PBF Energy (PBF) 31 Oct 242024 Q3 Earnings call transcript

Good day, everyone, and welcome to the PBF Energy Third Quarter 2024 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, Brittany. Good morning. to welcome and Halloween, today's call. Happy today Karen Davis, me our team. are other Matt CEO; and management President our our of Lucey, members With CFO; several and supplemental release XX-Q Copies our and today's available on earnings filing, of including information, are website. our

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

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

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

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

a quarter of third poor market weaker that conditions, results refiners. challenged crude combination Our reflect margin differentials environment and

should, in the during weak The well We refined supply who still a of maintenance of reflects view refining products margins as not backdrop had the the has for all XX/X employees demand quarter. gyrating had market ran focus experienced grow over for constructive continue the of The to much reflect operating factors dedication and system are that refiners medium performance number balanced. conditions work and downtime. This our refineries our market impacting material outstanding Our very our no and product unplanned do tightly products long-term, recently demand. year. a to that globally. XXXX balanced global the planned or provide to longer-term remain tightly in assets demand supply negatively conditions our

refined U.S. the in and less world resilient, the demand has demand rest While constructive. improved the in the of across third been generally was for year-over-year has quarter products

million side, planned has came impacted additions XXXX be as a and year. net scheduled On the supply day. front been has additions X seen in adverse turning is planned of for that per timing shutdowns market in balanced the by announced barrels capacity XXXX online 'XX. XXXX refining are approximately more of to

list Europe shutdowns approximately closures, per the announced, North barrels of XXXX, across America, or For is X and day. Asia million

oil and stated, crude was strong headwind over was to quarter. a refinery particularly across QX margins As significant the

are seasonal now of out burns. coming seasonal demand Importantly, crude runs peak period of we and high the

operations responsibly. not we challenging it sufficient developing team reliably can focus has safely, operate announced XXXX, see continue easing market. In contrast approach cuts we and eventual And a in our our As we the been mind, will are flexibility environmentally to position necessity, it and safely, a With our We initiative must financial sure from any of more and, conditions refineries are efficiently closures, we itself. must provides markets. unto to relief weather OPEC of operating cyclical perform across to fewer previous safe us our do PBF's well improvement make with be footprint. refinery calmer business start-ups, positioned cycles, possible. as investments our as sheet that is should greater refining reliably and as that assets is a responsibly, as while landscape. balance and Market the secure, With and role on maintain responsible geopolitical stewards in to hopefully, to as our and

system, We and capital opportunities in expenditures. have costs across both identified our in operating

We have commitment this take continuing by Capturing and run in year-end strong our from improvement cash ensuring savings million and that focus organization. can XXXX. will $XXX critical opportunity sustained and rate entire deliver beyond we conviction 'XX is

set targets clear and expectations. will We

will We we will hold measure people and accountable. execution,

our We we will all intend future ultimately on this updates be on accountable provide calls. investors, to and initiative to

operations nearing renewed Looking be November. primary ahead, focus. prework on we completed September, of half efficiency attention of our the reliable, remain the turnaround in are we Chalmette. In completion meantime, last of safe, at in should late began first The with major responsible a our year the and

greatest continue of returned approximately to share will to cash shareholders. We in long-term third in allocation to million We capital our prioritize shareholders, the opportunities repurchases the $XXX value deliver including million to the through quarter. $XX

Board regular Karen. to long-term outlook our for in per of our represents to the XX% call $X.XXX approved dividend our a a share. in to not increase quarterly vote confidence, business. With but increase medium- the to The Directors I'll of also turn over Additionally, that, only operation, our

Matt. you, Good morning. Thank

of to adjusted third loss per investment in EBITDA our loss reported Included equity $XX.X $XX $X.XX a Bernard PBF's adjusted loss the quarter, net million and St. we related For is of an in million. share, results Renewables.

