PBF - Earnings call transcript Q4 2024

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Operator

Good day, everyone, and welcome to the PBF Energy Fourth Quarter and Year-End 2024 Earnings Conference Call and Webcast. [Operator Instructions] Please note, this conference is being recorded. It is now my pleasure to turn the floor over to Colin Murray of Investor Relations. Sir, you may begin.

Colin Murray

Thank you, Britney. to welcome and morning, today's call. Good members today Mike Bukowski, me Refining; Davis, several are team. and Matt CEO; and Karen other and CFO; President our our our our of management Lucey, Head With of Senior President Vice and earnings information website. XX-K filings, Copies are release including on available of our today's our supplemental

information. under future statement by harbor excluding the I'd securities press safe described the our is release. Also today's the with started, your forward-looking which the guidance company's prior items, we'll getting predictions provisions in in management's results are federal to Before or attention our in to laws. release. to that express press release intended contained direct included like the discuss Consistent or expectations safe today's be are periods, harbor statements Statements press special of covered forward-looking

other on Relations questions items after these call. any today's Investor For questions, or please contact follow-up

tables to call the Matt of turn today's the supplemental over on any non-GAAP release. now press the mentioned For Lucey. reconciliations measures I'll please provided to call, refer in

Matthew Lucey

thank Good for everyone, and you Colin. Thanks, joining the morning, call.

thankful control. experienced am want local from the Before the February first folks. who and Contra I Costa aid County the were fourth successfully we and Fire on general, refinery own in and would beyond the industrial Martinez responders, first peers our established few the Department, aid responders to to employees, personally no thank Martinez on mutual a Police battled our address injuries fire there all fire X. including that 'XX I like on the commenting I quarter at the

when We on in being to PBF earns maintenance any partnership forward everyone by as where have of the know constructively. workers prepared incident. the state, city The safe with operator. impact planned right the affected apologize maintain We county by had process for the refinery We Martinez surrounding community. in of fire operate unit. cooperative the not were and began shutdown Energy responsible, reliable began. facilities do fire communities we and need the to the equipment the to a of a this process We incident to move isolating

We are origin ongoing point still the limited Access of of is process. completion the investigations. to until the in early recovery

We of the and we experienced of are necessary the steps. to extent in set the determine process assessing up damage, next have personnel the

Looking the answers, while we understand have ahead, people for that products manufacture California. of don't all of importance the we fully we the the

short thus difficult is the the scheduled compound market, refinery While is relies regulatory refined products fall. California Basin specifications, imports. is environment, and The on California L.A. shutdown of a itself of its this situation announced with unique with for to set

not the such for properly is this. full event impact it's PBF known, While an incident yet that insured from is note to important this as

quarter. the conditions of of weak to the differentials, reflect environment and the markets dominated margin half refiners, of Results which on faced a XXXX. crude a Moving continuation challenging by is second fourth comprised the that mainly poor

turnaround cat operated our executed impact despite [ The work adversely For at turnaround The demand. focus employees in in much operating products and outstanding who our very dedication the assets still work market our the are performance of all of XX/X that conditions reflects refined well the in did We during rates quarter. a on region. ] part, successfully refineries the major that budget most Chalmette. capture

constructive. backdrop as for for margins our longer-term supply weak refiners conditions refining that cracks not a balanced. product Indeed, continues constructive this We do global remain product demand experienced reflect to recently demand believe provides market view The forward our and grow and tightly globally. look

day growth in in regions. in yet range. disproportionate range, to This a in [indiscernible] capacity XXXX. new barrels with the see capacity we additions XXX,XXX see the net to XXX,XXX have operates some we per near expect expected something announced XXXX capability, We assumes demand additions to saw balancing of the capacity are XXX,XXX

sour sweet a term. our access our feedstocks assets like heavy, been to it predominantly said, coastal white a we That narrow variety complexity system spreads the headwind This have Additionally, of in to near rewards capture more and provides. rate. broad that

is going the a benefit continues incremental that to we lot forward. aspects crude our of economically can controlling evolve, of a and conditions There's sour ourselves our system. focused to As barrels that that heavy global turbulence in the as the and picture in market will become markets, the see we shift position allows business best control PBF on available

financial our provides is cycle, now To balance and reliably safely, for must turn Bukowski Mike market cycle. strengths the market in look be a next our we successful developing markets challenging our the PBF's cost to current value flexibility improvement been our and enhance over PBF's to responsibly savings do must and to I'll of we position. business promised, operate efficiently. investors, call comments With weather as In program. across sheet for it and has this One that team with us our refining And mind, on footprint. initiative ahead

