PBF Energy (PBF) 15 Feb 242023 Q4 Earnings call transcript

Good day, everyone, and welcome to the PBF Energy Fourth Quarter and Full Year 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, Kat. to welcome and morning, today's call. Good today and Karen me of management are several Matt CEO and our President our team. Davis, members Lucey, other With our and CFO; earnings website. including today's Copies XX-Q and available our are filing, of on supplemental release information our

I'd release direct your of started, express on call and harbor those the provisions attention Statements release. the to forward-looking today's statements covered be under safe are management's future that predictions in federal made the contained press like expectations company's in getting securities laws. to safe to Before statement our or the or press this intended by harbor

to on agreement Consistent included today, release, after-tax In receivable cause expectations, quarter excluding offset change will we special special benefit items the items. our are describe factors of adjustment. or inventory described of prior the cost in filings share, we increased market the impact discuss acquisition the a There a to relates to associated our to SEC. a tax results fair $X.XX in differ contingent our the Martinez the in actual special including of $XXX,XXX that SBR share the by our quarterly a with and those liability, of decrease results from of today's an our primarily game formation our could SBR change lower with value and per of approximately fourth we periods, in related our amount press consideration by many results. cumulative the The results items with

our is of first release XXXX. today's to in included further the guidance press quarter information for Also expectations related

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

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

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

in year best PBF last XXXX. achieved its As financial the year, on box closed we second

we million Over the share our our enhanced to of $XXX $XXX company returned shareholders by equity course purchase I'm year, The Board buybacks. approved was million, through and able over in by we further value directly of an Directors the reducing and our pleased million debt $XXX the share quarter. has announce to shares repurchase authorization. that incremental $XXX fourth million to of dividends

This resets position year capacity. financial We over with remaining complete billion balance transformation program our sheet to just ended of the our and our $X strongest ever.

As Operations West quarter, reasonable. clear at we Coast had operations were the Coast the look the West challenges. outside

broadly well with and their Coast performed Coast prior markets East Gulf capture respective with in quarters. systems Our rates in line

were Mid-Con numbers. While Toledo gasoline or challenging. At cracks negative times, operated well, the at certainly was market near

quarter phenomenon seasonality. in the not new to and the is Mid-Con This return a normal during of somewhat fourth

product the a recovery Importantly, February began. Mid-Con in we've seen as cracks

system to an convergence and underperformed both Our circumstances where planned of activities. largely assets our overlapping unfortunate had maintenance. West unplanned maintenance undergoing Coast This was we

While not the was reality. plan, the it

restarted as at we consume an approximately inputs, increased In mentioned flexicoker Martinez. we and FCC turnaround operations. Coast, and was heavy The which the of West And completed delayed major you'll a in costs. unplanned expenses. last cost profit and the as Torrance. of million getting experienced work our million quarter, on in work additional FCC unplanned the at $XX percentage Martinez' QX, In that operating delayed downtime in $XXX Martinez lost see looking through less The Torrance rippled coker us we restart the crude tearsheets,

products, high-value yielded gasoline. production Our less notably

over in in believe QX will 'XX, first clearly Coast to quarter. our significant demonstrated Again, result was be few will As the downtime, in years. our disappointing of I California, contributors in system has delays crude a last we did be consumed build results which the high-priced inventory, while as the it West

Looking Coast beginning East Toledo on in this the to FCC the March. month, across have ahead turnaround in we beginning turnaround system, hydrocracker a QX

