#United States #California #PBF Energy #Martinez Refinery #Martinez, California

PBF Energy's Refinery Operations Update: Martinez and 2026 Guidance

PBF Energy Inc. (NYSE: PBF) has recently shared significant updates regarding the restoration of its Martinez, California refinery, which suffered damage due to a fire on February 1, 2025. The refinery, which has a capacity of processing 157,000 barrels of crude oil each day, has made remarkable progress and is expected to return to its planned operating rates by March 2026.

Initially, following the fire, PBF Energy had projected for the refinery to restart towards the end of 2025. However, it has now been clarified that recovery operations are anticipated to stretch into February 2026, a slight shift as efforts intensify leading to a phased restart. Current operations show that the Martinez facility has been operating within a range of 85,000 to 105,000 barrels per day since the second quarter of 2025.

During a recent announcement, Matt Lucey, President and CEO of PBF, emphasized the company's dedication to restoring full operations safely. He remarked on the collective effort of PBF employees who are striving to complete the repairs ahead of the scheduled timeline. Lucey acknowledged the support from the Contra Costa County regulators and the Bay Area Air District in helping the refinery get back online to meet California's energy demands.

Financial Implications and Insurance Coverage

The company has confirmed that the expenses related to the fire damage will primarily be covered by insurance. This is subject to a deductible and retentions amounting to $30 million. Additionally, PBF anticipates that its business interruption insurance will significantly reduce financial losses incurred during the downtime until the refinery is fully operational again. In the fourth quarter of 2025, PBF received an unallocated installment of insurance proceeds totaling $393.5 million, bringing the total unallocated insurance reimbursements to $893.5 million for the year, net of deductibles.

2026 Annual Guidance

Looking ahead, PBF Energy has released throughput expectations for different regions for the year 2026. The projected throughput ranges, measured in barrels per day, are as follows:

• - East Coast: 300,000 - 320,000
• - Mid-Continent: 135,000 - 145,000
• - Gulf Coast: 170,000 - 180,000
• - West Coast: 280,000 - 300,000

The company is also planning routine maintenance and several turnarounds for 2026, which will be managed carefully to minimize impacts on overall production. Notably, the scheduled turnarounds include:

• - West Coast: Torrance CHD/HDT (Q1), Martinez Hydrocracker (Q2)
• - Gulf Coast: Crude Unit/Coker (Q4)
• - East Coast: Paulsboro Crude Unit (Q4)
• - Mid-Continent: FCC (Q4)

Strategic Outlook

PBF Energy's guidance is reflective of current operational plans and is susceptible to change based on market fluctuations, equipment availability, and external conditions. Chairman Lucey pointed out that these forward-looking statements include expectations regarding the timing of the Martinez refinery's full restart, throughputs, and related insurance recoveries.

While PBF is optimistic about resuming full-scale operations, the journey is laden with uncertainties, including regulatory hurdles and the dynamic nature of the oil market. The company's commitment to running its facilities in an environmentally responsible manner remains steadfast as they navigate through these challenges. They urge stakeholders to regularly check their investor relations website for updates regarding operational guidance and further details on the refinery's recovery process.

In conclusion, PBF Energy continues to make strides towards restoring the Martinez refinery while managing the implications of the fire incident effectively. As they gear up for 2026, their focus on safe and efficient operations is central to their mission of meeting market demands and ensuring long-term sustainability.