Michael A. Bukowski

Thank you, Matt. Good morning, everyone.

targeted fiscal we As be effort we corporate-wide operational that our improving number PBF expenditure of a ongoing initiatives are at collectively discipline focuses program, savings business RBI calling excellence. of will short. standards Achieving refining and that for on have Matt or cash improvement a current our our mentioned,

to committed what are are already excellent programs. improving We

within of We to opportunities systematically refining institutionalize the these have improvements future. effectively business. established the to savings capture year-over-year durability identified several the and opportunity into teams ensure these We've the areas

run the savings over of $XXX launched We've in XXXX. implemented end by different led separate X by experts, efforts cost to be matter subject rate targeting million

identified program, of largest opportunity XX% we've as representing framework XX% approximately a to As usage the areas, for overall energy and the target. basic our turnarounds

and each the approximately savings looking our to targeted field practices, planning design. XX% teams Beyond several those to we goal. These capture refineries held areas idea and generation in multiple the sessions The maintenance identified X our are areas, represent organizational at initiatives at procurement capital and XX% of expenditures, savings. our have have

initiatives end quarter, first of already plan The of these we implementation resourced. clear have be goal. expect will to underway. to prioritized, implementation the new into ideas developed of with are By an line sight overall plans and Some our the

commitment on we the a over provide employees our our it progress our generated, for stakeholders, all financial in terms future, continuing overview. savings our Karen doing, operate detail and now more to what will are I'll the external Davis to to that, in As to of turn while safely. With we

Karen Davis

Thank you, Mike.

adjusted per PBF's St. equity share renewable Bernard a per Renewables. is of day in in quarter, related $X.XX fourth the we of our million. million XX,XXX loss quarter. produced reported investment SBR average to of $XXX.X in results the loss fourth For Included net an loss adjusted EBITDA an of diesel and barrels $X.X

expected production to XX,XXX be XX,XXX result RD quarter per catalyst as barrels a to day of a First is March. in change planned

a in the refining, of CapEx which $XXX million, approximately XXXX was which approximately Full capital fourth includes working operations for $X $XX used was approximately approximately corporate CapEx million. and Consolidated logistics. includes $XXX million, year quarter flow Cash headwind for the quarter billion. was

XXXX related of our completed approximately the outflows were As $XXX quarter million cash third mentioned this of amount program at capital for XXXX. our end call, to includes on

the CapEx flow spend will but our capital that our is we actually what statement incurred reflect period. turnarounds guidance cash the note expenditures should on for in You an basis, and

our million program of fourth Since repurchases. we Through dividend, of and through quarter, returned represents to repurchase $XX over XXXX, outstanding our share we the at of in of introduced This shareholders in the XX% quarter. the billion the approximately repurchases completed program. share approximately was end beginning $X fourth our December in the shares

regular approved the cash of per in of Directors quarter approximately of We share. Additionally, net our and $X.XXX quarterly $XXX Board a million dividend $XXX with million debt. approximately ended

balance footing strong Maintaining and sheet financial priorities. our remain firm

continuously sheet ability our be and to will of entered the paramount have we strongest had. assets year invest We Our ever always fund balance operations last with importance. in

underlevered us during conditions increase to of the XXXX. Our sheet enabled weak market net balance debt

periods on look sheet. capital the at to strength to balance the market promotes expect and which opportunities off all value. our sheet use the and allocation we greatest delevering XXXX As of rebalances long-term focus we'll preserving operations, the to prioritizing After balance determine lows,

questions. we'd to our completed remarks, take opening we've Operator, and be pleased

Operator

from will question [Operator take with Read Wells first we Fargo. Instructions] And our Roger

Roger Read

I environment when in regulatory will question be I'll roll we on you'll changed that damage do with I've quick will what should and to you we you to a don't kind here. the think is but work? Martinez it for do here. everybody. is, it Anyway, guideline consider what of Recognizing what my take get line on California morning, here? what's name, What's greater the it fix believe broad allowed -- time clarity Good it just on focusing the is,

