Welcome to HF Sinclair Corporation and Holly Energy Partners second quarter 2023 conference call and webcast. Hosting the call today is Tim Go, Chief Executive Officer of HF Sinclair. He is joined by Atanas Atanasov, Chief Financial Officer, Steve Ledbetter, EVP of Commercial, Valerie Pompa, EVP of Operations, and Matt Joyce, SVP of Lubricants and Specialties, along with John Harrison, Chief Financial Officer of Holly Energy Partners. At this time, all participants have been placed in a listen-only mode, and the floor will be open for your questions following the presentation. If you would like to ask a question at that time, please press star one on your touchtone telephone. If at any point your question has been answered, you may remove yourself from the queue by pressing star one again. If you should require operator assistance, please press star zero. We ask that you limit yourself to one question and one follow-up. We ask that you pick up your handset to allow optimal sound quality. Please note, this conference is being recorded. It is now my pleasure to turn the floor over to Craig Berry, Vice President, Investor Relations. Craig, you may begin. Thank you, Audra. Good morning, everyone, and welcome to HF Sinclair Corporation and Holly Energy Partners second quarter 2023 earnings call. This morning, we issued a press release announcing results for the quarter ending June 30th, 2023. If you would like a copy of the press releases, you may find them on our website at hfsinclair.com and hollyenergy.com. Before we proceed with remarks, please note the Safe Harbor disclosure statement in today's press releases. In summary, it says, "Statements made regarding management expectations, judgments, or predictions are forward-looking statements. These statements are intended to be covered under the Safe Harbor Provisions of Federal Securities Laws. There are many factors that could cause results to differ from expectations, including those noted in our SEC filings." The call also may include discussion of non-GAAP measures. Please see the earnings press releases for reconciliations to GAAP financial measures. Also, please note any time-sensitive information provided on today's call may no longer be accurate at the time of any webcast replay or rereading of the transcript. With that, I'll turn the call over to Tim Go. Good morning. Today, we reported second quarter 2023 net income attributable to HF Sinclair shareholders of $508 million, or $2.62 per diluted share. These results reflect special items that collectively increased net income by $4 million. Excluding these items, adjusted net income for the second quarter was $504 million, or $2.60 per diluted share, compared to adjusted net income of $1.3 billion or $5.59 per diluted share for the same period in 2022. Adjusted EBITDA for the second quarter was $868 million, a 53% decrease compared to the second quarter of 2022. In our Refining segment, second quarter 2023 EBITDA was strong at $703 million, compared to $1.7 billion in the same period last year. This decrease was primarily driven by lower Refining margins in both the West and Midcontinent regions and lower refined product sales volumes due to higher maintenance activity. Operating expenses of $427 million in the second quarter of 2023 improved versus the $469 million reported in the same period last year, as we benefited from lower natural gas costs. We continue to focus on controllable operating expenses, as well as streamlining and optimizing our operations. Crude oil charge averaged 554,000 barrels per day in the second quarter of 2023, compared to 627,000 barrels activity during the period. I'm pleased to report that the two turnarounds at our Navajo and Parco refineries in the period were completed on time and on budget. We continue to make progress on our long-term reliability improvement initiatives. In our Renewables segment, we reported EBITDA of $23 million for the second quarter of 2023, compared to -$63 million for the second quarter of 2022. Excluding the lower cost to market inventory valuation adjustment, the segment reported adjusted EBITDA of -$11 million for the second quarter of 2023, compared to -$28 million for the second quarter of 2022. Total sales volumes were 50 million gallons for the second quarter of 2023, as compared to 26 million gallons for the second quarter of 2022. Utilization rates were impacted this quarter by two hydrogen plant turnarounds at Navajo and Parco, which are co-located with two of our renewable diesel plants. We continue to improve the performance of this business with a target of achieving normalized run rates by the end of 2023, which will allow us to optimize advantage feedstock from our pretreatment unit and improve the profitability of this business. Our Marketing segment reported EBITDA of $25 million for the second quarter of 2023, compared to $24 million in the second quarter of 2022. Total branded fuel sales volumes were a quarterly record of 364 million gallons, compared to 335 million gallons in the same period last year. Gross margin per gallon was also a quarterly record at $0.09 in the second quarter, as we saw strong demand for branded fuels across our