Indeed, creating across tightly constructive, market in has to we positioning sustain the that remain market maintenance builds tension to U.S. been is for the accruing February. our historic industry 'XX able patterns including with to Disruptions outlook to balanced. trade industry significant perform PBF. refining increasing, refiners, refining inventory The product and specifically remained refining demand. flows With on the and potential. space refined improvements to are growing as such U.S. demand balances tight not we focused product have levels is historical Global and capacity, and our are in coastal refiners new cracks in additions seen assets their in

free With this value and cash favorable long-term flow shareholders. PBF earnings for strong continue and generating should our delivering market backdrop,

reach the a mutual front, we particulate to we're investment goes pleased effect settlement have agreement where with will the an to will lowering On regards XX Quality July regulatory forward incremental District on path rule Area are of Rule mandated report Bay in Management Consistent which XXXX. reached to Regulation the a of with any with expectations, the without emissions. XX, achieve able goal we comply Air into when that with we

Additionally, we the or material changes do our not product of as to regulation. yield, a any expect operations result

market operations, will global continue quarter, adapting system be consistent be PBF, in will disciplined, capital saw the maintaining in The refining allocation. always, will we to coupled activity particular, from As with volatile. The combined be, rigorous on conditions. as to nimble focus earlier markets in and

in including its daily on year, our personal a of employees and Karen, all take to our business, I who best for PBF This Before in segments thank call work employees contractors year basis. to publicly moment the turning perspective. is a across facilities from safety safely. all history PBS over want the reported our our to operating Last a

professionalism turn with incident of care. company testament The utmost a over person focus and and the daily achievement lost that, the lowest their routines with rate I'll in in every history in time Karen. our of to the each With is the executing it

Matt. you, Thank

an and loss per the net $X.XX share reported of quarter, EBITDA adjusted For adjusted $XXX.X of we million. fourth

EBITDA share year $XX just for refining, payments $XXX more Cash working the a million full million, than of Consolidated adjusted $X.X the quarter from $XXX and XXXX which including was to SBR logistics adjusted $XX.XX net for of and costs. related corporate income For final approximately includes CapEx PBF quarter billion. operations benefit of $XXX reported $XX the and flow capital in million. million, fourth for was approximately construction million per

approximately was year billion, XXXX, facility. million CapEx complete $XXX which full the For consolidated to approximately includes FBR $X.X

consolidated reflected On basis, go-forward for PBF's a numbers. in FBR will not be capital expenditures

repurchase paid more over $XXX dividend XXXX, shareholder in paid we increase our We $XXX last program. In the continue dividends the to our million, commitment to share PBF demonstrate quarterly $XX repurchased quarter. reflecting of in fourth million approximately quarterly totaled than announced XX% returns Dividends and the dividend quarter in shares. through and rate million

fourth X.X year's million over more in completed was $XXX stock, than of December we time, through approximately shares. in share we yesterday, introduced quarter, the total million $XXX a or the million shares. PBF Since XX.X [ repurchased ] or million program little have just In of XXXX repurchases in

XXX count reduced total have share We to million just under shares. our

was sheet commented our quarter work our During complete. to that we our largely balance call, fortify third

which turn over Over $X.X the our by we debt billion, annual years, reduced reduced by past in X million. expense over interest have $XXX

intermediation by our credit million, totaled $XXX At environmental nearly cost of equity at on payables. [ metrics. credit our billion liability inventory These our fully with overhang comment million. of payables efforts, outstanding ] which In balance $X liability enhanced sheet addition, reducing produced retired the a we environmental have by our and we was committed. RINs a year-end, agreement One $XXX the and value level investment-grade eliminated our

With normal. achieved the would balance the brought range of in near the XXXX, what down reduction we upper have we consider to

the PBF'S credit balance just number of commitment reminder, rent. current a represents As a programs, not across environmental

that the to we Now $XXX cost. long that strategy, the we take and our million in in SBR, actively to in through reduce this we based credits of term. manage $XXX range of consolidated order to generating on advantage is balance pricing business positions commercial structure and going overall our are our to may market components maintaining over appropriate Individual expect shift million the are

