Financial Data and Key Metrics Changes - For the full year 2025, the company reported consolidated net income of $90 million and EBITDA of $591 million [4] - The fourth quarter consolidated net loss was $116 million, with EBITDA of $51 million, impacted by accelerated depreciation and extended downtime [4][5] - The net loss attributable to CVI shareholders for Q4 2025 was $110 million, with losses per share of $1.10 and adjusted EBITDA of $91 million [7] Business Segment Data and Key Metrics Changes - In the petroleum segment, EBITDA for Q4 2025 was $73 million, a significant increase from $9 million in Q4 2024, driven by higher crack spreads and increased throughput [7] - The fertilizer segment reported adjusted EBITDA of $20 million for Q4 2025, down from $50 million in the prior year, affected by ammonia utilization rates and operational issues [11] - The renewable segment experienced a breakeven adjusted EBITDA for Q4 2025, a decline from $9 million in Q4 2024, due to loss of tax credits and reduced throughput [10] Market Data and Key Metrics Changes - Combined total throughput for Q4 2025 was approximately 218,000 barrels per day, with a utilization rate of 97% [8] - Benchmark cracks for Q4 softened to an average of $22.70 per barrel, with realized margins adjusted for various liabilities at $9.92 per barrel [8][9] - RINs prices declined approximately 18 cents per barrel from Q3 2025, averaging $6.05 per barrel for Q4 [9] Company Strategy and Development Direction - The company aims to focus on safe and reliable operations, reevaluating commercial optimization opportunities to improve margin capture in the petroleum segment [18][19] - Plans include expanding asset footprint and pursuing geographic diversity while maintaining disciplined capital allocation [20] - The company is optimistic about refining sector fundamentals, anticipating steady demand growth for refined products and a slowdown in global refining capacity additions [21] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding RINs and the potential for full or partial SRE grants for Wynnewood Refining Company [23] - In the fertilizer segment, strong demand for nitrogen fertilizers is expected due to anticipated corn planting increases [24] - The company is optimistic about the Midcontinent market, expecting improved dynamics with new pipeline developments [49] Other Important Information - Cash flow from operations for Q4 2025 was breakeven, with free cash flow usage of $55 million [12] - Total consolidated capital spending for 2025 was $197 million, with projections for 2026 estimated at $200 million to $240 million [13] - The company ended the quarter with a consolidated cash balance of $511 million [14] Q&A Session Summary Question: Expansion plans and asset acquisition strategy - The company is looking for proactive engagement in M&A discussions, focusing on both refining and fertilizer sectors while maintaining financial discipline [28][29] Question: Dividend return expectations - Management indicated that a clear path to further debt reduction is necessary before considering a modest dividend return, emphasizing sustainability in any future dividend [31][33] Question: Ramping up WCS runs at Coffeyville refinery - The company is prepared to increase WCS processing due to favorable market conditions and has upgraded its facilities to handle increased throughput [38][39] Question: RIN prices and blending strategies - Management acknowledged the steep costs associated with RINs and is exploring options to blend more barrels and acquire additional blending capacity [42][43] Question: Capture rates and pipeline projects - The company is optimistic about improving margin capture rates and sees potential benefits from new pipeline infrastructure in the Midcontinent region [46][49]

Group 1 - Performance was impacted by accelerated depreciation from reverting the Wynnewood renewable diesel unit to hydrocarbon processing and extended downtime at the Coffeyville fertilizer plant [1] - Management is initiating a cultural shift toward commercial optimization to improve margin capture by responding faster to volatile market windows and feedstock opportunities [1] - The reversion of the Wynnewood unit is expected to expand crude slate flexibility and allow for the repurposing of rail assets for better feedstock security [1] Group 2 - At Coffeyville, the company is aggressively ramping up WCS processing toward 20,000 barrels per day to capitalize on widening Canadian crude differentials [1] - The Fertilizer segment faced a 3-week startup delay caused by a third-party air separation plant, though underlying nitrogen demand remains robust due to high corn acreage estimates [1] - Management is adopting a more proactive stance toward M&A, seeking geographic diversity and scale through bilateral discussions rather than traditional auction processes [1]