regions. We added nine new branded sites in the second quarter. We continue to expect to grow our branded sites by 5% or more per year. Our Lubricants and Specialty Products segment reported EBITDA of $72 million for the second quarter of 2023, compared to EBITDA of $156 million for the second quarter of 2022. This decrease was largely driven by a lower FIFO benefit from consumption of lower-priced feedstock inventory for the second quarter of 2023 of $0.5 million, as compared to the $71 million benefit in the second quarter of 2022. We continue to look for ways to optimize the Lubricants business, and we remain focused on sales mix optimization of our base oils and finished products. HEP reported EBITDA of $82 million in the second quarter of 2023, compared to $80 million in the same period last year. This increase was mainly driven by strong transportation and storage volumes in the Rockies region. At this time, we do not have an update regarding the proposed buy-in of HEP, as we are still in discussions. We do not intend to disclose developments with respect to the proposed transaction unless and until HF Sinclair and HEP have entered into a definitive agreement to affect the proposed transaction. For this reason, we will not be able to discuss any specifics during Q&A. During the second quarter, we announced and paid a regular quarterly dividend of $0.45 per share to stockholders, totaling $87.3 million. Subsequent to quarter end, we announced earlier this week that we repurchased 8.2 million shares for an aggregate price of $411 million from REH Company. This puts our year-to-date total cash return, including dividends and share repurchases, at a basis. We've returned over $2 billion in cash to shareholders as of August 2, 2023. Overall, we are very pleased with our strong second quarter results. With the majority of the planned turnaround behind us, we believe our diversified portfolio is well positioned to capture market. Commitment to returning excess cash to shareholders has not changed, and we continue to target a payout ratio of 50% of net income to shareholders while maintaining an investment-grade rating. We remain focused on the reliability and integration of our asset base to further strengthen the earnings portfolio and free cash flow generation of HF Sinclair. With that, let me turn the call over to Atan. Thank you, Tim, good morning, everyone. Let's begin by reviewing HF Sinclair's financial highlights. Net cash flows provided by operations for the second quarter of 2023 totaled $490 million, which included $183 million of turnaround spend in the quarter. $22 million for the second quarter of 2023. As of June thirtieth, 2023, HF Sinclair's standalone liquidity balance of $1.6 billion, along with our undrawn $1.65 billion unsecured credit facility. As of June thirtieth, 2023, we have $1.7 billion of standalone debt outstanding, with a debt-to-capital ratio of 15% and net debt-to-capital ratio of 1%. HEP distributions received by HF Sinclair during the second quarter of 2023 totaled $21 million. HF Sinclair owns $59.6 million HEP limited partner units, which, following the acquisition of Sinclair Transportation, represents 47% of HEP's outstanding LP units at a market value of approximately $1.2 billion as of last night's close. Let's go through some guidance items. With respect to capital spending for full year 2023, we have lowered our total capital guidance range from $940 million-$1.15 billion, to a new range of $900 million-$1.06 billion. We now expect to spend between $250 million-$270 million in Refining, $25 million-$30 million in renewables, $35 million-$45 million in Lubricants and Specialty Products, $20 million-$30 million in Marketing, $40 million-$60 million in Corporate, and $500 million-$585 million for turnaround and catalysts. At HEP, we expect to spend between $25 million-$30 million in maintenance and $5 million-$10 million in expansion and joint venture investments. For the third quarter of 2023, we expect to run between 585,000-615,000 barrels per day of crude oil in our Refining segment, and we have planned turnarounds scheduled at our Casper and Tulsa refineries during the period. Let me turn the call over to John Harrison for an update on HEP. John? Thanks, Atanas. HEP posted another solid quarter of earnings, driven primarily by strong crude and product volumes in the Rockies region. HEP's second quarter of 2023 net income attributable to Holly Energy Partners was $50 million, compared to $57 million in the second quarter of 2022. The year-over-year decrease was primarily attributable to higher net interest expense. HEP's second quarter of 2023 adjusted EBITDA was $103 million, compared to $104 million in the same period last year. A reconciliation table reflecting these adjustments can be found in HEP's press release. HEP generated distributable cash flow of $73 million, and we announced a second quarter distribution of $0.35 per LP unit, which is payable on August 11th to unitholders of record as of July 31st, 2023. Capital expenditures during the second quarter were approximately $9 million, including $6 million in maintenance, $2 million of reimbursable, and $1 million of expansion