Group 1 - The article discusses the financial challenges faced by PBF Energy due to weak crack spreads, which are impacting the company's cash reserves accumulated previously [1] - The author emphasizes the importance of evaluating potential equities in the power and energy industries for long-term investment opportunities [1] - The focus is on income-producing equities and rental real estate properties as viable options for cash flow and long-term appreciation [1] Group 2 - The article does not provide any specific financial data or performance metrics related to PBF Energy or the broader industry [2][3]

Core Viewpoint - PBF Energy Inc. reported a wider adjusted loss in Q4 2024 compared to both the Zacks Consensus Estimate and the previous year's loss, indicating ongoing challenges in the refining sector despite a revenue beat [1][2]. Financial Performance - The adjusted loss for Q4 2024 was $2.82 per share, compared to the Zacks Consensus Estimate of a loss of $2.68 and a loss of $0.41 per share in the same quarter last year [1]. - Total revenues decreased to $7.35 billion from $9.14 billion year-over-year, but exceeded the Zacks Consensus Estimate of $7.25 billion [1]. Segmental Performance - The Refining segment reported an operating loss of $362 million, significantly worse than the operating income of $26.6 million a year ago and also below the estimated loss of $52.8 million [3]. - The Logistics segment generated a profit of $51.7 million, down from $54.9 million in the prior-year quarter, and below the estimate of $55.6 million [3]. Throughput Analysis - Crude oil and feedstock throughput volumes were 862 thousand barrels per day (bpd), lower than the year-ago figure of 878.2 thousand bpd and below the estimate of 869.4 thousand bpd [4]. - The East Coast, Mid-Continent, Gulf Coast, and West Coast regions accounted for 32.6%, 17.5%, 17.2%, and 32.7% of total throughput, respectively [4]. Margins - The company-wide gross refining margin per barrel was $4.89, down from $9.88 a year earlier [5]. - Specific margins included $4.342 for the East Coast (down from $11.29), $2.87 for the Gulf Coast (down from $10.89), and $5.85 and $5.94 for the Mid-Continent and West Coast, respectively, compared to $6.94 and $8.93 a year ago [5]. Costs & Expenses - Total costs and expenses for the quarter were $7.7 billion, down from $9.2 billion in the prior-year period [6]. - Cost of sales, including operating expenses and depreciation, amounted to $7.66 billion, lower than $9.05 billion reported a year ago [6]. Capital Expenditure & Balance Sheet - PBF Energy invested $230.5 million in refining operations and $3.9 million in logistics [7]. - As of the end of Q4, the company had cash and cash equivalents of $0.54 billion and total debt of $1.46 billion, resulting in a total debt-to-capitalization ratio of 17.67% [7]. Outlook - For Q1 2025, PBF anticipates throughput volumes of 250,000 to 270,000 bpd on the East Coast, 135,000 to 145,000 bpd in the Mid-Continent, 155,000 to 165,000 bpd in the Gulf Coast, and 200,000 to 210,000 bpd on the West Coast [8].