Matthew Lucey

the where off. Look, ignition still place, the is reality Thanks, of Mr. sort it's that zero ground actually cordoned took Read.

but access frankly, expected, we don't. already, quite have We to it to

to again, And at So what close access and we I to speculating. said getting that we look work get mean, dangerously different as I'm to collaboratively area comments, absolutely will investigate that with I my shortly. as in the all have stakeholders suspect happened. I we

access once fire. damage we And were from there's obviously, site, appreciate the so the now And full we to to we commencing get turnaround. have a

over should call think of already just So as be view, was can you assess ground I I to, -- our so that. able as area on to I very But can in short the they to to the access over to coincided promise or have much at all next effort getting time And and the as work transparently front I to have learn a going then better a forward. openly cordoned and we sort in forward. moment communicate now, teams, multipronged time, we'll shareholders this next that but week period we moving much of be assessment. there's better that soon. things so, have we But happens off we and do a we'll It a the said, suspect of doing

Roger Read

I say Timing kind some negative some which you long exactly costs of down What of right? consumes based or so -- let's impact second the things question just question which ensure tracking Yes. that do down XXXX are the But far. little uncertainty, can liquidity-wise levers the on neutral this. there are to the The part it's with or you'll I'm kind is of how is know results, -- Karen. to deferrals second I'm putting standpoint? the on in a whatever look a do necessary? premature answer? have bit position pull of is to the cash, QX a in what of what a and everything, the only QX, words Really, the ties Maybe also we If in are we what how it are it's are. with Understood. watching? at for But CapEx not should your to should that's about just sure. Are in out be of repairs cash you, for mouth. you more from sufficient X really operate of position think company with some topics units to a bigger where

Matthew Lucey

a mentioned strongest financial 'XX in turn think then regards I'd make position in it financial financial our we strength, industry comments a strongest her with even sit remarks in started to Karen. say our we couple where started after conditions. 'XX difficult I our 'XX the I'll In of we position over history. market the Karen, today and to that with

a coming a sheet. go when became the you balance company, If intent public on to conservative had we we with out back

today, company the well Our became do. when our that like to felt the though to And balance where twice originally at any inventory, is navigate debt you on than impacting year all were own we metric, and is right XXXX, because able we below sheet size more even CapEx designed company look we public. our thing was without when the we we the today,

your Everything is on market. the view predicated of

You're that always view. but always right, you're not evolving

with so have our can. always take combination the with that we strength and And investment business operate in who we'll we view financial

spending. in So XXXX as didn't we any 'XX, constructive. in plans we should. invested looks We defer indeed, our And

But for not on we our will ability will isolation. Martinez a XX hinder days cash turnaround to to This down at generate that in a company were for schedule. Torrance. as impact in scheduled major Martinez, be downtime The

we're a strong So in really position. financial

or on positive, other... we and the changes facilities the the to work is Karen, I outlook our manage have that with business we market you outlook any the Our always capital the do know market have and don't capability but our in if the exists. changes to conjunction that degree our

Karen Davis

triggers net Well, debt-to-cap I us under other At we the fourth our at XX% were and over few just you've Matt the would to billion sport mentioned. of add, quarter, a well ratio. as ABL past $X.X balance on underlevered seen obviously, the rely end available both sheet as We've that share the quarters, our operations repurchases. got

see generation, market again over on priority we're and as going as share top improved a we the forward, reducing refocus normalizes Going to cash leverage repurchase.

Matthew Lucey

a core being are we're us intend business, is underlever to hindered strong the tenet are running we're And generating It and is and and the this that more by ourselves. of when flexibility how markets when without the of luxury difficult. gives constraints business that we cash, financial managing markets

Operator

from We'll take our Sandler. Ryan next with question Todd Piper

Ryan Todd

a Maybe on follow-up, follow-up, Martinez. X

an second to switch you mentioned of to question, impact. Can early us the update XXXX. able we think provide this the of pieces book the What walk you at over insurance Or early an -- Can those offset? some say a And you or be offset update, point? dynamics? and view there. quarter, impact that through approach on offset it approach You credits the insurance not you lot in might that the there's you then should on in any how part if diesel, of if of the you how think first moving XXZ is help gears have sort maybe maybe you'll a too how Maybe your [ you renewable works? market might of it the ] as might book of here