CapEx. We ended the second quarter with approximately $600 million in total liquidity, comprised of cash, plus availability under our $1.2 billion revolving credit facility. We are now ready to turn the call over to Audra for any questions. Thank you. The floor is now open for questions. At this time, if you have questions or comments, please press star one on your touchtone phone. We ask that you please limit to one question and one follow-up. If you have additional questions, we welcome you to rejoin the queue. If at any point your question has been answered, you may remove yourself from the queue by pressing the star one key. We'll take our first question from Manav Gupta at UBS. Good morning, guys. We are consistently seeing an improvement in your capture rates, both regions, which is very impressive despite the turnaround. Help us understand some of the things you have been doing to attain this improvement in capture, which we are seeing over the last 6 to 9 months. Thanks, Manav, for your question. This is Tim. Let me ask Steve to comment on capture rates here. Hey, Manav, thanks for the question. I think it's a combination of everything. It's really around optimization, making sure that we're taking the right decisions to put the right molecule in the right market. From a margin perspective, we've had a bit of support. We look to optimize our laid- in crude structure, and take advantage of some of the differentials that we've seen. From an operations perspective, it's about running full, getting the getting the molecules produced and getting them out and, and to the right markets to get the capture where we want it to be. It's kind of a combination of everything. Perfect. I have a quick follow-up. You have a West Coast asset. It can run heavy crude. I want to understand a little bit, what would TMX be a tailwind for your overall crude slate as it relates to the Puget Sound Refinery? Yeah, again, this is, this is Steve. As far as the TMX is concerned, we think when it comes on, it will tighten the differential in the short term, but a few uncertainties include the ability of the dock to handle the capacity to get it off over the water, and then timing of production in terms of outrunning the capacity. We think somewhere in the next 3 to 5 years could be when a constraint occurs again and differentials will widen. As it relates to Puget Sound, that would be a benefit, right? If that crude lands up on the West Coast. Yes, we believe that's the case. Yeah. Thank you. We, we think that'll be helpful, Manav, this is Tim, because it will also put some pressure on ANS crude as well as, as they compete for, for other, refinery runs on the West Coast. Because our Puget Sound Refinery can run both crudes and can go 100% ANS, can go 100% Canadian, we believe it gives us an advantage to be able to arb those crudes, post TMX startup. Thank you for the detailed response, and congrats on a very strong quarter. Thanks, Manav. We'll take our next question from Neil Mehta at Goldman Sachs. Yeah, good morning, team, and, and congrats on a, on a good quarter here. I want to kick off on return of capital. A lot of moving pieces around share repurchases and the agreement with REH. Maybe you could spend some time walking the investment community with what's been announced here over the last couple of weeks as it relates to REH, and, and then talk about your capacity to continue to return capital to shareholders. Great. I'll, I'll ask Atanas, Neil, to, to start off, and then I can come in at the end and, and share some more. Neil, thanks for the question, good morning. Well, first of all, our business continues to operate at and above expectation in generating robust cash flows. With that, our commitment to returning capital to our shareholders remains a priority and a focus. As you can see, year to date, we've repurchased, with this latest announcement, 13.1 million shares. With respect to capital return to shareholders, we've said that our target is 50% payout ratio. We have consistently exceeded that, and our target remains to be at or above that. With respect to the family, we can't speak for the family, but we have a constructive relationship. You have-- you can see their intent to continue to transact directly with us, and we're very much open and keen on continuing to repurchase shares. With the HEP transaction, have been in, at times, locked out of the market, but we continue to look for those windows, and this most recent transaction is indicative of our desire and commitment to continue with our shareholder return strategy, and we expect to, to be on that trend- trajectory through the end, through the end of the year. Yeah, and Neil, I'll just- Oh. I'll just throw in a few more comments, Neil, that, you know, we've said on the past few conference calls that we can't speak for the family. The family decided to speak for themselves, and that's why they put the 13D out there. One board seat, you know, for the foreseeable future. I think that provides some clarity in terms of what their intentions are, and they wanted to make sure that was clear to the rest of the public. You know, we set our window to buy back shares was gonna be