- Second quarter income from operations of $1,706.6 million (excluding special items, second
quarter income from operations of $1,784.2
million)
- Reduced consolidated debt by more than $2.2 billion including a $900 million revolving credit facility repayment,
$45 million debt reduction at PBF
Logistics and the redemption of $1.25
billion senior secured notes on July
11, 2022
- Net debt to capitalization reduced to 24% versus 59% at
year-end 2021, excluding special items
- PBF Energy Announces Agreement to Acquire Remaining Public
Stake in PBF Logistics LP
PARSIPPANY, N.J., July 28,
2022 /PRNewswire/ -- PBF Energy Inc. (NYSE:PBF) today
reported second quarter 2022 income from operations of $1,706.6 million as compared to income from
operations of $147.5 million for the
second quarter of 2021. Excluding special items, second quarter
2022 income from operations was $1,784.2
million as compared to a loss from operations of
$120.5 million for the second quarter
of 2021. PBF Energy's financial results reflect the consolidation
of PBF Logistics LP (NYSE: PBFX), a master limited partnership of
which PBF Energy indirectly owns the general partner and
approximately 48% of the limited partner interests as of
quarter-end.
The company reported second quarter 2022 net income of
$1,235.8 million and net income
attributable to PBF Energy Inc. of $1,203.7
million or $9.65 per share.
This compares to net income of $69.9
million, and net income attributable to PBF Energy Inc. of
$47.9 million or $0.39 per share for the second quarter 2021.
Non-cash special items included in the second quarter 2022 results,
which decreased net income by a net, after-tax expense of
$116.5 million, or $0.93 per share, consisted of a change in the tax
receivable agreement liability, a change in fair value of the
contingent consideration associated with earn-out provisions
related primarily to the Martinez Acquisition, a net tax benefit on
remeasurement of deferred tax assets and a gain on the
extinguishment of debt related to the repurchase of a portion of
our outstanding unsecured notes. Adjusted fully-converted net
income for the second quarter 2022, excluding special items, was
$1,329.2 million, or $10.58 per share on a fully-exchanged,
fully-diluted basis, as described below, compared to adjusted
fully-converted net loss of $152.6
million or $(1.26) per share,
for the second quarter 2021.
Tom Nimbley, PBF Energy's
Chairman and CEO, said, "PBF's second quarter results reflect the
impact of tight global supply and surging, post-pandemic demand.
Our strong financial results are allowing us to accelerate the
repayment of debt we incurred during the pandemic and continue
actions to strengthen our balance sheet."
Mr. Nimbley concluded, "We operated well during the second
quarter and completed the bulk of our 2022 planned turnaround
activity in the first half of the year. We see demand remaining
strong even in the face of economic uncertainty. Global product
inventories remain low and refineries are running at high
utilization to keep pace with demand. We expect that with a solid
operating performance, PBF will be able to generate incremental
free cash flow that can be used to further strengthen our balance
sheet and reward our investors."
Strategic Update and
Outlook
PBF is committed to recovering from the effects of the pandemic
and evolving into a more resilient and diversified company moving
forward. Over the last year and half, we have reduced consolidated
debt by over $2.6 billion including
the July 11, 2022 redemption of the
9.25% Senior Secured Notes due 2025. Our unsecured debt is now
below pre-pandemic levels after over $250
million of open-market purchases at a discount to
face-value. We believe these measures provide significant value to
shareholders in the near-term and, more importantly, provide
long-term value through a strong balance sheet supported by
increased cash flow.
PBF continues to advance our project for a renewable fuels
production facility co-located at the Chalmette refinery. This
strategically valuable project represents an initial step in PBF's
pursuit of producing sustainable fuels. During the second quarter
of 2022, we invested approximately $52
million to continue to progress and incubate the project
with the goal of being in production in the first half of 2023.
Concurrent with our activities to progress the project, we are
continuing discussions with potential strategic and financial
partners.
As always, the safety and reliability of our core operations are
paramount. We continue to invest in all of our assets and expect
full-year 2022 refining capital expenditures in the $500 to $550
million range, which includes advanced purchases of material
for future turnarounds. Our annual maintenance, environmental,
regulatory and safety capital expenditures are consistently in the
$150 to $200
million range. For the second half of 2022, we expect to
incur turnaround-related capital expenditures of approximately
$100 to $125
million.
Expected throughput
ranges (barrels per day)
|
|
Third Quarter
2022
|
Full-year
2022
|
|
Low
|
High
|
Low
|
High
|
East Coast
|
295,000
|
315,000
|
270,000
|
290,000
|
Mid-continent
|
160,000
|
170,000
|
150,000
|
160,000
|
Gulf Coast
|
180,000
|
190,000
|
175,000
|
185,000
|
West Coast
|
290,000
|
310,000
|
300,000
|
320,000
|
Total
|
925,000
|
985,000
|
895,000
|
955,000
|
PBF Energy Inc. and PBF Logistics LP today announced a
definitive agreement and plan of merger pursuant to which PBF
Energy will acquire all of the outstanding common units of PBF
Logistics it does not already own directly or indirectly for a
combination of PBF Energy Class A common stock and cash. PBF Energy
beneficially owns approximately 48% of the outstanding common units
of PBF Logistics as of July 28, 2022.
For additional information on this transaction please refer to the
separate joint press release published today.
Adjusted Fully-Converted
Results
Adjusted fully-converted results assume the exchange of all PBF
Energy Company LLC Series A Units and dilutive securities into
shares of PBF Energy Inc. Class A common stock on a one-for-one
basis, resulting in the elimination of the noncontrolling interest
and a corresponding adjustment to the company's tax
provision.
Non-GAAP Measures
This earnings release, and the discussion during the management
conference call, may include references to Non-GAAP (Generally
Accepted Accounting Principles) measures including Adjusted
Fully-Converted Net Income (Loss), Adjusted Fully-Converted Net
Income (Loss) excluding special items, Adjusted Fully-Converted Net
Income (Loss) per fully-exchanged, fully-diluted share, Income
(Loss) from operations excluding special items, gross refining
margin, gross refining margin excluding special items, gross
refining margin per barrel of throughput, EBITDA (Earnings before
Interest, Income Taxes, Depreciation and Amortization), EBITDA
excluding special items and Adjusted EBITDA. PBF believes that
Non-GAAP financial measures provide useful information about its
operating performance and financial results. However, these
measures have important limitations as analytical tools and should
not be viewed in isolation or considered as alternatives for, or
superior to, comparable GAAP financial measures. PBF's Non-GAAP
financial measures may also differ from similarly named measures
used by other companies. See the accompanying tables and footnotes
in this release for additional information on the Non-GAAP measures
used in this release and reconciliations to the most directly
comparable GAAP measures.
Conference Call
Information
PBF Energy's senior management will host a conference call and
webcast regarding quarterly results and other business matters on
Thursday, July 28, 2022, at 8:30 a.m.
ET. The call is being webcast and can be accessed at PBF
Energy's website, http://www.pbfenergy.com. The call can also
be accessed by dialing (877) 869-3847 or (201) 689-8261. The audio
replay will be available approximately two hours after the end of
the call and will be available through the company's website.
