PARSIPPANY, N.J., May 1,
2019 /PRNewswire/ -- PBF Energy Inc. (NYSE: PBF) today reported
first quarter 2019 income from operations of $364.6 million as compared to income from
operations of $95.7 million for the
first quarter of 2018. Excluding special items, first quarter 2019
loss from operations was $141.4
million as compared to income from operations of
$8.0 million for the first quarter of
2018. PBF Energy's financial results reflect the consolidation of
PBF Logistics LP (NYSE: PBFX), a master limited partnership of
which PBF indirectly owns the general partner and approximately
54.1% of the limited partner interests as of quarter-end.
The company reported first quarter 2019 net income of
$241.4 million and net income
attributable to PBF Energy Inc. of $229.2
million or $1.89 per share.
This compares to net income of $41.8
million, and net income attributable to PBF Energy
Inc. of $30.4 million or $0.27 per share for the first quarter 2018.
Special items in the first quarter 2019 results, which increased
net income, by a net, after-tax gain of $374.4 million, or $3.07 per share, consisted of a
lower-of-cost-or-market ("LCM") inventory adjustment. Adjusted
fully-converted net loss for the first quarter 2019, excluding
special items, was $143.0 million, or
$(1.18) per share on a
fully-exchanged, fully-diluted basis, as described below, compared
to an adjusted fully-converted net loss of $33.4 million or $(0.29) per share, for the first quarter
2018.
Tom Nimbley, PBF Energy's
Chairman and CEO, said, "PBF made the strategic decision to advance
the majority of our 2019 maintenance program into the first
quarter of 2019. Consequently, first quarter results reflect
both the challenging market conditions, in terms of narrow crude
differentials and weak product margins, as well as the intentional
shift of maintenance into this period of low refining
margins. Four out of five of our refineries conducted
turnarounds or significant maintenance during the quarter which
reduced our overall throughput and increased expenditures." Mr.
Nimbley continued, "As a result of this shift in maintenance
activity to the first quarter, our refineries are in the favorable
position of being able to operate unimpeded for the remainder of
the year in an improving market with an even stronger outlook."
Drop-down transaction
On April
24, 2019, PBF Logistics LP (NYSE:PBFX) (the "Partnership" or
"PBF Logistics") announced the execution of definitive agreements
for the acquisition of the remaining fifty percent interest in
Torrance Valley Pipeline Company LLC ("TVPC") from an affiliate of
PBF for total consideration of approximately $200 million in cash. PBF currently anticipates
closing of the transaction to occur in the second quarter, subject
to customary closing conditions.
TVPC owns the 189-mile San Joaquin Valley Pipeline system with a
throughput capacity of approximately 110,000 barrels per day. The
system is comprised of the M55, M1 and M70 pipelines which are the
primary crude gathering and transportation lines that supply PBF
Energy's Torrance refinery. The assets also include 11 pipeline
stations with approximately one million barrels of combined storage
capacity and truck unloading capability at two of the stations.
PBF Energy Inc. Declares Dividend
The company
announced today that it will pay a quarterly dividend of
$0.30 per share of Class A common
stock on May 30, 2019, to holders of
record as of May 15, 2019.
Outlook
For the second quarter 2019, we expect East
Coast total throughput to average 320,000 to 340,000 barrels per
day; Mid-Continent total throughput is expected to average 160,000
to 170,000 barrels per day; Gulf Coast total throughput is expected
to average 190,000 to 200,000 barrels per day and West Coast total
throughput is expected to average 160,000 to 170,000 barrels per
day.
For the full-year 2019, we expect East Coast total throughput to
average 330,000 to 350,000 barrels per day; Mid-Continent total
throughput is expected to average 150,000 to 160,000 barrels per
day; Gulf Coast total throughput is expected to average 190,000 to
200,000 barrels per day and West Coast total throughput is expected
to average 160,000 to 170,000 barrels per day.
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, Adjusted
Fully-Converted Net Income excluding special items, Adjusted
Fully-Converted Net Income per fully-exchanged, fully-diluted
share, Income 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 Wednesday,
May 1, 2019, 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 (800) 894-5910 or (785) 424-1052, conference
ID: PBFQ119. The audio replay will be available two hours
after the end of the call through May 15,
2019, by dialing (800) 723-0394 or (402) 220-2649.
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, customer and vendors; risk relating to
the securities markets generally; 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 48.3% of the limited partnership interest
of PBF Logistics LP (NYSE: PBFX).
