瓦萊羅能源 (VLO) 2022 Q2 法說會逐字稿

Greetings, and welcome to Valero's Second Quarter 2022 Earnings Conference Call. (Operator Instructions) As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Mr. Homer Bhullar, Vice President, Investor Relations. Thank you. Please go ahead.

您好，歡迎參加 Valero 的 2022 年第二季度收益電話會議。 （操作員說明）作為提醒，本次會議正在錄製中。現在我很高興向您介紹您的主持人，投資者關係副總裁荷馬·布拉爾先生。謝謝你。請繼續。

Good morning, everyone, and welcome to Valero Energy Corporation's Second Quarter 2022 Earnings Conference Call. With me today are Joe Gorder, our Chairman and CEO; Lane Riggs, our President and COO; Jason Fraser, our Executive Vice President and CFO; Gary Simmons, our Executive Vice President and Chief Commercial Officer; and several other members of Valero's senior management team.

大家早上好，歡迎參加 Valero Energy Corporation 的 2022 年第二季度收益電話會議。今天和我在一起的是我們的董事長兼首席執行官喬·戈德； Lane Riggs，我們的總裁兼首席運營官； Jason Fraser，我們的執行副總裁兼首席財務官；我們的執行副總裁兼首席商務官 Gary Simmons；以及 Valero 高級管理團隊的其他幾位成員。

If you have not received the earnings release and would like a copy, you can find one on our website at investorvalero.com. Also attached to the earnings release are tables that provide additional financial information on our business segments and reconciliations and disclosures for adjusted metrics mentioned on this call. If you have any questions after reviewing these tables, please feel free to contact our Investor Relations team after the call.

如果您尚未收到收益發布並想要一份副本，您可以在我們的網站investorvalero.com 上找到一份。收益發布還附有表格，這些表格提供了有關我們業務部門的額外財務信息以及本次電話會議中提到的調整指標的對賬和披露。如果您在查看這些表格後有任何疑問，請在通話後隨時聯繫我們的投資者關係團隊。

I would now like to direct your attention to the forward-looking statement disclaimer contained in the press release. In summary, it says that statements in the press release and on this conference call that state the company's or management's expectations or predictions of the future are forward-looking statements intended to be covered by the safe harbor provisions under federal securities laws. There're many factors that could cause actual results to differ from our expectations, including those we've described in our filings with the SEC.

我現在想提請您注意新聞稿中包含的前瞻性聲明免責聲明。總之，它表示新聞稿和本次電話會議中陳述公司或管理層對未來的預期或預測的陳述是前瞻性陳述，旨在涵蓋聯邦證券法的安全港條款。有許多因素可能導致實際結果與我們的預期不同，包括我們在提交給美國證券交易委員會的文件中描述的那些。

Now I'll turn the call over to Joe for opening remarks.

現在我將把電話轉給喬做開場白。

Thanks, Homer, and good morning, everyone. I'm pleased to report that our team maximized refining run rates in the second quarter, while executing our long-standing commitment to safe, reliable and environmentally responsible operations. In fact, we've been increasing throughput since 2020 as demand recovered along with the easing of COVID-19 pandemic restrictions. Our refinery utilization rate increased from the pandemic low of 74% in the second quarter of 2020 to 94% in the second quarter of 2022.

謝謝，荷馬，大家早上好。我很高興地報告，我們的團隊在第二季度最大限度地提高了煉油運行率，同時履行了我們對安全、可靠和對環境負責的運營的長期承諾。事實上，自 2020 年以來，隨著需求的恢復以及 COVID-19 大流行限制的放寬，我們一直在增加吞吐量。我們的煉油廠利用率從 2020 年第二季度的 74% 的大流行低點提高到 2022 年第二季度的 94%。

Refining margins in the second quarter were supported by continued strength in product demand, coupled with low product inventories and continued energy cost advantage for U.S. refineries compared to global competitors. Product supply is constrained as a result of significant refinery capacity rationalization that was triggered by the COVID-19 pandemic, driving the shutdown of marginal refineries and conversion of several refineries to produce low carbon fuels. In addition, the Russia-Ukraine conflict intensified the supply tightness with less Russian products in the global market. However, product demand has been strong due to the summer driving season and pent-up demand for travel.

第二季度煉油利潤率受到產品需求持續強勁、產品庫存低以及與全球競爭對手相比美國煉油廠持續的能源成本優勢的支持。由於 COVID-19 大流行引發了煉油廠產能的顯著合理化，導致產品供應受到限制，導致邊緣煉油廠關閉以及幾家煉油廠轉產以生產低碳燃料。此外，俄烏衝突加劇了供應緊張，全球市場上俄羅斯產品減少。然而，由於夏季駕駛季節和被壓抑的旅行需求，產品需求一直很強勁。

Valero continues to maximize refinery throughput and to help supply the market at this time when global product inventories are at historically low levels. Our low-carbon renewable diesel and ethanol segments also performed well in the quarter. The renewable diesel segment had record production volumes as the DGD expansion, DGD 2, ramped up to full capacity.

Valero 繼續最大限度地提高煉油廠的產量，並在全球產品庫存處於歷史低位的時候幫助供應市場。我們的低碳可再生柴油和乙醇部門在本季度也表現良好。隨著 DGD 擴建項目 DGD 2 達到滿負荷，可再生柴油部門的產量創歷史新高。

On the strategic front, we remain on track with our growth projects that reduce cost and improve margin capture. The Port Arthur Coker project, which is expected to increase the refinery's throughput capacity, while also improving turnaround efficiency, is expected to be completed in the first half of 2023. As for low-carbon projects, the DGD 3 renewable diesel project located next to our Port Arthur refinery is expected to be operational in the fourth quarter of 2022. The completion of this 470 million-gallon per year plant is expected to nearly double DGD's total annual capacity to approximately 1.2 billion gallons of renewable diesel and 50 million gallons of renewable naphtha.

在戰略方面，我們繼續推進我們的增長項目，以降低成本並提高利潤率。亞瑟港焦化項目預計將提高煉油廠的吞吐能力，同時提高周轉效率，預計將於 2023 年上半年完成。低碳項目方面，位於附近的 DGD 3 可再生柴油項目我們的亞瑟港煉油廠預計將於 2022 年第四季度投入運營。這座年產 4.7 億加侖的工廠預計將使 DGD 的年總產能增加近一倍，達到約 12 億加侖可再生柴油和 5000 萬加侖可再生能源石腦油。

BlackRock and Navigator's carbon sequestration project is progressing on schedule and is expected to begin start-up activities in late 2024. We are expected to be the anchor shipper with 8 of our ethanol plants connected to the system, which should provide a lower carbon intensity ethanol product and generate higher product margins. And we continue to evaluate other low-carbon opportunities such as sustainable aviation fuel, renewable hydrogen and additional renewable naphtha and carbon sequestration projects.

貝萊德和 Navigator 的碳封存項目正在按計劃進行，預計將於 2024 年底開始啟動活動。我們預計將成為錨定托運人，將我們的 8 家乙醇工廠連接到該系統，這將提供較低碳強度的乙醇產品並產生更高的產品利潤。我們將繼續評估其他低碳機會，例如可持續航空燃料、可再生氫以及其他可再生石腦油和碳封存項目。

On the financial side, we remain committed to our capital allocation framework, which prioritizes a strong balance sheet and an investment-grade credit rating. We incurred $4 billion of incremental debt in 2020 during the low-margin environment resulting from the pandemic. Since then, we've reduced our debt by $2.3 billion, including a $300 million reduction in June, and we'll evaluate further deleveraging opportunities going forward.

在財務方面，我們仍然致力於我們的資本配置框架，該框架優先考慮強大的資產負債表和投資級信用評級。在大流行導致的低利潤環境中，我們在 2020 年增加了 40 億美元的債務。從那時起，我們已將債務減少了 23 億美元，其中 6 月份減少了 3 億美元，我們將評估未來進一步去槓桿化的機會。

In summary, we remain focused on safe, reliable and environmentally responsible operations and on maximizing system throughput to provide the essential products that the world needs. And we continue to strengthen our long-term competitive advantage through refining optimization projects and to grow our business through innovative low-carbon fuels that enhance the margin capability of our portfolio. So with that, Homer, I'll hand the call back to you.

總之，我們始終專注於安全、可靠和對環境負責的運營，以及最大限度地提高系統吞吐量，以提供世界所需的基本產品。我們繼續通過煉油優化項目加強我們的長期競爭優勢，並通過提高我們投資組合利潤率能力的創新低碳燃料來發展我們的業務。所以，荷馬，我會把電話交給你。

Thanks, Joe. For the second quarter of 2022, net income attributable to Valero stockholders was $4.7 billion or $11.57 per share compared to $162 million or $0.39 per share for the second quarter of 2021. Adjusted net income attributable to Valero stockholders was $4.6 billion or $11.36 per share for the second quarter of 2022 compared to $260 million or $0.63 per share for the second quarter of 2021. For reconciliations to adjusted amounts, please refer to the earnings release and the accompanying financial tables.

