Core Insights - PBF Energy Inc. has seen a 12.9% increase in share price over the past three months, outperforming the Zacks Oil & Gas - Refining and Marketing industry, which declined by 0.3% [1][6] - The company operates a diversified refining network with a throughput capacity exceeding 1 million barrels per day and a Nelson Complexity Index of 12.8, allowing it to process various crude oil types [3][6] - PBF Energy's earnings are projected to grow by 26.6% over the next five years, surpassing the industry average growth of 12.7% [10] Company Operations - PBF Energy has launched a Refining Business Improvement Program aimed at achieving over $200 million in run-rate savings by the end of 2025, enhancing operational efficiency and profitability [4][7] - The company maintains a balanced product output, with 45% gasoline, 36% distillate, and other products, which helps mitigate localized demand fluctuations [8] - PBF Energy has a lower debt-to-capitalization ratio than the industry average and a cash balance of $0.47 billion, sufficient to cover long-term debt obligations of $2.24 billion, indicating strong liquidity [9] Market Position - PBF Energy shares are trading at a price-to-book value of 0.48X, significantly lower than the industry average of 1.78X, suggesting a discount compared to peers [11] - The average price target for PBF Energy shares is $21.23, indicating a potential downside of 2.53% from the last closing price [12] - The company's slow transition to renewable energy compared to peers poses a risk of losing market share, particularly in sectors like renewable diesel and hydrogen fuel [15]

Core Points - PBF Energy Inc. will release its earnings results for the second quarter of 2025 on July 31, 2025 [1] - A conference call and webcast will be held on the same day at 8:30 a.m. ET to discuss the results and other business matters [1][2] Company Overview - PBF Energy Inc. is one of the largest independent refiners in North America, operating oil refineries and related facilities in California, Delaware, Louisiana, New Jersey, and Ohio [3] - The company's mission includes operating facilities safely and responsibly, providing a rewarding workplace for employees, positively influencing local communities, and delivering superior returns to investors [3] - PBF Energy is a 50% partner in the St. Bernard Renewables joint venture, which focuses on producing next-generation sustainable fuels [4]

Group 1 - The oil market continues its strong performance, with WTI crude oil futures rising 2.8% to $63.67 per barrel and Brent crude oil futures increasing 2.6% to $66.63 per barrel, marking the largest four-day gain since October of the previous year [1] - The positive market sentiment is driven by a breakthrough in US-China trade negotiations, where both parties agreed to suspend new tariffs for 90 days, alleviating concerns over weak energy demand [1] - The US Labor Department reported a narrowing year-on-year increase in the Consumer Price Index (CPI) to 2.3%, the lowest in four years, which has led institutions like JPMorgan and Barclays to lower recession forecasts for the US economy [1] Group 2 - Geopolitical factors are also providing support, with the Trump administration adopting a hardline stance towards Iran, raising concerns about the stability of Middle Eastern supply [2] - Demand signals are turning positive, as a JPMorgan report indicates that despite uncertainties in crude oil demand, the refined oil market remains strong, with gasoline and diesel prices stable [2] - The refining sector is experiencing a bullish response in the secondary market, with companies like PBF Energy rising 10.1% and Delek US increasing by 6.1% [2]

Group 1 - PBF Energy's shares have declined significantly, losing 68% of their value over the past year [1] - Following the recent earnings release, PBF Energy's stock dropped by 3% [1] - The company has been identified as a poor performer in the market, indicating potential challenges in its operational or financial performance [1]

Leadership Changes - Planet Based Foods Global Inc. has announced significant changes to its executive leadership team and board of directors, effective immediately [1] - Sigal Shapira has been appointed as the Chief Executive Officer, President, and Director, bringing nearly 20 years of international business experience [2] - Emrah Petorak joins as Chief Financial Officer, contributing his financial expertise to support the company's strategic goals [2] Board Appointments - Evelyne Batamuliza has been appointed as Chairwoman of the Board, alongside Lauren Camp as independent directors, enhancing governance with diverse perspectives [3] - Their expertise will also contribute to the audit committee, reflecting the company's commitment to robust oversight [3] Executive Departures - Theodore Cash Llewellyn is stepping down from his roles as Chief Executive Officer and Interim Chief Financial Officer, with Kevin Vines also resigning from the Board [4] - The company expresses gratitude for their service and contributions [4] Company Vision and Commitment - The new CEO, Sigal Shapira, emphasizes the company's focus on providing high-quality food ingredients and empowering women-led farming communities globally [5] - The company aims to promote sustainable agriculture through plant-based products that benefit ecosystems and support regenerative agriculture [5] - Planet Based Foods Global Inc. is dedicated to advancing the plant-based food industry with a focus on sustainability and equitable partnerships [6]

