Good morning, ladies and gentlemen, welcome to the Vertex Energy 1st quarter 2023 earnings conference call. At this time, all lines are in a listen-only mode. Following the presentation, we'll conduct a question-and-answer session. If at any time during this call you require immediate assistance, please press star zero for the operator. This call is being recorded on Tuesday, May 9, 2023. I will now like to turn the conference over to John Ragozzino, Investor Relations. Please go ahead. Thank you. Good morning. Welcome to Vertex Energy's first quarter 2023 results conference call. Leading the call today are Chairman and CEO, Ben Cowart, Chief Financial Officer, Chris Carlson, and Chief Operating Officer, James Rhame. Also attending the call are Chief Strategy Officer, Alvaro Ruiz, and Chief Commercial Officer, Doug Haugh. I want to remind you that management's commentary and responses to questions on today's conference call may include forward-looking statements, which, by their nature, are uncertain and outside of the company's control. Although these forward-looking statements are based on management's current expectations and beliefs, actual results may differ materially. For a discussion of some of the risk factors that could cause actual results to differ, please refer to the Risk Factors section of Vertex Energy's latest annual and quarterly filings with the SEC. Please note that you can find the reconciliations of the historical non-GAAP financial measures discussed during the call in the press release issued today. Today's call will begin with remarks from Ben Cowart, followed by an operational review from James Rhame and financial review from Chris Carlson. At the conclusion of these prepared remarks, we will open the line for questions. With that, I'll turn the call over to Ben. Thank you, John. Good morning to those joining us on the call today. This morning, we issued a press release detailing our financial and operating results for the first quarter of 2023. We are pleased to report a continuation of safe and reliable operations and strong financial and operating results, which were in line with our prior expectations. Our business continued to perform as expected for the quarter as we have enhanced our focus on our Gulf Coast operations following the previously announced sale of our Hartman UMO assets for $90 million in February of this year. We reported total adjusted EBITDA of $34.9 million for the first quarter. Our conventional fuels business at our Mobile facility continued to perform smoothly, generating a gross profit for the quarter of $65.5 million, driven by continued attractive refinery margins, offset in part by the impact of reduced throughput during planned downtime associated with the RD project tie-in. Operationally, we reported throughput volumes of approximately 71,000 barrels per day for the quarter, in line with our prior guidance issued in late February. Shifts in our product yield profile related to the conversion of our hydrocracker to the production of renewable diesel drove a reduction in volume of finished products such as gasoline and diesel, and increased in VGO cut. Fortunately, strength in the VGO market helped mitigate the impact of a changing yield profile overall per barrel profitability at the refinery, driving a capture rate of 51%, which was in line with our prior outlook of 50%-54%. We continue to advance several important strategic initiatives aimed at streamlining our business and enhancing efficiency. As previously mentioned, the sale of the Hartman UMO assets has brought additional liquidity into the business and allows us to tighten our focus on Gulf Coast operations. Additionally, after a lengthy search for a new Chief Commercial Officer, we announced the hiring of Doug Haugh, who I am thrilled to have on our team. I believe Doug's extensive background and experience bring a tremendous benefit to the company as we seek to capture additional value through the optimization of feedstock procurement and marketing of finished products. On March 31st of this year, Vertex reached an important milestone of on schedule and on budget mechanical completion of our RD project. Following a ribbon-cutting ceremony hosted by the Mobile Refinery on April 28th, our operations team transitioned from the commissioning phase to startup sequencing of the RD facility. Unfortunately, in the days to follow, we encountered issues with the feed pumping system, resulting in a startup delay, which Chief Operating Officer James Rhame will cover in more detail shortly. While this is an unwanted challenge and not the story we hope to have reported to you this morning, I have faith in our team's ability to safely resolve the issues with minimum delay. As it relates to the first quarter, I will say I'm very proud of how well this team has executed while keeping safety and reliability at the forefront of our operations. With that, I would now like to hand the call over to James, our Chief Operating Officer, who will provide a detailed update on our operations during the quarter, including a more detailed update on the status of our renewable diesel conversion project at Mobile. James? Thank you, Ben. Good morning, everyone, and thank you for joining us this morning. I'll begin with a brief report on our health, safety, environmental performance. First quarter 2023 was a clean quarter. Across the entire business, we had zero OSHA recordables and zero environmental recordables. Mobile additionally had