PBF ENERGY INC.
AND SUBSIDIARIES
|
EARNINGS RELEASE
TABLES
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
(Unaudited, in
millions, except share and per share data)
|
|
|
|
|
|
Three Months
Ended
|
|
|
March
31,
|
|
|
2019
|
|
2018
|
Revenues
|
$
|
5,216.2
|
|
$
|
5,802.8
|
|
|
|
|
|
Cost and
expenses:
|
|
|
|
|
Cost of products and
other
|
4,209.2
|
|
5,132.1
|
|
Operating expenses
(excluding depreciation and amortization expense as reflected
below)
|
479.0
|
|
426.1
|
|
Depreciation and
amortization expense
|
103.0
|
|
83.3
|
|
Cost of
sales
|
4,791.2
|
|
5,641.5
|
|
General and
administrative expenses (excluding depreciation and amortization
expense as reflected below)
|
57.6
|
|
62.8
|
|
Depreciation and
amortization expense
|
2.8
|
|
2.7
|
|
Loss on sale of
assets
|
—
|
|
0.1
|
Total cost and
expenses
|
4,851.6
|
|
5,707.1
|
|
|
|
|
|
Income from
operations
|
364.6
|
|
95.7
|
|
|
|
|
|
Other income
(expense):
|
|
|
|
|
|
Change in fair value
of catalyst leases
|
(3.1)
|
|
—
|
|
Interest expense,
net
|
(39.5)
|
|
(43.2)
|
|
Other non-service
components of net periodic benefit cost
|
(0.1)
|
|
0.3
|
Income before
income taxes
|
321.9
|
|
52.8
|
Income tax
expense
|
80.5
|
|
11.0
|
Net
income
|
241.4
|
|
41.8
|
|
Less: net income
attributable to noncontrolling interests
|
|
12.2
|
|
11.4
|
Net income
attributable to PBF Energy Inc. stockholders
|
$
|
229.2
|
|
$
|
30.4
|
|
|
|
|
|
Net income
available to Class A common stock per share:
|
|
|
|
|
|
Basic
|
$
|
1.91
|
|
$
|
|
|
Diluted
|
$
|
1.89
|
|
$
|
0.27
|
|
Weighted-average
shares outstanding-basic
|
119,880,915
|
|
110,820,379
|
|
Weighted-average
shares outstanding-diluted
|
122,175,744
|
|
115,193,491
|
|
|
|
|
|
Dividends per
common share
|
$
|
|
|
$
|
0.30
|
|
|
|
|
|
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
|
$
|
231.4
|
|
$
|
31.1
|
|
Adjusted
fully-converted net income per fully exchanged, fully diluted
share
|
$
|
1.89
|
|
$
|
0.27
|
|
Adjusted
fully-converted shares outstanding - diluted (Note 6)
|
122,175,744
|
|
115,193,491
|
|
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)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
RECONCILIATION OF
NET INCOME TO ADJUSTED FULLY-CONVERTED NET INCOME AND ADJUSTED
FULLY-CONVERTED NET INCOME (LOSS) EXCLUDING SPECIAL ITEMS
(Note 1)
|
|
March
31,
|
|
2019
|
|
2018
|
Net income
attributable to PBF Energy Inc. stockholders
|
|
$
|
229.2
|
|
$
|
30.4
|
|
Less:
Income allocated to participating
securities
|
|
0.1
|
|
0.2
|
Income available
to PBF Energy Inc. stockholders - basic
|
|
229.1
|
|
30.2
|
|
Add:
Net income attributable to noncontrolling
interest (Note 2)
|
|
3.1
|
|
1.3
|
|
Less:
Income tax expense
(Note 3)
|
|
(0.8)
|
|
(0.4)
|
Adjusted
fully-converted net income
|
|
$
|
231.4
|
|
$
|
31.1
|
|
Special Items (Note
4):
|
|
|
|
|
|
Add:
Non-cash LCM inventory
adjustment
|
|
(506.0)
|
|
(87.7)
|
|
Less:
Recomputed income taxes on special
items
|
|
131.6
|
|
23.2
|
Adjusted
fully-converted net income (loss) excluding special
items
|
|
$
|
(143.0)
|
|
$
|
(33.4)
|
|
|
|
|
|
Weighted-average
shares outstanding of PBF Energy Inc.
