PBF Energy (PBF) 2 Nov 232023 Q3 Earnings call transcript

Good day, everyone, and welcome to the PBF Energy Third Quarter 2023 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.

Thank you, Devlin. Good morning and welcome to today's call. team. Matt Tom President and Nimbley, members our are Davis, CEO; several today of CFO; our our management me Lucey, and our Karen other With Executive Chairman; XX-Q Copies today's filing, on of press website.Before I'd to release. your started, to getting release statement the today's and safe our including information, harbor are earnings supplemental available direct attention like our contained in of call the press provisions release are the expectations and that this express our on management's by the in intended Statements or under statements, made predictions future forward-looking covered laws. to or company's those federal be securities harbor safe periods, factors many discuss excluding today, items. described are from our our our actual including special that There prior results in to SEC.Consistent differ we'll could cause the filings results we those with expectations, our with non-cash release, today's our results. press In describe quarterly we items in included special the these extinguishment related debt, cumulative for change the remainder by of loss associated after-tax amount today's income impact decreased on primarily with contingent The to net or Agreement.Also share, of third value of quarter release operations. the in of with guidance the an the Inventory a fair of termination expectations acquisition, and Intermediation included associated exit press further is the to related Martinez million special our $XX early consideration items $X.XX information costs in a of XXXX the

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

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

in the history, robust another quarter no during major the joining third I for believe; with at markets of Today, refineries outages well of strongest dominated quarter. refined reasonably thanks of that product reported any our by and most the ran PBF everyone, morning, planned Good facilities driven strong our results, our quarter.Our quarter call.

have diesel as stabilize prices but inventories remained pullback come gasoline, on levels we that are cracks, we've environment volatile. continue they remain seen cracks the compound gasoline above remain pricing recent expected, season, that today. will as The to are will are Now tight.Despite and shoulder margins off, in robust expect will average, mid-cycle previous in the we as

is to with conditions PBF our these its well allocation, complexity, to footprint.With competition capital to conversion for respond to core refining capital capital to However, which positioned principle respect market in create highest high high our a flows best and use. is

and cash. increases to capital week, in our approved share shareholders substantially be in will will increase against weigh level investments opportunities our dividend excess PBF per relative is continue generation to we previously, growth buying by market evaluated From simplify strongest leverage have shares behind increased a evaluation A $X.XX remain of million share buyback on group.With disciplined in stated our this today, XX% repurchasing first The million shares. will us, sheet PBF cash the then fourth the our further and among returning will XX authorization we've through announced have and we $X in forward, Board ago, of shares sheet. strengthen in our a per the allocation reinstated balance an December balance to buyback of balance We our share quarter in strong cash, reinvestment program As balance to a imperative our sheet will annual $XXX program operate business activity strengths. determined outstanding.Going basis. managing economics.Investments buyback be investment-grade rigorous was business, point, coupled of in forward, that billion sheet year a $XXX the the buyback of ranks or in we excess May. be back 'XX, quarterly growth of active and to million a in to an potential cyclical expect In in we with to the share.Going and we inevitable the dividend dividend. This ultimate At peer priority cycles. the inception deployed of $X.XX

plans for sake Diversification getting diversification. We to the have get no of pursued be bigger for not sake will the bigger. of

where goal is Our complementary pleased renewable an expertise compelling compelling of this Bernard we to in and joint core positive first asset announce a venture a has our in we quarter and idled Renewables our that Bernard to investments fuels is investment are of to assets in renewable return diesel leverage the St. reported strength in in our earnings. example diesel, blueprint make to manufacturing risk with with expertise ratios.Perfect St. in full businesses partner Renewables, Eni.Turning into world-class operations, leveraged

work to a in in quarter line change continue out post RDU July. start-up did and advance catalyst We June to assets. the the PTU optimize we We operations start-up late RDU into fourth the as the on

partnership.Furthering under gotten in to than working participation our selected MACHX recently regional Energy of joint as of We Sustainable hydrogen U.S. future partner, will opportunities exploring Department are have expand the this pleased that the the to the to more our PBF's venture continue point IRA. Mobility, Eni alongside hub receive project we funding as energy,