zero process safety events. This is the first quarter since the Mobile acquisition that we had zero safety and environmental recordables across the fleet. Moving on to operational performance. Beginning in Louisiana, our Marrero operation saw continued progress in improving plant reliability and performance in the first quarter, achieving a 91% capacity utilization at the refinery. As previously disclosed, we closed on the sale of our Hartman facility in February. Operations continued safely and smoothly during January through the completion of the sale on February 1st. We've continued to support the successful transition of this facility to the new owner. Our conventional fuels business, the Mobile facility, performed well during the quarter once again, despite elevated site activity related during the peak of construction on our RD conversion project. First quarter throughput volumes at the Mobile Refinery averaged 71,328 barrels per day, or 95% of stated operation capacity in line with our previous guidance. Direct OpEx per barrel for the quarter was also in line with our prior expectations at $3.84 per barrel. We continued processing a crude diet consisting of West Texas Intermediate, Light Louisiana Sweet, and other local light sweet crudes. As expected, finished products such as gasoline, diesel, and jet fuel accounted for 62% of our total product yield during the first quarter of 2023, representing a 12% reduction in yield from the previous quarter of 74%. This reduction was due to the shutdown and conversion of the hydrocracker to renewable diesel. Prior to the shutdown, the unit accounted for 8,000-9,000 barrels of distillates and upgraded chemical feedstocks. Product yields were in line with expectations, and we expect to see similar yields in the conventional business on a go-forward basis. Our fuels gross margin per barrel during the quarter was $16.17, driving a capture rate of 51% of the benchmark Gulf Coast 2-1-1 crack spread in line with our guidance of 50%-54%. The strength in our recorded fuels gross margin per barrel and the resulting capture rate versus the benchmark is a function of the strength seen in refining margins for intermediate products such as VGO. Strengthened VGO margins offset the impact of reduced diesel production as a result of a hydrocracker conversion on a per-barrel profitability. On a RIN-adjusted basis, gross margin per barrel was $13.66. Turning to our renewable diesel conversion project. As previously announced, we achieved mechanical completion on schedule on March 31st. We're tremendously proud of the team's achievement in reaching this goal without safety or environmental incidents or disruption to the existing operation, despite the many challenges of executing a project of this magnitude in an operating facility. In the process of unit startup sequencing, we experienced a failure in the feed pumping system. These pumps are responsible for supplying feedstock to the renewable diesel hydrocracker. Upon failure, our safety systems worked as designed, and our team responded appropriately to bring the unit down in a safe and controlled manner, preventing further impacts, including preserving the catalyst in our hydrocracker. This event is isolated to the feed system with no known impacts to the reactor or any other processing equipment, and no impacts to the conventional refining capability. Currently, the renewable diesel unit is safely parked, and we have a number of internal and external expert resources engaged in root cause analysis, repair, and restart. As Ben mentioned, we are confident in our team's ability to take these challenges head on, delivering a safe and reliable outcome. As it relates to the timeline, we expect repairs to be completed prior to the end of the second half of May, after which we plan to reinstall and resume the startup sequence of the renewable diesel unit. Our team and I are certainly disappointed to have delayed our targeted timeline for startup. That said, I am proud of how well our team executed under tremendous pressure during this unexpected event. We believe this is a temporary setback, and we look forward to updating you in the future as things progress. As stated previously, our focus has been and will continue to be the safe and environmentally sound operation of this facility. With that, I'd like to now hand the call over to Chris Carlson, Chief Financial Officer, who will review our financial results for this quarter as well as provide our outlook for the second quarter of this year. Thank you, James, and welcome to those joining us on the call today. For the three months ended March 31st, 2023, Vertex reported net income attributable to common shareholders of $53.8 million or $0.71 per share, versus a net loss attributable to common shareholders of $4.9 million or $0.08 per share in the first quarter of 2022. We reported adjusted EBITDA of $34.9 million in the first quarter of 2023 versus $13 million in the prior year period, and $75.2 million in fourth quarter of 2022. The sequential decline in adjusted EBITDA reflects a combination of the reduced throughput, lower crack spreads, and shifts in the product yield profile as expected. The first quarter financial results include an after-tax gain on sale of assets in the amount of $48.9 million, reflecting the recent sale of the Hartman facility. Total capital expenditures for the first quarter of 2023 were $73.9 million, roughly in line with our revised CapEx guidance issued on April 14th. The