PBF Energy (PBF) 3 Aug 232023 Q2 Earnings call transcript

Good day, everyone, and welcome to the PBF Energy Second Quarter 2023 Earnings Conference Call and Webcast. [Operator Instructions].

It is now my pleasure to turn the floor over to Colin Murray of Investor Relations. Sir, you may begin.

Thank you, Debbie. to welcome and morning, today's call. Good

Copies today Tom Nimbley, me and filing, other management including are our are release Davis, website. Matt CEO; and several team. our of on President supplemental our members today's our XX-Q CFO; earnings and Lucey, our With of available Executive our information Karen Chairman;

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

this second excluding realized we'll in primarily Consistent In method our periods, included by of with The quarter release, our quarterly items today's these prior amount results results. discuss increased And cumulative after-tax approximately special to described million Bernard net special items investment. press impact or of share. per the an $XXX gain the formation on $X.XX equity the items. of we the St. special income today, our relates Renewables

XXXX operations. Also included our in today's further to press release related is guidance

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

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

call the over Nimbley. turn I'll Tom now to

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

demand. and markets the follow respond to consumer Refiners

low market sustained to runs. have refining calls a see summer inventories differentials the demand. narrow quarter. continue higher Crude common for supported hear utilization, dist crude peak is over narrowed We during and It and customer to by

markets are as post production and turnarounds crude SBR amplified the of activity. near is heads crude narrowness by the to to industry degree, into recent the Plus would forecasted policies summer, seasonal higher norms. restocking relax a We the to OPEC be full lesser peak than believe narrows are of expect The and that dists

refining to PBF's market dynamics. positioned well manage these system is

shorten conversion, like octane. long-life complex our that ample yield and a our advantageous reforming company puts in capacity, have asset profile and We We position. an the

rebound Refinery key lows above the has in experienced slowed. jet those fuel demand offset margins the and remained as I well and relative mid-cycle, quarter. decline have from XXXX mid-cycle. above lows recent distillate a theme we for recovery a still the seen industrial second the relative historical gasoline, A say demand production partially is for during because were in by

Diesel inventories remained are averages. still below X-year up, yet

the we fact and agricultural at this we not expect The However, seeing the for stronger this are year, of winter. distillate to distillate potentially into provides season coming markets building seasonal normal activity inventories time support see ahead. that some

products for will time, At Predicting moves at be seeing commodity from stable the our our demand growing we markets our future timing the high to challenging. are and gates, of The is continuing markets to the the the utilization assets. continue for refinery thereby in call same volatile.

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

Tom. Thanks,

the I'd perspective give I I my on thought role quarter, company the you take of CEO. commenting moment on Before a the of take to that

strongest its confidence operating absolute with say can that PBF company. position an ever I as today, First, is in

which as history on company, reflect I our periods. distinct PBS I operating began an As break X time into XXXX,

foundation company the The 'XX, to we years the established first refining of platform. and our 'XX X set from

and increased diversification. The our geographic our logistics second 'XX we X doubled to growth. from on 'XX, capacity, We footprint focused refining

on lows the to to ever and experienced, the fully operations markets maintaining recovery consistent, through robust 'XX years 'XX, the capitalize market X generate us we reliable brings record volatile financial which safe performance, us oil from most today. navigated The marketplace to to allowed

and beginning Agreements, world-class renewable PBF business the have and in repurchased of a debt, buyback the Inventory partner PBF to commenced XX% billion restart Intermediation in the where a X% of since a $X reduced fuels repaid year, payables we executing in with our over paying shares. the dividend about program We Logistics Eni, by environmental about share and credit bought

forward, capital Moving allocation. our on focus is

industry are will sheet matter. disruptions, balance in against or which repositioned any Our company cyclical inevitable market the cyclical future for industry this buttress that

is work improvements eventually front, strengthen these and Fitch. with company. and of recently our balance upgraded to further becoming that business, sheet to intention an cash investment-grade have flows by been S&P, the agencies the goal highlight On Our with to and rating we Moody's

innovate each in improve will maintain and reliability positioning. and our to invest our refineries and to of We continue competitive