Matthew Lucey

Sure.

absolute So we've to as get regards But I'm in of insurance, not procuring company, going it. property insurance. to into been a specifics

proper we as tool. risk So a it's management begin,

insurance relationship with providers, with every community, closely year. We and we've worked very insurance the them very good with have a

and absolutely all I is and we too providers, to early so proper happens, you it's the with And proper working on be the tell them as coverages have can assess with speculate we'll we that. what

So a very, insurance that comfortable I funny feel thing. very and is pleased

you're and that's you don't you in that for there need it, happy, time the fact You hate but like it this. paying a need when you hate it

static, So in regards to obviously. is R&D, nothing

The incredibly the think by that 'XX The previous indications, guys imports over country. biodiesel got getting developments XXZs can We have ] [ watch. less of administration's all below are the a guidance. lot was I interesting be the to although headwinds. into

how manufactured. the to So set from guarantees. sort the RD stocks needs XXZ I But longer the market think XXZ would than probably over is there's the [ no ] economics I will guess, of the time, last RIN will be for much RIN be

We've bring But the I come them, back up bringing venture. in similar up outlook SBR to -- our and been RD lockstep with marketplace. without I partner. our can't on Similar commitment to

we're partnership So have. the very pleased we with

look pretreat marketplace we well as marketplace, the Gulf ability we're think location top be our I it quartile positioned in to I as a Coast, evolves. think our at the performer feeds, to the in

records. create. to for unclear language and accounting the credit to regards books use don't we Karen, have I the that we're XXZ you producer going that or at time we In have... tax if publish language, know our We

Karen Davis

announced, do are expect accrue will our to we right Similar that some -- right. peers the credit available based to on the have guidelines now. of that's No, what we

Operator

question next from with our Manav take UBS. We'll Gupta

Manav Gupta

do comes think see out? have peace could a theoretical it the refiners. question. you which PBF VDO we the we ] do that go if product widening, Obviously, can in. Ukraine in crudes also Russia, heavy-light the is you will could between of line between heavier and down say scenario, market. quality to of discounts, more come multiple More for let's market, But and impacts peace happen U.K. wider help Do can to what come Russia, [ complete have But a more a

Matthew Lucey

but do, I to have Tom. I ask

Thomas O'Connor

question, of that peace, regards wider the speaking, way should certainly catalyst broadly what really, the I terms a With presented in are I it's in mean, terms that think a to be Manav. it peace but the probably of differential. light-heavy the you Thanks, Yes. at for point,

years. market we there's the watch need I I that But Pacific clearly, last in as plays particularly Atlantic over has also factors think a just mean, rushing today. really lot several beneficiary in that Basin the think to primary the of crude because of out. the I the Basin been

the as of catalyst through countermeasure for a certainly terms we've and wider coming resolution But sequencing. the vacuum, positive in action, some aspects some that another or reaction a to policy that would a gone think, in that we there's things for every see I of things light-heavy. some be other

Manav Gupta

Martinez go of Good. I the you when Perfect. does My the West quick Coast of at Martinez, which to from the run follow-up maybe ask was wanted a you did if assets Coast over was a or margins? you on buy X couple to of in actually capacity this can to there you hard processes West wanted down, thought down, X it. In assets spike even benefit Torrance when scenario, nameplate from benefit is

Matthew Lucey

of Torrance refinery facilities as and market exists. is to that maximize the at all will we do running our

said, is are I needed desperately and in California. producing as So Torrance is there products which

Operator

Neil next with We'll Mehta take our Goldman question Sachs. from

Neil Mehta

macro, on And Syncrude a barrels, some barrels. including import you Canada guys Staying and waterborne environment but tariffs. the in around do dynamic very obviously, also

So just framework through ripple And your using evaluate to potentially dynamic perspective of you're any the could how system? situation? a that very this

Matthew Lucey

Dynamic other comment some to geopolitical and Mexican are tariffs the seem or Tom it phenol different that a ] it's as does it well. or issues, whether cudgel being tariffs that imposed I'll of seem the is, to immigration ask broader in things. to than But [ other be be to Canadian

rest a getting even were these ] obviously, from was Canada. [ there the duration the made. tariffs to that because how of be those person are getting the imports does clearly may of before, different recognition, advice of mark implemented the was X being But tariffs -- of he's be a seem when so into than of sort And oil different. isolated It decisions these a

chuckle the are I'd of sell to of said, oil are in Canada a bit less obviously myself. don't U.S., in Mexico the -- to Mexico to needs terms a [ maintain flexibility sort because different. being stay and their ground. and alternatives having Canadian if Midtown Mexican it ] with That to standoff of going Canadian is it's they the being has more much access to more water. refineries Canada throughput.