discussions. As Atanas mentioned, we want to reiterate our commitment to shareholder returns. We found an opportunity between the two parties, and we took advantage of it and executed. We'll continue to look for more opportunities as the year progresses. Thanks, Tim and Atanas. The follow-up is, it was a very heavy first half of the year from a turnaround perspective, and a lot has been made of that. As you kind of look through the back half, maybe you can remind us again of, of the maintenance schedule and how we should think about the volume trajectory through the balance of the year. Yeah. Yeah, thanks. This is Valerie. We have 2 turnarounds in the back half of the year. Casper, our Casper facility, and then Tulsa, towards the back, half of September and into the 4th quarter. Those are impacts are listed and accounted for in our crude guidance. The rest of the year is a clean, clean year. We don't expect any additional outages. Yeah, Neil, I'll, I'll just chime in. Val and her team have done a, a fantastic job of executing the heavy turnaround period that we had in the 1st half of the year. We, we knew all along that it was gonna be a heavy load. We're happy to report, as we mentioned earlier, that overall, the turnarounds were completed on schedule and on budget. In fact, that's the reason Atanas mentioned the lowering of capital guidance for the rest of the year, is because of the way those turnarounds have been executed, this year. Thanks, Tim. Thanks, Val. We'll go next to Paul Cheng at Scotiabank. On Refining, reliability improvement long term, I think you have said in the past, it's a, 5, maybe 5-6-year process, and you are about 2-3 year, into that. With a very happy turnaround that we are seeing, are we still having another 2 or 3 years? That you think within the next, maybe the 12-18 months, you will be largely complete. When you complete, on this process or the initial, process, what is the more sustainable, reliability? In a more sustainable reliability, what is the, target output per year that, we could be looking for? Also then, what kind of cost structure under that circumstances will be? Hey, Paul, this is Tim. You're right. We are very pleased with how the turnarounds went. We're pleased with how our capture is, is, is performing, as was talked about earlier on this call. But this is a long process, right? We've told all-- we've said all along, it's really measured by turnaround cycles, not by years. So, you know, we've been working over the last 2 or 3 years to improve our turnaround execution and to improve our turnaround performance this year. It just continues that effort. We are-- we, we talk in terms of turnaround cycles. So with a little bit more color, let me ask Val to maybe chime in. Yeah. Our focus and our turnarounds have been strongly aimed at reducing operating risk and improving our utility reliability, so that we have a more robust and resilient system. If you look at any Refining complex, the more resilient we can get our utilities and infrastructure, remove aging equipment, the better off your reliability starts to look. We've taken a big step with those activities this year. We'll continue to develop our turnaround strategies in the coming years to support a sustained reliability improvement year-over-year. Paul, one last thing. You know, you asked for what our target throughput is. You know, we in our mid-cycle roll-up that we put out there, we put 640,000 barrels a day as our basis. Of course, we think as we continue to implement these strategies that Valerie just talked about, that we hopefully will get to an above mid-cycle kind of condition. I'd say at this point, I would use 640,000 barrels a day as our, as our first target. Hey, Tim, is that a crude or a total throughput that you are mentioning? It's crude. That's crude. Then under that, what kind of unit cost we will be talking? What kind of unit costs are we talking about? We'll, I'll let Val say something in a few minutes. Let's assume, on the natural gas prices, somewhere in the $3-$3.50. If you can give us some idea that on the two region, what is the, the, what is your target unit cost, once that you complete this reliability improvement? Yeah. Yeah, as we improve reliability, our costs will continue to come down. A, a large component of any operating organization as large as ours is tied to how well you execute and how reliable your facilities are. As we directionally improve there, our costs will continue to decrease. Our, our estimation is, well, directionally it'll be down, and we're thinking somewhere between $6-$6.50 over time. Thank you. You're starting to- Yeah, Paul, you're starting to see some of the benefits of some of the integration work and some of the reliability work already that we're doing. You know, operating costs this quarter, are, are down, which is, which is an encouragement, but obviously we have more work to do. All right. Me too. Thank you. Our next question comes from Ryan Todd at Piper Sandler. Great. I was wondering if you could, if you could provide a little more color in terms of where you are in on normalizing RD operations. I mean, it sequentially improved. Can you walk us through kind of the