Martinez Refinery's Final Stages: Full Operations Anticipated by March
PBF Energy is in the closing weeks of its major recovery project at the Martinez refinery, impacted by the fire in early 2025. While the original timeline slotted a full restart by the end of 2025, the company now expects to achieve planned operating rates by the beginning of March 2026. During the recovery, throughput at Martinez has run between 85,000 and 105,000 barrels per day, with commissioning of key equipment and phased restarts now underway.
CEO Matt Lucey credited employees and regional regulators for their efforts in restoring the facility, underscoring PBF’s commitment to safety and reliability as it works to return this major West Coast operation to full strength. The Martinez refinery plays a critical role in fulfilling California’s demand for refined products.
Insurance Reimbursements Provide Significant Financial Cushion
PBF’s recovery from the Martinez fire has been buffered by strong insurance arrangements. As of the fourth quarter, insurers have paid a total of $893.5 million in unallocated reimbursements in 2025, net of a $30 million deductible and retentions. In addition to physical damage coverage, PBF expects business interruption insurance will substantially offset lost profits through the restart, following an initial 60-day waiting period.
This robust insurance backing not only accelerates recovery but provides a measure of stability for shareholders concerned about near-term cash flow disruption. The timing and size of further insurance proceeds will depend on actual covered expenses and calculated losses.
2026 Throughput Guidance Projects Consistency Across Regions
PBF has released detailed annual throughput expectations for 2026, highlighting its multi-region operational footprint. The table below summarizes expected daily throughput ranges:
| Region | Low (barrels/day) | High (barrels/day) |
|---|---|---|
| East Coast | 300,000 | 320,000 |
| Mid-continent | 135,000 | 145,000 |
| Gulf Coast | 170,000 | 180,000 |
| West Coast | 280,000 | 300,000 |
The Martinez refinery’s return is integral to West Coast performance, with guidance suggesting a robust rebound once full capacity is restored. Meanwhile, the company has synchronized turnaround and maintenance schedules across its refining network, balancing operational reliability and throughput optimization.
Maintaining Momentum Through Planned Turnarounds and Strategic Focus
PBF plans targeted maintenance and turnarounds throughout 2026, aiming to sustain long-term asset health and operational flexibility. Notable projects include the West Coast’s Torrance (Q1) and Martinez (Q2) units, Gulf Coast crude unit in Q4, and additional turnarounds planned for the East Coast and Mid-continent refineries. These efforts are structured to minimize disruptions while maximizing uptime when market conditions are favorable.
The company’s broader outlook emphasizes operational safety, continuous improvement, and prudent risk management. Forward-looking statements remind investors that market factors, regulatory requirements, and unforeseen events could shift timelines or throughput volumes, but the strategic use of insurance and resilient operating practices offer added confidence.
Takeaway: Resilient Execution and Strong Insurance Support Set PBF Up for 2026
PBF Energy’s progress in Martinez underscores both operational discipline and the value of risk mitigation through comprehensive insurance coverage. With refined product demand steady and regional guidance showing consistent throughput, the company appears well-positioned to deliver stable performance in 2026—provided that maintenance schedules and market conditions remain manageable.
Investors will want to monitor the final stages of the Martinez restart in early 2026 and future insurance developments, as these will be key drivers shaping PBF’s financial narrative for the year ahead.
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