Total Revenue

Declined 4.7% (from $31,759M in Q1 2024 to $30,258M in Q1 2025)

Lower product prices and reduced volumes across segments drove the revenue decline in Q1 2025, mirroring downward trends seen in previous periods where weak market demand, particularly for transportation fuels, pressured overall revenue. " " "

Refining Revenue

Declined 4.6% (from $30,145M in Q1 2024 to $28,757M in Q1 2025)

Deterioration in refining margins, due to lower prices for petroleum-based fuels and reduced throughput volumes, contributed to the drop. This aligns with previous period trends where similar headwinds in product mix and volume shifts impacted segment performance. "

Gasolines and Blendstocks Revenue

Declined 5.8% (from $13,126M in Q1 2024 to $12,374M in Q1 2025)

Margin compression driven by weaker market pricing for gasoline products led to a significant revenue drop. The current period continues the trend from earlier periods where lower gasoline margins (with a decline of approximately 2.4B impact previously noted) weighed on performance. " " "

Distillates Revenue

Declined 5.3% (from $14,128M in Q1 2024 to $13,376M in Q1 2025)

Falling diesel margins and reduced throughput—stemming in part from lower crude oil differentials—exacerbated the revenue decline, building on challenges observed in prior periods where similar factors, such as a 680M impact from decreased diesel margins, had already affected performance. " " "

Ethanol Revenue

Declined 8.7% (from $1,104M in Q1 2024 to $1,008M in Q1 2025)

Significant reduction in ethanol and co-product prices dominated this decline despite a stable production volume. Compared to previous periods, the magnitude of the pricing pressure was larger, leading to a steeper percentage drop in revenue. " " "

Operating Cash Flow

Not a decline; Q1 2025 reported $952M

Positive cash generation from core operations indicates resilience despite revenue declines. This contrasts with the overall earnings metrics where operating losses emerged, suggesting that while cash flow remains healthy, underlying profitability is under pressure from cost and expense increases. "

Operating Loss / Net Loss

Q1 2025 reported a $900M operating loss and $652M net loss

Rising operating expenses (totaling $1,523M) outpaced revenue gains, leading to an operating loss, a shift from profit or break-even conditions seen in previous periods. This indicates that increased costs, possibly including non-cash charges, are impacting profitability even as cash flow remains strong. "

Capital Investments (FY 2025)

FY 2025

$2 billion; with $1.6 billion allocated to sustaining "

$2 billion; with $1.6 billion allocated to sustaining "

no change

Renewable Diesel – Sales Volumes

FY 2025

1.2 billion gallons "

1.1 billion gallons "

lowered

Renewable Diesel – Operating Expenses

FY 2025

$0.51 per gallon (incl. $0.22 noncash) "

$0.53 per gallon (incl. $0.24 noncash) "

raised

G&A Expenses (FY 2025)

FY 2025

$985 million "

$985 million "

no change

Refining Throughput – Gulf Coast

Q2 2025

1.72–1.77 million barrels per day "

1.75–1.8 million barrels per day "

raised

Refining Throughput – Mid-Continent

Q2 2025

415,000–435,000 barrels per day "

385,000–405,000 barrels per day "

lowered

Refining Throughput – West Coast

Q2 2025

190,000–210,000 barrels per day "

240,000–260,000 barrels per day "

raised

Refining Throughput – North Atlantic

Q2 2025

455,000–475,000 barrels per day "

320,000–340,000 barrels per day "

lowered

Refining Cash Operating Expenses

Q2 2025

$4.95 per barrel "

$5.15 per barrel "

raised

Ethanol – Production Volumes

Q2 2025

4.6 million gallons per day "

4.6 million gallons per day "

no change

Ethanol – Operating Expenses

Q2 2025

$0.41 per gallon (incl. $0.05 noncash) "

$0.41 per gallon (incl. $0.05 noncash) "

no change

Net Interest Expense

Q2 2025

$130 million "

$135 million "

raised

Depreciation & Amortization Expense

Q2 2025

$710 million "

$780 million "

raised

Refining Margins and Throughput Optimization

In Q2–Q4 2024, refining margins were a focal point: Q2 highlighted a higher‐margin outlook with throughput at about 3 MMbpd " " ; Q3 described a weak margin environment accompanied by throughput around 2.9 MMbpd and future outlook improvements " " " ; Q4 emphasized improved margins supported by low inventories and record heavy sour crude processing, with throughput utilization near 94%. " " "

Q1 2025 reports improved refining margins driven by slightly higher U.S. light product demand and lower inventories, while throughput averaged 2.8 MMbpd with acknowledged heavy maintenance effects. " "

Improving sentiment: The focus on inventory management and market demand has led to a more positive view of refining margins, while throughput adjustments remain an ongoing operational lever.

Operational and Maintenance Challenges

Across Q2–Q4 2024, heavy maintenance was consistently noted as both a headwind and a manageable challenge. Q2 discussed scheduled maintenance impacting renewable diesel and throughput guidance " " ; Q3 detailed heavy maintenance and efforts to keep operating expenses low despite rising costs " " ; Q4 highlighted maintenance at the Benicia refinery and efforts to improve mechanical availability. " "

Q1 2025 continues to underscore heavy maintenance activity as a significant focus. The call noted deferred maintenance in certain regions due to weather, a substantial allocation of sustaining capital, and its impact on throughput while also emphasizing operational flexibility. " " "

Consistent challenge with cautious management: While maintenance remains a top operational focus, improvements in planning and flexibility help mitigate its effects, indicating steady management despite recurring burdens.