the work XXXX to CapEx was $XX refining, logistics. per second quarter corporate our used RD of the XX,XXX a Full approximately capital in near were third the million. during the includes renewable quarter. guidance average an earnings and for costs is year for in call, quarter quarter third $XX approximately expected results operations quarter. to to of day was of day. Cash SBR of and a $XXX catalyst be barrels per top end be diesel quarter headwind expected quarter includes barrels production CapEx and XX,XXX of other as of SBR change approximately which produced approximately on be likely mentioned to million. XX,XXX $XXX the impacting the production is third result RD of concurrent lower As working million, million, which flow Consolidated for Fourth

an for expenditures cash turnarounds. and on reported You incurred is our CapEx basis, our will actual statement that CapEx flow but should capital spend note cash and reflect guidance

year-to-date quarter. program for the $XXX at quarter, XXXX cash our the completed have flow to represents returns million XX% capital XXXX very for share in XXXX. Through of third end we was introduced the we expenditures to end related our third cash of approximately our completed and the outflows capital of our $XXX of shareholder to beginning $XXX XXXX in delivering work shareholders by repurchase dividend, the million over shares statement December our the to share Since million demonstrate in at repurchases. approximately program. This through continue repurchases the of outstanding includes Our of commitment approximately program

and count shares balance XX. We share in firm billion quarter ended million approximately of $XXX as sheet We strong $X.X have of with reduced priorities. XXX approximately our September financial the total approximately million remain our and to debt. Maintaining footing cash

have support continues shareholder Our on to and dependent challenging operations results, we've our while to Through operations strength. market financial opening by returns. Operator, completed the And and in and quarters, remarks, we'd our in be ability conditions continued our invest of questions. take few to our continuously pleased assets fund past priority. financial both we the be part first underpinned always will our to be

question Instructions] And Read from Roger take will [Operator Fargo. Wells first our we with

both on announcement one out to the California? front your out year was they're about that topics talk then kind end exit with about and the Maybe didn't the a from the on by of the competitors now. the thinking in you're government about market going how of there. outlook wondering certainly there, big California, if of I some your just but could the preamble, of one I changes the thoughts really we it's get

colleagues the industry regime. my knew accuses everyone liers on quite California. Roger. know all The frankly, Thanks, ignorance participants, ago. don't that and the assault significant facts respects, a submit a Look, the interest All conference politicians they press of in it. stealing on me, scrutiny. vilified, sand swallowed that's attacked along inviting while, industry, essentially We, losses. of But the don't weeks called and of the the can't some because part all you continues the saw and We the else plead held lot industry throwing market statements. couple of our if I regulatory in California that the in I governor California. with people from or, the from have in in integrity monthly a other They regulators and

are on or other up potentially any through that's involvement. The other close costs, XX%. people. impositions reality. -- like that's of it's I putting either mechanisms, more quarter, think they're I than the note to to I state go important and are set to important significant highest said, industry of this gasoline it's to And the note price it's just It's swallowed losses, the the even So $X.XX the country. And other because primarily California think approximately down state. currently, those tax in And the state's still charges, in

multiplied of cause you're here that market it less of I problem. help. of involvement talking where It becomes by X,XXX only sort And reality make, up and what confession. about we're seem bit The factor by And root it, cynical rag it old of the to maybe we're the the other guess, state chalk they offended the so, -- my it's I is. certainly government That's it and of statement the address to doesn't to from I every California. conference, view politicians when here every press a exasperates may accusation, is be of but was joke make a the of the of sort every is, state efficient.

for we refinery to governor's West of closing. regard. provided I critical don't getting refined a we forward, being I there's us out I to major salvo complex for well think the say to that competitive it's refineries provide going know could if need the intend think the operate. more will is a latest be on state them, products Now supply-demand as and much refineries we do Coast. desperately have in going we it that in to and believe heels announced the our landscape the state. positioned, on. of worse is most seemingly the But And with in of situation there's that. go X The terms to And