Core Insights - PBF Energy Inc. reported a first-quarter 2025 adjusted loss of $3.09 per share, which was narrower than the Zacks Consensus Estimate of a loss of $3.50, but worse than the prior year's loss of $0.86 per share [1] - Total revenues for the quarter decreased to $7.07 billion from $8.65 billion year-over-year, yet exceeded the Zacks Consensus Estimate of $6.47 billion [1] - The better-than-expected earnings were attributed to reduced costs and expenses despite lower throughput volumes and declining refining margins [2][3] Financial Performance - The Refining segment reported an operating loss of $473.2 million, a significant decline from an operating income of $170.6 million in the previous year, falling short of the estimated operating income of $99.2 million [3] - The Logistics segment generated a profit of $51.4 million, up from $45.1 million in the prior-year quarter, surpassing the estimate of $45.5 million [3] Throughput Analysis - Crude oil and feedstock throughput volumes averaged 730.4 thousand barrels per day (bpd), down from 897.4 thousand bpd year-over-year and below the estimate of 770 thousand bpd [4] - The East Coast, Mid-Continent, Gulf Coast, and West Coast regions contributed 35.9%, 18.8%, 21.6%, and 23.7% respectively to total throughput volumes [4] Margins - The company-wide gross refining margin per barrel was $5.96, significantly lower than $11.73 in the previous year and below the estimate of $9.94 [5] - Regional margins included $5.86 for the East Coast (down from $7.72), $5.32 for the Gulf Coast (down from $12.36), and $6.76 and $6.05 for the Mid-Continent and West Coast respectively, compared to $18.15 and $13.15 a year ago [6] Costs & Expenses - Total costs and expenses for the quarter were $7.56 billion, down from $8.5 billion in the prior year, but higher than the estimate of $6.97 billion [7] - Cost of sales, including operating expenses and depreciation, amounted to $7.49 billion, lower than $8.43 billion a year ago [7] Capital Expenditure & Balance Sheet - PBF Energy invested $215.6 million in capital for refining operations and $2.4 million for logistics [8] - As of the end of the first quarter, the company had cash and cash equivalents of $0.47 billion and total debt of $2.24 billion, resulting in a total debt-to-capitalization ratio of 30% [8] Outlook - For the second quarter of 2025, PBF Energy expects throughput volumes of 265,000 to 285,000 bpd on the East Coast, 150,000 to 160,000 bpd in the Mid-Continent, 165,000 to 175,000 bpd in the Gulf Coast, and 215,000 to 235,000 bpd on the West Coast [9]

Core Insights - PBF Energy reported a revenue of $7.07 billion for Q1 2025, marking an 18.3% decline year-over-year, with an EPS of -$3.09 compared to $0.86 a year ago [1] - The revenue exceeded the Zacks Consensus Estimate of $6.47 billion by 9.25%, while the EPS also surprised positively by 11.71% against the consensus estimate of -$3.50 [1] Financial Performance Metrics - PBF Energy's shares have returned -12.1% over the past month, contrasting with the Zacks S&P 500 composite's -0.7% change, and the stock holds a Zacks Rank 3 (Hold) [3] - Gross refining margins varied by region: - Mid-Continent: $6.76 per barrel (vs. $7.32 estimated) - West Coast: $6.05 per barrel (vs. $7.31 estimated) - Gulf Coast: $5.32 per barrel (vs. $5.53 estimated) - East Coast: $5.86 per barrel (vs. $5.14 estimated) - Overall gross refining margin: $5.96 per barrel (vs. $6.22 estimated) [4] - Total crude oil and feedstocks throughput was 65.7 MBBL, below the five-analyst average estimate of 70.14 MBBL [4] - Production figures were as follows: - Gulf Coast: 158.9 thousand barrels per day (vs. 163.02 estimated) - Mid-Continent: 139.1 thousand barrels per day (vs. 135.42 estimated) - East Coast: 258.4 thousand barrels per day (vs. 254.32 estimated) [4] - Revenues from logistics were $94.50 million, slightly above the $94.34 million estimate, reflecting a -1.7% year-over-year change [4] - Revenues from refining were $7.06 billion, significantly lower than the $6.16 billion estimate, representing an 18.3% decline year-over-year [4] - Revenues from eliminations were -$85.20 million, slightly worse than the -$84.07 million estimate, showing a -2% change year-over-year [4]