|
|
119,880,915
|
|
110,820,379
|
Conversion of PBF LLC
Series A Units (Note 5)
|
|
1,206,325
|
|
3,535,140
|
Common stock
equivalents (Note 6)
|
|
1,088,504
|
|
837,972
|
Fully-converted
shares outstanding - diluted
|
|
122,175,744
|
|
115,193,491
|
|
|
|
|
|
Adjusted
fully-converted net income per fully exchanged, fully diluted
shares outstanding
|
|
$
|
1.89
|
|
$
|
0.27
|
|
Adjusted
fully-converted net loss excluding special items per fully
exchanged, fully diluted shares outstanding (Note 4,
6)
|
|
$
|
(1.18)
|
|
$
|
(0.29)
|
|
|
|
|
|
|
Three Months
Ended
|
RECONCILIATION OF
INCOME FROM OPERATIONS TO INCOME (LOSS) FROM OPERATIONS EXCLUDING
SPECIAL ITEMS
|
|
March
31,
|
|
2019
|
|
2018
|
Income from
operations
|
|
$
|
364.6
|
|
$
|
95.7
|
|
Special Items (Note
4):
|
|
|
|
|
|
Add:
Non-cash LCM inventory
adjustment
|
|
(506.0)
|
|
(87.7)
|
Income (loss) from
operations excluding special items
|
|
$
|
(141.4)
|
|
$
|
8.0
|
|
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
|
|
|
March
31,
|
RECONCILIATION OF
NET INCOME TO EBITDA AND EBITDA EXCLUDING SPECIAL
ITEMS
|
|
2019
|
|
2018
|
Net
income
|
|
$
|
241.4
|
|
$
|
41.8
|
Add:
Depreciation and
amortization expense
|
|
105.8
|
|
86.0
|
Add:
Interest expense, net
|
|
39.5
|
|
43.2
|
Add:
Income tax expense
|
|
80.5
|
|
11.0
|
EBITDA
|
|
|
$
|
467.2
|
|
$
|
182.0
|
Special Items (Note
4):
|
|
|
|
|
Add:
Non-cash LCM inventory
adjustment
|
|
(506.0)
|
|
(87.7)
|
EBITDA excluding
special items
|
|
$
|
(38.8)
|
|
$
|
94.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
|
|
|
|
|
March
31,
|
RECONCILIATION OF
EBITDA TO ADJUSTED EBITDA
|
|
2019
|
|
2018
|
EBITDA
|
|
$
|
467.2
|
|
$
|
182.0
|
Add:
Stock-based
compensation
|
|
8.0
|
|
5.1
|
Add:
Net non-cash change in fair value of
catalyst leases
|
|
3.1
|
|
—
|
Add:
Non-cash LCM inventory adjustment (Note
4)
|
|
(506.0)
|
|
(87.7)
|
Adjusted
EBITDA
|
|
|
$
|
(27.7)
|
|
$
|
99.4
|
|
See Footnotes to
Earnings Release Tables
|
PBF ENERGY INC.
AND SUBSIDIARIES
|
EARNINGS RELEASE
TABLES
|
CONDENSED
CONSOLIDATED BALANCE SHEET DATA
|
(Unaudited, in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March
31,
|
|
December
31,
|
|
|
|
|
|
2019
|
|
2018
|
Balance Sheet
Data:
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
418.3
|
|
|
$
|
597.3
|
|
|
Inventories
|
2,566.5
|
|
|
1,865.8
|
|
|
Total
assets
|
9,126.1
|
|
|
8,005.4
|
|
|
Total debt
|
2,191.0
|
|
|
1,933.7
|
|
|
|
|
|
|
|
Total
equity
|
3,446.8
|
|
|
3,248.5
|
|
|
Total equity
excluding special items (Note 4, 13)
|
$
|
3,375.6
|
|
|
$
|
3,551.7
|
|
|
|
|
|
|
|
|
|
|
Total debt to
capitalization ratio (Note 13)
|
39
|
%
|
|
37
|
%
|
|