increase in capital investment for the first quarter reflects an acceleration of phase one spending geared towards strengthening the site's position ahead of the planned phase two of the project. As previously outlined, phase two of our renewable diesel conversion project includes the installation of additional hydrogen capacity and drives a planned capacity expansion from the initial 8,000 barrels per day expected in phase one to 14,000 barrels per day. As of March 31st, 2023, the company had total cash and equivalents, including restricted cash of $95.1 million versus $146.2 million at the end of the prior quarter. Vertex had total net debt outstanding of $282.1 million at the end of the first quarter of 2023, including lease obligations of $129.9 million, implying a net debt to trailing twelve-month adjusted EBITDA ratio of 1.5x as of March 31st, 2023. We continue to remain fully exposed to current refining margins with no fixed crack spread price hedge contracts currently in place. Looking to the second quarter of 2023, we anticipate total conventional throughput volumes at Mobile to be between 68,000 and 72,000 barrels per day, reflecting total facility capacity utilization of between 91% and 96%. OpEx per barrel is expected to be $3.80-$4 per barrel for the quarter, and our capture rate on the benchmark Gulf Coast 2-1-1 crack spread is forecast to be approximately 50%-54%. We anticipate total capital expenditures for the second quarter to be between $30 million-$35 million. I'd now like to turn the call back to Ben Cowart to provide some final comments before we open it up for Q&A. Thank you, Chris. Since our last call, we've made significant progress in continued transition to what we like to refer to today as Vertex 2.0. We managed to further streamline operations in order to improve operational focus on the conventional and renewable fuels businesses. We achieved our goal of reaching mechanical completion of the renewable diesel conversion project both on time and on budget. We also added additional bench strength to the leadership team via the addition of Mr. Doug Haugh as our Chief Commercial Officer. As James stated, we are disappointed in the startup delays for our renewable diesel facility, but I know we have an outstanding team who has demonstrated the ability to overcome these type of challenges. Overall, I'm encouraged by the significant accomplishments we've achieved throughout the first quarter, and I look forward to providing further updates as we continue forward. We'll open the line for questions. Operator? Thank you. Ladies and gentlemen, we will now begin the question and answer session. Should you have a question, please press star one. Should you want to withdraw your question, please press star two. Your questions will be pulled in the order they are received. If you are using a speakerphone, please lift the handset before pressing any keys. One moment, please, for your first question. Your first question comes from Donovan Schafer from Northland. Please go ahead. Hey, guys. Thanks for taking the questions. You know, I'm glad to see the fossil fuel side of the refinery seems to be operating quite well. Looks like pretty good results there. I wanna, I wanna really dig into the delay on the RD conversion side. Just wondering, you know, James, if you can kind of, you know, I'm gonna ask you to more or less kinda like visually flesh out or paint the picture for us of kinda what was going on there. You know, on the extreme end, you can imagine a case of, you know, explosions and chaos, which it seems, of course, not likely given all the OSHA and then, you know, it doesn't seem like there were presumably spills or anything like that, given environmental incidents. You know, is this just like an internal, like a sensor goes off or something, and then it's, sounds like it was isolated just on the pumping side, but there's sort of like an, maybe an interplay with the hydrocracker. And I guess another important question here would just be the pump at the feedstock pumping equipment, is that specialized equipment where it's a special type of pump given, you know, that it's soybean oil, or is it something pretty generic, just moving fluids, works for all kinds of fluids, been sitting there for a while, and you're just trying to kinda figure out why this legacy or older piece of equipment's not quite working? Anything kinda just fleshing that out more completely would be great. Thank you, Donovan. Good morning. To put this in front, this was not really a material event, and these are brand-new pumps that were designed specifically for this case, all the different feedstocks that we'd premised. As we brought in external expertise to look at the failure of the pumping system, plus our own internal, plus the technology provider, what we found is they were designed for the products that we had. However, there's a transitionary period during startup that they were not designed for. As a result of it, we damaged the pumps. These pumps are, I would say, specialty pumps. They're positive displacement pumps. We took them back to the manufacturer. They're repairing those and returning those to us. At the same time, we're going through a very rigorous investigation, making sure we understand what did occur, which we now know. We're putting hardware and changes in place such that we can protect these pumps from this again. Did that answer your question, Donovan? Yeah. I'm just gonna kinda restate to make sure I'm