Forward-Looking
Statements
Statements in this press release relating to future plans,
results, performance, expectations, achievements and the like are
considered "forward-looking statements" within the meaning of the
Private Securities Litigation Reform Act of 1995. These
forward-looking statements involve known and unknown risks,
uncertainties and other factors, many of which may be beyond the
company's control, that may cause actual results to differ
materially from any future results, performance or achievements
expressed or implied by the forward-looking statements. Factors and
uncertainties that may cause actual results to differ include but
are not limited to the risks disclosed in the company's filings
with the SEC, as well as the risks disclosed in PBF Logistics LP's
SEC filings and any impact PBF Logistics LP may have on the
company's credit rating, cost of funds, employees, customers and
vendors; risks related to the merger with PBFX, including the risk
that the transaction is not consummated during the expected
timeframe, or at all; the effects related to or resulting from
Russia's military action in
Ukraine, including the imposition
of additional sanctions and export controls, as well as the broader
impacts to financial markets and the global macroeconomic and
geopolitical environment; the supply, demand, prices and other
market conditions for our products or crude oil; our expectations
with respect to our capital spending and turnaround projects; risks
associated with our obligation to buy Renewable Identification
Numbers and related market risks related to the price volatility
thereof; our ability to make, and realize the benefits from,
acquisitions or investments, including in renewable diesel
productions, on any announced time frame or at all; the continued
effect of the COVID-19 pandemic and related governmental and
consumer responses; the impact of market conditions on demand for
the balance of 2022; and the impact of adverse market conditions
affecting the company, unanticipated developments, regulatory
approvals, changes in laws and other events that negatively impact
the company. All forward-looking statements speak only as of the
date hereof. The company undertakes no obligation to revise or
update any forward-looking statements except as may be required by
applicable law.
About PBF Energy Inc.
PBF Energy Inc. (NYSE:PBF) is one of the largest independent
refiners in North America,
operating, through its subsidiaries, oil refineries and related
facilities in California,
Delaware, Louisiana, New
Jersey and Ohio. Our
mission is to operate our facilities in a safe, reliable and
environmentally responsible manner, provide employees with a safe
and rewarding workplace, become a positive influence in the
communities where we do business, and provide superior returns to
our investors.
PBF Energy Inc. also currently indirectly owns the general
partner and approximately 48% of the limited partnership interest
of PBF Logistics LP (NYSE:PBFX).
|
EARNINGS RELEASE
TABLES
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
(Unaudited, in
millions, except share and per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
|
|
|
|
|
June
30,
|
|
June
30,
|
|
|
|
|
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
Revenues
|
|
$ 14,077.7
|
|
$
6,897.9
|
|
$ 23,219.4
|
|
$ 11,822.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost and
expenses:
|
|
|
|
|
|
|
|
|
|
Cost of products and
other
|
|
11,380.5
|
|
6,100.7
|
|
19,586.7
|
|
10,291.7
|
|
Operating expenses
(excluding depreciation and amortization expense as reflected
below)
|
|
637.6
|
|
483.8
|
|
1,258.0
|
|
965.1
|
|
Depreciation and
amortization expense
|
|
120.1
|
|
111.6
|
|
238.4
|
|
225.7
|
Cost of
sales
|
|
12,138.2
|
|
6,696.1
|
|
21,083.1
|
|
11,482.5
|
|
General and
administrative expenses (excluding depreciation and amortization
expense as reflected below)
|
|
153.2
|
|
55.0
|
|
206.7
|
|
102.8
|
|
Depreciation and
amortization expense
|
|
1.9
|
|
3.3
|
|
3.8
|
|
6.7
|
|
Change in fair value of
contingent consideration
|
|
77.6
|
|
(4.0)
|
|
127.9
|
|
26.1
|
|
Loss (gain) on sale of
assets
|
|
0.2
|
|
—
|
|
0.3
|
|
(0.6)
|
Total cost and
expenses
|
|
12,371.1
|
|
6,750.4
|
|
21,421.8
|
|
11,617.5
|
Income from
operations
|
|
1,706.6
|
|
147.5
|
|
1,797.6
|
|
205.2
|
Other income
(expense):
|
|
|
|
|
|
|
|
|
|
|
Interest expense,
net
|
|
(85.5)
|
|
(80.8)
|
|
(163.9)
|
|
(161.1)
|
|
Change in Tax
Receivable Agreement liability
|
|
(267.2)
|
|
—
|
|
(286.5)
|
|
—
|
|
Change in fair value of
catalyst obligations
|
|
7.2
|
|
5.8
|
|
2.3
|
|
(4.2)
|
|
Gain on extinguishment
of debt
|
|
3.8
|
|
—
|
|
3.8
|
|
—
|
|
Other non-service
components of net periodic benefit cost
|
|
|
2.2
|
|
1.9
|
|
4.4
|
|
3.9
|
Income before income
taxes
|
|
1,367.1
|
|
74.4
|
|
1,357.7
|
|
43.8
|
Income tax expense
(benefit)
|
|
131.3
|
|
4.5
|
|
125.2
|
|
(3.9)
|
Net
income
|
|
1,235.8
|
|
69.9
|
|
1,232.5
|
|
47.7
|
|
Less: net income
attributable to noncontrolling interests
|
|
32.1
|
|
22.0
|
|
49.9
|
|
41.1
|
Net income
attributable to PBF Energy Inc. stockholders
|
|
$
1,203.7
|
|
$
47.9
|
|
$
1,182.6
|
|
$
6.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income available
to Class A common stock per share:
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
9.93
|
|
$
0.40
|
|
$
9.78
|
|
$
0.05
|
|
|
Diluted
|
|
$
9.65
|
|
$
0.39
|
|
$
9.58
|
|
$
0.05
|
|
|
Weighted-average shares
outstanding-basic
|
|
121,268,354
|
|
120,230,133
|
|
120,886,059
|
|
120,211,219
|
|
|
Weighted-average shares
outstanding-diluted
|
|
125,658,046
|
|
121,916,175
|
|
124,411,545
|
|
121,687,236
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
fully-converted net income and adjusted fully-converted net income
per fully exchanged, fully diluted shares outstanding (Note
1):
|
|
|
|
|
|
|
|
|
|
|
Adjusted
fully-converted net income
|
|
$
1,212.7
|
|
$
48.2
|
|
$
1,191.6
|
|
$
6.6
|
|
|
Adjusted
fully-converted net income per fully exchanged, fully diluted
share
|
|
$
9.65
|
|
$
0.39
|
|
$
9.58
|
|
$
0.05
|
|
|
Adjusted
fully-converted shares outstanding - diluted (Note 6)
|
|
125,658,046
|
|
121,916,175
|
|
124,411,545
|
|
121,687,236
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See Footnotes to
Earnings Release Tables
|
PBF ENERGY INC. AND
SUBSIDIARIES
|
RECONCILIATION OF
AMOUNTS REPORTED UNDER U.S. GAAP
|
(Unaudited, in
millions, except share and per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RECONCILIATION OF
NET INCOME TO ADJUSTED
FULLY-CONVERTED NET INCOME AND ADJUSTED
FULLY-CONVERTED NET INCOME EXCLUDING
SPECIAL ITEMS (Note 1)
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
June
30,
|
|
June
30,
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
Net income
attributable to PBF Energy Inc. stockholders
|
|
$
1,203.7
|
|
$
47.9
|
|
$
1,182.6
|
|
$
6.6
|
|
Less: Income allocated
to participating securities
|
|
—
|
|
—
|
|
—
|
|
—
|
Income available to
PBF Energy Inc. stockholders - basic
|
|
1,203.7
|
|
47.9
|
|
1,182.6
|
|
6.6
|
|
Add: Net income
attributable to noncontrolling interest (Note 2)
|
|
12.2
|
|
0.4
|
|
12.2
|
|
—
|
|
Less: Income tax
expense (Note 3)
|
|
(3.2)
|
|
(0.1)
|
|
(3.2)
|
|
—
|
Adjusted
fully-converted net income
|
|
$
1,212.7
|
|
$
48.2
|
|
$
1,191.6
|
|
$
6.6
|
Special items (Note
4):
|
|
|
|
|
|
|
|
|
|
Add: Non-cash LCM
inventory adjustment
|
|
—
|
|
(264.0)
|
|
—
|
|
(669.6)
|
|
Add: Change in fair
value of contingent consideration
|
|
77.6
|
|
(4.0)
|
|
127.9
|
|
26.1
|
|
Add: Gain on
extinguishment of debt
|
|
(3.8)
|
|
—
|
|
(3.8)
|
|
—
|
|
Add: Change in Tax
Receivable Agreement liability
|
|
267.2
|
|
—
|
|
286.5
|
|
—
|
|
Add: Net tax benefit on
remeasurement of deferred tax assets
|
|
(136.2)
|
|
(4.1)
|
|
(123.4)
|
|
(2.4)
|
|
Less: Recomputed income
tax on special items (Note 3)
|
|
(88.3)
|
|
71.3
|
|
(106.3)
|
|
171.2
|
Adjusted
fully-converted net income (loss) excluding special
items
|
|
$
1,329.2
|
|
$
(152.6)
|
|
$
1,372.5
|
|
$
(468.1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average
shares outstanding of PBF Energy Inc.
