PBF Energy Inc. (NYSE:PBF) Q4 2019 Earnings Conference Call - Final Transcript

Feb 13, 2020 • 08:30 am ET


PBF Energy Inc. (NYSE:PBF) Q4 2019 Earnings Conference Call - Final Transcript


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Good day, everyone, and welcome to the PBF Energy Fourth Quarter and Full Year 2019 Earnings Conference Call and Webcast. [Operator instructions]

It is now my pleasure to turn the floor over to Mr. Colin Murray of Investor Relations. Sir, you may begin.

Colin Murray

Thank you, Ashley. Good morning, and welcome to today's call. With me today are Tom Nimbley, our CEO; Matt Lucey, our president; Erik Young, our CFO; and several other members of our management team. A copy of today's earnings release, including supplemental information is available on our website.

Before getting started, I'd like to direct your attention to the safe harbor statement contained in today's press release. In summary, it outlines the statements contained in the press release and on this call, which express the Company's or management's expectations or predictions of the future, are forward-looking statements intended to be covered by the safe harbor provisions under federal securities laws. There are many factors that could cause actual results to differ from our expectations, including those we described in our filings with the SEC. Consistent with our prior quarters, we'll discuss our results, excluding special items. This is a net $20.2 million adjustment, which includes an after-tax non-cash lower cost or market or LCM adjustment, which decreased our reported net income and earnings per share.

As noted in our press release, we will be using certain non-GAAP measures while describing PBF's operating performance and financial results. For reconciliations of non-GAAP measures to the appropriate GAAP figure, please refer to the supplemental tables provided in today's press release. Also included in our press release today are throughput guidance figures which now include the Martinez refinery as of its February 1st, acquisition date.

I will now turn the call over to Tom Nimbley.

Tom Nimbley

Thank you, Colin. Good morning, everyone, and thank you for joining our call today. Overall, we are pleased with our fourth quarter results, which reflect solid operational performance in all of our regions, following the extensive maintenance we strategically advanced into the first half of 2019. In the fourth quarter, complexity mattered with changing IMO-based market dynamics, oil trade flows shifted and crude slate changes were observed throughout the industry and at our refineries. Less complex refineries producing high-sulfur fuel made significant changes to their business model and got lighter. In the last six weeks, the oil industry and the world have been presented with some serious challenges. The markets have been volatile, to say the least and they continue to be so.

The model winter in the Northern Hemisphere has dampened demand for heating fuels. And more importantly, the coronavirus has limited commerce and mobility in highly populated areas, as governments and health organizations work diligently to solve the pandemic. With the losses to demand, the oil market will do what it always does, rebalance. Global refining margins started this year fairly weak and runs were curtailed due to economics.

It appears as though we were starting to see some life in the cracks, but oil