grasping. It's sort of like you have the commissioning process and maybe there's a, you know, you could graph or chart the pressure or temperature or some other set of specifications that go through in commissioning. That's maybe outside the parameters of just regular day-to-day running. As you're going through the commissioning, some kind of a parameter jumped outside of the design spec that was just in the nature of how you're doing things, like on the initial ramp-up commissioning. That was just sort of a miss there. Is that correct? Am I framing that properly? I think you characterized it pretty well. Okay. Great. Moving on to the production mix. you know, The drop in gasoline and diesel, you know, that makes perfect sense and, you know, as expected, kind of per taking the hydro, you know, doing the RG conversion. It was nice, though, to see an uptick in the jet fuel. I know that also kind of aligns with how the markets have been going. You know, I know gasoline and diesel prices have been coming down, but jet fuel's been doing a bit better. I'm curious, you know, is that a reflection of any ability on your guys' part to kind of quickly adjust, you know, within, you know, diesel versus gasoline versus, you know, kerosene or jet fuel, making kind of adjustments there to benefit from where prices are better? Is that just kind of, just an incidental kind of artifact of everything else that's happening and sort of changing simultaneously? No. Thank you for pointing it out. That's really been the hard work of the people inside of Mobile adjusting to the market and moving our yield to match what is going on inside the marketplace. We do have a limited amount that we can do that, but they did respond well, both the operations and technical group, to maximize the amount of jet that we could make out of the hardware that we have. Okay, great. Thanks, guys. I'm gonna take the rest of my questions, offline. You know, congratulations and, you know, sorry to hear about the delay, but it sounds like a pretty workable issue. I'll leave it at that. Thank you, Donovan. Thank you. Your next question comes from Manav Gupta from UBS. Please go ahead. Hey, guys. Just going back a little on the timeline, you bought this refinery, you executed some quick-hit projects, the capture rate improved, then obviously you moved the hydrogen to other part. There were still a whole bunch of projects which the team has identified which can lead to higher capture in the future. I think making premium gasoline is one of them. Can you just quickly talk about some of these other projects which could potentially be executed in the future that will help you drive higher capture at the refinery? Thank you. Good morning. Thanks for the question. What we have identified is really yield improvement projects, premium gasoline being one of those that we'll be looking at, and some having to make hardware changes in order to be successful there. We're working on those. The first project is coming online here relatively soon that the team there brought forward. This is one of the things that basically the team was waiting for us to show up and us really talk about what the opportunities were. We have a list of low capital, high return projects that will improve our yield structure. As I told the market, and I told you, I believe last quarter, you know, over the next two and a half years, I expect to recover the profitability that we experienced with hydrocracker in service with our existing assets. Great, guys. One thing which there's a little bit of a misconception which if you could clear on the call. Some believe out there that you are tied to refined soybean oil and you do not have pre-treat capabilities. You do, you just have them in a tolling agreement, and you can pretty much process anything you want. If you could clarify that you're not tied to refined soybean oil, and you can actually run tallow or grease or whatever through your tolling agreements. Thank you. It's Doug Haugh here. It's a good point. I think it is a mischaracterization of our capabilities. It's not just about pretreatment, it's also about just feedstock selection, development, qualification, which we're in the process of doing with several feedstocks today. That is not dependent on additional, you know, phase II developments, which we've talked about. It's not dependent on additional hydrogen. It's not dependent on pretreatment in fact. It's just simply pre-qualifying those additional feedstocks to make sure that we understand the operating parameters that James's team has to deal with, you know, in a production environment. That, you know, you're correct. That's a mischaracterization of our capabilities and the unit's capabilities and the positioning of the facility as far as feedstocks go. Thank you so much, guys. Mm-hmm. Thank you. Your next question comes from Noah Kaye from Oppenheimer. Please go ahead. Hi, this is Jason Vernoff on for Noah Kaye. Thank you for taking my question. How does the new RD timeline affect the timing to receive RIN and LCFS registration? When do you expect you'll be eligible for both credits? The timeline only affects really LCFS. We've got the applications in for RIN. Being able to capture the RINs, we expect that within the next month or so. So that will occur, or at least, you know, we are waiting on government approval, so recognize that we don't control that, but we've done all the things we need to do to be able to assure ourselves that we're getting the RINs. We