Operator: Our next question comes from the line of Joe Laetsch with Morgan Stanley. Please go ahead.
Joe Laetsch: Great. Thanks for taking my questions and congrats on a good quarter. So I wanted to ask on cracks in the central corridor, particularly on the gasoline side, which have remained weak to start the year. I know you benefit from running WCS there, but I was just hoping to get your latest thoughts on Mid-Con dynamics and just watching there as the year progresses.
Mark Lashier: Yeah. Particularly in Chicago where the crack is now close to zero, a number of factors have caused that weak gasoline margins. Demand has been poor due to winter weather, which affected production, demand more than production. Refinings have been running strongly there. And then the upper Illinois River was frozen for 10 days, which blocked U.S. Mid-Con or Chicago exports from getting to the U.S. Gulf Coast. So kind of our view there is Chicago refineries are soon going to be in turnaround and there’s a closed arc from the U.S. Gulf Coast up north. We think things will clear up, particularly as winter grade gasoline has moved out of tank and the market switches to summer grade gasoline.
Joe Laetsch: Great. Thank you for that. And then I just wanted to ask on the export side, have you seen a shift in any crude or product flows with the Panama Canal capacity limitations or any Suez Canal diversions, maybe shipping more product to Europe.
Mark Lashier: I would say, first with Russia, now with the Red Sea, we have been seeing different arbitrage, different places. As you know, Russian barrels are going different places than they used to. But by and large, it’s just increasing freight rates and time. For us, that’s actually helpful because as it does that the European type barrels, the Brent TIs widen out and we buy more barrels at basis WTI, so for us, it’s a benefit. Also, we have a strong and robust bunker fueling business, which also benefits from the higher bunker sales for the longer voyages.
Joe Laetsch: Great. Thank you all.
Operator: Thank you. This concludes the question-and-answer session. I’ll now turn it back to Mark for closing remarks.
Mark Lashier: Thanks for all your questions. I’m going to wrap up with slide 13 and have some comments about where we’ve been and where we’re headed. You’ll recall back in 2022 at our Investor Day, we set some pretty ambitious goals and those goals were based on shareholder feedback. Then in 2023, we focused on what we control and we delivered on our plans with strong operating and financial results. Those results enable us to deliver the attractive returns to shareholders that you heard about today. Now, in 2024, we’re raising the performance bar once again to enhance our ability to reward shareholders with strong returns now and in the future. For those of you that are invested in Phillips 66, we thank you for your confidence.
Jeff Dietert: Thanks for all your interest in Phillips 66. If you have further questions, please call Owen or me. Thank you.
Operator: Thank you everyone for joining us today. This concludes our call and you may now disconnect your lines.
