PBF Energy(US:PBF)2025-10-30 10:52Commodity Derivatives and Inventories - As of September 30, 2025, the company had gross open commodity derivative contracts representing 21.5 million barrels with an unrealized net gain of $4.1 million[296]. - The company's hydrocarbon inventories totaled approximately 32.2 million barrels at September 30, 2025, with an average cost of $79.61 per barrel on a LIFO basis[297]. - The average cost of hydrocarbon inventories was approximately $80.46 per barrel at December 31, 2024, indicating a slight decrease in average cost year-over-year[297]. Market Risks - The company is exposed to market risks related to changes in commodity prices, which significantly affect earnings, cash flow, and liquidity[294]. - A $1.00 per MMBTU change in natural gas prices would increase or decrease the company's natural gas costs by approximately $70.0 million to $90.0 million annually[298]. - The company manages exposure to commodity price risks through supply and offtake agreements and various commodity derivative instruments[295]. Credit Facilities and Interest Rates - The maximum commitment under the company's Revolving Credit Facility is $3.5 billion, with an outstanding balance of $350.0 million in variable interest debt as of September 30, 2025[303]. - A 1.0% change in the interest rate on the Revolving Credit Facility would increase or decrease the company's interest expense by approximately $25.2 million annually[303]. Regulatory and Compliance Risks - The company's overall Renewable Identification Numbers (RINs) obligation is based on a percentage of domestic shipments of on-road fuels, which may require purchasing RINs on the open market if blending requirements are not met[300]. - The company is subject to risks associated with complying with federal and state legislative measures to address greenhouse gas emissions, which may result in increased operational costs[301].