Core Insights - PBF Energy Inc. reported a fourth-quarter 2025 adjusted earnings of 49 cents per share, surpassing the Zacks Consensus Estimate of a loss of 15 cents, and improving from a loss of $2.82 per share in the same quarter last year [1][8] - Total quarterly revenues decreased to $7.14 billion from $7.35 billion in the prior-year quarter, but still exceeded the Zacks Consensus Estimate of $6.98 billion [1] Financial Performance - The strong quarterly earnings were attributed to a higher refining margin per barrel of throughput and a reduction in total costs and expenses [2] - PBF Energy's operating income in the Refining segment was $205.7 million, a significant recovery from an operating loss of $362 million a year ago [3] - The Logistics segment generated a profit of $52.7 million, slightly up from $51.7 million in the prior-year quarter [3] Throughput and Margins - Crude oil and feedstock throughput volumes reached 888.9 thousand barrels per day (bpd), an increase from 862 thousand bpd a year ago, with the East Coast contributing 37.2% of the total throughput [4] - The company-wide gross refining margin per barrel of throughput was $11.16, significantly higher than $4.89 in the previous year, with notable increases across all regions [5] Costs and Expenses - Total costs and expenses for the quarter were $7 billion, down from $7.7 billion in the year-ago period, with cost of sales amounting to $7.3 billion [6] Capital Expenditure and Balance Sheet - PBF Energy invested $113.6 million in capital for refining operations and $3.1 million for logistics businesses, ending the quarter with cash and cash equivalents of $527.9 million [7] - The total debt stood at $2.15 billion, resulting in a total debt-to-capitalization ratio of 28% [7] Outlook - For the first quarter of 2026, PBF Energy expects throughput volumes on the East Coast to be between 280,000 bpd and 300,000 bpd, with similar estimates for other regions [9] - The company is also working to restore the full operational capability of the Martinez refinery within the year [9]

Financial Data and Key Metrics Changes - Combined adjusted EBITDA for Q4 2025 was $336.1 million, an increase from $289 million in Q4 2024 and $245 million in Q3 2025 [12] - Total net sales for Q4 2025 reached $1.7 billion, compared to $1.4 billion in Q4 2024 [12] - Gross margins improved to 25.1% in Q4 2025 from 23.5% in Q4 2024 [13] - For the full year 2025, core ingredients EBITDA was $922 million, up from $790 million in 2024 [12] Business Line Data and Key Metrics Changes - Core ingredients EBITDA for Q4 2025 was $278 million, compared to $230 million in Q4 2024 [12] - Feed segment EBITDA improved to $193 million in Q4 2025 from $150 million a year ago, with total sales of $1.13 billion versus $924 million [13] - Food segment total sales for Q4 2025 were $429 million, up from $362 million in Q4 2024 [14] - Fuel segment, specifically Diamond Green Diesel (DGD), achieved $57.9 million in EBITDA for Q4 2025, marking its strongest quarter of the year [8][15] Market Data and Key Metrics Changes - Demand for domestic fats in the U.S. remains robust, supported by favorable agricultural and energy policies [8] - Internationally, the global rendering business in Europe, Canada, and Brazil showed solid year-over-year growth [8] - DGD sold approximately 1 billion gallons in 2025, earning $103.7 million in EBITDA, or $0.21 per gallon [9] Company Strategy and Development Direction - The company aims to be the world's largest and most profitable processor of animal byproducts, focusing on operational excellence and core strengths [5] - Plans to sharpen the portfolio may lead to asset sales, while also exploring opportunities to strengthen and expand core business [10] - The company is optimistic about the policy backdrop for renewable fuels, which is expected to enhance DGD's earning potential [9] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the uncertainties from evolving renewables public policy and global trade but emphasized a commitment to fundamentals [5] - The outlook for 2026 is encouraging, with positive global demand trends and expectations for improved margins in the fuel segment [8][20] - Management anticipates a modest pullback in Q1 2026 but expects core ingredients adjusted EBITDA to be in the range of $240 million to $250 million [21] Other Important Information - The company recorded an income tax benefit of $11 million for Q4 2025, with an effective tax rate of -15.3% [18] - Restructuring and impairment charges of $58 million were recorded in the quarter [19] - The company ended 2025 with approximately $1.3 billion available on its revolving credit facility [17] Q&A Session Summary Question: Guidance for DGD margins and potential inclusion in future guidance - Management indicated that guidance for DGD will depend on clarity regarding the Renewable Volume Obligation (RVO) [27][28] Question: Sensitivity of the feed business to RVO changes - Management noted that the feed business is sensitive to U.S. and North American feedstock values, which are expected to be supportive [29] Question: Insights on biofuels production and feedstock demand - Management stated that there hasn't been a significant increase in biofuel production yet, and better margins are needed to incentivize more production [33] Question: Expectations for the food business and EBITDA - Management expressed optimism for the collagen and gelatin business, expecting a year similar to or better than the previous year [35] Question: RVO expectations and potential impact on Darling's feed business - Management supports an RVO for advanced biofuels translating to 5.25 billion to 5.61 billion gallons, which would be constructive for margins [40] Question: Rationale for the Potencei Group acquisition - Management highlighted the strategic fit of the Potencei facilities within their existing footprint and the potential for margin enhancement [68] Question: Capital allocation priorities post-leverage targets - Management emphasized that capital allocation will focus on paying down debt, with reassessment following clarity on cash flow from DGD [79]