謝謝，喬。 2022 年第二季度，歸屬於 Valero 股東的淨利潤為 47 億美元或每股 11.57 美元，而 2021 年第二季度為 1.62 億美元或每股 0.39 美元。調整後歸屬於 Valero 股東的淨利潤為 46 億美元或每股 11.36 美元2022 年第二季度，2021 年第二季度為 2.6 億美元或每股 0.63 美元。有關調整後金額的對賬，請參閱收益發布和隨附的財務表。

The refining segment reported $6.2 billion of operating income for the second quarter of 2022 compared to $349 million for the second quarter of 2021. Adjusted operating income was $6.1 billion for the second quarter of 2022 compared to $442 million for the second quarter of 2021. Refining throughput volumes in the second quarter of 2022 averaged 3 million barrels per day, which was 127,000 barrels per day higher than the second quarter of 2021. Throughput capacity utilization was 94% in the second quarter of 2022 compared to 90% in the second quarter of 2021. Refining cash operating expenses of $5.20 per barrel in the second quarter of 2022 were $1.07 per barrel higher than the second quarter of 2021, primarily attributed to higher natural gas prices.

煉油部門報告稱，2022 年第二季度的營業收入為 62 億美元，而 2021 年第二季度為 3.49 億美元。2022 年第二季度調整後的營業收入為 61 億美元，而 2021 年第二季度為 4.42 億美元。 2022年第二季度的平均吞吐量為每天300萬桶，比2021年第二季度增加12.7萬桶/天。2022年第二季度的產能利用率為94%，而第二季度為90% 2021. 2022 年第二季度煉油現金運營費用為每桶 5.20 美元，比 2021 年第二季度每桶高 1.07 美元，這主要歸因於天然氣價格上漲。

Renewable diesel segment operating income was $152 million for the second quarter of 2022 compared to $248 million for the second quarter of 2021. Renewable diesel sales volumes averaged 2.2 million gallons per day in the second quarter of 2022, which was 1.3 million gallons per day higher than the second quarter of 2021. The higher sales volumes were attributed to DGD 2's operations, which started up in the fourth quarter of 2021.

2022 年第二季度可再生柴油部門營業收入為 1.52 億美元，而 2021 年第二季度為 2.48 億美元。2022 年第二季度可再生柴油銷量平均為每天 220 萬加侖，比每天增加 130 萬加侖銷量高於 2021 年第二季度。銷量增加歸因於 DGD 2 的運營，該運營於 2021 年第四季度開始。

The ethanol segment reported $101 million of operating income for the second quarter of 2022 compared to $99 million for the second quarter of 2021. Adjusted operating income, which primarily excludes the gain from the sale of our Jefferson ethanol plant, whose operations were idled in 2020 was $79 million for the second quarter of 2022. Ethanol production volumes averaged 3.9 million gallons per day in the second quarter of 2022.

乙醇部門報告 2022 年第二季度的營業收入為 1.01 億美元，而 2021 年第二季度的營業收入為 9900 萬美元。調整後的營業收入，主要不包括出售杰斐遜乙醇工廠的收益，該工廠的運營在 2020 年閒置2022 年第二季度為 7900 萬美元。2022 年第二季度的乙醇產量平均為每天 390 萬加侖。

For the second quarter of 2022, G&A expenses were $233 million and net interest expense was $142 million. Depreciation and amortization expense was $602 million and income tax expense was $1.3 billion for the second quarter of 2022. The effective tax rate was 22%.

2022 年第二季度，G&A 費用為 2.33 億美元，淨利息費用為 1.42 億美元。 2022 年第二季度的折舊和攤銷費用為 6.02 億美元，所得稅費用為 13 億美元。有效稅率為 22%。

Net cash provided by operating activities was $5.8 billion in the second quarter of 2022. Excluding the favorable impact from the change in working capital of $594 million, and the other joint venture members 50% share of DGD's net cash provided by operating activities, excluding changes in DGD's working capital, adjusted net cash provided by operating activities was $5.2 billion.

2022年第二季度經營活動提供的現金淨額為58億美元。不包括營運資金變動的有利影響5.94億美元，其他合資成員佔DGD經營活動提供的現金淨額的50%，不包括變動在 DGD 的營運資金中，經調整的經營活動提供的淨現金為 52 億美元。

With regard to investing activities, we made $653 million of capital investments in the second quarter of 2022, of which $298 million was for sustaining the business, including costs for turnarounds, catalysts and regulatory compliance and $355 million was for growing the business. Excluding capital investments attributable to the other joint venture members 50% share of DGD, and those related to other variable interest entities, capital investments attributable to Valero were $524 million in the second quarter of 2022.

在投資活動方面，我們在 2022 年第二季度進行了 6.53 億美元的資本投資，其中 2.98 億美元用於維持業務，包括周轉、催化劑和合規成本，3.55 億美元用於發展業務。不包括歸屬於其他合資企業成員 50% DGD 股份的資本投資，以及與其他可變利益實體相關的資本投資，2022 年第二季度歸屬於 Valero 的資本投資為 5.24 億美元。

Moving to financing activities. Earlier this month, our Board of Directors approved a regular quarterly common stock dividend of $0.98 per share payable on September 1 to holders of record on August 4. We returned 42% of adjusted net cash provided by operating activities to our stockholders through dividends and stock buybacks in the quarter, which is at the low end of our annual 40% to 50% target payout ratio.

轉向融資活動。本月早些時候，我們的董事會批准了 9 月 1 日向 8 月 4 日登記在冊的持有人支付每股 0.98 美元的定期季度普通股股息。我們通過股息和股票向股東返還了經營活動提供的調整後淨現金的 42%本季度的回購，這是我們每年 40% 至 50% 目標支付率的低端。

With respect to our balance sheet, we completed another debt reduction transaction in the second quarter that reduced Valero's debt by $300 million. As Joe already noted, this transaction, combined with the debt reduction and refinancing transactions completed in the second half of 2021 and the first quarter of 2022, have collectively reduced Valero's debt by $2.3 billion. We ended the quarter with $10.9 billion of total debt, $2 billion of finance lease obligations and $5.4 billion of cash and cash equivalents. The debt-to-capitalization ratio, net of cash and cash equivalents. Was 25%, down from the pandemic high of 40% at the end of March 2021, which was largely the result of the debt incurred during the height of the COVID-19 pandemic. And we ended the quarter well capitalized with $4.6 billion of available liquidity, excluding cash.

關於我們的資產負債表，我們在第二季度完成了另一項減債交易，使 Valero 的債務減少了 3 億美元。正如喬已經指出的那樣，這筆交易，加上在 2021 年下半年和 2022 年第一季度完成的減債和再融資交易，總共使 Valero 的債務減少了 23 億美元。截至本季度末，我們的總債務為 109 億美元，融資租賃義務為 20 億美元，現金和現金等價物為 54 億美元。扣除現金和現金等價物後的債務資本化比率。為 25%，低於 2021 年 3 月底的大流行高點 40%，這主要是由於在 COVID-19 大流行高峰期間產生的債務。我們在本季度結束時資本充足，可用流動資金為 46 億美元，不包括現金。

Turning to guidance. We expect capital investments attributable to Valero for 2022 to be approximately $2 billion, which includes expenditures for turnarounds, catalysts and joint venture investments. About 60% of that amount is allocated to sustaining the business and 40% to growth. About half of the growth capital in 2022 is allocated to expanding our low carbon fuels businesses.

轉向指導。我們預計 2022 年歸屬於 Valero 的資本投資約為 20 億美元，其中包括轉型、催化劑和合資企業投資的支出。其中約 60% 用於維持業務，40% 用於增長。 2022 年大約一半的增長資本用於擴展我們的低碳燃料業務。

For modeling our third quarter operations, we expect refining throughput volumes to fall within the following ranges: Gulf Coast at 1.72 million to 1.77 million barrels per day; Mid-Continent at 420,000 to 440,000 barrels per day; West Coast at 255,000 to 275,000 barrels per day; and North Atlantic at 445,000 to 465,000 barrels per day. We expect refining cash operating expenses in the third quarter to be approximately $5.40 per barrel, which is higher than the second quarter, primarily due to higher energy costs.

對於我們第三季度的運營建模，我們預計煉油吞吐量將在以下範圍內：墨西哥灣沿岸每天 172 萬至 177 萬桶；中部大陸，每天 420,000 至 440,000 桶；西海岸，每天 255,000 至 275,000 桶；和北大西洋，每天 445,000 至 465,000 桶。我們預計第三季度煉油現金運營費用約為每桶 5.40 美元，高於第二季度，主要是由於能源成本較高。

With respect to the renewable diesel segment, we expect sales volumes to be approximately 750 million gallons in 2022 with the anticipated start-up of DGD 3 in the fourth quarter. Operating expenses in 2022 should be $0.45 per gallon, which includes $0.15 per gallon for noncash costs such as depreciation and amortization.

關於可再生柴油細分市場，我們預計 2022 年的銷量約為 7.5 億加侖，預計 DGD 3 將於第四季度啟動。 2022 年的運營費用應為每加侖 0.45 美元，其中包括折舊和攤銷等非現金成本每加侖 0.15 美元。

Our ethanol segment is expected to produce 3.9 million gallons per day in the third quarter. Operating expenses should average $0.50 per gallon, which includes $0.05 per gallon for noncash costs such as depreciation and amortization.