|
|
121,268,354
|
|
120,230,133
|
|
120,886,059
|
|
120,211,219
|
Conversion of PBF LLC
Series A Units (Note 5)
|
|
923,334
|
|
994,138
|
|
925,649
|
|
986,834
|
Common stock
equivalents (Note 6)
|
|
3,466,358
|
|
691,904
|
|
2,599,837
|
|
489,183
|
Fully-converted
shares outstanding - diluted
|
|
125,658,046
|
|
121,916,175
|
|
124,411,545
|
|
121,687,236
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
fully-converted net income per fully exchanged, fully diluted
shares outstanding (Note 6)
|
|
$
9.65
|
|
$
0.39
|
|
$
9.58
|
|
$
0.05
|
|
Adjusted
fully-converted net income (loss) excluding special items per fully
exchanged, fully diluted shares outstanding (Note 4,
6)
|
|
$
10.58
|
|
$
(1.26)
|
|
$
11.03
|
|
$
(3.87)
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
RECONCILIATION OF
INCOME FROM OPERATIONS
TO INCOME FROM OPERATIONS EXCLUDING
SPECIAL ITEMS
|
|
June
30,
|
|
June
30,
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
Income from
operations
|
|
$
1,706.6
|
|
$
147.5
|
|
$
1,797.6
|
|
$
205.2
|
Special Items (Note
4):
|
|
|
|
|
|
|
|
|
|
Add: Non-cash LCM
inventory adjustment
|
|
—
|
|
(264.0)
|
|
—
|
|
(669.6)
|
|
Add: Change in fair
value of contingent consideration
|
|
77.6
|
|
(4.0)
|
|
127.9
|
|
26.1
|
Income (loss) from
operations excluding special items
|
|
$
1,784.2
|
|
$
(120.5)
|
|
$
1,925.5
|
|
$
(438.3)
|
|
See Footnotes to
Earnings Release Tables
|
PBF ENERGY INC. AND
SUBSIDIARIES
|
RECONCILIATION OF
AMOUNTS REPORTED UNDER U.S. GAAP
|
EBITDA
RECONCILIATIONS (Note 7)
|
(Unaudited, in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
|
June
30,
|
|
June
30,
|
RECONCILIATION OF
NET INCOME TO EBITDA AND
EBITDA EXCLUDING SPECIAL ITEMS
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income
|
|
$ 1,235.8
|
|
$
69.9
|
|
$ 1,232.5
|
|
$
47.7
|
Add: Depreciation and
amortization expense
|
|
122.0
|
|
114.9
|
|
242.2
|
|
232.4
|
Add: Interest expense,
net
|
|
85.5
|
|
80.8
|
|
163.9
|
|
161.1
|
Add: Income tax
expense (benefit)
|
|
131.3
|
|
4.5
|
|
125.2
|
|
(3.9)
|
EBITDA
|
|
|
$ 1,574.6
|
|
$
270.1
|
|
$ 1,763.8
|
|
$
437.3
|
Special Items (Note
4):
|
|
|
|
|
|
|
|
|
Add: Non-cash LCM
inventory adjustment
|
|
—
|
|
(264.0)
|
|
—
|
|
(669.6)
|
Add: Change in fair
value of contingent consideration
|
|
77.6
|
|
(4.0)
|
|
127.9
|
|
26.1
|
Add: Gain on
extinguishment of debt
|
|
(3.8)
|
|
—
|
|
(3.8)
|
|
—
|
Add: Change in Tax
Receivable Agreement liability
|
|
267.2
|
|
—
|
|
286.5
|
|
—
|
EBITDA excluding
special items
|
|
$ 1,915.6
|
|
$
2.1
|
|
$ 2,174.4
|
|
$ (206.2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
|
|
|
|
|
|
|
June
30,
|
|
June
30,
|
RECONCILIATION OF
EBITDA TO ADJUSTED EBITDA
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
|
|
|
|
|
|
|
|
|
EBITDA
|
|
$ 1,574.6
|
|
$
270.1
|
|
$ 1,763.8
|
|
$
437.3
|
Add: Stock-based
compensation
|
|
10.3
|
|
10.4
|
|
18.0
|
|
17.8
|
Add: Change in fair
value of catalyst obligations
|
|
(7.2)
|
|
(5.8)
|
|
(2.3)
|
|
4.2
|
Add: Non-cash LCM
inventory adjustment (Note 4)
|
|
—
|
|
(264.0)
|
|
—
|
|
(669.6)
|
Add: Change in fair
value of contingent consideration (Note 4)
|
|
77.6
|
|
(4.0)
|
|
127.9
|
|
26.1
|
Add: Gain on
extinguishment of debt (Note 4)
|
|
(3.8)
|
|
—
|
|
(3.8)
|
|
—
|
Add: Change in Tax
Receivable Agreement liability (Note 4)
|
|
267.2
|
|
—
|
|
286.5
|
|
—
|
Adjusted
EBITDA
|
|
|
$ 1,918.7
|
|
$
6.7
|
|
$ 2,190.1
|
|
$ (184.2)
|
|
|
See Footnotes to
Earnings Release Tables
|
PBF ENERGY INC. AND
SUBSIDIARIES
|
EARNINGS RELEASE
TABLES
|
CONDENSED
CONSOLIDATED BALANCE SHEET DATA
|
(Unaudited, in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June
30,
|
|
December
31,
|
|
|
|
|
|
2022
|
|
2021
|
Balance Sheet
Data:
|
|
|
|
|
|
Cash and cash
equivalents
|
$
2,174.3
|
|
$
1,341.5
|
|
Inventories
|
2,976.3
|
|
2,505.1
|
|
Total
assets
|
13,975.7
|
|
11,641.4
|
|
Total debt
|
3,269.3
|
|
4,295.8
|
|
Total
equity
|
3,786.5
|
|
2,532.8
|
|
Total equity excluding
special items (Note 4, 13)
|
$
3,505.9
|
|
$
2,071.3
|
|
|
|
|
|
|
|
|
|
Total debt to
capitalization ratio (Note 13)
|
46 %
|
|
63 %
|
|
Total debt to
capitalization ratio, excluding special items (Note 13)
|
48 %
|
|
67 %
|
|
Net debt to
capitalization ratio (Note 13)
|
22 %
|
|
54 %
|
|
Net debt to
capitalization ratio, excluding special items (Note 13)
|
24 %
|
|
59 %
|
|
|
|
|
|
SUMMARIZED STATEMENT
OF CASH FLOW DATA
|
(Unaudited, in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended
June 30,
|
|
|
|
|
|
2022
|
|
2021
|
Cash flows provided by
operating activities
|
$
2,269.0
|
|
$
64.7
|
Cash flows used in
investing activities
|
(436.9)
|
|
(139.6)
|
Cash flows used in
financing activities
|
(999.3)
|
|
(54.9)
|
Net change in cash and
cash equivalents
|
832.8
|
|
(129.8)
|
Cash and cash
equivalents, beginning of period
|
1,341.5
|
|
1,609.5
|
Cash and cash
equivalents, end of period
|
$
2,174.3
|
|
$
1,479.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See Footnotes to
Earnings Release Tables
|
PBF ENERGY INC. AND
SUBSIDIARIES
|
EARNINGS RELEASE
TABLES
|
CONSOLIDATING
FINANCIAL INFORMATION (Note 8)
|
(Unaudited, in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
June 30, 2022
|
|
Refining
|
|
Logistics
|
|
Corporate
|
|
Eliminations
|
|
Consolidated
Total
|
Revenues
|
$
14,064.0
|
|
$
93.4
|
|
$
—
|
|
$
(79.7)
|
|
$ 14,077.7
|
Depreciation and
amortization expense
|
111.0
|
|
9.1
|
|
1.9
|
|
—
|
|
122.0
|
Income (loss) from
operations
|
1,883.4
|
|
49.3
|
|
(226.1)
|
|
—
|
|
1,706.6
|
Interest expense,
net
|
5.5
|
|
10.2
|
|
69.8
|
|
—
|
|
85.5
|
Capital
expenditures
|
207.4
|
|
1.7
|
|
2.3
|
|
—
|
|
211.4
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