It's I to Yes, like to know things understand. where stop, that. Yes. hard

dividend, one that But Let I company it CapEx you just to me direction their in side Maybe smaller to little in look XX%, those got say the to mentioned change given on terms also really targets. wasn't saving dividend a something was anticipating. a spending. The happen will by trying things of slashed the for there's I cost that increase the bit. turn of ways

could dividend your thought et it's balance you the you confidence the outlook, help understand sheet, into of to maybe raise the what cetera, the So here. the strength goes us process. give to Maybe

we say the to that mean. and say we very on and reimposed no time, at we We've were ago, going like reinstituted look annual we and dividend reliable And to years look look have tried at and we on X at is everything mean dividend. as say that design we interest much and in basis. it, it dividend ago, it to that through we quarter-to-quarter. we I conservative, and we we at said years we through a And cycles. an what So said what it, stable our annually, X gyrating what follow

year we're periods of intend is think up going to in cup medium mid-cycle of a and look give the -- we it basis. is marketplace we and happy annual ago, defendable, $X.XX have shareholders. going $X.XXX, we call, industry The where this -- compare raised at the we the of to based on year, at it at good, mid-cycle cost our cycle to a through above you again, the very free be we to be the going to number, when to are there be And with an reality So constructive. And you're very it come you it in the flow, a when And coffee challenging, expectations to there's from below look raised conservative but it. on -- be a when market, a and periods reality dividend. that current the a on looks ago is, the to going to at not and look which you're may comfortable to that, cash we mid-cycle. this is look with market actually just looked $X.XX. even It's we solid, what $X.XXX, it we're and in cycles the But at year our very, long-term where we

from question Research. next We'll take our with Wolfe Doug Leggate

of to go out there's not the guess, what's more I to California, the back of on there. going press much the the Matt, dynamics -- so I also of conference on industry, want but ask and

in demand the though meet XX diesel shut year of the that at another like retail pretty imports oversupplied. end to XX% is to diesel. about getting well next it, going looks probably of market California renewable even now means see in of obligation And we potentially, Phillips As it refinery the covered particular, remain by we're is

I the regulatory playing dynamics how especially supply-demand So fundamental you side? that guess, aside issues, market, actual on the the leaving diesel out do see in

Yes.

So there's X products. major

been a a our California. a on business or major our On -- comment. side, Paul everything significant shutdown. the shorter is a little Davis, bit we're significantly of of is bit on who resident then never at the We're obviously, diesel California, out I'll But insulated invite let gasoline the Paul still with shorter Martinez. of announced producer jet. expert diesel We CARB because and gets side part that's jet, obviously And Torrance export

more its around from supply you isolate limitation products logistics. what's that refining The suite and from logistics more It And there standpoint. well to see difficult supplied going system. it's happen. cost And standpoint, so, a to difficult to a want can, product, is at look a is designed you was It's and And state the more resupply just you and but have X of is difficult. the was on declining.

Your resupply a into time. weeks California month from travel imports X is to of

to comments? more in not diesel think, continue they side, been Paul, broadly is on that We've imports. will surprise and that's going for rely a the significantly California, that called renewable speaking, to on diesel set other that. But with us. I And the So being we have any up to programs place. it's And understand

the at of And be be the to Well, diesel going to side, amount makes the some of by diesel. of on mean, mean, a that's shutting CARB speak. end less seeing shut to diesel we as the away. I -- I the renewable you're from predominant balancing balanced 'XX renewable going a balancing happening tax credit when down it's Asia to blender the in coming parts in, goes producing they're be imports going going up be is the when lot There's they in act diesel bay. other and of plant the

de on CARB said some Arizona, jet goes Coast. From We Matt it and gasoline the a on jets, amount we still Nevada. there's a wrangling the we're on some PBF export West the just balances minimis and in West make maker we So going correctly, Coast. standpoint, into of diesel, distillate that primarily a make make diesel

crack our standpoint, on capture jet So the always primary from distillate an outright is side.

