PBF Energy Inc.

For the second quarter, PBF reported adjusted net income of $6.22 per share and adjusted EBITDA of $1.24 billion, excluding special items. Special items included $23 million in incremental OpEx related to Martinez, a $250 million insurance recovery gain, a $2 million charge tied to repayment of the $800 million senior notes due 2028, and about $9 million of RBI-related charges. Cash from operations was $1.6 billion, including an approximately $430 million working capital benefit, and consolidated CapEx was $189 million, excluding about $56 million tied to the Martinez rebuild. The company ended the quarter with $894 million in cash and approximately $855 million in net debt, and it cut 2026 CapEx guidance by about $75 million to $850 million at the midpoint.

Matt Lucey framed the quarter as a “transformative moment” for PBF, arguing that Middle East and Eastern Europe disruptions have created a major dislocation that favors refiners with crude flexibility and access to stable supply. He said product inventories are being drawn down, normalization will take time, and PBF is well positioned because crude availability is not expected to affect its operations. His tone was confident and unusually upbeat, emphasizing that the company has strengthened its balance sheet, lowered costs, and improved reliability and efficiency.

Joe Marino highlighted that the quarter was driven by strong product markets and said the company received a fifth unallocated insurance payment, bringing total insurance recoveries to $1.25 billion net of deductibles and retention, with more recovery expected in the second half of 2026. He also noted SBR contributed $27.5 million of net income, or about $40 million of EBITDA, and produced 15,100 barrels per day of renewable diesel. On the balance sheet, he said PBF reduced net debt by over 62% during the quarter by paying down its asset-backed lending facility and refinancing $802 million of 2028 notes, while the new Torrance hydrogen plant purchase will be financed with an amortizing seller’s note and added to debt when closed.

Analysts focused on how long the current refining upcycle could last, whether the “mid-cycle” has structurally moved higher, and what PBF plans to do with a rapidly improving balance sheet. Management said crude can normalize faster than products, but product inventory rebuilding could take into 2027, and Lucey said they do not want to speculate on cash they have not yet earned. Questions also covered turnarounds, with management explaining that Toledo and Chalmette were pushed into 2027 because RBI work and operational timing allowed it, while Paulsboro is constrained by inspection and integrity deadlines. On hedging and RINs, management said they do hedge selectively but prefer to keep delivering market exposure to investors, and they argued the RFS still imposes about $14 per barrel of cost and remains a major issue with Washington.