XXXX, reduced may year-end depending the you and at balance the fluctuate commercial can the expect outstanding million be The was of strategy. this quarters. conditions coming market over that Over on range to to course $XXX

debt. needs We of the invest quarter's are the note, components of ended the Martinez long-term shareholder $X.X to and the the capital quarter cash nearly play final assets. sheet stands with financial of firm Sustainable our objectives, estimate dividends operations of of payment remain A to from continue approximately important generate beyond Also to continuously return almost repurchases overall last $X.X should billion of allocation in in now cash our million, available requirement $XX at billion and we down which footing and balance and expect share business strong approximately and percentage $XX To million. returns. April, be shareholder maintaining greater the our extent priorities. our the cash in that for of earnout,

Operator, remarks, will that any lens the we've long-term opening opportunities all shareholders. questions. our option and cash capital look we value though, that take always, completed our directs at allocate As to be the to pleased for we'd through generates to greatest the

[Operator Fargo. Roger with Instructions] your Wells comes from first question Read

gas of IEA I but your hit do as some in the had with side. Obviously, East on storms guess, pretty a it Coast, oil look had with how in and some the rainy things was you cold of looking how in industry. nationwide on across weather curious you've But over look just demand I you those the through bucket of items, the snow kind water demand you comments Matt, We approach. your opening the today out see California.

it reasonable. Gulf weather in don't it's but And people how seasonal. people touched impacted, here to think Obviously, the we some California, in that's indeed, in That really to really seasonality you drive. I cold weather. go wet look just know when in out. and If on Northeast. And it's had generally the don't the certainly they Coast, regards

on of pleased going of in the constructive. looks last more back think, year, pretty the couple the I over to soft I'm fairly the overall landing I economy where much GDP years, was going remainder and cautious the

don't should cap way the but think company. -- road it your you about way the until shareholders, the IG different Or cash Comment IG should you returns Okay. made And you're whichever method then look let's you doing we as as there and that you about or takes. receive know, really alter Is will a rating? the it think nice things feather having and it you a call the have follow-up that, let's anything for at an I we sheet. down returns in or like doesn't have on share, to something call be quality balance total about will help it, what an it

I'll of there because couple right make Karen We thing terms differently, I the doing do, to the sheet of and balance of of in comment trade already we've it's then are which credit. ask think comments in having anything maintain a don't number that and benefits, gotten a of some terms so. to today would we're

participants the can market see have that through We agencies. rating

was and That's that's just born where began my I agencies meaning us. the and in to to banking credit I a that's world, reality. credit news the smaller, are in not going of career be

We have them. each relationship a of good with

to on pull think metric any demonstrate wants a we're indeed, balance that continue have sheet to someone to I market-leading we going off. credit

take reality our is, didn't if any other exist. had we want do would if time. the have but credit rating So the don't will for agencies business recognition We we're Karen, comments. I that know you as what some operating

capital would not of other of reducing base and those benefits expenses. strong investment access the achieving fundamentals we sort just it But only us give underlying be longer-term on also that average a certain grade an our based of is and think our weighted broader cost greater to obvious investment-grade goal of add I of might that confirms we appealing, or will that are think, that to a the rating, shareholders, investors. are rating

comes Royall JPMorgan. question from Your John from next

last point. the much just to clarification, a that mentioned think, call? RIN us to $XXX on liability that could $XXX may next? dwindling with feel if just like the question us help missing I you the one this appreciate I change million I you $XX to range million in very So million Karen bridge be the apples-to-apples think something gave on with the number. But target so, there, I but at my million is that just and if And could from the you it $XXX I range. it's Is first

in RINs in number Last liability. that that we of be year -- in the we of thought -- would last guidance represented gave we quarter talked terms

