PBF Energy (PBF) 5 May 232023 Q1 Earnings call transcript

Good day, everyone, and welcome to the PBF Energy First Quarter 2023 Earnings Conference Call 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.

Rob. you, Thank welcome and call. Good to morning, today's me our President; are members our Nimbley, and Tom Lucey, Matt of team. CEO; our management Karen other With several today Davis, CFO; our XX-Q of filing, on Copies website. release earnings and our including information, are today's supplemental available our

getting covered press direct our attention predictions laws. release in our that made this described by cause periods, safe our discuss prior like expectations, and to press factors excluding the release. express to in actual are forward-looking be safe future to are call could or the with we or those our statement harbor those of we items. provisions will contained today's filings I'd under federal that today, management's from the Statements started, including the Before results There intended with securities results your harbor in expectations company's our the on special differ to Consistent many statements SEC.

non-cash in consideration. by $X.XX an release, related of the first net share income we net In cumulative the to results. million value in or quarter fair $XX special changes items items primarily of our special described after-tax contingent today's impact The per quarterly increased press the of approximately included amount

Also our is included in guidance today's press to quarter second release operations. information related

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

today's on mentioned measures supplemental please release. in call, non-GAAP provided any today's refer of reconciliations press For tables the to

turn now I'll call Tom. over the to

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

on phase PBF's providing thoughts, yesterday's a some to I next market want commenting of announcement take Before moment the quarter to discuss life cycle. and on the

team. been next role become I Chairman X, Executive and a the rest it over shape, challenge. executive turn Executive decade over The Leading and of an will to As PBF Matt the in PBF's Officer. Matt time and has honor, of is last has of the future Lucey never of assuming and Board, be been the privilege company to the rewarding better will Chief the July

and develop the as value-enhancing PBF of successes and thank Thank you. I will also to identify Chairman would to PBF, strategy whom serve for Executive of would I none employees without with to work our Matt like initiatives. continue the company's be future other possible. growth the

Regarding first results, was quarter quarter strong PBF. the another for

our more followed top We The and cash with rewarding safety operations continued finished reliability our quarter strengthening our is it of balance and by than footing. But financial the debt. sheet, our and closely remain firm maintaining shareholders first priority.

markets respond the follow to and demands. consumer Refiners

for by calls see higher and utilization refining market customer hear to a continue supported sustained and We demand. low inventories

fell a of Hub The gas Xx, U.S. the refineries a providing $X.XX was million. Futures ended advantage. per started European million at the but in to of Natural Gas year prices it quarter Henry still mild premium Hemisphere. winter prices domestic Northern the one natural with at and competitive command Gas $X Natural 'XX, per U.S. well as X Btus, to a 'XX

medium quarter. and Crude Plus grades, may expected somewhat differentials. for heavy The be are narrowed cuts differential OPEC to was which supportive the compress further production over

than historical differentials narrowed, patterns. wider having Although remain

season. by in Similarly, also for despite moderated have for the levels. 'XX supported A mid-cycle, XXXX margins recent stronger the distillate fuel a from summer key declines, remain jet well is refinery above gasoline, and to but theme recovery demand driving

which our our commodity from in call the increasing at demand products predict and of continues same utilization to the are of gates, refinery volatility in assets. intervals frequency. the we challenging the are our market moves tremendous At a for the broader This future time, growing timing stable to makes higher it brief, we markets. In of experiencing amount for at seeing

returns market for continue volatility-driven will expect strong generate to business. dislocations We our

Matt. to over With that, the I turn call will

your Thank the decade. Thank and you, over you leadership Tom. for last mentoring

we'll as new feel in shareholders I the as very transitioning and fortunate Chairman. Executive will X our grateful roles role company as that months, leadership next from well his Tom's While be continue the over to benefit

Silver from safety, X top number percentile PBF to the In in moving to position. we are that our there safety U.S. with awards receiving performance X with recognitions can the the a in of and on petrochemical financial achievement Martinez our refining of pieces reliability safety business AFPM beyond commitment aspects safety focused and XX refineries PBF's the and remains Elite honored of control, our our the market were of are our business, In Award refinery our of the and facilities operations PBF's of control. given