over buybacks But business, issue for up put is in Karen, decision Okay. going to really the dividend I of how to it on your you Matt your and or my how take question essentially your at refinery an left closures had on. And with a you're of the minute, that follow-up if dividend day, to And and after raising give net at it's debt market terms what's basically debt value kind stock annuity of delever years a the is the it's in is think buying as this business. clear equity of if equity last windfall end expense can and managed so philosophical the key flows building not the and an annuity COVID. is cash your value. And after you've so I a folks back look on. long net clean and you on business at to we several the me

buybacks plays you to see Or out? how -- if the pause you some or point, prepared So wait cycle and and what continue just are remains to dividends when depressed? about how I'm how at do like it curious, think extent that, it and with you longer

-- think okay. I

there's So, to the seeing off. be in are static, to Doug. We're following -- been reactions And there nothing look, periods and going industry forever. you've capacity There's coming of obviously, terms weakness, going that is be that. now of to

additions for medium- timing And long-term very to they or time But it continue the we that this some weaker there in frank, so, which outstripped We've what think 'XX the looks up. And our issues had year suspicion like. over a market spent to are we the looks constructive. as we lot And will business to analyzing -- net refineries outlook 'XX. have devising those and be structural to in markets that operate. certainly pile is grow shutdowns they weaknesses structurally than are my for and of that in continue

So for your going it's thesis see. we'll of -- lower to be longer,

a marketplace. the we But function is supply this positioning certainly if can for the persists within demand, years, of and marketplace our certainly it. many and Now, like we competitive reevaluate

appreciate I color, that years, know don't would the say many I but Matt. I

question next from UBS. Gupta take our Manav We'll with

a of Canada the spreads. Coast. you the light then if heavy And on, there? is over the what global looks on have view what TMX you technically help always could which it your you West the us can on the like even view rising, is, You looking side benefit then, very understand informed are is And production but

there So seeing and what global in terms of improve help walk can through XXXX? out light us you're spreads, heavy in they

It's Manav. the for burn. earlier third the in seasonal now, very reasons market call, mean, I in certainly that going heavy at the crude through we're the also Matt high plus Tom. the Thanks, described looking run quarter environment When right a

case. next taper base and in precipice where But of of those planned and which that we're are in then turnaround expectations I terms fourth in quarter. But maintenance in heavy there deferring whether sort OPEC+ of certainly mean, it's in oil that discussion obviously, this first OPEC+ at I And an the of for I there. certainly seasonally then or whether were there its be balance. the particularly market operating active oil, in market to month. secondarily, that light. obviously may first the we'll been December more strength really the of of it's And side have the some better from that peaked barrel introduce another of at referring expectations is terms quarter, it's the X think on of PADD week turnarounds would was to to think the we're sort the introducing back yesterday quarter OPEC+ the some this schedule press the really look into sources in for year, the direction important I quite to the point, think in or sort put further certainly the that the more

Regarding production terms seeing in mean, in the side equation. the TMX, terms I same of production things we're from the side, of the of --

Perfect. And My in crack. improvement an improvement better, quick what you a quarter-over-quarter? follow-up did here Mid-Con is, help Mid-Con whether on you quarter-over-quarter results us drive understand earnings flattish relatively an show ran helped

know I to of thing. performed The Toledo actually I don't any they've would Manav, all that point well, run well one year. and refinery has

pleased that. the they've can other well. out been but on play Obviously, of nothing that to been there for with side operating gyrations the or rate different than we've call And capture quarter-to-quarter bit, a aspects so products Toledo fact with crude be can on that

take next from question our We'll Piper Ryan Todd with Sandler.

