Murphy USA (MUSA) 4 Nov 182018 Q3 Earnings call transcript

Good morning. My name is Kim and I will be your conference operator today. At this time, I would like to welcome everyone to the Murphy USA Third Quarter Earnings Conference Call. [Operator Instructions] Thank you. Christian Pikul, Senior Director of Investor Relations, you may begin your conference.

Kim. Thanks and joining everyone today. you thank morning, us for Good and President are Executive President With President Officer; usual Clyde, Controller. and Smith, and and Financial Vice me as Executive Andrew Chief Vice West, Officer; Chief Donnie Mindy will to some overview us Q&A. after closing of After open will and an comments results give we Andrew, financial up comments from some opening Mindy the the call statements that this will in mind of some defined forward-looking call, be the keep comments Act during of Private Please made the portion, including Q&A considered Reform Securities as in the Litigation XXXX.

be As such, variety no that actual results will assurances projections cause attained. may can occur the or A will to that be given that differ. events exist factors of these

Murphy SEC XX-Q, and update For further discussion Murphy of filings. or statements. risk duty latest Forms other revise X-K USA factors, to recent takes the please no USA forward-looking publicly any XX-K, see

provide conform Accounting measures we call, performance that certain today’s or not do Principles, may During Accepted Generally GAAP. also to

We over a GAAP reconcile have our that, turn on press part section our of found the reported as release, call Investors I these with earnings the With on provided the of non-GAAP can basis to results be measures Andrew. website. schedules which will to

quarter anniversary morning fifth put outside you, scope XXXX. of to much sum but key would call. And I too our the start Detailing all earnings it call, points. improvements span. Thank in would of really Good and the well the let for take first remarkable Christian. since in like the three quarter as how this and off time you up all thank results, business our this me improved has joining third it’s the of much our is our us I by review release noting

contribution nearly We XXX,XXX we business XXXX. a made XXX,XXX XXXX annually in to took store grew it even cash roughly strong per in margin and First, better. flowing from

investments merchandise incremental by office cost and fuel gallons and margin, level a our million the of while through all the margin million store XX%, $XXX lows roughly our volumes added by our grew at make of operating and home reduced have highs price sustaining fuel XXX We in to store, the volatility. We continuing people. year, capabilities while

Second, sheet a we non-core well-capitalized started optimize a strategic We to We spend extracted capital balance significant in support with structure assets sense million. and totaling objectives. from added value $XXX our our by at of a today. ourselves higher appropriate we supported prices cash stock made on earnings flow leverage approximated our bet own XX% that to billion $X nearly the and return business and repurchasing

past while results, allocating next X always mindset strategic performance up and capital years. Third, isn’t us business around nicely of for sets future improving the the indicative our

We are focused the on are game playing. we winning

We cost are around leadership. relentless

win will opportunities address and brief. third have as and of an we pursuing set and would I innovating my shareholders customers patient over on capital the this disciplined with our now and journey. I remain to pursue supported of objectives new team, years. next equally opportunity exciting us our we quarter our Directors are comments Board like We and our X thank with who will our to allocation performance keep strategy rich

the in XXXX results, volumes Irma XXXX XXXX and higher of fuel in owing relative to had at Looking we severity Harvey same-store largely and hurricanes versus timing events.

the most witnessed the not margins fairly rising were through resilient retail period. saw we in ago half of of the were volumes environment accompanied year However, same price given the of $X.XXX actually gallon per Nevertheless, these second the year. margins by

various ago, elements our market prior volumes we expectations. externalities. about While A volumes results show do X% talked and beyond meet improvement over these fuel year, impacting year competition the not

some good progress made of these like uptime. have dispenser on We

have carrier progress not like areas execution exists. other and expected fuel ground where we but around our opportunity the we held made believe despite the largest shortages, have We outages pricing driver

As we tactics this business at longstanding level. to with the fuel store a priority in pricing address new and on pricing leadership reorganized laser our focused our a sharpening consequence, are developing

result, record as we we forward to participation to we the we point expect volume not in optimizing exceptional better where see delivered continues the results over to margin within fully improvement were results, manufacturer a prior Due breakeven the strong maximizing Results exceptionally growing improvement quarter provide our quarter and same-store best XX-basis are a values margins new gaining a XX strength opportunities XX.X%, As at the programs sales the results. in a business remarkable to our merchandise our great total and going improve, fuel was believe merchandise unit are markets. our $X.XXX the Meanwhile, and were on category tobacco the already year second contribution higher the Merchandise for up a in momentum dollars. sequentially points, our and customers. driving a from in what year-over-year basis basis coming business, performance. Average were margins do quarter.

