Valero Energy (VLO) 25 Oct 182018 Q3 Earnings call transcript

Company Profile

Participants

John Locke	Valero Energy Corp.
Joseph W. Gorder	Valero Energy Corp.
Jason Fraser	Valero Energy Corp.
Gary Simmons	Valero Energy Corp.
Donna M. Titzman	Valero Energy Corp.
R. Lane Riggs	Valero Energy Corp.
Martin Parrish	Valero Energy Corp.
Roger D. Read	Wells Fargo Securities LLC
Paul Y. Cheng	Barclays Capital, Inc.
Doug Terreson	Evercore ISI
Doug Leggate	Bank of America Merrill Lynch
Benny Wong	Morgan Stanley & Co. LLC
Manav Gupta	Credit Suisse Securities (NYSE:USA) LLC
Prashant Rao	Citigroup Global Markets, Inc.
Brad Heffern	RBC Capital Markets LLC
Peter Low	Redburn (Europe) Ltd.
Neil Mehta	Goldman Sachs & Co. LLC
Paul Sankey	Mizuho Securities USA LLC
Craig K. Shere	Tuohy Brothers Investment Research, Inc.
Philip M. Gresh	JPMorgan Securities LLC
Christopher Paul Sighinolfi	Jefferies LLC
Jason Gabelman	Cowen & Co. LLC
Matthew Blair	Tudor, Pickering, Holt & Co. Securities, Inc.

Call transcript

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Operator

Good day, ladies and gentlemen, and welcome to the Third Quarter 2018 Valero Earnings Conference Call. At this time, all participants are in a listen-only mode. And I would now like to introduce your host for today's call, Mr. John Locke. Sir, you may begin.

John Locke

morning. Good Valero quarter to call. earnings Corporation's Energy welcome XXXX third conference And and our me our Jay Counsel Titzman, several Officer; President Gorder, are Browning, team. our senior management other Lane President Vice With President Joe and Executive our Chairman, Executive today and and Vice Executive President and Vice Chief Executive members CFO; COO; Valero's Riggs, General Donna of

at one information Valero.com. provide would not attached like release a on received our can you additional business you've earnings website If the and find Also that to release on the copy, tables segments. earnings are our financial

attention the any If the contained disclaimer the team have on free the the forward-looking to press these our management's in summary, call its provisions and that forward-looking release described release. under state harbor questions in results you this your we've many or laws. to company's federal safe filings our statements our tables, factors statements after the please the conference like feel predictions with says securities to expectations from after cause including reviewing press There would that call. expectations future, covered the to actual could statement Relations intended in Investor I In those are are be by contact that direct to SEC. of differ or

to for remarks. opening Joe over call the turn will I Now,

Joseph W. Gorder

remained in operational sweet very we Brent John, third We set Thanks, and light discounts record solid Refinery performance new for as crude relative the everyone. utilization and good XX% a morning, quarter. attractive. safety processing exceeded to and had

year outperforming was environment results generally delivered last less strong We the margin third financial that quarter favorable. a also despite of

displays as the respectively. Line performance Canadian pipelines contributed add crudes will crude. Pipeline and for sweet our these is the exposure pipeline Diamond X. day to Refineries, of provided We Permian and Memphis less an per XB Our volume Pipeline pricing to November look the expansion, again Quebec to access competitively This another Cushing Enbridge of of City Sunrise refineries of discounted use XXX,XXX which equal of startup to and our scheduled barrels the Mid-Continent meaningfully and forward priced

to Delta-T capital reduce the intermediate in benefits XXXX, the and a Earlier coker commitments per We production plus of and million and us corn processing heavy investments agreed to $XX to to from capability The Diesel million, barrels two total are while capacity trains. we expansion acquire gallons utilize Diamond feedstock XX,XXX practices growth nameplate further Valero's on estimated plants capability that $XXX through million. from per $XXX A a our production of at day Development to in is year and earnings a additional per portfolio commercial delivering parallel transfer technologies completion and ICM month, and efficiency belt, XXX purchases. capacity increased operational a expand deliver continued the a project grow to a our acquisitions, current solid These was with crude directors the ethanol the August, capacity continues on existing parallel in stockholders. best diesel and enabling renewable to at barrels day. returns Upon facility total Plains construct per a coker decision day. In expected our Green provide bringing Port plants of working turnaround have cost add synergies. is recovery The sulfur for final and coker to from improve September, margin refinery crude expected project XX,XXX before investment year approved total Green million. capacity barrel capture of end. refinery will XX,XXX cost of to completed a a to Arthur three unit at this vacuum located board

quarter fund with transaction Central acquisition Pasadena and to We expect and progress continues fourth and Texas in the XXXX. and remains scheduled products terminals subject closing the of review. cash Pembroke the alkylation XXXX track on in pipelines to and and plant. anticipate Charles terminal These XXXX, possible and St. customary of cogeneration the the FTC completion this Construction work to Houston for closing projects units are the on and conditions

plan $XX.XX close we acquire held common meeting Valero per of to announced the as execution all conditions. Energy closing to outstanding of definitive is a last transaction The and Partners, units soon unit. VLP a week as expected price to Moving the after of customary of of agreement publicly merger at possible

that merger the cash. high time, immediate an offers to shifted away of growth synergies MLP of the a to prices transaction premium the offers compelling structure. paradigm in benefits favoring Valero range The options Given and the holders. addresses that provide before a average same distribution a growth, the merger slower outcome self-funded in shareholders unit a for concluded also conversion evaluated model merger and At trading markets, sentiment the and drop-down VLP's simplified cash Valero Valero This favors of flow partnership MLP model VLP's equity that growth. in best a Valero investor VLP terms from and to distribution funded shift shareholders equity has would underway for organic

Now, paid to ratio to provided net payout of turning to continue XX% returns an adjusted target we XX% XX% We cash out net of our year-to-date activities operating between by of operating annual stockholders. cash provided cash and to by adjusted activities.

picks is Global production with expected we of I'll export at reasonable that, unemployment rates margins Despite distillate quarter industry relatively remain in the seasonally, grow Domestic winter U.S., maximum In fourth hand distillate while forward demand near the five-year pace. And to As lows. a distillate moderate are back supply high are lows. and northern up we increase utilization, record at John, strong. you. international the should and demand to product XXXX, incentivizing look optimistic. to continues as into export volumes at economic activity remain hemisphere. days Gasoline for call the to

John Locke

Thank you, Joe.

