PBF Energy Inc. (PBF) Business Profile

What it does

PBF Energy is an independent U.S. petroleum refiner and supplier of unbranded fuels and other petroleum products. It buys crude oil and other feedstocks and processes them into gasoline, diesel, jet fuel, heating oil, lubricants and petrochemical feedstocks. It sells those products to commercial customers and major oil companies, generally through short-term contracts or on the spot market.

PBF owns and operates six refineries: Delaware City in Delaware, Paulsboro in New Jersey, Toledo in Ohio, Chalmette in Louisiana, and Torrance and Martinez in California. Their combined processing capacity is approximately 1,000,000 bpd under the operating conditions described at the end of 2025. Two of the refineries operate as a single unit.

The company also owns logistics assets through its PBFX subsidiary. These include terminals, pipelines and storage facilities that receive, handle, store and move crude oil and products for PBF’s refineries and for outside customers. Through its SBR investment, PBF owns a 50% interest in a renewable diesel facility at Chalmette.

PBF Energy is a holding company: its primary asset is a controlling equity interest in PBF LLC, through which it operates the business. Founded in 2008, PBF has its principal corporate offices in Parsippany, New Jersey. Matthew C. Lucey is its president and chief executive officer.

How it makes money

PBF reports two segments: Refining and Logistics. Refining turns purchased crude oil and other feedstocks into petroleum products, which the company sells independently to customers. Gasoline and distillates, including diesel and jet fuel, accounted for 88.0% of revenue in 2025. Other refinery output includes heating oil, lubricants, petrochemicals and asphalt.

Refining earnings and operating cash flow depend primarily on the relationship between product prices and the cost of crude oil and other feedstocks. Product prices and input costs can move independently: changes in crude costs may not be reflected immediately in the prices PBF receives. Energy costs also affect refinery operating expenses. Demand for gasoline and diesel is generally higher in summer, while home heating oil demand varies with winter conditions.

The Logistics segment earns fees for receiving, handling, storing and transferring commodities. Most PBFX revenue comes from long-term agreements with PBF’s refining subsidiary, including minimum volume commitments. Those transactions are eliminated when PBF combines its subsidiaries’ results; fees from outside customers remain. Third-party transactions accounted for approximately 9.0% of PBFX revenue in 2025.

PBF also records income from its equity investment in SBR, which owns the renewable diesel facility. In the third quarter of 2026, PBF reported adjusted net income of $12.78/share and adjusted EBITDA of approximately $2.3 billion. SBR contributed $62 million of equity income to those results. The company reported that its full refining system was available during the quarter.

Customers and how it sells

PBF sells refined products through commercial accounts and sales to major oil companies. Most products are sold under short-term contracts or on the spot market, where individual transactions are arranged at prevailing prices. PBF also has offtake arrangements under which customers agree to buy a portion of its clean products.

Shell accounted for 13.0% of PBF revenue in FY2025. PBF has West Coast clean-product offtake agreements with Shell Oil Products with varying terms of up to 15 years. At Toledo, Sunoco purchases gasoline and distillate products representing approximately one-third of that refinery’s gasoline and distillates production; the agreement expires in June 2027, subject to extension and early-termination provisions.

The company sells throughout the Northeast, Midwest, Gulf Coast and West Coast, as well as elsewhere in the United States, Canada and Mexico. It can also ship to other international destinations. Products reach customers by pipeline, barge, marine terminal, truck rack and, for some petrochemicals, rail. Toledo’s pipeline network serves markets across several Midwestern and nearby states, while Chalmette has pipeline access to Southeast and East Coast markets.

Suppliers and costs

PBF obtains all its crude oil and substantially all other feedstocks from unaffiliated sources. It has no crude reserves and does not explore for or produce crude oil. Depending on the refinery, it brings feedstocks in by water, pipeline, rail or truck, primarily through short-term and spot-market agreements. The East Coast system also uses term agreements.

Refineries consume natural gas and electricity and require hydrogen and steam. Several sites buy hydrogen under long-term contracts, while some generate part of their own electricity. PBF acquired the two hydrogen plants serving its Torrance refinery from Air Products. The acquisition was financed with a seller’s promissory note of approximately $340 million included in total debt.

