PBF Energy Inc. Q4 FY2024 earnings call

• Addressed the Martinez refinery fire on February 1st, thanking first responders and discussing the recovery process, noting the refinery is currently down completely. - Fourth quarter results were impacted by weak margins and poor crude differentials, but refineries operated well overall with a major turnaround at Chalmette. - Believes in tight global refining supply and product demand balance, expecting 2025 net capacity additions to match product demand growth. - Developed the Refining Business Improvement Program (RBI) targeting over $200 million in run rate cost savings by end of 2025, focusing on energy usage, turnarounds, procurement, capital planning, maintenance, and organizational design. - Highlights strong financial position with flexibility to weather challenging markets and plans to focus on delevering and preserving the balance sheet.

No specific detailed breakdown of product segment financial performance and revenue contribution was provided in the transcript.

• 2025 net capacity additions expected in the 700,000 to 800,000 range, with product demand growth in the 750,000 barrels per day range. - Full year 2024 CapEx was approximately $1 billion. - Returned approximately $60 million to shareholders in the fourth quarter via share repurchases and dividend; since December 2022, completed ~$1 billion in share repurchases. - Board approved a regular quarterly dividend of $27.05 per share.

• Impact of the Martinez refinery fire on operations and the surrounding community, with ongoing investigations and recovery process. - Market turbulence including weak margins, poor crude differentials, and dynamic tariff environment. - Potential impact of geopolitical events like Ukraine-Russia peace on crude quality differentials.

Q: Roger Read asked about the timeline for clarity on Martinez refinery damage and repair, and liquidity levers.

A: Matt Lucey and Karen Davis discussed ongoing recovery, strong financial position, and focus on delevering.

Q: Ryan Todd asked about Martinez insurance offset and renewable diesel update.

A: Matt Lucey and Karen Davis discussed insurance coverage and RD market dynamics.

Q: Manav Gupta asked about impact of Ukraine-Russia peace on refineries.

A: Thomas O’Connor discussed potential widening of light-heavy differentials.

Q: Neil Mehta asked about net debt framework and leverage target.

A: Matt Lucey and Karen Davis discussed balance sheet priorities and investment grade credit metrics.

Q: Jason Gabelman asked about Martinez unit impact and share count.

A: Matt Lucey and Karen Davis discussed refinery shutdown, contractual obligations, and share count dilution.

Q: Jason Gabelman followed up on RBI program and free cash flow.

A: Matthew Lucey and Thomas O’Connor discussed RBI program progress and free cash flow positivity.

Q: Paul Cheng asked about East Coast throughput and Toledo crude impact.

A: Matthew Lucey discussed throughput based on market conditions and crude yield impacts.