per refining Hurricane $X.XX stockholders was discounts operating $XXX barrel the secondary expenses the share barrel to Refining million throughput due Operating third per compared third the million $X.X compared $XXX third of decrease quarter is for $XX $XX to The of million and attributed quarter third XXXX. of which per million per increase income assets the the segment lower segment gasoline of million Valero operating to quarter, in prices XXXX per in to million XXXX. to Harvey. or third to and $XX the Pipeline $X.X in attributed third $XX in the The to was Gulf X.X Throughput generated of terminal XXXX, Refining million, wider for the of in the crude from day Port cash utilization quarter due of compared sweet XXXX. in For was XXXX volumes was net of for mainly XXXX ethanol of XXXX. the capacity were day million acquired XXX,XXX of was $XX in quarter by third decrease primarily $XX impacted quarter higher XXXX the third XXXX of and $X.XX were Brent. the Operating of oils third five third by was and billion contributions than when than quarter of $X.XX of The offset VLP to XX%. ethanol The billion to per of or throughput quarter of barrels million $X.XX the quarter quarter XXXX. mostly mainly third the Arthur quarter the in volumes million compared income in partially attributable third throughput income quarter income share, averaged in higher margins, the XXXX. Parkway our VLP $XX of sour operations XXXX. U.S. versus of products of for third by barrels refineries were were lower segment November Coast quarter lower

$XXX cash cash excluding Valero's in of amount debt capitalization to billion we third generated was million the of amortization and million quarter to cash million $XXX quarter use cash only expense in billion, was of At tax the is We operating the balance of expense of this general end debt capital. of million. XX%. third Included for cash XXXX, and expenses and was was were interest $XXX million million $XXX $X.X end, held from $XXX rate available cash total equivalents and had of Depreciation million which liquidity of our working the September, to XX%. respect administrative was $X.X $XXX sheet available and was $X net and ratio quarter. $XXX For billion With net was by were billion VLP. effective of fund activities which at VLP. $X.X

operating Excluding activities was working $X.X by capital, net billion. approximately cash provided

and purchase of the excludes invested catalyst capital investments, of to Moving growth include the and investments costs. Sustaining sustaining million Valero With acquisitions, investments made which was in of stockholders in $XXX with X.X of we million The to third to capital million $XXX we $XXX shares million of turnaround quarter. common balance third activities, $XXX million for the regard growth. in used million financing the $XXX quarter was our returned balance stock. to dividends paid quarter. as

As XX, repurchase remaining. we billion share $X.X of authorization approximately had of September

growth. $X.X sustaining billion billion the and to catalysts expect $X.X to billion continue to total joint We business to Included in investments. this investments total venture $X XXXX turnarounds, are and capital with allocated about

day. volumes expect per X.XX to Coast barrels X.XX U.S. barrels barrels U.S. to per quarter and per per For the operations, we Atlantic Mid-Continent to our XXX,XXX within throughput barrels XXX,XXX fall at XXX,XXX million XXX,XXX Gulf at modeling million North U.S. to fourth at Coast XXX,XXX at day; to XXX,XXX ranges: following day; day; West

expect $X.XX expenses per be barrel. to We approximately the operating in refining fourth cash quarter

of includes gallon fourth ethanol is ethanol million per acquisition fourth day Plains, the plants costs for Green of a our in quarter. $X.XX the expected the Excluding in per amortization. should to produce the non-cash per which gallons quarter, expected three to from and depreciation such Operating average expenses X.X which gallon total close $X.XX is as segment

effective For XXXX, we tax about be to XX%. rate expect the annual

amortization fourth expenses $XXX net $XXX G&A $XXX million. expense the depreciation approximately interest we be at and excluding expect For depreciation and to should expense is million, million, approximately corporate quarter, total be estimated

to between and That declines given $XXX million expected recent are Lastly, concludes $XXX opening and the biodiesel million. reducing for remarks. year our RIN RIN's in expense costs, ethanol we

the to to open callers in turn we limiting request that questions, to questions. two of Q&A our each the call protocol respectfully we our adhere again Before

two have ask you ensure the their as callers than have questions. more If questions, us helps time other queue permits. This rejoin time please to

Operator

Read line And first with you. Wells Fargo. question from our Thank the of comes Roger

Your line is now open.

Roger D. Read

quarter Good usual. morning, nice as and Yeah, thanks.

Joseph W. Gorder

Roger. Thanks,

Roger D. Read

process. thought one could, certainly XXXX is about you didn't we very but talk if topical overview, Joe, thing the here, the in IMO

out, surprise in fits story if no doesn't what there IMOs Can you and this any is And your early change what impact meeting year So, XXXX? time this together? administration how about like about But comes how week. seeing, it, talk looking expectations the the next you're at potential into maybe there. that we're are,

Joseph W. Gorder

let bit speak question. Jason a Hello We'll good little that. Roger, about

Jason Fraser

it, Okay. drabs what is you the in meeting, from this to developments going far. it, have, on drips Looks Hey, proposed of as trickles is closed it ascertain. all its carriage been it was but was from There Roger, The delay sure a of two of like committee into that and will voted just able you either I have so different Protection I'm by ban so officially meeting referenced. it's or the you believe have been And all times, all on go gleaned original will the at XXXX. date there's we've out proposal sure to we experienced lock a X, on out what many today like defeated. same Bangladesh I'm week positive in Looks Jason. very And March is tomorrow, we've meeting come effect Marine be information in. that to London. been Environmental this following Committee's

new the deal big the a gives think port we very since to states tool help them that's powerful specs. a force So, it

the look lot burn they unless That's and maintaining it board – see ship is don't a just a regulation fuel has breach the but compliance. to have non-compliant ship a to on the You help scrubber. to of in going with tank just having have prove the fuel,

that second news The caused phase bit relate this Journal commotion to article. building that's proposal of in was a that's of quite to experience and good what Street bit referred Wall

a into Now, was lot a there of really of standards. The issuing exactly spec wouldn't or how to us. took of clear potential clarifying might down the Nevertheless, was change. watering the themselves at or statement, delay this this phase never proponents proposal would delay be step actually worry saying work it a least path of that

on committee was agreement cover that meeting the to lot of report proposal a end analysis debate limited got there and So, we reached and the the was day at an will the nothing be it of that and data else. the yesterday the collection at

a So, about there'd nothing enforcement. phase-in relaxed or be initially

main our the firm far so its change available. away and seems sure spec XXXX, implement the in on So take to fully that to remain is tools January the right enforcement committee are commitment then make X,

Roger D. Read

Thanks. Great.