be the or Martinez was impact on the and capture as on quarter is this to month. rates part of the will maintenance supply flexicoker. Martinez Torrance advance should and lot planned the we fourth Although we're of of pleased and midst to ultimately Torrance work in ahead ] clean there will transportation cover, be are FCC week news West The and [ be and a Coast.The the good the that complete project end complete Martinez downtime work is hydrogen units, additional at should fuel.Looking a consortium work doing on and Torrance quarter, flexicoker the the next work fourth the before energy of unplanned still outpacing that both to ground from in the so we're

markets will want turn PBF quarter, see over tailwinds market Karen, from PBF. saw and The global to we repeat As to for currently that volatile. the be to to system, call in in nimble be particular, refining I the will activity continue early we in conditions.Before the commodity adapting I

our coastal refining First, situated the system marketplace. is for coking complex, well current predominantly

Second, maybe sheet is now transformation balance our the of complete. importantly, most

reduced of now and of with dividend, drive I'll share long-term gross our and have a have RIN We the turn hand it intermediation as direct that, our outstanding obligation.We've has been essentially our will we economy also have debt, renewable the increased we selected extended today, all program implemented had that fuels creating and bought and repurchase producing to are reinstated in extinguished as value.With over help tailwinds a growing and now, agreement, PBF the part are project. These Karen. hydrogen MACHX in

Matt. Thank you,

Recently, million sheet. SBR. headwind third the renewable have in the our our $XXX to second, come million price on liability mostly at of environmental in million our results previous the Outstanding million environmental changes. adjusted our in as million. the credit per was of $XXX $XXX that total the calls, our efforts our third equity the we total net billion, interest we normalized for approximately price million generated For XX.One included EBITDA flow Working environmental gross is This included related approximate energy captured $XXX the payables range Environmental strengthen in $XXX year-to-date. liability of is capital brings million for the credits of approximately September which from credits, continued reduced $XXX to million. includes of Payables, a in Intermediation can quarter totaled quarter, income and quarter, mentioned July payables over capital balance $X.XX comment margin.Cash seen Agreement provided. Those to quarter further This efforts working Inventory previously of $X.XX our from The from a indeed our outstanding simplify of our excluding our for a dollar share by and was operations market cost an impacts $X.X decline exiting in range $XX.X reported we That in million.And reduction of Also adjusted the billion. benefit $XXX the in down. of to we $XXX

issuing notes, reflecting of account range RINs the new August the payables facilities we RINs. to the XXXX ABL quarter from $XXX will months and fluctuate gross the primarily $XXX thinking on was approximately extended of forward, approximately the to likely payables XXXX by conditions commercial million for This environmental undrawn the our we SBR. refining, normalized and as billion CapEx and maturity our we notes. of and reflect $XXX of million a to XXXX to $XXX $X.X our to no Going million, the redemption increased XXXX $XX calling strategy.We for by of X quarter further suggest logistics buying and may the through SBR, about during net notes debt into million and in X issuance million third of $XXX million, million includes near-term balance obligation.Taking and depending size approximately related in our are sheet $XX market which the corporate also approximately notes our maturities, Of balance debt we reducing note, have our with normalized our remaining approximately XXXX.Consolidated balance strengthened

the venture, to quarter, items the to expect $XXX related SBR to For purchases PBF excluding million during joint $XXX the investment XXXX we related is turnarounds.Also for Energy due This third in to our work bringing long turnaround $XXX XXXX, previously entirety ongoing in increased we our advanced and the of scope range, for of proceeds West above SBR CapEx, primarily total SBR, received to provided to approximately planned of be million. proceeds $XXX million. the million Coast lead received

returns to-date, dividend to of totaled announced shareholder almost Matt quarterly our increase quarterly of million paid $XXX program. mentioned, share to we repurchase the third million. to demonstrate commitment third from our an in during the repurchases continue $X.XX.With $XX was program, dividends just in our quarter. $XXX total repurchase We the executed respect million Dividends quarter our share to $X.XX And through and as