Financial Data and Key Metrics Changes - For Q4 2024, the company reported an adjusted net loss of $2.82 per share and an adjusted EBITDA loss of $249.7 million, which included a $4.8 million loss related to PBF's equity investment in St. Bernard Renewables [25][27] - Cash flow used in operations for the quarter was approximately $330 million, including a working capital headwind of about $83 million [26][29] - The company ended the quarter with approximately $536 million in cash and approximately $921 million of net debt, maintaining a net debt to capital ratio of 16% [28][46] Business Line Data and Key Metrics Changes - The refining segment faced a weak margin environment and poor crude differentials, continuing the trend from the second half of 2024 [12][13] - The company executed a major turnaround at Chalmette, which adversely impacted capture rates in that region [12][13] - The renewable diesel production from St. Bernard Renewables averaged 17,000 barrels per day in Q4, with expectations of 10,000 to 12,000 barrels per day in Q1 2025 due to a planned catalyst change [25] Market Data and Key Metrics Changes - The California market is short on refined products and relies on imports, compounded by the announced shutdown of a LA Basin refinery scheduled for fall 2025 [11] - Global refining supply and product demand remain tightly balanced, with forward cracks looking constructive [14][15] Company Strategy and Development Direction - The company is focused on a Refining Business Improvement Program targeting over $200 million in run rate cost savings to be implemented by the end of 2025 [21][24] - The company aims to operate safely, reliably, and efficiently while enhancing value for investors [18][29] - The financial position is viewed as a strength, providing flexibility to navigate challenging market conditions and invest in future opportunities [17][29] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenging market conditions faced by refiners, but expressed a long-term positive outlook for global refining supply and product demand [12][14] - The company is committed to maintaining a strong balance sheet and prioritizing deleveraging as market conditions improve [29][46] - Management emphasized the importance of collaboration with stakeholders following the Martinez refinery incident and the need for a constructive partnership with local authorities [8][10] Other Important Information - The company has proper insurance coverage for the Martinez incident, although specifics were not disclosed [11][54] - The company returned approximately $60 million to shareholders in Q4 through share repurchases and declared a regular quarterly dividend of $27.05 per share [27][28] Q&A Session Summary Question: Timeline for clarity on Martinez incident damage and repairs - Management indicated that access to the site is still restricted, but they expect to have a better assessment soon and will communicate transparently as information becomes available [33][36] Question: Financial levers to ensure liquidity during repairs - Management highlighted their strong financial position and ability to manage capital expenditures without deferring spending, ensuring cash generation will not be hindered by the Martinez incident [40][44] Question: Insurance offset details for the Martinez incident - Management stated that while specifics were not disclosed, they have proper coverage and will work closely with insurance providers to assess the situation [54][55] Question: Impact of potential peace between Ukraine and Russia on refining - Management acknowledged that peace could lead to wider light-heavy differentials, benefiting the company [65][66] Question: East Coast throughput guidance and market conditions - Management explained that throughput adjustments are based on market conditions, with no structural issues affecting operations [129] Question: Business improvement plan and cost savings timeline - Management clarified that the $200 million in savings will be phased in over time, with full implementation expected by January 2026 [97][98] Question: Impact of tariffs on crude sourcing and refining operations - Management discussed the dynamic nature of tariffs and their potential impact on throughput, emphasizing the need for market adjustments [72][80]