event cash the Second think to unrelated payout the relative ethanol coming sheet and about as the in deal. question, should at VLP share with this the of is you've process? balance CFFO acquisitions in commitments normal to the about and the we acquisitions XX% dividends think How particular got and quarter, a period you the do the or two acquisitions repos XX% of we this terms flow

Joseph W. Gorder

Yeah, Roger, the affecting execution our in And And allocation been that's uses. messaging, a There CapEx, negative consideration way. the we've really discretionary no about in good our turnarounds framework. dividend our in maintenance is talking around another question. capital consistent here or what is or of very we're our

pipeline and is is what projects significant We've which are good good if really coker we've on this under growth The Pipeline So, it's development. got got performing the Central growth well. that done, We underway. uses really Diamond very more focused look really many (XX:XX) discretionary the the returns, got you project, projects. we've has and Texas at

you is If able on always buy which got trying ethanol but shares plants were discretionary which ethanol then from of piece, very we acquisitions, at we we've we're a buying is when And overriding, component in the got here in the talk and can to the plants focused we're we're of And an our which repurchases, look ratable perspective, bit, acquisition another in this. payout but at to down the it Martin about we've market. what do. looking acquisition been on that's ratio a our

So, here with that that in what the would consistent we've to you our say going done what should I remain behavior is past. forward expect

Roger D. Read

Thanks. Awesome.

Joseph W. Gorder

Okay, buddy.

Operator

Cheng question comes with next the our And you. Thank Paul Barclays. from line of

now line is Your open.

Paul Y. Cheng

Hey, morning. guys. Good

Joseph W. Gorder

Hi, Paul.

Paul Y. Cheng

the but I all. of they contact and do? that Jason, Yeah, I of Joe of times. Can or exactly first number to a have of what proposal that White to just you somewhat program focus White that, give in is to have the what slow rollout? that us House what question the with have they want guys Roger similar I you then of trying I is DC kind apologize in on what and in have place mechanism know the lot President terms to asked down, what Or some IMO, a House mean, in kind met mind insight are in the thinking? Trump what that they or for

Jason Fraser

they've statement our this think From being administration has thing story the nothing And all is source do one the from one economic administration formed their understand read impact reached into or don't we shouldn't an to too we don't of the a a the changes, I yet. And anonymous Sure. conclusions much of come potential discussions, policy. but as think yet. yet. with is Okay. conclusion there They

to that the shut supporting some lax were experienced very that or building was lead upfront, committee. in it would word that the they type was, that be but and Now down or like of context to within looks seemed clearly enforcement delay phase it

that basically with that data-gathering. proposal delegation actually were this only something into U.S. conclusion we Importantly, of morphing dealt supported told the

don't or they're position ongoing firm They firm discussion. understand have and trying yet yet a an commitment So I just the think situation. to it's

Paul Y. Cheng

authority out curious the out executive have option just Jason, could use drop that want if get the House the President the even White ECA a with Can U.S. that staff, in he the conversations out come does just have you occasion saying to? nuclear destination. order any that to as from

Jason Fraser

the And pretty to treaty that you tried this can complicated, tell having lot that kind about I around think this is sulfur we've have international extreme. months option would is notice law. the deal yet, along of is if no understand discussions the pull complicated. anything all VI, point And that the It I it. he they're of don't a is And the to on treaty, or what doesn't have pollution narrowest the to of XX we're pull sounds there the MARPOL out out experts out definitely He we've go air just that entirety would Senate pulled or Annex treaty not could been of of certainty that XXXX whether of take IMO like able although could U.S. and it. is, thing the the approve could with entire Annex. pull out requirements. which marine, covers glean, But international or to you with, the he very It entire regulation. the

XXXX the ramifications sulfur, would regulations. go the way beyond the So, IMO

it be it would spec. administration So, way have lightly taken that wouldn't by and the beyond ramifications

I So, been lot out the it take Even treaty lot complication if a is pull the to want and separate do of treaty, they if of provisions requirements incorporated of other see have would you the or into of did regulations and thinking a the think statutes. federal that.

withdrew President treaty, act an from statutes can't be Congress. the changed if even So, of by the the except

still place. would be they So in

long road. a process So, to it's that and down messy very go

Paul Y. Cheng

roll other have find either for or you it's expensive, run able the And you this to as it like no question VLP, then the to just on result reporting it my Maya, be format in Gary very the that separate you now? Lane. longer item? find seems would all? refining that far of you. companies VLP do of and attractive Or alternative And or is be will can you a more Thank you maybe – everything at attractive, second a final, changed maybe that priced the for is Thank you that after roll being it's into running are logistic report you.

Joseph W. Gorder

Paul. Thanks,

Gary Simmons

conversations the you. that thank We havoc spread not and fuel Paul, with several has competitively and Cushing priced volatility so market PMI. Maya certainly question, Yeah, the getting certainly would formula Brent Midland say the along on is with wreaked strengthened between Maya today. in we WTI the had in Maya

our Gulf well they barrels that to priced aware Certainly barrels I buy adjustments that from off are it in is will we Gulf of we barrel the not are also not The marker think relevant heavy system, their U.S. heavy used be. think and U.S. forward. that to Maya Mexico. they barrels the formula the make the Coast Maya. as Coast Maya. into are of and been are the we has over for off Maya remainder are competitively Canadian that priced as barrels not move priced only crude sour that the a heavy as get $XX advantage sour Today, really of $X I

to So, incentive heavy good systems refining crudes but not today. agree, priced we our into push Maya a competitively sour still see is would I

Joseph W. Gorder

question was then next the relative to... was, fourth, guess And I your Paul

Donna M. Titzman

reporting question. Yeah. The segment

something is at. listed. moment don't segment a have of this reporting VLP you looking So anything We we publicly to but that once with evaluating assume process that forward is we're share the no longer going at

Paul Y. Cheng

you. Thank

Joseph W. Gorder

Okay, buddy.

Operator

of question ISI. comes line next our with And the Terreson you. from Doug Thank Evercore

Your now open. line is

Doug Terreson

Good morning, everybody.

Joseph W. Gorder

Doug. Hi,

Doug Terreson

be specifically, be seem fundamentals and market the on views your demand net direction. gasoline, to while both get for converse exports inventories right seems to for although to the in distillate pointed pretty wanted positive, true appear and I

sort. you demand North we And market demand for are the in in price regards the in whether America some months, and demand are regional these destruction products. allocated somewhat that question guys trends and that sense you Latin my has America also two any in So, of really seeing recent domestic involved whether

So, just gasoline and kind distillate of an overview on please?

