PBF Energy Inc. (PBF) Q4 2025 Earnings Call Transcript

Good day, everyone, and welcome to the PBF Energy fourth quarter 2025 earnings conference call and webcast. At this time, all participants have been placed in a listen-only mode, and the floor will be open for questions following management's prepared remarks. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. Please note, this conference is being recorded. It is now my pleasure to turn the floor over to Colin Marais of Investor Relations. Sir, you may begin.

Thank you, Angeline. Good morning and welcome to today's call. With me today are Matt Lucey, our President and CEO, Mike Bukowski, our Senior Vice President and Head of Refining, Joe Marino, our CFO, and several other members of our management Copies of today's earnings release and our 10K filings, including supplemental information, are available on our website. Before getting started, I'd like to direct your attention to the Safe Harbor Statement contained in today's press release. Statements that express the company's or management's expectations or predictions of the future are forward-looking statements intended to be covered by the Safe Harbor provisions under federal securities laws. Consistent with our prior periods, we will discuss our results excluding special items, which are described in today's press release also included in the press release is forward-looking guidance information for any questions on these items or other follow-up questions please contact investor relations after today's call i'll now turn the call over to matt lucy thanks colin good morning everyone and thanks for joining our call i want to address three key topics one status of martinez for the market and our bottom line is work will be done this weekend next week the plant will be turned

over to operations and will commence a safe and methodical restart operational for the team that we would not be where we are today without the efforts and ingenuity of all involved martina's team a representative workforce our suppliers and many others who work collaboratively along the way just to get us to this point, and a safe, successful startup will be the culmination of their efforts. We eagerly look forward to getting back to full operations this quarter and supplying the California market with much-needed fuels. Q4 performance. PBF exited 25 on a strong trajectory. Sequential improvements demonstrate that even with expected seasonality, remained relatively strong as the quarter progressed. We directly benefited from improving crude dynamics. Increasing supply of heavy and medium crudes improved the light-heavy spreads and our predominantly coastal, highly complex refining system directly benefited. Taking shape in 26 is looking very good. Refining fundamentals should remain supported by tight refining balances with demand growth lining up well compared to transportation fuel capacity additions. Most of the refinery additions are in Asia and have a very high petrochemical yield. Sour crude differentials began widening in the middle of last year with OPEC plus taper and now have additional tailwind in 26 of Venezuela barrel. TBF is particularly well-suited and highly leveraged to market dynamic. And in California, with Martinez almost behind us, we look forward to participating in a market that is tighter on products. The near-term outlook for the company is certainly buttressed by the $230 million in achieved efficiencies that we reached in 2025 in place. Not complete. We have identified an additional $120 million of run rate savings for a total of $350 million that we expect to achieve by the end of this year. PBF remains focused on controlling the aspects of our rate safely, reliably, and we must do it as efficiently as possible. Instructive market dynamics achieved efficiencies. We should have the company set up to be clicking on all cylinders and drive positive results. Mike Bukowski.

Thank you, Matt. Good morning, everyone. Before updating on the progress of RBI, I'll provide a few comments on fourth quarter operations in our Martinez refinery. On the West Coast, I commend the Martinez team and all who have been involved in the rebuild effort. The unplanned nature of the project created a host of challenges that the organization met through creative problem-solving, ingenuity, and above all, excellent teamwork. The team has not only overcome these challenges, but they have executed the work so far in an industry top quartile safety performance my thanks to all involved in the project and all the safe work that has been done has been completed to date outside of martinez aside from a few minor issues our refineries operated reasonably well in the corner we kicked off a robust 2026 capital program in january beginning with the turnaround at torrance i'm happy to report that the mechanical portion of the turnaround has been completed per plan and the units are in the startup phase We have a busy year on the turnaround front in 2026. We previously provided guidance on the locations and totally anticipated expenditure for the year. These activities are weighted to the beginning and end of the year, leaving Q2 and Q3 relatively light from a planned maintenance perspective. I'm also happy to report that we are seeing results from our RBI program. by the end of 2025 we achieved our goal of 230 million dollars of annualized run rate savings this goal represents 50 cents a barrel or approximately 160 million dollar reduction in operating expenses against our 2024 benchmark and is incorporated in our 2026 budget additionally we reduced capital and turnaround expenditures by 70 million dollars while our 2026 total capital guidance is higher than 2025 on an absolute basis this is driven by an increased level of turnaround activity the savings reflect comparison against the year with similar scope we view our system-wide turnaround cycle as being in the five to seven year range and over time the savings and efficiencies gained on the capital program will become evident as you may recall we started this program with centralized efforts in procurement capital projects, organizational design, turnarounds, and site efforts at our Torrance and Delaware Valley refineries. As of today, all refineries are engaged in RBI and are contributing to the savings goals, and we are also working on a secondary cost initiative. As part of the overall RBI program, we have identified over 1,300 initiatives focused on improving operational and organizational efficiency. Some of these initiatives are small, and some in the millions of dollars in terms of benefits but they all sum up to a more competitive and improved cost structure the average value per initiative is in the half a million dollar range and we've implemented over 500 initiatives to date outside of our capital and energy initiatives the biggest opportunity we identified is our procurement practices we are implementing a centrally led procurement team which bring which brings value by leveraging our purchasing power Through this initiative alone, we expect to realize over $35 million in annual savings by revamping our procurement model. While we are improving our maintenance efficiency, reducing energy consumption, our main priority will always be to focus on safe, reliable, and responsible operations across our system. With that, I'm now turning the call over to Joe Marino for our financial overview.