June 30, 2021
|
|
Refining
|
|
Logistics
|
|
Corporate
|
|
Eliminations
|
|
Consolidated
Total
|
Revenues
|
$ 6,883.2
|
|
$
89.8
|
|
$
—
|
|
$
(75.1)
|
|
$
6,897.9
|
Depreciation and
amortization expense
|
102.3
|
|
9.3
|
|
3.3
|
|
—
|
|
114.9
|
Income (loss) from
operations
|
146.8
|
|
47.8
|
|
(47.1)
|
|
—
|
|
147.5
|
Interest expense,
net
|
1.7
|
|
10.7
|
|
68.4
|
|
—
|
|
80.8
|
Capital
expenditures
|
75.2
|
|
2.2
|
|
1.7
|
|
—
|
|
79.1
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended
June 30, 2022
|
|
Refining
|
|
Logistics
|
|
Corporate
|
|
Eliminations
|
|
Consolidated
Total
|
Revenues
|
$
23,192.2
|
|
$
182.8
|
|
$
—
|
|
$
(155.6)
|
|
$ 23,219.4
|
Depreciation and
amortization expense
|
219.8
|
|
18.6
|
|
3.8
|
|
—
|
|
242.2
|
Income (loss) from
operations
|
2,029.5
|
|
95.7
|
|
(327.6)
|
|
—
|
|
1,797.6
|
Interest expense,
net
|
8.6
|
|
20.3
|
|
135.0
|
|
—
|
|
163.9
|
Capital
expenditures
|
430.5
|
|
3.1
|
|
3.3
|
|
—
|
|
436.9
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended
June 30, 2021
|
|
Refining
|
|
Logistics
|
|
Corporate
|
|
Eliminations
|
|
Consolidated
Total
|
Revenues
|
$
11,796.4
|
|
$
177.3
|
|
$
—
|
|
$
(151.0)
|
|
$ 11,822.7
|
Depreciation and
amortization expense
|
207.0
|
|
18.7
|
|
6.7
|
|
—
|
|
232.4
|
Income (loss) from
operations
|
232.7
|
|
95.7
|
|
(123.2)
|
|
—
|
|
205.2
|
Interest expense,
net
|
3.5
|
|
21.4
|
|
136.2
|
|
—
|
|
161.1
|
Capital
expenditures
|
133.3
|
|
3.5
|
|
2.8
|
|
—
|
|
139.6
|
|
|
|
Balance at June 30,
2022
|
|
Refining
|
|
Logistics
|
|
Corporate
|
|
Eliminations
|
|
Consolidated
Total
|
Total
Assets
|
$
13,069.3
|
|
$
867.0
|
|
$
86.7
|
|
$
(47.3)
|
|
$ 13,975.7
|
|
|
|
Balance at December
31, 2021
|
|
Refining
|
|
Logistics
|
|
Corporate
|
|
Eliminations
|
|
Consolidated
Total
|
Total
Assets
|
$
10,753.3
|
|
$
901.3
|
|
$
48.5
|
|
$
(61.7)
|
|
$ 11,641.4
|
|
|
|
|
|
|
|
|
|
|
See Footnotes to
Earnings Release Tables
|
PBF ENERGY INC. AND
SUBSIDIARIES
|
EARNINGS RELEASE
TABLES
|
MARKET INDICATORS
AND KEY OPERATING INFORMATION
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
|
|
|
|
|
June
30,
|
|
June
30,
|
Market Indicators
(dollars per barrel) (Note 9)
|
2022
|
|
2021
|
|
2022
|
|
2021
|
Dated Brent crude
oil
|
$
113.93
|
|
$ 68.87
|
|
$
107.84
|
|
$ 65.08
|
West Texas Intermediate
(WTI) crude oil
|
$
108.77
|
|
$ 66.19
|
|
$
101.99
|
|
$ 62.22
|
Light Louisiana Sweet
(LLS) crude oil
|
$
110.33
|
|
$ 68.05
|
|
$
103.91
|
|
$ 64.22
|
Alaska North Slope
(ANS) crude oil
|
$
112.17
|
|
$ 68.58
|
|
$
104.15
|
|
$ 64.89
|
Crack
Spreads:
|
|
|
|
|
|
|
|
|
Dated Brent (NYH)
2-1-1
|
$ 55.26
|
|
$ 17.40
|
|
$ 38.47
|
|
$ 14.77
|
|
WTI (Chicago)
4-3-1
|
$ 44.53
|
|
$ 18.84
|
|
$ 31.24
|
|
$ 15.26
|
|
LLS (Gulf Coast)
2-1-1
|
$ 50.39
|
|
$ 15.87
|
|
$ 37.27
|
|
$ 13.99
|
|
ANS (West Coast-LA)
4-3-1
|
$ 53.56
|
|
$ 21.28
|
|
$ 43.20
|
|
$ 18.56
|
|
ANS (West Coast-SF)
3-2-1
|
$ 56.14
|
|
$ 21.21
|
|
$ 42.76
|
|
$ 17.13
|
Crude Oil
Differentials:
|
|
|
|
|
|
|
|
|
Dated Brent (foreign)
less WTI
|
$ 5.16
|
|
$ 2.68
|
|
$ 5.85
|
|
$ 2.86
|
|
Dated Brent less Maya
(heavy, sour)
|
$ 9.99
|
|
$ 4.72
|
|
$ 11.11
|
|
$ 5.25
|
|
Dated Brent less WTS
(sour)
|
$ 5.64
|
|
$ 2.41
|
|
$ 6.19
|
|
$ 2.34
|
|
Dated Brent less ASCI
(sour)
|
$ 8.75
|
|
$ 3.13
|
|
$ 8.69
|
|
$ 2.95
|
|
WTI less WCS (heavy,
sour)
|
$ 18.52
|
|
$ 13.09
|
|
$ 16.96
|
|
$ 12.61
|
|
WTI less Bakken (light,
sweet)
|
$ (3.97)
|
|
$ 0.23
|
|
$ (3.73)
|
|
$ 0.35
|
|
WTI less Syncrude
(light, sweet)
|
$ (4.38)
|
|
$ 1.24
|
|
$ (2.03)
|
|
$ 1.17
|
|
WTI less LLS (light,
sweet)
|
$ (1.56)
|
|
$ (1.86)
|
|
$ (1.92)
|
|
$ (2.00)
|
|
WTI less ANS (light,
sweet)
|
$ (3.40)
|
|
$ (2.39)
|
|
$ (2.16)
|
|
$ (2.67)
|
Natural gas (dollars
per MMBTU)
|
$ 7.50
|
|
$ 2.98
|
|
$ 6.04
|
|
$ 2.85
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Key Operating
Information
|
|
|
|
|
|
|
|
Production (barrels per
day ("bpd") in thousands)
|
958.8
|
|
894.5
|
|
901.6
|
|
824.6
|
Crude oil and
feedstocks throughput (bpd in thousands)
|
942.2
|
|
874.2
|
|
887.7
|
|
810.4
|
Total crude oil and
feedstocks throughput (millions of barrels)
|
85.8
|
|
79.6
|
|
160.7
|
|
146.7
|
Consolidated gross
margin per barrel of throughput
|
$ 22.61
|
|
$ 2.53
|
|
$ 13.30
|
|
$ 2.31
|
Gross refining margin,
excluding special items, per barrel of throughput (Note 4, Note
10)
|
$ 30.41
|
|
$ 5.62
|
|
$ 21.54
|
|
$ 4.72
|
Refinery operating
expense, per barrel of throughput (Note 11)
|
$ 7.16
|
|
$ 5.81
|
|
$ 7.53
|
|
$ 6.29
|
Crude and feedstocks
(% of total throughput) (Note 12)
|
|
|
|
|
|
|
|
|
Heavy
|
31 %
|
|
36 %
|
|
33 %
|
|
36 %
|
|
Medium
|
34 %
|
|
25 %
|
|
33 %
|
|
28 %
|
|
Light
|
20 %
|
|
23 %
|
|
19 %
|
|
21 %
|
|
Other feedstocks and
blends
|
15 %
|
|
16 %
|
|
15 %
|
|
15 %
|
|
|
Total
throughput
|
100 %
|
|
100 %
|
|
100 %
|
|
100 %
|
Yield (% of total
throughput)
|
|
|
|
|
|
|
|
|
Gasoline and gasoline
blendstocks
|
47 %
|
|
54 %
|
|
48 %
|
|
54 %
|
|
Distillates and
distillate blendstocks
|
36 %
|
|
29 %
|
|
35 %
|
|
30 %
|
|
Lubes
|
1 %
|
|
1 %
|
|
1 %
|
|
1 %
|
|
Chemicals
|
1 %
|
|
2 %
|
|
2 %
|
|
2 %
|
|
Other
|
17 %
|
|
16 %
|
|
16 %
|
|
15 %
|
|
|
Total yield
|
102 %
|
|
102 %
|
|
102 %
|
|
102 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See Footnotes to
Earnings Release Tables
|
PBF ENERGY INC. AND
SUBSIDIARIES
|
EARNINGS RELEASE
TABLES
|
SUPPLEMENTAL
OPERATING INFORMATION
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
|
|
|
|
|
June
30,
|
|
June
30,
|
|
|
|
|
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
Supplemental
Operating Information - East Coast Refining