cost walk to in some you provide that of primary might starting by -- details see out, buckets end the that terms the you $XXX of through be maybe able there? Maybe of the you're can XXXX, sort you target bigger that Any million driving targeting savings? savings of the

to Mike Bikowski. hand to over that going I'm

the Sure, Ryan. question. for Thanks

at to that can the your expense with any the or looked put And biggest going we energy. we and benchmarking see budget, across and together of maintenance to over best task where be internal practices external opportunities. some so, system force again, past identify So is a category looked at month we

it other in there's in $XXX about energy that get to And XX% the maintenance, of game think the of XX% our can of categories terms third-party So then our run million, we reduction. spend. we

are that capital in terms supplies. There and at and in categories some chemicals X turnarounds those projects. and catalysts look and So of our of capital are there, operating

I an we XX% energy efficiency of say, would are some and optimization. better buckets about opportunity to as also said scope And then is piece distributed maintenance balance It's that evenly across. XX%, turnarounds. the instance. driving of on -- interval some the roughly think It's about there's the turnarounds, I So that before, on really those for and optimization, other

can a been of we've generally over That's very months. XX maybe the tough And kind you industry headwinds I the be a capture, about last think seen -- know it have but There decline follow-up much helpful. of to topic, it on capture. as across

early to on part we side look we it's fourth products pieces, point maybe you crude improvement? quarter or look you whether some might the backwardation of moving going of secondary where or into the As XXXX, anything terms differentials into as the -- encouraging of capture or in can the see an Anything into forward?

we went market stronger are the turnarounds side. more new the drawing driver and crude of so than QX as on of Yes. couple transcript, was front all our a sort reasons Northern -- in third on in the the and around And the Tom why is in certainly when there particular terms run world It Hemisphere. coming of you sort things crude. and The and strength of trying to some And the biggest the went the on on, mentioned those of crude was plants is to significantly side. the you product alluded through, quarter, was side. in The through crude plants it, comments --

seeing there's of But we're they're going the -- their conviction We're should or it. back season. in and it becomes in big indeed, I'm geopolitical was on we You have pray while, market you've And seasonal a to more adding all had turnaround eventually on prophecy you month a for which that up. is noise, draws And December and the should then oil. And that to But self-fulfilling which sell can geopolitical entering a And sort OPEC, -- there. East, thereafter, flywheel also sure. the on. here side, of that January whether crude loosen it's Middle today certainly stable had hopefully, it. the burning environment seeing or then some it all not just

we well, feedstocks well, So, discount hopeful if the driver and running you're I'm regard. us worst intend run to capture continue And on on the is biggest running. behind in we well the and is you're to rates, that ran on that the

Mehta Sachs. We'll Neil take Goldman next with our question from

first like available specifically in underutilized the I is, real development assets potential guess, question the the estate. past monetization, about talked you've asset the for

curious your Just perspective do of make on portfolio, you about that as -- your where stand you And sense? think process? in that does

Thanks.

of have I It on underutilized, focused the a company laid So don't real that have teams that absolutely on update. are sense. people estate. specific We whether makes within out, it's are value absolutely exactly that's i.e., what you just on assets capitalizing

and We to terms way. are the in in continue I actually that actively more develop value do we've create in be that it, yes, we're it. And us them constantly working to think will or assets, parties And constructive there, whether unutilized of other we'll strategic to assets and allocated resources the there's reason and and sort very other possibilities value by a regard. exploring of evaluating constructive held noncore those or they should by that's

and communicate And that's one on real-time to so, of be there's those seriously part a evaluate our very a of And that done take on we items. basis. job if something we'll significant certainly

comment don't there Or focused specific to you're as is estate? you region on? that on asset a it or want to Matt, Yes. relates specifically real

we potentially a And -- is there's question going in I use rent utilized higher there land no farmers. it today. in mean, because amount have it property, is that for to We real to and holds that one incremental the think ag a and we better land of tremendous is And of not have being Delaware. value. be the we on substitution excess in estate value. Yes. side It's obvious

is been a where the you has that around Can should reduce how focus are, pieces? you And we then follow-up just outstanding thinking I which payables, and to the in guys about talk moving be XXXX about know big the you for environmental levels.