The quarter were QX maintenance first Eliott, winter results downtime from and effects was the with strongest due PBF's the in impacted the Operations to in storm planned unplanned first quarter activity. lingering coupled the extensive by history.

work and City, soon Martinez. which up We be wrapping work will much performance at outside be coker clean the larger and the have But activities, a on a completed turnarounds turnaround runway. very ongoing operational hydrocracker Torrance. QX will Chalmette these in at alkylation QX Torrance. hydrocracker and There Toledo, in to of lesser minor will a extent, unit impacted very and be currently the should Del at FCC by we

to of St. that over are to turned project the diesel renewable aspect project we renewables complete We the are and the been that has mechanically happy also report progressing on operations. and unit, Bernard are

RD and comprises supporting The unit ancillary hydrocracker the repurposed infrastructure.

should unit and introducing oils, to are this in stages primarily month, be commissioning the now. vegetable feed corn We oil. RD distillers We the

June. completing are pretreatment complete work of that We expect construction still unit the in and be to

pretreater CI feedstocks transaction later in We ENI quarter. close running. JV to expect expected is third the up second or to lower once is with and The the introduce additional

certain items We for are approvals closing. are only regulatory the that awaiting

to of of energy. On expect current supply critical the and to and the in alter the volatility like affordable ratable regulatory front, has policies ensure new address This continue market dislocations. all persist. the the create to and commodity and environment turbulent, policy several marketplace. reliable, the policies Much most component ignore seen None the the we will markets, of necessity months energy prematurely first the attempting XXXX, these and positions of increasing we've is to

Robust market to PBF's of altered opportunity conditions enabling a exceptional has generate has financial PBF execution results, with trajectory. strategy the that provided

X a balance the navigated Over years, achieve sheet unassailable PBF past sector-leading metrics. with financial to stress has financial

We potential increased be doing balance are our results ratings to capital shareholder our improve, maintaining our operations committed will of credit and our reliable we demonstrating the continue and returns. safe durability By to and expect of for operating and the sheet will financial cost will reduced strength transformation strength. support while through-cycle so,

that, turn with I'll And to it over Karen.

Matt. Thanks,

continued the company, the of improve balance strengthen PBF by and We million. gross financial position environmental notes reward we further in with shareholders. approximately another quarter, redemption the our $XXX sheet first by credits work $XXX to the the of outstanding million to February, debt reduced our payables our During and logistics our related reduced

$XXX have we worth shares, date, bringing our under count almost repurchased million share shares. To million PBF outstanding total just of XXX to

shares We was eliminated in PBF dilution fully transaction of to the the in priority buyback the have effectively XXXX program. issued now share of That the the acquire first Logistics.

by $X million billion. existing our we increased to repurchase Additionally, authorization a of an $XXX total incremental share

$XXX $X.XX million quarter, for over For more the corporate, related just quarter of development renewables for adjusted per for million approximately EBITDA Louisiana. Logistics $X refining first million. $XXX $XXX includes the million, the $XXX the and net Consolidated adjusted of St. in first PBF than was share income CapEx we continuing and which million reported of and Bernard to facility

$X.X most balance our management. recent quarter, million returns XXXX, to our commitment Taking and into billion reduced with we continue in account by and investors dividend prudent and repurchases. into approximately Heading almost sheet through to our gross rewarded debt demonstrate share liabilities our we $XXX environmental

the of debt the in business. to liquidity serve cash with needs We sufficient have excess of

heightened guidance. In of above we given to plan a to the market maintain near medium previous term, cash our volatility, level

be billion respectively. We in and close Said $X expect to term. differently, debt gross near net the expect debt in to billion our the maintain $X.X range, to to we X cash

we believe many exceed meet metrics. credit or we investment-grade Quantitatively,

we continue should streams online. power, earnings demonstrate as to comes refinery adding diversified Our durable SBR earnings and are

targeting rating financial sheet to agency-driven balance and exercise continue metrics We discipline, will costs. robust sound

