Total Revenue

30,258 million USD in Q1 2025 vs. 31,759 million USD in Q1 2024 (-4.7%)

Total revenue fell by approximately 4.7% YoY largely due to a continued downward pressure on petroleum-based product prices and lower volumes, reflecting ongoing market challenges similar to those seen in previous periods. " " "

Refining Segment Revenue

28,759 million USD in Q1 2025 (represents ~95% of total revenue)

The Refining segment remains the primary revenue driver, accounting for about 95% of total revenue, but its performance aligns closely with overall revenue declines as it is impacted by weaker margins and lower product prices—a trend that persisted from prior periods. "

Ethanol Segment Revenue

1,225 million USD in Q1 2025

Ethanol revenue at 1,225 million USD illustrates a consistent contribution despite the overall revenue decline. This segment's performance is maintained relative to the broader market downturn affecting the other segments. "

Operating Performance

Operating loss of (900) million USD and net loss of (652) million USD

The operating loss and net loss in Q1 2025 underscore critical margin pressures and cost challenges, likely stemming from declining revenues and diminished operating margins compared to previous more robust periods. "

Operating Cash Flow

Positive at 952 million USD

Despite operating losses, operating cash flow remained positive at 952 million USD due to favorable non-cash adjustments and working capital changes, indicating that cash generation from core operations helped mitigate reported losses as seen in historical periods. "

Cash and Cash Equivalents

Dropped by ~5.8%: from 4,917 million USD to 4,634 million USD

Cash decreased by about 5.8% YoY as ongoing capital investments, stock repurchases, and dividend distributions continued to consume cash, a trend that reflects previous periods’ strategies for managing liquidity amid market fluctuations. " "

Inventories

Fell by roughly 10%: from 7,912 million USD to 7,119 million USD

Inventories declined by approximately 10% YoY, likely due to operational adjustments in response to lower demand and production levels, echoing previous period trends where inventory management was tightened amid revenue underperformance. " "

Total Current Assets

Decreased by approximately 8%: from 25,674 million USD to 23,590 million USD

The overall shrinkage in total current assets (around 8% YoY) was driven mainly by the drop in cash and receivables, even as inventories slightly fluctuated, continuing the asset contraction experienced in earlier periods. " "

Stockholders’ Equity

Contracted by nearly 10%: from 26,057 million USD to 23,490 million USD

A 10% contraction in stockholders’ equity reflects the cumulative impact of net losses, reduced retained earnings, and aggressive stock repurchases, which have eroded equity much like previous periods when margin pressure and shareholder return activities weighed on the balance sheet. " "

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.