Total debt to
capitalization ratio, excluding special items (Note 13)
|
39
|
%
|
|
35
|
%
|
|
Net debt to
capitalization ratio (Note 13)
|
34
|
%
|
|
29
|
%
|
|
Net debt to
capitalization ratio, excluding special items (Note 13)
|
34
|
%
|
|
27
|
%
|
|
|
|
|
|
SUMMARIZED
STATEMENT OF CASH FLOW DATA
|
(Unaudited, in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
March 31,
|
|
|
|
|
|
2019
|
|
2018
|
Cash flows used in
operating activities
|
$
|
(149.9)
|
|
|
$
|
(85.4)
|
|
Cash flows used in
investing activities
|
(260.6)
|
|
|
(93.3)
|
|
Cash flows provided
by (used in) financing activities
|
231.5
|
|
|
(31.3)
|
|
Net decrease in cash
and cash equivalents
|
(179.0)
|
|
|
(210.0)
|
|
Cash and cash
equivalents, beginning of period
|
597.3
|
|
|
573.0
|
|
Cash and cash
equivalents, end of period
|
$
|
418.3
|
|
|
$
|
363.0
|
|
|
|
|
|
|
|
|
|
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
March 31, 2019
|
|
Refining
|
|
Logistics
|
|
Corporate
|
|
Eliminations
|
|
Consolidated
Total
|
Revenues
|
$
|
5,208.7
|
|
|
$
|
78.8
|
|
|
$
|
—
|
|
|
$
|
(71.3)
|
|
|
$
|
5,216.2
|
|
Depreciation and
amortization expense
|
94.3
|
|
|
8.7
|
|
|
2.8
|
|
|
—
|
|
|
105.8
|
|
Income (loss) from
operations (Note 14)
|
389.5
|
|
|
34.2
|
|
|
(54.4)
|
|
|
(4.7)
|
|
|
364.6
|
|
Interest expense,
net
|
0.5
|
|
|
12.1
|
|
|
26.9
|
|
|
—
|
|
|
39.5
|
|
Capital
expenditures
|
247.1
|
|
|
11.2
|
|
|
2.3
|
|
|
—
|
|
|
260.6
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
March 31, 2018
|
|
Refining
|
|
Logistics
|
|
Corporate
|
|
Eliminations
|
|
Consolidated
Total
|
Revenues
|
$
|
5,799.1
|
|
|
$
|
64.7
|
|
|
$
|
—
|
|
|
$
|
(61.0)
|
|
|
$
|
5,802.8
|
|
Depreciation and
amortization expense
|
76.7
|
|
|
6.6
|
|
|
2.7
|
|
|
—
|
|
|
86.0
|
|
Income (loss) from
operations (Note 14)
|
127.0
|
|
|
33.9
|
|
|
(61.2)
|
|
|
(4.0)
|
|
|
95.7
|
|
Interest expense,
net
|
1.9
|
|
|
9.9
|
|
|
31.4
|
|
|
—
|
|
|
43.2
|
|
Capital
expenditures
|
88.3
|
|
|
4.0
|
|
|
1.0
|
|
|
—
|
|
|
93.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at March
31, 2019
|
|
Refining
|
|
Logistics
|
|
Corporate
|
|
Eliminations
|
|
Consolidated
Total
|
Total Assets (Note
15)
|
$
|
8,158.2
|
|
|
$
|
957.2
|
|
|
$
|
54.6
|
|
|
$
|
(43.9)
|
|
|
$
|
9,126.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at
December 31, 2018
|
|
Refining
|
|
Logistics
|
|
Corporate
|
|
Eliminations
|
|
Consolidated
Total
|
Total Assets (Note
15)
|
$
|
6,988.0
|
|
|
$
|
956.4
|
|
|
$
|
98.1
|
|
|
$
|
(37.1)
|
|
|
$
|
8,005.4
|
|
|
|
|
|
|
|
|
|
|
|
See Footnotes to
Earnings Release Tables
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PBF ENERGY INC.
