That’s remained true this year, right? If you look at most market data, whether it’s EIA or other sources of demand, overall demand this year is flat to maybe even more recently, it’s slightly below last year. So that provides continued support on the margin side. With our scale, we’re able to take advantage of that higher breakeven margin. And then the thing that we’ve delivered on, probably in excess of what our original guide was last year is our growth. And so I talked about in my prepared remarks, and I think Theresa’s question was really about how do we — where does that growth and market share come from? And so that’s where our added volume isn’t coming from some tailwind in the market. It’s really due to us deploying capital and growing and then we’re able to take advantage of that higher breakeven margin to really out deliver in both areas.
John Royall: Great, thank you. And Karl, you answered my second question without even getting asked, so I will turn it over. Thank you.
Karl Fails: You bet.
Operator: Our next question comes from Selman Akyol with Stifel. Please proceed with your questions.
Selman Akyol: Thank you. I guess I just wanted to follow-up on Spiro’s questions in terms of sort of return of capital. A couple of questions there. Number one is, when you — Scott, you outlined the things you consider, I was just curious, do you guys or the Board have a goal or what you think the appropriate coverage ratio is to run this business with?
Scott Grischow: Yes. Selman, we’ve talked as part of our capital allocation strategy to be at or above 1.4x on the coverage ratio. So that’s the general area that we’re kind of targeting for the long-term and where we’d like to see the coverage and how we think about any distribution increases.
Selman Akyol: Got it. And then also within there, when you guys talk with the Board, is there consideration of any repurchases?
Scott Grischow: Buybacks have obviously been a part of a return of capital discussion. I think we see a lot of options to create unitholder value. But view distribution increases is providing flexibility to our unitholders and ensuring confidence in the future. It doesn’t mean we haven’t contemplated buybacks in the past. As you know, we did do one as part of the 7-Eleven transaction proceeds back in 2018. So they have entered the discussion, but we see distribution increases as providing the biggest return, and I think the most confidence in our growth ability.
Joseph Kim: Hi Selman, this is Joe. I’ll add one other thing to what Scott said is also, we like our growth potential. Obviously, this is a balanced approach between secure and growing distributions and maintaining a really strong balance sheet. But just as important as other too is that we look at the landscape and we see growth opportunities, both from acquisition and from an organic capital standpoint. And we think that we can do that at a reasonable value with significant synergies. So we think we can create value for our stakeholders on that particular area.
Selman Akyol: Got it. And then let me just ask this and — if I look back over your balance sheet, and I mean, and I go back to like ’21, you guys had cash less than $100 million consistently, you guys I go back over the model back to ’15. As I look back over the last several quarters, you’re running cash well above that and you ended this quarter with $0.25 billion in cash, your receivables are up nicely as well. Is there something you guys want to hang on to more cash? Or is there something changing in the business? Is there any thoughts on just by all the cash on the balance sheet?
Scott Grischow: Yes, Selman, I’ll take that. This is Scott. That cash balance that you saw at the end of the third quarter, and I think at the end of the second quarter was also around $240 million. Those were booked cash balances. They were not bank cash. So there is obviously a timing element there. We obviously manage cash to the lowest level possible, redeploying that towards debt pay down on our revolving credit facility and obviously reinvesting in the business and acquisitions. So that cash is not being trapped or held for the long-term. It’s being put back to the balance sheet or to growth.