pathway, where you think you are in terms of throughput utilization, and kind of normalizing that up to a full run rate? Yeah. Good morning, this is Atanas. With respect to utilization and where we are, our, our goal has not changed. What we have indicated is that, we're looking to achieve what we'd call normalized run rates, which is between 75% and 80%, by the end of this year. As you could recall, we had the turnarounds at 2 of our co-located facilities, which impacted utilization rates. But on the flip side, it also gave us an opportunity to look under the hood, so to speak, and make improvements to our equipment. One of the, some of the positive things that you're already seeing is the decreasing OpEx per gallon, which declined to 29% quarter-over-quarter. Another thing is, the improvements that we've made to catalyst. Our focus has been process optimization as well as yield improvement, and Cheyenne has been a great example of that. At the end of the day, again, our goal has not changed. We remain, we remain committed. Steve? Yeah, maybe I'll just add on to that. I think, I think we are excited about what we're seeing in the underlying capability of this business. As Atanas mentioned, you know, we did show both yield and improvement and reduced costs. We also ran well at Cheyenne, with 99% yield and 89% utilization, which we believe is a good sign in our ability to run at productive levels and choose to run the economic barrels that we see fit. Yeah, excited about where we are and look for normalized towards the end of the year. Great, perfect. Maybe any, any update just in terms of what you're seeing, in, in the Lubes business and the backdrop there, both from a -- as, as we head in or as we're partway through the third quarter here, in terms of what you're seeing on kind of the, the rack back and rack forward dynamics there. As well as, as maybe your continued thought process on, in terms of the, kind of the, the long-term suitability of, of that business within the portfolio. Sure. This is Atanas. Just at the high level, as with respect to the performance of the business, what we're seeing, we have, volumes have softened up a little bit, primarily on recessionary fears, around, our specialties market. On the flip side, one of the positives is our ability, to hold up margins and, continue to improve, product mix, hence the, strong performance of the business. On an ex-FIFO basis, where we are year to date, compared to last year, we're actually $12 million better, on an apples-to-apples basis. Our goal is to continue to shift more of those base volumes, base oils volumes into, finished and specialty. I wanna remind you again that at the end of the day, we don't look at our business as rack back and rack forward, we look at it on a holistic basis. I'll turn it over to Matt to Matt Joyce to provide some more color. Yeah, thanks for the question. It's Matt Joyce here. More specifically, over the past quarter in particular, the team's done a tremendous job continuing to focus on streamlining our supply chain and manufacturing of, of certain products and end uses. We've also been working to get better visibility to our costs through implementation of new, new digital tools that we're bringing on board that will help with inventory management and planning. That's in process, and that will actually be seen in the second half of the year. When you're looking into that quarter three, quarter four benefits, those, those are some of the pieces that we're putting together. We've, we've been looking at the right mix of products. We're really fortunate to have a good balance of, of products that are in what I'd call sustainable markets, where we can really be distinctive in our value proposition and our solutions to the marketplace. We're, we're very satisfied and excited about. the opportunities that some of the, the regional focus the team has taken, in particular in the U.S. in these markets, those have proven to be very good. Despite these headwinds on some of the softer volumes that the markets have experienced in general, we're doing really well to manage our margins, clean up, and make sure that our own housekeeping are in order, and, look for the right targets and the right customers and partners to, to grow with in the future. Great. Audra, are you still there? Yes, I'm still here. Can you hear me? We can now, yes. Okay. Let's move on to the next question, Audra. Okay, we're gonna go to Jason Gabelman at TD Cowen. Hey, morning. Thanks for taking my questions. The first one I wanted to ask was kind of on the niche markets that you serve. I think both the Rockies and Southwest saw some margin strength in 2Q, and I was hoping you could talk about what, what drove that and, and if you're seeing that continue into 3Q, particularly given some regional outages seem to be reaching their conclusion. I have a follow-up. Thanks. Yeah, Jason. Hey, this is Steve. I'll take that one. Those markets that we serve, as you know, there's not a ton of liquidity in some of those markets, and so supply and demand balances can, can move pretty quickly. I think what we saw is the strength of the crack in those markets associated with low inventories, in