Chalmette. evaluate flows business and we growth refining. will opportunities leverage our that high-quality our industrial cash beyond We large to into at diversify that expertise opportunities the renewable business footprint developed diesel Similar

capital we investments associated potential opportunities shareholders with goal returning growth value. be be returns future in long-term any must potential will to and to maximizing definition, superior Most dividends. weigh any and By importantly, against will of growth with the buybacks

with PBF and be will ensure long-term reliably disciplined value flow and is shareholders. and committed will to This process will responsibly. funds rigorous safely competition the operating and to so that working obviously highest and best for to Our for begins continue capital, use. driving

the turnaround that around operated line quarter, Delaware City minor note, at will second well and expectations. outpacing be on work a fourth our a the completed throughput coker our Torrance. refineries FCC with quarter reasonably with system-wide of in in There larger the the We Torrance. units hydrocracker in in On and

transaction press this in renewable closed morning, in venture mentioned St. the joint release June. Bernard As our

operating than this this look to point are We to venture gotten and more to forward pleased Eni alongside mobility. sustainable have

RD facility SBR We started well. PTU. unit are running The operations the of and progressing planned. the successfully The up is both as

out July. line to our sold first cargoes continue we commercial and We operations in

the PBF more opportunity than to provided generate year, are the and with have We exceptional market halfway results. through conditions

ongoing, maintain it improve efforts to sheet been While have our the major completed. the work largely to the strength is balance of

We will on capital with focus balance and continue sheet structure. transparent a our robust to simplified

through-the-cycle and strength. durability our We our intend to financial demonstrate the transformation of

generate long-term operational solid allocation. Our disciplined value goal is our investors capital for through performance, and to

that, the turn to With I'll Karen. call

you, Thank Matt.

quarter, adjusted $XXX reported second of more $X.XX than net million. EBITDA share we of adjusted income the per and For

opening the call, of for equity XX% at gain the using of going income method. joint Renewables. mentioned adjusted will and We the interest we venture on June net in As account Bernard our forward, the the investment end St. excludes the partnership at the closed on

the relating working of The the SBR partnership, value between received, The by we the which value the the noncontrolling includes gain XX% in a $XXX the and difference we joint the second the fair the of partner, our contributed. fair In the recorded our contributed assets quarter, of approximately to business value represents cash formation was interest venture. value plus $X.XX carrying of of excluding the closing, million billion capital. related we at consideration the approximately gain of

On PBF June the XX, $XXX successful additional relating total, August transaction, we received SBR. $XXX In yesterday, million upon in received start-up received investment commercial and million just in closing the an of we its million July. X, has subsequent to $XXX PTU of on to the

an conditions met. PBF additional is entitled performance million are $XX consideration if receive to certain potentially up of contingent to

look this exploring equity value holds value through our discussion to we potential gain quarter for from Eni. real new exclude While future we generated the second PBF opportunities, additional forward results, partner, of transaction and our with onetime this

company, of results our payables position environmental improve million to We our our balance financial and With cash investment, closing the million provided $XXX of reduced operations outstanding strengthen the approximately by from continued the of equity a the we successful and SBR the shareholders. sheet $XXX for reward total by our year-to-date. approximately work further

of the of Intermediation Inventory including $XXX our have $XXX $X.X million of of last highest and at year, billion now our million, exited repurchasing Agreement from efforts the June. had of at to approximately Our arrangement Continuing credits cost we cost This at end July, under to capital. reduced environmental our in transaction our payables streamline inventory a with end over cost the fees. the been total sheet, been just balance

history, company of time now and a For of the in our PBF. its all first the development owns inventory, the milestone in event controls

worth repurchased million including purchase the quarter. we to in through continue shares, second $XXX $XXX We million and have PBF today, shares PBF of almost

XX million shares. XXX of date, to have program the life under reduced we and over shares our just the million repurchased For count to share total

Our and for expense came $XXX the at G&A amounts related expenses incentive and G&A quarter company's million, second in plans. which base our the equity-based compensation to includes

be and expense of G&A annual to $XXX continue to the should For million the $XXX in range. million base clarity, sake PBF's

number a investors performance. operational is of our factors, component compensation and company financial of and on approximately which G&A variable If programs. expense performance be million the employees. incremental well, our incentive Depending could $XXX financial this, G&A there most the of do top so dependent does is related our and to on our in This important on of

