Capital Allocation and Shareholder Returns
Q: How will you approach capital returns amid a softer commodity environment?
A: Kevin Mitchell explained that going forward, they plan to return 50% or more of operating cash flow to shareholders, even in a softer commodity environment. The dividend remains a priority at approximately $2 billion per year, and they expect to have flexibility to continue share repurchases while also investing in the business and managing the balance sheet. " "

Balance Sheet Outlook and Leverage
Q: What's your outlook for the balance sheet and leverage targets?
A: The company expects to finish the year with a stronger cash or net debt position, aided by proceeds from asset dispositions. They aim to move towards their leverage target of 25% to 30%, with an absolute net debt goal of below $18 billion. Asset sales will provide added flexibility for balance sheet priorities and shareholder returns. " " " "

Refining Margins and Mid-Cycle Outlook
Q: How do you view refining margins and mid-cycle earnings capacity?
A: Mark Lashier indicated that while they don't expect to be at mid-cycle margins in 2025, they are bullish on the medium-term outlook. They anticipate global demand growth exceeding capacity additions and rationalizations beyond 2025. The company plans to update their mid-cycle earnings capacity, considering changes in the refining landscape and inflation impacts on crack spreads. " " "

Renewable Diesel and Sustainable Aviation Fuel
Q: What is the outlook for renewable diesel margins and SAF production?
A: Brian Mandell expects renewable diesel margins to strengthen due to factors like depressed feedstock prices, fewer imports into the U.S., and stronger credit markets. The company began producing sustainable aviation fuel in September and plans to be a supplier to the market, expecting steady-state production by the first quarter of next year. " "

Refining Business Improvements
Q: How are you progressing on refining cost reductions and margin capture?
A: The company has removed over $600 million of costs from refining and is focusing on earnings per barrel. They have completed a series of small capital projects aimed at improving market capture, contributing to an expected 5% improvement by 2025, equivalent to about $400 million in earnings at mid-cycle pricing. " "

Asset Dispositions Above $3 Billion Target
Q: How should we think about asset sale proceeds going forward?
A: Mark Lashier stated that the $3 billion in asset dispositions was considered a floor, not a target. The company will continue to evaluate non-core assets and pursue dispositions that are favorable, expecting to exceed the initial target. " "

Chemicals Business Outlook
Q: What is your outlook for the Chemicals business?
A: Mark Lashier noted that CPChem's performance is strong due to their ability to operate at high rates with advantaged feedstock positions. They expect some seasonal softness but anticipate continued improvement in the macro environment for chemicals. " "

Central Corridor Performance
Q: What drove the strong performance in the Central Corridor?
A: The Central Corridor benefited from higher margins, including a 10% increase in regional cracks, favorable impacts from inventory hedges due to falling WTI prices, improved pricing in NGLs and heavy intermediates, and excellent operating performance with 100% crude utilization and 89% clean product yields. "

Cost Reductions vs. Inflation
Q: How are cost reductions balancing against inflationary pressures?
A: Kevin Mitchell acknowledged that while inflation has been a headwind, the worst appears to be behind them. The cost reductions they are achieving are within their control, such as energy reduction initiatives, which help offset inflationary impacts. " "

Demand Outlook for Fuels
Q: What are you seeing in terms of demand for gasoline, diesel, and jet fuel?
A: Brian Mandell indicated that global gasoline demand is up about 1%, with strong growth in Europe and the U.S. Distillate demand is down slightly, but there are optimistic signs from freight companies. Jet fuel demand is up about 8.5%, driven largely by Asia. "

Hedges in Different Regions
Q: Do you utilize hedges across all regions or only in the Central Corridor?
A: Brian Mandell confirmed that they have hedges in all regions, primarily using WTI crude, which can positively impact earnings in a falling market. "

Impact of TW Products Pipeline on PADD 4
Q: Are you seeing the impact of the TW Products pipeline on PADD 4 margins?
A: Brian Mandell stated that they are not yet seeing the impact of the pipeline on PADD 4 margins. "