You and cap including and credit think liability now we're viewing whatnot. the trade more like environmental holistically and things

all range and now so credit is inclusive a dollars in programs. terms of our -- that of we're expressing So our of

think we think SBR, That's but And And you on we adjustments RD. lost coming an nicely first change, helpful. you then out result did to $XX should about And catalyst just quarter I correctly. I those know off about had XQ. basis, on the how for positive else adjusted that's call anything a million there? if in a

changed. of Nothing's come down -- regards gotten A QX. have couple developments as in the positive we've path to into

score will all expect in We for get carbon regards of to feedstocks. that actual our QX, our low

that QX and will come expect We the quarter. actually in to whole in, applied

a that's development. So positive

Europe. in to be expecting also are We X, spec-ed be to into quarter able

feedstock. requires approved That

have you a armed are into looking bit to only that's approved our system it both but the forward. Europe, a into positive we'll developments that. get in be to but going able take will to where those feedstocks that requires not longer regulatory fully of check little So That very box, also

Looking impactful in then on change, back, our in other catalyst the there and about obviously, QX, and things was LCM the noise we some charges call financials. around was as last talked

comes Leggate Your from question Bank Doug of America. next from

to or something there impact probably about was buyout if we to start negative. a is for -- net that year, -- capital both let related whole me are working took was of going the Even year net with churn had inventory sizable should this capital. on still comment expect these that reverse? that building? Or you you, for maybe there Karen, Is fairly a earlier working there crude Matt's -- we

That's I to is outsized and million time. within impact there main liabilities. all we quite Doug, reduce No, that there the in think the $XXX environmental one spent the credit

I working of that see forward. So capital in an think you impact going less will

stuff. Great

reverse, but correct? repeat shouldn't it So shouldn't either, it

it. that's the about way right Correct. Yes, to think

East saw East like, or bit this side that Coast is least We're to miss East your Matt, your on -- quarter of of relative the where we rate, LP it's did a freight your right. throughput, the that worse trying thought? to with you as Coast weeds, ] think with capture cost better the I is out Dangote says this why there to pool something or on Is in point if [ a we All do figure the but if in of gets the anything going that crude guess, the kind started. perhaps normal to maybe at about can bit business. the Coast amount earnings how you right, little

to Coast. regards make in not No, comments East Paul, startups. would on any you refinery

No. I honest on the out didn't you East the guys. mean, anything I to ordinary don't be of -- see with Coast, I

into the had to we while differentials begin widen. what -- have over You takes get to is quarter a That plant. the crude

freight -- But the to quite market of the So that benefit see I you see There's that, a cost in of another side first around on water, obviously it. materials you'll on expect quarter rates Cape up shipping. indicators the lag navigate crude. Good which the and freight the of more realities demands gone around Doug, honestly, result. a the And The on of Hope, means increases as to have having

I that the think net higher crack a the in Coast. resides East result on of

So it's on negatively I East there's nothing us. to think markets, resilient our it's the Coast, but so impacting extraordinary

Ryan from comes question next with Sandler.. Todd Piper Your

to there? feedstock of so last your you're over do as has gone What's X operations a How operations? maybe about And in -- talk perform What's few you what to a the I you X, Can about far? often months changes X X, evolved X months high mix challenging? things catalyst months little mentioned on but level X you've guess well? you maybe SBR, Maybe over there. expect learned been how

work high-level and to of going think but been plant some operation so I make it's getting always experience you're I'll in it, Yes, comments. make some to out -- who's on Fedena coming did extraordinary I'll we charge time. Directionally, some out the ask than better loans ground most. comments, Jim in of up an that there's think that I far

to start. he relationship some was has terrific think, of back I, over and in I off Our executives their been December. a I with with

state side team their our are working state -- indeed, some we're this And of with executives week. their and side

