Joe Kim: Yes. Let me try to answer that in two parts. I guess, first and foremost, we’re confident about the resiliency and the growth potential of our business on a going-forward basis. And that’s evident by the 2% increase we did last year and the 4% we did this year. As far as establishing a number on outward years, I think it’s too early. We have the flexibility – we like the flexibility to assess market opportunities and we’ll properly allocate our capital using the same strategy that we have right now. And obviously, your last question was NuStar contemplated in us with our 4% distribution. The answer is, of course, yes. That’s part of our business going forward. We like the accretion. I think any time you’re talking double-digit accretion, that’s a big number, and we’re confident we’re going to deliver on that.
Unidentified Analyst: Got it. Thank you guys for the time.
Operator: Our next question comes from Robert Mosca with Mizuho Securities. Please proceed with your question.
Robert Mosca: Hi, good morning everyone. Just wondering if you could talk about the puts and takes around your – the margin expectations. It sounds like there might be a couple of drags in the form of more low-margin volumes in the West Texas sale. Just want to check whether the $0.125 guidance still holds or whether we should think about it more holistically in terms of volume and margin?
Karl Fails: Yes. This is Karl. I talked in my prepared remarks, that really we look at it from an overall fuel gross profit. So I’m going to hand it over to Austin Harkness, our Chief Commercial Officer. He can dig a little deeper there.
Austin Harkness: Yes. Hey Robert. In terms of macro view, as Karl shared in his prepared remarks, we haven’t seen any fundamental shift in the volume or margin picture, right? So our view going forward is, from a macro standpoint, volumes for 2024 are going to continue on the trend that they’ve been on recently, which is roughly flat for refined products. And the margin picture remains elevated, right? So breakevens remain high. We continue to see volatility and flat price, all of which paints a fairly constructive picture for the margin environment. If you take a step back and look at our first quarter results, as a reminder, we manage a portfolio of income streams across different sales channels. And the way to think about our first quarter results is the market gave us an opportunity to sell more fuel above our historical run rate volume at a pool margin that was below our historical run rate margin, all resulting in a fuel gross profit number that ultimately allowed us to deliver a record first quarter EBITDA.
And as Karl mentioned, we really do optimize around fuel gross profit versus solving for any volume or CPG margin number independently. So as you think about the future and going forward, there’s a couple of things I would share. One is, we manage the business on a long-term basis, right? So we take a 12-month view recognizing there’s going to be volatility on a quarter-to-quarter basis, whether it’s impacting to volume or margins independently. Separately, as Karl mentioned in his prepared remarks, the West Texas divestiture accounts for about 50 points of enterprise margin, right? So you have to account for that along with the fuel gross profit associated with it. I would reiterate Joe’s comments that it’s a deal that we’re very happy with, given the multiple that we were able to transact at and our ability to quickly redeploy that capital to highly accretive M&A.
All that said, fundamentally, we’re a growth company. And I think our track record and our forward view is very much that we will continue to grow fuel gross profit in the long run multiple years in the future.
Robert Mosca: No, understood. Thanks for the time today, everyone.
Operator: There are no further questions at this time. I would now like to turn the floor back over to Scott Grischow for closing comments.
Scott Grischow: Thanks, everyone, for joining us on the call this morning. As I said before, it’s been a busy, exciting and strong start to the year for the partnership. Please feel free to reach out if you have any questions or want to discuss anything. Thanks and have a great day.
Operator: This concludes today’s teleconference. You may disconnect your lines at this time. Thank you for your participation.