System (Delaware City and Paulsboro)
|
|
|
|
|
|
|
|
Production (bpd in
thousands)
|
291.0
|
|
251.1
|
|
277.9
|
|
245.9
|
Crude oil and
feedstocks throughput (bpd in thousands)
|
292.1
|
|
250.0
|
|
277.7
|
|
246.4
|
Total crude oil and
feedstocks throughput (millions of barrels)
|
26.6
|
|
22.8
|
|
50.3
|
|
44.7
|
Gross margin per barrel
of throughput
|
$ 23.08
|
|
$ 9.80
|
|
$ 13.11
|
|
$ 4.65
|
Gross refining margin,
excluding special items, per barrel of throughput (Note 4, Note
10)
|
$ 30.55
|
|
$ 4.19
|
|
$ 21.36
|
|
$ 3.35
|
Refinery operating
expense, per barrel of throughput (Note 11)
|
$ 6.13
|
|
$ 5.09
|
|
$ 6.70
|
|
$ 5.49
|
Crude and feedstocks (%
of total throughput) (Note 12):
|
|
|
|
|
|
|
|
|
Heavy
|
26 %
|
|
26 %
|
|
28 %
|
|
26 %
|
|
Medium
|
46 %
|
|
32 %
|
|
39 %
|
|
36 %
|
|
Light
|
10 %
|
|
22 %
|
|
11 %
|
|
16 %
|
|
Other feedstocks and
blends
|
18 %
|
|
20 %
|
|
22 %
|
|
22 %
|
|
|
Total
throughput
|
100 %
|
|
100 %
|
|
100 %
|
|
100 %
|
Yield (% of total
throughput):
|
|
|
|
|
|
|
|
|
Gasoline and gasoline
blendstocks
|
38 %
|
|
44 %
|
|
40 %
|
|
44 %
|
|
Distillates and
distillate blendstocks
|
40 %
|
|
33 %
|
|
38 %
|
|
33 %
|
|
Lubes
|
3 %
|
|
2 %
|
|
2 %
|
|
2 %
|
|
Chemicals
|
1 %
|
|
2 %
|
|
1 %
|
|
2 %
|
|
Other
|
18 %
|
|
19 %
|
|
19 %
|
|
19 %
|
|
|
Total yield
|
100 %
|
|
100 %
|
|
100 %
|
|
100 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental
Operating Information - Mid-Continent (Toledo)
|
|
|
|
|
|
|
|
Production (bpd in
thousands)
|
164.9
|
|
153.4
|
|
152.0
|
|
136.6
|
Crude oil and
feedstocks throughput (bpd in thousands)
|
161.7
|
|
150.4
|
|
149.3
|
|
133.9
|
Total crude oil and
feedstocks throughput (millions of barrels)
|
14.7
|
|
13.7
|
|
27.0
|
|
24.2
|
Gross margin per barrel
of throughput
|
$ 23.14
|
|
$ 14.21
|
|
$ 12.64
|
|
$ 11.45
|
Gross refining margin,
excluding special items, per barrel of throughput (Note 4, Note
10)
|
$ 30.24
|
|
$ 7.26
|
|
$ 20.35
|
|
$ 6.35
|
Refinery operating
expense, per barrel of throughput (Note 11)
|
$ 5.63
|
|
$ 4.66
|
|
$ 6.10
|
|
$ 5.16
|
Crude and feedstocks (%
of total throughput) (Note 12):
|
|
|
|
|
|
|
|
|
Medium
|
34 %
|
|
32 %
|
|
37 %
|
|
37 %
|
|
Light
|
65 %
|
|
66 %
|
|
60 %
|
|
61 %
|
|
Other feedstocks and
blends
|
1 %
|
|
2 %
|
|
3 %
|
|
2 %
|
|
|
Total
throughput
|
100 %
|
|
100 %
|
|
100 %
|
|
100 %
|
Yield (% of total
throughput):
|
|
|
|
|
|
|
|
|
Gasoline and gasoline
blendstocks
|
49 %
|
|
55 %
|
|
51 %
|
|
57 %
|
|
Distillates and
distillate blendstocks
|
36 %
|
|
31 %
|
|
36 %
|
|
31 %
|
|
Chemicals
|
5 %
|
|
5 %
|
|
5 %
|
|
5 %
|
|
Other
|
12 %
|
|
11 %
|
|
10 %
|
|
9 %
|
|
|
Total yield
|
102 %
|
|
102 %
|
|
102 %
|
|
102 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See Footnotes to
Earnings Release Tables
|
PBF ENERGY INC. AND
SUBSIDIARIES
|
EARNINGS RELEASE
TABLES
|
SUPPLEMENTAL
OPERATING INFORMATION
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
|
|
|
|
|
June
30,
|
|
June
30,
|
|
|
|
|
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
Supplemental
Operating Information - Gulf Coast (Chalmette)
|
|
|
|
|
|
|
|
Production (bpd in
thousands)
|
203.5
|
|
178.8
|
|
184.9
|
|
169.1
|
Crude oil and
feedstocks throughput (bpd in thousands)
|
199.5
|
|
174.6
|
|
181.4
|
|
164.4
|
Total crude oil and
feedstocks throughput (millions of barrels)
|
18.2
|
|
15.9
|
|
32.8
|
|
29.7
|
Gross margin per barrel
of throughput
|
$ 18.33
|
|
$ (4.46)
|
|
$ 12.20
|
|
$ (0.69)
|
Gross refining margin,
excluding special items, per barrel of throughput (Note 4, Note
10)
|
$ 24.48
|
|
$ 4.82
|
|
$ 18.88
|
|
$ 5.11
|
Refinery operating
expense, per barrel of throughput (Note 11)
|
$ 5.21
|
|
$ 4.73
|
|
$ 5.84
|
|
$ 5.03
|
Crude and feedstocks (%
of total throughput) (Note 12):
|
|
|
|
|
|
|
|
|
Heavy
|
18 %
|
|
14 %
|
|
17 %
|
|
11 %
|
|
Medium
|
39 %
|
|
37 %
|
|
41 %
|
|
40 %
|
|
Light
|
28 %
|
|
25 %
|
|
29 %
|
|
28 %
|
|
Other feedstocks and
blends
|
15 %
|
|
24 %
|
|
13 %
|
|
21 %
|
|
|
Total
throughput
|
100 %
|
|
100 %
|
|
100 %
|
|
100 %
|
Yield (% of total
throughput):
|
|
|
|
|
|
|
|
|
Gasoline and gasoline
blendstocks
|
43 %
|
|
47 %
|
|
42 %
|
|
47 %
|
|
Distillates and
distillate blendstocks
|
36 %
|
|
33 %
|
|
38 %
|
|
34 %
|
|
Chemicals
|
2 %
|
|
2 %
|
|
1 %
|
|
2 %
|
|
Other
|
21 %
|
|
20 %
|
|
21 %
|
|
20 %
|
|
|
Total yield
|
102 %
|
|
102 %
|
|
102 %
|
|
103 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental
Operating Information - West Coast (Torrance and
Martinez)
|
|
|
|
|
|
|
|
Production (bpd in
thousands)
|
299.4
|
|
311.2
|
|
286.8
|
|
273.0
|
Crude oil and
feedstocks throughput (bpd in thousands)
|
288.9
|
|
299.2
|
|
279.3
|
|
265.7
|
Total crude oil and
feedstocks throughput (millions of barrels)
|
26.3
|
|
27.2
|
|
50.6
|
|
48.1
|
Gross margin per barrel
of throughput
|
$ 22.71
|
|
$ (7.34)
|
|
$ 12.43
|
|
$ (4.84)
|
Gross refining margin,
excluding special items, per barrel of throughput (Note 4, Note
10)
|
$ 34.49
|
|
$ 6.47
|
|
$ 24.05
|
|
$ 4.92
|
Refinery operating
expense, per barrel of throughput (Note 11)
|
$ 10.39
|
|
$ 7.62
|
|
$ 10.21
|
|
$ 8.38
|
Crude and feedstocks (%
of total throughput) (Note 12):
|
|
|
|
|
|
|
|
|
Heavy
|
64 %
|
|
74 %
|
|
65 %
|
|
78 %
|
|
Medium
|
19 %
|
|
10 %
|
|
20 %
|
|
8 %
|
|
Other feedstocks and
blends
|
17 %
|
|
16 %
|
|
15 %
|
|
14 %
|
|
|
Total
throughput
|
100 %
|
|
100 %
|
|
100 %
|
|
100 %
|
Yield (% of total
throughput):
|
|
|
|
|
|
|
|
|
Gasoline and gasoline
blendstocks
|
56 %
|
|
66 %
|
|
57 %
|
|
65 %
|
|
Distillates and
distillate blendstocks
|
32 %
|
|
24 %
|
|
30 %
|
|
24 %
|
|
Other
|
16 %
|
|
14 %
|
|
16 %
|
|
14 %
|
|
|