So and And location, disposing opposed could the as interests as well as Chalmette I asset, aligned it operating the options would think a you going all give and benefits geographic go very focused expense absolutely which tied as to get some on Jim, particulars we on any products will great on are terms the capabilities. expect. wherever partnership, gives right SBR's market is operations. we our obviously, in to is think, well wherewithal I in the feedstocks connected side. very, X maximizing view still We into And being of best. we of to other the Tier California, have

add from a of out change -- catalyst about and end isom the an on you in or every change is catalyst the annual Only the the thing XX so, I'll basis, catalyst months out perspective you change-out unit. back

the The other here a the that's to We indeed, PBF what surprise marginal reduced more it's R&D And bit to and to to obviously, those not market. will were credits as of And players and we're players. But the market just marginal advantaged put I supply down. in that well California is think shuffle ultimately out do that impact think 'XX. for -- will supply side where over continue they clearly where pressure on going certainly have is I expecting. R&D a thing is down come us. RINs come for credit have macro prices regards much And as down, more less is as

maybe not business. the renewal to That's rest on West refining on but the helpful. of Coast, Great. shifting And the just then

Can what Coast terms couple about And over overall talk seen market margins big seeing on your dynamics operations. there opening higher-priced last going supply-demand weeks. think in the You've you're the of of first capture I to way then product through to just in there be West that there you margin you dynamics of headwind kind in a your balance within the California? say in comments there? and you're there a your in of And that quarter to still working is to inventories kind did crude going be -- clarify, is

poor question carry will around Look, will. operations were I we there's be give and -- us. in carry -- will comments don't that will it. behind over but comments no why first the over It to -- what California. had the that to QX that then that and quarter, day see in Paul, inventory regards extensive in that ground you direct every you

The in to is Los out gas gas California move markets big seasonal really change summer in the from of Angeles.

the at guys every big cracks seeing on you the day. pop that's you're that look So

the In well market addition pretty that, bid and shut from arbitrage to Jeff Dill the in Francisco Asia San with L.A. much markets down. is

So moving demand a you're of seasonal market into -- short seeing periods. the impacts the seasonal high

Your next from question UBS. Manav from comes Gupta

built Mexico fuel you into and XX% X the haven't New in ask little. days do. -- days goes of And have a we like low X from developments the these renewable in which diesel that passed X aggressive a to could hoping before. passed ago, or you It information this to than program. standards looks XXXX. A very I it so effect couple wanted appreciate few happened seen years, about And ago market go fully the that the are more but I a like it's -- Senate I'm carbon

New be in you And new could all a work the works California? given besides to you direction? this Can if so to out, your for if out I'm product location, market Mexico things this move just this understand trying

New I the market to about to to happened thesis to also opens that. up our ability is think what -- barrels, New the that say specifically would speaks the of in other over Mexico into the It's to Yes. manufacture New to is diesel, incentivize One, it too Mexico. in the competitively deliver point other markets. carbon in product of degree of And But R&D. organic Mexico the course governments draws premature say time, I investment Mexico price renewable

not Mexico the free it So ability each cascade but will with up other, particular, in focused our demand in other on so impact to markets. these I'm and direct New market all things

and I constructive certainly it's investment consistent as said. our theme, with But

Perfect. Mid-Con follow-up the parts of of in tracks abating It My the this what goes you Is Coast, region it call. to And kind Mid-Con are this quick the looks seasonal an seeing cracks. XXXX big overall earlier you was you rebounding. just as like in -- a and and mentioned -- is we saw weakness. outlook Mid-Con this West weakness like also it's the should strong the are this expect as in on you terms of market? gave

I we were economics see normally quarter mean, the annualized an the something on and in basis. Mid-Con fourth seasonal, it's

we into falling quarter, you're the to beneficial seeing cracks definitely Whiting As and the move was that. over first

But the to There's been in So that's X QX we're forward. we been come are cracks get QX. forward. the expecting some move Those catalyst Canada for going and cracks to going to PADD normalized of out think X. an PADD end, crude advantages I into as

next question Neil from Goldman Sachs. Mehta from comes Your

Yes.