bucket. slightly increased Typically, The Sure, and this liability, I reflects quarter, of quarter, the between cap trade, million It payables. to that $XXX to we that above terms view $XXX just $XXX Neil. LCFS, it's simply need payment from you, RINs, $XXX this -- Thanks. entire end million includes ranging trade cap at because remind for and but is not range the which environmental guidance and extended of million. our some it and million primarily as to

We'll next with take JPMorgan. our Royall John question from

on just drilling I balance and had a So, sheet. maybe little on in more bit the just follow-up question, a Doug's

debt? in comfortable up kind that the net zero more that of to at of You've years point net of live and leverage close of bit range you are not little Is spent so. to Do through-the-cycle meaningfully cracks low aggressive bit? to ticked But type a your cycle, you debt, almost still negative net you have dividend now X X the and at debt? Or and on has expect net a positive, kind down. on come are up hiking buyback be little levering a target remaining with

about balance net well it's of a you're into There's incredibly I conservative positions period balance cycle. for think debt time lean you sheet, where a X you have the having sheet. talking to very very, a still

very, closely, outlook very couple next but goes that an we seriously. next it or monitor the take very, beyond we have also months. number And very weeks We of so, the it of

And business so, we regard. have and the that our confidence we in industry where within in stand

that's as we need difficult So, through balance sheet, there lean what's to into of for. periods time, the go we and

were had of Coast. about operationally then, Great. XX you you think Coast? that kbd a TMX previously And to the running West Can have on update you follow-up in barrels get those a any challenges on XX. you the with barrels give I just and is to feedstock get West mentioned you any up or kind to running there on of are Where learning hoping that are today? And just general? curve

fourth barrels In not than a there's quarter, really bit higher the crudes those expect to driver that day. equipment barrels I'll a sulfur some -- price. and less couple that actuality, than little those some of in not some quarter, we invite we're the follow I the But run is ran maintenance on a doing In make XX,XXX in But up. Paul that's comments we'll are other third that. -- of sulfur The how driver. alternatives. is

that the we they economic. at of so crudes the and suite we're And at available, going the are look we most marketplace to look have pick --

Now we've on [indiscernible] run the and day is, those we've crudes. to available crudes Western Trans our economic, a can extent preparing are XX,XXX to Mountain, what up of focused been we been Canadian barrels where

some were we which we think the the to in to barrels That cost-competitive optionality, I have a the talking but bit. Asia, so, for on market long-term before And the projection. the going in are up delivered a have those they that And tightness have way. my crude of of a been host reasons, not bid capability, be in regards of some of is things and whole

we're into very, the amount the in going least the of the have refineries. cost end of that early refineries day, those think the innings. And California logistics at very are to I crude -- get to be

Any So I think is long will time. period over over be suspicion comments? significantly that of a more it span other of we running time, a of my

markets aggressively, the And the bottom you down and or think of very line, wound gets third it -- Transpacific. it. quarter, mean right going up I now, kind fourth into going covered the Asian No, it bid and it I to price.

they're can else on price, and that's us systems It's I fair to of run to Coast or going West think be whether all West barrels, WCS. and the going depend everybody Coast. amount on sweets the for a TMX-type sin,

with next Paul take Cheng question Scotiabank. We'll our from

first improving CapEx Do -- is have and That's spend? that's that need what the maybe conditions remain you next outlook rough instead XXXX the to you a Karen. challenging or for market really if the question. just minimum Matt, of year, for