AND SUBSIDIARIES
|
EARNINGS RELEASE
TABLES
|
MARKET INDICATORS
AND KEY OPERATING INFORMATION
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
|
|
|
March
31,
|
Market Indicators
(dollars per barrel) (Note 9)
|
2019
|
|
2018
|
Dated Brent crude
oil
|
$
|
63.26
|
|
|
$
|
66.90
|
|
West Texas
Intermediate (WTI) crude oil
|
$
|
54.87
|
|
|
$
|
62.90
|
|
Light Louisiana Sweet
(LLS) crude oil
|
$
|
62.38
|
|
|
$
|
65.84
|
|
Alaska North Slope
(ANS) crude oil
|
$
|
64.39
|
|
|
$
|
67.20
|
|
Crack
Spreads:
|
|
|
|
Dated Brent (NYH)
2-1-1
|
$
|
9.85
|
|
|
$
|
12.80
|
|
WTI (Chicago)
4-3-1
|
$
|
12.33
|
|
|
$
|
11.78
|
|
LLS (Gulf Coast)
2-1-1
|
$
|
9.89
|
|
|
$
|
12.84
|
|
ANS (West Coast)
4-3-1
|
$
|
13.54
|
|
|
$
|
16.42
|
|
Crude Oil
Differentials:
|
|
|
|
Dated Brent (foreign)
less WTI
|
$
|
8.39
|
|
|
$
|
4.00
|
|
Dated Brent less Maya
(heavy, sour)
|
$
|
4.50
|
|
|
$
|
9.15
|
|
Dated Brent less WTS
(sour)
|
$
|
9.55
|
|
|
$
|
5.40
|
|
Dated Brent less ASCI
(sour)
|
$
|
2.35
|
|
|
$
|
4.57
|
|
WTI less WCS (heavy,
sour)
|
$
|
9.96
|
|
|
$
|
26.06
|
|
WTI less Bakken
(light, sweet)
|
$
|
(0.25)
|
|
|
$
|
1.04
|
|
WTI less Syncrude
(light, sweet)
|
$
|
(0.04)
|
|
|
$
|
0.30
|
|
WTI less LLS (light,
sweet)
|
$
|
(7.51)
|
|
|
$
|
(2.94)
|
|
WTI less ANS (light,
sweet)
|
$
|
(9.52)
|
|
|
$
|
(4.30)
|
|
Natural gas (dollars
per MMBTU)
|
$
|
2.87
|
|
|
$
|
2.79
|
|
|
|
|
|
|
|
|
|
|
Key Operating
Information
|
|
|
|
Production (barrels
per day ("bpd") in thousands)
|
737.7
|
|
|
803.0
|
|
Crude oil and
feedstocks throughput (bpd in thousands)
|
743.1
|
|
|
799.6
|
|
Total crude oil and
feedstocks throughput (millions of barrels)
|
66.9
|
|
|
72.0
|
|
Consolidated gross
margin per barrel of throughput
|
$
|
6.35
|
|
|
$
|
2.26
|
|
Gross refining
margin, excluding special items, per barrel of throughput (Note 4,
Note 10)
|
$
|
6.38
|
|
|
$
|
7.26
|
|
Refinery operating
expense, per barrel of throughput (Note 11)
|
$
|
6.78
|
|
|
$
|
5.72
|
|
Crude and feedstocks
(% of total throughput) (Note 12)
|
|
|
|
Heavy
|
32
|
%
|
|
34
|
%
|
Medium
|
32
|
%
|
|
35
|
%
|
Light
|
24
|
%
|
|
20
|
%
|
Other feedstocks and
blends
|
12
|
%
|
|
11
|
%
|
Total
throughput
|
100
|
%
|
|
100
|
%
|
Yield (% of total
throughput)
|
|
|
|
Gasoline and gasoline
blendstocks
|
46
|
%
|
|
51
|
%
|
Distillates and
distillate blendstocks
|
32
|
%
|
|
31
|
%
|
Lubes
|
1
|
%
|
|
1
|
%
|
Chemicals
|
2
|
%
|
|
2
|
%
|
Other
|
18
|
%
|
|
15
|
%
|
Total yield
|
99
|
%
|
|
100
|
%
|
|
|
|
|
|
|
|
|
|
See Footnotes to
Earnings Release Tables
|
PBF ENERGY INC.