Thanks, Mike. excluding special items, we reported adjusted net income of $0.49 per share and adjusted EBITDA of $258 million. Our discussion of fourth quarter results excludes the net effect of special items, including $41 million in incremental OPEX related to the Martinez refinery incident, a $394 million gain on insurance recoveries, a $313 million LTM inventory adjustment, a $2 million loss related to PBF's 50% share of SDR's LCM adjustment for the quarter, and approximately $8 million of charges associated with the RBI initiative, as well as other items detailed in the reconciling table in today's press release. The $394 million gain on insurance recoveries related to the Martinez Fire is a result of a third unallocated payment agreed to and received in the fourth quarter. This brings our total insurance recovery in 2025 to $894 million net of our deductibles and retention. Going forward, we will continue to work with our insurance providers for potential additional interim payments. However, the timing and amount of any agreed upon future payments will be dependent on the amount of incurred covered expenditures plus calculated business interruption losses. Our Q4 P&L reflects incremental OPEX at Martinez of $41 million, dollars 164 million dollars in total year date that we are reflecting as a special item because it relates to the construction of temporary equipment to restart undamaged units and other fire related non-capital expenses while we anticipate recovering a portion of this amount through insurance the specific amount will be determined as we finalize the claims process shifting back to our normal quarterly results discussion also included in our results is a $21 million loss related to PBS equity investment in St. Bernard Renewables. SBR produced an average of 16,700 barrels per day of renewable diesel in the fourth quarter. SBR's production was as expected, but results reflect the impact of broader market conditions in the renewable fuel space. While we saw improved pricing on credit size, much of this was offset by higher feedstock costs. Throughout the year, we've seen impacts in tariffs and regulatory uncertainty cascade through the feed markets, and the policy landscape continues to shift, adding volatility to the business. TBS cash flow from operations for the quarter was $367 million, which includes a working capital draw of approximately $80 million, mainly due to movements in inventory and falling commodity prices. As a preview, we expect first quarter CapEx and working capital outflows primarily related to the Martinez Restart and normal seasonal inventory patterns. Our Board of Directors approved a regular quarterly dividend of $0.27.5 per share. Cash dividends paid totaled $126 million in 2020. Cash invested in consolidated CapEx in the fourth quarter was $124 million, which includes refining, corporate, and logistics. This amount excludes fourth quarter capital expenditures of approximately $273 million related to the Martinez incident. 2025 CapEx, excluding Martinez, was approximately $629 million. On the surface, this figure is lower than expected, due primarily to CapEx pools that have not yet been cash settled as of year-end that will flow through this year. Given that and the noise related to the Martinez rebuild, 2025 and 2026 capital programs should be more broadly considered over a two-year period. Once the Martinez insurance claim is settled, we will be able to provide additional clarity. We ended the quarter with $528 million in cash and approximately $1.6 billion of net At quarter end, our net debt to cap was 28%, and our current liquidity is approximately $2.3 billion, based on current commodity prices, cash, and borrowing capacity under maintaining our firm financial footing and a resilient balance sheet remain priorities. As we look ahead, we expect to use periods of strength to focus on reducing both our gross and net debt. Operator, we've completed our opening remarks, and we'd be pleased to take any questions.