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

Instructions]. [Operator

America. the Bank question is Leggate first Your Doug of from line with of

Doug. This is actually Kalein for

like views brings of you, enjoyed year. lot, the Tom I'm and listening to the market other both well. me benefited my my me here. and I sure Tom, over particularly to first to have your guess people Firstly, Matt. I'd that as congratulations a I It's question also really taught And to

new conversions looking increasingly of outlook RD impact My Oversight first market attractive. and in California California. the startup year, market can the on the and touch from is Wondering TMX like It on they're calling at the what if that's seems the on you and the question going address several balance, setup between that is potential the next destock evolution Committee. points, the in

you. just make the of remarks, for many comments Okay. point Paul it And your for company some I'll has been had you to turn there, Paul to you X Doug, and them. Davis brief person on or over I'll thank good California, points X because and kind the on and morning

But because jet cracks Certainly, do the the as driving California now, that by out we stress seen We into to expect we've and under we season. move will up demand do in renewables. distillate in country strongest expect the some gasoline be led pick right regionally California gasoline. in of

Marathon already Rodeo going already exacerbated go the California. -- by year, tie-ins that being be and time believe that are to and further down we Rodeo being to decisions the as market we as finish some going with then some is project, that's in be But made certainly with future. being down end mentioned, a to California of into the their by sorry, down probably I'm you of the the policy And stronger coming to

policies comment natural Some what a of that's cost of to stuff? and the adding seeing in don't have result drive the have supply the Paul, why chain on throughput result we're these of and what business, the well CEC tends prices. there you negatively, to the impacting intentioned,

marketplace today right. we're is and All that demand. normalized 'XX the seeing 'XX very versus Well, throughput in

shutdown imports. supply. with with that's said as deal California. Rodeo way them problem. the That's have have much supply bigger attract They exacerbate So to you the pretty It that a issue a really of supply for to normalized to going the and we no a needs in there's marketplace speak problem, impending

barrels XXX,XXX jet come and The above a to is around at day are barrels in a import that it to fuel XX,XXX , this volumes right XX,XXX on behind day. need

to for impending supply the challenge population. California is the you attract enough do that's how ratable stay balanced for So

that sure some With they're regards cleanup going legislation CEC going to We're to bill to next them. to We're rule-make not the to meet got the a week. for CEC that and bill. to provide build rule-making legislative going can through or actually able be with make a they've They the be work. that the input with impending the have progressing

the to way not more it's it's now, Right related, going work for.

of we'll be with the going next for to the manage It's amount they're that be them able seeking to others. week. to from the So information meet quite challenge state

Just Trans Mountain.

like quarter some Los time that in That's and Francisco first its Trans the looks pipeline, material start that In we to all in of the the San It's of Mountain to has of not to has sale what 'XX. And to most, moves. point way slated 'XX. Angeles it . for market up half go if the transpacific expect on lightering right second by

positioned as we're of in a for to to production. California will be some be think going that outlet good I others

of question. Pacific Do addition Does guess your you're in I to that to feedstock heavy cheaper? see you a costs what just relative on advantaging WCS procurement the crude it the put today? seeing point make Basin the finer barrels

be Yes. case. to We the believe going that's

to in being then things can to the we increase we're got looking West that lot got that the Coast we've activity California, You've what WCS particularly and a volumes exported. and we refining are run. our at system of plan Martinez to moving rather X in And where do significant,

is some to indicate The down other refinery. Houston. going the shut course, And to heavy is thing by to that time of in LyondellBasell going that still refinery that, the the apparently year, a happen continues is crude they're of that end

side. So the there tailwinds are heavy potential crude some on

on follow-up turnaround. Got cadence is the it. My of

quarter. quarter what year turnaround or But some of first was looks some like heavy next is up, the you thoughts The maybe that filling you obviously over wrap offer work on here these two? over here outlook the second the very as can and into

Sure.

absent QX, starting runway is certainly. I to what QX to quarter Del at disruptive hydrocracker end should be residing minor earnings. work first The in up the shortly. in have heavy. Torrance. the very We of very not There and rest But fluid of bigger coker very be is was work just a going at in turnaround So the really is City Torrance. clear, June It too at described, wrapping

-- through Torrance should year. all for of So very forward the a of the this other of refineries have the end point outside our from X clear runway

we're And to units high-margin going normalized periods. going the were to to hard. else forward, safely, We And a when extent, most with schedule. certain run already the from next industry what on, get obviously, in done. to expect. everybody had pretty we turnaround a but steps we're these continue We put for point But to and normal that took a paying like in that XXXX we But than to would be little we or year. that work to underway bit expect of higher maybe back