我們的乙醇部門預計將在第三季度每天生產 390 萬加侖。運營費用平均應為每加侖 0.50 美元，其中包括每加侖 0.05 美元的非現金成本，例如折舊和攤銷。

For the third quarter, net interest expense should be about $140 million and total depreciation and amortization expense should be approximately $640 million. For 2022, we expect G&A expenses, excluding corporate depreciation, to be approximately $870 million.

第三季度，淨利息支出約為 1.4 億美元，折舊和攤銷總額約為 6.4 億美元。到 2022 年，我們預計 G&A 費用（不包括公司折舊）約為 8.7 億美元。

That concludes our opening remarks. Before we open the call to questions, we again respectfully request that callers adhere to our protocol of limiting each turn in the Q&A to 2 questions. If you have more than 2 questions, please rejoin the queue as time permits. Please respect this request to ensure other callers have time to ask their questions.

我們的開場白到此結束。在我們打開問題電話之前，我們再次恭敬地要求來電者遵守我們的協議，將 Q&A 中的每一輪限制為 2 個問題。如果您有超過 2 個問題，請在時間允許的情況下重新加入隊列。請尊重此要求，以確保其他來電者有時間提出問題。

(Operator Instructions) The first question today is coming from Manav Gupta of Credit Suisse.

（操作員說明）今天的第一個問題來自瑞士信貸的 Manav Gupta。

Guys, I would actually ask only 1 question, and that is basically, can you help us understand the demand dynamics out there, there were some worries on demand destruction then there were some worries on recessionary demand. The conversations we are having indicate that's not the case, but you have the most diversified footprint. So help us understand gasoline or diesel, what are you seeing in terms of demand out there? And I'll leave it there.

伙計們，我實際上只會問一個問題，基本上，你能幫助我們了解那裡的需求動態嗎？對需求破壞有一些擔憂，然後對衰退需求有一些擔憂。我們進行的對話表明情況並非如此，但您擁有最多樣化的足跡。因此，請幫助我們了解汽油或柴油，您對那裡的需求有何看法？我會把它留在那裡。

Manav, this is Gary. I can tell you through our wholesale channel, there's really no indication of any demand destruction. In June, we actually set sales records. We sold 911,000 barrels a day in the month of June, which surpassed our previous record in August of '18 where we did 904,000 barrels a day. We read a lot about demand destruction, mobility data showing in that range of 3% to 5% demand destruction. Again, we're not seeing it in our system. We did see a bit of a lull in the first couple of weeks of July, but our 7-day averages now are back to kind of that June level, with gasoline at pre-pandemic levels and diesel continuing to trend above pre-pandemic levels.

馬納夫，這是加里。我可以通過我們的批發渠道告訴你，確實沒有任何需求破壞的跡象。六月，我們實際上創造了銷售記錄。我們在 6 月份每天售出 911,000 桶，超過了我們在 18 年 8 月每天售出 904,000 桶的記錄。我們閱讀了很多關於需求破壞的信息，移動數據顯示在 3% 到 5% 的需求破壞範圍內。同樣，我們沒有在我們的系統中看到它。我們確實在 7 月的前幾週看到了一些平靜，但我們的 7 天平均值現在回到了 6 月份的水平，汽油處於大流行前的水平，而柴油的趨勢繼續高於大流行前的水平.

The next question is coming from Theresa Chen of Barclays.

下一個問題來自巴克萊銀行的Theresa Chen。

Great quarter team, very impressive. In light of the macro developments, both on the supply side and the demand side, what are your thoughts about where the mid-cycle crack is at now structurally?

偉大的四分之一隊，非常令人印象深刻。鑑於宏觀的發展，無論是在供給端還是需求端，您對目前週期中期裂縫在結構上的位置有何看法？

Well, Theresa, this is Lane. I'll take a crack at it and Gary can tune me a little bit. But obviously, right now, it's significantly above the mid-cycle or at least our view of mid-cycle and probably anybody else's for that matter. But with that said, you've got to remember our idea of a mid-cycle as we go through an entire economic cycle from recession to recession. And so that's kind of -- it's sort of scripted and defined, and we worked through those numbers with a few adjustments. But I think we believe, at least we -- the world seems to be trending in a place through the next economic cycle, for a number of reasons, whether it's just sort of -- the way the energy transition is working, sort of the lack of investment in fossil fuels, for a number of these types of reasons, we sort of see that you'll probably be above what our mid-cycle is today for the next economic cycle.

好吧，特蕾莎，這是萊恩。我會試一試，加里可以稍微調整一下。但顯然，現在，它明顯高於週期中期，或者至少高於我們對中期週期的看法，而且可能其他任何人都認為這一點。但是話雖如此，當我們經歷從衰退到衰退的整個經濟周期時，你必須記住我們關於中期週期的想法。所以這是一種 - 它是一種腳本和定義，我們通過這些數字進行了一些調整。但我認為我們相信，至少我們 - 世界似乎在下一個經濟周期中趨於一致，出於多種原因，無論是 - 能源轉型的運作方式，缺乏對化石燃料的投資，出於這些類型的原因，我們看到你可能會在下一個經濟周期中高於我們今天的中期週期。

Yes, I agree with what Lane said, really, our market outlook calls for a prolonged period where we would be above what we currently have as mid-cycle. And there are a number of structural changes. When you talk about high energy costs as a result of higher natural gas costs, in the U.S., we have lower feedstock costs due to our proximity to crude and natural gas. And then you're getting refiners that are now having to pay some form of a carbon tax, which raises their cost as well. So as long as supply and demand balances are tight and there's a call on that capacity, it would be logical to assume it's going to start to reset that mid-cycle level.

是的，我同意萊恩所說的，真的，我們的市場前景需要很長一段時間，我們將高於目前處於週期中期的水平。並且有許多結構性變化。當您談論由於天然氣成本較高而導致的高能源成本時，在美國，由於靠近原油和天然氣，我們的原料成本較低。然後你會看到煉油廠現在不得不支付某種形式的碳稅，這也增加了他們的成本。因此，只要供需平衡很緊，並且有對產能的需求，假設它將開始重置週期中期水平是合乎邏輯的。

And kind of picking back on Manav's question related to demand. If we do see a period of demand contraction or demand softness, what do you think the risk is at this point for the industry as a whole to build overwhelming amounts of inventories given that the refining industry just lived through 2.5 years of having to be extremely flexible, shutting down capacity, et cetera, to run through the pandemic?

並且有點回擊 Manav 與需求相關的問題。如果我們確實看到一段時間的需求收縮或需求疲軟，那麼鑑於煉油行業剛剛經歷了 2.5 年的極度疲軟，您認為整個行業在這一點上建立大量庫存的風險是什麼？靈活、關閉產能等等，以度過大流行？

Yes. So again, kind of referring back to those structural advantages we have in the U.S. on feedstock costs and energy costs and freight advantages going to South America. We feel like we're in such a strong competitive position. Even if demand fell here in the United States, we would be able to export volume and be competitive doing that in South America.

是的。因此，再次提及我們在美國在原料成本和能源成本方面的結構性優勢以及前往南美的貨運優勢。我們覺得我們處於如此強大的競爭地位。即使美國的需求下降，我們也能夠在南美出口量並具有競爭力。

Well, and this is Lane. Theresa, to your point, I mean, the extreme measures that industry took to deal with the pandemic demand destruction. It's hard to imagine outside of another pandemic demand destruction where you're going through a recession would have anything remotely close to that. And obviously, going through the pandemic, quite a bit of capacity was taken offline.

嗯，這就是萊恩。特蕾莎，就你的觀點而言，我的意思是，工業界為應對大流行的需求破壞而採取的極端措施。很難想像在另一場大流行需求破壞之外，你正在經歷經濟衰退，會有任何與此相近的東西。顯然，在經歷了大流行之後，相當多的容量被取消了。

The next question is coming from Doug Leggate of Bank of America.

下一個問題來自美國銀行的 Doug Leggate。

So guys, I guess kind of a follow-up on the mid-cycle question, but I'm going to ask it a little differently given your unique insights to this. Pembroke is clearly an insight to what's happening in Europe, that, today, I guess, is paying somewhere around $60 per 1,000 cubic feet per natural gas. The U.K. obviously is a little lower than that. But when you think about the structural cost advantage of the U.S., which is where we are focused, I guess, on mid-cycle as opposed to global, what are the dynamics that you're seeing? Is Pembroke making money today? What's this relative competitiveness as a benchmark, let's say, for Europe versus the U.S.?