Thank you. In a moment, we will open the call to questions. If you would like to ask a question, please press star 1 on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star 2 if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star key. One moment, please, while we call for questions. Your first question comes from the line off, Manav Gupta from UBS Financial. Please go ahead.

Good morning. Congrats on a strong result. My first question is when we look at PBF as a percentage of total feedstock, you probably use more medium and heavy sours than anybody else out there in the U.S. refining system. Now, we are already seeing those dips widen out. Could be a function of additional Venezuela barrels coming in, other stuff. But I'm basically trying to understand, you know, Chevron has said they can increase production by 50% from Venezuela. As these additional crude barrels come to U.S. and maybe hit the global markets, can you help us understand the tailwind it will create from PBF from this point on?

Manav, thanks for the question. And you're right on point in regards to PBF's ability. But no one consumes or has the ability to consume as much heavy and sour material as PBF, upwards of 55% or 60% of our total. So who's the best boxer? Well, who's pound for pound the best boxer relative ability? So you have, in our system, it's 200 million barrels a year that we process medium sour or heavy sour. to my boxing analogy, every dollar you get on crew diff equates to a $200 million improvement for our business. And as you say, I'm not sure anyone is levered. And so as we see incremental barrels come on, and this started back in the spring, started taper, and there's going to be a lag to that. We saw that and even over the news on Maduro pit. And then we, in a number of weeks ago with Venezuela. That just is more supply into our marketplace. And the reality is the impact to the U.S. refining system with those sanctions being lifted is instantaneous. Yes, there'll be many, many years of investment and potential growth in Venezuela. But overnight, essentially, The market has been opened up from where it was fairly curtailed under the Chevron, you know, it essentially all being available into the U.S. Gulf Coast and into the U.S. market. So that's very, very positive, the industry and PBF in particular.

Perfect, sir. My follow-up quickly is on Martinez. I think you have actually listed 16 February is the day when all the construction comes to an end, which is just four days, which is not much can go wrong there. But I'm just trying to understand, to make an airtight case, what should we be watching between 16 February and probably March 7 to make sure that the refinery actually is able to fully restart by the first week of March? I mean, your competitor, which was looking to close the refinery in April, looks like he's closing now. And then the pipelines, they may get there in three years. So you could see much above mid-cycle earnings for three and a half to four years if you can get this project fully up and running. if you could talk a little bit about that.

Absolutely, Manav, and you're right. We're essentially right up against the finish line here. It's been an incredible process to go to the team out there, and it's not only just the Volcomart team. It's a large number of PBF employees that even weren't in San Francisco that have dedicated the better part of bringing this facility up much faster. The marketplace in California, I think, is going to be particularly interesting. You have a much tighter product market. We've talked a lot about that. And that, you know, what we've talked about prospectively is now upon us. The competitor in San Francisco that you have by press reports, that has now been shut down or ceased operations. And so you've got a very, very tight product market, upwards of 250,000 barrels a day of gasoline, the amount of jet fuel, and indeed the state, you know, additional 50,000 barrels a day of RD, and it's just associated with that amount every day, putting aside a place that needs to attract. We think it's set up attractively on the product side. But you can't ignore the crude side as well, where less buyers that we have in place. you know, being very, very good. And so we've talked a lot about it. We think California is going to be particularly interesting. The new dynamics, and there's been a lot of shifting dynamics. But in regards to Martinez, there'll be a methodical restart. We haven't run that catcracker in a year, and we're going to take our time and do it right.

Thank you for a detailed response. Looks like 2026 is going to be a much stronger year for you than 2025. Thank you so much.

Thanks, Manav. thank you the next question comes from the line of ryan todd from piper sandler please go ahead thanks uh good morning um maybe start on the refining side on margin capture improves significantly in the fourth quarter can you talk about some of the drivers of the improvement um and how some of these trends including things like crude differentials might remain a tailwind for or the first quarter of 26 and beyond?

Crude differentials is the big story. First of all, it's riding reliable. Nothing beats in terms of impact. Widening crude differentials, the degree that crude differentials widen, we get 100% of that. And that's where, so its own dynamics, being a mid-count refiner, has cost crude every dollar of improvement.

Maybe a follow-up on the refinery business improvement initiative, the RBI as well, of the can you maybe provide a little more color granularity of like of the 230 million that run rate that you've captured today could you bucket you know kind of where you've seen those improvements what have been the biggest drivers and as we look forward towards the incremental improvements um expected over the course of this year um you know kind of where where should those improvements show up and how should we see them flow through the results okay uh this is mike Thanks for the question.