almost and and the We base related million and expenses October our company's important G&A incentive For overall repurchases the have objectives.Our the life and share plans. expense return the total of we repurchased $XX equity-based amounts includes to to under long-term in which as at million, program, our shares components of quarter shares. G&A capital count XXX our allocation came share and shareholder million reduced for compensation as dividends XX.X of just third XX, view

quarter, approximately G&A with G&A $XXX almost could annually $XXX of million.We $X.X last million compensation above there expense billion depending financial incremental performance, of $XXX our $X.X mentioned annual over base and related million million quarter and just As of in the programs, to operational on be our ended to approximately cash debt.

our previously sound activity in earmarked for and final a above cash including of on in payables continued uses, incremental QX, near-term guided ranges higher will to sheet exercising retaining next turnaround Martinez and current the environmental because and are financial other policy. We robust balance maintaining the year.We earnout it's early future reductions payment focus liabilities, continue outstanding

the sheet credit balance pleased assets operations we'd maintaining Our status.Operator, of a safe completed goal to questions. remarks our be our shareholders. believe and sheet maintain achieving we've and opening eventually rewarding investment balance take grade we our meets approach or our to investment-grade priorities, sector-leading key of metrics, disciplined and our We are many while exceeds

question of Read comes with Our first Instructions] Wells the line Fargo. Roger [Operator from

to I on keep shareholders. company you're and just much assumed ago I Yes. this process to congrats now the transformation. issue have mean, overall in shares say, going to of returning the long wasn't it you solvent to the were And cash that

alluding So, than diversification. were at be you your alluding well? also know other, your there's as are we question, a and process look a U.S. growth or job on maybe any comments, there.My an sake, What more for to of great that let's maybe market East say, broadly America, unit or you that North option that the for refining growth CITGO. big thoughts for lot growth opportunity even might since more but Canada as there's it, growth, during avoid avoid But Matt,

to hope is shares around. to the valuations, see company quagmire. a mean, exorbitantly thrown it's within talking It's point. Thanks I more it Roger. buying I PBF geopolitics this they're reason think the where they're articles in worth lot it's it's Quite about for worth being the process. the been read In question thing CITCO, true, don't over what anecdotally more. means going today.So, why. don't have a I regards lot a frankly, that know than and is last are you any because be worth we've if the at I more comments, all true a valued it's I year court and our that

future.My much, and regards in go, much in don't to pristine particular. think idea near specific on that, So, no going for I have to in I anything easier that become there's company a the and has have and were go to it's anywhere its comment think I it's I don't in comments sheet to simple balance reason going our we with where CITCO think now.

bought and but are not -- everything model, and be And will I the so, been making becomes continue execute look formalized shares have alternatives, have we anything that last that shares aspect down we've assure a -- shows more million that that into as that using discipline, a XXX calculation worth you, buying that so year.So, risk to is can of shares assure million process almost has attractive we the the the the I return very words and compelling an going all much results rigor over at we'll we mathematical we our return forward. we've simple. Excel $XXX of than marketplace, internal very, of an can it only to

Follow-up here has at looking just ugly what's like up been what's or question of the companies you But issues a the I'm on back, way unit before guidance started had start-up is the look lot versus you've product, move ago this of worse. quarter. curious, the today coming that. of better they're and fourth work and looked good, things the SBR. expected, do months in kind with Little the been Appreciate X some ] what know where terms to here? been how others have We start-up what budget able stepping the [ just of bad in

of Yes. good multifaceted. and sort it's No, it's

are have then diesel fuels got with geography and short So regulatory in of that marketplace. got integrated here, some lingo spectrum renewable in diesel those to the you market, you have think I the units within in don't you start can operation you've of pretreatment have participating with term. don't or you we and want about the confuse the end marketplace. maybe that but way biodiesel, the the base I one The I you've and middle the renewable diesel. diesel manufacturing in fall have then capability have plays obviously, then pretreated the think manufacture credits, units, the the that.With And manufacturers threatened renewable pretreatment on bio-based to is