the The first is? the today? think And you've big are M&A. opportunities in what's a is about of what market just there? the overall gotten And question to mean, context PBF how think thinking Do capital are the you story still of out been there framework you you're it's about? thinking and you part do where I allocation how we're

on comments, speculating full activity allocation have and other rigorous and There's against judge nothing a we discipline we've nothing M&A We comment the But allocate mentioned action. the anyway. think each in different what best M&A and in year complete. base I to is it we today. as been the don't and on projects last We're address capital moment. We of There's think transforming I again consistent the everything mentioning share in -- we've focused are mentioned left We'll the balance so it's case them in I market, as with the can. sheet, evaluate quarter. done don't at about XXXX always talking internal as buybacks. XXXX, sort it's that. it immediate It's there. worth And of M&A, the on than we no effort. over or Well, capital our

we're any it's And how we company opportunities, allocated. cash, focused opportunities whether company, got as simply forward. now we've so be, alternatives a returning as we get dedicated cash shareholders, And as external generating generate on internal analyzing should cash or team all go we to

you're particularly which your And X margins this just just extraordinary Do a is alluded is the or balances, margin. years was follow-up in perspective that you mean seeing refining on to structural love to how had normal? context new refining, a X of believe global We've see do of earlier. you reverting

Tom And interesting. make comments. Well, to it's I'll some ask O'Connor

As I as here today, was of yesterday. I at looking sit it

cracks looks at calendar very the comparable If board 'XX -- it for actually you to market look 'XX. 'XX,

revert I mean there's to that -- mean, and some going the there's been of as predicting. a quickly think maybe not been to so we're as sure reverting I'm discussions we're to the

difference the very, over been couple a even, the is set and inventory been struggled I build a very and has in we very -- to has thing centered mean, industry of regard. were what is. really historical that 'XX the has as constructively, said, market from I last big the there's But where obviously, up And mean and big to 'XX in years,

to coming be And we very that's inventories on. are so capacity sit very, going tight. and here to going XXXX, There's be

on growth expected. equipment I over it's or grow. demand take coming that to comments? frankly, Nigeria. you I complex, incredibly in probably additions got the takes their right, as large my will both would quite in personally other continue Mexico for as worldwide, needed O'Connor, are on think products These And But make that longer. you've very perspective Tom -- and is would own any experience time

year-over-year. I got in thing we've lower Neil, add, over big is I a at if RIN would to terms was $X I Cracks $X that think looking start saying, Matt cracks -- in certainly mean, right? basket we Yes. what lower, year change is of X but

that's realization, So in terms meaningful. of product

the the with are about probably talking stream was of really that CDU additions -- the coming of and off the much A Matt us further on right? the out, starting it being year. secondary in this units As refinery are part coming is lot next on lends are that of year, up and form

terms actually those the market, in is secondary other FCCs the and feeds on mean, the for can market when I nice secondary of the come tight for mean for that be and in right? and units quite of I the the coker. cokers terms all feedstocks out helpful FCC

lot secondary particular, to for bit what expectations increases a a lower to that took XXXX certainly coming units. units some afterwards, I that. It was things in than will was in we'll CDU I place we've think in our were, the Gulf that refinery So been of similar sort there's expansions the market, from and when the of in that the to see increases seen past Coast be secondary come without right? mean VGO

Your comes next from Paul Scotiabank. Cheng question from

look I lot is and pandemic, mean I -- since at the I if of market so Matt, a up volatility. and condition the on down that mean,

the region, or years? or That's it the bring maybe think reduced about down so. XX% couple of the CapEx since company the in baseline from company turnaround the So the sustaining in And this each is the XXXX the question. to the unit gone it's difficult cost now? what you also for look that that also for initiative able us that the outside over of like will that be that at, have and first looked up Is next including -- new the to we

And your been over outside number in do other refinery there? be better look Toledo that What's also and Toledo, Secondly, the of for that to you has operationally, could the of is at operating a we worked have years. we "Oh, if performance struggling think, plan there may any done." improving in terms system

for with In first of job if particular, some inflation our consistently It's to and Operationally, storms from the run of last thing quarters pretty pretty biggest it will to operational be to the single some OpEx efficiencies. and regards it's due improve. and offset OpEx, job will X. Look, XXXX, the as running to that go back In in had much reliably year. weather throughput. Toledo, to regards you to drive has Toledo upsets continually of the our part X through the they reasonably increasing