must have 90 days of production data running to input to get LCFS. Right now, we expect that sometime in the fourth quarter or first quarter of next year for us to get that approval. Got it. Thank you. On the 2Q guide for refinery throughput, what's driving the 91%-96% utilization assumption? Does the ongoing work on the RD system impact the throughput? Is there any additional downtime that you're planning to take in the quarter for the plant? Thank you. Yeah, there's a couple of things that we're playing, and we were trying to give the best guidance we had going forward. There is some incremental impact with just hydrogen in the fuel system, but that's incremental. We also will do a short pit stop, and it's just really a heater pigging, and that's incremental in the next month or so. The one thing we are trying to signal a little bit, one of our third-party pipeline suppliers has a risk on their pipeline system of being able to deliver pipeline barrels. We at least wanted to signal what that looked like in the future. We're working to mitigate those risks, but did not wanna surprise you guys. Therefore, we put that within our guidance. Got it. Thanks. Mm-hmm. Thank you. Your next question comes from Eric Stine from Craig-Hallum. Please go ahead. Good morning, everyone. Morning, Eric. Just following up on that last question on throughput. I mean, obviously you're calling out a few things that, you know, whether it's just the incremental impact of what's going on at the refinery right now, the short turnaround and that pipeline risk. I mean, what do you view, you know, once the RD system is up and running? I mean, is there, it doesn't sound like we're at a different throughput level or expectation. I mean, is it fair to say that if we look out into the back half of the year, we're back to more normal expected throughput levels? Yes. Yes. We're back in the 75,000 range. You know, that's of course us going forward. You know, our fuel system is back to what we would call more normal. That will help us as well as, you know, us just positioning ourself to run full during that time period. You know, we have ran pretty well within that last 90+ days with the hydrocracker down. The team's done a very good job managing that system. Yep. Okay. Yeah, just wanted to confirm how we think about it going forward and once we get through this quarter. You know, maybe just on the renewable diesel project, obviously top of mind, you've talked about it quite a bit. Where does your confidence I mean, it sounds like you're pretty confident that, you know, you're basically going to miss a month here and then you start up, you know, and then the startup process begins again. I mean, maybe where does your confidence lie? You know, or what are the reasons for that confidence? It doesn't sound like you've received that repaired equipment yet, but is it something that is, you know, once you do, you've got line of sight there, and once you do, it's a, it's a relatively quick repair? Yeah. The repair we had purchased repair parts for these pumps prior to purchasing them, and that was part of our purchase agreement. Therefore, you know, we had at least mitigated the risk because these are specialty pumps. Yeah. That's why we're confident there. However, we still have to go through some of the hardware and changes that we're gonna make to protect these pumps, and that includes a rigorous MOC process that requires us to train our personnel on site. We will have not just the additional subject matter experts that we've brought in to help us with this, but they'll be there watching us and helping us during the startup and making sure that we take care of these pumps. When I look at the rest of the system, we were pretty well able to operate the rest of the unit. We didn't see anything that looked unusual to us during the time that it was up and operating or the, we had all the compressors and pumps working. We have, you know, high confidence that we had tested every bit of the system that we could at that time. Now it's going forward and how do we manage around these pumps and making sure that we do the right thing and be good safety and environmental stewards of the asset and the people. Okay. All right. I would assume that's something that you'll update the Street on as a, as a pretty material event when that restart process starts up again. Yeah. It's, you know, We expect a relatively short duration to put it in, but I do not want additional pressure on the team, and I want the team to really go through and be rigorous in just the troubleshooting, the root cause analysis and the repair. Sure. No, it makes sense. Thanks for that. Last question for me, just you mentioned a previous question, RINs and LCFS credits, and, you know, confidence on RINs. Can you just remind us, if I'm thinking about it correctly, I believe RINs, while you're confident that you get that pathway approved, that's something that if you were not to get that, you know, in Q2, you could recognize retroactively, and I believe LCFS is different, that is not retroactive. Am I thinking about that correctly? Yes, you are. Doug has probably even more experience than I do on dealing with, renewable diesel, so I'll let him answer. Yeah, it's, you have to be a little careful about the retroactive characterization. As long as we maintain possession of the production, which we will during that period, and we've accounted for, you know, any additional working capital needs, that might create if