Total yield
|
104 %
|
|
104 %
|
|
103 %
|
|
103 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See Footnotes to
Earnings Release Tables
|
PBF ENERGY INC. AND
SUBSIDIARIES
|
RECONCILIATION OF
AMOUNTS REPORTED UNDER U.S. GAAP
|
GROSS REFINING
MARGIN / GROSS REFINING MARGIN PER BARREL OF THROUGHPUT (Note
10)
|
(Unaudited, in
millions, except per barrel amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
|
|
|
|
|
|
June 30,
2022
|
|
June 30,
2021
|
RECONCILIATION OF
CONSOLIDATED GROSS MARGIN
TO GROSS REFINING MARGIN AND GROSS REFINING
MARGIN EXCLUDING SPECIAL ITEMS
|
$
|
|
per barrel
of
throughput
|
|
$
|
|
per barrel
of
throughput
|
Calculation of
consolidated gross margin:
|
|
|
|
|
|
|
|
Revenues
|
$
14,077.7
|
|
$
164.15
|
|
$ 6,897.9
|
|
$
86.70
|
Less: Cost of
sales
|
12,138.2
|
|
141.54
|
|
6,696.1
|
|
84.17
|
Consolidated gross
margin
|
$ 1,939.5
|
|
$
22.61
|
|
$
201.8
|
|
$
2.53
|
Reconciliation of
consolidated gross margin to gross refining margin:
|
|
|
|
|
|
|
|
Consolidated gross
margin
|
$ 1,939.5
|
|
$
22.61
|
|
$
201.8
|
|
$
2.53
|
|
Add: PBFX operating
expense
|
28.3
|
|
0.33
|
|
25.4
|
|
0.32
|
|
Add: PBFX depreciation
expense
|
9.1
|
|
0.11
|
|
9.3
|
|
0.12
|
|
Less: Revenues of
PBFX
|
(93.4)
|
|
(1.09)
|
|
(89.8)
|
|
(1.13)
|
|
Add: Refinery operating
expense
|
613.8
|
|
7.16
|
|
462.3
|
|
5.81
|
|
Add: Refinery
depreciation expense
|
110.9
|
|
1.29
|
|
102.3
|
|
1.29
|
Gross refining
margin
|
$ 2,608.2
|
|
$
30.41
|
|
$
711.3
|
|
$
8.94
|
Special
Items (Note 4):
|
|
|
|
|
|
|
|
|
Add: Non-cash LCM
inventory adjustment
|
—
|
|
—
|
|
(264.0)
|
|
(3.32)
|
Gross refining
margin excluding special items
|
$ 2,608.2
|
|
$
30.41
|
|
$
447.3
|
|
$
5.62
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months
Ended
|
|
Six Months
Ended
|
|
|
|
|
|
|
|
June 30,
2022
|
|
June 30,
2021
|
RECONCILIATION OF
CONSOLIDATED GROSS MARGIN
TO GROSS REFINING MARGIN AND GROSS REFINING
MARGIN EXCLUDING SPECIAL ITEMS
|
$
|
|
per barrel
of
throughput
|
|
$
|
|
per barrel
of
throughput
|
Calculation of
consolidated gross margin:
|
|
|
|
|
|
|
|
Revenues
|
$
23,219.4
|
|
$
144.52
|
|
$
11,822.7
|
|
$
80.61
|
Less: Cost of
sales
|
21,083.1
|
|
131.22
|
|
11,482.5
|
|
78.30
|
Consolidated gross
margin
|
$ 2,136.3
|
|
$
13.30
|
|
$
340.2
|
|
$
2.31
|
Reconciliation of
consolidated gross margin to gross refining margin:
|
|
|
|
|
|
|
|
Consolidated gross
margin
|
$ 2,136.3
|
|
$
13.30
|
|
$
340.2
|
|
$
2.31
|
|
Add: PBFX operating
expense
|
57.6
|
|
0.36
|
|
50.4
|
|
0.35
|
|
Add: PBFX depreciation
expense
|
18.6
|
|
0.12
|
|
18.7
|
|
0.14
|
|
Less: Revenues of
PBFX
|
(182.8)
|
|
(1.14)
|
|
(177.3)
|
|
(1.21)
|
|
Add: Refinery operating
expense
|
1,209.4
|
|
7.53
|
|
922.5
|
|
6.29
|
|
Add: Refinery
depreciation expense
|
219.8
|
|
1.37
|
|
207.0
|
|
1.41
|
Gross refining
margin
|
$ 3,458.9
|
|
$
21.54
|
|
$ 1,361.5
|
|
$
9.29
|
Special
Items (Note 4):
|
|
|
|
|
|
|
|
|
Add: Non-cash LCM
inventory adjustment
|
—
|
|
—
|
|
(669.6)
|
|
(4.57)
|
Gross refining
margin excluding special items
|
$ 3,458.9
|
|
$
21.54
|
|
$
691.9
|
|
$
4.72
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See Footnotes to
Earnings Release Tables
|
PBF ENERGY INC. AND
SUBSIDIARIES
|
EARNINGS RELEASE
TABLES
|
FOOTNOTES TO
EARNINGS RELEASE TABLES
|
|
(1) Adjusted
fully-converted information is presented in this table as
management believes that these Non-GAAP measures, when presented in
conjunction with comparable GAAP measures, are useful to investors
to compare our results across the periods presented and facilitates
an understanding of our operating results. We also use these
measures to evaluate our operating performance. These measures
should not be considered a substitute for, or superior to, measures
of financial performance prepared in accordance with GAAP. The
differences between adjusted fully-converted and GAAP results are
explained in footnotes 2 through 6.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2) Represents the
elimination of the noncontrolling interest associated with the
ownership by the members of PBF Energy Company LLC ("PBF LLC")
other than PBF Energy Inc., as if such members had fully exchanged
their PBF LLC Series A Units for shares of PBF Energy's Class A
common stock.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(3) Represents an
adjustment to reflect PBF Energy's estimated annualized statutory
corporate tax rate of approximately 25.9% and 26.6% for the 2022
and 2021 periods, respectively, applied to net income (loss)
attributable to noncontrolling interest for all periods presented.
The adjustment assumes the full exchange of existing PBF LLC Series
A Units as described in footnote 2.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(4) The Non-GAAP
measures presented include adjusted fully-converted net income
excluding special items, income from operations excluding special
items, EBITDA excluding special items and gross refining margin
excluding special items. Special items for the three and six months
ended June 30, 2022 and 2021 relate to LCM inventory
adjustments, change in fair value of contingent consideration, gain
on extinguishment of debt, changes in the Tax Receivable Agreement
liability, and net tax benefit on the remeasurement of deferred tax
assets, all as discussed further below. Additionally, the
cumulative effects of all current and prior period special items on
equity are shown in footnote 13.
Although we believe
that Non-GAAP financial measures excluding the impact of special
items provide useful supplemental information to investors
regarding the results and performance of our business and allow for