Gary Simmons

Gary. is This Sure.

expected is this it to I going be think, into year. where basically of we'd demand kind

inventory so. X%. real we X.X% year-to-date, gasoline And increase X% bit over The a high over demand And about demand, little and in had is we've increase you've were up a XX% to refinery an higher increase than even in refinery to With utilization, had you've about side especially gasoline surplus it last that build. very compared year, production in it's X You've demand the utilization, is where on utilization, production caused about though averaged last of year. X in refinery surprise, where just was had growth the year. last

gasoline As cracks we quarter, into fourth move the I weak. very you've seen think get

move even butane transition weaker further And as slow that the to of out out the pool. season, as and into have also gasoline. you production see Some is potential then gasoline you demand of RVP driving get the for typically you move into you

Doug Terreson

Yeah.

Gary Simmons

last our the very three gasoline a couple seen is in American inventory very good grown In has are gasoline to, strong think, in a row, what that I weeks weeks to of lot exports. alluded million of barrels being and gasoline demand. the there few exported. In the due X about day last system, bullish a we're we've averaged a you signs we've of market, in South actually seeing

Of course, they're America moving in. South in

there's we five-year and of season, average are days at supply which look been the exports gasoline of gasoline range about those on So, crack. driving take a supply. when into account, the you supportive you days on And parent basis of a inventory has summer

we looks margins side, of set On getting looks have it be at, like Europe last I've the hydroskimming turned some like well. hydro the as Northwest supply data In it negative. help could looked

Doug Terreson

Yeah.

Gary Simmons

getting U.S., as – advantage on supply very about the challenged in the Conversion hydroskimming U.S., cat reformers if you have well. seeing an economics refinery, breakeven. conversion and margins economics those And the even crackers. are we're refinery crude are In don't tight even

gasoline think some market. the off you'll see I come So

indications front last then see some significantly. to down drop you're in Gasoline to BOE I some be of fairly run are an And of did you're starting that significantly. Brent yield from the to fairly in think, Contango, well, that move In the part getting stats, curve. cuts fact, the it's cuts pressure industry indication week you see may curve Brent drop the gasoline some of starting as run that backwardation

Doug Terreson

you Can on Okay. well? as spend second just distillate a

Gary Simmons

Yeah.

think look supply we're basis, I low. distillate look very absolute basis an a and at So if distillate on where days both certainly of you inventories on

Doug Terreson

Yeah.

Gary Simmons

year. been We really replenish since able distillate just last haven't to inventories hurricane the

see domestic as export distillate. the if Atlantic refinery We distillate side, And oil in some you well. do for supportive well for offline to demand the think, very heating Then I good expect get that as some because some of production Basin to demand. moving you'll cuts hydroskimming distillate demand very refineries continue on be into market again distillate certainly run we well, the you're of season, be even strong distillate would more as as take and will the as

Doug Terreson

lot Thanks Sure. a guys.

Joseph W. Gorder

Doug. Thanks,

Operator

Thank Doug you. the Merrill Lynch. Bank Leggate from of question of line And comes next our with America

is line open. Your now

Doug Leggate

Good question Thanks. sorry one first my Joe, everybody. morning, I'm as is an IMO well.

White and situation wonder I relates Jason, line. the Paul's on on. as about could being House think I if question advantage take it I to so the the Jason of So earlier

you trying have might be around. to eased the that method over Our understanding of – would ultimately the is on kind about just from come as of the if done evolves U.S. rule or pulled mechanism which that could you penalties does out any to be states. it's or Do any making what on really not, I'm down thoughts signaling enforcement work the it the think next really thoughts the is appreciated? have the how months? member whether really they to XX a And enforcement one

Jason Fraser

and spec, already shipping That's all the tighter component shipping in works flag sulfur place, enforcers if it historically right. that enforce the to didn't U.S. rule The from covered the think you're the the X.X% U.S. the is I want wherever of of seem help right, have to to fine been about ships, U.S., to the U.S. like authorities and Coast that now which Carriage the and we to going has only it, also have we of enforce No, EPA. to coming it. shipping rule And and how in said that is especially that's and where Yeah. voyage, the within involved end state to the would the the would other state it zealous and the the port from, stuff the MARPOL most Guard key the with Carriage be through and by able it's has and be enforce ECA. one other

if very say you'd uncharacteristic even mechanisms us, to do in be there not enforce, U.S. should lot a would place chose the So, to which of be of still it.

Doug Leggate

it years. to see a of side? is There is And of an related, may, at go cat some a market, is is kind the swing distillate the I'll Okay. A – to question the Terreson's the perhaps gets moving the European gasoline of second in that happen of It's whoever how wants you European end one was feed an resolving related lot guess, kind the is do refineries way a it of consensus, if it bunker thing for to also of but Gary, parts, it How going market. our I if up understanding out. expectation utilization plays it, Atlantic to market broad question Thanks. But the about XX is see in, solution year. Basin there's fuel there. offset, at same time sweet a U.S. as which to markets IMO, to chime tightness impacting best and Europe make my potential going viable gasoline to let's face the next this is to leave I I its in lot may, into the really we'll to Doug and that to crude the is there light maybe

Joseph W. Gorder

Thanks, Doug.

Gary Simmons

you way Yeah, it is we to very characterize I see way it. similar think the the

reacting market it fourth market. it's more going gasoline months, next the certainly as several sweet to more looks growth. quarter to them for run refiners quarter the And you the with And I remain change European get have to weak. up gasoline back pull gasoline like start the U.S. some think, the cat of put out you through is bunker on market, really quarter some the fourth the start getting tighten first potential to the into for you the of to people when start IMO demand certainly and light to crude, into VGOs balances along and

Doug Leggate

So diesel risk IMO as margin on demand? upside does it to the that potential cap relates spike

Gary Simmons

don't really that what you're know that spikes. really don't it Doug. No, asking, I understand I I know

Doug Leggate

back weak perception solve feed on into that of high spike oil from gasoline that on the marine markets, So margin away doesn't from is the the part fuel back sulfur cat we're diesel. if cutting diesel of problem? swing But

Gary Simmons

Yeah.

of forecast that we think, marine market for Combination happen, will the shortfall of ULSD think and with says of going will as I well. but marine fuel in the pulled that the market. the that to out that it make being up sulfur high help most the the bunker

Doug Leggate

All appreciate fellows, Thanks, parts. right. the A lot of answers. moving

Operator

you. Stanley. comes our Morgan And next of Thank with from Benny Wong line question the

line now is Your open.