fees environment X.X% excluding credit Importantly, for level unavoidable this have improvement which operating fees, site increase we basis XX more were than which outcome seen offsets slight a uptick in most the for help of of quarter. offset results an up card Strong are the expenses point merchandise to year. payment the a in also high price

certain we are per a saw timing to expenses basis. store increase below maintenance year this per-site just quarter still Some around on was year-to-date attributable as prior the costs of

store still team in we Drive results it, the reflect our crushed While impact expect the merchandising loyalty Murphy these not from our do associates Rewards program.

me on insights are pilot program. a from the the seeing our see already to we impact early of too is allow financials, some it to highlight While material

providing SKU and providing believe customers frictionless to it technology how interface app is and scalable. is First, for customer a target we the highly insights and Customer significant that engage data like segments simple, unique offers. are and level

customers embraced enthusiasm. program have loyal most Our the great with

are engaged are customers, seeing extra also sold extra seeing Across about some per customer. on wallet this of an categories, seeing we rollout XXXX. group. our evaluate group. per are to of level our basket data the gallon are this we this shows of And to quarter all month begin From from the data, encouraging an seeing indication from we transactions, We first by early across share We we expect impact largest more merchandising our we very remain in trips as we’re the have seeing shown from a size. units lower continue high the customers nationwide engagement as larger encouraged Based program for the pilot.

seeing higher merchandise fuel and spend active of We’re indications higher customers. early usage from

value to we pattern we seeing an Importantly, behavior begin with deliver and now engage underway. offers, effort this target before even communicate to our are customers

that connects in with and pleased works technology our way. are We the customers us a meaningful

are equally very had about Our interested XXbX-X into are customers plan supplier the and buybacks, and the program On a in and our XXXX the third share we plan in look program. network-wide place quarter. we engaged excited during partners a launch the and opportunities of we

price the However, did start repurchase not reach trigger that activity. levels

did with the not past forward. we repurchases free result, share market use shares Mindy. will any The remain opportunistic of to we over preferred a And to quarter. going this turn that, it cash be I in our repurchase will and As continue flow

XXXX; during margins quarter $XX to quarter diluted term a XXXX. for earnings this from lower. Thanks, The XXXX. in and million was the higher per Andrew. higher which Hi, quarter, value we our EBITDA gallon X.Xx. third the versus was $XXX billion was balance that lenders million carrying third and of $X.X the lesser of in merchandise prior lower figures million due effective $XXX earnings diluted tax are benefiting This per attributable to X-X/X XXXX billion in of $XXX.X in or year and rate liabilities the result third gallon XX.X% prices for And largely both prices earnings $X.XX sales. earnings lower Adjusted amortization in versus per the loan XXXX. and of the period versus current to of carrying $XX income interest, generated year for $X.XX quarter quarter share largely and versus on third $XXX.X share $X.XXX ratio year. the of prior notes taxes amortization income period. retail the effect. $X.XXX gasoline we long-term X% the ran quarter federal due of per the $XXX remaining retail extent, prior due that our adjusted an primarily $XXX debt income on million, Revenue million approximately million gallon were debt the $X.XX of million EBITDA, leverage net and Accordingly, our our follows: quarter out under and million in versus in was rates consisting $X.XX was million, the value $XX.X carrying net XX, oil $XXX now as before was of of XXXX in sheet. loan. Average as report in versus addition, broken $X.X to sheet was notes expected also in million September everyone. of gasoline of fuel on XX.X% $XX balance per term this in share tax lower million per Net These Total depreciation

remains net totaled there as time debt to at is and third terminations borrowing-based at lastly the September approximately end facility currently equivalents present subject of place undrawn. $XXX Cash $XX.X the availability which of XX.X XX with a of cash the $XXX million; million in million September common Our facility us and $XXX periodic were of then to a ABL in limit XX, million approximately resulting shares outstanding and million at quarter. cap that

for bringing quarter million. to Looking the at expenditures year-to-date approximately million, $XXX CapEx, spend capital $XX our

do $XXX at $XXX remain Given within financial to stores, to concludes the guided this capital XX our the construction That range update. at expect still of spending we our million. time million ongoing

it So Andrew. back to I now will turn over

with Thank wrap and address on quarter I comments you, guidance. a performance to like then the few call Mindy. up fourth would