Group 1: Stock Performance and Market Conditions - Chevron's shares increased by 16.1% in January, outperforming the S&P 500's 1.4% rise [1] - Oil prices rebounded in January, with WTI rising by 14% and Brent by 16%, marking the first monthly gain in six months [1][2] Group 2: Supply Concerns and Geopolitical Factors - Supply concerns, particularly related to Venezuela and tensions with Iran, were significant factors driving oil prices higher [2] - The capture of former Venezuelan President Nicolás Maduro could impact oil flows due to the country's substantial oil reserves [2] Group 3: Chevron's Operational Strength - Chevron has operated in Venezuela for over 100 years and could play a role in rebuilding the country's oil infrastructure [3] - The company reported strong fourth-quarter financial results, despite a decline in earnings compared to 2024 due to lower oil prices [4][5] Group 4: Financial Performance and Shareholder Returns - Chevron returned $27.1 billion to shareholders through dividends and repurchases last year, and increased its dividend by 4% at the start of this year, marking 39 consecutive years of dividend growth [6] - The company achieved record production volumes and significant free cash flow growth, aided by its acquisition of Hess and expansion projects [5][6] Group 5: Growth Strategy and Diversification - Chevron made meaningful progress on its growth strategy, including the completion of the Hess acquisition and the initiation of several expansion projects [7] - The company is diversifying beyond oil and gas, with initiatives such as the Geismar renewable diesel plant and entry into the U.S. lithium sector [7]

Financial Performance - Marathon Petroleum Corp. reported a net income of $1.5 billion, or $5.12 per diluted share, for Q4 2025, a significant increase from $371 million, or $1.15 per diluted share, in Q4 2024 [1][7] - Adjusted net income for Q4 2025 was $1.2 billion, or $4.07 per diluted share, compared to $249 million, or $0.77 per diluted share, in Q4 2024 [1][3] - For the full year 2025, net income attributable to MPC was $4.0 billion, or $13.22 per diluted share, up from $3.4 billion, or $10.08 per diluted share, in 2024 [3][7] - Adjusted EBITDA for Q4 2025 was $3.5 billion, compared to $2.1 billion in Q4 2024 [2][5] - Full-year adjusted EBITDA for 2025 was $12.0 billion, an increase from $11.3 billion in 2024 [3][5] Operational Highlights - Refining & Marketing segment adjusted EBITDA was $1,997 million in Q4 2025, up from $559 million in Q4 2024, with a margin of $7.15 per barrel compared to $2.03 per barrel in the prior year [6][8] - Full-year refining utilization was 94% with a margin capture of 105%, indicating strong operational performance [7] - Crude capacity utilization was 95%, resulting in total throughput of 3.0 million barrels per day for Q4 2025 [8] Cash Flow and Capital Returns - Cash provided by operating activities was $8.3 billion for the full year 2025, slightly down from $8.7 billion in 2024 [3][7] - The company returned approximately $1.3 billion of capital to shareholders in Q4 2025, with a total of $4.5 billion in capital returns for the year [7][13] Strategic Initiatives - The company plans to allocate $1.5 billion for standalone capital spending in 2026, focusing 65% on value-enhancing projects and 35% on sustaining capital [14][17] - Key investments include high-return projects at various refineries, with specific capital expenditures outlined for refining and marketing segments [17][20] Financial Position - As of December 31, 2025, the company had $3.7 billion in cash and cash equivalents, with no borrowings under its $5 billion revolving credit facility [13][49] - Total consolidated debt stood at $32.9 billion, with MPC debt at $7.2 billion and MPLX debt at $25.7 billion [49]