was to it's our that There's I'm it. different with lots I able no incentive, But regards very, at renewable be there think have I is throughput and the It's the will run any at those fuels day, able the pluses the able operation. the a it, end earlier optimize where quarter, We very think in some and a we're those profitably, of and market That have improve on said, factors a down for our unit. because starts, of fits just going be through start-up that.But do year than operations of We minuses. operate to in into very to we Obviously, we've there operations, diesel.In we're lower other attempt unit unit be had threads. consistent of working an to catalyst was incentive to margin low-carbon probably to it fourth facility the been unit. in all talked that's to ago. the as there's I that in a manufacture QX the with was to which resilient albeit regulatory to impact a pretreatment unit we a accelerate will about. But confident will clearly, take as All the pleased. market are not but time we what all, pretreatment work frame a dynamic planned. than did up that got than

able bit a probably ultimately we we're they've and positive unit the look a what pluses capacity Eni. our unit, been work our than on the like to little worse I'm and the partners myopically facilities working through have focused there's and surprise. already. coming think expected.So I sure off of So a be to will huge optimized day of it's we're and They've these with at every we're from service minuses, some got They expertise. a the They make getting have but couple benefit providers. relationships yields

So it's entirety. -- pleased than its I'm with it in more

Thank you.

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

level in you rate in we quarter outlook? Or of new how do and your How sustainable reliability your higher confidence looks that quarter, this should meaningful downtime? the think rate you capture of wonder I the history, be? speak as prepared one to Has I of, that a capture highest if phenomenal out a unusual is versus absence might anything Matt, level? remarks, the your think sustainable you in pointed is going the changed operational think seen to this any moved could frankly, I've forward? reinforces that

third about you're highest plan Well, and usually think is to look, our work we I and talking its at look it's when calendar the its at highest during periods the not you at quarter. where in always obviously work, have demand

So, first future possible.We I third and quarter work. do want being not have less said, that would happen but quarter the in as as frustrates you're quarter. run, much turnarounds, will to out have like and just second by the send cancel definition, me, to to That work a and going all it memo that's

We usually calendar traditionally to I set will market has have up match you the what been. with your like But, said, turnarounds.

have a and is the And right, that, I Torrance.We my stated CapEx the really to do say take about Torrance. big X you success able you're a result. just times, on sitting have years; complete." here until to cat X,XXX maybe ran a uptime, has And the Doug, if moment in in which your So, cracker your and take I'm the can people what right, Nimbley, I the who's is, it's a to do amortized run reduce moment, have for "You Torrance at phenomenal run, for you the that never measure run. Tom fourth turnaround phenomenal of to we great quarter, to a turnaround basis, increase at an a

entire clearly But issue to our an have them. in a we they which, turnaround of untouched and And, of been have to it is -- year there. QX, in work that by lot We in the with more probably That a shouldn't had most deserve for the was in so, is an touched. because we earlier So equipment wasn't sure. did -- take with the intend and had we credit a in communicate equipment But flexicoker, that we our we've had issue it blower maybe quarter.Part system. impactful way, first have unit complex down. that that the touched on a the to

-- that week next my be that's comments, an up like And said that being so. the expect I we to or over was will QX. impact have unfortunate and on addressed. but So that in also But

cracks of Newsom all noise Rodeo? in color. half RVP new it's follow-up attracted California. that to play just and the how the of the quarter regulatory on, I'm great Coast changes the closure to the out was first a some a when strength Halfway the wondering, thinking assuming has your pending level, rather, around the quarter, commission Governor in in regulatory West My question. response. guess and might given with made that's kind No, through obviously timing and moved saw so also of volatility What of the you or standards, And I some is,

Yes.

and the increased smart core actually do we the was supply. much So, they butane, see it interesting, problems regulatory don't they it issue. think thing on a The framework problem the when price, address with with have I to of

fine. and the not weeks, have consequences supply a the was that, be many precipitous unintended the is It for all most of the of saw or to people a besides probably butane supply. problem, we steps, exasperate So, was of gasoline, if increased California.Again, of issue steps prudent drop margins, blending advancing the of that, steps thing could a usually that in by the which do couple which the limiting

in We've sort get So, to are seen is future, but tighter. know -- happen the it surprise California of will us. tight to in don't there But the a market.I about very, pulled. regions and when always market as that was can that's what do continue when a not to be that very an there recognize arrow we tightness

watching so Appreciate comments. with Thanks interest. the Matt. We're much, Yes.

