big ones that we’ve been talking about, and then there’s a slate of smaller projects, several of which will actually finish this year. So it’s going to be less than 100%. We’ve never given specific guidance on what we expect the distributions to be. And our history has actually been pretty strong with regard to cash coming back from CPChem.
Operator: Our next question comes from Jason Gabelman with Cowen. Please go ahead, Jason. Your line is open.