useful period-over-period comparisons, such Non-GAAP measures
should only be considered as a supplement to, and not as a
substitute for, or superior to, the financial measures prepared in
accordance with GAAP.
Special
Items:
LCM inventory
adjustment - LCM is a GAAP requirement related to inventory
valuation that mandates inventory to be stated at the lower of cost
or market. Our inventories are stated at the lower of cost or
market. Cost is determined using the last-in, first-out ("LIFO")
inventory valuation methodology, in which the most recently
incurred costs are charged to cost of sales and inventories are
valued at base layer acquisition costs. Market is determined based
on an assessment of the current estimated replacement cost and net
realizable selling price of the inventory. In periods where the
market price of our inventory declines substantially, cost values
of inventory may exceed market values. In such instances, we record
an adjustment to write down the value of inventory to market value
in accordance with GAAP. In subsequent periods, the value of
inventory is reassessed and an LCM inventory adjustment is recorded
to reflect the net change in the LCM inventory reserve between the
prior period and the current period.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The following table
includes the LCM inventory reserve as of each date presented (in
millions):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2022
|
|
2021
|
January 1,
|
|
|
|
$
—
|
|
$
669.6
|
March 31,
|
|
|
|
—
|
|
264.0
|
June 30,
|
|
|
|
—
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The following table
includes the corresponding impact of changes in the LCM inventory
reserve on income from operations and net income for the periods
presented (in millions):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
|
|
|
|
|
|
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
Net LCM inventory
adjustment benefit in income from operations
|
$
—
|
|
$ 264.0
|
|
$
—
|
|
$
669.6
|
Net LCM inventory
adjustment benefit in net income
|
—
|
|
193.8
|
|
—
|
|
491.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change in Fair Value
of Contingent Consideration - During the three months ended
June 30, 2022, we recorded a change in fair value of the
contingent consideration primarily related to the Martinez
Contingent Consideration which decreased income from operations and
net income by $77.6 million and $57.5 million, respectively. During
the six months ended June 30, 2022, we recorded a change in
fair value of the contingent consideration primarily related to the
Martinez Contingent Consideration, which decreased income from
operations and net income by $127.9 million and $94.8 million,
respectively. During the three months ended June 30, 2021, we
recorded a change in fair value of the contingent consideration
primarily related to the Martinez Contingent Consideration which
increased income from operations and net income by $4.0 million and
$2.9 million, respectively. During the six months ended
June 30, 2021, we recorded a change in fair value of the
contingent consideration primarily related to the Martinez
Contingent consideration which decreased income from operations and
net income by $26.1 million and $19.2 million,
respectively.
|
Gain on
Extinguishment of debt - During the three and six months ended
June 30, 2022, we recorded a pre-tax gain on extinguishment of
debt related to the repurchase of a portion of the 6.00% senior
unsecured notes due 2028 and the 7.25% senior unsecured notes due
2025, which increased income before income taxes and net income by
$3.8 million and $2.8 million, respectively. There was no such gain
during the three and six months ended June 30,
2021.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change in Tax
Receivable Agreement liability - During the three months ended
June 30, 2022, we recorded a change in the Tax Receivable
Agreement liability that decreased income before income taxes and
net income by $267.2 million and $198.0 million, respectively.
During the six months ended June 30, 2022, we recorded a
change in the Tax Receivable Agreement liability that decreased
income before income taxes and net income by $286.5 million and
$212.3 million, respectively. There was no change to the Tax
Receivable Agreement liability during any of the other periods
presented. The changes in the Tax Receivable Agreement liability
reflect charges or benefits attributable to changes in our
obligation under the Tax Receivable Agreement due to factors out of
our control such as changes in tax rates, as well as periodic
adjustments to our liability based, in part, on an updated estimate
of the amounts that we expect to pay, using assumptions consistent
with those used in our concurrent estimate of the deferred tax
asset valuation allowance.
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Net Tax Benefit on
Remeasurement of Deferred Tax Assets - During the three and six
months ended June 30, 2022, we recorded a decrease to our
deferred tax valuation allowance of $205.4 million and of
$197.6 million, respectively, in accordance with ASC 740, of
which $136.2 million and $123.4 million, respectively,
related to a tax benefit associated to the remeasurement of
deferred tax assets and the balance related to our net changes in
the Tax Receivable Agreement liability. During the three and six
months ended June 30, 2021, we recorded a decrease to our
deferred tax valuation allowance related to the remeasurement of
deferred tax assets of $4.1 million and $2.4 million,
respectively, in accordance with ASC 740.