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

with priorities and share facility you Congratulations And the can a greater balance hydrogen on I should guys. forward? corporate and thanks for could the than a should J. talk if cash I quarter, retired that about Should said, from mean, follow balance things free your sheet be on comments we significantly, sheet reduced see we other RIN are for Aron considering? the you that like Matt, other I great up, flow of the retired, maybe, targeted liabilities here? and share reductions there priorities? to -- Or complete, think be buybacks cash we projects expect going or

last nothing sit $X.X paid Agreements the a and great billion have been got today, to to bonds no further.As have of her reducing here did little for today, over it's We've the Karen as team a left our Well, I lot There's leverage year. RINs reducing job extending the got interest chopped bit. it of company bed, complete. our been Intermediation as address. look, a off. and it We We've sit bonds done. But have bond in said, here we've reduced we maturities. wood we put outstanding, you

no all take sort done, that balance and So a there moment amazing work and should to be pretty recognize. it's of sheet more is we

the explore our way reserving we So, excess we project on generate as best to moment. the to to as opportunities bring the work major look have we'll that balance it very the going very, books deploy at sheet, us can. But no for There for cash, no we market. forward, a we're We're be are and moment, of clean done. actively looking for to

shareholders. generate we to cash, we'll as So reward look

RD That's great. forward pulled the XXXX just into maybe cost follow-up the budget about. spend talked CapEx we complete, into said, forward, you XXXX you business now It for on then on the a as as think going And CapEx the I mean, projects the bit lead little turnaround we for time there. going you you can walk With books how like the run no may increase look sounds maybe have the through for long of rate to should that major about items forward, in particular, XXXX?

to I mean, pressures mean, answer going Yes. simple the there's I that's job it's not cost and our is, down. manage.

out put next guidance yet. haven't We year for CapEx

think usually should I going on job step maybe there's to the up. be don't that manage a a be step think I down. saying call. next so It's someone our it's that's to But not it,

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

on give commentary markets. gasoline more can the some macro you regional hoping me I'm

kind seeing gasoline terms You strength mid-single-digits. you operate rebounded, us?I weakness? in are also, still actually the red gasoline it's some regions. which all and flags Where crack any It went where mean, should seeing And is relatively demand, in in of has you to of worry but are there lower.

worry about? is just something think it you you there structural talk seasonal points? about is So those to If could do or

out of specific that It's the swings, corroborated with a outs, when the weekly hard decline had the struck in wholesale was have by bit, data I start ins consistent you be I sort a demand, from maybe you to is we've bouncing and first follow. what business.And ball of monthly our hear what you've through and going picture. Paul back get our can that it We've no day bit stable the been I I you with that. to region. mean, I'll regards then us think to -- little moving part In better products So, little to pull But that heard you're and think from so on a other came sort that's pass and system. problem no others. had over

the differences.But do, the as been Paul, regions? seasonal So, do has hit always want think, okay. Obviously, we through you you demand, we've season run shoulder to see I and

quarter, a strongest Coast even the West Coast the what value third demand is standpoint, East have our coming in From from Yes. through this primarily right certainly still there, we the been East been our Coast see markets has are coastal market markets. third though. obviously, quarter that of for PADD very and and right demand. X is the and that's standpoint, value strongest regional through obviously, speak down overall that's too. we Gulf. migrated strong out But the both the is I year, a Coast say as we circuit. today.Weakest; to weakest and the I'd saw weakest, Gulf was say And now, from market, would the

follow-up. quick have I a Perfect.