Financial Data and Key Metrics Changes - The company reported an adjusted net loss of $3.09 per share and an adjusted EBITDA loss of $258.8 million for the first quarter [20][21] - Cash flow used in operations for the quarter was $661.4 million, which included a working capital headwind of approximately $330 million [23] - The company ended the quarter with approximately $469 million in cash and $1.77 billion of net debt, with a net debt to capitalization ratio of 29% [24][25] Business Line Data and Key Metrics Changes - The Martinez refinery has restarted a number of unaffected units, operating in a limited configuration of 85,000 to 105,000 barrels per day [7][9] - The company is producing limited quantities of finished gasoline and jet fuel for California markets and intermediates for further processing at Torrance [8][10] - The company expects to generate over $200 million of annualized run rate sustainable cost savings by year-end 2025 through its refining business improvement program [17] Market Data and Key Metrics Changes - Gasoline stocks are below the five-year average, and distillate stocks are at the bottom of the range, indicating improving fundamentals as the driving season approaches [10] - The company anticipates that the reintroduction of incremental OPEC plus barrels will benefit its operations as tight differentials begin to loosen [11] Company Strategy and Development Direction - The company announced the sale of its Knoxville and Philadelphia terminal assets for $175 million, expected to close in the second half of the year [12] - The company is focused on controlling aspects of its business to position itself for future market cycles, emphasizing safe, reliable, and efficient operations [12][19] Management's Comments on Operating Environment and Future Outlook - Management noted that the current economic environment is tumultuous, but demand is resilient and showing signs of strength [6][10] - The company is optimistic about the long-term demand growth exceeding net refining capacity additions, creating a constructive setup for the global refining environment [11] - Management expressed confidence in the liquidity position and plans to reduce inventory and leverage insurance proceeds to bolster financial stability [25][90] Other Important Information - The company received a first installment of $250 million from its insurance program, expected to be received in the second quarter [9][20] - The company has a revised total capital budget for 2025 in the range of $750 million to $775 million, excluding costs related to the Martinez rebuild [18] Q&A Session Summary Question: Update on Martinez repair process and timeline - Management indicated no change in the timeline for repairs, with long lead items ordered and execution dependent on equipment arrival [32] Question: Integration of product movement from Martinez to Torrance - Management confirmed that the integration is currently happening, with Torrance fully operational [33] Question: Concerns regarding RINs and renewable diesel market - Management highlighted the instability in the RIN market and its potential impact on gasoline prices and refining capacity [36][40] Question: Outlook on crude quality discounts and OPEC's impact - Management expects OPEC's actions to widen differentials, positively impacting the company's operations [47][48] Question: California's regulatory environment for refiners - Management noted a recognition of the importance of in-state refining and the need for a level playing field in regulations [52][55] Question: Net debt trajectory and financing needs - Management stated that they do not anticipate needing additional financing at this time, focusing on maintaining a resilient balance sheet [59] Question: Operating costs in California for Q2 - Management did not provide specific numbers for California operating costs but indicated that it would be difficult to dissect due to various factors [70][71] Question: Examples of unexpected opportunities in the RBI program - Management reported that energy and turnaround performance have shown significant opportunities, aligning with initial expectations [74] Question: Working capital headwinds and liquidity confidence - Management acknowledged working capital headwinds but expressed confidence in liquidity levels and ongoing initiatives to stabilize operations [89][90]