AND SUBSIDIARIES
|
EARNINGS RELEASE
TABLES
|
SUPPLEMENTAL
OPERATING INFORMATION
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
|
|
|
March
31,
|
|
|
|
|
|
|
2019
|
|
2018
|
Supplemental
Operating Information - East Coast (Delaware City and
Paulsboro)
|
|
|
|
Production (bpd in
thousands)
|
299.7
|
|
|
329.6
|
|
Crude oil and
feedstocks throughput (bpd in thousands)
|
305.0
|
|
|
332.9
|
|
Total crude oil and
feedstocks throughput (millions of barrels)
|
27.5
|
|
|
30.0
|
|
Gross margin per
barrel of throughput
|
$
|
1.16
|
|
|
$
|
1.23
|
|
Gross refining
margin, excluding special items, per barrel of throughput (Note 4,
Note 10)
|
$
|
3.35
|
|
|
$
|
6.47
|
|
Refinery operating
expense, per barrel of throughput (Note 11)
|
$
|
6.37
|
|
|
$
|
5.16
|
|
Crude and feedstocks
(% of total throughput) (Note 12):
|
|
|
|
Heavy
|
25
|
%
|
|
23
|
%
|
Medium
|
52
|
%
|
|
52
|
%
|
Light
|
4
|
%
|
|
10
|
%
|
Other feedstocks and
blends
|
19
|
%
|
|
15
|
%
|
Total
throughput
|
100
|
%
|
|
100
|
%
|
Yield (% of total
throughput):
|
|
|
|
Gasoline and gasoline
blendstocks
|
43
|
%
|
|
48
|
%
|
Distillates and
distillate blendstocks
|
31
|
%
|
|
32
|
%
|
Lubes
|
3
|
%
|
|
3
|
%
|
Chemicals
|
1
|
%
|
|
1
|
%
|
Other
|
20
|
%
|
|
15
|
%
|
Total yield
|
98
|
%
|
|
99
|
%
|
|
|
|
|
|
|
|
|
|
Supplemental
Operating Information - Mid-Continent (Toledo)
|
|
|
|
Production (bpd in
thousands)
|
150.2
|
|
|
125.0
|
|
Crude oil and
feedstocks throughput (bpd in thousands)
|
148.0
|
|
|
122.9
|
|
Total crude oil and
feedstocks throughput (millions of barrels)
|
13.3
|
|
|
11.1
|
|
Gross margin per
barrel of throughput
|
$
|
15.22
|
|
|
$
|
0.12
|
|
Gross refining
margin, excluding special items, per barrel of throughput (Note 4,
Note 10)
|
$
|
12.28
|
|
|
$
|
8.22
|
|
Refinery operating
expense, per barrel of throughput (Note 11)
|
$
|
5.55
|
|
|
$
|
6.19
|
|
Crude and feedstocks
(% of total throughput) (Note 12):
|
|
|
|
Medium
|
29
|
%
|
|
37
|
%
|
Light
|
70
|
%
|
|
62
|
%
|
Other feedstocks and
blends
|
1
|
%
|
|
1
|
%
|
Total
throughput
|
100
|
%
|
|
100
|
%
|
Yield (% of total
throughput):
|
|
|
|
Gasoline and gasoline
blendstocks
|
53
|
%
|
|
60
|
%
|
Distillates and
distillate blendstocks
|
36
|
%
|
|
32
|
%
|
Chemicals
|
6
|
%
|
|
5
|
%
|
Other
|
6
|
%
|
|
5
|
%
|
Total yield
|
101
|
%
|
|
102
|
%
|
|
|
|
|
|
|
|
|
|
See Footnotes to
Earnings Release Tables
|
PBF ENERGY INC.
AND SUBSIDIARIES
|
EARNINGS RELEASE
TABLES
|
SUPPLEMENTAL
OPERATING INFORMATION
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
|
|
|
March
31,
|
|
|
|
|
|
|
2019
|
|
2018
|
Supplemental
Operating Information - Gulf Coast (Chalmette)
|
|
|
|
Production (bpd in
thousands)
|
165.0
|
|
|
167.1
|
|
Crude oil and
feedstocks throughput (bpd in thousands)
|
164.6
|
|
|
169.2
|
|
Total crude oil and
feedstocks throughput (millions of barrels)
|
14.8
|
|
|
15.2
|
|
Gross margin per
barrel of throughput
|
$
|
4.48
|
|
|
$
|
0.06
|
|
Gross refining
margin, excluding special items, per barrel of throughput (Note 4,
Note 10)
|
$
|
3.33
|
|
|
$
|
4.45
|
|
Refinery operating
expense, per barrel of throughput (Note 11)
|
$
|
5.89
|
|
|
$
|
5.01
|
|
Crude and feedstocks
(% of total throughput) (Note 12):
|
|
|
|
Heavy
|
34
|
%
|
|
41
|
%
|
Medium
|
16
|
%
|
|
19
|
%
|
Light
|
37
|
%
|
|
32
|
%
|
Other feedstocks and
blends
|
13
|
%
|
|
8
|
%
|
Total
throughput
|
100
|
%
|
|
100
|
%
|
Yield (% of total
throughput):
|
|
|
|
Gasoline and gasoline
blendstocks
|
40
|
%
|
|
40
|
%
|
Distillates and
distillate blendstocks
|
35
|
%
|
|
33
|
%
|
Chemicals
|
2
|
%
|
|
1
|
%
|
Other
|
23
|
%
|
|
25
|
%
|
Total yield
|
100
|
%
|
|
99
|
%
|
|
|
|
|
|
|
|
|
|
Supplemental
Operating Information - West Coast (Torrance)
|
|
|
|
Production (bpd in
thousands)
|
122.8
|
|
|
181.3
|
|
Crude oil and
feedstocks throughput (bpd in thousands)
|
125.5
|
|
|
174.6
|
|
Total crude oil and
feedstocks throughput (millions of barrels)
|
11.3
|
|
|
15.7
|
|
Gross margin per
barrel of throughput
|
$
|
7.42
|
|
|
$
|
5.26
|
|
Gross refining
margin, excluding special items, per barrel of throughput (Note 4,
Note 10)
|
$
|
10.76
|
|
|
$
|
10.81
|
|
Refinery operating
expense, per barrel of throughput (Note 11)
|
$
|
10.40
|
|
|
$
|
7.13
|
|
Crude and feedstocks
(% of total throughput) (Note 12):
|
|
|
|
Heavy
|
82
|
%
|
|
80
|
%
|
Medium
