00:00Let's start with the results that we saw this morning, though, because it seems like you had particular strength when it comes to refining, when it comes to marketing.
00:07Talk us through what drove those gains and where you see that momentum going in 2026.
00:14Well, good afternoon, Katie. I'd love to talk about that.
00:16When you look at the strong results we had in the fourth quarter, it really stacked on top of the good results we had second and third quarter last year.
00:23And the precursors for that outstanding performance really were set in play over four years ago.
00:29When we started down this path, we committed to pushing our refining assets into world class status.
00:37We committed to building out a great midstream position, well head to market with our NGL system.
00:43And we committed to reducing costs. We streamlined our business.
00:47We've sold over five billion dollars worth of assets, and it is all starting to come together in our results.
00:53And you saw it in our fourth quarter performance.
00:57Absolutely. Well, you were looking for something to quibble with.
01:00I mean, we had a few analysts take a look at what's going on in chemicals.
01:04There was some weakness there. Chemicals overall, they've been in a bit of a drawn out down cycle, if you want to call it that.
01:12So what's your outlook when it comes to chemicals? Could we be nearing an inflection point?
01:17Well, chemicals is at the bottom, I think, of what's been a very tough cycle.
01:22Fortunately, CP Chem, our joint venture with Chevron, has performed well at the bottom of the cycle.
01:28When others are losing money, shutting down assets, they've been able to run their assets at high rates and have positive earnings.
01:35Our share of their earnings in 2025 was over $800 million of EBITDA.
01:40So they're doing what they're designed to do, and that's compete in any environment.
01:44We are bullish long term on the fundamentals of that business, and it will eventually turn.
01:49We're seeing rationalization today across the globe.
01:53The U.S. capacity is running at about 90 percent.
01:56But if you look at Europe and Southeast Asia, they're running at about 65 percent because the assets aren't competitive.
02:01And many of those assets are being rationalized as we speak.
02:05Mark, I am curious, though, too, on the midstream business here.
02:08I mean, what is kind of your general expectation with regards to growth rates in that business?
02:13And I'm primarily talking like organic growth rates rather than through acquisition.
02:18Sure, Romain.
02:19We've got a plan to continue to grow the earnings in that business mid-single digit percentage-wise.
02:26We've got great opportunities organically to grow, add gathering and processing assets.
02:31We've got a pipeline, our Coastal Bend pipeline that we recently expanded.
02:36There's another 125,000 barrels a day of capacity that we can expand into as well.
02:42And so we've just got a good pace of growth over the next several years.
02:45And we see us, by the end of 2027, hitting $4.5 billion of EBITDA in that segment.
02:52Mark, I do have to ask you about the situation in Venezuela and the potential impact of more oil coming on to the market.
03:01I know that's still a long ways away, a lot of political issues that have to be sorted out.
03:04But how is that now factored into both the outlook that you're giving, but more importantly, into your own internal planning for your business?
03:13Sure, Romain.
03:14I mean, as a North American refiner that has assets that were designed to run Venezuelan crude, we're optimistic that that will all come together.
03:22We're optimistic for the people of Venezuela that it will generate good economics for them.
03:28There is crude flowing out of Venezuela now to U.S. refiners.
03:32We've got the ability to process about 250,000 barrels a day.
03:37We were consuming Venezuelan crude before President Maduro was taken away, and we continue to process Venezuelan crude today.
03:47So I want to talk about that figure, 250,000 barrels a day.
03:52That's something you reiterated on your earnings call this morning as well.
03:56Are you actually running that level, or are you just saying that you have the ability to?
04:00And if it's the latter, how do you see getting up to maybe that figure?
04:05We have the ability to do that.
04:09That would be a significant portion, a significant percentage of the crude coming out of Venezuela today.
04:14But we have the ability to ramp up as the crude is available and as the economics dictate.
04:20We'll only run Venezuelan crude if the economics indicate that that's what we should run.
04:24But we do have that capability.
04:25And when you look at our total crude capacity, I believe we have the highest percentage capacity that can run Venezuelan crude out of our whole portfolio.
04:36And obviously, the situation with Venezuela is a delicate political situation.
04:42It was interesting.
04:43President Trump hosted an energy executive roundtable in the last couple of weeks.
04:47We showed it live here on the close.
04:49I noticed that your competitors, Marathon, Valero, were there, but I did not see you there, Mark.
04:54So with that in mind, I'm curious, what is your relationship like with the administration?
04:59How are those conversations going?
05:02We have great conversations with the administration.
05:04They're very supportive of energy, as you might imagine.
05:07They are supportive around permitting reform.
05:11They're supportive around refining capacity, being able to get things permitted and to bring the capacities that we need to provide energy for the North American markets.
05:22For instance, our Western Gateway pipeline system, that's been very well received at the federal level.
05:27Lots of support from the Department of Energy in those conversations.
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