PBF Energy Inc. Q1 FY2025 earnings call

• Martinez Phase 1 restart completed, with limited units running in the 85,000 to 105,000 barrels per day range.
• Torrance refinery had a shutdown due to a mid-March weather event, with restart completed in mid-April.
• Chalmette refinery turnaround completed on time and on budget, and Delaware City hydrocracker turnaround performed as planned.
• RBI program generated over 500 cost-saving ideas through over 40 sessions, on track to exceed $200 million annualized sustainable cost savings by year-end 2025.
• Received a $250 million first installment of insurance proceeds, with expectations of additional interim payments.
• Sold Knoxville and Philadelphia terminal assets for $175 million, with the transaction closing in H2 2025.
• Equity investment in St. Bernard Renewables had a $17 million loss, with Q2 RD production expected to be 12,000 to 14,000 barrels per day.

The refining business had various operations. Martinez restarted Phase 1 with limited units running at 85,000-105,000 barrels per day. Torrance refinery experienced a shutdown due to a weather event and subsequent restart. Chalmette and Delaware City refineries completed turnarounds. The equity investment in St. Bernard Renewables incurred a $17 million loss. The company announced the sale of Knoxville and Philadelphia terminal assets for $175 million, with the transaction closing in the second half of 2025.

• Insurance proceeds in excess of receivables will be reflected as other operating income, intended to be presented as a special item going forward.
• RBI program on track to exceed $200 million annualized sustainable cost savings by year-end 2025.
• Q2 renewable diesel production expected to be 12,000 to 14,000 barrels per day due to planned catalyst change.
• Anticipate delevering the balance sheet as the market improves and proceeds from terminal sale are received.

• Uncertain economic environment impacting business operations.
• Narrow differentials for heavy and sour feedstocks affecting capture rates for complex refiners.
• California regulatory challenges potentially affecting refinery operations and competitiveness.
• Timing and amount of insurance proceeds dependent on covered expenditures and business interruption losses.
• Volatility in RINs and regulatory changes impacting the renewable diesel business.

Q: On Martinez repair schedule and product movement from Martinez to Torrance.

A: No change in Martinez repair schedule; long lead items ordered, and product movement from Martinez to Torrance is ongoing with Torrance fully operational.

Q: On renewable diesel volume guidance and RINs.

A: D4 RIN price surged due to PTC questions, tariff-imposed feedstock costs, and elimination of credits for imported fuels; SBR's outlook improved but D6 RIN issues need addressing.

Q: On crude quality discounts and OPEC volumes.

A: Expect differentials to widen with OPEC's moves, benefiting PBF as OPEC's actions can overwhelm headwinds from other factors.

Q: On California refinery closures and regulations.

A: California refineries critical to the state's fuel supply, need collaborative environment; state recognizing refineries' importance and need for level playing field.

Q: On net debt trajectory and capital reduction.

A: Focus on delevering balance sheet, RBI program expected to lower capital spend permanently, with current liquidity sufficient.

Q: On working capital and liquidity.

A: Working capital headwind expected to ease, current liquidity approximately $2.4 billion, with plans to normalize inventory levels.

Q: On Martinez repair cost and insurance payments.

A: Total repair cost not disclosed, insurance payments collaborative with underwriters, no fixed monthly schedule.

Q: On non-core divestments.

A: Terminals sold as they had more value for others, creating value for shareholders, with these assets considered non-core to refining business