Canadian to time on note, movement, size, it that the be any I I'm sure. happens, there's going do important some that of so have if the to it's the think will And disruption impact dollars. respective on throughput, side, it certainly

So looking of on if is the trade. if post-currency sort a producer, you're at what you're net it Canadian difference a

will But dynamic. threatened supposed Tariffs being and that crude, then where, on Monday obviously, a a postponed. Canadian there it period off be that Canada interesting when event the And the basis later, imposing be are and tariffs Mexico. but be to an which daily X initiated tariffs hours bullish and in Mexican We went on implemented TI Chinese table, putting -- on X-hour by was U.S. was a and to varied. tariffs going was tariffs on the were were

So got Tom perfect every for there's aspect the on we've nothing over this. hand I'll but to team. even of of -- sort moment, it static a

Thomas O'Connor

Yes.

Matt screens that certainly as very -- -- outperformance figuring bit of more right, I certain market I markets a [ think, a terms reaction, gave had certainty. just waiting crack terms would didn't wholesome the The that respond sort GI products observable terms cash the of sort market little in have in is a a as very Monday, out key strong of particularly response ]. the on terms just to were of how In of crudes, of indicator I nymex markets respond I staring the in in for think response saw in are on in areas waterborne people outperforming terms -- time we there. to at was that of which think mean,

add when and think of at crude fundamentals got I specifically mean on today, market is you're mean are situation back been basically -- year, of maintenance still low of there. But the mean, to does lows. the drawn. but market in low I seasonal do the that coming are they're terms I get a off towards the X-year the moving a the the you not is the and Matt's Products I X work I of you're TI tariffs, that it you was. spreads of have sitting think basically mean, really the think tariffs, marketplace in -- of has effects that in the of runs, today, get I closer I point some where in look right? saying I is and of X-month have don't anything in reflection reality you've period, to now likelihood And building have the we if the so is where to -- response terms do. to else a we

Matthew Lucey

is I I in would, add way, of look any or don't The shape the I the rest being only at form. PBF relative see U.S. thing else as industry to disadvantaged it, in

Neil Mehta

therefore, net What's That's flip shareholders net that debt great. we sort on good you, range. say or you buybacks. -- -- sheet, decision even to cap deleveraging to for leverage And the delever a get pointed though capital follow-up to to point Matt, level metric is to maybe of of you should return but is this And Is Karen, of you for pretty you is back that when be form to EBITDA bit before balance at want the XX% framework? priority, in buybacks? the for kind the that's debt maybe that from either the is to of to looking

Matthew Lucey

I give for you us X would it think be impossible to metric.

a the current running. combination outlook market assets term short we're medium in to in, of the the -- term. What are forward how I going our it's think

also we'll in for balance But that includes our the is That best our and up really, to we our company intend the balance do of set equations investors. of what best can shareholders, it as lot strong and really of to You ability. bowl sort have a of to different sheet, a soup. returning includes we cash

Neil Mehta

debt net it? the maybe way cycle asking through of target number, a there Is other

Karen Davis

And maybe investment-grade be goal would question with I as to we credit the level XX% could answer Currently, we're to that could is think been high goal our would has the maximum. very what as maintain we -- which -- as less see XX%. be always be than conservative. our at say I'll metrics,

Operator

question John next come Our will with Royall from JPMorgan.

John Royall

XQ even from for $XXX So capital flows. ex half came items to We plus looks ops, cash I relative cash preferred was as working other like noticed any to in little of hoping on tax X [indiscernible] major my on the first million of call just the first [indiscernible]? a out It late drivers. question there's the earnings. for some color and

Karen Davis

Yes.

