PBF Energy (NYSE: PBF) reported Q3 EPS of ($2.87), $0.56 worse than the analyst estimate of ($2.31). Revenue for the quarter came in at $3.67 billion versus the consensus estimate of $4.08 billion.

• East Coast refining reconfiguration expected to result in $150 million of annual operating and capital expense savings
• Third quarter loss from operations of $342.7 million (excluding special items, third quarter loss from operations of $374.2 million)
• Third quarter consolidated ending cash balance of approximately $1.3 billion

Tom Nimbley, PBF Energy's Chairman and CEO, said, "Today we announced the reconfiguration of our Delaware City and Paulsboro refineries. With this reconfiguration, we will operate the most profitable components of our East Coast refining system at lower cost. This is another step in our broader strategic process aimed at increasing the competitive position of our entire refining portfolio."

Mr. Nimbley continued, "PBF's third quarter financial results reflect the challenging market conditions brought on by the global pandemic and government measures taken to mitigate its spread. We exited the third quarter with approximately $1.3 billion in cash and other sources of liquidity that we believe will support our business through the current crisis. We expect demand to remain depressed until there is a widely available medical solution for the COVID-19 virus that will allow everyone to return to their normal routines." Mr. Nimbley concluded, "Until that time, we will focus on the safety and health of our employees and the reliability of our operations. We are committed to executing our cost reduction initiatives and to continuing the strategic review of our entire portfolio."

Strategic Update and Outlook

Employee and operational safety continue to be an ongoing priority in our pandemic response. We have implemented a number of safety protocols and social distancing requirements, issued personal protective equipment to all employees and enhanced facility cleaning, with these efforts focused on protecting our dedicated front line employees who have remained on the job throughout the current crisis, as well as returning employees as they come back to the office. As a result of our efforts, our operating facilities have remained fully-staffed by our essential workforce throughout the pandemic, and we continue supplying our critical products to our valued customers.

We are executing our East Coast reconfiguration plans and actively reviewing the balance of our refining portfolio for additional efficiency opportunities. We continue to target and execute the expense reduction measures announced in March 2020. Through the end of the third quarter, we exceeded our full-year goal of $140 million in total operating expense reductions by achieving over $225 million in reductions, including energy. While some of these savings are a result of reduced operational tempo, the majority are deliberate operating and other expense reductions.

Our refining capital spending program is expected to meet our revised guidance of approximately $360 million for 2020, with the bulk of the spending having occurred in the first and second quarters.

We operated our refineries at reduced rates during the third quarter and, based on current market conditions, we plan on continuing to operate our refineries at lower utilization until such time that sustained product demand justifies higher production. We expect near-term throughput to be in the 700,000 to 800,000 barrel per day range for our refining system.

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