Benny Wong

Hi, thoughts was you year. good I around morning. your plans Thanks, guys. wondering, share could CapEx if some next

spend around longer the looks up business side, growth How evolve new just logistics business any you business and your between allocation that segments? will term thoughts rolled if that that and structure? the the particularly the on with may coker split? Now how And with

John Locke

out there Hey, We guidance really is capital our have for XXXX. Benny, this don't John. yet

logistics out on have strategic XX/XX there I If plan, in only we projects you gotten this mean but here it's years, bigger done of we've the look been set guidance at sort of that's couple obviously, allocation refining. of part we've last in and year. what this the

Benny Wong

Okay. Thanks.

Operator

our comes next And the Credit Thank Gupta with Suisse. line question Manav of from you.

both more question LLC can the (XX:XX) assets understand Atlantic it - an Your the the it question. very IMO I on light-light strong Hey guys, color Credit line Atlantic really the was North equally region? contributing? was European is cracks (USA) Suisse the or don't the to the capturing on city benefiting My strong also the from Gupta now is provide Or open. it side. Any very spread? performance just Manav I wanted sorry. on Québec Securities on North results well, was you have

R. Lane Riggs

Lane. this Manav, Hey, is

wide to We region this our really out that invested TIR our crudes Brent strong So only world. access was line crack in. distressed really reversal we our that of what saw Atlantic sort coming you had the the and to of attainment Canadian in North it's exposure X of

that drove also EXX there bit run what but was recently it's rate Suisse small those lot but were to concerns might - you up to not into Securities material be I portion There could the views result of that. Manav Trump Gupta please? think. color very a you demand, that and as going EXX, the of really exposure only was know challenges a little by it on President that have strong one So crudes, eat of people us to of sir. some a price have also guys as are follow-up more so not as give gasoline that to LLC announced And some to (USA) if Credit

Joseph W. Gorder

Sure. I'll let Jason that. talk minute to about a you

Jason Fraser

Yeah.

EXX making for next offer the list. top October RVP engines about We the they related something when now only in figure is compatibility. Questions waiver. House have lots there's varying just big to it It's you demand. were or all, stations. the the a station. been little to there's U.S. And that legality White Back fuel, about this have a have money, X,XXX EXX have penetration. questions, reasons on of to basically of at equipment consumer some to But fighting guys the you X% But the summer. about off of this configuration increase in rule. already. waiver warranted an will And time. out the that to this and have you money their concerns for what stations to have some to of taken take to of the risk There's in it's right. aren't the Not to there just for announced kind get EXX, EPA spend You're But it long issue. brings rule a you of if – liable depending for don't who's of money there's a spend. ethanol be lot us ethanol EXX Retailers of are to hadn't be capital it's to have going your been about – first to think And not spend and going sudden RVP XX, start place going direct in

is about EXX, the the by itself. think in authority of people grant waiver people Now, EPA this RVP because RFS there going waiver a it's they also EXX to statute Congress a debate the then has whether included done for RVP like to that actually the is lot and to big some do think be for have

is get So, take before this. lawsuits people authority rule to the to EPA's And through to is couple this the going a you one final its whenever final, lot do work bunch to a there's be that of answer. years is a for suing, of way thing courts challenging EPA going goes certain a of

So, one EXX. these money to to retailers now offer to into yourself shoes who's of put spend of got able

with because going couple in may you're having to risk the capital a court Now, the of spend years, void money stranded it.

– was have effect that's type think which Credit LLC guys. - – to will about very just keep problems EXX Manav with the (USA) going very you. This insightful. Gupta talked along rollout Thank I Suisse capital the with things aggressive, from some Thank a on lot. So, chilling you be keep we've of general being Securities the rollout, a

Joseph W. Gorder

Thank you.

Operator

comes Citigroup. with from you. line And Rao Thank next our of the question Prashant

Your line open. is now

Prashant Rao

question. Good morning. taking for Thanks the

Joseph W. Gorder

bet. You

Prashant Rao

the Just appreciate side. there drill product on what Atlantic of of wanted just on on I down to Basin. sort circle that I back strength on the to Part the wanted the was. the color pad –

your product but understanding get on just the You're an get dynamics through able the versus also up, there's that to distillate then been if to to pricing wanted basis to gasoline anything there, that margin have obviously you go-forward that yield they're side moves on down, in there? or broader volumes market think helping realize And able to dynamics? a how about do regional optimizing

R. Lane Riggs

Lane again.

we the the for very the depressed makes the would have a a sort of I crack being the that mean, way as only very, to a market you outperforming has Québec our all get in it only distillate runs. high gas heat have is yield know, it other relation well. into late. configured, very that think, I make will of we comment refinery that – that The time refinery refinery, crack the heat I crack And crack the where kind gasoline here perform is crude of

think So in that when big the for one that's performance is distillate drivers of you that about as area a forward, base going yields. Québec's that really

Prashant Rao

ask – and And into the how transport Charles. volumes. also Canadian rail Coast I more near-term was question, and my incremental about IMO hearing been an wanted I was a guess is we've WCS heavy then Lake to Western to follow-up short, lot looking just but Thanks. maybe the plans, not Gulf Okay. it getting down to XXXX if and

wanted the expect. you this or update just have an So thinking I'm longer-term with to also on I to about if decision? there we coker color Arthur respect any see what Port can

Gary Simmons

Yeah. is Gary. This

We're the I think, some. our Western really to the you'll production volume rail in quarter. barrels continue certainly think on market third Canada. ramping XX,XXX depend to constrain. term, up you're And I We about see the short day did clear going in rail to in a that

market first in a to projects looks in a expect be looks fourth that Western you Replacement be I you're Enbridge get next like X see XX,XXX of And for the like, differentials, being think it shift to dedicated early additional would year. before day would year. opportunity late going Canadian up quarter. We looks done. the earliest meaningful one And which next it pipeline that rail some happen there's that like have project, barrels the the then the the to that Line to would to But have

Prashant Rao

Thanks much gentlemen. Okay. very

Joseph W. Gorder

you. Thank

Operator

RBC from with Thank Capital of you. And our Brad next question Heffern comes line the Markets.

Your line is now open.

