PBF Energy’s Path Forward Amid Regulatory Complexity

Our coverage team provides an overview of PBF’s business and the continuing effects of the Covid-19 pandemic, which led to more than $1 billion of 2020 FCF burn. While the company’s cash burn rate has improved in 2021, PBF has encountered increased renewable fuel standard, or RFS, compliance costs due to dramatically higher market prices of RFS-related renewable identification number, or RIN, credits. Adding to the company’s regulatory complexity, the Bay Area Air Quality Management District, or BAAQMD, on July 21 adopted particulate matter-reduction amendments that PBF initially estimated would require it to install an $800 million wet scrubbing system at its 2020-acquired Martinez refinery.

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