所以伙計們，我想這是對中期問題的跟進，但考慮到你們對此的獨特見解，我會提出一些不同的問題。彭布羅克顯然是對歐洲正在發生的事情的洞察力，我猜，今天，每 1,000 立方英尺/份天然氣的價格約為 60 美元。英國顯然比這低一點。但是，當您考慮美國的結構性成本優勢時，我想這是我們關注的重點，在周期中期而不是全球，您看到的動態是什麼？彭布羅克今天賺錢了嗎？比方說，歐洲與美國的相對競爭力作為基準是什麼？

Doug, it's Lane. So it's a very good question, and we sort of talked about this quite a bit in terms of this advantage United States is having with respect to, obviously, energy prices. Today, Pembroke is doing well. It did particularly well in this past quarter. To give more of a precise answer around natural gas, we've been mainly paying about $30, this morning it was $50 per million BTU, but I would say it's more in a $30 range. There's quite a bit of volatility. However, the U.K. is a little bit better positioned than Europe is, in terms of the value that they're paying for gas. So even if there's another step change, and we're not -- we don't refine over there. So we're just sort of reading the same things that you guys are. There's another step change in terms of how much gas is costing in the U.K. versus some of these European refineries that are maybe not in the best situation around natural gas.

道格，我是萊恩。所以這是一個非常好的問題，我們就美國在能源價格方面的優勢進行了相當多的討論。今天，彭布羅克做得很好。它在過去一個季度表現特別好。為了更準確地回答有關天然氣的問題，我們主要支付了大約 30 美元，今天早上是每百萬英熱單位 50 美元，但我想說它更多的是在 30 美元的範圍內。有相當大的波動性。然而，就他們為天然氣支付的價值而言，英國的定位比歐洲要好一些。因此，即使有另一個步驟變化，我們也沒有——我們不會在那裡進行改進。所以我們只是在讀和你們一樣的東西。就英國的天然氣成本而言，與其中一些歐洲煉油廠相比，這些煉油廠在天然氣方面的情況可能不是最好的，這方面又發生了一步變化。

So Pembroke is doing well. I mean -- so I wouldn't consider it actually to be at the marginal capacity today. Obviously, the fact that they're doing well means that we're way past them as being somebody like even them being the marginal capacity sitting out there setting mainly the heat crack.

所以彭布羅克做得很好。我的意思是 - 所以我不會認為它實際上處於今天的邊際容量。顯然，他們做得很好這一事實意味著我們已經超越了他們，成為像他們一樣的人，他們只是坐在那兒的邊際能力，主要是熱裂紋。

Lane, if I may follow up real quick. Where does Pembroke sit in to the extent you're prepared to share on your portfolio cost curve today?

萊恩，如果我能很快跟進的話。就您今天準備在投資組合成本曲線上分享的程度而言，彭布羅克處於什麼位置？

Well, today, it's high, right, because of the cost of natural gas. But when you look at them on the other issues, whether it's our sort of our cost per barrel or all those -- sort of on an energy adjusted basis, they're one of the most competitive refineries in Europe and actually looked pretty good on a U.S. basis on Solomon. I'm not going to give exact position, but it's a very efficient refinery. They do -- they are very, very competitive in the Atlantic Basin.

嗯，今天，它很高，對，因為天然氣的成本。但是，當您在其他問題上查看它們時，無論是我們的每桶成本還是所有這些 - 在能源調整的基礎上，它們是歐洲最具競爭力的煉油廠之一，實際上看起來相當不錯所羅門的美國基礎。我不會給出確切的位置，但它是一個非常高效的煉油廠。他們確實——他們在大西洋盆地非常非常有競爭力。

Okay. My follow-up is hopefully a quick one. You've cut your net debt in half over the past year, I guess. I, for one, as you know, I'm delighted to see some cash building on the balance sheet. I'm just curious how you think about bulletproofing your balance sheet versus stepping into perhaps share buybacks over the foreseeable future? And I'll leave it there.

好的。希望我的後續行動很快。我猜，在過去的一年裡，你的淨債務減少了一半。我，正如你所知，我很高興看到資產負債表上出現了一些現金。我只是好奇你如何看待在可預見的未來保護你的資產負債表而不是介入可能的股票回購？我會把它留在那裡。

Thanks, Doug. This is Jason. I can take that one. We'll be doing basically the same thing we've been doing in the past. Our capital allocation priorities haven't changed. We said when the margins started recovering, we start paying down our debt and build cash as a priority. We made really good progress on both of those fronts. As Joe and Homer mentioned on the debt side, and you mentioned, we had a series of transactions starting last September, running through June 1, we paid back $2.3 billion of our COVID debt so far.

謝謝，道格。這是傑森。我可以拿那個。我們將做與過去基本相同的事情。我們的資本配置重點沒有改變。我們說過，當利潤率開始恢復時，我們會開始償還債務並優先積累現金。我們在這兩個方面都取得了非常好的進展。正如喬和荷馬在債務方面提到的，你也提到，我們從去年 9 月開始進行了一系列交易，一直持續到 6 月 1 日，到目前為止，我們償還了 23 億美元的 COVID 債務。

On the cash side, we said we plan to hold more given what we experienced through COVID. $3 billion to $4 billion will be the range we'd look at. We're now at $5.4 billion with a net debt to cap of 25% at the end of the second quarter. So we think we're in a good shape on those fronts.

在現金方面，我們表示，鑑於我們通過 COVID 經歷的情況，我們計劃持有更多。 30 億至 40 億美元將是我們關注的範圍。我們現在的淨債務為 54 億美元，到第二季度末的上限為 25%。所以我們認為我們在這些方面處於良好狀態。

Now our approach to buybacks will continue to be guided by our target payout ratio of 40% to 50% adjusted net cash from operations. We've remained at the lower end of the range so far this year given our competing priorities of paying back the debt and building cash. We're at a 42% payout so far this year. So we think we're in good shape, and we'll plan to continue doing more of the same, paying down our debt and honoring our return commitment to the shareholders.

現在，我們的回購方法將繼續以我們的目標派息率 40% 至 50% 調整後的運營淨現金為指導。鑑於我們在償還債務和積累現金方面相互競爭的優先事項，今年到目前為止，我們一直處於該範圍的低端。今年到目前為止，我們的派息率為 42%。因此，我們認為我們狀況良好，我們將計劃繼續做更多相同的事情，償還我們的債務並履行我們對股東的回報承諾。

The next question is coming from Roger Read of Wells Fargo.

下一個問題來自富國銀行的 Roger Read。

Coming back to the demand thing, but maybe a little more of a forward look. Distillate was the big surprise kind of in the spring coming out of the winter in Europe. And as we look to this next winter, I mean, if you're in Europe, it doesn't look like gas gets any cheaper. So as we think about distillate or fuel oil demand there and the way we're running at this point in the summer, what do you see as the ways in which incremental diesel can make it into Europe and affect the overall Atlantic Basin margins?

回到需求方面，但也許更多的是前瞻性。餾分油是歐洲冬天從春天出來的最大驚喜。當我們展望下一個冬天時，我的意思是，如果你在歐洲，看起來天然氣並沒有變得更便宜。因此，當我們考慮那裡的餾分油或燃料油需求以及我們在夏季此時的運行方式時，您認為增量柴油進入歐洲並影響整個大西洋盆地利潤的方式是什麼？

Yes, it's going to be a real challenge for us, Roger, to be able to supply a lot more diesel into Europe. If you look with the U.S. inventories where they are, the industry basically running all out, we're getting back to where jet demand is recovering in the U.S., which is actually driving ULSD yields down a little bit. So it's very difficult for me seeing that there's going to be a lot of flow from the U.S. into Europe.

是的，羅傑，要能夠向歐洲供應更多的柴油，這對我們來說將是一個真正的挑戰。如果您查看美國的庫存情況，該行業基本上已經耗盡，我們正在回到美國噴氣式飛機需求正在復甦的地方，這實際上推動了 ULSD 收益率略有下降。因此，我很難看到會有大量資金從美國流入歐洲。

Got you. And then as a follow-up on the 40% to 50% payout ratio. Pre-COVID, there were a number of times you ran well above that level. Now that we're in a situation where it looks like better than mid-cycle cracks are going to persist for a while, you want to hold more cash. Do you see this as a situation where you may undershoot or kind of consistently stay at the low end as we saw in the second quarter? Or is this something that evolves as -- let's just say, as $4 billion of debt repayment is achieved, does it go back into that or to the high end of the range thereafter?

得到你。然後作為 40% 到 50% 支付率的後續行動。在 COVID 之前，有很多次你跑得遠遠高於那個水平。既然我們處於這樣一種情況，看起來比中期裂縫要持續一段時間要好，你想持有更多現金。您是否認為這是一種情況，您可能會低於我們在第二季度看到的水平或一直處於低端？或者這是否會演變為 - 讓我們說，隨著 40 億美元的債務償還實現，它會回到那個範圍還是之後的範圍的高端？

Sure. Yes. You're right. For the foreseeable future, at least in the next several months, we still got that competing priority of paying down our debt. So I think we'll stay at the lower end while we're paying down debt. And then if the cycle continues to be super strong, you're right, we'll have a lot of excess cash to consider.