And obviously, last quarter. that California didn't do

the see because some incremental of so aside And putting you'll of downtime. expenses

is barrel on control, the natural that It's I'm you XXXX they over basis off with out a than encouraged. heading OpEx to don't well. Your years. into obviously go are our have we're per certainly operate going gas been but of of prices better last when couple

a got tailwind. be included about a projects of a that return regards to year, capital, guidance at think of So guidance In over in the $XX million each that I earlier the of refineries. projects, and bit discretionary -- should the we've

full the other any don't projects big our of at moment. -- That's we the have extent

So I out is year. next $XXX we year. this well. we put In $XXX it think to million year to going yet it as number the million still believe ] of for regards [ a full And I have and still forward, what capital higher that's may --

than is and the point. some very, result, incredible indeed, period, But you a appropriately so. higher X-year year, activity. which was have result see tweaked normal this had lows end very and where we up paying turnaround programs were capital piper highs odd, at the just net And to You a incredible as

that X or And make other degree, on any I X comments was previous capital? would you the by years. think Karen, to great a impacted

complement look is history, really at new of to No, the Martinez had is year when system, first point the of CapEx. just kind out a whole we've this to and other we than

cycle your Karen, a average is the haul, mix? asset company you the what do for long the normal spending on number over well based current have CapEx

$XXX $XXX that probably a we think to back remembering range. talk in $XXX that about normalized $XXX was range to that to And used looking million I million at again, history, million, it's pre-Martinez. of but million

Our from final question TD comes Jason from Cowen. Gabelman

compliance Southern Or Quality First, Air your on you peers is Coast discussed I wanted the with Rule with that And that? ask, wondering, compliance I'm have District Coast related you in that -- spend a to South Management comply something X the to are on money in to in West with? to California. large project already of

project some rules, extraordinary not numbers would the there's with money PBF. to shared, Karen above always capital I just but for we're spending comply nothing any that

Okay.

So then need more volatility. to or that was second any one was either liabilities should believe mentioned? in have addresses on you're comply within that be market liabilities terms then there And of refiners just hearing we Okay. there address a proposal require other that some in NOX about out looked order Southern around -- in California I'm year you this -- you you're commission that? mean yesterday thinking on having environmental that like if broadly, the calls wondering comments it is you And beyond any gasoline the stockpile whatever And today. emissions a I was there to of I the to in my spending to California? cash

don't I agency through private of company flushed don't hold. California great paper or this at state and laws. it's that dictate things. any much In written, essentially And regards think to do regulatory was California, degree. a evaluate on The I concept Obviously, think thought to they the way number make regulators speculate. concept. it's point. there's how particularly within don't too out demands which think early think, any the is, to I was can a can think any inventory I have I to of it to The the government on

the far And the that. -- but was Commission demand been it at speculating in this so have to tight. hasn't that, was so improved impacting The flushed I steps point. it's not we're in through, don't and as that California taken down, concept probably terms think not seemingly market put and has supply The the Energy of there's a California, market, problem is supply gone they've

more then -- And it. Got broadly yes.

What was the second question?

Just there other be any cash calls thinking environmental for on are should about mentioned we terms in ones the of liabilities that that beyond you XXXX?

to earlier years joked Shell. fourth I was reduced payout the I the mean I where quarter and something -- think and XX No. -- the ago from look

reduction we that but I that to anything $XX ordinary. call, And a on out expecting the much don't million a see be else capital were so so a to larger that's declined major number net where

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

day. we in prosperous and today's We a call. everyone, you look again forward great for Thank quarter, next you, look forward to to participating a Have speaking 'XX.

This concludes teleconference. today's

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