• Adjusted Net Loss: $1.50 per share.
• Adjusted EBITDA Loss: $60.1 million.
• Equity Investment Loss: $29 million loss related to St. Bernard Renewables.
• Renewable Diesel Production: 13,000 barrels per day in Q3; expected 16,000 to 17,000 barrels per day in Q4.
• Cash Flow Used in Operations: Approximately $68 million, including a $25 million working capital headwind.
• Consolidated CapEx: Approximately $153 million for Q3; full-year 2024 CapEx near $850 million.
• Shareholder Returns: $104 million returned in Q3 through share repurchases and dividends.
• Share Repurchases: $990 million since December 2022, reducing share count by over 17% to approximately 115 million shares.
• Cash and Debt: $977 million in cash and $1.3 billion of debt at the end of Q3.
• Dividend Increase: 10% increase to $0.275 per share.

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Release Date: October 31, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• PBF Energy Inc (NYSE:PBF) reported strong operational performance with no planned maintenance or material unplanned downtime during the third quarter.
• The company has identified opportunities for $200 million in run rate cash savings by the end of 2025 through a business improvement initiative.
• PBF Energy Inc (NYSE:PBF) returned $104 million in cash to shareholders in the third quarter, including $75 million in share repurchases.
• The Board of Directors approved a 10% increase in the regular quarterly dividend to $0.275 per share, reflecting confidence in the company's operations and outlook.
• The company maintains a strong financial position with approximately $977 million in cash and $1.3 billion in debt, providing flexibility to weather challenging markets.

Negative Points

• PBF Energy Inc (NYSE:PBF) reported an adjusted net loss of $1.50 per share and an adjusted EBITDA loss of $60.1 million for the third quarter.
• The company faced a challenging market environment with weaker margins and poor crude differentials impacting refinery margins.
• PBF's equity investment in St. Bernard Renewables resulted in a $29 million loss, with lower-than-expected production of renewable diesel.
• The company's environmental liability increased from $429 million to $474 million, slightly above guidance due to extended payment terms for cap and trade payables.
• Market conditions remain cyclical, with ongoing regulatory and political challenges in California impacting operations.

Q & A Highlights

Q: Can you provide your thoughts on the regulatory changes in California and the impact of a competitor exiting the market? A: Matthew Lucey, President and CEO, expressed concerns about the regulatory environment in California, highlighting the state's involvement as a factor in high gasoline prices. He noted that despite industry losses, the state imposes significant costs on consumers. Lucey emphasized the importance of maintaining competitive operations in California despite these challenges.

Q: What factors contributed to the decision to increase the dividend by 10%? A: Matthew Lucey explained that the decision to raise the dividend was based on a conservative and stable approach, considering the company's financial strength and medium to long-term market outlook. He emphasized the importance of maintaining a reliable dividend through cycles and reviewing it annually.

Q: How do you view the supply/demand dynamics in California, especially for diesel? A: Matthew Lucey and T. Paul Davis discussed the complexities of the California market, noting that while renewable diesel is significant, the state will rely more on imports due to refinery closures. PBF's focus is on gasoline and jet production, with minimal impact from CARB diesel dynamics.

Q: Can you elaborate on the $200 million cost savings target by the end of 2025? A: Michael A Bukowski, Senior Vice President, outlined that the savings would come from energy reduction, maintenance, and capital projects. The initiative involves optimizing operations and improving efficiency without relying heavily on large capital expenditures.

Q: What is your outlook on global heavy/light spreads and their impact on operations? A: Thomas O'Connor, Senior Vice President, noted that the heavy crude market peaked in strength due to seasonal factors and OPEC+ actions. He expects the market to balance as more oil is introduced, particularly with upcoming turnarounds and potential OPEC+ adjustments.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.