the peak of the driving season, really allowed us to take advantage of that. When you think further out, we see some of the back half of the year, some of the, the, the cracks coming off and, and diesel normalizing to a more fundamental position. Again, in our markets, we think we have a competitive advantage to take it to take those those cracks and, and, drive them to the bottom line, and we look to do that through the rest of the year. Yeah. Jason, this is Tim. I'd just chime in to say, you know, we've, we've, we've always said, especially since the Sinclair combination, that the strength of our portfolio in Refining is the, the markets that we serve, which provide both growing demographics that are supporting demand, advantage crude, and then, of course, product, premiums over the Gulf Coast. What you're seeing, you know, play out this year, I think is very indicative of why we think we have a real competitive advantage in our portfolio. Got it. My follow-up is on M&A and Refining. It seems like there's a number of assets coming to the market that are available for purchase, and DINO's obviously demonstrated a desire to So I was wondering if we could just get your updated thoughts on how you're viewing Refining M&A. Are there any specific regions that you'd be more interested in, in other, any types of assets? Do you feel like the size of your Refining portfolio is in a good place right now? Thanks. Yeah, Jason, thanks for the question. You know, we believe in liquid transportation fuels. We would not have done the transaction with the Puget Sound Refinery or with Sinclair if we did not believe that there were years, if not decades, left for the right, the right Refining assets, which we believe we've, we've, we've acquired. Having said that, we've just gone through a very successful growth spurt. In 2020, we added our Renewable Diesel business. In 2021, we acquired Puget Sound. In 2022, we acquired the Sinclair assets. Of course, in 2023, we're working on potential discussions with HEP. You know, we've, we've had a run of very successful growth, and hopefully we'll continue as we, as we continue discussions with HEP. Right now, as I mentioned, on the last call, our focus is on the same priorities that we've talked about when I first got into the job. We need to focus on EHS and reliability. We know there's a lot of opportunity there. In fact, I like to say to our, to our folks, we think there's a hidden refinery there, in the sense of improving our operations and, and capturing more throughput and more opportunity in the assets that we have, as opposed to going into anything inorganic. Then the second thing is, we're focused on integrating and optimizing the assets that we have. That's what Steve was talking about earlier in terms of what you're seeing in capture and what Val was talking about in terms of what you're seeing in lower OpEx. We believe that our focus right now is to focus inwardly and to try to improve those, the assets that we currently have. We're not really in the market looking at anything right now, Jason. It's, it's probably not the right time in the market time anyway, with the market being above mid-cycle, and that suits us just fine because we have plenty of work to do organically. Great. Thanks for the answers. Our next question comes from Roger Read at Wells Fargo. Hey, thanks. Good morning. Good morning, Roger. Sorry, I've missed part of this. We've got kind of a crazy morning going on here with the earnings front. I just wanted to come back, if we could, to the lube side of the business in terms of operations. Just, you know, how is that shaking out? Seasonally, third quarter is usually pretty good in this, but, you know, we've seen so many moves here in base oil prices and, you know, supply chain issues that have hit. I was just curious, are we finally entering a normal period with this, or are we still in kind of a, a jumbled period? Yeah. Hey, Roger, it's Matt Joyce here. Thanks for the question. What we're looking forward to is seeing a bit more of a, a, a normalized supply chain. I think we've, as an industry, the Lubricants and Specialties business over the past couple of years, as you probably know, have faced a lot of upheaval with additives and broken supply chains around the globe that have really impacted the business. It's also been the start and stop coming out of a COVID hangover. I think right now there's, there's some tepid anticipation that we're gonna see some green shoots here with regards to demand. We're also hearing of, and again, just very briefly, that there are some other supply issues and reliability issues in the market when it comes to base oils. We're, we're not certain how, how big an impact that's gonna have on the whole of the business, but certainly we're in a really good position to fill that void as, as needed. When we look at it, there's-- it's very evident that cracks have, have shrunk, and we've seen crudes roll up, some increases over the past weeks and months. We're, we're looking at, and again, we're going to be, considering and anticipating, boosts in both base oils and perhaps even finished products northbound, in order to manage those, the recovery