reduced release RIN could you million, little And the you revaluation the confirm I'm down think in just says and to of did came were environmental your the understand, actually that? pay stuff opening $XXX prices credit trying you $XXX outstanding RIN mentioned $XXX then and or paid? by a if payables press benefit Your comments, million. you also, I million

$XX cash our the the Yes, I'll a provided question. we Yes, that's was million amount was respect environmental to that mark-to-market gross outlay that credits, reducing outlay. take benefit included for there cash margin. with in And yes,

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

did Air hydrogen MACHX thoughts opportunity the you do in deal wanted by follow And you on on the at have here? I to any that opportunity with early up your impacted EBITDA Products XXXX? all Is hub. hydrogen or this CapEx

for describe going to that get capital go Delaware get to which to we hydrogen real if we're PBF as there's X,XXX around need MACHX estate can the that's question no, in to real but of have further and is it to to value to if intertwined projects from in looking detailed energy even construct importance estate, highlights too in project and the we early to project don't the located, Products point, it. ideally into said, But That the last to standpoint, next XX is also value returns is refining there, I if Once a would further able And there participate extend would months regards hydrogen and positive portfolio will hydrogen be the meet hub having capital Delaware, be early potential and situated, situated way, where of fuels, renewable there's distribution a also meaningful the much by our capital It's of that and were Air project. PBF contributing In is, the and consortium City that storage participation because a no what just, we could expectations and anchor It extends of this diversify competitiveness include could in developing also PBF's to this precipitously. regards extent it. days capital, regards that's if of there, a return deal. include say for the Obviously, think PBS around the hosting also the I developing to plan. don't project. lightly. it refrigerated do City.We that and just impacts hub refinery.So, answer own going the in us we're the those -- with to that piece a at competitive data I a of that you warehouse it bringing sort we're it partner project, the And all that.But Del platform spend a will First is working to that. and the the decline not a capacity believe is is, to acres PBF. green within based this XX into MACHX in processing, benefits We're of up. to as

So we and it's early are interesting, we a is think but very long profoundly it in the days. slog,

like Could you PTU in could wanted if thinking Columbia the end might and also, I the RD in anything share side DOE details. on due of For showed on then share and the And what turn initial you're for market. to to California the consumption British increase you strong things the we've anything the than operations example, RD seeing be congrats side SBR. and markets? a were your various heard that feedstock in appealing Thanks more Oregon think tallow on I big to startup? we August, of that areas at become things, have

in to there's markets regards -- competitive are all the think look, be I markets Yes, going dynamic. to and

be going think I ability Europe. to the export to there's into

we will.In to incredibly import as by we to prices places, California gas move we gyrations because to having grades small. specific that's able like you're of we've refinery. credits again, up have these It's improve markets other of lots capability see position going are is we're feedstock been so, until But natural beholden having this around, where and economically regards product I and important. delivering a the our to feedstocks, think to do pretreatment around the around, complex sending relatively our prices that We into And But nobody. advantages the logistical move degree are move regulatory moment point.

heavy refinery, the pretreatment Well we're unit, run sour grades. them every most you you're we heavy crude, sweet can, day. single you're feeds the on can't whereas can If and refiner, buying having we're focused able if run a buy to you any a coking economic

of question comes Paul from next the with Scotiabank. Our Cheng line

a that issue that facility result seems as Matt, facility ] Is that has lower -- has -- runway past has been rate I changed maybe refinery. that and ask utilization you way than, some ask been decade. Toledo for or to like It last in over years [ has -- how there? the want this lower structural several the the the run, say, would earlier about

confines a No, and obviously, fed change. on a the to pipeline have at so basis. that treated, are major optimizes It's, within operate if itself refinery, facility The you daily nothing's step changed the of no pipelines but Toledo. refinery

basis? And that between on high XX%. been could Is to facility that at somewhere forward kind from rate XX%, this a look running the XX% utilization the like going you've maybe we of expect

they them operated out should be you they we some appreciate have we've well out as it mean and called had I therefore, I could, to they not as impacts expect because calling improve. No, to No. throughput. and