|
8
|
%
|
|
4
|
%
|
Other feedstocks and
blends
|
10
|
%
|
|
16
|
%
|
Total
throughput
|
100
|
%
|
|
100
|
%
|
Yield (% of total
throughput):
|
|
|
|
Gasoline and gasoline
blendstocks
|
51
|
%
|
|
60
|
%
|
Distillates and
distillate blendstocks
|
24
|
%
|
|
28
|
%
|
Other
|
23
|
%
|
|
16
|
%
|
Total yield
|
98
|
%
|
|
104
|
%
|
|
|
|
|
|
|
|
|
|
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
|
|
|
|
|
|
|
|
March 31,
2019
|
|
March 31,
2018
|
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
|
$
|
5,216.2
|
|
|
$
|
77.99
|
|
|
$
|
5,802.8
|
|
|
$
|
80.64
|
|
Less: Cost of
Sales
|
4,791.2
|
|
|
71.64
|
|
|
5,641.5
|
|
|
78.38
|
|
Consolidated gross
margin
|
$
|
425.0
|
|
|
$
|
6.35
|
|
|
$
|
161.3
|
|
|
$
|
2.26
|
|
Reconciliation of
consolidated gross margin to gross refining margin:
|
|
|
|
|
|
|
|
Consolidated gross
margin
|
$
|
425.0
|
|
|
$
|
6.35
|
|
|
$
|
161.3
|
|
|
$
|
2.26
|
|
|
Add: PBFX operating
expense
|
29.9
|
|
|
0.45
|
|
|
18.0
|
|
|
0.25
|
|
|
Add: PBFX
depreciation expense
|
8.7
|
|
|
0.13
|
|
|
6.5
|
|
|
0.08
|
|
|
Less: Revenues of
PBFX
|
(78.8)
|
|
|
(1.18)
|
|
|
(64.0)
|
|
|
(0.89)
|
|
|
Add: Refinery
operating expense
|
453.4
|
|
|
6.78
|
|
|
411.4
|
|
|
5.72
|
|
|
Add: Refinery
depreciation expense
|
94.3
|
|
|
1.41
|
|
|
76.8
|
|
|
1.07
|
|
Gross refining
margin
|
$
|
932.5
|
|
|
$
|
13.94
|
|
|
$
|
610.0
|
|
|
$
|
8.49
|
|
Special
Items (Note 4):
|
|
|
|
|
|
|
|
|
Add: Non-cash LCM
inventory adjustment
|
(506.0)
|
|
|
(7.56)
|
|
|
(87.7)
|
|
|
(1.23)
|
|
Gross refining
margin excluding special items
|
$
|
426.5
|
|
|
$
|
6.38
|
|
|
$
|
522.3
|
|
|
$
|
7.26
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 our estimated annualized statutory corporate
tax rate of approximately 26.0% and 26.4% for the 2019 and 2018
periods, respectively, applied to net income attributable to
noncontrolling interests 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
(loss) excluding special items, income (loss) from operations
excluding special items, EBITDA excluding special items and gross
refining margin excluding special items. Special items presented
for the three months ended March 31, 2019 and 2018 relate to a
lower of cost or market ("LCM") inventory adjustment, as discussed
further below. Additionally, the cumulative effects of all prior
period special items on equity are shown in footnote 13.
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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.
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Special
Items:
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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 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.
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The following table
includes the LCM inventory reserve as of each date presented (in
millions):
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2019
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2018
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January 1,
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$
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651.8
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$
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300.5
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March 31,
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145.8
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212.8
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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):
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Three Months
Ended
March 31,
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2019
|
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2018
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Net LCM inventory
adjustment benefit in income from operations
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$
|
506.0
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$
|
87.7
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Net LCM inventory
adjustment benefit in net income
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374.4
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64.5
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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 above.