Consolidated CapEx second approximately $XXX and quarter $XXX million, logistics million million refining, and for related for corporate $XXX includes SBR. the approximately which to was

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

a the until fully as quarter, start not we July. second the For up did of contributor SBR was to not earnings system, our

throughput we As in rates barrel day to per the reached continue XX,XXX today, planned and have of expect operating range.

pathways receive the regulatory our rate on but gallon required that XXXX. of the and which products, not run our expect of approvals previously basis, have to expectations mentioned do we We could first steady-state a EBITDA into be we for reach per until all half

cash billion debt. with the billion over $X.X ended $X.XX in approximately We and quarter gross of

satisfied. sound our of needs we sector-leading the and many investment-grade and We strength focus are exceeds exercise continue financial on to balance that business continue to discipline ensuring and believe metrics, credit our sheet We policy. the sheet sheet balance will needs the or of balance

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

Instructions]. [Operator

Read Fargo. question line first of Roger the from with Our Wells comes

look the the has year in may industrial and very I your winter, Matt, look to going the enough we ability for say, anything a right? So demand and fall inventories into -- And view economy can building. to what guess side, we terms margins diesel diesel and normalized and the forward? weak, all. a of diesel markets market, let's mean hard off, first deliver at haven't on the But CEO of been let's comments, as your relatively extraordinary done this diesel next what's congrats even take on well,

of it are pass Tom, over a maybe think that and start on point. couple who on to made comments I'll I

bring last year, year Diesel duration. -- the part was we've in pattern diesel. maybe first much was we But to the of But bit back same the than longer seen sort of also, in softer. a than stronger you it's it gasoline

decline. result, the gasoline made As and There's a diesel we always yield more consequences. unintended

right. And so you're exactly

still we're seen for well below of in that's at diesel tremendous we've a time Over the couple weeks, because rebound And the partially the year, norms this inventories. historical last diesel of crack.

And into weather market to incentive so make the has diesel the to turning. season create and the agricultural going the

will to refined back But Supply So answer, always is no we'll be with way which marketplace diesel to I supply is the sufficient these is have come make able coming -- same on, doubt a to out is needed. figure to diesel. provide that but the marketplace questions the the tight. all capacity that

is view so it be as constructive marketplace for you Tom, what to reasonably well exceed we -- very And being historical mid-cycle norms margins. and is have? the

season. we the the Matt, seemingly long thing the and season, right, still turnaround really just add beginning coming, active is of hurricane -- mean, only through is have get I to which and days kind I of would

enter it a gasoline and and weeks it will market little season But probably now be getting the market the the expected bit certainly switching next -- ultimately, in to several will built be into into yields industry as over So months actively there. premium terms of through basically position. winter right distillate and we of maintain

of is to just -- pivot rating pursuing line of what achieve a we then for of rating, impact, a change about us change sort then can quantifiable an or a in and IG comments can? that think you to quantify you how changes key for PBF the if IG are it -- and way the bottom able the should control, about you couple inventory maybe there And with Okay. points an the give if inventory -- to can as

Yes.

crude and Mid-Con Karen and our in you products. X We Agreement crude we the suppliers suppliers back Coast go of began our when on first the had this, suppliers we in refineries. the of and So regards East Inventory if to of in had off-takers the Intermediation history, mentioned for

which There's And all. the they simply financings that week are, own to happened moment no so didn't company which just was it company, the this the the But capitalization in extinguished -- have earlier completely the properly bad. company for capitalized. is proper -- when last is it's a this they're where it the finally fact just actually not

Now We It dramatically opposed think It the inventory much balance renting I we our it own thing. within good do, sheet. sheet. makes sort the as it is it and which simplifies balance a to of more transparent. buried

lowers it costs we keel rate paying only It capitalized, but just are essentially and Intermediation not our said, you own it, an because properly capital. company. highest now was cost deepens Agreement debt paid for the I our But it that that as of demonstrates the it's the free, of interest

wherewithal utilize terms in going of So we forward. can more it's that liquidity

where we cycle over But with most to and are last structures life thing And sense XX move we're to now, so do right I we made the of us partners work do. appreciative that the to was it for us right pleased absolutely have We're our it. think to incredibly it years. on, them. Those well in served the the

we're your capital. In cost reason, think of capital that any a incredibly investment this then important. in of number the value company But it increase to on it regards is we grade, for working business, lowers doing not of our Obviously, fronts. will other

talking so crude, and credit purchased critically about open it increases at you're being credit when And the $XX of day million a open counterparties, barrels with crude important. X is

to And standing so counterparties our improve adds with value.