For the $230 million, as we said, $160 of that is in OPEX. Of that OPEX breakdown, it's largely driven by what we call third-party spend. And so things like our procurement practices, how we interact with our vendors or suppliers, service providers, and material suppliers, that's a big piece of it. The other piece is in the area of energy consumption. We've made a lot of strides in being able to improve. On the capital side, it's larger driven by turnaround performance. And this is something that actually started prior to RBI, where we've implemented rigor and discipline in our turnaround planning and scope development practices. We've been on this journey, as I said, for over two years, where we focused on getting very predictive in our results, but now it's improvement or expected. We are also working on our sustaining capital. I think about the $120 million going, not so much in the whole side, mainly because I think from a turnaround perspective, we are pushing towards a balance. We don't want to be very, very top for spending appropriately in maintaining our units, but we also want to maintain competitiveness.

Thank you.

Thank you. The next question comes from Metta Neal from Goldman Sachs. Please go ahead, sir.

Yeah, good morning, Matt, and good morning, team. I just wanted to build on the balance sheet comments from the opening remarks. I think you said you're at $1.6 billion in net debt. Matt, as you think about the optimal balance sheet, what's the right level of net debt as you think about it, either as a percentage of your capital structure or on an absolute basis? And talk about the path to get there.

Well, you know, what's optimal is a funny question. And to the degree, you need to take that opportunity to not only de-lever, but somewhat get under-levered. And, you know, you saw that over the last, you know, coming out of 22, we got ourselves under-levered. And even in the difficult part of 24, from a crude perspective, we never got to an uncomfortable place in regard. So, you know, the capital structure and debt, in my personal view, you know, where you allocate capital as you're entering what looks like a very, very constructive marketplace, you start to blend debt repayments, because as we reduce net debt, we should see a dollar for dollar, essentially return, I'm talking about money that we don't have in hand yet.

Yeah, Matt, and that's the follow-up, which is, as I think about the product markets going into this year, we have really good strength in the curve on the distillate heating oil side, and then you've got relative weakness in gasoline, and there's some seasonality to that as well. But just as you think about the spread between those two products, do you see a scenario where gasoline catches up through the year, and just your thoughts on the fundamentals of the underlying products?

Hey, Neil, it's Tom. In terms of addressing that comment sort of really around gasoline, obviously there's, you know, seasonal swoon sort of coming out of the fourth quarter with we're into the seasonalities. And I think it's really kind of coming around the changing dynamic, which has been taking place. That sort of changes a little bit of the dynamic, sort of continue to sort of drive the bus a little bit underreported, right? Just kind of continuously. We've seen constant revisions. And on the diesel equation, you know, I think it's a bit of the same kind of the fourth quarter, but, you know, pad one over the last two weeks has gone from sort of, you know, sort of looking at a moderating space to now we're, you know, basically, you know, at or below the five-year in quite some time, in a very short amount of time. You know, the incentives are going to continue to be there. I mean, we see the refining balances, you know, tight, and, you know, the additions which are coming this year are more in the second half of the year and very high in the petrochemical side so you know the outlook for products um you know we're certainly constructive thank you thank you the next question comes from doug legate with wolf research please go ahead oh thanks good morning everybody um matt great to see uh martinez coming back it's been a long time coming but um i wonder if if i could turn my questions to the

insurance part of that what we're trying to figure out is uh how much of the insurance proceeds that have come in so far have still to be paid out uh in terms of repairs and i guess related how do you even begin to quantify the lost opportunity cost given that martin's were obviously distorted by the fact that martinez was offline so trying to get an idea how the net challenge cash balance normalizes when you've you've paid out everything and received everything you will you expect to get that's my first one i've got a follow-up please sure from an insurance standpoint uh the proceeds we received so far have been unallocated and they will be unallocated

likely through the end of the claim um so we don't have a definitive outline of you know how much we received so far as relates to capital expenses or BI. But we do feel very good from an insurance standpoint that all the property-related capital rebuild costs will be fully covered. And then the BI, I think to answer your second part of the question, which covers part of that lost opportunity, that's a bit of a nuanced process where we work through with the insurance and providers, and we have developed a model indicating, you know, how we would have performed if no incident occurred and how, you know, compared to how the market performed, and will be paid out accordingly, you know, to recover a good portion of the losses during that period.

