Financial Data and Key Metrics Changes - The company reported a fourth quarter net loss attributable to shareholders of $28 million, or negative $0.16 per diluted share, reflecting special items that decreased net income by $249 million [18] - Adjusted net income for the fourth quarter was $221 million, or $1.20 per diluted share, compared to an adjusted net loss of $191 million, or negative $1.02 per diluted share for the same period in 2024 [18] - Adjusted EBITDA for the fourth quarter was $564 million, compared to $28 million in the fourth quarter of 2024 [18] Business Line Data and Key Metrics Changes - In the refining segment, fourth quarter adjusted EBITDA was $403 million, compared to negative $169 million in the fourth quarter of 2024, driven by higher adjusted refinery gross margins [19] - The marketing segment reported EBITDA of $22 million in the fourth quarter, compared to $21 million in the fourth quarter of 2024, primarily driven by higher margins [20] - The lubricants and specialty segment reported adjusted EBITDA of $43 million for the fourth quarter, down from $70 million in the fourth quarter of 2024, due to lower finished and specialty product sales volumes and higher operating costs [21] Market Data and Key Metrics Changes - The company experienced seasonal weakness in its refining business, with fuel margins strongest in the first half of the quarter but weakening significantly towards the end [9] - Crude oil charge averaged 556,000 barrels per day for the fourth quarter, compared to 562,000 barrels per day for the fourth quarter of 2024 [20] Company Strategy and Development Direction - The company is focused on three key priorities: reliability, integration, and shareholder return, with significant progress reported in these areas for 2025 [10] - A new joint venture, Green Trail Fuels, LLC, was formed to enhance the company's branded marketing footprint in the Rockies and Southwest, indicating a strategic step forward for the marketing segment [13] - The company plans to grow its branded sites by approximately 10% annually, demonstrating commitment to expanding its marketing reach [12] Management's Comments on Operating Environment and Future Outlook - Management expressed bullishness on refining margins for 2026, focusing on safe and reliable operations and continued growth in midstream lubricants and marketing segments [17] - The company anticipates a final investment decision for phase one of its midstream refined products pipeline network expansion by mid-year [16] - Management emphasized that the audit committee is comfortable with the financial disclosures made, despite ongoing reviews related to disclosure processes [72] Other Important Information - The company returned $230 million to shareholders through dividends and share repurchases in the fourth quarter, reflecting a commitment to returning excess cash [10] - Total liquidity stood at approximately $3 billion as of December 31, 2025, including a cash balance of $978 million [23] Q&A Session Summary Question: Can you provide color on the management change and the audit? - Management stated they cannot comment further on the circumstances but view the situation as a buying opportunity [26] Question: What is the outlook for small refinery exemptions (SREs)? - Management indicated they intend to continue participating in the SRE program and appreciated the EPA's formulaic approach [27] Question: Can you clarify the impact of SREs on margins? - Management explained that the crack environment was strong initially but weakened later in the quarter, impacting margins [31] Question: What are the expected benefits of the Green Trail Fuels JV? - Management expressed excitement about the JV, indicating it will accelerate growth and capture synergies across integrated assets [33] Question: How is the lubricants segment expected to perform moving forward? - Management noted that seasonality and higher operational expenditures impacted the fourth quarter, but steady demand is expected [60]