Core Viewpoint - Valero Energy Corporation (VLO) is expected to report a significant increase in fourth-quarter earnings, with a consensus estimate of $3.19 per share, reflecting a 398.4% year-over-year improvement, despite a projected revenue decline of 6% to $28.9 billion [2][5]. Earnings Performance - VLO has consistently exceeded earnings estimates in the past four quarters, with an average surprise of 138.8% [3]. - The company has experienced four upward and two downward revisions in earnings estimates over the last 30 days [2]. Earnings Estimates and Trends - The current earnings estimate of $3.19 per share shows a positive trend compared to previous estimates, with a 3.57% increase over the last 30 days [3]. - The Earnings ESP (Expected Surprise Prediction) stands at -2.90%, indicating a lower likelihood of an earnings beat this quarter [4]. Market and Operational Factors - Valero is anticipated to benefit from strong refining margins due to lower crude prices, which averaged $59.64 per barrel compared to $70.74 in the prior-year quarter, thus reducing feedstock costs [5][6]. - However, the company faces challenges in the Renewable Diesel segment and increased depreciation and amortization expenses related to the closure of the Benecia Refinery, which may negatively impact earnings [7]. Stock Performance and Valuation - VLO's stock has increased by 32.4% over the past year, outperforming the industry average of 16% [8]. - The company is currently considered overvalued, with a trailing 12-month EV/EBITDA ratio of 9.02X, significantly higher than the industry average of 4.66X [9]. Company Overview - Valero Energy operates 15 refineries with a combined throughput capacity of 3.2 million barrels per day, providing operational flexibility to process various feedstocks [11]. - The company maintains a strong financial position with a low debt-to-capitalization ratio of 18% as of September 30, 2025, and utilizes excess free cash flow for share buybacks [13]. Industry Context - The refining industry is cyclical and volatile, with margins dependent on crude oil prices and demand for refined products, which can fluctuate significantly [13]. - Other refining companies like Phillips 66 and Par Pacific Holdings are also expected to benefit from favorable refining margins due to tightened supply and resilient demand for refined fuels [16].

Core Insights - Phillips 66 (PSX) is a prominent refiner in the energy sector, focusing on processing various feedstocks into finished products while addressing environmental concerns related to conventional fuels [1] - The demand for cleaner fuels and technologies is expected to rise as global attention on air quality standards increases [1] Group 1: Business Diversification - To meet the growing demand for cleaner fuels, PSX is diversifying its operations to produce lower-carbon fuels such as renewable diesel, sustainable aviation fuel (SAF), and renewable naphtha [2] - The Rodeo Renewable Energy Complex and the Humber facility in the UK are key sites for PSX's renewable fuel production [9] Group 2: Production Capabilities - The Rodeo Renewable Energy Complex utilizes waste oils, fats, greases, and vegetable oils to produce renewable diesel and SAF, while the Humber facility can refine both plant-based and traditional fuel inputs [3] - PSX currently produces approximately 50,000 barrels of renewable fuels daily [3][9] Group 3: Environmental Initiatives - PSX is implementing co-processing techniques to convert used plastics into fuel inputs, thereby reducing plastic waste and reliance on new raw materials [4] Group 4: Industry Comparisons - BP plc and Valero Energy Corporation (VLO) are also engaged in the production of low-carbon fuels, with VLO having an annual capacity of 1.2 billion gallons of renewable diesel and 235 million gallons of neat SAF [5][6] Group 5: Financial Performance - PSX shares have increased by 14.9% over the past year, outperforming the industry average of 12.7% [7] - The current trailing 12-month enterprise value to EBITDA (EV/EBITDA) for PSX is 14.29X, significantly higher than the industry average of 4.56X [10] Group 6: Earnings Estimates - The Zacks Consensus Estimate for PSX's earnings has been revised downward for the upcoming quarters, but there has been a slight increase for the full-year 2025 earnings estimate [11]