Gupta Manav with is next Our of line question UBS. from the

a heavy and have a Canada, on is guys. where good a view market very that buy globally lot informative sour on you Congrats medium of even crudes you from just crude -- sour and I heading. quarter,

what us help Canadian some an but little a then OPEC crude BP Venezuela, some from seeing projects, understand barrels, incremental So there, bit out up ramping cutting. coming you're

moving, and in So medium heavy help both spreads the term? near us where understand are the

your I'm light the in to first weigh heavy said opening in. seen to part Tom on ask narrow certainly, of I comments, going going spreads it, O'Connor we've the to But and my as I'm in take question.

their Some be due that's out heavier came of and that the and OPEC to medium that's tighten, or to a fact with barrel. a going cut

cokers, a and particularly, and you a would when penalty the decrease -- if flat or penalized that you medium you try don't don't, penalty decreases. to if more run when basically, narrow the medium crude, some is dips have we Because price price. But with to do. comes there's a thing get other in running as a you you're heavy if the And crude a then flat going expect down

is discount. much not as not a discount. Propane of as much is of a

narrow because bit production to wider a to them continuing expect Tom, in. the But we said, that's would that that dips being would are heavy quite light you So there, of than you the see norm. historical add? are

basically over the of think, a mean, comments, certainly I to with I lot there's there's Eastern Tom's deal sort that consuming -- is the particularly, I basin are Pacific add. to that between the versus think only I Russian fact it in people in the I cost the crude think, the mean, kind I'd have has discounts well. summarized at that that, don't market a add are indicators. or crude Basin, really thing an I really imbalance disruption of people paying market

So some way finding were certainly, the out coming normalize to there things which mentioned, that then When more bit it saw And U.S. of that as you the cuts. this think, of it of point marginal seems growth touch. Plus their barrels, Venezuela is a are exacerbated Coast. producing Gulf is of certainly certainly some coming announced, at like they the U.S. a we moves has, OPEC like feels just the And little I out

here Perfect, job reliability. is, done guys. up a of good you've the improving follow-up One years, assets over these quick the fixing and very

items So in you our caught a in cost the X eye. West the much was Coast. op are One small better high on It your little seemed quarter. generally,

And are down again. have good hoping it a asset. we So then Mid-Con, tapers you

during happened us the understand it's asset. quarter? So a what exactly just generally, very good help Because

then in. in Coast, the Matt weigh West out natural gas Yes, really I'll the start West Coast. the and on op cost blew Well,

particularly extremely it across the first high. natural But weather Northern of was was Some country. that high the entire gas quarter But related. California, in was in

and from refinery us very but to which storm come Toledo, certainly we back call. that what that gas prices machine, badly hit good costs. hit Those come a Toledo norm. was is on back operating So Eliot, Winter

eve Christmas The freeze.

Yes, go ahead.

You take it.

happened that downtime unplanned on Chalmette the Toledo. we freeze eve, and both suffered So Christmas at

a from would management what were result accelerate Just otherwise of mitigated the some blatant unplanned from have a to we been which downtime. that, work, able more

were essentially couple strike quarter take Toledo, to the to of so at impacted had we sort surgical and it able a cat between work, So able which to X. definitively the go there, with cracker the we're we into but

run still that be changed it to the It's nothing for has at reliably So has an to to has Toledo. and But refinery. run it exceptional case.

expectation certainly going So that's the forward.

were thing to natural able turnaround. the down at because mentioned We turnaround because throughput other the least being One Coast, it West gas in have keep down units, but of commercially we on be size try pillar. run I should did able to crude we was a set unit. or was good down. continue execute And big the was prices to a we up a and fill also turnaround to shut But that downstream Martinez, to

So on basis, a unit cost. us on hurt that

line The Todd next the Piper Sandler. of Ryan is question with from

Yes.

out. Let Tom and Congratulations, Matt. me start

the job company team the over amazing last XX and positioning of and You going success years have forward. for done it an transforming the

congratulations both of So to you.