I of think X drivers. the you on hit

payables The other to overall is X is and -- decline the this was X net -- overall main inventory. in just our an and related

forward But also that a pricing. QX, of capital $XXX point hydrocarbon would to primarily headwind. payment working I did which driven million make into in going will is be out TRA a Looking provide by we January,

John Royall

on Great. plan. then improvement business the my follow-up is And

And plan think the kind expect of bit mentioned in year? think any opener around Martinez should in the quarter, And million key first do energy more but maybe half outage half? I this and little detail, a of turnaround. in you impact we to does how second the piece $XXX How about way? the phase gave next versus of the You usage and color some

Matthew Lucey

what $XXX X, to, the comments to run January savings of is as couple I'll pointing said the million quarter it over XXXX. and turn regards we to $XXX Mike. make million, rate of In then a last it's what and

those refineries as our plans fully of it. each support we next made cost-saving of refineries, was each -- year, the through What with processes the beginning execute initiatives, going coming we're we up that and savings. pledge of to when So of implement and beginning our our that we

'XX, course So will be initiative I impact fully this not some of there will be but in don't believe will Martinez XXXX. events savings at the at And the over all. the savings, no, achieved

Michael A. Bukowski

how the the exactly sight we we'll implementation do of said, but XXXX, plans Well much initiative I the line first good really adjusting of time Matt, end we're rate we Yes. account think have we in run going detailed develop and to for every the we prior to be will to a an as hit quarter, savings.

for the And keep savings We adjusting XXXX those realized KPIs, be to that ball. will so budget those cost those things financial will our KPIs our initiatives operating that sustainable. 'XX the operating well as as beyond. When savings continue eye associated we put on and be we targets with throughout KPIs all but new the remain

Operator

next We'll Jason TD take our Gabelman question from with Cowen.

Jason Gabelman

I Martinez wanted if you completely Or could. And that shut it it's to I not facility is to the just go now? entire back right down? the give Is unit a incident, Can down shut clear. meet us any more obligations, color to unit from as need parties to product those while you to And contractual think in what about do the order asset's your was impacted? as third you source down?

Matthew Lucey

All right.

refer was cat shut we to cat units, specifically midst of XX-day turnaround. work a as hydrotreater were front done. of in I that what down potentially regards the commencing being pipe was the to in So in and The

[ ] in PADD X hydro of it's vicinity the the So treatment.

fire, the the entire we As a result take of refinery. did down

completely So is the down refinery now.

multiple And streams. so have you work

and work other assessing then the and on their the it have take will back units what stream, then to schedule. own get X all fire turnaround You on

Jason Gabelman

Got with it. And in customers products commitments terms needing of from... and source to

Matthew Lucey

Yes, sorry. the able nothing all to this a -- we with manage necessities to there's at standpoint, and report. be team, through don't to point. commercial highlight have anything we'll commercial We Yes. From our

Jason Gabelman

was million Jan share count versus that that your year Or noticed drove up there 'XX it And quick Was I just actually XXX I that XXX just X XQ. comp? Got in was related guidance XQ, one. in versus million accounting incentive Okay. then was a it. think to something full that? else guided to

Karen Davis

going to related that's be comp. from incentive potential think to -- dilution dilution I

Operator

from Blair next TPH. Your comes question with Matthew

Matthew Blair

want to to I back RBI Great. circle program. the

rate levels, about about savings, it's can that to a also $X.XX looking your just all that of Could through OpEx million how about barrel barrel. Or And Does I in So out you versus run XXXX $X talk would comes published come the through cost higher. come OpEx? corporate then $XXX think we measure a XXXX that? at XXXX, refining G&A? it like

is might should to as and figure after thought chop this conservative of there So $X.XX, that? be be more a wood pretty

Michael A. Bukowski

in the capital the projects accounting, OpEx, that capital, it all, most terms but about -- to way. of first So through to come program. I would turnaround come think of our refining it's of and it the will going

how previous is way end. terms a which the is beyond would XXXX. program We start. continuous On like of years, in not this is a for to that us I'd consider manage cost, there's but only think that barrel as be over going our efficiency. versus This more will in to new $X.XX all driving per I reliability, opportunity improvement, manage going a how do we This we how our drive well. not And safety managing the to business, innovate and manage things to health including how we that our spill of terms let in we we we

would I first at per So look step the of journey. barrel a as $X.XX the long

Matthew Lucey

team, as promised to them. we But mean are just what focused expectation, in management as and regards we on street. deliver Mike What overpromise say going certainly what expectations to not said are we're is say a we higher we communicate than results we our internal and my meeting what The

thing I other the is this say very, program on. focused very that would So

savings of eventually came to of of tune in. Much existed depth -- the to about time, these we that on achieved different that back tune of go very, you focused We're $XXX cost and savings cost through announced of a back we go-forward cost that a sustainability the very at savings on basis. the If million. cycles the COVID, we to

it but So doesn't return. it's not that once, it's cut and once, cut

Matthew Blair

incremental Sounds well capacity additions this should that good. also growth up pretty And demand year. with mentioned match then you refining

also look PBF that Do strip positive the that think think constructive. be you comment cash the this I at flow forward year? there's a cracks will free

Matthew Lucey

Yes.