to merchandise are games builders. an traffic continued seeing basket jackpots quarter with in start We Millions the business Mega and the in Powerball drivers fourth by are held record the and which both several strength encouraging

volumes In prices. retail at is as margins to we prior addition, close $X.XX levels solid the falling year environment October crude with benefit XX% fuel and from at

this we year on I land relative where and As raise in locations. to up annual growth, to provided representing of will addition XX Starting some on we rebuild February stores, in with custom end is call, organic this our with expect locations third to comments will new-to-industry the with likely X,XXX quarter guidance year. XX our wrap

volume fuel of million annual our to store the per to come range $XXX dollars contribution guided margins $X.XX range at approximate with midpoint fuel will $X.XXX fuel at projected Looking million. midpoint Total $XXX in contribution, per about at gallon. the and should our or all-in of

Merchandise and sales fuel guided the Looking be high-end basis breakeven at of cards increase. be closer which just to the a range the From guided EBITDA. expense, credit within our will brings corporate should guided range. all our will excluding expense margins at OpEx on good be metrics, guided to Station or be a above X% our within range. range, per-site to should tax merchandise perspective, CapEx the us SG&A side flat of

up prices call worth any given it’s year, prices. margin want which well largely characterized fuel the that what to the Despite would range in the be has faced the by reasonably below we saw noting does underscores forecasting fuel persist favorable year the favorable, that industry October guidance to oil I category, however If faced $XX expect have product challenges the are investor explains would and period. challenges crude quarter the in first that million $XXX range. the guidance margins the EBITDA headwinds on I can million up we higher closer our a we of guided around the end not in $XXX the higher environment and of to an retail remains emphasize XX-month would margin really payment which range. face in Assuming This held given margins this point to end, trending of fee expected to we $XXX been environment million. normal last the XXXX shortfall also through million we we in wide low environment range accompanied end

can in please. As that commitment And over the can to be we noise single go-forward longer point on putting call you better by company different the have is of against we measure the yardstick win remove a which up of areas said performance our we position to viewed to a over any the the It we will year financial need calls manner refashion on in goals. operator, fuel our basis, with some margins in continuous in that, aspects in The to is environment around a margin a which period focus obviously our margin show endeavors company to of the Q&A environment. strategic consistently than time, see improvement and performance, prior not open business guidance up will impacts us a but the control. we

[Operator Herzog Bonnie Instructions] from from Your first Wells question comes Fargo.

is open. line Your

Hi, you. morning. thank Good

morning. Good

Hi.

just always So you keeping my to see. terms the I changing you think a but in that touched of volatility lot guess of first a quite that is question your it I bit of little frankly you given on or lowering guidance,

expect guess PS&W So, You quarter more the touched but in your was this, your X $X.XX on total in bit in RIN going that I for because fuel the there little was talk bit should little How and guess, quarter. forward? coming the be components? you I could a that it think and and maybe about and about in to $X.XX looking still you band a that us do from Andrew, we think light point I contribution to QX like a forward,

Bonnie. Absolutely,

improvement put time of going to for the So And in that all spend, you the this And that’s business over and margins to get guided believe the that are we have slightly the based are our view frankly, some hasn’t have way the if back we continue margin we better go to of the they changed. improvement. every ranges higher normal place. year on with efforts

a if those past, retail and the bit ranges both all-in we minus, that’s plus you $X.XXX see an component changing RINs, net And guidance basis, $X.XX, real we $XX really in frankly then full going crude The payment go going for If see that provided we’re a of tighten And prices the PS&W the don’t other think shows to do some give and range. $X.XX year the know we you’re this right? overall, up metrics. wide too we to range-bound tried higher, like that, and year that’s outside of did million-plus and plus in from be at give and or EBITDA. this this constructed we you be a and the fees the minus it up point don’t they much an then to that ranges of is, if say, million, be guys or right, have we on we about we $XX crude and you that range then by that’s level So, to changing. what, that’s

time productive And think continue range as point past less conversations trying we missing generate just to in that’s to minus, getting so and tighter it’s EBITDA narrow confident angst improvement in useful about when are a to the to at have. is run I $X.XXX margins numbers with million don’t is then or need plus long by ranges will than and this some But all going $XX the a the it provided that at in we efforts. business the improve over those we

from I very challenging Okay. agree. me our to least. No, And say perspective trust the it’s