going to the ask the of uses or cash of forward. cash some wanted on I

to You the environmental of reduced run of $XXX call -- million you your through balance reducing year. look of potential kind normalized believe to in a agreement over How of inventory remainder could there's management level? of the course get address. non-CapEx-related liability the back uses the Can by liabilities on calls a that environmental you you quarter. more J.Aron anticipate this cash I much to

we potential the So of between should cash to noncapital-related expect and now what that see uses are year-end?

question. going term, be some the cash, focused. capital. coming execute to quarter near initial up quarter, ended and the program, working funding the [indiscernible] year. on I'm We're the we'll We elevated SBR levels above certainly project capital calls which with There finishing and in is the Sure. In this annual normal forward. second in glad continue billion for cash to you the $X.X Thanks are

we reduce to We've liability. X And to plan credit mentioned, more that be quarters. a liability I are X that range, we the over X next that described you balance X environmental credit likely as would should continue normalized going our a range. to to And see we'll have RINs the expect you to in environmental doing think months liability

Ryan, the RINs. which program with our obviously new is to matches is start RIN going generating up Yes, operation,

to And of the sort so credits. of RIN balance the sinking in RIN we've worked of normalization our new production hard

to, to obviously of And that I other course, the mention, program. was the repurchase up script, we to mentioned, in approval we Karen just the thing we -- Board mentioned got going as

using be that. to cash we'll I'm some do So ahead, opportunistically Go sorry.

going But and on -- think million it go-forward was environmental just to X that that on I X depends remains basis mean on I the prices. to kind is that $XXX say $XXX talked rolls? I of RIN you normal liability, the guess -- months. about I million a

Well, on we I going about million XXX year be a to RVO. as based think consume that's our RINs

million hundred depending yes, it's So of a price, dollars. on couple

Okay. your on and mean gears. you remain distillate Can And extremely particularly Northeast maybe might markets for of areas the what in season? X. you're what in then talk switching inventories operation, kind PADD in market tight, driving gasoline of and in about that dynamics Gasoline particularly the we seeing head summer as

to short demand that, wholesale very Paul ahead, Go Paul. demand remains ask is handle strong. I'll as answer

coming driving are inventory season. around PADD stated you positions mean I X Yes. into lows. X-year in We're

[indiscernible] a starting show Our pretty to are bit. good off

run right from XX% Coast above last now year up the wholesale current year-to-date the is and is Our first rate XX% business is quarter. in East

season into anticipating and country. summer, strong So going up the be that to we're across it's the really shaping a

of Our with from line Royall the next JPMorgan. question is John

Matt. to and Tom Congrats

on spend about project. a I So bump SBR full did notice the think, on we million $XX of,

context, bringing be in have just the right. helpful you're be on less plus would somewhat that we that it million, spend But in, Now it's incremental any if color I would realized broader material. $XXX

pleased on drive we're well, And -- down do. small was with time. we to getting projects short There the perfection with a although to strokes. You we're try not to delivering increase,

been the this month. And now. commissioning turned over in So operations. to as expect They're feed it unit I diesel has in said, we fact, renewable

to The much so or done work but there. pretreatment get is unit, another there's of the done, work of about month

rise in the the on to and well while a expect turned bit getting hand said, And project be pretreatment the to was So with fully you like budget, I operations I disappointed facility, in towards is June. over end. we're the the

then maybe on Great. allocation. follow-up just And X capital

moving SBR. that. like of the environmental of coming some related and things pieces inflow about to have talked But You million $XXX of in liabilities you this

Your after the even of a down net paying debt chunk environmental negative good liabilities.

you And talked on debt net and X also staying near authorization. about increase your

expect that go can about we correctly. $XXX But generally, most shareholders we're like buyback. make I to want back seems the just sure million it via to thinking that of So to

further as have we've priority. our time, saying Well, that do address some the And balance some initiatives balance sheet. do sheet our could we been for we is additional of first strengthening

agreements, mentioned the then, to some of we require had or also payables the long-term You quarters could reduce potential of reducing next going over debt retiring financing and cash. environmental X course, inventory X is

And think that then through program. returns to we opportunities we potential expect also our to continue come the and potentially some But repurchase share cash future increase for and way. retain might it's dividend shareholder prudent

line The the Goldman Neil is with from Sachs. Mehta next question of

Congrats, you well, you Matt, in well Tom, as congrats roles. new and to your wish