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(5) Represents an
adjustment to weighted-average diluted shares outstanding to assume
the full exchange of existing PBF LLC Series A Units as described
in footnote 2.
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(6) Represents
weighted-average diluted shares outstanding assuming the conversion
of all common stock equivalents, including options and warrants for
PBF LLC Series A Units and performance share units and options for
shares of PBF Energy Class A common stock as calculated under the
treasury stock method (to the extent the impact of such exchange
would not be anti-dilutive) for the three and six months ended
June 30, 2022 and 2021, respectively. Common stock equivalents
exclude the effects of performance share units and options and
warrants to purchase 3,539,238 and 7,934,448 shares of PBF Energy
Class A common stock and PBF LLC Series A units because they are
anti-dilutive for the three and six months ended June 30,
2022, respectively. Common stock equivalents exclude the effects of
performance share units and options and warrants to purchase
11,091,279 shares of PBF Energy Class A common stock and PBF LLC
Series A units because they are anti-dilutive for the three and six
months ended June 30, 2021, respectively. For periods showing
a net loss, all common stock equivalents and unvested restricted
stock are considered anti-dilutive.
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(7) EBITDA (Earnings
before Interest, Income Taxes, Depreciation and Amortization) and
Adjusted EBITDA are supplemental measures of performance that are
not required by, or presented in accordance with GAAP. Adjusted
EBITDA is defined as EBITDA before adjustments for items such as
stock-based compensation expense, the non-cash change in the fair
value of catalyst obligations, the write down of inventory to the
LCM, changes in the liability for Tax Receivable Agreement due to
factors out of our control, such as changes in tax rates, change in
the fair value of contingent consideration and certain other
non-cash items. We use these Non-GAAP financial measures as a
supplement to our GAAP results in order to provide additional
metrics on factors and trends affecting our business. EBITDA and
Adjusted EBITDA are measures of operating performance that are not
defined by GAAP and should not be considered substitutes for net
income as determined in accordance with GAAP. In addition, because
EBITDA and Adjusted EBITDA are not calculated in the same manner by
all companies, they are not necessarily comparable to other
similarly titled measures used by other companies. EBITDA and
Adjusted EBITDA have their limitations as an analytical tool, and
you should not consider them in isolation or as substitutes for
analysis of our results as reported under GAAP.
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(8) We operate in two
reportable segments: Refining and Logistics. Our operations that
are not included in the Refining and Logistics segments are
included in Corporate. As of June 30, 2022, the Refining
segment includes the operations of our oil refineries and related
facilities in Delaware City, Delaware, Paulsboro, New Jersey,
Toledo, Ohio, Chalmette, Louisiana, Torrance, California and
Martinez, California. The Logistics segment includes the operations
of PBF Logistics LP ("PBFX"), a growth-oriented master limited
partnership which owns or leases, operates, develops and acquires
crude oil and refined petroleum products terminals, pipelines,
storage facilities and similar logistics assets. PBFX's assets
primarily consist of rail and truck terminals and unloading racks,
storage facilities and pipelines, a substantial portion of which
were acquired from or contributed by PBF LLC and are located at, or
nearby, our refineries. PBFX provides various rail, truck and
marine terminaling services, pipeline transportation services and
storage services to PBF Holding and/or its subsidiaries and third
party customers through fee-based commercial agreements.
PBFX currently does not
generate significant third party revenue and intersegment
related-party revenues are eliminated in consolidation. From a PBF
Energy perspective, our chief operating decision maker evaluates
the Logistics segment as a whole without regard to any of PBFX's
individual operating segments.
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(9) As reported by
Platts.
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(10)
Gross refining margin and gross refining margin per barrel of
throughput are Non-GAAP measures because they exclude refinery
operating expenses, depreciation and amortization and gross margin
of PBFX. Gross refining margin per barrel is gross refining margin,
divided by total crude and feedstocks throughput. We believe they
are important measures of operating performance and provide useful
information to investors because gross refining margin per barrel
is a helpful metric comparison to the industry refining margin
benchmarks shown in the Market Indicators Tables, as the industry
benchmarks do not include a charge for refinery operating expenses
and depreciation. Other companies in our industry may not calculate
gross refining margin and gross refining margin per barrel in the
same manner. Gross refining margin and gross refining margin per
barrel of throughput have their limitations as an analytical tool,
and you should not consider them in isolation or as substitutes for
analysis of our results as reported under GAAP.
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(11) Represents
refinery operating expenses, including corporate-owned logistics
assets, excluding depreciation and amortization, divided by total
crude oil and feedstocks throughput.
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(12) We define heavy
crude oil as crude oil with American Petroleum Institute (API)
gravity less than 24 degrees. We define medium crude oil as crude
oil with API gravity between 24 and 35 degrees. We define light
crude oil as crude oil with API gravity higher than 35
degrees.
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(13) The total debt to
capitalization ratio is calculated by dividing total debt by the
sum of total debt and total equity. This ratio is a measurement
that management believes is useful to investors in analyzing our
leverage. Net debt and the net debt to capitalization ratio are
Non-GAAP measures. Net debt is calculated by subtracting cash and
cash equivalents from total debt. We believe these measurements are
also useful to investors since we have the ability to and may
decide to use a portion of our cash and cash equivalents to retire
or pay down our debt. Additionally, we have also presented the
total debt to capitalization and net debt to capitalization ratios
excluding the cumulative effects of special items on
equity.
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June
30,
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December
31,
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2022
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2021
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(in
millions)
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Total debt
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$ 3,269.3
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$ 4,295.8
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Total equity
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3,786.5
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2,532.8
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Total
capitalization
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$ 7,055.8
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$ 6,828.6
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Total debt
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$ 3,269.3
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$ 4,295.8
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Total equity excluding
special items
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3,505.9
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2,071.3
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Total capitalization
excluding special items
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$ 6,775.2
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$ 6,367.1
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Total equity
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$ 3,786.5
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$ 2,532.8
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Special Items
(Note 4)
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Add: Non-cash LCM
inventory adjustments
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—
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—
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Add:
Change in fair value of contingent consideration
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66.6
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(61.3)
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Add:
Gain on sale of hydrogen plants
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(471.1)
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(471.1)
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Add: Gain on Torrance
land sales
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(87.8)
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(87.8)
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Add:
Impairment expense
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98.8
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98.8
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Add:
LIFO inventory decrement
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83.0
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83.0
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Add:
Turnaround acceleration costs
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56.2
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56.2
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Add:
Severance and reconfiguration costs
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30.0
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30.0
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Add:
Early railcar return expense
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64.8
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64.8
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Add:
Gain on extinguishment of debt
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(36.0)
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(32.2)
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Add:
Change in Tax Receivable Agreement liability
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(329.1)
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(615.6)
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Less: Recomputed income taxes on special items
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125.5
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231.8
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Add:
Net tax expense on remeasurement of deferred tax assets
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98.3
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221.7
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Add:
Net tax expense on TCJA related special items
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20.2
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20.2
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Net equity
impact related to special items
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(280.6)
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(461.5)
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Total equity excluding
special items
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$ 3,505.9
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$ 2,071.3
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Total debt
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$ 3,269.3
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$ 4,295.8
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Less: Cash and cash equivalents
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2,174.3
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1,341.5
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Net Debt
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$ 1,095.0
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$ 2,954.3
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Total debt to
capitalization ratio
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46 %
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63 %
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Total debt to
capitalization ratio, excluding special items
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48 %
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67 %
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Net debt to
capitalization ratio
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22 %
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54 %
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Net debt to
capitalization ratio, excluding special items
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24 %
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59 %
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SOURCE PBF Energy Inc.