there's delays in that certification on the RINs. We don't lose the RIN value, right? It's just, you know, you don't obtain it the minute you produce, but you certainly get it on the first gallon produced, assuming you maintain title to that production while it's on site. LCFS is different. You require the runtime, so we, you know, you don't recover that value on that first 90 days of production. You've characterized it correct. One just has to be careful to maintain title to the product while you're in the process. Yep. Okay. Just to confirm, you said that you think you get that LCFS, not the certification, but when you think you can start capturing that, those credits, that would be in either four Q or one Q? Yeah. We expect 4Q, but again, subject to the government, which we all understand the constraints there. Okay. Yeah, that's 4Q not starting the 90 days, right? That would be at the conclusion of the 90 days. No, that's having the value. Correct. Yep. That's having the values in production at that time. It is worth noting, those are specific pathways. you know. Mm-hmm. When it comes to LCFS, you know, one is perpetually climbing down the carbon intensity curve, right? As you're optimizing to capture those values at the highest levels. You're never really done. We certainly will start up on a default pathway. Mm-hmm. that they assign, and that gets you in at the base level, and then you can continue to enhance your capture of those credits as you improve your carbon intensity, which back to the related question around feedstocks is a big part of our activity too. Okay. Very helpful. Thanks. Thank you. Your next question comes from Amit Dayal from H.C. Wainwright. Please go ahead. Thank you. Good morning, everyone. Just going back to the RD delay, with the pumps, was this sort of a human error or a mechanical failure? Could you clarify, please? Even though we haven't closed out the investigation, the investigation will also point to not just the mechanical failure that occurred, what did it, but how humans interacted. Our team responded well and brought it to a safe place. As we go through the investigation, we're looking at those items that are there that can also help humans perform. In the end, it was more mechanical than human at this stage, would be my characterization. Understood. Thank you for that. Also, just looking at, you know, the inventory, it grew by around $52 million. Was this related to your preparation for the RD production, or was this something else? Yeah, good question. The inventory did grow mostly on soybean oil. Yes, you're right, that was ahead of the RD startup. All in preparation for RD. Okay, thank you. Just last one for me. What is the CapEx, the $30 million-$35 million, going into for 2Q? I would say the majority of that is gonna be part of the phase II project for RD. Of course, we have our normal maintenance CapEx that makes up the balance of that. Okay. Thank you. That's all I have, guys. Appreciate it. Thank you. Thank you. Your next question comes from Brian Butler from Stifel. Please go ahead. Good morning. Thanks for taking my questions. Morning. Morning, Brian. Just on the first, on renewable diesel, was there any renewable diesel produced before the feedstock pump failed? No, no. We were in the startup phase getting everything conditioned so that we could introduce feed. That's when the failure occurred. Okay. When you think of the repair and then how kind of the ramp up is gonna work, you know, you're gonna be producing something, I'm guessing, or at least your plan is to produce something in June. How does that ramp through the back half of 2023 if you think of that 8,000 kind of target of what can be produced before phase 2? Yeah. We have a production plan that's was really directed to us by the technologies provider, Haldor. We're gonna start, let's just say kind of mid-rate, and then we'll ramp up as the catalyst is conditioned. That'll ramp up over, you know, a four to six week kind of period is what our plan is. We won't move forward until we're together with our technology provider and make sure the catalyst and we've got the oversight looking there to prudently and bring the unit forward up to the max rate that you described. Okay. That means kind of early second or third quarter, you could be at that 8,000, you know, call it August, July. That would probably be our guess at this stage. We'll continue to provide that as we go forward, as we progress through startup and through the first several months of operation, the first month or two of operation. Okay. Then on the price for renewable diesel, can you give some color on kind of where that pricing stands if you think of the price stack, I guess you'd call it, where you have the ultra-low sulfur RINs, blenders tax credit, and then I guess LCFS, but that's not until fourth quarter or first quarter next year? Yeah, that's correct. That is the stack of credits, Doug, here. I think the, you know, values as well as diesel has come down, renewable diesel has come down as well. Obviously, the blender's when you're calculating that stack, the blender's credit's constant because it's a $1 credit, set at a value. The RINs obviously will come in and out as that market continues to balance. RINs have remained strong relatively, this year, we expect that to continue, you know, given the supply and demand balance on renewables. The real change in value of the stack, if you're tracking it, has been LCFS. Fortunate or not for us, right