Chalmette. The renewable just around first question at diesel is the

frame you a that you As that you with million lot first mid-cycle how are talked XXX of you year. moving out? how gallons do about production, think would There EBITDA last the -- pieces of since associated about the

the framework on update would any be helpful. So

Obviously, it's going a to be participants. new there's business fledgling market and

you're feeds. going bigger on so And to have a call

an And we plan to for margin margin EBITDA what capabilities -- -- of $X.XX. to plan $X.XX saw be, EBITDA what the be was an an our XXXX will modeled EBITDA of our in was will so and

over biodiesel advantage what to I has a RD historical plants. think feedstock extend to in regards side, and SAF will distinct

evolves, economics stronger. are probably the think market plants feedstock to see I from the plants shift biodiesel diesel as much renewable so you'll And as

attractive below puts going for So We of takes. and was for a last the the modeled to case returns still that year's very levels. we're for shareholders. the there's and base lots be But investment

be But up? end is going going would much EBITDA 'XX forward margins going higher. hopefully greater levels. are to it's I My expect guess certainly, will $X to your be than below and it Where

lot And about growth I helpful. balance Can setting talk maybe and been have role? of you you think then, X-year into you last of sheet and couple vision orchestrated in you how have A Matt, as about the what you guys big That's preparing picture. over just this the could the place. capacity ask strategic new initiatives years some step

Thanks. it's I and appreciate from for -- But have principle been worked it's And not question. building XX a standpoint, the overriding The we're years. rewarding in Tom partnership, together Tom. incredibly is a with just I regards strategy personal for working that working PBF the hand-to-hand company, up. to

And everything there's hope it's provides and and PBF a my of will been energy. is to obviously. over done XX that any a the continuity But and I of have a Hopefully, breadth But big last lack theme, has new lockstep not energy. so years. Tom that indicate be change

to But getting going exciting. center Operations the universe. our long That of SBR do we're the very, is company. obviously, is change. that's change. to refining We're just works not is not so one been gates time. now, which is initiatives. of we going the a in out And for That's a very some have

time whether it's into or there's our ENI it develop the side. That opportunities think connection be on products, with of our a lot over in aviation new there, with only going I will partnership. not fuel, potentially partnership be sustainable to could growth with feedstock

already with bearing hasn't say fruit. it's will but it started with closed yet, partnership I ENI, the

down, renewable team Italy a diesel in their was down, shouldn't got and We plants. Our visiting was I over plant both visit say Sicily to in or Venice.

mid-stages exploring a the sort East and Obviously, the that renewables, hub in hydrogen on so Bernard St. And partnership. about very stages the beyond sort beyond now, Coast. of we're of early excited opportunity

application there. an submitted We with a consortium

on have be And think surrounding Xx you there's beyond City, areas. And this we sits amount in a in Delaware so opportunities asset where I of we're our refinery -- have being estate the with real hydrogen real that unique going of blessed there. sort to hub,

as it's I forward, project, manifest. So will if that opportunities move think to able the be

to like and pop we're in maintaining and feel we'll grow we And balance can reward certainly liquidity, And up. company then try that. we to as will opportunities Karen markets terrific rock-solid with said, volatile degree sheet a shareholders, do the the

of from next line Our question Matthew is with Pickering, Blair the Tudor, Holt.

Tom, Matt talked to refining about cash you new potentially prudent future guess I that PBF expand on think to a it interested acquisitions? we retain And was would the that congrats Could comments for I roles. looking take on mean in it future at and should was be where you Karen's little more? Ops. up, that wanted to I follow bit

Yes, it's Matt.

to maintain away. obviously, been always when that volatile and it's where year everything some I refineries nothing able find at are think prudent come especially to going last sale buyer planned. the flexibility, activities comes you're And been entering look a We There's markets. have up. over there's for and haven't

So sort balance maintaining of to it opportunities sheet. strong speaking, if we are But periods of volatility, is in of front absolutely come we usually we'll up. committed there's what us. opportunity again, a before, say say it down said that we'll every evaluate to generally towards face. But We've