costs. insurance your improve You

stronger shareholders go become So improve and also base, you across potentially attract you and your you costs shareholder organization company. stronger the but down, a new as

important, that it's something chasing. and goal incredibly do it's a think we're it's I that So

argument. have We did think merit we it's slowly And just a I our lot being to of recognized. upgraded. get

I industry tremendous add to I for it But and and do, we our for shareholders. important, will what think value it think our is

Great. next on you Good quarter one. and we'll the catch

Thanks, Roger.

with next Bank from the America. Doug question of Leggate comes Our line of

this wonder pretty you've life joint -- different could on is guess the cycle. hear any the -- been portfolio how my you're venture some Is think just touch the call. great you is be to of that there I you anything if about you on and clear But Tom, stages to Matt, the assume. would generate change life I I that its point, what's shift at now you want RINs, through not PBF behind you anything see you I question today. to going way would I have

for company. But the it remains a sizable headwind

the its So your when you curious see ways other your exposure. if ethanol that's address the forward? obligations likes you of RIN business I'm just mind and Valero mitigate to going with on as to how

backwards. time we're to go far And too now way mitigation. of away, which I'll focused way the much So renewable to and RINs away, a manufacture best It's diesel, far been unfortunately, is mitigate has my doing. RIN on

the so company. a And event is that for it milestone

the And not half entity. have only we where

So but ours, not half up set as the RINs are to obligated we're party. an

as RINs share access So RINs. well, good the their which acquiring we'll to simply of procure is

is the ethanol makes RIN much The against entities that idea a would difficult a beneficiaries program what way the in I the administered; investing it is and it short volatility. of are long multiple trade with higher and that at than is necessarily But refiners. quibble the hedge good

at So that task well, that different trade because take I'm through that going marketers to refining. it's retail market difficult to to in flow that a will buy the just wholesale benefit RIN businesses my much on of way valuations

that I So said, now I way. year, dynamically don't XXX glorying million RINs our like position. But there's manufacturing we're changes that any and going think we a --

safely look forward to reliably RINs. those and we delivering SBR so and And operating

history. talked a to bit I of regards In our little our portfolio,

to else not comparing to to oversimplify would last It location, your the what the was process which our really If -- I by or XXXX, grades. size ability and real estate, what secondary it your cycle, location complexity matter your cycle location, was you was, back everything residential XXXX go was, didn't important.

a cheap complexity I specifically whole are access together of was, which the crude It to put to very and reasons, back think the access for we markets. our on coastal have do you crew renaissance you near portfolio, host of and

positioned forward. much is Our better going portfolio, I think,

that? does everyone. impacts and there's a sure Well, is the I'm not anyone closures directly think as why PBF. it number in industry, impacts it that of I as been

As the be happen our on where they occurred, look have to all you at East PES. closures neighbors the Coast,

to lesser could that a Paulsboro neighbor, come Coast extent, from or You but Hovensa see in direct chance not certainly East our by participants.

and produced, on Eastern And edge of benefits the Chalmette from to they're when there, go also you the Coast, Gulf Chalmette. but shutdown, have really are us. being because refined similar crude Lynn it which crude only to buying very neighbors where Coast, And you Gulf products to less was not the procurement the

you Martinez, will Scott, be San converting to down, the go announced Phillips the Rodeo first Maria then West in quarter. out And XX that yesterday is Coast, and Marathon,

So competitors all and local direct to Martinez.

the closures impact headwind you the refining Europe, in the obviously more back a sector is which major stepping disruption broadly So for in I natural now think than us gas have but that, directly, Europe.

with and from fire hydrogen also obviously that natural gas. You heaters boilers desulfurize with gas, products your but comes natural you