當然。是的。你是對的。在可預見的未來，至少在接下來的幾個月裡，我們仍然擁有償還債務的競爭優先權。所以我認為我們在償還債務時會保持在低端。然後，如果週期繼續超強，你是對的，我們將有很多多餘的現金需要考慮。

Yes. And, Roger, I agree completely with what Jason said. I mean we want to go ahead and get things cleaned up and get this balance sheet absolutely bulletproofed and carrying a bit more cash is something that makes a lot of sense to do. You'd like to have your maintenance and turnaround CapEx covered with cash on hand, the dividend covered with cash on hand. And then we'll see where we go. But anyway, I think for now, we're on the right course. And as Gary has stated, it looks like the margin environment is going to be higher for some time. It certainly is today, not what we experienced in the second quarter, but certainly, well above what we would consider to be a traditional mid-cycle. And if we continue to build cash, we'll continue to honor the payout, and it will probably move from the lower end to the higher end.

是的。而且，羅傑，我完全同意傑森所說的話。我的意思是我們想要繼續清理事情，讓這個資產負債表絕對防彈，攜帶更多現金是很有意義的事情。您希望用手頭現金支付您的維護和周轉資本支出，用手頭現金支付股息。然後我們會看到我們要去哪裡。但無論如何，我認為現在，我們正走在正確的道路上。正如加里所說，看起來利潤率環境會在一段時間內更高。今天肯定是這樣，不是我們在第二季度所經歷的，但肯定遠高於我們認為的傳統中期週期。如果我們繼續積累現金，我們將繼續兌現支付，它可能會從低端轉移到高端。

Okay. And just maybe just 1 little tweak on that. As you think about dividend versus share repos, does that ultimately change once the balance sheet is back the way you want it? It's been a while since you've increased the dividend, I guess, is really what I'm getting at. Should we think of that as becoming another way to return cash?

好的。可能只是 1 小調整。當您考慮股息與股票回購時，一旦資產負債表恢復到您想要的方式，這種情況最終會改變嗎？我想，自從你增加股息以來已經有一段時間了，這就是我的意思。我們是否應該將其視為另一種返還現金的方式？

Yes. I mean you should. That is something we'll be looking at. As we've discussed, our short-term focus is on getting the debt back down, and we will look at that. We said this before, we'll be measured in our approach to ensure something that's sustainable through the cycle, especially given what we experienced coming through COVID, but that is something we'll be looking at.

是的。我的意思是你應該。這是我們將要研究的東西。正如我們所討論的，我們的短期重點是降低債務，我們將對此進行研究。我們之前說過，我們將在我們的方法中進行衡量，以確保在整個週期中可持續的東西，特別是考慮到我們在 COVID 中所經歷的事情，但這是我們將要關注的事情。

The next question is coming from Paul Sankey of Sankey Research.

下一個問題來自 Sankey Research 的 Paul Sankey。

It was obviously a momentous quarter for oil markets. Can you just talk a bit about what's happened in crude markets and what the outlook is in terms of, obviously, the Russian impacts and the various differentials we're looking at the Brent-WTI spread, everything else?

對於石油市場來說，這顯然是一個重要的季度。您能否談談原油市場發生的事情以及前景如何，顯然，俄羅斯的影響以及我們正在研究的布倫特-WTI價差的各種差異，以及其他一切？

Yes. This is Gary. So I think overall, we started to see there was not certainty what would happen with the Russian sanctions. But as time has gone on, it appears that the Russian oil has continued to flow, and it's a change in trade flows, not less Russian oil on the market. The combination of that, SPR barrels coming on to the market, some production growth in certain parts of the world caused flat price to come down. And then it's also caused quality differentials to be pressured somewhat.

是的。這是加里。所以我認為總的來說，我們開始看到俄羅斯的製裁會發生什麼並不確定。但隨著時間的推移，俄羅斯石油似乎繼續流動，這是貿易流動的變化，而不是市場上的俄羅斯石油。綜合這些因素，SPR 桶進入市場，世界某些地區的一些產量增長導致價格下跌。然後它也導致質量差異受到一定壓力。

In addition to the things I mentioned, the early releases the SPR, largely medium sour barrels, which pressured the differentials. And then we've seen high sulfur fuel oil move weaker, which high sulfur fuel oil prices tend to impact quality differentials as well. Some of that is Russian resid is starting to make its way back to the market. You're seeing more high sulfur fuel oil come from Mexico. And so those things are starting to pressure the quality differentials that we're seeing in the market today.

除了我提到的事情之外，早期發布的 SPR，主要是中等酸桶，這對差速器施加了壓力。然後我們看到高硫燃料油走弱，高硫燃料油價格也往往會影響質量差異。其中一些是俄羅斯渣油開始重返市場。你會看到更多的高硫燃料油來自墨西哥。因此，這些事情開始對我們今天在市場上看到的質量差異造成壓力。

That's very helpful. Could you just continue that forward thought? How do you think things will change over the next 6 months or so? I mean, one obvious thing is that the SPR, I don't know, but I mean, presumably at some point, it's got to stop being released, right?

這很有幫助。你能繼續這個前瞻性的想法嗎？您認為未來 6 個月左右情況會發生怎樣的變化？我的意思是，一個顯而易見的事情是 SPR，我不知道，但我的意思是，大概在某個時候，它必須停止發布，對嗎？

Yes. Well, that's exactly right. I think you'll see lower volumes coming from the SPR. Most people have kind of lowered their global oil demand forecast. So I think the oil markets are fairly well balanced. We wouldn't expect a lot of movement in the quality differentials from where they are today.

是的。嗯，這是完全正確的。我認為您會看到來自 SPR 的交易量減少。大多數人都降低了他們對全球石油需求的預測。所以我認為石油市場相當平衡。我們不會期望質量差異與今天有很大的變化。

The next question is coming from John Royall of JPMorgan.

下一個問題來自摩根大通的 John Royall。

So on RD, can you talk about the captures stepping down in 2Q? And any moving pieces there beyond the backwardation talked about in the last quarter. And then what do you expect the long-term capture to look like in that business once we get to a more normal looking market structure for diesel and once you have DGD 3 up and running?

那麼在 RD 上，你能談談第二季度的捕獲量下降嗎？上個季度談到的逆價差之外的任何移動因素。然後，一旦我們的柴油市場結構看起來更正常，並且一旦 DGD 3 啟動並運行，您預計該業務的長期捕獲會是什麼樣子？

Yes, this is Eric. I think you've hit the nail on the head. Really, the big difference between Q1 and Q2 was the severity of the backwardation quarter-to-quarter. But if you look at the rest of the capture rate, which was weaker -- you had soybean prices were higher. And obviously, LCFS prices were down sort of averaging $130 in the first quarter versus closer to $100 in the second quarter.

是的，這是埃里克。我想你已經一針見血了。確實，第一季度和第二季度之間的最大區別在於季度差價的嚴重程度。但是，如果您查看其他較弱的捕獲率-您會發現大豆價格更高。顯然，LCFS 的價格在第一季度平均下降了 130 美元，而第二季度則接近 100 美元。

So, clearly, margins tighter in the second quarter and capture rates lower, mostly due to the backwardation you mentioned. If you look forward, I think, again, you've said it that as ULSD markets normalize, you'll see a little bit of a return to normal in the back half of this year for RD.

因此，很明顯，第二季度的利潤率收緊，捕獲率降低，主要是由於你提到的現貨溢價。如果您向前看，我想，您再次說過，隨著 ULSD 市場正常化，您將在今年下半年看到 RD 的一點點恢復正常。

Great. And then just sticking with RD, I know we've had some good news on the BTC and the SAF side this morning. Could you give you a way of thoughts on the LCFS program in California and where you think pricing could go there? I know we're -- we have the scoping process now to think about, and we have the federal program in Canada starting next year. So just any thoughts on pricing there into the second half of next year would be helpful.

偉大的。然後堅持使用 RD，我知道我們今天早上在 BTC 和 SAF 方面有一些好消息。您能否就加利福尼亞的 LCFS 計劃以及您認為那裡的定價可能會有一些想法？我知道我們現在 - 我們現在要考慮範圍界定過程，並且我們從明年開始在加拿大實施聯邦計劃。因此，任何關於明年下半年定價的想法都會有所幫助。

Yes. The LCFS market has -- in California has really seemed to have stabilized in the sort of $90 to $100 range. We don't see a lot of volume moving. And as you mentioned, the scoping meetings they have, they are considering increasing the obligations into 2030, which should create a greater demand for the LCFS credits. Because as we see now with renewable diesel and other renewables consuming up to about 50% of the obligation and gasoline demand still relatively muted on the West Coast, it's just -- it's the credit obligation. There's just not a big driver there. So I think you mentioned Canada. We see that's an opening emerging market. The world is trying to figure out what these early credit prices are going to be valued at. Is that new -- federal regulation in Canada goes into effect between now and next June. And then, obviously, with Oregon and Washington opening up, they all seem to be hanging around the same sort of $90 to $100 credit price. So obviously, we want to see -- we'd like to see that go back up, but if I was going to have an outlook, it seems to have stabilized somewhere kind of in that range.