Brad Heffern

you. could in potentially wondering the IDRs a minute other Joe, doing I VLP if then some everyone. prepared the walking I quantification to in Hey. you if flow be for cash your buying that options give are comments sort rationale that versus some with available through of was Good spend additionally, you something just was could so morning, wondering or that? you And of will synergies mentioned there and

Joseph W. Gorder

Yeah.

with the original to the to projects at take But used plan I'll VLP, supported business. for and to the let capital the first core part second You a, chain or benefit always subsequent Valero and Valero I'll if it did Valero's supply bet. it take into whenever we've drop with a going and you back forward. project does at MLP cost VLP, go integration VLP that lower its Donna develop structure was we to And help part.

started. was that where we So

there. it got We Okay. out

us markets And corporate clear to as MLP VLP's this we changed were low a VLO. a the and cost appetite a self-funded the also the line to X% great a high-growth to executing sponsored we promised. significantly base yield equity with We driven was Then assets at MLP investor logistics rights. that have enable had ratable growth from sub equity sight drop could higher We capital and than and with opportunities drop-down governance MLP of model of of provide that on down growth.

year design our none. that change a back a catalyst for watched original looked So would or any at we to and We're support we for this more. saw very carefully patient. We shift

premium buy-in. market a agreed the trading every the looked So get get VLP Valero stockholders in owners option. the was to both at and for Energy We that VLP average accretive transaction. and we the unitholders outcome available best an VLO the

to dealt are grow So it we was we to was to able hard which a retain a had that entity and it. and problem which it's find that over very out needed got weren't there an we with had, that we or win-win, control we've

to second So, Donna, piece? take the do you

Donna M. Titzman

the option regard to we've... that In Yes. other

Joseph W. Gorder

Yeah.

Donna M. Titzman

that the to of so in still doesn't equity issue a fund you you talks market. of know, wouldn't market IDRs, the to because able being the underlying about growth solve at have unfortunately lot eliminating had looked the been access we've –

are that to chose converting options we've seen MLP's corps. Some other C

and primary to that refineries didn't of want them our put over Valero lot absolutely a we As us, those maintaining Joe are into assets and the control key support assets. structure a key MLP mentioned these over is jeopardize maintaining control to to

So doing took time we different options of at our looked lot a Joe so. We as indicated.

coming at shareholders the both of was options best of market or and buying all the we we the this the the also all recover thought for at Valero. to have MLP anytime We looking – in not whether soon at and really back equity kept of year the solution unitholders spent last would

Joseph W. Gorder

in every circumstances. individual might unique to know, it's You consider Brad, that interesting that solution their one is

like it choose opportunity. else If enough somebody or we might we would've the it do to do it afforded had small us probably to this differently. do have opportunity this differently. was something huge, and had VLP wouldn't to And was it

right to made do execute decision that to we think we the ahead it. we such anyway and decided now and able So we the it go were timing was

Brad Heffern

synergy then quantification the benefit? of any And Okay.

Donna M. Titzman

from costs – places. company simplified just a the administrative large piece the unitholder Obviously that. equation. lot – of out the And structure is public of coming piece public lot unitholder of distribution a cuts is The fund a different of leakage They're cost of that. another

Brad Heffern

Okay. Appreciate answer. thorough the

Operator

And you. with Low Peter next Thank our from Redburn. question line comes of the

Your line is now open.

Peter Low

Thanks for taking Hi. question. my

expect the future? the do just us space it the from quick was talk million you on a Is we ethanol future biofuel working behind look color hi, is Thanks. quarters? that the perhaps should the to you'd the – the the release, whether capital about first in a And second give simply prices? to build. just And more deals unwind of oil $XXX a impact you one. Can in the In is more First rising that? So one one rationale acquisition. just strategic on in

Martin Parrish

Sure.

time, this We of you if our a back view a at look ethanol, is and to gasoline in long-term On strategy. it's right, the it's for the and part ethanol, Martin. take pool step long a core this. at be And going

the opportunity quality came three to up plants. So buy

ethanol most octane competitive the in see corn the world. We it. source took we So as

demand ethanol to grow expect We globally.

production XX% going this slowing big growing production at down. domestic about up If be slow X.X%, you X.X% about you Exports been will last is for growth year, the this year in years. year-on-year so production are they also increase something is of see exports, has look X%, that to that a three at year to XX% and

some improvements. So start we and supply get on improving will with the balance going to we think that are margin demand things

good an to So it but was XXXX acquisitions, in it at it. ethanol for was one our just, just last became and we're we us, opportunity always looking looked took and

is to and be biofuels that a On year Diamond this mentioned, looking the the of Joe that's before what future, will it. the coming space and decision will then in thing at other continue too, the the obviously on in Green look we Diesel up we're the end

Joseph W. Gorder

working then you asking about were And Peter capital?

Peter Low

That's right.

Joseph W. Gorder

What sorry, was your it? question again, just repeat

Peter Low

was I build is should kind It expect quarters? we million. so prices, there's few a wondering, oil the in just quarter, was, big effect about quite that was of unwinds of simply $XXX that over an rising next the

Donna M. Titzman

some volume reverse will That portion price combination impact fair and that some and there be that itself. of was a a should of

Peter Low

That's great, thanks.

Operator

Thank you. next Sachs. And our Mehta question from comes with Neil of Goldman the line

open. is now line Your

Neil Mehta

team. morning Good

the Arthur Can spending either IRR incremental economics bit was sanctioning and talk First or basis a little it? it think we you the about of around the decision EBITDA project. capital on question had about an that for the you're I Port How there? around coker should

R. Lane Riggs

this is Neil, Lane. Hi

in Coast. optimization refiner is coker. of the was Gulf This our flexibility, the in So, big amount term of a this really our And certainly question it's and benefits and of sour the an a sour addition two feedstock sort caller two efficiencies. into benefit that there earlier to flexibility. Gulf view Coast with had that a the – there the our like in to exception around view a is how turnaround heavy overall heavy train of Canadian are to today, We'd we of longer the feedstock the that asked from is secondly, Coast, almost considerable One Gulf going be just twofold. was fits our

turnarounds to separate So prices certain to efficient manner. anytime million additional is and by this mid-cycle we're mid-cycle the trains to separate that this EBITDA, two taking am IMO. include lot in is and doesn't having do characterize synergies execute a we and think saying of offline respect I'd more With I EBITDA preface going it to that using finally turnarounds, units into build around there and essentially refinery $XXX a

– been saying optimizing IMO make is always very got upside been vocal an outlook this much project. system. million XXXX This IMO universe. our Obviously, an we've case, lot our to So a not if is $XXX really in about is it's mid-cycle our then in of we've pretty

Neil Mehta

light Lane. to year on the beyond to a I how And that build then the level barrels. the term? Brent/WTI then six but very the is obviously you it's job wide done a evolving is follow-up that appreciate economics, this in Diamond again through of at have guys potential is, the good next question. for differentials. Pipeline see second access arguably Pipeline There with intermediate and just through a transportation to that those over parts the Cushing spread And the Sunrise or the One getting is to the whether two months actually do you with

evolving capture So, can you are system how you just talk those the to about inland discounts?