Core Insights - The energy sector faced significant challenges in 2025, with oil prices under pressure due to oversupply concerns, leading to a stagnant performance compared to broader equity markets [1][3] - Despite the struggles, growth stocks in the energy sector, such as Cenovus Energy, TechnipFMC, and Valero Energy, are gaining attention as potential investment opportunities as the market transitions into 2026 [2][12] Energy Sector's Performance - The Oil/Energy sector delivered only 7% returns in 2025, while the S&P 500 surged by 20%, indicating a stark contrast in performance [3] - Crude oil prices fell to around $60 per barrel, over 20% lower than the beginning of the year, reflecting a supply-demand mismatch [3] Importance of Growth Stocks - Growth stocks in the energy sector focus on expanding volumes and improving efficiency rather than solely relying on commodity price cycles [5] - These companies are positioned for long-term gains through innovation and strategic investments in clean energy and advanced technologies [5][10] Potential for Upside Surprises - Growth stocks can outperform expectations, with even modest improvements in financial metrics leading to significant stock performance [6] - Investors looking beyond short-term volatility may find that growth stories develop quietly before gaining broader market recognition [6] Opportunities from Underperformance - Historical trends show that prolonged underperformance in energy stocks can lead to opportunities as weaker players exit the market, improving the competitive landscape for stronger companies [9] - Low prices can accelerate market rebalancing, leading to production cuts and tighter fundamentals, which may create attractive entry points for growth-focused investors [10] Growth Prospects for 2026 - The energy landscape heading into 2026 is nuanced, with expected subdued oil prices but growing demand for natural gas, LNG infrastructure, and efficiency-driven technologies [11] - Companies like Cenovus Energy, TechnipFMC, and Valero Energy are highlighted as having growth drivers tied to structural shifts in energy production and consumption [12] Company-Specific Insights - **Cenovus Energy**: Focuses on low-cost oil sands and refining assets, with a disciplined growth strategy and a Zacks Rank of 1, indicating strong potential for earnings growth [15][17] - **TechnipFMC**: A global provider of subsea and surface technologies, positioned for steady growth with a Zacks Rank of 2 and a focus on energy transition goals [18][20] - **Valero Energy**: One of the largest independent refiners, with a significant renewables footprint and a projected earnings growth of 25.1% for 2026, holding a Zacks Rank of 2 [21][23]

Company Overview - Valero Energy Corporation (VLO) has a market cap of $55.1 billion and is a leading global manufacturer and marketer of petroleum-based and low-carbon transportation fuels, operating in North America, the U.K., Ireland, and Latin America [1] - The company operates refining, renewable diesel, and ethanol segments, producing a wide range of fuels and related products sold through wholesale markets and branded retail outlets [1][2] Stock Performance - VLO shares have decreased by 2.7% from their 52-week high of $185.62, but have increased by 18.8% over the past three months, outperforming the Energy Select Sector SPDR Fund (XLE), which rose over 1% in the same period [3] - Year-to-date, VLO stock is up 47.3%, significantly surpassing XLE's 6.6% gain, and has surged 29.8% over the past 52 weeks, while XLE has dropped by 4.4% [4] - The stock has been trading above its 50-day and 200-day moving averages since early May [4] Recent Financial Performance - On October 23, VLO shares jumped nearly 7% after the company reported a stronger-than-expected Q3 2025 adjusted EPS of $3.66 and beat revenue expectations with $32.17 billion [5] - The company reported a significant rebound in refining performance, with a 44% surge in refining margin per barrel to $13.14 and throughput utilization of 97% [5] Competitive Position - In comparison, rival Marathon Petroleum Corporation (MPC) has shown weaker performance, with MPC stock climbing 40.6% year-to-date and 25.6% over the past 52 weeks [6] - Analysts maintain a cautiously optimistic view on VLO, with a consensus rating of "Moderate Buy" from 20 analysts and a mean price target of $187.61, indicating a premium of 3.9% to current levels [6]