PBF Energy Inc. Q2 FY2025 earnings call

• Matt Lucey noted the Martinez refinery was partially restarted in late April, with a goal to full restart by year-end. Highlighted constructive tailwinds on crude side, attractive product markets especially distillate, and long-term product demand growth exceeding net refining capacity additions. • Michael Bukowski discussed second quarter operations on West Coast with Martinez restart progress, completing demolition of damaged areas, and progress on Refining Business Improvement (RBI) program with savings exceeding targets, with $125 million of run rate savings implemented so far.

No detailed breakdown of product segments by revenue contribution provided in the transcript.

• Anticipated light-heavy spreads to widen as barrels come back to market by autumn, coinciding with seasonal refinery maintenance. • Product markets, especially distillate, seen as attractive with global supply/demand balances in deficit. • Expectation to negotiate additional interim insurance payments, and use periods of strength for deleveraging and balance sheet preservation.

• Insurance proceeds timing and amount dependent on covered expenditures and business interruption losses. • Light-heavy crude differentials still a challenge, with seasonal factors affecting visibility of light-heavy spreads widening. • Capacity rationalizations in refining can happen quickly and unexpectedly.

Q: Doug Leggate from Wolfe Research asks about tracking cost-cutting targets.

A: Matt Lucey and Mike Bukowski discuss OpEx, CapEx, and sustainability of savings, stating 70% of savings will be in OpEx and 30% in CapEx, with initiatives focused on continuous improvement.

Q: Neil Mehta from Goldman Sachs inquires about Martinez refinery restart logistics.

A: Michael Bukowski talks about milestones, including completion of demolition, regulatory permits near, and critical equipment like process vessels and rotating equipment as key elements.

Q: Neil Mehta follows up on Delaware City real estate.

A: Matt Lucey mentions exploring opportunities to maximize value of underutilized land around Delaware City refinery.

Q: Manav Gupta from UBS asks about cash position and Martinez restart.

A: Karen Davis states ample liquidity and Matt Lucey mentions constructive insurance working relationship.

Q: Ryan Todd from Piper Sandler asks about West Coast market dynamics.

A: Matt Lucey and Timothy Paul Davis discuss California product shortages, import volatility, and constructive market outlook post-refinery closures.

Q: Paul Cheng from Scotiabank asks about RBI and SBR.

A: Matt Lucey and Matthew C. Lucey discuss RBI OpEx savings expectation and SBR operating at optimized economic outcome, somewhat breakeven currently.

Q: Connor Fitzpatrick from Bank of America asks about U.K. refinery closures and restart options.

A: Matt Lucey states no current plans to restart Paulsboro units but will evaluate as markets evolve.

Q: Jason Gabelman from TD Cowen asks about insurance proceeds sequencing.

A: Matt Lucey explains collaborative insurance work and expectation of interim payments going forward.