Gary Simmons

Neil, is Hey this Gary.

of with to and currently Coast Cushing for then projects us. start Cushing Cushing on Gulf to production see access Sunrise beginning I to get our get that down, you'll see the barrels Sunrise X around when I think then PADD have of think going significant to Yes, the back the all to Gulf way away through barrels, demand some point some we forecast Permian see a uplift really large to to barrels Pipeline Cushing come but the year of to before and you that as most Cushing the system, Cushing, to the Permian you have build which shows make allow year production Diamond increased late our next the and continues to and been Line are certainly to I their the of pulled up will next and to more draw and increasing back, again. some Certainly, X Midland you start the hub. wind Midland turnarounds clear and have get that has

Neil Mehta

team. Thanks

Operator

our with question of Thank Paul from next you. Sankey And comes line the Mizuho.

now Your line is open.

Paul Sankey

Hi, everyone. morning good

going for here simple I For when of to wanted the to simplify we that just a of sort day barrels whole question, number get XXXX? the assumption are question? to affected IMO what's the IMO, to the be your for make it current

Jason Fraser

Well, switch I to has absolute majority is of know roughly that of that don't and have million day to a we X.X a barrels Bunker Marine is we view that an spec. consumed being number give. There the X.X our

Paul Sankey

essentially through project IMO not And guess although considerable to the I at Yes. change you're is the coker scale said you essentially basically? expecting related, go IMO

R. Lane Riggs

this go Paul, will ahead. We believe Hey is IMO Lane. do

upside didn't view. XXXX. our this fund see We that's we of that. project think of But we on I or lot a see didn't do of because We a upside. IMO lot

Paul Sankey

Right.

So, keep is given spread VLP you heavy midcycle follow-up assumption, for then light you which Is I about on could little buy you And and a talk thought? as the investment? was rationale being bit the the that it can MLPs have a now? based referenced actually just, the going takeback, a Thanks. that one

Joseph W. Gorder

the primarily consider domestic and that to XX average Brent/WTI of for XX, full-blown the had to last crude the is scenario, market, way a ago is Midcycle blow it. few what out we're out the a absent dislocations cycle we sort of define sort last Midcycle years of say major to I'd the just trying midcycle. average – we be in when to out example, say we years of a the be refining we sort capture so we I what would consider pricing throw

that's how price So we it.

Paul Sankey

Sure.

Joseph W. Gorder

Paul. you a got Paul, All right, for Lane or... follow-up

Paul Sankey

that and about going some to maybe idea you I MLPs? No, this keep going buying ask was

Joseph W. Gorder

one opportunity honestly, We'll the then VLO assets at now VLP. that drop those, to those opportunity in mean, at look to at and We looking it's could And Well, that I both, MLPs. – them. look quite I scratches will would say we've we're right. or always gee continue had have subsequently view don't with specific here I hard and up to of done But we is it we roll space there we what logistics certainly the better access provide the I access general whiz, of point Otherwise, crude two think itches out that where to saying, extent that more that out. our really not and and the refinery and a there go for think I an feedstocks need moving into again products markets that focus is it. assets of need to think

Paul Sankey

Joe. you, Thank Understood.

Joseph W. Gorder

You care, bet. Take Paul.

Operator

Craig of from And Brothers. the comes with line you. Tuohy Thank our next question Shere

is now open. line Your

Craig K. Shere

morning. Good

Joseph W. Gorder

Hi Craig.

Craig K. Shere

acquired you post the opportunity Could Peru? Mexico opportunities the comment, margin? And and all relating implications in for through export potential on last the investment? buildout on to the of on and Peru assets and additional American could for the Latin both elaborate timelines walk contracted opine you Joe your Maybe volume infrastructure

Joseph W. Gorder

As timeline... as far

Jason Fraser

As a as acquired timeline, it's is terminal... we the There far terminal, operational. second

Joseph W. Gorder

That's Peru.

Jason Fraser

That's the in in Peru, there year. a northern quarter of we of sorry. second that be first I'm part and is Peru the next of are reactivating that terminal process And should

Puebla is of in So X.X the the of storage facility receipt end barrels of Mexico, be should which in we'll Veracruz million Peru. in have over barrels X million And service first terminal, about this combine [XXXX]. (sic) of XXXX and quarter quarter year, (sic) Mexico which should the first end inland and of [XXXX], be between XXXX XXXX of terminals early City the then

Joseph W. Gorder

Okay.

in Gary, to No? other Okay. And that? look continue we do or internationally. that. any Rich for the opportunities that's you have do So to a ground on then put Craig, stake comments

Gary Simmons

No.

Joseph W. Gorder

Okay.

think an So team's got business. really we'll and my the and Peru now part continue we entire look – bought focus the I is, terminal in okay, focus we've of to right

of we've to while maximizing that associated terminaling takes And not is your things Gary only around – that sure but get it marketing we the the value it. be that. a running was and to got with So we're a got arms business operation,

to allow move right then we're to plans South So but we'll now. of specific And try to to ground at in that for the America. down looking western the coastline continue opportunities look coastline the the as to think potential on road, us eastern to stake no do more a I

Craig K. Shere

you. Thank Great.

Joseph W. Gorder

bet. You

Operator

with And JPMorgan. our from the of question next Phil comes you. Thank line Gresh

now is line Your open.

Philip M. Gresh

good Hi, Yes. morning.

clarifying couple of follow-ups. a Just questions or

between opportunities string recently. ethanol and obviously had a be, would announcements the one you've growth VLP, plants of First the in

this And recently? point? just like just other that then of kind but just at? looking been clarify you key yet, there to generally, have that's with existing do just happen mean is framework? I that just Or the I of know there of guidance, out one trying And this budget specific a things opportunities that fund up came you organic XXXX string think there guess out to construct I the capital – don't I feel questions are all give within Joe of can the of you're you want your can pieces you you to

Joseph W. Gorder

Well.

we're And allocation So, capital not guidance the though for haven't we deviating to answer provided from yes, framework. question your XXXX. even

our that that. not think ranges generally thought ranges we're with I deviating we provided we from capital and were

not opportunities I that's going timing So of the – these that to change. opportunistic. acquisitions say always are would

willing did seller. Martin thorough team the with evaluation on Rich's a good ethanol plants team so had And and his and we a

could see I if us VLO out equity years. we for it When market of so had had we basically buy were wait exactly there wasn't of And it. we mean numbers we time that. attractive did. and what broken going to VLP for to we do in an opportunity we've finally to to this looked move changed. do, that relative out expected but on wanted we to deals and a to have right, at a and concluded it timely the get do VLP that we what June, that's was very it's And were to patient. buy-in, The just at Again, couple the it over last happened

So come. more same certainly the happened at coincidental a of and these time things that is it things to sign

Philip M. Gresh

enough. Fair Okay.