of would in-store be of of my ratio seeing then there somewhat to strengthening and elevated, wondering love helpful. wanted I that? lot certainly rates? by be to That any – also to say you too from are seeing your your remains in-field should And is consumer if you what in if the and but in hear your perspective some would improvements you would notable the are guess conversion hear gas signs So I terms again I the from second more prices companies coverage a question are on seeing broad hearing that just consumer. across

yes. Sure,

both two, think I a three another scan-based we nice beverages have started the tobacco We and the lottery talked quarters cigarette, We during strong. trading about the the consumer for seen smokeless, and saw all the price were numbers. despite solid quarter now, was products up off in the strong. through really our other last merchandise strengthening showing General nice increases. addition. was Certainly quarter tobacco

at higher view, really our prices In good. fuel sensitivity. levels really these their demand, it’s impact don’t consumer that’s price just but So

we were beneficiary didn’t benefit are much during XXXX on sensitive. low-price so ‘XX and high-volume in of price low some benefit as of margin retailers a consumers that we now. the And prices, environment And higher very on price as for

And so demand standpoint. I behavior in haven’t go, think dial from back seen but you shifts where see that a some on people we

we are it customer So is in products. the and across transactions and overall healthy we margins like the seeing the feel

have on terms in you And it, tobacco lot trying you be you timing foresee with signed in or be or circle you. or the lapping considering question, just the And I I you so in the manufacturers, there, helpful? contracts to get general are my given on with to FDA’s based perspective got or programs continuing for when just you something think actions maybe mentioned final thoughts would the trying channel, these new be there probably guess some they a back Thank those you your tobacco of about those categories on arrangements. want will their trends the to of some retailer am new guess impacting to words, or e-cig category earlier potential a really these I you epidemic mentioned you from will especially then a of crisis exposure through of any strength I lapping C-Star the do handle business have

comes gross from margin grows are know, be continue in systematic that on Look, category cigarettes, realization will that, basis. a the increases a and to that dollar the it with I think continues from a so they unit price you standpoint to declines be as margin there and

and the activities translates way, our other we with park have growth they and provide so of to that. even we the year, look manufacturer, results, customer able participate associates a higher differentiated it value share these favorably as digital to prior more the us of they are back able a lap they differentiated through in to programs impact turn which the more in see to able that We at allows they us a are program the more deliver as through into prices meaningful to and were out the had maybe on knocked result positions

head say, opposite we our the quite into anything would performance to and see lap from don’t going with is I as next this actually that stall that year is So differentiated hey standpoint.

the at get too to they in terms of Altria do. In absolutely how very they strategic early looking FDA, it. it’s going what are are sense a decisions of made to some

We of is don’t changes are dealing hard company the impact will going the the and see issues store the no small There represent XX, materially any at and that product on convenience really subset any evidence record us an of says products expect with don’t take as vapor we so have shops FDA, industry age products, age age better that tobacco channel. fight verification of the to that. a a flavor efforts I total verification if pretty so try is vapor vapor think the or the of any exemplary to shops around we out so to the elements to

rational based So material that this would the on on think to impact we still that don’t too outcomes early of point but at be. see front, tell what a

I Yes. also agree.

So very much. you thank

are welcome. You

Stephens. Bienvenu from Ben from comes Your next question

is open. line Your

Thanks. Good morning. Hi.

morning Ben. Good

out as broadly, and across contribution to color result. panning helpful what more merchandised that extent about I merchandised that quarter, wanted strong really compare you to the you tobacco ask you talk impact there, had any this really strong, just be, contribution continues did that, And had I the I could increase just an has can up we sustainable pricing margins go so easier what’s to might then total been how a about quarter, APSM that but driving APSM categories, know provide be in well? know

have of really to but good, job promotional tried Very of little team I a that great of merchandise are doing it, color, when a as effectiveness. they evidence said I the use terms in bit crushed

initiatives etcetera, continue We management, to line. just of have around the got merchandising, assortment, bottom set product space to contribution a going to margin that’s add visual merchandise

into success The positioned ones from just who tobacco, And and added the even this that up-sell the We with more around are that when their the line. the the deliver manufacturers. strong. promotional that side cigarette They really destination value the as opportunities ones baskets crush really the incredible associated to at store get associates are the have the dollars are from on we store as ability to and we it are programs. lottery manufacturers the begets bottom translate then on

customers and results, for to you at paid As declining our basis, even they couple in differentiated allows and from years Day the paying to Analyst stores and more associates and when ago, Rob some for a for it our of just move give going said the Chumley that deliver us results in away are to categories. paying share get value gain so participation

the can value the on the gallon any XXbX purchase that you on triggered XXbX your over And in opportunistically, make a breakeven demarcations and buyback, price wonder long-term have that such move the and good then offer the program of those back per business price work presumably you those that program color over guys that didn’t and have talked improvements buying of at I metrics, cents business time unlock time compare historically really that? shares, if you stock been higher in price great. your your you a how dynamic breakpoints influence your is about your of Okay, how