now, you know, foregoing the LCFS values on the first 90 days of production, as we described, is a fairly nominal impact because LCFS has come off in value so much in the past 4 months. You know, one couldn't predict that, but we'll take it. And it certainly makes us feel a little bit better about not having, not having that one on startup. Otherwise, the value is driven, you know, by the underlying diesel value, the volatility in the RIN, and then the changes in LCFS, and then you just add the dollar credit on top of that. Okay. Do you guys have maybe what a number would have been for first quarter, just kind of a reference point? I just wanna make sure we're kind of all on the same place. No. I mean, I just refer you to, you know, public indexes of that. You know, we don't quote a price on it and, you know, it changes every day. Right. Okay. I guess on the feedstock side, can we go through maybe kind of the strategy there and kind of what feedstock has been acquired and at what price that inventory's been built at? Well, let me just speak about infrastructure, which I think is important to appreciate. You know, we've had some questions around feedstocks in general, pretreatment, and RINs. It's all related. It's important to understand that as we get each pathway qualified, you have to obviously procure the feedstock at good values. You got to logistically manage that to get it to the plant. You got to have infrastructure to store it and segment it. You know, you can't. You can commingle like for like, but you can't just commingle feedstocks at will 'cause you'll violate your RIN pathways. There's very specific infrastructure that's been developed. You know, we have. When we look at feedstock preparation, the team's done tremendous work to put in the capabilities we need to supply the plant very economically. Those are both logistical and storage infrastructure. You know, it's a couple hundred thousand barrels of barging capability and capacity that we have now in service every day to feed the plant, and almost half a million barrels of storage for both the feedstocks and the RD production. I think when you compare this facility to others in terms of the logistical capabilities and capacity, storage infrastructure that was available in Mobile, both at the refinery and commercially available to port, it's been a tremendous asset in facilitating our startup in terms of building inventory to make sure we can run at the max rates that James can safely achieve with the operating team, and that feedstock supply is not a constraint, and that we're able to do it optimally against the marketplace, again, because we have the logistical capability to go get the feedstock and not depend on others. You know, it's a pretty thin supply chain that can be unreliable if one doesn't plan for it. We've really been focusing on the infrastructure to make sure we can reliably and economically obtain the feedstocks we need to run at max rates. Okay. One last one just on conventional. Can you update us on just kind of the sensitivity to the crack spread for, you know, like, let's say, a barrel, you know, a $1 barrel change? How should we think about that impact on the conventional business? Brian, you know, this is the tricky question as far as trying to pin down what the cracks are gonna do and the market conditions and, you know, what we're looking at. Obviously, at the moment, cracks have come in. There's a very broad view on where the industry is going, and it would be shooting in the dark. It could be really good, and it could be not good at all. You know, you gotta pull those research, you know, data points out for yourself. We think that we're on a good quarter for the second quarter. Cracks have come in some. I mean, you can see that, just go look up the 2-1-1 crack. We're managing to that and very focused on, you know, our efficiencies and our yields. I think we're set up really well to navigate whatever's coming our way. Okay. Thank you all very much for taking the questions. Thank you, Brian. Thank you. Your next question comes from Jason Gabelman from TD Cowen. Please go ahead. Morning. Thanks for taking my questions. I wanted to revisit the third-party pretreatment agreement, and I wanted to confirm, one, there is an agreement in place with a third-party pretreatment facility. If so, what are the amount of volumes that that covers for you, and what is the fee you have to pay to access those feedstocks? I think to clarify, we are in prequalification of those pretreatment processing capabilities. you know, there's agreements being negotiated. Those negotiations are subject to qualifying the processing capabilities of the plants that we're working with. those will vary by feedstock. We won't know what the yield loss will be in pretreatment until you run the molecules through the plant and have proved production. we've got to get through that phase, which we're starting now. And to clarify, it's not one facility. We don't wanna be dependent on, you know, any one single point of failure in the supply chain. we will prequalify multiple facilities and are on that pathway now. And those are also positioned to allow us to access different feedstocks, right? ranging, you know, from the tallow and fats market, fats, oils and greases market, as well as the DCO market, right? The chemistry and metallurgy necessary to process all those is different. In all likelihood, this will be multiple pretreatment contracts and facilities, not a single, just