Feedstock costs move with crude prices, and other operating expenses change with energy prices. PBF also incurs maintenance and capital costs, including spending to keep facilities compliant with environmental regulations. Renewable fuel mandates can require it to purchase credits known as RINs; their costs fluctuate with market conditions. The company has long-term contracts and agreements for some utilities and logistics services, alongside its shorter-term feedstock sourcing.

Competitive position

PBF competes with other refiners in the Mid-Continent and on the East, Gulf and West Coasts. It also competes with integrated oil companies, foreign refiners importing products into the United States, and suppliers of alternative fuels and energy. The supplied company disclosures do not name a direct competitor in those markets; Sunoco is identified as a Toledo customer.

Refining competition depends on product margins, crude prices and differences between crude grades, operating reliability, product mix and transportation costs. Some competitors have larger or more complex refineries and may achieve lower costs or higher margins per barrel. Integrated oil companies may also have their own crude production and greater resources.

PBF’s facilities can process different crude grades, and its pipelines, terminals and storage connect refineries to sources of crude and outlets for products. Our reading: refinery configuration and logistics provide useful sourcing and distribution capabilities, but their competitive protection is limited by commodity pricing and competitors with larger or integrated operations. Our reading: access to several regional markets reduces reliance on any one refining location, but it does not remove exposure to industry-wide changes in margins.

Growth opportunities

PBF is investing in its existing refineries to improve utilization, reliability and product yields. Its business improvement initiative also targets operating and capital spending efficiencies. The company expects its 2026 capital expenditures to be $825 million to $875 million, excluding capital related to the Martinez rebuild.

At Chalmette, PBF completed the first phase of a jet fuel project in the third quarter of 2026. By upgrading high-sulfur diesel, the company is producing approximately 10 thousand barrels/day of jet fuel. PBF also has exposure to renewable diesel through its SBR investment. SBR produced an average of approximately 19.2 thousand barrels/day of renewable diesel in the third quarter, and PBF expects fourth-quarter production of 18 thousand to 20 thousand barrels/day.

PBF restarted the fire-affected units at Martinez in May 2026 and has produced its full product slate there since then. The company also acquired the hydrogen plants serving Torrance. Its stated capital allocation priorities include strengthening the balance sheet and investing in refinery assets, including spending intended to enhance margins. PBF expects its refinancing and debt repayment during 2026 to reduce interest expense by at least $130 million in 2027.

Structural risks

• Commodity prices and margins: Crude, feedstock, fuel and utility prices fluctuate, as do refined product demand and the price differences between crude grades. Changes in crude costs may not be reflected immediately in product prices.
• Operational interruptions: Fires, casualty losses or disruptions at refineries, pipelines, terminals or other facilities can interrupt production and distribution. The Martinez fire prompted investigations; potential liabilities and the full financial impact were not reasonably estimable when PBF described them.
• Regulation and compliance: Environmental, health and safety requirements can increase operating and capital costs. Renewable fuel mandates can require purchases of RINs, whose market prices have been volatile.
• Feedstock and logistics access: PBF relies on unaffiliated sources for its crude oil and substantially all other feedstocks. Supply or transportation disruptions, including interruptions to third-party pipeline, marine or rail infrastructure, can affect its facilities.
• Financing and liquidity: PBF faces risks associated with indebtedness, restrictive covenants and its ability to secure financing. Its ability to generate sufficient operating cash flow depends partly on petroleum market prices and other factors outside its control.
• SBR investment: PBF shares management of the renewable diesel facility with a partner. Risks include the partner’s financial condition, differing objectives and obligations to fund capital expenditures.

Leadership

PBF Energy is the sole managing member of PBF LLC and controls its business and affairs. As of December 31, 2025, holders of PBF Energy Class A shares had approximately 99.3% of voting power, while PBF LLC members holding Class B shares had approximately 0.7%.

Bottom line

Our reading

PBF is a refining business whose earnings depend on the spread between petroleum product prices and purchased feedstock costs, with logistics assets supporting its refineries. Its regional footprint and flexible facilities provide operating options, but they do not insulate it from commodity cycles or refinery outages. [item1] [item7] Recent refinery and hydrogen investments add to those assets, while renewable fuel compliance and maintenance remain recurring exposures. [call_prepared] [item1]