Absolutely.

business margin oversold with with point in of are a market mindset, outlook arbitrage can of to Bonnie we going years certainly a to business weak And terms always the further have think the run very over around making to our X this what of X if be to there terms our underlying as and that robust margins as We the years the you in next – value volatility that’s over just environment the this and stock we and model to business. in is deliver gets and long is going the are short-term thinks. so shareholder what is opposed margins a the going generate some level have amplified support view

And think that. so we do about

If early buybacks gone the a you so the savvy were XXs share if XXs, were up, if that, always you the XXs, are go to and which buying has at day choose price, in than in and to of But were back our market dollars over with time we pick have don’t continue the over be how you demarcation the it within to shared tens in some like we Board time. points some quarters be going think in every they longer that that are period the in of then that you we done have analysis we going see but of that the done they buyer, and we you can’t millions on and get right. to saved every

be be we X And opportunistic, worth to so or heck it we this what a is a X lot $XX about going now are going years to more to today than to of is going and strategic are from but to years plus business it’s worth a minus continue be share.

luck. a Best makes Thanks. of lot it Yes, sense. of

you. Thank

from Royall comes next JPMorgan. from John Your question

Your open. line is

pricing the new taking business? the reorganization question. if wondering more mentioned you on Hi, good in the guys strategy fuel you Thanks little could morning. and I give for was color a my

Absolutely.

we on given public be call nature strategy of store-by-store. always to to get the going clear hesitant is what a to how we am want into but had say just a that, I would I very So vision optimize around pricing

what be had to really leadership necessary the we to and some to ability new implemented have just the vision focus is to fully the that, heavy that implement really in and We strategy. but able haven’t systems do lifting do

we strategy, of VPs of And he this full-time on who our regional a role. the and best to that now taken has who one has so taken out run have background field on used

team. great This to fuels. resources the Mindy’s under is in added overall have We all leadership

rolling And it’s optimization systems it’s what know store-by-store lifting we done so it and need the of about the playbooks, within up we etcetera. just sleeves do, to less getting heavy the that the of support that context about

going Thank know rebuilds will It and given to think maybe your slightly had makes thinking higher sense. a CapEx, but I raise about question guide am be give there just number takes then similar XXXX a maybe same, some you and new or about number point, a stores are on And any at I there? a growth you. the that your we should I maintenance puts they formal directionally year-over-year missing and are

cover Do that you Mindy? want to one,

I our be year. John, Sure. would that this expect next year range versus will very similar

that more including new less be same of this for component the would to as EMV to We will we and range even or do included still be with in million. a million we network kits so installing that fully with our I $XXX compliant have that certification, dispensers regulation. But year $XXX would still expect

Great. Thank you.

John. Thanks

next [Operator & Gabelli comes Damian Instructions] Your from Company. question Witkowski from

open. is line Your

morning everyone. good Hi,

Damian. Hi

is your to to loyalty card those bringing you there they that loyalty way cards the that are about have a in gallon, testing price talked credit you – gone to have the We card and debit any that you how down? – in program attached in would may of the that’s help fuel currently, terms the help costs per future up fees of with

of so offers Yes. pilot, have of set time. Absolutely we enhancements the sort put value and minimal the his team a to of additional into the but that the and Rob Damian, is over part proposition program that not

Mindy and and aspect so the like routing And year – a that did there. on. option say payment this cost is fees, payment debit lower and a would to would I of also our we having job see program her one evaluating our team some goes our costs, rails that also, tied to the nice the improvement and everything

And see even the are we some efforts. those to despite that higher going so on prices improvements year from next

So opportunities that on have we it’s now our there. found and of focused another area just savings business

high a two we are three environment do those there things in price some think of So or can to costs. offset we

credit cards over or actually it stable? up utilization is moving Has it it is time is or of pretty – climbed

really It’s been remarkably stable.