I for so and U.S., coastal the disruption if Russian-Ukraine ground big headwind you big paying are think And the from the other refining benefit us. gas the we our advantage that's that or and a war, competitive in have creates you're X accrued And than network. natural Xx obviously, to distortions a that of

and something I everything now And -- but years move struck, and to talked obviously, the is years see. impact it became and its pandemic in for then else. it about And was IMO, we embedded years is when law the

Eni just get We're into at like we're with We're look we SBR federal the our government. businesses got beginning footprint. pleased. working we've we're new very the forward, As to then hydrogen, with stages and very, and We're pleased. looking very

positioned hub very company well is think be I potential to going the hydrogen forward.

we've with are to so industrial that our is opportunities We've footprint refining I and able on. that there got established our our potentially got footprint And capitalize And footprint. be renewable other growing. we'll think

Very December; point seems have maintenance. I think you're still a on close FCC out. It thorough answer. Coast. we for too going $XXX is follow-up the refineries I Rodeo your you quick is Obviously, down pointed cracks one last West guess to and went when to as me one off-line, saw my at

we're imports It I can the guess I'm you dynamics going in my XXXX Coast how, if price. I'll question the incremental dynamic setting type now? leave West incremental of just me is, curious see volatility, forward, do the how to see to sort seems the you it there. characterize back and West you Coast

Yes, be very California the of to in some through I every went Davis reasons. think it's Paul comment. And I'll ask day. to tight. works going you He

we I probably The nailed experienced Doug, that shutting price to Actually, steady would have and have as down, say is market imports down. shut right? we more to going to it, in flow have a you of are going pending refineries

markets The going to forward. see. accordingly, gasoline the That's are to going price Coast, pad we whole you're a West on to and what have of volatility short, lot including it's see the going

kind of take as our was That well.

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

So but my on in assume see from about release, XQ. SBR, it of start-up was I talk we builds in you're you and Can capital. first working one headwind the working seeing capital overall there is an the any don't

of seasonality course about working in just second that XH? should in kind thinking Or we of more be the for reverse any ordinary half? So capital

second in a question. the Yes, Thanks, was quarter, SBR. John. build there to inventory Thanks related of the for

it which In was partnership. the to million, $XX was contributed fact,

joint within capital of will that all working SBR forward, be Going venture. the requirement

the to I capital. normalized see return you in So working future more think should

you you beyond there? anything I drivers Great. bit a for Was bit Can a And about guidance with turnaround throughput, think full then talk little in XH Or the cut plan the just it XH? dragging on year. little there?

the anything don't No, Torrance, for think be will turnaround a cat days. probably big do specific. have I We QX in [indiscernible] XX down at

there. certainly impact throughput will that So

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

I just guys. have one question,

it the new West next on that Coast. crude can refining process on have can There's to WCS Coast. up barrels. year You but in the we or of a pipe, sour XQ, West opens of X of which lot assets will XQ a close heavy Both complex if deliver debate XXX,XXX them barrels

if PBF want that how little a just help to can for out I it, bit would understand it. can benefit us great. you quantifying be by And absolutely

Coast the cheaper our dramatically Asia priced for think West it a do for our crude the system. and to marketplace. into has not be Torrance and deliver for is Martinez. can on bringing to only foreign flagships It U.S. positive new loaded I to be tremendously Well, to to story operations, California it, But crude we're and that get to

You're absolutely right.

we out heavy, out Our there, of crude grades most the can most sour process the kit there.

incredibly run increase working believe out what best to that it And can will it able in that starting positioned the figure number, now to on it right is most advantage. can. we an how at we whenever and so we but be that be and actively so we're advance we're to able we capitalize And working to we're economic well diligently we'll be take way can next out crude, is, of year

in But heavy has it And Manav, little one this put it a time an to We because, day O’Malley. that in room. the large. by crude, and it. is yes, ship it's it's is but crude sour interesting Tom a not

how actively we sure see it debottleneck, have we figure are for the a the expand that, at to tower, we top working and to out at from we opportunity handle crude looking of terrific to that can ability products make the So and on team our trying company. as the

[Operator Instructions].