By debt directly shareholders, the all our introduces cost It bondholders. our equity trade for of the our of insurance. that's improves new holders. business. Obviously, the it of which running profound lowers to benefit as It not your your lowers That goes credit. It your just of in way, you cost benefit improve. of is

future have realistic opportunistic, disciplined. the we We what of stay holds. we're want to a to we And be view going think but

excited it. very we're but -- So about

then you partnership U.S. feeds could feeds? to about or talk help availability? for procure like in have you good. started Sounds ENI low to the international the Are just expect feeds regard? the you And CI if looking so, you RD And this unit? And at do

already too Absolutely, the the going for get from And in a weeds. low operations, of -- look, CI deep to we do. I into don't months feeds. of couple But first business want running they're the just be we're to

on diesel renewable we've been for the lining up those So unit. feeds focused

going this given look, be a renewable in shifting are time. we're most in that as we'll is refining to can those manufacturer, traditional feeds. between closer get and entrepreneurial startup, to quick go or there volatility that out economic it's business and procure we refining will we those As lower And we're available where to start petroleum the diesel similar and at and feeds in we'll in And merchant feeds. business the any a be pretreatment as markets, CI

to But opportunities, the the to there's with very feeds, question some ENI, the marketplace. product to it upstream feed regards also they access but extends been interesting in where the no they're They've in in investing side. on side already and have

and say probability operation not-too-distant I'd into reasonably to our adding that high as no And value business. question, in And once up the be execute products Europe. we that there's going we could see running we're future there's they'll a

is next Cheng, the question Scotiabank. line of Paul Our from

and are first, to let all spend Tom, in my the sure young. you're too me golf Tom Matt, you this congratulation. add course? time that You're ready

the time course. these Spend all golf on

I'll tell you, around the Paul, years. I haven't played in golf gulf X

Counsel occasion but much largest the the supply sitting Chair shareholder But the and got across PBF going a to forever. back course, in the golf too committed, in my Executive not I'm So spend General I'll all remain involved so I'm PBF, time reminds I I've am me to on blood on private course. going golf me as business.

what's is of on machine pretty also acetic, and start talk to up the lot you All that feed don't some has sufficient situation to going that mostly they right. their have that that? the your itself, [indiscernible] they high the a you hydrogen. the they realize been guys And after that up save are how And that RD Matt, about in projects, just that ? Could curious peers of

strategically, it think I going for to is mean, least good. next or same term on But those California the shutdown right? facility margins very make I years, Second asset one regulatory make is that probably of couple government the hand, is question the time that of be at and should at the that near the is interesting, the challenging.

position in If California government want if question price asset right, an to the add my California, is in I you and the guys So still guess strategically, sale. be to given environment your good regulatory entity? on to there's that do the asset is

think is look given got at buy don't Paul. Torrance answer But asset in that approval short to We and everything. already, California, Martinez get another we've I no. we The

said, we if effectively the be that at that, came I do look something would everything. As I even But on that something market. doubt could we would

Yes. There's that. about question no

the in recognized of to problem located hydrogen, being be a It's hydrogen that So competitive won't of in we something being we well Gulf one in located the one look, does advance, it there's supply of go on early It's signed hydrogen. on. and Gulf. something And of for Coast, regards the strengths us. of abundant the that simply down benefits in for really to

company. I it's looking the very In we've guys at about feeds, others a of We've and recognizing been and you focus the regards talked obviously, internally, a out know all lot to in for gates. where very, worked of have hard stumbled

so in tried over lessons time. all been bake to And we've those learned have that

low we specific the did in add getting you anything to in our so, And for regards and preparation ready would the CI that? equipment feeds Jim,

the in we're once get CI bring that will Well, California we the approved through benefit to pathways going low specifically. us in feeds

well So the But future we'll initially. have the provisional we're California, scores for which through they realize the in we facility get in able to be those fully when pathway process go underway, CI we'll as approved.