Core Insights - PBF Energy reported a revenue of $7.35 billion for the quarter ended December 2024, reflecting a 19.6% decrease year-over-year, while EPS was -$2.82 compared to -$0.41 in the same quarter last year [1] - The revenue exceeded the Zacks Consensus Estimate of $7.25 billion by 1.46%, but the EPS fell short of the consensus estimate of -$2.68 by 5.22% [1] Financial Performance Metrics - PBF Energy's gross refining margins varied by region, with the Mid-Continent at $5.85 per barrel (vs. $6.09 estimate), West Coast at $5.94 per barrel (vs. $6.43 estimate), Gulf Coast at $2.87 per barrel (vs. $4.39 estimate), and East Coast at $4.42 per barrel (vs. $4.85 estimate) [4] - Total crude oil and feedstocks throughput was reported at 79.3 MBBL, slightly below the 79.32 MBBL estimate [4] - Revenues from logistics were $97.60 million, exceeding the $96.02 million estimate, marking a year-over-year increase of 0.8% [4] - Revenues from refining were $7.34 billion, significantly lower than the $6.52 billion estimate, representing a year-over-year decline of 19.6% [4] - Revenues from eliminations were reported at -$88.40 million, slightly worse than the -$84.03 million estimate, with a year-over-year change of 1.1% [4] Stock Performance - PBF Energy's shares have returned -15% over the past month, contrasting with the Zacks S&P 500 composite's +3.9% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market in the near term [3]

Group 1: Earnings Performance - PBF Energy reported a quarterly loss of $2.82 per share, which was worse than the Zacks Consensus Estimate of a loss of $2.68, and compared to a loss of $0.41 per share a year ago, indicating a significant decline [1] - The company posted revenues of $7.35 billion for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 1.46%, but down from $9.14 billion year-over-year [2] - Over the last four quarters, PBF Energy has surpassed consensus EPS estimates only once, while it has topped consensus revenue estimates four times [2] Group 2: Stock Outlook - The immediate price movement of PBF Energy's stock will largely depend on management's commentary during the earnings call and future earnings expectations [3][4] - PBF Energy shares have gained about 0.2% since the beginning of the year, underperforming the S&P 500's gain of 2.9% [3] - The current consensus EPS estimate for the upcoming quarter is -$0.99 on revenues of $7.71 billion, and -$0.69 on revenues of $31.86 billion for the current fiscal year [7] Group 3: Industry Context - The Oil and Gas - Refining and Marketing industry, to which PBF Energy belongs, is currently ranked in the bottom 20% of over 250 Zacks industries, which may negatively impact stock performance [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, suggesting that investors should monitor these revisions closely [5][6]

Environmental and Regulatory Compliance - The company continues to incur significant capital expenditures for equipment upgrades and facility improvements to mitigate operational, safety, and environmental risks[162]. - Compliance costs related to environmental, health, and safety regulations are expected to increase over time, impacting the company's financial condition[164]. - The company is subject to stringent regulations regarding greenhouse gas emissions, which may require increased capital expenditures and operational costs[169]. - California's regulations mandate a 40% reduction in greenhouse gas emissions below 1990 levels by 2030, with further reductions required by 2045[170]. - The company may face substantial liabilities for environmental clean-up and remediation costs, which could adversely affect cash flow and financial results[172]. - Potential future regulations related to climate change could materially impact the company's operations and profitability[167]. - The company has assumed certain environmental obligations from acquisitions, which may lead to significant liabilities if prior owners fail to meet their obligations[173]. - The company is actively cooperating with agencies regarding the environmental effects of PFAS, which may lead to increased liabilities and regulatory scrutiny[174]. - Regulatory changes could increase compliance costs and limit business opportunities, adversely affecting operations and profitability[175]. - The company faces significant liabilities and costs related to compliance with health, safety, and environmental regulations, which are complex and frequently changing[184]. Legislative Changes - California's Senate Bill No. 1322 requires refineries to report monthly on crude oil costs, wholesale gasoline prices, and gross gasoline margins starting January 2023[178]. - Senate Bill No. 2, effective June 26, 2023, authorizes the establishment of a maximum gross gasoline refining margin and imposes penalties for exceeding it, along with expanded reporting obligations[179]. - Assembly Bill No. 1, adopted in October 2024, allows the California Energy Commission to impose minimum inventory requirements for refined transportation fuels[181]. - The implementation of SBx 1-2 and ABx 2-1 could adversely affect the company's financial results and profitability due to potential restrictions on operations[182]. Financial Condition and Debt Management - As of December 31, 2024, the company has total debt