The reality is on the BI side, and Doug, there's a whole kind of, there's a lot of nuances, is a lot of gray, many, many years, towards the end, able to cover a lot of ground.

Okay. Thank you for that. My follow-up, guys, Colin and I have gone backwards and forwards in this, and I'll tell you, honestly, we've removed the liability for RINs from our assessment of your valuation after talking to him. But I wanted to ask the question about your RIN liability and why, if you could articulate for everyone listening, why you believe that that would never have the equivalence of net debt and how it might have been impacted by the fact that written costs have obviously ballooned significantly since the new RBO was proposed at the beginning of the year.

I'm sorry, you're going to make my negotiation with Collins. He's going to be requiring more money now, but what was your connection between RBO and net debt? I missed that. I'm sorry.

Okay. So you have a rent obligation, a liability on your balance sheet. But my understanding is you never expect to pay that. I'm assuming that the liability will have gone up as a consequence of what's happened to rent prices. And what I'm asking is, why should we assume that that is never an actual liability in terms of something you have to pay out, and therefore it does not have the equivalence of net debt.

Well, maybe just to clarify a bit there, we do ultimately have to settle on the RINs obligation, and it's a rolling liability. In other words, we continue to incur it as we operate our business. So to the extent you settle one period, you're going to be incurring another. So from neutral, exactly. It's like any other working.

All right. I'll take it offline again, Paul, but thanks, guys. I appreciate it.

In regards to RINs going up, they have gone up, and the reality is they've gone up. They've essentially doubled since before. The RIN is different than it was 10 years, and the market has evolved. It is not perfectly efficient, and so therefore they're – so you have that aspect, and you also have the potential for rising RIN prices, the price of gasoline. And so we've seen RIN prices double over the last 13 months. We're working very hard, obviously, in Washington, but also to make sure they understand that if they're not careful, we've been pretty active on that.

Appreciate it, guys.

Thank you. The next question comes from Philip Junworth from BPO Capital Markets. Please go ahead.

On the 1Q throughput guidance, East Coast is a bit light versus the annual numbers. There isn't any planned turnaround. So is this just the winter storm impact that we're seeing? And then West Coast would be implied to run mid-90% utilization for the rest of the year after the Torrance turnaround and Martinez startup. So what's the confidence in seeing the higher utilization after the first quarter on the coast to take advantage of what should be a higher margin environment?

Work now is essentially clean for the rest of the year. Martinez will be there after.

Okay, great. And then coming back to the wider crude dip conversation, is this something that you think can be sustained mid-year or into the second half, just as we see higher summer demand, Canadian turnaround, OPEC hitting the pause, new complex refinery startups at your end? And or do you think there's enough tailwinds here with Venezuela rising Canadian crude production where this can be the new normal? Just just trying to understand what's what's seasonal versus structural here on on crude dips in your view.

Yeah, Philip, it's Tom. I mean, I think you raise a great question in terms of the sort of structural versus seasonal aspects. But, I mean, I think the way that we're looking at this is that, you know, in some aspects, you've had effectively a barrel which has not been able to trade Iranian Venezuelan. So I think in that aspect, from everything that we're seeing here today, the crude market, I think that takes that to putting it sort of in the structural camp as opposed to, you know, because in some aspects, we're going to be at a scenario where if the U.S. continues on its growth in terms of the imports that are coming from there, it's going to eventually start the ability for, you know, coking capacity in the U.S., and we'll start to fill that out. I do not think we're there yet, but I think the other thing that's important to note through this whole thing when we're talking about the crude differential situation, what we are starting to see at this point is, you know, a sort of persistent improvement in the light side of the barrel, right? I mean, we're not sitting here this year talking about prolific growth in the U.S. market for shale from a little bit more seasonal, but, you know, we've seen, you know, very, very strong strength in dated print, and that's been coming from the disruptions that have been taking place in the Black Sea, we have a little bit of a, you know, differentials and, you know, I certainly see from our seats that, you know, we're not sort of, I don't think we're missing anything that's enough of the information.

Very helpful. Thanks, guys.

Thank you. The next question comes from Paul Chen from Scotia. Please go ahead.