us the second including the in that remaining Karen, what's project LG for you CapEx remind can spending quarter the pretreatment Matt and the finish unit? to or

sorry. I'm

up million don't project. I the two million. we've In is specific work, for be. going unit, if different out you wind budgets is turnaround To pretreatment regards project million, to we've being worth given to want to facility the know the project Torrance In regards total $XXX any it, that to there's R&D So questions. one the $XXX -- $XXX

cat down The in the we third precipitator for Torrance work on Torrance. of not that though took while, Torrance and cracker. the That's as the overhaul and what second aware quarter you're a significant fourth is explosion, quarter, an turnaround -- in do in Torrance going and with to they Exxon was all did that course, extensive over, when we're as

finishing RD And plus that second one of not going cracker or But a that run you we remember material. to the cracker much ran. fall quarter I seen is left how It's X-year Torrance as the you, run. be project? on the never I have in the will for the long a -- And up have tell the PTU cat in cat as

quarter. $XXX million It's about probably in million the to $XXX

some In whole but quarter, the the quarter, already spent. of that been has

Our Company. is from Cowen last question the line Jason and of Gabelman with

new congrats luck. of and best Matt, and Tom the roles on

and because balance First, I investors. wanted focus for believe the us sheet I certainly it's go back a to to

debt discussed cash to equal. You keeping

it you framework it so does investment-grade And point that is, overarching at Is you when liabilities? environmental reach Is rating? question the when reduce the what change?

there different? kind obligations. And market the liabilities. the you biofuels I guess, be cost environmental going be Or that of to is mechanism recognize pay Are going price? obligation at down plants to that paying down between guess, Is to, a the I are environmental to tied and, going going to you're to transfer the that at something RIN

piece, partnership can for I ENI. a sure, the have last take which we PBF, pure with is

to be at the prices. not marketplace they pure PBF will benefits of going will acquire financials and be ancillary will as acquiring from we're SBR which so in from market-based being PBF said, bring RINs be to that the essentially -- are SBR those. the And produced, everything That will market

true venture. joint joint So and market -- but it's it's venture a at

So there's to speak subsidy of. not any there

it. Got

much heightened dependent. net intend my near operations and volatility. with we balance And given going to be as conditions all And debt investment-grade after balances sheet remarks, I target. ratings, respect as X we're pretty to market in maintain it's to pursue initiatives, cash that, the we prepared and And this said then

nothing say. Yes. I to mean It's static, is hard obviously.

want frankly, things a their with have with a understand of want them agencies address. we we We the Quite to frank to rating and down and sit couple conversation have that perspectives.

But as hard X of It's the Karen years last said, gone times. through. we imagine volatility the we've that sort in that volatile over live to

to the extension, continually for we'll what's obviously, by shareholders. assess so And company best and

close with you're right. feel the you agencies, like rating? conversations All do ratings your on Based to getting that investment-grade

what timing when is. metrics. that investment you our can assess their I at metrics, I the financial there's look can certainly balance but assess analyze the can't it, grade. no question I And are sheet at look what is, we And

I'm -- end is follow-up the to ask call, going X since the My if of we're Okay. I may. at

the to OpEx that $X.XX clarification you gave the a quarter, just guidance last still full $X per for first, year. barrel, holds The

And a then if you the become comfortable past? acquisitions as if other, assets potential of just acquiring, be you've you've mentioned would Or you on refining be done would like would it the pursuing arise, they refining focus be a system they to interested. say, It available? assets in single sounds in were

to is QX on throughput. The costs. is annual There the some typically First, with based budget respect annual seasonality. OpEx. energy give because of highest our guidance budgeted our we and is

quarter Second next highest.

that natural it materially gas now. guidance But was put when than is we out, higher

move. So to your question, get to of appreciate pipe. regards desire will sort We what's or more acquisitions of that down know coming In the will don't clarity. and more down what I the come sort

everything. And so we look at

We've that imperative always stretch. by grow must said an there's we not any that

do will best who If And very at them we're for they knows so up, pleased certainly shareholders. look have. come try our be, we we'll to the system what opportunities and the with but

to session. call Tom question-and-answer of now closing Nimbley the the I'll the turn over remarks. for reached end We've

you today's for today joining on Thank call. us

continue volatile PBF markets As continue to will hands. be will we discussed, to in resilient. the consumer be good have remains and demand

Our unchanged. are operating principles

an We manner. on safely, are responsible environmentally operating focused reliably and in

meet our will we to provide so, demand. continue essential consumer doing In to products

you. sheet and As investors. next condition we forward ever speaking expect its I all continue look rewarding us with financial in to and you our will we've operations to Thank is mentioned, discipline again strongest quarter. balance allow our our

This concludes today's conference.

Thank lines your disconnect your at participation. may you time. for You this