是的。加州的 LCFS 市場似乎已經穩定在 90 到 100 美元之間。我們沒有看到大量的交易量移動。正如你所提到的，在他們舉行的範圍界定會議上，他們正在考慮將義務增加到 2030 年，這應該會對 LCFS 積分產生更大的需求。因為正如我們現在看到的那樣，可再生柴油和其他可再生能源消耗了高達約 50% 的義務，而西海岸的汽油需求仍然相對較低，這只是——這是信用義務。那裡沒有大司機。所以我想你提到了加拿大。我們看到這是一個開放的新興市場。世界正試圖弄清楚這些早期信貸價格的價值。那是新的嗎？加拿大的聯邦法規從現在到明年六月生效。然後，顯然，隨著俄勒岡州和華盛頓州的開放，它們似乎都在同樣的 90 到 100 美元的信用價格上徘徊。所以很明顯，我們希望看到 - 我們希望看到它回升，但如果我有一個前景，它似乎已經穩定在那個範圍內的某個地方。

The next question is coming from Connor Lynagh of Morgan Stanley.

下一個問題來自摩根士丹利的康納·林納。

Yes. I wanted to return to the topic of export markets and sort of the global balance. As we get closer to Europe's proposed date to stop taking Russian refined products, what's your sort of high-level view of how the market will reposition? And the sort of implication I'm wondering about here is you highlight Latin America as a key area of your exports. Is that likely to change? Do you think Russian volumes will be competitive there? Just high level thoughts on that would be great.

是的。我想回到出口市場和全球平衡的話題。隨著我們越來越接近歐洲提出的停止使用俄羅斯精煉產品的日期，您對市場將如何重新定位的高層看法是什麼？我在這裡想知道的那種暗示是你強調拉丁美洲是你出口的一個關鍵地區。這有可能改變嗎？你認為俄羅斯的銷量在那裡會有競爭力嗎？只是高層次的想法會很棒。

Yes, it's difficult to know what's going to happen with the sanctions. I think we see some South American countries that seem to be interested in taking some Russian barrels. So that certainly could be a scenario to develop some of the Russian diesel makes its way to South America, and then we backfill into Europe. I could see that happening. But we don't really have a lot of clarity what's going to happen.

是的，很難知道製裁會發生什麼。我認為我們看到一些南美國家似乎對購買一些俄羅斯桶感興趣。因此，這當然可能是開發一些俄羅斯柴油進入南美，然後我們回填到歐洲的情況。我可以看到這種情況發生。但我們並不清楚會發生什麼。

I guess, I'm just trying to triangulate maybe this is more of a shorter-term comment, but you were suggesting earlier that there probably was not a high likelihood that U.S. diesel, in particular, would be flowing to Europe. Is that more of a near-term comment? And if the sanctions were to be enacted, would you revisit that view? Or just basically with the duration of that expectation?

我想，我只是想進行三角測量，也許這更像是一個短期評論，但您之前曾暗示美國柴油可能不太可能特別是流向歐洲。這更像是近期的評論嗎？如果要實施制裁，你會重新審視這種觀點嗎？或者只是基本上與這種期望的持續時間有關？

Yes. Certainly, in the short term, freight rates are high, and we see a better incentive going into Latin America. I don't know what's going to happen in terms of Russian sanctions and the rebalancing. So that will be just kind of a wait and see.

是的。當然，在短期內，運費很高，我們看到進入拉丁美洲的動力會更好。我不知道俄羅斯制裁和再平衡會發生什麼。所以這只是一種觀望。

All right. Fair enough. Maybe just to sneak one last one in here. Capture rates have actually held up pretty strong in the refining business. Anything that we should think about in terms of big swing factors into the third quarter here? Or do you think the 2Q result is pretty indicative of where you're going to be in the near term?

好的。很公平。也許只是為了偷偷溜進來最後一個。在煉油業務中，捕獲率實際上保持相當強勁。關於第三季度的重大波動因素，我們應該考慮什麼？或者你認為第二季度的結果很能說明你近期的發展方向？

Connor, it's Lane. So it's early, but I would say, nominally speaking, absent any big moves and flat price, it would be fairly similar.

康納，是萊恩。所以現在還早，但我會說，名義上來說，沒有任何大動作和平價，它會相當相似。

The next question is coming from Neil Mehta of Goldman Sachs.

下一個問題來自高盛的尼爾梅塔。

Congrats on a great quarter here. The first question was around the blenders tax credit. We've got some news out of Washington last night that there could be an extension there. So just would love your perspective on what that could mean for the DGD business? And how do you understand the ruminations in Washington?

恭喜這裡有一個很棒的季度。第一個問題是關於攪拌機的稅收抵免。昨晚我們從華盛頓得到了一些消息，說那裡可能會延期。那麼，您是否會喜歡您對這對 DGD 業務可能意味著什麼的看法？你如何理解華盛頓的沉思？

Well, this is Eric. I'll start. The BTC obviously is part of the business model that we capture with renewable diesel, obviously. And we'd always said that we're fairly certain there would be some sort of a blenders tax credit because there's always been one for about the last decade. We have seen that there was some view that without a blender's tax credit, the D4 RIN would pick it up and maybe not perfectly dollar for dollar, but certainly in sort of the 70% to 80% range. And so we'll see how this plays out. But certainly, it's supportive of the renewable business. I don't know if, Rich, you wanted to comment at all on the political side.

嗯，這是埃里克。我會開始的。顯然，BTC 是我們用可再生柴油捕獲的商業模式的一部分。而且我們總是說，我們相當肯定會有某種形式的攪拌機稅收抵免，因為在過去十年中一直存在。我們已經看到有人認為，如果沒有攪拌機的稅收抵免，D4 RIN 會接受它，而且可能不是完美的美元兌美元，但肯定在 70% 到 80% 的範圍內。因此，我們將看到它是如何發揮作用的。但可以肯定的是，它支持可再生能源業務。我不知道，Rich，你是否想在政治方面發表評論。

Yes. This is Rich Walsh. I mean we just saw the bill came out late last night, 700 pages. We're looking through it. I mean there are some things in there that are helpful to our business. The tax credit, obviously, we're just talking about. There's also a SAF tax credit in there as well that we'll be looking at. And there's other things, too, we're trying to sort through. So I think it was a surprise to everybody that came out that quick. I don't think we really ever thought that the blenders tax credit was going to be -- the Bio tax credit would be a problem we thought it would end up on one of these bills before the end of the year. But it's always good to see it looking stronger and on the forefront. So...

是的。這是里奇沃爾什。我的意思是我們昨晚剛看到賬單出來了，700頁。我們正在查看它。我的意思是那裡有一些對我們的業務有幫助的東西。稅收抵免，顯然，我們只是在談論。那裡還有一個新加坡武裝部隊稅收抵免，我們將對其進行研究。還有其他事情，我們也在努力解決。所以我認為這麼快出來的每個人都感到驚訝。我認為我們真的沒有想過攪拌機稅收抵免會成為 - 生物稅收抵免將是一個問題，我們認為它最終會在年底之前出現在這些法案中。但看到它看起來更強大並處於最前沿總是很好的。所以...

All right. Great guys. And the follow-up is just on yield switching. We're in an environment now where obviously heating oil and distillate are trading well above gasoline. Do you see the industry and the company being able to switch to capture that? And does that take some pressure take some pressure off of the distillate side of the equation and help to rebalance inventory?

好的。好傢伙。後續只是產量轉換。我們現在所處的環境顯然取暖油和餾分油的交易價格遠高於汽油。您是否看到行業和公司能夠轉換以捕捉到這一點？這是否需要一些壓力才能減輕等式中餾分油的壓力並有助於重新平衡庫存？

Neil, this is Lane. So Gary kind of addressed this a little bit. Our assets have been in max distillate mode for a few weeks. And so one of the dynamics that's occurring right now is as the jet recovers, it actually makes distillate yields fall, or diesel yields fall. So I guess the short answer is I see everybody else is doing kind of the similar signals. There's not a lot of additional diesel outside of incremental runs that somebody might have and the industry is running at a pretty high utilization rate. So I don't see a big opportunity to make up sort of a diesel shortfall right now.

尼爾，這是萊恩。所以加里有點解決這個問題。我們的資產已經處於最大餾分模式已經有幾週了。因此，現在發生的動態之一是隨著噴氣式飛機的恢復，它實際上使餾分油產量下降，或者柴油產量下降。所以我想簡短的回答是我看到其他人都在做類似的信號。除了某些人可能擁有的增量運行之外，沒有太多額外的柴油，而且該行業的利用率很高。所以我現在看不到彌補柴油短缺的大好機會。

The next question is coming from Ryan Todd of Piper Sandler.

下一個問題來自 Piper Sandler 的 Ryan Todd。

Maybe a follow-up on renewable diesel and waste fat spreads and the feedstock market. Obviously, we've seen those spreads move significantly over or in the first half of the year, and in particular, soybean oil moved pretty significantly in the recent time here. Can you talk a little bit about what you're seeing in animal fat and kind of low CI feed markets in the second half of the year? Would you expect those to widen out a little bit more? And then as you look towards the start-up of DGD 3, would you expect kind of a replay of what we saw late last year, whereas you start buying that there's some kind of normalization and equilibrium period there where we see some volatility?

