Donovan Schafer: Hi, guys. Thanks for taking the questions. I will second the first analyst’s comment just that, as results broadly seem quite positive. I think the only — I mean, the only thing, is there is this sort of incremental negative thing if you could call it that, is the higher CapEx, but you provided some explanation the coverage — what we’re seeing really tight labor market. Of course it makes sense that, making — staying — you’re making it a priority to stay on schedule. So, of course, supply chain stuff that could mean, a higher sort of expediting costs. But my question is, like if we can dig down just a tiny bit more on that. Sometimes, you — as you say, for instance, tight labor market, you can pay out more and that means you get your hands on people, but you are in a very kind of rural area.
You’ve talked about employees, at the cost of your refinery being third-generation folks. And so sometimes, there’s a difference between having to pay out for something versus just not even being able to get it period, or say with expediting or something. So I’m trying to really hone in on kind of, is there anything in the nature of those — what’s behind the cost of runs, that can give you any — that would incrementally cause some potential of a further delay? I know you’re still on track like, as of now, like as of today of course we’re on track. But say you’re waiting on, 10 large components and you’ve had to expedite three of them because you found there’s a delay is the type of thing, where well, therefore, you could potentially learn about delays in the other seven, and then you might have to expedite those, but sometimes maybe you can’t.
So is there anything in the attributes of the aspects of what’s underneath that €“ that would give a basis for a little bit of caution or a little bit of reservation around there, just really digging into that?
Ben Cowart: Yes, yeah. No. Thank you for the question. We have every single piece of hardware on-site today to finish the project. If I was in the €“ so that’s first on hardware. So the supply chain, even though we did pay to maintain schedule every one of those components we were €“ our team on site, we’re really focused on making sure every little valve €“ say a little, these aren’t little. These are big high-pressure valves were ground as we took feed out as I had previously told you. By the time feed out, we’d have most of it on the ground. I think we had a handful of components and every one of those have arrived. So that’s on the supply chain. And on the people side, I think we’ve seen what the market has performed and what everyone else is seeing in the market.
We could have made some different choices there, and not got the quality of people we had and not paid, but we have had very, very good quality work and performance by our contractors on site. And that hats off to them. They’ve brought the A team for us, and they’ve done very well. And with that we are now in the process of de-staffing the project as we’re coming down from our peak. So if I was ramping up, I would be worried but that’s not where we are on the project at this stage. We are ramping down from peak manpower requirements. Okay?
Donovan Schafer: Okay. That’s great. Okay. So that’s very helpful. And then as a follow-up question just for the $9.6 million loss on the hedge roll or backwardization, I want to make sure, I’m understanding that clearly. So my impression is that, this is a bit different from the initial hedges, you guys had in place sort of in prior quarters, where this is really more about the implicit commodity price exposure that it’s almost sort of a working capital exposure you’re buying the crude one day but those exact barrels of crude that you’re buying you want to kind of lock in that margin when they go in the feeder and they go into the process. And then there’s some amount of lag or delay or they come out of the other side. And so is the $9.6 million is that an explicit hedging that’s tied to that specific exposure and/or alternatively, is it even hedging, or is it more sort of an implied hedge just that, if you’re not hedging you just have that exposure.
And so you’re highlighting the impact of that exposure as commodity prices move in the interim between ones you get crude in and refine product out?
Chris Carlson: Yeah. Hey, this is Chris. I mean, you kind of laid it out well in your explanation. But yes, it’s a combination of the impact of the inventory that we have on hand and the changing in the commodity markets, which are in a backwardation position today. We’re seeing it go back and forth a little bit, but it’s still backward dated at the moment.
Donovan Schafer: Okay. And so in the release in the adjusted EBITDA reconciliation, they caused a gain loss on hedge roll print issues backwardation. So you say hedge roll you use that just more broadly kind of €“ there’s not actually like hedge contracts in place. It’s more of the impact of that exposure. Is that right?
Chris Carlson: No. To clarify that there are hedge contracts in place
Donovan Schafer:
Chris Carlson: in remediation agreement on our inventory. So there are…
Donovan Schafer: So it’s kind of it’s kind of effectively a mix of both in a way, or there’s a sign amount of netting and figuring it out?
Chris Carlson: It’s a combination of both.
Donovan Schafer: I see. I see. Okay. Great. Thank you. I’ll take the rest offline. Congratulations guys.
Ben Cowart: Thank you, Donovan.
Operator: Thank you. Our next question comes from Amit Dayal with H.C. Wainwright. Please go ahead.
Amit Dayal: Thank you. Good morning, guys. Great results. I appreciate you taking my questions. operating expenses of $3.85 to $4, is this sort of the range for the near term? And how does this change with RD coming online soon?