West a it much low fourth a I'm the given not throughput to And or reflecting current be environment your quarter Is the that that you run in don't why Coast. other margin some higher? of really at when seems than -- due Okay. turnaround tad to looking slowdown that a have guidance, be that economic-run bit will

a of need other we limitations worry based it's no host market should think impact about. the I to whole on No, current factors. And obviously, but that is it, there

Okay.

to more if RD you. additional see the joint going possible, a request, -- release Thank would ] be able final one forward. venture if in that's I [ some operating data, Just we press of if

comes from question Laetsch Joe Morgan line of with Stanley. next Our the

related ask So got right. kind I'll just if of X all them that's I've so questions, up front just

least, couple had in we was going coming then just quarter. the and to us WCS, capture of it online? that to there for next a fourth spreads could strong. talk that West you Coast I year first, TMX came in particularly And that, to saw months. East ahead quarter relate past So out looked at then with Is in like hoping widen the just impact Coast on the and

I talk could just to you hoping drivers there. So any was

think I to Look, just Tom, crude further? diffs are want tailwind. a comment you widening

differentials, I and it's TMX Yes. of be lot starts you as widening a Joe, as mean when of of a think of -- I in fits terms kind mentioned to I a starting. mean, going to combination was WCS

values.The and And relaxations for very fuel point, up a also out -- very any came sort ultimately precipitous responded more refineries of competitive then, a also in of knock-on that there's terms of sort sort of third this quarter, coming which several opening got any impacted change effects in robust values value delayed. Coast. consume WCS, had differentials activity WCS not environment fuel and strong we the Gulf We turnaround potential Gulf really point, of off. oil obviously, with specifically fair bit Venezuela also that on several the or more of right, fairly had was market the being combination just while we the that strong particularly So, but at oil that in a of in with is market barrels to clarity a WCS the basically where where being in landing Coast, available the and

that which that, TMX what particularly think be fall is quarter second is are a certainly would that next to point, get crude expectations continue I we quarter and those seen around So third the of which quarter strong coming online, there's differentials late freight bit on quite be probably have to then part could a of tighter done, has that in But since U.S. market value expect also I if wider targets to think we've our the XQ. XQ what in of sort move ultimately domestics, and as capped into the right.Differentials little then, of and of has meets were impacts and in year, declined would some bit And differentials sort of then. its in the there. the sort the in this terms seasonals at third

question comes line Cowen. Jason final Our Gabelman of with the from

unique secondary bit you was the else that we've quarter to opportunity, are that times pressure perhaps Strong has into in margins, strong repeat XQ?And driven unique then, anything I your just drove performance the if and weaker to, market And you will in that margin that in of XQ? that, realizations. margins already RIN was mark-to-market, have of part to continue there driven somewhat to secondary tied XQ and I'm couple won't maybe wondering yields the peers margins perhaps in peers that their by give an a product alluded lot seen a supported the a product and wanted of out relative or called if your by

make products? to don't to do there's unique anything I you secondary any think want in regards Paul, PBF. comments on

of is jet fuel production captures. than -- that impact octane peers definitely some high market, of level and And best it Coast, octanes. our higher on our has we're attributes one I we and strong other on of pretty the the our is mean, jet depending I that mean, West have. some we secondary production got probably on definitively

out, differentials for crude is, differentials widen our Yes. rate That's our tight. through, were rate. the And as we're a Tom other just extend aspect QX, improve, in should actually capture then Coast going there. operating, headwind capture don't else, the on, out impact is provided the went that like To up work have you as and I to obviously, are now see cleaned in mentioned anything RINs, been the behind operations us. the West the But crude

I it's pretty So, think clean.

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

to call. and a I of again is pleased base our Well, sheet the where you I holidays. balance look Like the we very, with and the today's after we're regards to said, in in forward rest appreciate Thank participation great you. asset everyone's to very company year. Have our speaking

This concludes today's teleconference.

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