PBF Energy Inc. Q4 FY2025 earnings call

Martinez Refinery

• On the cusp of restarting, construction work to be completed by weekend, plant to be turned over to operations next week, expected fully operational in early March 2026.

Q4 Performance

• Exited 2025 on a strong trajectory with sequential improvement over prior quarters, benefited from improving crude dynamics, heavy and medium crude supply increased light-heavy spreads, coastal complex refining system benefited.

Outlook

• 2026 refining fundamentals supported by tight refining balances, demand growth vs transportation fuel capacity additions, sour crude differentials widening with Venezuela barrels entering market, PBF well suited to market dynamics; $230M efficiencies achieved in 2025, $120M additional run-rate savings expected by end of 2026, RBI effort ongoing.

RBI Program

• Achieved $230M annualized run-rate savings by end of 2025, reduced operating expenses and capital/turnaround expenditures; over 1,300 initiatives identified, procurement practices revamped to realize over $35M annual savings.

Refinery Operations

• Torrance turnaround mechanical portion completed, busy 2026 turnaround schedule; West Coast Martinez team commended for safety and execution.

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

Martinez

• Expected fully operational in early March 2026.

Capital Program

• 2026 capital program with higher absolute spend due to turnaround activity, but savings from RBI incorporated in budget.

First Quarter

• Expect CapEx and working capital outflows related to Martinez restart and seasonal inventory.

Dividend

• Board approved $0.275 per share quarterly dividend.

Debt

• Aim to reduce net debt using periods of strength.

Insurance

• Claim settlement timing and amount dependent on incurred expenditures and business interruption losses.

RIN Liability

• Regulatory uncertainty impacting renewable fuel business, including feedstock costs and policy shifts.

Market Seasonality

• Seasonal fluctuations in product markets, potential impact of new refinery startups in Asia on refining balances.

Q: Manav Gupta asked about tailwind from additional Venezuela barrels for PBF.

A: Matthew C. Lucey explained PBF's ability to consume heavy and sour barrels, leveraging crude differentials, and positive impact of Venezuela barrels entering market.

Q: Manav Gupta followed up on Martinez restart.

A: Matthew C. Lucey discussed tight product market in California, competitor shutdown, and methodical restart expecting full operation by early March.

Q: Ryan M. Todd asked about refining margin improvement.

A: Matthew C. Lucey attributed to widening crude differentials and capture rate increase.

Q: Ryan M. Todd followed up on RBI program.

A: Michael A. Bukowski discussed OpEx and capital components of RBI savings, procurement practices, and efficiency improvements.

Q: Neil Singhvi Mehta asked about optimal net debt.

A: Matthew C. Lucey discussed deleveraging during strong market periods and returning cash to shareholders.

Q: Neil Singhvi Mehta followed up on product markets.

A: Thomas O’Connor discussed seasonalities, product dynamics, and refining balances.

Q: Doug Leggate asked about insurance proceeds and RIN liability.

A: Joseph Marino and Matthew C. Lucey discussed insurance proceeds unallocated, BI recovery, and RIN liability as working capital.

Q: Phillip Jungwirth asked about Q1 throughput and crude diff sustainability.

A: Matthew C. Lucey and Thomas O’Connor discussed utilization, turnaround schedule, and structural vs seasonal crude diffs.

Q: Paul Cheng asked about RBI offsetting costs.

A: Joseph Marino discussed RBI savings net of inflation and natural gas price sensitivity.

Q: Jason Daniel Gabelman asked about CapEx and insurance proceeds.

A: Matthew C. Lucey and Michael A. Bukowski discussed turnaround schedule and accounting convention for insurance proceeds.