Regulatory and Policy Uncertainties Impacting Biofuels

In Q2 2024, executives discussed BTC-to-PTC transitions, oversupply in the RIN market, and LCFS expansion as factors compressing renewable diesel margins " ; Q3 addressed international policy initiatives (e.g. Europe’s Fit for 55) and the implications of LCFS modifications and RIN price adjustments " " ; Q4 detailed challenges in the ethanol segment, the shift in biofuel tax credits, and uncertainties in RINs and LCFS responses. " " "

In Q1 2025, the discussion focused on the complexity around E15 adoption, insufficient U.S. ethanol production capacity (implying reliance on imports), and ongoing uncertainties in both the SAF and renewable diesel policy environments. " " "

Persistent uncertainty with emerging emphasis on logistics: Regulatory challenges continue to shape the biofuels outlook, with new stresses such as E15 supply-chain complexities layered onto longstanding policy uncertainties.

Global Feedstock Sourcing and Tariff Risks

Q3 2024 emphasized feedstock flexibility through domestic and global sourcing (e.g. waste oils and corn for ethanol) and noted minimal tariff risks due to foreign trade zones " " " ; Q4 2024 expanded on this by discussing the benefits from the Gulf Coast location and the potential impacts of Canadian tariffs, while also noting that tariff details remain uncertain. " " " " Q2 2024 did not address this topic.

Q1 2025 adds further nuance by discussing renewable diesel feedstock eligibility issues, the negative margin impacts for vegetable oils due to tariff changes, and operational disruptions such as a temporary suspension of the Mexico import permit, along with discussions of LPG tariffs and naphtha dynamics. " " "

Ongoing risk management with added nuance: While global feedstock flexibility remains a core strength, new details on feedstock eligibility and evolving tariff challenges underscore the need for proactive risk management.

Capital Allocation and Shareholder Returns

In Q2 2024, Q3 2024, and Q4 2024, strong capital allocation was a recurring theme. Discussions covered high payout ratios (80–87%), robust share buybacks, dividend increases, debt reduction (over $4B paid down since 2021), and multi-billion-dollar total shareholder returns cumulatively. " " " "

Q1 2025 reaffirms this commitment with a 73% payout ratio, returning $633 million to shareholders (via both dividends and buybacks) and a recent 6% dividend increase, underscoring a disciplined approach to capital allocation backed by a strong balance sheet. " " "

Steady and robust commitment: Despite market challenges, the company consistently prioritizes shareholder returns, reflecting financial discipline and stability.

Strategic Investments in SAF Projects and Export Market Expansion

Earlier periods featured active investment in SAF: Q2 2024 discussed the progression of the Diamond Green Diesel SAF project in Port Arthur with expectations to operate by Q4 " " ; Q3 2024 reported that the SAF project was mechanically complete and on schedule, with export premiums on products such as ethanol, naphtha, gasoline, and diesel noted " " " " ; Q4 2024 highlighted a successful early startup of the DGD SAF project and robust global sourcing enhancing export markets. " " "

Q1 2025 shows a more cautious tone on further SAF investments—while engineering work for a potential second SAF unit at St. Charles is complete, the company is waiting on clearer market signals and policy outlook—while export market expansion (especially in diesel/distillates) remains strong. " " "

Evolution from aggressive rollout to cautious expansion: Investments in SAF continue, but the pace is moderated by economic and policy uncertainties, whereas export market expansion remains a consistent growth driver.

Global Market Dynamics and Competitive Pressures

In Q2 2024, global dynamics were depicted with expectations of a higher refining margin environment bolstered by diesel demand and tightening capacity due to refinery closures " " " " ; Q3 2024 highlighted export premiums, improved naphtha demand, and increasing availability of heavy sour crude from OPEC and Canadian sources, despite competitive tariff chatter " " " " ; Q4 2024 noted influences from shutdowns, crude availability changes, and adjustments due to tariff discussions. " " "

Q1 2025 paints a picture of robust global demand for light products, with gasoline sales up by 1% and diesel volumes by 6%, significant inventory drawdowns, and expectations of favorable crude differentials given emerging market conditions. "

Overall improvement with cautious optimism: Global market dynamics are increasingly favorable—reflected in stronger demand and tighter inventories—yet companies remain mindful of competitive pressures and evolving crude supply conditions.

West Coast Asset Performance and Regional Operational Issues

Q2 2024 discussions centered on the West Coast’s high operating costs—with marginal economics, increased gasoline imports, and potential refinery closure risks " " ; Q3 2024 highlighted that the West Coast operated at the highest cost, faced regulatory pressures, and was the only region recording losses, prompting concerns about turnaround costs and strategic viability " " " " ; Q4 2024 noted maintenance issues at the Benicia refinery affecting production capture rates. " "

Q1 2025 emphasizes persistent challenges as seen with the decision to close the Benicia refinery, substantial impairments, and ongoing regulatory burdens that continue to make West Coast operations economically challenging compared to more robust assets like Wilmington. " " "

Consistently negative outlook: The West Coast remains a weak link, with mounting regulatory pressures and high operating costs continuing to erode profitability, making asset performance in this region a strategic risk.

Inflation and Rising Cost Pressures

In Q3 2024, Greg Bram noted that rising cost pressures—especially on maintenance expenses and catalyst chemicals—were challenging due to inflation, although low natural gas prices helped offset some of these pressures. " Q2 2024 had only tangential mentions (e.g. rising feedstock costs for renewables), while Q4 2024 did not specifically address inflation.

Q1 2025 did not include any explicit discussion of inflation or rising cost pressures, indicating either a lower emphasis on this topic or that it was less of a concern in the current period.

Limited and sporadic focus: While inflation was a headwind in Q3 2024, its absence in Q1 2025 suggests that either cost pressures have moderated or management has shifted its focus to other pressing topics.