Hey, guys. Good morning. The first question I think is maybe for Joe or Mike. With the RBI, the continual benefit and all that, it does look like 2025, your Op X is down about $100 million versus the 2024. So it does seem like it has shown up some benefit in here. Can you tell us that with the inflation, higher natural gas price, but continual benefit from the RBI, how should we expect in the 2026, is 2020 that you think that you will have enough initiative that to offset the increase from the higher full-put because Matinsa is coming back, the invasion and also the higher natural gas price, or that that may not be able to fully offset yet. So that's the first question. And the second question is that… Oh, okay. Please go ahead, Joe.

Sorry, I didn't mean to cut you off there, but just to answer the first question, yes, the RBI savings that we put forth out there are net of inflation. And so if you're looking at the 2026 guidance on OPEX versus what we've done in 24, I think one of the key things to point out, because the RBI savings are embedded in that guidance, is that we are using a natural gas price assumption that if you look compared to what natural gas prices were back in 2024, that is going to be an increase. But if you normalize for that, you'd see that the savings for RBI are baked in.

Joe, you're saying that a lot of work has been done on the energy intensity. So what is now the sensitivity for every $1 move in natural gas price? What's the impact to your core structure?

Generally, a dollar increase will equal about $100 million.

I'm sorry, a hundred and...

One dollar would equal a $100 million increase.

A hundred million?

A hundred million.

All right. And the second question is that, sequentially, from the third to the fourth quarter, the West Coast margin jumped significantly, and that the industry margin actually gone down. So trying to understand that, and you are still in the process of fixing a teaser. So what's causing that big improvement in the margin capture in the fourth quarter? And is there any one-off benefit that we should be aware?

No, not anything won. I mean, it speaks to the same thing we've been talking about across the system, which is, you know, running reliably, running more efficiently, and then lower is the driver. Nothing more complex than that.

Yeah, but that the industry margin actually was down, but that your capture or that your actual realization up quite meaningfully. And your operation, is it really that much different with Matinsa? It's still under repair. So, I mean, is our operation really, I mean, can you tell us, give us some idea that how the operations have improved in the fourth quarter versus the third quarter that lead to such a big improvement in your capture?

Again, I draw you to the cost of crude now. I'm not sure the industry margin that you're looking at. with my answer. Reliable, efficient operations, the drivers. And indeed, I sort of view California as a microcosm where you've got a tight product market and a losing crude market. California is its own unique little market with its own dynamics. And obviously, it's had closures there, which have made the product market much, much tighter. But you also have a dynamic crude market in California that you're unable to export California crude. So as crude, and there's less buyers of crude, your crude differentials are crude. Now, going forward, getting out of the third, respectively, we're up and running. We view it as an attractive market for us. Again, we're going to have a clean run. And you're going to have a very good food.

Thank you.

Thank you. The next question comes from Jason Giebelman with Diddy Cohen. Please go ahead.

Good morning.

Thanks for taking my questions.

I wanted to ask on CapEx because, you know, 25 and 26 turnarounds, as you mentioned, are a bit active. How do you see kind of the turnaround schedule trending after this? Should we take kind of last year and this year as a normalized cadence or do you think it's more active and throughput should expand in future years?

I'll make a comment and hand it over to Mike. This year is particularly large. We have more man hours with all the work we're doing this year over last year. And by the way, you know, I know it's hard to reconcile RBI. You know, you see a higher turnaround. The man hours have gone up 30%. And if you look closely and we can help you, you'll see the benefits of our RBI program. This year is a particularly heavy turnaround year, but we absolutely – Yeah, I would look at 27, 28, 29 to be more in terms of the scope.

Great. And my follow-up is just going back to the insurance proceeds. And I know you've tried to steer us away from trying to break out those proceeds from business interruption insurance and then the cost to fix Martinez. But I noticed in your financials, you do attribute part of it in cash flow from ops and then part of it in cash flow from investing. So, is that split indicative of the interruption insurance versus the insurance to fix the equipment, or do we not look at it that way?

I think at the moment, that's an accounting convention that we've elected to present at. That's not necessarily indicative of where it's going to end out when the claim is settled. So, when the claim is settled, that's when the final kind of – Thanks.

I'll leave it there.

Thank you. We have reached the end of the question and answer session, and we'll now turn the call over to Matt Luzzi for closing remarks. Please go ahead.

Thank you very much for participating, and as I said, we look forward to very positive results in the quarters to come. Have a pleasant weekend. Talk to you soon.

Thank you. This concludes today's conference, and you may now disconnect your lines at this time. Thank you for your participation.