Core Viewpoint - PBF Energy Inc. plans to repair and restart its 157,000 barrel per day refinery in Martinez, CA, which was damaged by a fire on February 1, 2025, with a two-stage restart process expected to begin in Q2 2025 and complete by Q4 2025 [1][2][3] Group 1: Refinery Operations - The refinery's restart will occur in two stages, with certain units, including the crude unit, expected to restart early in Q2 2025, while remaining units are anticipated to restart by Q4 2025 [1] - During the first stage, throughput is expected to range from 85,000 to 105,000 barrels per day, producing limited quantities of gasoline, jet fuel, and intermediates [1] - The timing of the restart is contingent on various factors, including regulatory permitting and the availability of critical equipment [1] Group 2: Financial Impact and Insurance - The cost of repairs is expected to be largely covered by insurance, with a deductible and retentions totaling $30 million [2] - Business interruption insurance is anticipated to significantly offset financial losses incurred during the downtime, covering ongoing costs and potential lost margin opportunities from April 3, 2025, until operations are fully restored [2] Group 3: Company Commitment and Community Impact - The company emphasizes its commitment to restoring operations safely and responsibly, expressing gratitude to first responders and acknowledging the inconvenience caused to the community [3] - PBF Energy aims to maintain jobs for employees and continue providing critical transportation fuels, particularly for California [3] Group 4: Company Overview - PBF Energy Inc. is one of the largest independent refiners in North America, operating refineries and related facilities across several states [5] - The company's mission includes operating facilities safely and reliably, providing a rewarding workplace for employees, and delivering superior returns to investors [5] - PBF Energy is also a 50% partner in the St. Bernard Renewables joint venture, focusing on sustainable fuel production [6]

Group 1 - PBF Energy Inc. will participate in the Raymond James Institutional Investor Conference on March 3-4, 2025, and the Wolfe Research Refining Conference on March 6, 2025 [1] - Company presentation materials will be available on the Investor Relations section of the PBF Energy website [1] - PBF Energy is one of the largest independent refiners in North America, operating oil refineries and related facilities in multiple states [2] Group 2 - The company's mission includes operating facilities in a safe and environmentally responsible manner, providing a rewarding workplace, positively influencing communities, and delivering superior returns to investors [2] - PBF Energy is a 50% partner in the St. Bernard Renewables joint venture, which focuses on producing next-generation sustainable fuels [3]

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]