Lane Riggs: Yeah. So the way I would think about this is we’re going to try to do a little more delineation in our IR pack deck to try to maybe demonstrate the success of a lot of our projects in our gaining process. But we’re still disciplined in that we don’t want to have all this forward-looking conversation around projects, whether they’re small or big or whatever. What we do is we — we have demonstrated hopefully, to everyone that our process does generate returns and then we had that we’ve — like I said earlier, we nominally lease today, I think we have $0.5 billion a year of spend that will generate the returns we think will make its way through the gated process.
Jason Gabelman: Understood. Thanks, Jas.
Operator: Thank you. The next question is coming from Matthew Blair of Tudor, Pickering, Holt. Please go ahead.
Matthew Blair: Hey thanks for the commentary on light-heavy earlier. I believe Valero runs about 200 a day of WCS at Houston in your Gulf Coast system. Is that correct? And is there any risk to that availability with TMX starting up soon?
Gary Simmons: Yeah. So our Canadian volumes vary — it depends on total heavies — we’re probably 600,000 barrels a day, Greg, right? 500,000 to 600,000 barrels a day, and we have the ability to optimize between Mexican supply, it’s live for Venezuela and Canada. Our view of TMX is that you’ll still have the Gulf Coast barrels coming from Western Canada. And what it will really do is decrease exports from the U.S. Gulf Coast, and we don’t really think that our Gulf Coast system will be materially impacted by TMX.
Matthew Blair: Great, thank you. And then I had another question on capital returns. So, keeping in mind that the Q4 buybacks were quite strong, payout ratio of 73% clearly impressive. We just found intriguing that your cash balance actually showed a build year-over-year in 2023. And I would say you started the year with maybe $2 billion of excess cash, ended the year with maybe $3 billion of excess cash. So could you talk about why that happened? Were there any mechanical limits on buybacks or where you locked out of the market? And then of that $3 billion in excess cash that you have now, do you have any sort of internal targets on — you look to pay down maybe $1 billion or $2 billion of that in 2024?
Homer Bhullar: Yeah. Hey Matthew, it’s Homer. I mean I think, first of all, we’re comfortable with where we are from a cash balance perspective. But we’ve discussed in the past, we like to stay above $4 billion. We had a very, very strong payout, right, particularly for the quarter, but then also for the year. In terms of paying down, like, for example, we look at debt right on the debt side, we proactively look at our portfolio. Through liability management lens. And so given the strength of our balance sheet, we don’t really currently have any pressing need to pay down debt with a net debt-to-cap ratio of 18%. But it’s an ongoing evaluation, and it’s something that we look at.
Matthew Blair: And just to clarify, you said your minimum cash balance is now $4 billion.
Homer Bhullar: We like to stay above $4 billion.
Lane Riggs: Yeah. And so we changed that. I don’t know, it’s a couple of years. We’re really coming out of COVID. Going into COVID, we’d taken the strategy trying to push it all the way down to two. And found going into COVID our experience was that was probably too low. So we’ve decided to bring on go ahead and look at our minimum closer to four. Good thing about being a four now versus two before we actually do earn a return on that cash before it was zero. So — but that’s really due to our experience as we went through COVID.
Matthew Blair: Okay. That’s helpful. Thank you.
Operator: Thank you. This brings us to the end of the question-and-answer session. I would like to turn it back over to Mr. Bhullar for closing comments.
Homer Bhullar: Thanks, Donna. So that concludes our opening remarks. I’m sorry, that’s — if you guys have any follow-up questions, obviously, feel free to ping us being the IR team. Thanks again for joining us, and have a wonderful week.
Operator: Ladies and gentlemen, thank you for your participation and interest in Valero. You may disconnect your lines or log off the webcast at this time, and enjoy the rest of your day.
