Joe Laetsch

Explained the importance of the waiver but explicitly disclaimed insight into whether it will be extended.

Both regions addressed: California crude discounting into Wilmington, and Gulf Coast capture driven by jet yield and export premiums.

Gary detailed restart timeline: smaller crude unit back early April, larger crude unit starting up with May 1 normalization. Diesel hydrotreater sustained extensive damage with no rebuild timeline.

Gary Simmons said global demand was already set to outpace new capacity at year-end. Iran conflict accelerated the tightening with 6-12 month restocking timeline.

Eric cited cheap feedstock from good corn crops, growing global export demand, ethanol entering low carbon programs, and continued capacity creep. On E15, all plants are registered but customer acceptance is slow, with resolution tied to SRE/RVO policy.

Randy noted fuel oil at 79% of crude, driven by more heavy crude availability, Venezuelan fuels being offered to US markets, higher Mexican refinery runs producing incremental fuel oil, and elevated freight costs forcing western hemisphere fuel oil discounts.

Eric estimated D4 RINs need to rise $0.25-$0.30 from current levels to restore BD breakeven, translating from the $0.20 gap to the prior $1 BTC equivalent.

Greg confirmed the yield is near maximum for current hardware, achieved by maximizing distillate molecules even on lighter crude, with jet fuel growth helping compensate.

Homer cited bonus depreciation benefits on growth and most sustaining CapEx, while Rich noted EV credit elimination and CAFE penalty limits supporting ICE vehicle demand.

Eric attributed Q2 improvement to full-quarter PTC capture (vs half in Q1), better volumes post-catalyst changes, and continued SAF ramp.

Eric described a mid-cycle ethanol outlook with favorable feedstock costs (record corn planting, cheap natural gas) and record exports, but margins capped by high industry production.

Gary forecast California will be short gasoline for years with more volatile margins during outages, while diesel remains well supplied.

Greg attributed West Coast weakness to Benicia maintenance limiting transportation fuel yield, and Mid-Con strength to favorable demand, higher throughput, and less backward WTI.

Eric cited high inventories and surprisingly sustained production rates pressuring margins, with E15 adoption more likely in Canada than U.S. due to logistics challenges.

Mark said Chemicals came off the Hormuz-crisis peak but a higher floor persists (~$0.07/lb above the 2025 trough) as China loses its cheap-crude advantage.

Rich detailed $0.80/bbl YoY improvement with 200+ active initiatives targeting $0.15-$0.20/bbl additional structural savings. Normalized for $3 gas, costs in low $5.80s, within striking range of $5.50 target by 2027.

Brian reported minimal demand impact, about 1% decline in gasoline and diesel. Marketing added over 500 franchise stores last year, offsetting broader demand softness.

Rich credited execution efficiency and shift to condition-based inspection programs extending turnaround intervals and reducing scope. Year-to-date spend ~$320M.

Don confirmed phase 1 expansion near complete, phase 2 to 350K bpd on track for 2026. Cost synergies and commercial opportunities being captured. Customer feedback very positive.

Kevin explained modest $0.05 increase appropriate for environment; real upside is buybacks. Mark noted gross dividend outlay stable as share count declines; buybacks are the swing variable.

Rich explained turnarounds were the major driver, particularly crude unit work at Bayway, Lake Charles, Sweeny, Wood River, and Borger. Minor market adjustments of ~1-2 points in Jan/early Feb.

Management pointed to 95% utilization, a short RIN market, and Martinez pretreatment as durable advantages.

CEO and refining head cited reliability projects, human reliability/upskilling, and targeting basic operation excellence as drivers of utilization outperformance.

CFO noted improving environment from higher RINs and diesel values. Completed first major Martinez turnaround, targeting low-90% utilization in Q2.

CEO focused future LAR investments on reliability improvements rather than capacity expansion; current $700M project delivering ~20% return with NOx compliance nearing completion.

Rick noted good summer driving season with no typical mid-summer demand fall-off yet observed, characterizing outlook as constructive.