of $1,498.9 million, excluding unamortized deferred debt issuance costs of $41.6 million[220]. - The company recognized a total liability for the Tax Receivable Agreement of $293.6 million, with $125.4 million recorded as a current liability paid in January 2025[233]. - The 6.0% senior unsecured notes due 2028 and the 7.875% senior unsecured notes due 2030 are rated Ba3 by Moody's, BB by S&P, and BB by Fitch[225]. - The company may incur additional indebtedness in the future, which could exacerbate existing leverage risks[223]. - The company’s ability to meet future principal obligations will depend on its future performance, which is subject to general economic conditions and industry cycles[221]. - The Revolving Credit Facility matures in 2028, and there is no assurance that the company will be able to refinance these agreements on acceptable terms[222]. - A portion of the company's cash flow from operations will be dedicated to the payment of principal and interest on its indebtedness, limiting availability for other purposes[224]. - The company may face increased borrowing costs due to market disruptions, rising inflation, and higher interest rates[222]. - Certain covenants in the company's debt arrangements may limit its ability to borrow additional funds and make certain investments[226]. - PBF Energy's financial flexibility may be significantly affected by its level of indebtedness, increasing the risk of default[221]. Market and Competitive Landscape - The competitive landscape includes companies providing alternative energy sources, which may position them better against changes in refining capacity and margins[196]. - The company faces competition from larger integrated oil companies that have greater resources and may be more flexible in responding to market conditions, which could adversely affect its operations[203]. - Increased scrutiny on ESG matters may lead to reduced demand for the company's products and negatively impact its stock price and access to capital markets[194]. - Current inflation has resulted in increased costs for feedstocks, labor, and materials, potentially adversely affecting the company's financial condition[197]. - Geopolitical tensions, particularly the ongoing conflict in Ukraine, have led to significant market disruptions and could adversely impact the company's financial condition and cash flows[200]. Operational Risks - Cybersecurity threats pose risks to the company's technology infrastructure, which could materially affect its operations and financial results[187]. - The company may incur substantial costs if it cannot obtain necessary permits and authorizations, which could negatively impact its operations[183]. - Labor disruptions due to union negotiations could negatively affect operational and financial results, as collective bargaining agreements are set to expire between 2026 and 2028[214]. - The company relies on unaffiliated sources for feedstocks, which may pose risks compared to competitors that produce their own supply[203]. - The company’s forecasted internal rates of return are based on market fundamentals that are beyond its control, and any adverse changes could significantly impact financial performance[208]. Shareholder Considerations - PBF Energy's ability to pay dividends is at the discretion of its Board of Directors, and there is no obligation to declare or pay dividends[237]. - The market price of PBF Energy Class A common stock has been highly volatile, influenced by various factors including market conditions in the oil refining industry[240]. - Stockholders may face dilution due to potential sales of equity or convertible securities, which could depress the price of Class A common stock[244]. - The interests of other members of PBF LLC may not always align with the interests of PBF Energy Class A common stockholders[232]. - PBF Energy's organizational structure as a holding company means it relies on its subsidiaries for cash flow, which may limit its ability to meet obligations if distributions are restricted[229].

Financial Performance - Fourth quarter 2024 loss from operations was $383.2 million, compared to a loss of $47.2 million in Q4 2023; excluding special items, the loss was $427.9 million versus $46.1 million in Q4 2023[2][3] - Full year 2024 loss from operations totaled $699.0 million, down from an income of $2,951.5 million in 2023; excluding special items, the loss was $588.0 million compared to an income of $2,017.6 million in 2023[4] - Fourth quarter 2024 net loss attributable to PBF Energy Inc. was $289.3 million, or $(2.54) per share, compared to a net loss of $48.4 million, or $(0.40) per share in Q4 2023[3] - Adjusted fully-converted net loss for 2024 was $456.1 million, or $(3.89) per share, compared to an adjusted fully-converted net income of $1,477.3 million, or $11.32 per share in 2023[5] - For the three months ended December 31, 2024, the company reported a net loss of $292.6 million compared to a net loss of $48.4 million for the same period in 2023[26] - EBITDA for the three months ended December 31, 2024, was $(219.2) million, a significant decrease from $94.3 million in the prior year[26] - The consolidated gross margin for the year ended December 31, 2024, was $(372.2) million, compared to $2,398.6 million in 2023[49] Revenue and Expenses - Revenues for Q4 2024 were $7,351.3 million, a decrease of 19.5% from $9,138.7 million in Q4 2023[22] - Total cost and expenses for Q4 2024 were $7,734.5 million, a decrease of 15.0% from $9,185.9 million in Q4 2023[22] - Total revenues for the year ended December 31, 2024, were $33,115.3 million, down from $38,324.8 million in 2023, representing a decline of approximately 13%[34] - The company reported cash flows provided by operations of $43.4 million for the year ended December 31, 2024, a significant decline from $1,338.5 million in 2023[30] Dividends and Shareholder Returns - The company declared a quarterly dividend of $0.275 per share, with over $60 million returned to stockholders through dividends and share buybacks in Q4 2024, and approximately $450 million for the full year[4][6] - Dividends per common share increased to $0.275 in Q4 2024 from $0.25 in Q4 2023[22] Assets and Liabilities - As of year-end 2024, PBF had approximately $536 million in cash and $921 million in net debt, having paid approximately $119 million in dividends during the year[9] - The company’s total assets decreased to $12,703.2 million as of December 31, 2024, from $14,387.8 million in 2023, reflecting a reduction of about 12%[28] - Cash and cash equivalents at the end of the period were $536.1 million, down from $1,783.5 million at the end of 2023, indicating a decrease of approximately 70%[30] - The total debt increased to $1,457.3 million in 2024 from $1,245.9 million in 2023, resulting in a total debt to capitalization ratio of 20% compared to 16% in the previous year[28] - Total debt increased to $1,457.3 million as of December 31, 2024, compared to $1,245.9 million as of December 31, 2023[76] - The total debt to capitalization ratio increased to 20% as of December 31, 2024, from 16% as of December 31, 2023[76] - Net debt was $921.2 million as of December 31, 2024, compared to a negative net debt of $(537.6) million as of December 31, 2023[76] - Total equity excluding special items decreased to $4,686.8 million as of December 31, 2024, from $5,557.4 million as of December 31, 2023[76] Production and Operational Metrics - Renewable diesel production averaged approximately 17,000 barrels per day in Q4 2024, with expectations of 10,000 to 12,000 barrels per day in Q1 2025 due to a catalyst change[7] - The company's production for the three months ended December 31, 2024, was 871.1 thousand barrels per day (bpd), a decrease from 884.9 bpd in the same period of 2023[42] - The total crude oil and feedstocks throughput for the year ended December 31, 2024, was 330.9 million barrels, slightly up from 329.0 million barrels in 2023[42] - The total throughput for the West Coast segment was 25.9 million barrels for the three months ended December 31, 2024, compared to 21.6 million barrels in 2023[46] Refining Margins - The gross refining margin, excluding special items, per barrel of throughput for the year ended December 31, 2024, was $7.89, down from $16.07 in 2023[42] - The gross refining margin excluding special items for the year ended December 31, 2024, was $2,612.1 million, down from $5,287.7 million in 2023[49] - The gross margin per barrel of throughput for the Mid-Continent (Toledo) segment for the year ended December 31, 2024, was $2.28, compared to $3.82 in 2023[44] - The gross refining margin per barrel of throughput for the Gulf Coast segment was $2.87 for Q4 2024, significantly lower than $10.89 in Q4 2023[48] - The gross margin per barrel of throughput for the West Coast segment was $(15.44) for the three months ended December 31, 2024, compared to $(8.12) in the same period of 2023[46] Future Outlook and Events - A fire at the Martinez refinery on February 1, 2025, resulted in a temporary shutdown; the extent of damage and financial impact is currently being assessed[8] - PBF Energy is committed to extensive maintenance and multiple turnarounds across its refining system in 2025, with the planned turnaround at the Martinez refinery delayed due to the recent fire[10] - The first quarter 2025 throughput expectations are projected to be between 250,000 to 270,000 barrels per day for the East Coast, 135,000 to 145,000 barrels per day for the Mid-continent, 155,000 to 165,000 barrels per day for the Gulf Coast, and 200,000 to 210,000 barrels per day for the West Coast[11][12]