of, increased costs that, the business has experienced. In general, though, we're probably looking at above mid-cycle, but we're, we're still watching that demand picture very carefully as, as it's been, you know, soft, and we've been able to manage through that with the housekeeping we've been focused on over the past quarter or 2. Yeah. Roger, I'll just chime in to reinforce what Matt was saying. You know, we've now demonstrated above mid-cycle performance for the last 2.5 years, and that's, you know, that's a tribute to the team. That's a tribute to all the integration and synergy work that they've been doing. All this time, we've seen the cracks starting to compress. I mean, this has been happening now for probably 3 or 4 quarters, and yet our business continues to perform, and I think that's a sign of the structural improvements that Matt and his team have been working on. No, it's definitely good to hear. Again, I'll apologize if this question's been asked, but on the renewable diesel operations, you know, we've seen with some competitor startups going on, a real tightening on the feedstock side. I'm just curious, I mean, definitely better results for you on a sequential basis, but as you're looking at feedstock options here into the second half of the year, can you kind of walk us through how the PTU is running and then, you know, your, your choices for feedstock as you're kind of navigating, you know, the different costs of those? Yeah. This, this is Steve. I'll take that. I, I think you hit it head on. We see some, some tightening in terms of the overall margin structure in the back half of the year, partially due to feedstock, but also the, the RVO standard and what that's done, and then the LCFS supply that's kind of on the market. We are looking to, to optimize our feedstock. We run a, a good portion of, of soy, but we have the ability to go take advantage of some low CI feedstocks, and we've got plans in place to go do that in the back half of the year. As far as the PTU, it's running very well, and, and we see that as a competitive advantage to our business and laying that in into some of the other assets where we could take advantage of, of that integration. One follow-up on that, your hydrogen production, is that doing what you had anticipated across the RD facilities? I mean, as far as the hydrogen consumption and production, you know, with the co-located plants, we had both of them down this quarter due to turnaround, which did impact the hydrogen availability to go run, and unfortunately, that was in 2 of the early months, where margins were more supportive. That's really just a planned circumstance of the maintenance activities that were needed to be handled. Overall, we feel comfortable with our hydrogen availability to go run these plants and generate the products that we choose to put in the markets that we choose. This is Atanas. I'll only add that, again, as we mentioned earlier, one of the benefits of the co-located turnarounds is, particularly as it relates to our reformer unit, that turnaround ends up improving the reformer reliability and, therefore, the availability and supply of hydrogen. We have a number of other ongoing improvement efforts in the hydrogen plants, both with Navajo and Parco, as well as Cheyenne. Great. Thank you. We'll take a follow-up from Paul Cheng at Scotiabank. Thank you. 2 questions, please. I want to go back into RD. Anna, that you talking about the hydrogen availability. I mean, in order for you to run closer to, say, the name take capacity, I think hydrogen was a bottleneck. I believe Tim had mentioned that you guys are working to substantially improve that availability, and that may take until 2024. Can you give us an update? Where are we on that, to have sufficient hydrogen on site so that you will be able to run the RD at a much higher rate than, say, the 75%-80%, instead of saying you have to make the, the decision between running the, the diesel, for, for the refinery or that running the RD? Also, I think you guys have changed the catalyst. Can you give us an idea that the benefit on them in terms of the yield, and also that what's the duration that it will take now for you to make a to change the catalyst? I think previously you've been doing about 6 months. Are we going to aim it at a much longer duration? Yeah, Paul, this is Tim. Let me, let me take a shot at some of the short-term questions, and then I'll ask Val to comment on some of the long-term, longer-term efforts we're, we're talking about. We believe that with these turnarounds that we just completed in the second quarter, and with some of the short-term hydrogen optimization steps that Val and her team have been able to implement, that we will be able to hit run, normalized run rates here in the second half of the year. When we say normalized run rates, we're talking 75%-80% utilization, right? You kind of mentioned that number before. We do think we can get to that level with the current facilities we have. On a long-term basis, we are continuing to look at ways to de-bottleneck and expand our hydrogen production. I can let Val talk a little bit about that in a few minutes. I, I just wanted to make