也許是對可再生柴油和廢脂肪價差以及原料市場的跟進。顯然，我們已經看到這些價差在今年上半年或上半年發生了顯著變化，尤其是豆油在最近的時間裡發生了相當大的變化。你能談談你在下半年看到的動物脂肪和低CI飼料市場的情況嗎？你會期望那些會擴大一點嗎？然後，當您展望 DGD 3 的啟動時，您是否會期待我們去年年底看到的那種重播，而您開始認為那裡存在某種正常化和平衡期，我們會看到一些波動？

Yes. I think as you said, I mean, the soybean oil market was pricey in the second quarter, but has since come down. And if you look at it, feedstock availability is there. I mean we're not having any problem sourcing any of the different waste oils or animal fat feedstocks. Relative value goes along with the LCFS, that a lot of that is not as advantaged as it has been, if you look at sort of this time last year. But we certainly have availability to get the feedstocks we need for DGD 3. And there's no doubt with DGD 3 being our third and largest unit starting up in the fourth quarter, it will change some of the trade flows certainly in the U.S. and as well as where we can pull from all the global sources of feedstocks.

是的。我想正如你所說，我的意思是，第二季度豆油市場價格昂貴，但此後有所回落。如果你看一下，原料的可用性就在那裡。我的意思是我們在採購任何不同的廢油或動物脂肪原料時都沒有任何問題。相對價值與 LCFS 相伴而生，如果你看一下去年的這個時候，其中很多都不像以前那麼有利。但我們當然可以得到 DGD 3 所需的原料。毫無疑問，DGD 3 是我們在第四季度啟動的第三個也是最大的單位，它肯定會改變美國的一些貿易流動，以及作為我們可以從全球所有原料來源中提取的地方。

So I think you're right. We will see an impact to feedstocks in general as we change a lot of the trade flows. And then -- but I think it will -- we'll see an equilibration sometime next year as it sort of settles out how those trade flows change. And so it will be interesting and that will be one thing we're looking at as you start up and see, like I mentioned earlier, with the Canadian regulation opening up and some other markets opening up, we'll be looking at how that all plays out versus feedstocks.

所以我認為你是對的。隨著我們改變很多貿易流，我們將看到對原料的總體影響。然後——但我認為它會——我們將在明年某個時候看到一種平衡，因為它可以確定這些貿易流動如何變化。所以這會很有趣，這將是我們在啟動時正在研究的一件事，就像我之前提到的，隨著加拿大法規的開放和其他一些市場的開放，我們將研究如何做到這一點一切都與原料相比。

And then maybe just a quick question on project spend and the environment. I mean from your update, it clearly, it doesn't seem to be having an impact on timing. Any impact at the inflationary environment or supply chain I think could have on capital budgets at things like the Port Arthur Coker project or DGD 3 as we look over the next 12 months?

然後也許只是一個關於項目支出和環境的簡單問題。我的意思是從你的更新來看，很明顯，它似乎對時間沒有影響。在我們展望未來 12 個月時，我認為對通脹環境或供應鏈的任何影響可能對諸如 Port Arthur Coker 項目或 DGD 3 之類的資本預算產生影響？

This is Lane. All those projects were steel prices and labor and everything else was locked in prior to sort of this inflationary time that we're experiencing right now.

這是萊恩。所有這些項目都是鋼鐵價格和勞動力，其他一切都在我們現在正在經歷的這種通貨膨脹時期之前被鎖定。

The next question is coming from Sam Margolin of Wolfe Research.

下一個問題來自 Wolfe Research 的 Sam Margolin。

I want to ask about a comment I heard earlier on the call that made me think that you mentioned high-sulfur fuel oil spreads are blowing out. We've got light sweet premiums and WCS, discounts are very deep. You've also got these very wide differentials between distillate and other products, specifically gasoline. It sounds like the scenario that people imagine for IMO 2020. And I was just wondering how influential you think that is in the market today, given everything else that's going on?

我想問一下我早些時候在電話會議上聽到的評論，這讓我覺得你提到的高硫燃料油價差正在膨脹。我們有輕甜的溢價和 WCS，折扣非常深。餾分油與其他產品（尤其是汽油）之間的差異也非常大。這聽起來像是人們想像的 IMO 2020 情景。我只是想知道你認為這在當今市場上有多大的影響力，考慮到正在發生的一切？

I think you are seeing a lot of pull-through of IMO 2020 in the market today that it's contributing to the stronger distillate cracks that you're seeing because more diesel is being pulled into the marine sector. And then it's also contributing to the high-sulfur fuel oil discounts as well.

我認為你在今天的市場上看到了很多 IMO 2020 的推動，這有助於你所看到的更強烈的餾分油裂縫，因為更多的柴油被拉入海洋部門。然後它也有助於高硫燃料油的折扣。

And this is Lane. I'll add to that. It's also we're calling some of these really high valuations on sort of, I'm going to say, sort of Atlantic Basin sweet crude because, again, it's a little bit -- it's not unlike what's happening on natural gas, the marginal refiner trying not to make high sulfur fuel oil out bidding up the light sweet market so they can try to stay out of that market, right? So it's propping up the value of that crude versus the medium sours.

這是萊恩。我會補充一點。我們也將其中一些非常高的估值稱為某種，我要說的是，某種大西洋盆地低硫原油，因為，再一次，它有點——這與天然氣的情況沒有什麼不同，邊際煉油廠試圖不讓高硫燃料油出局，從而抬高輕質低硫燃料市場，這樣他們就可以盡量遠離那個市場，對吧？因此，它支撐了原油相對於中酸原油的價值。

Okay. And then this is a follow-up sort of drilling down on the renewable diesel conversation and maybe on the policy side. But some feedback that we've gotten recently from other industry contacts is that renewable fuels, including ethanol, have moved very much into the energy security category and almost that's taking prominence over the carbon and emissions side. And then that's spurring a lot of support or incremental support, I should say, from regulators in DC. I was wondering if you're seeing the same thing when you interact with your counterparts in the government?

好的。然後這是對可再生柴油對話的後續鑽探，也許是在政策方面。但我們最近從其他行業聯繫人那裡得到的一些反饋是，包括乙醇在內的可再生燃料已經在很大程度上進入了能源安全類別，並且幾乎在碳和排放方面佔據了突出地位。然後，我應該說，這激發了 DC 監管機構的大量支持或增量支持。我想知道當您與政府的同行互動時，您是否也看到了同樣的事情？

This is Rich. I'll take an opportunity. I would just qualify by saying that they are low carbon, too. So they're not moving just into security. They're also part of the low carbon solutions. So if you look at like our renewable diesel, it actually can outperform, on a carbon intensity basis, some of the EV alternatives that are out there. So I think, one, I think what you're starting to see now is a realization among regulators that actually these low-carbon liquid fuels are drop in. They're cheaper to implement. They're available for consumers, and they provide an opportunity to also solve some of the climate issues that are out there.

這是里奇。我會抓住機會的。我只想說它們也是低碳的。所以他們不只是進入安全領域。它們也是低碳解決方案的一部分。因此，如果您看一下我們的可再生柴油，在碳強度的基礎上，它實際上可以勝過一些現有的電動汽車替代品。所以我認為，一個，我認為你現在開始看到的是監管機構意識到這些低碳液體燃料實際上正在下降。它們實施起來更便宜。它們可供消費者使用，它們也提供了解決一些氣候問題的機會。

So I mean, I think what you're seeing is recognizing in the marketplace that these might be better alternatives.

所以我的意思是，我認為你所看到的是在市場上認識到這些可能是更好的選擇。

And of course, they're domestic and the real strength of the U.S. economy. So it's not surprising that you're starting to see more affection for the low carbon fuels.

當然，它們是國內的，是美國經濟的真正實力。因此，您開始看到對低碳燃料的更多喜愛也就不足為奇了。

The next question is coming from Jason Gabelman of Cowen.

下一個問題來自 Cowen 的 Jason Gabelman。

I wanted to ask, firstly, on the policy side and the government seemed interested in intervening in the markets when petroleum prices got too high only a month ago, and there's obviously concerns into the back half of the year that prices can rise again, particularly on the flat crude price. So I was wondering if you could maybe discuss a bit how your conversations with the government went particularly around a petroleum product export ban or quota? And if you think that's a realistic policy option that the government could implement in the future, and how that would impact you? And then I have a follow-up.

我想問一下，首先，政策方面，一個月前油價過高的時候，政府似乎有興趣干預市場，而且很明顯，到了下半年，價格可能會再次上漲，特別是原油價格持平。所以我想知道您是否可以討論一下您與政府的對話是如何特別圍繞石油產品出口禁令或配額進行的？如果您認為這是政府可以在未來實施的現實政策選擇，那將如何影響您？然後我有一個跟進。

Okay. So Lane and I had the opportunity to meet with the Secretary of Energy and members of her team in response to President Biden's request. And I would consider the meeting to be constructive. She was well briefed on what the issues were and the implications of some of the policy changes that you just mentioned. We talked about various options that could be implemented in the short term that would help take some of the pressure off of fuel prices. They have those in hand. And in fact, the staff, her staff has continued to follow up with members of our team and other attendees at that meeting to see what might make sense to try to implement. So it was a good meeting. Lane, anything you'd add to that?