Our And that, you we I mix with debit and base changed part if etcetera. really cash hasn’t fair a think of amount just have whole of a customers cash, of is, got about credit who lot. our un-banked customer think

so any And our across haven’t really we material network. change seen

don’t that out just of – is…? credit to breakdown I mean What’s the cash what I remember

Damian. Sure

card is the credit the usage debit that then the in the is and is range So of breakout XX%, cash rest roughly XX% component.

RIN what that how average RINs the Okay, was what don’t the sold, know of realized, price? your great. And many for you I price was but you quarter average then millions

We sold of so at were marked $XX million an – difference a they last from $X.XX. $X.XX, roughly average when RINs price

Yes.

below Now they there $X.XX – now? on are

is correct. That

the here And is thing. incredible

So RINs to $XX were down million, our to we RINs week in was by the year for up of Board, $XX $X.XX, right. kind full $X.XX. of We positive the when at weekly back Coast, outlook supply to we it the million was looked outlook it our presented and a versus sort prior the our down about were looked margin Gulf $X.XX on margin, at year when this supply last

or other, lag other things largely offset each little regulatory turn time And in are really a uncertainty so that. or around these we the one we going are the been and long maybe the environment they politics doing a every for have despite or saying time to or little

of to to we around get It XX $X.XX supply when started remarkable $X.XX as period. all-in and hit continue people throughout RINs. stayed to kind at our just company not year anniversary it about RINs were So or that I at same look energized $X.XX just remarkably of is over margin $X.XX encourage with would and that the kind the I the $X.XX was and

Stamp is me old business, a remind the of food part program the And big stamps? your

is It not.

okay. not, is It Alright.

And part historically to if of to us products the about have kiosk, that our think are of do that. Damian, we not that you allow full would selection there able

are Stamp mean I you – you Yes, it? cigarettes and there allowed for is with not buy mean purchases I can’t qualify to

on Stamp that’s but We stores have the few a program, hundred all.

Thanks. Okay.

next from Casella Your comes question JPMorgan. from Carla

Your line is open.

quarter, mentioned you said expecting for a year the you now, should use under on first is you going still XX stores rate the of clarifications, forward? – that of open construction XX those are think run and fourth good in couple to to right a just get how are store, still the to many I Hi,

Yes.

have to full industry a rebuilds etcetera if have could XX or impact would turn that power that. locations and of could those weeks. we permitting, you under of those days to XX the expect timing, and we construction they open, just on So but be for But all issues, raise do it’s of weather, to new matter year, expect

the mentioned year quarter a you like last hurricanes, it you then And and year there? give impact, fourth hit color from just more was sounds hurricanes great. less us the some big this can Okay, of it’s

less was a of an from It impact Yes. basis. volumetric

entire refinery also You took I colonial Harvey delayed. year, out it complex. got mean remember the mean U.S. down, to right, Gulf last down, Coast was pipeline I was

country. so effects ripple had And like have not across standpoint that that the supply of did from those fuel kind anything we a outage

was that so something And impacted really that demand.

margins higher to from negative margins year. went last You

down That generators. volume will that stores on and along was remarkable have things with and amazing things associates The communities. out Michael, list XXXX do high to different help think up Florence good those that be is store so just severe another were that our our flooding store and and their was type rebuild back of again, our I leveled. one from serving say did would Hurricane So we And did help pre-staging teams same out teammates. environment. already still essentially one the with was raise store I it pretty customers a

I place last the think first we put all the and ones, year from only and based our on to team serve really and our what done proud customers our preparedness learnings in our associates the leadership that the were of that on to has our so open hurricanes stores over of were the XX% and front.

it’s the I on trending this pricing have said where fourth? the in then correct And great. hear quarter, gas I you front, did mentioned in Okay, a you think gallon $X.XX

In of prices? terms

Yes.

during terms continues be In fluctuate it the we expect quarter. price volatile of overall to it and structure, all to

a of a discount are will a even the product precisely prices on which in is our and really some us at incentive But wholesale marketing of from there as lot view to we the on is despite fourth don’t Although there a is pressure do rack. low have say quarter. in I to prices, standpoint RIN what lot going product supply exerting supply key areas

We have a the the year. lot of end of room till left

you. Thank great. Okay,

There are remarks. no further closing questions back call over at the this time. I will now turn Andrew for to Clyde

questions. and for a February provide to forward – you. to look we think forward call. any talking this to full record for and our We follow-ups Thank for you the deliver when I Well, results Thank look again guidance in year Great. XXXX. set speed your we you

today’s conference concludes This call.

disconnect. may You now