to be clear. Got it. Maybe I'll ask just for a clarification on that. What's the target in terms of the amount of volumes you expect to access from those facilities? When would you expect to have those agreements finalized? I would expect that volumetrically, we are trying to position pretreatment capacity equal to our production capacity, right? you know, the dance there is to sequence those to match the ramp up rate that James achieves with the plant and also, you know, the step up from phase one to phase two. but as we look at developing that supply chain and continuing to prequalify these facilities and the feedstocks seeding them, the production plan is to match the production capacity at the plant. Now whether we do that on every barrel or not is optionality that we wanna have in hand. It may not be optionality we use every day. If you look at the value of those feedstocks at the moment, you know, there's not terribly attractive margins associated with the pretreatment capacity, 'cause feedstocks have come into a different point of equilibrium on the price of the finished product. You know, you want some flexibility to be able to ramp those up and down. That's one of the advantages we see of contracting it versus constructing it, is we don't have fixed capital that forces us to run it when it's uneconomic. Okay. Understood. My follow-up is just on capital expenditures for the project. I think when you set out to build this renewable diesel facility, you envisioned having a third party build the hydrogen plant, and it seems like you may be committing some capital to that, and that's what phase two is, which wasn't initially envisioned. I guess with phase two, what do you expect the total cost of the renewable diesel project to be? Is there any adjustment to previous guidance for full year 20 23 CapEx? Thanks. Hey, Jason, this is James. What we've done, there's two things we've done on our capital, and we are following and supporting our hydrogen provider with it on capital. I don't have a final number to you there yet. We have moved some of the capital out from underneath them and executing ourselves because we number one, we have the capability to do it. Number two, we have the cash. Number three, that really unloaded our hydrogen supplier to allow them to just focus on the unit itself. We are also getting the site ready for that to be delivered. We're doing the civil work ourselves, putting the pilings in, which start in the next week or two. In turn, we'll move that facility in. It's already been delivered to the Port of Mobile. We will be moving in and after that. That's really what you've seen change in our point of view on which work we're gonna self-execute versus what we would them to do. That's changed a little bit. We are subject to them and where they are on their project to make sure we know exactly where we are as we get to final investment decision there on their piece of the work. Okay. You wanna say? Okay. If I could maybe sneak a third one in. I know there's been in the past some hope to improve the capital stack and refinance some of the debt and address some of the convertibles. Any update you could provide on that front on maybe how you're thinking about things unfolding on the balance sheet and timing around that would be helpful. Thanks, guys. Yeah, good question. You know, I think our near-term focus, you know, obviously, we were able to pay a little bit down on the term debt during Q1. Currently, the focus is, you know, getting the RD unit up and running, utilizing our current cash as working capital, around the inventory. You know, then we will start looking at what are our options to, you know, really clean up the balance sheet and get things structured the way we want long term after that. All right, got it. Thanks. Thank you, Dave. Thank you. There are no further questions at this time. You may proceed. Okay, everybody. Thank you very much for joining us this morning on this call. We're very, you know, pleased with the performance of the company and the business. Disappointed with the pump delay. We see that as, you know, a bump in the road, not a major concern for the company. Our team is on top of it. We'll deliver the production as we discussed. We really look forward to, as Chris said, you know, we're prepping to turn our balance sheet, you know, into a very strong balance sheet. We have been very reliable in our operations of the site, so we've really put a lot of things to bed. We've built our team out. I'm very excited, you know, to have Doug here at the table with us. He brings a whole new perspective around our feed origination and our finished product strategy. All of that's good. You know, we're actively developing our energy transition platform. That's really our focus. That's the core of our company. We're not, you know, coming into Mobile and acquiring a carbon asset to be another independent refiner. We're coming in to pull that asset into an energy transition platform and continue to develop the opportunities around that. There's a lot, you know, left to come. I'll leave it with that. Thank everybody again for being on the call. We look forward to, you know, a progress report, you know, as we start this unit up and really, close this part of our development journey with this RD plant, and then we'll go forward. Thank you. Ladies and gentlemen, this concludes your conference call for today. We thank you for participating and ask that you please disconnect your lines. Thank you.