好的。因此，我和萊恩有機會應拜登總統的要求與能源部長及其團隊成員會面。我認為這次會議是建設性的。她充分了解了問題是什麼以及你剛才提到的一些政策變化的影響。我們討論了可以在短期內實施的各種選項，這些選項將有助於減輕燃油價格的一些壓力。他們手頭有這些。事實上，工作人員，她的工作人員一直在跟進我們團隊的成員和該會議的其他與會者，看看嘗試實施什麼可能有意義。所以這是一次很好的會議。萊恩，你有什麼要補充的嗎？

The only thing I would add is at least I don't remember any mention of trying to limit exports.

我唯一要補充的是，至少我不記得有任何提及試圖限制出口。

No.

不。

That was not ever really talked about whatsoever.

從來沒有真正談論過這一點。

Yes. And yes, it goes to my point that they understand the implications of some of these decisions. Banning exports doesn't have the effect that they would've wanted to have as far as we can tell. It would probably just put some pressure on the industry, and it would certainly drive the global prices higher without the U.S. supply to backfill some of the shortfalls that are out there. So they seem to have a keen grasp of that, and that was encouraging to us. But no, I consider it was a constructive meeting, and they're interested in solutions. And it's always interesting to see what happens after these conversations take place and would there be any actual follow-up with it, but they're still talking. So more to come, Jason.

是的。是的，我的觀點是，他們了解其中一些決定的含義。據我們所知，禁止出口並沒有達到他們想要的效果。這可能只會給該行業帶來一些壓力，而且如果沒有美國的供應來彌補現有的一些短缺，它肯定會推高全球價格。所以他們似乎對此有敏銳的把握，這對我們來說是鼓舞人心的。但不，我認為這是一次建設性的會議，他們對解決方案感興趣。看看這些對話發生後會發生什麼以及是否會有任何實際的後續行動總是很有趣，但他們仍在談論。還有更多，傑森。

All right. That's -- were there any potential solutions that you and the representatives you've met with saw eye to eye on?

好的。那是 - 您和您遇到的代表是否有任何潛在的解決方案？

Yes. I think one of the things was RVP change.

是的。我認為其中一件事是 RVP 的變化。

RVP and relaxing sulfur specs that was essentially, I think, major -- I won't call them policy, but essentially initiatives that you could have that would help maybe I think some of the U.S. refiners have to export because of sulfur specs and were fairly clear in there. And then the other idea was again like what Joe just mentioned relaxing the RVP in some of these. And what that would require some of the nonattainment metropolitan area would go from reformulated to a conventional blend that's a little bigger move, but those are the things that we talked about.

RVP 和放寬硫規範，我認為這基本上是主要的——我不會稱它們為政策，但本質上你可以採取的舉措可能會有所幫助，也許我認為一些美國煉油廠因為硫規範而不得不出口，並且裡面比較清楚。然後另一個想法再次像喬剛剛提到的在其中一些中放鬆 RVP。這將需要一些未達到的大都市區從重新制定到傳統的混合，這是一個更大的舉措，但這些就是我們談到的事情。

Got it. That's really helpful. And then my follow-up just on DGD, we're getting to this cash flow inflection point in the business when starts up. And I was wondering if you could help us think about guidepost for what the cash distribution policy will be from the joint venture back to the partners or at least a time when we could expect an update on that?

知道了。這真的很有幫助。然後我對 DGD 進行了跟進，當我們開始時，我們正處於業務中的這個現金流拐點。我想知道你是否可以幫助我們考慮一下從合資企業返還給合作夥伴的現金分配政策的指導方針，或者至少在我們可以期待更新的時候？

Okay. This is Jason. I'll start off and then maybe Eric can chime in. You all know how DGD was the business was built. We used cash flows from the business. It's funded all the growth or largely funded the growth until now. We will have DGD 3 coming online in the fourth quarter. So there should be some excess cash flows to look out at the time and the partners will be just what to do with it.

好的。這是傑森。我先開始，然後也許 Eric 可以插話。你們都知道 DGD 是如何建立業務的。我們使用了來自業務的現金流。到目前為止，它為所有增長提供了資金，或者在很大程度上為增長提供了資金。我們將在第四季度上線 DGD 3。因此，當時應該有一些多餘的現金流需要注意，合作夥伴將只是如何處理它。

Yes. So obviously, we do expect there to be a positive cash flow next year with DGD 3 starting up and capital finishing on that project. And so obviously, we'll have to work with our partner on what we want to do with that cash. And so like we've said, we're going to take a pause after DGD 3 starts up and kind of take a look on the market of a lot of things we've talked about today between feedstocks and new product outlets. And then with the recent policy discussions that came out last night, what do we want to do with the cash. But obviously, there should be a cash flow to discuss in 2023 associated with DGD.

是的。所以很明顯，我們確實預計明年會有一個正的現金流，DGD 3 的啟動和該項目的資本完成。很明顯，我們將不得不與我們的合作夥伴一起討論我們想用這筆錢做什麼。所以就像我們說過的，我們將在 DGD 3 啟動後暫停一下，看看市場上我們今天在原料和新產品出口之間討論過的很多事情。然後隨著昨晚出現的最近的政策討論，我們想用現金做什麼。但顯然，在 2023 年應該討論與 DGD 相關的現金流。

The next question is coming from Matthew Blair of Tudor, Pickering Holt.

下一個問題來自都鐸王朝的馬修·布萊爾，皮克林·霍爾特。

If this potential BTC for SAF goes through, would you think about adding SAF capability at DGD 3? And if so, what kind of yields should we be thinking about?

如果這個用於 SAF 的潛在 BTC 通過，你會考慮在 DGD 3 中添加 SAF 功能嗎？如果是這樣，我們應該考慮什麼樣的收益率？

Yes. So there -- obviously, there's a lot of things we've got to still get the details of before -- but we certainly have a project in the wings that is waiting to see how this SAF credit is going to play out. And so there is a project that we've looked at for -- that we continue to do engineering on that would bolt-on SAF capability to DGD 3 with roughly kind of a 50-50 yield of SAF and renewable diesel. So it would be a significant increase in SAF capability for the U.S., obviously the largest producer of SAF.

是的。所以那裡 - 顯然，還有很多事情我們必須得到以前的細節 - 但我們肯定有一個項目正在等待看到這個 SAF 信用將如何發揮作用。因此，我們一直在尋找一個項目——我們繼續進行工程設計，將 SAF 能力附加到 DGD 3，SAF 和可再生柴油的產量大約為 50-50。因此，對於顯然是最大的 SAF 生產國的美國來說，這將顯著提高 SAF 的能力。

So it does look like it could be a possibility. But like I said, a lot of details to work through from a policy standpoint and then as well that has to be discussed with our partner.

所以看起來確實有可能。但就像我說的那樣，從政策的角度來看，有很多細節需要解決，然後也必須與我們的合作夥伴討論。

Sounds good. And then could you walk us through the Q2 hedging impacts at DGD? I think in Q1, it was a headwind of $119 million. What did that look like for Q2? And is this like an inventory hedge or a margin hedge. Any details there?

聽起來不錯。然後你能帶我們了解一下 DGD 第二季度的對沖影響嗎？我認為在第一季度，這是 1.19 億美元的逆風。 Q2 的情況如何？這就像庫存對沖還是利潤對沖？那裡有詳細信息嗎？

Yes. That's -- those details will be in the Q. And what I would say is really it's all just a product of backwardation being more severe in the second quarter than the first quarter. So it was a larger impact. And that's why, as we said earlier, margin capture was much lower, mostly just because of the market effects on ULSD. But I think we see that probably looking a little more favorable in the back half of the year, but that's all going to really be tied to how the ULSD market plays out. But currently looks better. Let's see how the rest of the year plays out.

是的。那是 - 這些細節將在 Q 中。我要說的是，這實際上只是第二季度比第一季度更嚴重的現貨溢價的產物。所以影響更大。這就是為什麼，正如我們之前所說，利潤率捕獲要低得多，主要是因為市場對 ULSD 的影響。但我認為我們認為這在今年下半年可能看起來更有利，但這一切都將真正與 ULSD 市場的表現有關。但目前看起來更好。讓我們看看今年剩下的時間會如何發展。

That brings us to the end of the question-and-answer session. I would like to turn the floor back over to Mr. Bhullar for closing comments.

這使我們結束了問答環節。我想請 Bhullar 先生髮言結束髮言。

Great. Thank you. We appreciate everyone joining us today. Obviously, feel free to contact the IR team if you have any additional questions. Thank you, everyone, and have a great day.

偉大的。謝謝你。我們感謝今天加入我們的每一個人。顯然，如果您有任何其他問題，請隨時聯繫 IR 團隊。謝謝大家，祝您有美好的一天。

Ladies and gentlemen, thank you for your participation. This concludes today's event. You may disconnect your lines or log off the webcast at this time, and enjoy the rest of your day.

女士們，先生們，感謝你們的參與。今天的活動到此結束。此時您可以斷開線路或退出網絡廣播，然後享受剩下的一天。