Mike Hennigan: Yes. Paul, first off, Dave Heppner’s group is constantly looking at the market and what assets are available I always say I never say never. But in the meantime, while Dave is working on that side of the equation, we’re also looking at the footprint we have and the assets we have. And that’s part of the reason that we came out with the announcement today. Two of our key facilities, we think we can make a meaningful change. And we’ve been more transparent than normal to try and explain to people. We think we got north of 20% return projects here on the assets that we own ourselves. So, there is always a balance call between, obviously, the assets you own, you know inside and out, whereas the ones you’re evaluating externally, there is a little bit of concern from diligence, etcetera.
But I will tell you, I think people know my DNA in general. But at the same time, Dave and his team are challenging where can we make investments that are outside of our portfolio. We haven’t done a lot, as you mentioned on the refining side. But we have made some investments overcalling low carbon. We made some investments in some pretreat facilities on the low carbon side. We’ve invested in an RNG facility. So Dave and his team are looking at both refining and outside of refining. And we just constantly talk about that and decide where do we think we want to put our capital. And for today, we’re pleased to report that we think we have two pretty good projects. But the other part, let me just mention this one last thing because this is kind of important.
On the slide where we talk about our capital, we say in traditional refining, we’re investing $475 million. Maryann mentioned that $100 million of that is related to the DHT project, but $375 million of that is what we don’t typically talk about on earnings calls. These are projects in all of our facilities that are higher returns, really good projects for us, but they don’t have the sexy headline about them. But if you look at it, though, $375 million out of the $475 million in traditional are these smaller high-return projects. So, the team does a nice job. Tim and his organization are constantly looking for areas where we can make margin improvement, lower cost, increase reliability. As you said, this all starts with you got to run reliably, and then you got to be smart commercially.
And I think we’ve demonstrated that a little bit, and then we just try to invest capital to keep bolstering that equation. So hopefully, that gives you a little more color.
Paul Cheng: Absolutely. Can I just go back into the commercial question? In the fourth quarter, you guys definitely done well in the [indiscernible]. And if we’re looking at versus the margin capture of 100 additional 22%, is there a number that you can share how much of them is coming from the commercial side of the business that you have done really well? And that’s why that you are seeing that much better in the capture. And also that I think in the past, you’re saying that one of the maybe Holy Grail for commercial operations is that you will be able to optimize based on breakdown the [indiscernible] and optimized based on the total company. Where are we in that process? Do you think that you are already there or that you are just still stretching the surface on that process?
Mike Hennigan: Paul, I will start with the second part. As I have said, I will repeat myself a little bit, but we still think there is quite a ways to go where we can do better, and that was part of the reasoning behind the organizational change. Brian’s role as global optimization lead is going to his team is going to work with the commercial guys with our refining guys. And you heard me say we define process, find places to invest, change what we are doing today. So, I think we have made a lot of progress. People always ask what inning or I guess it’s football season, so what quarter are we in. And that’s always hard to ascertain because I think we keep peeling the onion back and seeing that we can make another step change.
So, I am optimistic that we got a lot of road to go. And I think at the end of the day, our mantra is we will just keep watching our results and you will see what comes out of it. As far as the first part, it’s always hard. That’s why I am not the biggest fan of that metric. It’s always hard to differentiate some of the market factors that Maryann mentioned. Obviously, the fourth quarter, you get butane blending as one thing that enhances capture. But there is a significant, if I want to give some kudos to our team, there is a significant change in the way we are approaching the business. You heard from Rick earlier. And so I think it is additive to whatever the market has given us. And my thought is the way we have to run the company is we don’t control the margin environment, but whatever margin environment is given to us, we just got to deliver more results and generate more cash and more cash per share.
So, while everybody outside and inside wants to talk about that capture metric, I just keep looking at the one that matters the most to me.
Paul Cheng: Thank you.
Mike Hennigan: You’re welcome.
Maryann Mannen: Hey Paul, it’s Maryann. I just might try to add a bit more around some of the things that we are doing specifically around commercial performance without necessarily trying to give you a percentage. But we have been talking over the last several quarters about the capabilities we have built regionally, obviously, at Houston office and Singapore office or London office. That has helped us. That was laughingly saying to Mike about cracking the code on linear programming. But some of the capabilities that Rick and Brian and their respective teams have built historically give us very robust tools and data analytics that allow us to assess the decisions that we have made and know how good or bad those decisions were and what we might do with that to change it.