CapEx, improvement we're 'XX terms range of of finalizing we've some between a to about our years, just still activity I process point $XXX cetera. projects, a of to to magnitude XXXX on margin in typical in would $XXX and going capital you, respect budget. be with million In range, turnaround million. it's based higher talked often Well, the of et

along with But our the margins weaker as capital our early to schedule. in hand, other the reduce expect On to release if custom, can. where we'll turnaround January spend we guidance look refining we Paul, materialize, is

to is maintenance turnaround there, growth That a and million, say, already, $XXX capital is million in or capital basis? including $XXX on the that any

always CapEx element an growth of discretionary Our budget includes projects.

would included. it yes, be So,

share? like can the Matt, your $XXX runway If -- order mean, be in and back XX any go Any need dividend, that year, environment CapEx into spending you on comparing of think you sorry kind this months you said, or to the question. do your you million to I you last to $XXX a $X ask cash breakeven? -- I that for dividend need flow million be can what we spread rough is to based number better Okay. you to the crack

I be difficult specific think it would too isolate a to crack. to

But weak operating too and differentials, costs, other markets business periods strong our time, where crude of be So of which low free cycles, million -- crude mid-cycle earning $XXX dynamics, flow, because analyzed it, we've we as there's cash costs. through energy versa. multiple multiple call span the to a there's vice and that environment, in many over cracks or long includes million. generate up $XXX And differentials can cycles, in

location not but too refiner and it's advantages I we has compare we that specifically one America, that more difficult is not or have, but we North But positioned we North assessment. well the think, only you within So having look frankly, accurate isolating the the the optionality PBF complexity an that we have, American globally. of we're forward has, as have, quite crack, the when all us that think

Stanley. with Joe Laetsch question We'll take from next our Morgan

follow So savings. on cash up to I wanted run rate $XXX million the

that $XXX the On would to of get trying we and through a larger needs think about to side, the just projects should CapEx capital? hit energy projects? being be more Or hit requiring think sense smaller million those quick as that I'm reduction reduction.

and governance, Yes, the maintenance dollars that some at spend be the side, small and these Joe, energy on we need expect a small just to increased some we then combination of optimization to increased capital plant.

these large on I So wouldn't capital expect projects.

on ask then SBR. And to Great. I gears, shifting wanted

asset been can a little talk Now of relative for than to to bit expectations? online that the more just a performance you year, that that's

Yes.

a got market. start clearly think itself been market out shaking And you market. with the to that's The bit. So I has below

going sort are highest sort of Over any level quarter renewable month, is to looking expectation, like my through diesel. the or any that investment -- governments of the summary of sort again, incentivize

and have out. With with be. diesel as time the the very there's needs pluses of a capacity aviation our as positioned That Now over is is that by in of there's minuses and new a be make I The that. minuses. frankly, has multiple that diesel. more expectations. maintenance which highly the said, That as think quite Catalyst shorter as to think think there's there's to not renewable with original it's terms location on into pretreatment ability biodiesel we'll shaking players a sustainable being think, to Italians, industry. I'm underperformed a I players competitive has continue business, been little the I of not and our has side for any cycles. of very, of to us, as it within continue 'XX, line and translated profits of good, out host products our to changes well partnership confident catalyst a fuel. our a our again, and that. And dynamic number quartile renewable been diesel. of I some market been our players, out E&I, will I'm sort morph improvements on you shared markets, bit to top But into others And bit of offering on whether we're whole start distribute needs or confused There we're and But in shake the renewable in manufacturers

in prices. better certainly, green than regard. rest starting the marketplace like. then far looks for on shoots partnership, couldn't that and fourth new -- what I'm some engineers asset. of quarter as looks once the a us, government hoping lot quarter the for of quite PBF out the we're continued as said, to that this credit blender tax contributed coming frankly, we to hedge prices well. benefit roll against that's it have pleased the going side. And the is be a But marketplace, programs on a terms never like for And doubt is down, as end I like You retired the And is see And of to it it improvement us from performed will that standpoint. I may more And third RIN underestimate in no year. as to our the RIN the at