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

for in I what the second at a you expect City little you about the Coast that guess, Was Del I due quarter? guess on the starting the And East turnaround low. little to rates Seemed Could out planned the coker? talk in here? a would bit refining. QX capture

Tom the rates aspects, hopefully, the also differentials East narrowed. crude certainly Yes, into you is have the are coker X turnaround, it capture upon us. quarter -- on And [indiscernible] Coast, went can impacted right. And on impacted the coker that. and comment second The Paul but which

crude differentials Paulsboro in Del City regards turnarounds other now We forward. any to clean Paul, going and in expect comments? run to have a

No, I that's right. think

We pleased on we crude. slide peaking we're spreads the light have on think a heavy on and work,

more a So than when September, are August. look October July we advantageous little take at and programs a they're

us And of still presume then expectations you could good. and on But back the through some think LCFS help mentioned understand little the RINs until first I like that I for more in a Sounds you're bit it your 'XX. profitability pathways this year? half selling of for like the you sounds RD of cargoes. half might not come

is, X $X.XX range into and EBITDA for guess still I to target wait to might you And monetize guess to kind put $X.XX that And fully it? then the R&D rough question what second is, is question opportunity pathways of expect? an simply I there long-term that does storage hold?

Right.

RD So out it to in and will $X believe your between settle long-term we buckets. question, I $X.XX. profitability would in answer characterize Absolutely, X different

You it's and to in or said $X.XX. $X.XX $X.XX whether $X.XX range, $X.XX, $X it's that to

host fine. you market, I reasons. the the current a to 'XX, whole the would market this of that's a bit But of is that for second than half current softer call want and characterize if

margin it's optimized moment. and full getting fully $X the EBITDA $X.XX credits, benefit probably you're the If per gallon. to LCFS of at the

are a have that run low operations, feeds the begin you when and full we'll our carbon able suboptimized pretreatment happens what low to get an facility, arbitrary available. all and reality that's as carbon be you we essentially, to score But is what

and So marketplace. of X operations. the entrant into nothing months the that debit [indiscernible] time that's the any from sort to temporary will new runs That's X begin say PBF-specific, we for you for

take early the year, is. into $X.XX And so this year, remainder current market next of what the you'd for off probably maybe

So $X.XX to EBITDA. call that gallon of a $X.XX

and outlook. markets incentive think don't year. we store dynamic, the diesel, That's I the go quickly. Obviously, selling there's are things we'll as change the through any can actively be to current

question from comes of Sankey Research. next Paul Sankey the with Our line

in perspective one interesting always about Matt, an little by free Tom. assets. to your that's early to I'm gave sure consistently Matt, delighted historical is be And the buy PBF you call. of struck you're you've thing major willingness me surprised

capacity million Now investment-grade a pursuing that and highly rating. day you're X obviously the barrels at you're

How less cost be of pursue do any you on now to you lot think about do Or the policy growth? dates? acquisition you a think it for dividend Is fill acquisitions, there return, you front buyback a cash capital, going with will potential special of dividends? are a future

couple there. One, do Okay. to was tremendous to There's I think a of things scale. benefits there getting

I think a the X reported example, managers refineries, we have much we with One management. have when executive scale. X into small organization, are we plant refining of didn't

whole We've have got it. that's Now a we Head of Refining. a organization under help support

So our access improves excellence to expertise as we scale. got and operational

your have we scale. to But point,

in rigor that's took always to brought point, on compared Intermediation Agreement, Obviously, And refining, up everything all be reduction. will our uses to be which potential which this at dividends. sort As whether buying we extended at shares back analyzed of we've alternative, and I together debt out. take said our been or exists very all that very, back we'll in just of focused always will my looking going of the remarks, Inventory until the out and capital forward, we or it's for expansion in

coming demonstrated credits. We've We've buyback down and a restarting the the been paying fairly environmental up next quarter aggressive program, dividend. we're anniversary of on

every every uses no my going got to I've get so that works need to capital forward. team of day a with figure job, it's There is our out bigger. day, me and And best

we'll opportunity, our against weigh so and alternative. an everything will And it be

but [indiscernible] The kind average top that laugh would you more I by you is, That's Tom, the hear way, frankly. didn't of Valero is the and what thought much was say, it. Got harder of I -- well a you regardless guys... joke.