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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 months ended March 31,
2019 and 2018, respectively. Common stock equivalents exclude the
effects of options and warrants to purchase 5,111,617 and 3,982,000
shares of PBF Energy Class A common stock and PBF LLC Series A
Units because they are anti-dilutive for the three months ended
March 31, 2019 and 2018, respectively. For periods showing a net
loss, all common stock equivalents 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 leases, the write down of inventory to the LCM,
changes in the liability for Tax Receivable Agreement due to
factors out of PBF Energy's control such as changes in tax rates,
debt extinguishment costs related to refinancing activities, 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 March 31, 2019, the Refining segment
includes the operations of our oil refineries and related
facilities in Delaware City, Delaware, Paulsboro, New Jersey,
Toledo, Ohio, New Orleans, Louisiana and Torrance, 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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March
31,
|
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December
31,
|
|
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|
|
2019
|
|
2018
|
|
|
(in
millions)
|
Total debt
|
$
|
2,191.0
|
|
|
$
|
1,933.7
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|
Total
equity
|
3,446.8
|
|
|
3,248.5
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|
Total
capitalization
|
$
|
5,637.8
|
|
|
$
|
5,182.2
|
|
|
|
|
|
Total debt
|
$
|
2,191.0
|
|
|
$
|
1,933.7
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Total equity
excluding special items
|
3,375.6
|
|
|
3,551.7
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Total capitalization
excluding special items
|
$
|
5,566.6
|
|
|
$
|
5,485.4
|
|
|
|
|
|
Total
equity
|
$
|
3,446.8
|
|
|
$
|
3,248.5
|
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Special Items
(Note 4)
|
|
|
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Add: Non-cash LCM inventory adjustment
|
145.8
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|
|
651.8
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Add: Change in Tax Receivable Agreement liability
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(290.4)
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(290.4)
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Add: Debt extinguishment costs
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25.5
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|
25.5
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Add: Gain on Torrance land sale
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(43.8)
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|
|
(43.8)
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Add: Early railcar return expense
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52.3
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|
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52.3
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Less: Recomputed income taxes on special items
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19.2
|
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|
(112.4)
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Add: Net tax expense on TCJA related special items
|
20.2
|
|
|
20.2
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Net impact of
special items to equity
|
(71.2)
|
|
|
303.2
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Total equity
excluding special items
|
$
|
3,375.6
|
|
|
$
|
3,551.7
|
|
|
|
|
|
|
|
|
Total debt
|
$
|
2,191.0
|
|
|
$
|
1,933.7
|
|
Less: Cash and cash equivalents
|
418.3
|
|
|
597.3
|
|
Net Debt
|
|
|
|
$
|
1,772.7
|
|
|
$
|
1,336.4
|
|
|
|
|
|
|
|
|
Total debt to
capitalization ratio
|
39
|
%
|
|
37
|
%
|
Total debt to
capitalization ratio, excluding special items
|
39
|
%
|
|
35
|
%
|
Net debt to
capitalization ratio
|
34
|
%
|
|
29
|
%
|
Net debt to
capitalization ratio, excluding special items
|
34
|
%
|
|
27
|
%
|
|
(14) The Logistics
segment includes 100% of the income from operations of the Torrance
Valley Pipeline Company LLC ("TVPC"), as TVPC is consolidated by
PBFX. PBFX records net income attributable to noncontrolling
interest for the 50% equity interest in TVPC held by PBF Holding.
PBF Holding (included in the Refining segment) records equity
income in investee related to its 50% noncontrolling ownership
interest in TVPC. For the purposes of the consolidated PBF Energy
financial statements, PBF Holding's equity income in investee and
PBFX's net income attributable to noncontrolling interest eliminate
in consolidation.
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(15) The Logistics
segment includes 100% of the assets of TVPC as TVPC is consolidated
by PBFX. PBFX records a noncontrolling interest for the 50% equity
interest in TVPC held by PBF Holding. PBF Holding (included in the
Refining segment) records an equity investment in TVPC reflecting
its noncontrolling ownership interest. For the purposes of the
consolidated PBF Energy financial statements, PBFX's noncontrolling
interest in TVPC and PBF Holding's equity investment in TVPC
eliminate in consolidation.
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SOURCE PBF Energy Inc.