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PBF Energy Inc. PBF has announced plans to repair and restart its 157,000 barrel-per-day Martinez refinery in California, which was damaged by a fire on Feb. 1. The restart will take place in two stages, with key units, including the crude unit, expected to resume operations in second-quarter 2025. The refinery will initially operate at a reduced throughput of 85,000 to 105,000 barrels per day, producing limited gasoline, jet fuel and intermediates.
The second stage of the restart will focus on units that were already scheduled for turnaround in the first quarter. These are expected to come online by the fourth quarter, bringing the refinery back to full operational capacity. However, the timeline remains subject to factors such as regulatory approvals, availability of critical equipment and other external conditions.
PBF expects insurance coverage to absorb most of the repair costs, with the company responsible for a $30 million deductible and retentions. Additionally, business interruption insurance should offset financial losses from the downtime, covering ongoing costs and potential lost margin opportunities starting April 3, 2025, until full restoration.
PBF president and CEO Matt Lucey reaffirmed the company’s commitment to restoring the Martinez refinery safely and responsibly. He expressed gratitude to first responders and the community for their support while acknowledging the refinery's importance in maintaining jobs and supplying critical transportation fuels to California.
PBF’s Zacks Rank and Key Picks
Currently, PBF carries a Zacks Rank #3 (Hold).
Investors interested in the energy sector may look at some better-ranked stocks like Antero Resources Corporation AR, NextDecade Corporation NEXT and EOG Resources, Inc. EOG. While Antero Resources presently sports a Zacks Rank #1 (Strong Buy), NextDecade and EOG Resources carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.
Antero Resources, one of the fastest-growing natural gas producers in the United States, boasts a strategic acreage position in the low-risk properties of the Appalachian Basin. The company has more than two decades of premium low-cost drilling inventory in the prolific basin, securing a strong production outlook. AR is well-positioned to capitalize on the increasing demand for LNG, both in the United States and globally.
NextDecade is an emerging player in the LNG space with its Rio Grande LNG project in Texas. As demand for LNG continues to grow, the company’s strategic investments in infrastructure and its planned liquefaction capacity provide strong upside potential. With the global LNG market expanding, NEXT is well-positioned to tap into the increasing export demand from the United States.