PBF Energy Inc. Q1 FY2026 earnings call

• Matt Lucey discussed the restart of Martinez refinery with focus on cat feed hydrotreater, alkylation unit, and FCC. • Mike Bukowski provided update on refining business improvement program, achieving $230 million of annualized rent rate savings in 2025 and progress on RBI program. • Joe Marino gave financial overview including adjusted results, impact of unfavorable conditions, insurance recoveries, and details on capex, working capital, and balance sheet. • Discussed operations outside West Coast, Torrance turnaround, and progress of Martinez restart.

Excluding special items, adjusted net loss was 88 cents per share and adjusted EBITDA was $68.7 million. Martinez refinery restart is in final stages with cat feed hydrotreater and alkylation unit running, FCC expected to make finished products this weekend. FDR produced an average of 16,700 barrels per day of renewable diesel in first quarter. PVF's cash used in operations for the quarter was $324 million.

• Expect inventory to normalize as operations ramp up, resulting in tailwind in working capital cash flows. • Anticipate further progress on Martinez insurance claim and receive additional payments. • Focus on reducing gross and net debt using periods of strength.

• Disruption in Middle East causing oil market disruption affecting product supply and pricing. • Uncertainty in trade patterns normalization post Middle East conflict. • Volatility in derivative markets impacting results. • Ongoing nature of Martinez insurance claim with potential for further payments and uncertainties.

Q: On global macro, does U.S. refining have advantage over global peers?

A: Matt Lucey said U.S. refining has advantage with insulation from natural gas and physical security, access to crude, and well-positioned coastal complexity.

Q: What gives confidence Martinez will restart without further delays?

A: Mike Bukowski said delays were due to verifying equipment, two units up and running, close to FCC startup with checks passed.

Q: On East Coast dynamics, exposure and capture rates?

A: Matt Lucey and Tom discussed reliance on imports, assets running well, and crude access.

Q: On capital allocation with Martinez back on?

A: Joe Marino said look at balance sheet first, prioritize transferring value from debt to equity.

Q: On West Coast crude pricing and availability?

A: Paul and Paul discussed California crude pricing, proprietary pipeline, and pull from Asia.

Q: On Refining Business Improvement Program progress?

A: Mike Bukowski said on path to $350 million by year-end 26 with savings increasing quarter to quarter.

Q: On Martinez restart timeline and crude slate change?

A: Matt Lucey said expect Martinez to be up soon, Tom discussed market impact and recovery.

Q: On capture rate and business interruption?

A: Matt Lucey said difficult to pinpoint capture rates in extraordinary periods, Joe Marino said insurance claim ongoing.

Q: On Martinez hydrocracker turnaround and SBR outlook?

A: Matt Lucey said potential push to end of third quarter, Paul discussed SBR outlook and RINs.

Q: On maintenance and margins?

A: Mike Bukowski said second and third quarters clean, evaluate maintenance later, Joe Marino discussed derivative losses and inventory hedging