Core Viewpoint - PBF Energy reported a quarterly loss of $3.09 per share, which was better than the Zacks Consensus Estimate of a loss of $3.50, indicating an earnings surprise of 11.71% [1] - The company generated revenues of $7.07 billion for the quarter, surpassing the Zacks Consensus Estimate by 9.25%, although this represents a decline from $8.65 billion in the same quarter last year [2] Financial Performance - PBF Energy's earnings have shown inconsistency, surpassing consensus EPS estimates only once in the last four quarters [2] - The company has exceeded consensus revenue estimates four times over the last four quarters [2] - The current consensus EPS estimate for the upcoming quarter is -$0.70 on projected revenues of $7.38 billion, and for the current fiscal year, it is -$5.85 on revenues of $28.89 billion [7] Stock Performance - PBF Energy shares have declined approximately 35.3% since the beginning of the year, contrasting with the S&P 500's decline of 5.3% [3] - The stock currently holds a Zacks Rank of 3 (Hold), suggesting it is expected to perform in line with the market in the near future [6] Industry Outlook - The Oil and Gas - Refining and Marketing industry is currently ranked in the top 38% of over 250 Zacks industries, indicating a favorable outlook compared to lower-ranked industries [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Financial Data and Key Metrics Changes - The company reported an adjusted net loss of $3.09 per share and an adjusted EBITDA loss of $258.8 million for Q1 2025, excluding special items related to the Martinez incident [21][22] - Cash flow used in operations for the quarter was $661.4 million, impacted by a working capital headwind of approximately $330 million [24] - The company ended the quarter with approximately $469 million in cash and $1.77 billion of net debt, with a net debt to capitalization ratio of 29% [25] Business Line Data and Key Metrics Changes - The Martinez refinery has restarted several units, operating in a limited configuration of 85,000 to 105,000 barrels per day, supplying limited quantities of finished gasoline and jet fuel [6][7] - The company expects to receive an insurance payment of $250 million related to the Martinez incident, which will aid in recovery efforts [21][22] Market Data and Key Metrics Changes - Gasoline stocks are reported to be below the five-year average, while distillate stocks are at the bottom of the range, indicating improving market fundamentals [8] - The company anticipates that the reintroduction of incremental OPEC plus barrels will benefit its operations as differentials for preferred heavy and sour feedstocks begin to loosen [10][11] Company Strategy and Development Direction - The company announced the sale of its Knoxville and Philadelphia terminal assets for $175 million as part of its strategy to optimize its asset portfolio [12] - The company is focused on generating over $200 million in annualized run rate sustainable cost savings by the end of 2025 through its refining business improvement program [17] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the demand for refined products, noting that the fundamentals are improving as the driving season approaches [7][8] - The company is preparing for potential challenges in the market, including the impact of tariffs and regulatory changes in California, while emphasizing the importance of maintaining a competitive business environment [54][112] Other Important Information - The company has initiated a cost savings program that has generated over 500 ideas, focusing on various operational areas to enhance efficiency [16] - The revised total capital budget for 2025 is now in the range of $750 million to $775 million, excluding costs related to the Martinez rebuild [19] Q&A Session Summary Question: Update on Martinez repairs and timeline - Management indicated that long lead items have been ordered, and there is no change in the timeline for repairs at this point [35] Question: Status of product movement from Martinez to Torrance - The integration of product movement is currently happening, with Torrance fully operational [36] Question: Concerns regarding renewable diesel and RINs - Management highlighted the instability in the current market, with D4 RIN prices surging due to various factors, including tariffs and supply issues [39][41] Question: Outlook on crude quality discounts and OPEC's impact - Management expects that OPEC's actions will lead to widening differentials, positively impacting the company's operations [50] Question: California's regulatory environment and refinery closures - Management noted a recognition of the importance of in-state refining and the need for a level playing field for market participants [55][112] Question: Net debt trajectory and financing needs - The company does not anticipate needing additional financing at this time, focusing on maintaining a strong balance sheet [63] Question: Operating costs in California for Q2 - Management did not provide specific numbers for California operating costs but indicated ongoing efforts to manage expenses [73] Question: Examples of unexpected opportunities in the RBI program - Management reported that energy and turnaround performance have shown significant opportunities, aligning with initial expectations [78]