I'm commentary I the I question do by world parts of midpoint second the of may run utilizations. at is on cuts. that fourth because a just Yeah, just the guess, think the type you're needing be XX% some to for around a the XX%, throughput guidance assuming quarter. little surprised Just

So I low guess, a obviously, Valero is refiner. cost

So perhaps it's less impactful for guys. you

just weak you in the out So guidance about now? I was your the throughput there gasoline wondering pretty think how context cracks that of are right

R. Lane Riggs

So, Phil, Lane. is this

and you it's throughput, when right. crude, about feedstock primarily think think I

of is comments think minus a particular North we Mediterranean So conversion to units sort so and Gary's earlier our a And Basin. whatever at breakeven are pretty around this are turnaround competitive in then we activity where see we unchanged and Atlantic are have assets time, hydroskimming region. that are, predominantly outlook weak starting economics Europe on not our margins see margins Western we entire hydroskimming margins. in the

affects throughput next So for the we'll just kind our see we was universe this our of the how that – three what how time we gave reality, months. that in the saw is, but at guidance

Philip M. Gresh

Thanks. Okay.

Operator

Thank you. And our of comes Chris from next Sighinolfi with Jefferies. the question line

line open. is now Your

Christopher Paul Sighinolfi

allocation. color But developments, opportunistic acquisitions I are by Thanks share realize just investments, curious has quick you're some seems guys. provide historically. a your guidance. not how questions about recent could. you've deployment. buys I in influenced we're like leverage there's obviously obviously Hey. around opportunity capital price The Good for provide CapEx not deviating pulled organic it the the talked XXXX capital views morning. been back some and also, to for historical and added all follow-ups from Two position on if approach Obviously

us leverage? revisit can of just sort views remind consolidated So around or you

Donna M. Titzman

Yeah.

to So at is the our XX% the lower we're for XX% XX% leverage that. and at between to lower – half of target

to we're talking things today some fund well large capability. as lot of a the as have borrowing We about that balance a cash

Christopher Paul Sighinolfi

Okay.

with feel change it. that, in no So, comfortable

Okay.

Joseph W. Gorder

No.

Christopher Paul Sighinolfi

all. But the operations a EXX ethanol then views really Also your approval additional might own also up the impact on just appreciate views. at following potential helpful. curious And They're around any question, how ethanol President's I'm market proposal of the if acquisitions.

noted I think your a Joe in remarks you as Plains had condition. Green plant federal the review prepared acquisition of

market think any I'm any if might there's that at wondering So point you you into. just run concentration issues

Joseph W. Gorder

Okay.

Martin Parrish

on go what is doesn't say that. penetration be it very really thought measured going would It's with into I States. the United the along our ethanol the to on said Jason slow process market impact Martin. any, EXX, this in Yeah, production and here

looking we're things. it doesn't how impact So really at

in as mean the the are XX%, them. As still at far future States. of only I looking largest acquisitions, keep the market space producers XX% we United

So not it's probably issue. an

Christopher Paul Sighinolfi

Thanks Great. lot added the guys. color, for Okay. a

Joseph W. Gorder

Thanks, Chris.

Operator

the from you. Thank line of with question Gabelman Jason Cowen. comes next And our

is line open. now Your

Jason Gabelman

I guys. ones. could it two quick going? How's Hey ask If Yeah.

looks has a just cash working X% was over it demand wondering growth a months. around seeing release. to could was any year-to-date, $XXX secondly Are addition press referenced been past similar on drag kind the trend? the cash on additional like you you unexplained provide It of just an the drag Firstly, seems growth if Thanks. from And that that? then that million in bit I in ops. there of I moderating commentary you like capital of know couple growth. gasoline but was

Joseph W. Gorder

second to first? want take the one You

Gary Simmons

Hey, one Jason. second let's the first. Yeah, take

Joseph W. Gorder

Gasoline.

Gary Simmons

volumes our I'd you only that Quarter-over-quarter had Yeah, through the is so visibility real we tell on were demand, to gasoline wholesale X%. that up channel. our Okay.

wholesale the about looked We only growth. better did see we in X%, storm was our at to like third in So volumes the second from slight It that. quarter really Southeast was to but we where than reduction attributed quarter related. demand demand volume grew most and lost the of

Jason Gabelman

it. Got

Donna M. Titzman

and pension lot cash the the plan $XXX a about of rest a question we the it on to miscellaneous our usage, made And million of is in items. just remaining contribution September, about

Jason Gabelman

All Thanks right. Great. a lot.

Joseph W. Gorder

Thank you.

Operator

Thank Holt. you. comes Pickering, the line Matthew final with And from of Blair our question Tudor,

Your open. now is line

Matthew Blair

that any like mentioned small near-term pipeline pipes, everyone. volumes. back you commitments on to I question future have made Prashant's expansion? WCS, KXL, rail was morning, we should you the Coming increase or on in transbound the expect Good wondering a LXR, Hey.

Gary Simmons

have commitments, with the do Gary. is any arrangements we when are producers would this some Yeah, don't pipelines in we No, pipeline have buy we those done. where but Gulf barrels

Matthew Blair

on back on a Any on West what's QX we Brent. Coast, saw to I a premium then going barrels pretty the expensive ANS color ANS? with today, and Okay. And think versus we're in then

Gary Simmons

that the the Middle volume from the market impacted some the by East. was slowdown think I most Yeah, actually Coast West of

Some kind of of the Saudi Coast pressure ANS. took barrels and West off went out Kuwaiti barrels the the that to

takes it some see So, way those the West of to Coast, making volumes the think more off up I ANS. barrels of back and ramp the Saudi as the pressure of their we

Matthew Blair

you. Great. Thank

Operator

that the Thank conclude John Mr. and call Locke you. return Q&A remarks. does for like And I'd closing today's to to session any

John Locke

in calling this Thanks Andre everybody morning. and for thanks

any please the you. you IR questions, contact If have team. Thank additional

Operator

conclude conference. all and may Everyone thank does you in disconnect. have Ladies great and gentlemen, the program today's for a day. This you participating

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