Core Insights - PBF Energy Inc. reported a significant increase in losses for the fourth quarter of 2024, with a loss from operations of $383.2 million compared to a loss of $47.2 million in the same quarter of 2023 [1][2] - The company experienced a net loss of $292.6 million in Q4 2024, translating to $(2.54) per share, compared to a net loss of $48.4 million or $(0.40) per share in Q4 2023 [2] - The company declared a quarterly dividend of $0.275 per share, payable on March 14, 2025 [4] Financial Performance - For the full year 2024, PBF Energy reported a loss from operations of $699.0 million, a stark contrast to an income from operations of $2,951.5 million in 2023 [3][8] - The adjusted fully-converted net loss for 2024 was $456.1 million or $(3.89) per share, compared to an adjusted fully-converted net income of $1,477.3 million or $11.32 per share in 2023 [3][8] - The company had approximately $536 million in cash and $921 million in net debt at year-end 2024 [7] Operational Updates - A fire occurred at the Martinez refinery on February 1, 2025, during planned maintenance, leading to a temporary shutdown of operations [3][6] - The company is committed to extensive maintenance and multiple turnarounds across its refining system in 2025, with the planned turnaround at Martinez now delayed due to the fire [9][6] - Renewable diesel production averaged approximately 17,000 barrels per day in Q4 2024, with expectations of 10,000 to 12,000 barrels per day in Q1 2025 during catalyst changes [5] Market Position and Outlook - PBF Energy's President emphasized the company's strong financial condition entering 2024 and its ability to navigate challenging market conditions [3] - The global refining market remains tight, with demand growth expected to exceed new refinery additions, positioning PBF's coastal refining system favorably for future cycles [3] - The company returned over $60 million to stockholders through dividends and share buybacks in Q4 2024, totaling approximately $450 million for the year [8][7]

Core Viewpoint - PBF Energy is expected to report a significant quarterly loss and a decline in revenues, indicating challenging market conditions for the company [1]. Financial Performance - Analysts predict a quarterly loss of $2.46 per share, reflecting a 500% decline compared to the same period last year [1]. - Revenues are forecasted to be $7.25 billion, representing a year-over-year decrease of 20.7% [1]. - The consensus estimate for 'Revenues- Logistics' stands at $96.02 million, indicating a change of -0.8% from the year-ago quarter [5]. - The consensus for 'Revenues- Refining' is projected to reach $6.52 billion, showing a year-over-year change of -28.6% [5]. Refining Margins - The estimated 'Gross refining margin, excluding special items - Mid-Continent' is expected to be $6.09 per barrel, down from $6.94 per barrel in the same quarter last year [6]. - For the 'Gross refining margin, excluding special items - West Coast', the estimate is $6.43 per barrel, compared to $8.93 per barrel a year ago [6]. - The 'Gross refining margin, excluding special items - Gulf Coast' is projected at $4.39 per barrel, down from $10.89 per barrel last year [7]. - The 'Gross refining margin, excluding special items - East Coast' is expected to be $4.85 per barrel, compared to $11.29 per barrel in the previous year [7]. - The average prediction for 'Gross refining margin, excluding special items' is $5.58 per barrel, down from $9.88 per barrel a year ago [8]. Production Metrics - Analysts estimate 'Total Crude Oil and Feedstocks Throughput' to reach 79.32 MBBL, compared to 80.8 MBBL in the same quarter last year [8]. - The estimated 'Production - Gulf Coast' is 154.08 thousand barrels of oil per day, down from 175.8 thousand barrels per day in the previous year [9]. - For 'Production - Mid-Continent', the estimate is 147.36 thousand barrels per day, slightly up from 143 thousand barrels per day last year [10]. - 'Production - East Coast' is projected at 289.39 thousand barrels per day, down from 325.7 thousand barrels per day in the same quarter last year [10]. - The combined estimate for 'Production - Total' is 872.62 thousand barrels per day, compared to 884.9 thousand barrels per day a year ago [11]. Market Performance - PBF Energy shares have shown a return of -2.5% over the past month, contrasting with the Zacks S&P 500 composite's +4.2% change [12].

PBF Energy (PBF) is expected to deliver a year-over-year decline in earnings on lower revenues when it reports results for the quarter ended December 2024. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.The earnings report, which is expected to be released on February 13, 2025, might help the stock move higher if these key numbers are better than e ...