Core Viewpoint - The performance improvement in Q4 is primarily attributed to the widening differentials in heavy and medium crude, benefiting the company's high-complexity coastal refining system [1] Company Operations - The Martinez refinery is nearing a methodical restart after a year-long rebuild, with full operations expected by early March to address the tight California fuel market [1] - The company has the capacity to process approximately 200 million barrels of heavy/sour crude annually, which constitutes 55-60% of its total throughput capacity [1] Market Outlook - The 2026 market outlook is optimistic, with global refining capacity additions concentrated in Asia, leading to high petrochemical yields and tight transportation fuel balances [1] Strategic Efficiencies - Strategic efficiencies achieved a run-rate of $230 million in 2025 through the Refinery Business Improvement (RBI) program, with a new target of $350 million by the end of 2026 [1] External Factors - The lifting of Venezuela sanctions is seen as an immediate benefit, providing additional heavy barrel supply to the U.S. Gulf Coast and enhancing light-heavy spreads [1]

Core Viewpoint - Sky Quarry Inc. forecasts a potential fuel shortage in Nevada due to production disruptions, regulatory actions, and rising demand, positioning itself to ramp up production to address this gap [1][5]. Group 1: Market Conditions - Nevada imports approximately 150,000 barrels of transportation fuel daily, with California supplying about 88% of Nevada's fuel needs [2]. - Recent disruptions, including the explosion at the Martinez refinery, which accounts for 9.64% of California's refining capacity, are tightening fuel supply [2]. - California's ABX2-1 law may further reduce refinery output, impacting fuel availability in Nevada and Arizona [3]. Group 2: Company Positioning - Sky Quarry's Foreland Refinery is the only crude oil refinery in Nevada, currently operating below full capacity but plans to increase production in 2025 [5]. - The company aims to utilize its 4,500-5,000 barrel-per-day refining capacity to stabilize the regional fuel market and benefit from rising refining margins [5]. - CEO David Sealock emphasizes the company's critical role in stabilizing the regional fuel supply amid supply disruptions in California [6]. Group 3: Industry Trends - The Nevada fuel market is tightening due to rising demand from expanding industrial sectors like mining, which are crucial to the state's economy [4]. - California imports 59% of its crude oil and fuels, averaging 850,000 barrels daily in 2022, indicating a reliance on external sources that could be affected by proposed tariffs [3].