PBF Energy Inc. PBF reported a fourth-quarter 2024 adjusted loss of $2.82 per share, wider than the Zacks Consensus Estimate of a loss of $2.68. The bottom line also deteriorated from the year-ago quarter’s reported loss of $0.41 per share.

Total quarterly revenues declined to $7.35 billion from $9.14 billion in the prior-year quarter. However, the top line beat the Zacks Consensus Estimate of $7.25 billion.

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

The weak quarterly earnings can be attributed to lower throughput volumes and a fall in refining margins. However, reduced costs and expenses partially offset the negative.

PBF Energy Inc. Price, Consensus and EPS Surprise

PBF Energy Inc. price-consensus-eps-surprise-chart | PBF Energy Inc. Quote

Segmental Performance

PBF Energy reported an operating loss of $362 million in the Refining segment against an operating income of $26.6 million a year ago. The figure also lagged our estimate of an operating loss of $52.8 million.

The company generated a profit of $51.7 million from the Logistics segment, indicating a decrease from the prior-year quarter’s reported figure of $54.9 million. Our estimate for the same was pinned at $55.6 million.

Throughput Analysis

Volumes

In the quarter under review, crude oil and feedstock throughput volumes totaled 862 thousand barrels per day (bpd), lower than the year-ago figure of 878.2 thousand bpd. The figure was below our estimate of 869.4 thousand bpd.

The East Coast, Mid-Continent, Gulf Coast and West Coast regions accounted for 32.6%, 17.5%, 17.2% and 32.7%, respectively, of the total oil and feedstock throughput volume.

Margins

The company-wide gross refining margin per barrel of throughput, excluding special items, was $4.89, lower than the year-earlier figure of $9.88.

The gross refining margin per barrel of throughput was $4.342 for the East Coast, down from $11.29 in the year-ago quarter. The realized refining margin was $2.87 per barrel for the Gulf Coast, down from $10.89 a year ago. The metric was $5.85 and $5.94 per barrel in the Mid-Continent and West Coast, respectively, compared with $6.94 and $8.93 a year ago.

Costs & Expenses

Total costs and expenses in the reported quarter were $7.7 billion, down from $9.2 billion in the year-ago period.

Cost of sales, including operating expenses, cost of products and others, and depreciation and amortization expenses, amounted to $7.66 billion, lower than $9.05 billion reported a year ago.

Capital Expenditure & Balance Sheet

PBF Energy spent $230.5 million in capital on refining operations and $3.9 million on logistics businesses.

At the end of the fourth quarter, it had cash and cash equivalents of $0.54 billion. As of Dec. 31, PBF had a total debt of $1.46 billion, resulting in a total debt-to-capitalization of 17.67%.

Outlook

For the first quarter of 2025, PBF anticipates throughput volumes on the East Coast to be between 250,000 bpd and 270,000 bpd. In the Mid-continent region, the figure is estimated to be between 135,000 bpd and 145,000 bpd. The Gulf Coast is anticipated to report throughput in the range of 155,000-165,000 bpd, while the West Coast is expected to deliver between 200,000 bpd and 210,000 bpd.

PBF’s Zacks Rank and Key Picks

Currently, PBF carries a Zacks Rank #3 (Hold).

Investors interested in the energy sector may look at some better-ranked stocks like SM Energy Company SM, NextDecade Corporation NEXT and Range Resources Corporation RRC. While SM Energy and NextDecade presently sport a Zacks Rank #1 (Strong Buy) each, Range Resources carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

SM Energy is set to expand its oil-centered operations in the coming years, with an increasing focus on crude oil, especially in the Permian Basin and Eagle Ford regions. The company’s attractive oil and gas investments should create long-term value for shareholders.

NextDecade is an emerging player in the LNG space with its Rio Grande LNG project in Texas. As demand for LNG continues to grow, NextDecade’s strategic investments in infrastructure and its planned liquefaction capacity provide strong upside potential. With the global LNG market expanding, the company is well-positioned to tap into the increasing export demand from the United States.

Range Resources is among the top 10 natural gas producers in the United States. Its diversified portfolio is spread between low-risk and long reserve-life Appalachian assets. The company’s extensive inventory of Marcellus resources with low breakeven points is a significant asset. With expanded LPG export capacity, RRC is well-positioned to meet the rising global demand, capitalizing on natural gas' role as a cleaner-burning fuel amid a low-carbon shift. 

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