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]