PBF Energy: Very Strong 2Q26 Results; Conflict Driven Product Pricing Supportive of Outlook

Research evidence excerpt

PBF Energy: Very Strong 2Q26 Results; Conflict Driven Product Pricing Supportive of Outlook

Tarek Hamid AC North America Credit Research

(1-212) 834-5468 30 July 2026 J P M O R G A N

tarek.x.hamid@jpmorgan.com

half of the year.

• Hydrogen plant acquisition. PBF disclosed the acquisition of two hydrogen production

plants located at the Torrance refinery from Air Products and Chemicals (APD). The

hydrogen plants were previously operated under operating lease arrangements and PBF

will now become the owner and operator of the plants. The acquisition is expected to close

in 2H26, and the transaction includes a $320-$340 million promissory note to be issued

by PBF. The company buying critical infrastructure within its own refinery footprint

during periods of strong cash generation makes sense, in our view.

NEGATIVES:

• Slightly soft 2Q throughput and 3Q guidance. The company’s 2Q26 total throughput

of 887kbd was modestly below our 891kbd esitmate and the consensus estimate of

896kbd. The slight shortfall appears to primarily be related to unplanned work at Toledo,

which allows the company to delay the FCC turnaround originally scheduled for 4Q26

to next year. The company’s 3Q26 throughput guidance of ~930kbd at the midpoint is a

touch soft compared to the consensus estimate of 953kbd, but to the company’s credit,

the Street 3Q estimate already seemed very high, in our view.

OUR TAKE:

• Robust margin capture driving strong beat. PBF’s 2Q26 EBITDA and free cash flow

meaningfully beat estimates, as the company’s gross margin capture was significantly

better than expected. The company used the over $1.3 billion of free cash flow generation

to repay over $1 billion of debt during the quarter, leaving its revolver now undrawn. PBF