PBF Energy Inc. Q1 2026 Filing Summary
Business Context and Reporting Period
This Form 10-Q covers the quarterly period ended March 31, 2026. PBF Energy Inc. is a holding company that consolidates the results of PBF Energy Company LLC, operating six domestic refineries with a combined capacity of approximately 1,000,000 barrels per day (bpd) and a logistics segment (PBFX). The company owns a 50% equity interest in St. Bernard Renewables LLC (SBR), a renewable diesel facility.
Key Financial Metrics
| Metric | Q1 2026 | Q1 2025 |
|---|---|---|
| Revenues | $7,904.3 million | $7,066.4 million |
| Net Income (Loss) | $200.2 million | $(405.9) million |
| Net Income Attributable to PBF Energy | $198.3 million | $(401.8) million |
| Diluted EPS | $1.65 | $(3.53) |
| Consolidated Gross Margin | $278.5 million | $(420.2) million |
| Gross Refining Margin | $1,036.9 million ($13.65/bbl) | $391.7 million ($5.96/bbl) |
| Operating Cash Flow | $(323.7) million | $(661.4) million |
| Long-Term Debt | $2,802.3 million | $2,148.3 million |
| Cash and Equivalents | $541.8 million | $527.9 million |
| Working Capital | $1,394.7 million | $782.5 million |
Material Changes vs. Prior Period
- Profitability Turnaround: The company reported a net income of $200.2 million in Q1 2026, a significant improvement from a net loss of $405.9 million in Q1 2025. This was driven by higher refining margins, increased throughput, and favorable market conditions.
- Throughput Recovery: Total crude and feedstock throughput increased to 844.2 thousand bpd in Q1 2026 from 730.4 thousand bpd in Q1 2025, primarily due to the restart of the Martinez refinery following the February 2025 fire.
- Inventory Adjustments: A non-cash reversal of a $313.0 million Lower of Cost or Market (LCM) inventory reserve recorded in the prior year significantly boosted operating income in Q1 2026.
- Insurance Proceeds: The company recognized a $106.5 million gain on insurance recoveries related to the Martinez refinery fire in Q1 2026. Cumulative proceeds received since the fire total $1.0 billion.
- Debt Levels: Long-term debt increased by approximately $654 million, driven by a $650 million net draw on the Revolving Credit Facility to support working capital needs.
Guidance, Outlook, and Risks
- Capital Spending: Excluding Martinez rebuild costs (largely covered by insurance), the company expects to spend $885.0 million to $925.0 million in 2026 on facility improvements, maintenance, and turnarounds.
- Dividends: A quarterly dividend of $0.275 per share was declared on April 30, 2026, payable May 29, 2026.
- Regulatory Risks: The company faces increased costs related to the Renewable Fuel Standard (RFS), with compliance costs rising to $278.0 million in Q1 2026 from $120.0 million in Q1 2025 due to new EPA requirements and higher RIN prices.
- Geopolitical Factors: Ongoing conflicts in the Middle East and Russia-Ukraine tensions have increased crude price volatility and freight costs but have also supported higher refining margins.
- Legal Proceedings: Investigations continue regarding the Martinez refinery fire and a 2022 catalyst release. While potential penalties are unknown, management does not currently expect a material adverse effect on financial position.
Investor Verification Checklist
- LCM Reversal Impact: Verify the sustainability of earnings by excluding the $313.0 million non-cash LCM inventory reversal and the $106.5 million insurance gain to assess core operational performance.
- Martinez Refinery Status: Confirm the timeline for full operational restart of the Fluid Catalytic Cracking unit and the finality of insurance claim settlements.
- RFS Compliance Costs: Monitor the trajectory of Renewable Identification Number (RIN) prices and the impact of the new 2026/2027 EPA volume requirements on future margins.
- Debt Covenants: Review compliance with financial covenants given the increased revolver utilization and the $168.2 million liability under the Tax Receivable Agreement.
- Geopolitical Exposure: Assess the company's hedging strategies and supply chain resilience against potential disruptions in the Strait of Hormuz and Red Sea.