generous. more much They're

I global -- you is obviously, of oil. going the you a talk a we that Can -- about headlines could just Saudi insight across you extend Could talk my markets little they're mean you just had to September. saying follow-up, just have bit, fantastic into to cuts

mega a capacity by you and Canadian in a in big less product impacting it's cost moves flows, be question, how answer. perhaps whether but then flows, I'd trade that the very Asia talk Could interested first, about additional huge diffs or crude, impact or bit you, seeing has we're not your

We'll Paul, question. a backwards it's great on go it.

that Rodeo the I real, huge able they're There down. have they find Gulf take if going say happens amount but to also be offset with a but exit those will be they product imminent. not run and chance as the an in WCS. for they're of be additions, certainly impact, have to it LyondellBasell, a Coast. look will the whatever out. business, to do refineries crude they capacity And to continue There down some on some be and impact fair U.S. think That with going not say time, get because supply only It's obviously -- to to would going would

think by in time, watch are I road, that. at get confidence population those certainly are speed. going world And is the will making themselves. Ultimately, be the built sure same growth in Asia. refineries self-sufficient the So the But in they're up those we're refineries down predominantly to mostly going to mostly Asia, being those

Tom you even what's with this of team have et trade I Tommy, room anything our the and Russia, add? the coming in been cetera, you terms happening flows, refiners and would think on as In -- and new -- expert on watching

kind along cuts, short Atlantic Basin, pull really Yes. I long I with to me developments Basin, let I crude, really happen it's that right, related the crude. mean, OPEC the mean, Pacific that, think of

basically had to on in increased see flow have lights, the more an trade cuts Atlantic leaving particularly effect refineries OPEC the the Basin, a right? starting barrels dramatic Asia upon So

around and which the prior I Western uncommon, And Atlantic the we've biggest of think but now in softer, that's mean are African the which were east. to sort get seen, in to we're today. the is sloshing months, that's us I Basin pulled not probably starting programs the the change most apparent moving change of that's front

Yes. Anything I'll it on Canada? And there. leave

think don't the anything hasn't that been on I mentioned already call.

the It on winding gets there move tightened little agree up happen like We're when Obviously, it's with big Tom. bit, going out the I a see but board. pipeline trans it's will significantly. looks to

of question final Todd the Our from comes Piper line with Ryan Sandler.

made you've of on use liabilities active reducing question earlier progress buyback as Paul's cash. on in your material staying year-to-date mean, market. the follow-up environmental a just as the well I Maybe

you cash liabilities, feel your you're more that, environmental a with about would from on lower then normalized mean, closing buyback. the guess flow the the from And I view I Eni appropriateness of to say. the on that the get place? Or in deal. like on you the further free even in mentioned hand -- the particularly in how in lean you being Is organic and before there cash do I you much I cash of to much aggressive How how would kind both hand, room guess, buyback? like

say, to call Sure. are of, year to environmental we would range from next we and would liabilities, now, Ryan, XXX more XXX respect to getting to that normal, a with and XXX XXX at XXX the see normal. of ourselves down X.X, middle range, by

about is And taking then long that talking with Intermediation balance been to Agreement the cleanup liabilities. our of in environmental priority, decreasing. reduce talked respect the is sheet to We the continuing we've items the Inventory list the first but Eni proceeds,

is beyond -- the against refinance XXXX includes -- the with that buybacks, excess has as but to else There stock it's compete our cash, notes. for then that, the we that which sheet, Matt return. And balance to and really might everything potential said, respect weighing alternatives

performance one of refining the as we you those then in there one. Great. really OpEx look drivers expenses last talk the in are Can on of there, And the on half and strong the second quick business expectations. than operating some how year? maybe lower came about just some sustainable through of came

no driver, biggest gas about prices. is The question natural Yes.

know of or concentration of natural Natural come that lot primarily gas much the gas higher prices. was was on early prices and the year, OpEx there in a down OpEx I back on in. so And comes

With to concludes speaking to that, We that participation, appreciate the and today. Thank look forward you. next you call time. we everyone's

today's teleconference. concludes This

a at this may participation, Thank disconnect You have time. your day. for your you lines wonderful and