PBF Energy(PBF) - 2025 Q2 - Quarterly Results

Q2 2025 Financial and Operational Highlights PBF Energy reported a Q2 2025 income from operations of $43.0 million, a significant turnaround from a $74.6 million loss in Q2 2024, while declaring a $0.275 per share dividend Overall Performance and CEO Remarks PBF Energy reported a $43.0 million income from operations in Q2 2025, a turnaround from prior year's loss, with the CEO highlighting operational improvements and strategic cost savings Q2 2025 vs. Q2 2024 Key Financial Results | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Income (Loss) from Operations | $43.0 million | $(74.6) million | | Loss from Operations (Excl. Special Items) | $(110.0) million | $(72.5) million | | Net Loss Attributable to PBF | $(5.2) million | $(65.2) million | | Net Loss per Share | $(0.05) | $(0.56) | | Adjusted Fully-Converted Net Loss | $(118.5) million | $(64.2) million | | Adjusted Fully-Converted Net Loss per Share | $(1.03) | $(0.54) | - The company declared a quarterly dividend of $0.275 per share, payable on August 28, 2025[4] - CEO Matt Lucey noted that while performance improved and Martinez operations were partially restored, the company faces challenges from narrow light-heavy feedstock differentials, with strategic focus remaining on debt reduction and cash savings through the company-wide RBI initiative[3] Key Business Updates This section provides updates on the Martinez refinery, terminal asset sales, and company guidance Martinez Refinery Update The Martinez refinery partially resumed operations in Q2 2025 with 85,000-105,000 bpd throughput, targeting full restart by year-end, with costs largely covered by insurance - Limited operations were restored in Q2, with expected throughput of 85,000 to 105,000 bpd[6] - A full restart of the remaining units is planned to occur by year-end 2025, contingent on regulatory approvals and equipment availability[6] - Rebuilding costs are expected to be largely covered by insurance, subject to a $30.0 million deductible, with an initial unallocated insurance payment of $280 million ($250 million net to PBF) received in Q2[7][8] Sale of Terminal Assets PBF Energy agreed to sell two refined product terminal facilities for $175 million, with the transaction expected to close in Q3 2025 - On April 30, 2025, the company agreed to sell two terminal facilities for $175 million[9] - The assets include 38 storage tanks with approximately 1.9 million barrels of storage capacity[9] Guidance and Outlook PBF Energy targets over $200 million in annualized cost savings by year-end 2025 through its RBI initiative, updating full-year capital expenditure and interest expense guidance - The Refining Business Improvement (RBI) initiative is expected to generate over $200 million of annualized, run-rate sustainable cost savings by year-end 2025, and over $350 million by year-end 2026[11] Full-Year 2025 Guidance Update | Metric | Guidance Range | | :--- | :--- | | Capital Expenditures | $750 million - $775 million | | Interest Expense | $165 million - $185 million | Third Quarter 2025 Throughput Guidance (bpd) | Region | Low | High | | :--- | :--- | :--- | | East Coast | 320,000 | 340,000 | | Mid-continent | 150,000 | 160,000 | | Gulf Coast | 175,000 | 185,000 | | West Coast | 220,000 | 230,000 | | Total | 865,000 | 915,000 | St. Bernard Renewables (SBR) Update St. Bernard Renewables averaged 14,200 bpd of renewable diesel production in Q2 2025, with Q3 production expected to increase to 16,000-18,000 bpd - SBR averaged 14,200 bpd of renewable diesel production in Q2 2025[15] - Q3 2025 renewable diesel production is expected to average between 16,000 and 18,000 bpd[15] Financial Statements This section presents the company's condensed consolidated statements of operations, balance sheet data, and cash flow information Condensed Consolidated Statements of Operations PBF reported Q2 2025 revenues of $7.475 billion and a net loss of $5.4 million, a substantial improvement from the prior year, driven by insurance recoveries Q2 2025 vs. Q2 2024 Statement of Operations (in millions, except per share data) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :--- | :--- | :--- | | Revenues | $7,475.3 | $8,736.1 | | Income (Loss) from Operations | $43.0 | $(74.6) | | Gain on insurance recoveries | $189.0 | $— | | Net Loss | $(5.4) | $(66.0) | | Net Loss Attributable to PBF | $(5.2) | $(65.2) | | Diluted Loss Per Share | $(0.05) | $(0.56) | | Dividends per common share | $0.275 | $0.25 | Condensed Consolidated Balance Sheet Data As of June 30, 2025, PBF Energy's total assets were $12.980 billion, with total debt increasing to $2.390 billion, raising the debt to capitalization ratio to 31% Balance Sheet Data (in millions) | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $590.7 | $536.1 | | Total assets | $12,980.4 | $12,703.2 | | Total debt | $2,390.2 | $1,457.3 | | Total equity | $5,216.3 | $5,678.6 | | Total debt to capitalization ratio | 31% | 20% | Summarized Statement of Cash Flow Data In H1 2025, cash used in operating activities was $470.3 million, a reversal from the prior year, with $896.2 million provided by financing activities Six Months Ended June 30, Cash Flow (in millions) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Cash flows (used in) provided by operating activities | $(470.3) | $441.1 | | Cash flows used in investing activities | $(371.3) | $(617.6) | | Cash flows provided by (used in) financing activities | $896.2 | $(239.8) | | Net change in cash and cash equivalents | $54.6 | $(416.3) | Segment Information This section details the financial performance of PBF Energy's Refining, Logistics, and Corporate segments Segment Performance In Q2 2025, the Refining segment generated $7.466 billion in revenue and $72.8 million in income from operations, contributing to a consolidated income of $43.0 million Segment Financials - Three Months Ended June 30, 2025 (in millions) | Segment | Revenues | Income (Loss) from Operations | | :--- | :--- | :--- | | Refining | $7,465.6 | $72.8 | | Logistics | $98.0 | $56.3 | | Corporate | $— | $(86.1) | | Consolidated Total | $7,475.3 | $43.0 | Segment Financials - Three Months Ended June 30, 2024 (in millions) | Segment | Revenues | Income (Loss) from Operations | | :--- | :--- | :--- | | Refining | $8,726.6 | $(46.9) | | Logistics | $98.5 | $51.0 | | Corporate | $— | $(78.7) | | Consolidated Total | $8,736.1 | $(74.6) | Operating Metrics and Regional Performance This section provides key market indicators, consolidated operating information, and supplemental regional performance data Consolidated Operating Information Q2 2025 saw lower crude oil benchmarks and decreased throughput to 839.1 kbpd, yet gross refining margin improved slightly to $8.38 per barrel Key Market Indicators (dollars per barrel) | Indicator | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Dated Brent crude oil | $67.70 | $85.02 | | West Texas Intermediate (WTI) | $63.81 | $80.82 | | Dated Brent (NYH) 2-1-1 Crack Spread | $22.24 | $21.46 | Key Consolidated Operating Information | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Throughput (bpd in thousands) | 839.1 | 921.3 | | Gross refining margin, excl. special items ($/bbl) | $8.38 | $8.12 | | Refining operating expense ($/bbl) | $7.96 | $6.94 | Supplemental Operating Information by Region Q2 2025 regional performance varied, with East Coast, Mid-Continent, and Gulf Coast improving margins, while West Coast throughput dropped to 203.5 kbpd due to the Martinez fire Q2 2025 vs Q2 2024 Regional Operating Highlights | Region | Throughput (kbpd) Q2'25 | Throughput (kbpd) Q2'24 | Gross Refining Margin/bbl (excl. items) Q2'25 | Gross Refining Margin/bbl (excl. items) Q2'24 | | :--- | :--- | :--- | :--- | :--- | | East Coast | 299.8 | 319.7 | $7.37 | $2.52 | | Mid-Continent | 162.2 | 139.8 | $10.14 | $9.50 | | Gulf Coast | 173.6 | 165.1 | $7.35 | $8.66 | | West Coast | 203.5 | 296.7 | $9.35 | $13.21 | Reconciliations of Non-GAAP Measures This section provides reconciliations of GAAP measures to non-GAAP financial metrics, including adjusted net income, EBITDA, and gross refining margin Reconciliation of Net Income to Adjusted Fully-Converted Net Income Q2 2025 GAAP net loss of $5.2 million was adjusted to an $118.5 million fully-converted net loss, primarily due to a $189.0 million insurance recovery gain Reconciliation to Adjusted Fully-Converted Net Loss (in millions) | Description | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Net loss attributable to PBF | $(5.2) | $(65.2) | | Adjusted fully-converted net loss | $(5.3) | $(65.8) | | Special Items (Pre-tax): | | | | Gain on insurance recoveries | $(189.0) | — | | Martinez refinery fire expenses | $30.4 | — | | Severance and related charges | $13.6 | — | | LCM inventory adjustment - SBR | $(8.0) | $2.1 | | Adjusted fully-converted net loss excluding special items | $(118.5) | $(64.2) | Reconciliation to EBITDA and Adjusted EBITDA PBF's Q2 2025 net loss of $5.4 million reconciled to an EBITDA of $204.8 million, with adjusted EBITDA reaching $61.8 million after special items EBITDA Reconciliation - Q2 2025 vs Q2 2024 (in millions) | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Net income (loss) | $(5.4) | $(66.0) | | EBITDA | $204.8 | $84.1 | | EBITDA excluding special items | $51.8 | $86.2 | | Adjusted EBITDA | $61.8 | $94.8 | Reconciliation of Gross Refining Margin Q2 2025 consolidated gross margin was a $58.0 million loss, but the non-GAAP gross refining margin was $640.1 million, or $8.38 per barrel Gross Refining Margin Reconciliation - Q2 2025 vs Q2 2024 | Metric | Q2 2025 ($M) | Q2 2025 ($/bbl) | Q2 2024 ($M) | Q2 2024 ($/bbl) | | :--- | :--- | :--- | :--- | :--- | | Consolidated gross margin | $(58.0) | $(0.76) | $6.3 | $0.08 | | Gross refining margin | $640.1 | $8.38 | $681.1 | $8.12 |