it clear that we do think we have a path forward here in the second half of the year to hit this normalized run rate. Yeah, this is Valerie. On the hydrogen, as you mentioned, let's first take the co-located sites. We have reformers that we just went through turnarounds on. We've made significant improvements in those assets, and reliability is expected, and what we're seeing today is improving. Additionally, our hydrogen generation complex, we have some several low capital operational program improvements that will start to take place in the back half of the year, and we anticipate that that will continue. You know, those small improvements will directionally add up to give us more hydrogen capacity as we go through the year. And then we're looking at what's next as we look forward. Let me comment a bit on catalyst. We, our catalyst is performing well. We are seeing, and as they mentioned before, 99% yield in our Cheyenne facility. Our interval and duration, as we've learned how to operate these units, is improving with each learning and each time we have an opportunity to employ some new operational improvements. We're anticipating that those will continue to lengthen. Valerie, that what is the current expectation for the period between you have to change the catalyst? Generally, we're not gonna disclose kind of the exact numbers, but I can say directionally, we're seeing improvement. So it sounds like that unless that you have found or then make some pretty significant investment, we shouldn't assume the RD operation, where from a hydrogen availability standpoint, next year could be doing much better than 75%-80%? I think that's what That's our target, Paul, to get to be by the end of this year. I think next year, of course, we're gonna be, have implemented some additional improvement steps and, you know, it's too early to give you any type of guidance or targets for next year, but I think what we're saying is, by the end of this year, we should be at that level. Okay. Tim, one of your competitors that have attributed their improved capture rate and profitability due to substantial revamp of their commercial operation. Wondering that when you're looking at the DINO, do you think that you have the right commercial culture and organization and personnel? Yeah. Paul, it's a good, it's a good question. There, we know there's a lot of, in fact, several competitors out there who are talking about their commercial capabilities. I, I think we've got a similar focus here at DINO to try to look at that. I think some of our competitors are talking about trading as well as part of that commercial capability. We are not looking at trading as part of our commercial capability, at least not at this point. I, I don't think we have the right resources to probably get into that. I will ask Steve to comment, because one of the things, as you know, Steve is been brought in to do, is basically help us look at our commercial capability and improve it. Yeah, thanks, Tim. Paul, I, I think this is early days still, but after being here for 3 months, the things I'll reflect on when you ask about commercial culture and capability, I think we have a high degree of talent and capable commercial people who really have a lot, lot of expertise in this arena, both optimization, planning, refining, across the assets and into the markets that we want to go play. Even to the extent that we understand where we have advantaged, easy, non-speculative trades, we take advantage of that, take advantage of differentials. I think our opportunity here is really around enabling and unlocking more value in an integrated fashion through tools such as enhanced digital real-time information. I think that's really kind of the next frontier that, that we go take on, and we see a lot of value there. I think we're just kind of at the beginning of unlocking the true integrated value of this company that has been put together with these assets over the past few years. Yeah, Paul, when I say our first priority is to improve base EHS and reliability, think operations. Then when I say, our second priority is to integrate and optimize our new portfolio of assets, think commercial. That's, that's how we're approaching those two priorities. All right. Thank you. That does conclude the question-and-answer session. I will turn the floor back over to Tim Go for any closing remarks. Thank you, Audra. Our strong second quarter results are a testament to the strength of our business and the hard work of our employees to execute our strategies and deliver these results. We believe our Refining, Marketing, and Lubricants businesses are all performing above our mid-cycle estimates. With the majority of our planned turnaround work behind us, we believe we are well positioned to capture the margins available to us for the remainder of the year. Our priorities remain the same, to improve our base EHS and reliability, to integrate and optimize our new portfolio of assets, and three, to return excess cash to our shareholders. Thank you for joining our call. Have a great day. Thank you. This does conclude today's teleconference. Please disconnect your lines at this time and have a wonderful day.