Operator

question Your final will Scotiabank. Paul come with from Cheng

Paul Cheng

region? the full Matt, looking a East seems only and should Is be low, relatively I'm That's Coast first when unit. the the your have that we low first anything small expectation that pretty question. why is guidance, turnaround it's like guidance on aware quarter at that year hydrocracker that throughput impact which is your there, how there you for given

think to to you lot Second not question I'm crew. that ], -- the tariff, for tariff, instead, but ask a [ that you same Toledo the going somewhat of but about run what related

you OpEx? some trying that. yield, and If impact understanding domestic to Syncrude better refinery light with how get oil, on your throughput that Just replace does

Matthew Lucey

Yes.

Okay.

So regard to your question was first Coast throughput. East in

the throughput I existed. bit think on back is that a market of is has down the that the

we based throughput on throttle come in throughput and market, a weaker operating can in down. obviously, which so we're the market And

certainly nothing certainly much standpoint if a that's of or possibly nothing there, capture market precluding as the us. as is there's can. So we'll from it work structural we And

not is ability it In do region the some regards I we to and the a have the have in there element all by pipelines ability, the -- replace standoff before to barrels -- Toledo, refer have capacities simply of Mexican been does our domestic pipeline in reversed. as terms to their anyone Canadian nor supplies,

going But to to Or refiners uneconomic the consumers And not pay. ultimately, run. the and We're so degree there's producer for market could manufacturing not the there the business the down in is that fuel of a -- of tariffs pay is run. or is push to are gonna to throughputs. element some

-- regions. all that there said, And the but if incredibly to market, in needed like an balance situation. it's the So will produce itself the is dynamic are put tariffs I products in

Paul Cheng

do and if decision? and your available light X Toledo year. is going for that So you're technically rate. if will the my in the that that first that can available is first the that be that you and quarter question oil replace available -- in to you capability end the How up, throughput If on also trying is that make Syncrude on yield And understand East that particular indeed to run Coast. impacts product case. what I'm domestic is Matt, the

So previous lower year will the guidance? be we year, rate assume your full full run than

Matthew Lucey

No.

impact. would to market synthetic be of said, any or but there the able PADD you're on which crude, you to optimized the PADD deliver not the sweet PADD. no Toledo. you Canada, the mean think the In think question regards impact. ], happens, Toledo to a acts into specifics for have theoretical, a or stretch a have yield what drive extent optimize by significant any U.S. yield and lease and what of Chicago the in exactly to or all I As has the that's to any To be your other crude, I there were for crude crude around always unlike domestic specifications way, pad, throughout but throughput Toledo refinery, X. it's you light be There's these I true the is of a qualities yield Toledo out other any really Toledo, impacts, change to to down. your slate if you like We [ assumption what would other run it's running throughput refinery not is will throughputs we're goes. in and it's be get by will are, X make not will impact that not for degree too difficult -- optimized yield limited

Paul Cheng

can a question? Matt, since I'm the last sneak caller in I here, third

Matthew Lucey

you. for just Paul,

Paul Cheng

the On assume insurance, tell you have And what's insurance that in deductible? you us the can business I interruption also here.

Matthew Lucey

Look, I specifics on into get to don't want insurance.

manageable as place. We said in proper have all And have insurance a the deductible. before, I we

Operator

to We for Matt the question-and-answer session. call our Lucey have reached remarks. end turn will I the closing of over

Matthew Lucey

to much. in the We with greatly your you each and very appreciate today look you forward Thank participation future. communicating of

Operator

your lines This time. concludes today's conference, disconnect Thank and you for at may this participation. your you

PBF Energy (PBF) 13 Feb 252024 Q4 Earnings call transcript