We'll TD from take question Gabelman our Cowen. final with Jason

cost This similar unclear is to try have inflation versus wanted it's in in in because Gabelman. to cash million And what others we've to these programs actual offset implement back programs. extent resulted go $XXX Jason this I costs. seen savings to cost reductions

you standpoint just can to from inflation? the an kind if So, you or basis on expect and And offset expect million forward? $XXX going to kind you've market inflation what continued be in what if of an absolute the of you discuss you seen expect

So this is Mike. take I'll question. that

to set is baseline. So reliability. We the -- $XXX the did for We that adjustments or take didn't our of XXXX when baseline expenses. actual is want the basis we million of for reliability set when on plant some our we make improved the the the credit plants

of We're the terms in going our do reduction It's how go be not energy we're do consumption. going driven So price. do to by to bottoms-up maintenance. projects initiatives to of efficiency-based out to field actually drive do going we and in --

PMs, going improve to going driving be be we be done adjustment there not scope some -- we our as it's it's to So may driven but efficiency. optimize our how

the to that that's another efficiency contractually, going it's driven at a be to cost. work example that. to Of where Turnarounds, going by a course, of initiatives that's less employees the our have largely doing piece maintenance drive raises and to same eat get we're

inflation and of driving been know other some It's that high the high. hasn't that expect reductions, frame done of that we're kind done tamped that those Given we I that have have high, to a time it period don't inflation. talking down. about companies cost in real these be that of

expect been a difficult large I to time talking show offsets. about piece But to those it's be that So inflationary frame don't we're the here, savings. of be it given to

question seems light year, just in those backwardation But dips. more realizations wondering the relative normalized a And capture. from to this Great. like the I year then, been my the to going would been could like and other it some one, just you of if what of to like Ryan's on also appreciate kind back this heavy co-products, and crude headwinds they've co-product look on approximate on Okay. and what environment, I'm comments there's headwinds impacts backwardation?

haven't came kind the factor the point, the -- think at of the But right? the point equation, the one Clearly, that of the supply down, and in side side in demand Gulf. I were in basically, subsequently U.S. in on Jason, the it's damage looking weren't certainly crude of it's it that obviously, discussed certainly, point hurricanes anything of I crude. obviously, impacting contributing impacted back, strong Coast. Gulf of another mean, gyrated refineries we Gulf that element quarter, through I really at lack hurricanes eastern to and at also Eastern this terms was but to you're third obviously, communities, was and it just things the did of at that was mean terms of is Tom. crude and terms the the the it

it expensive even a basically think think when markets grades at trading about this is looking the than assessments examining I that the in the dated at more just at have to right? cash also you is dated, crude are just when to point market. was premium The

to, So expectations. of that markets really the that contributes really tighter sort point, like than were at waterborne even

should if in it of simple early you if during I mean very contributed really it of and I certainly around, then to weaker I of the Brent. midst data the of a balances because wasn't the was I back sort it the little some a just of go multiple terms the you confluence crude was obviously XXXX have were issues. were multiple Europe September, of that to OPEC+. accrue think bit it market the a tight And refinery. subsequently we above. look and -- the I like ICE looked at a think that the under in of This factors, it's products. Libyan that that the you dollars supply, also I sort events that looser It trading barrel time actually looking contributing pandemic. the than And And management market think different. because the mean margins been had heavy crude crude was side think of just there dollars at benefit was So point, from micro market, S&Ds of for right? that day in could was was at right, was the

on co-products, market, of of examining the of where other have kind If certainly and trading terms mean, the side weaker we things of right, terms we're been equation. year-over-year. at In asphalt weaker of pet really look the I coke think in I sort

it I just think it's in than about back for I the to terms of those getting going of think the coproducts. crude is equation expectations really us the side forward,

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

next Happy again today quarter. look with forward and to day. participation Halloween. great a everyone's appreciate greatly I speaking Have you

This concludes and your this conference, for time. your today's disconnect you Thank you participation. lines may at