PARSIPPANY, N.J., Oct. 28, 2016 /PRNewswire/ -- PBF Energy
Inc. (NYSE: PBF) today reported a third quarter 2016 income from
operations of $129.7 million as
compared to income from operations of $92.3
million for third quarter of 2015. Excluding special items,
third quarter 2016 income from operations was $25.7 million as compared to income from
operations of $300.6 million for the
third quarter of 2015. Special items in the third quarter 2016
results include a net, non-cash, after-tax gain of $62.8 million, or $0.61 per share, lower-of-cost-or-market ("LCM")
inventory adjustment which increased operating income, and an
after-tax charge of $1.9 million, or
0.02 per share, related to a change in the tax receivable liability
agreement. Additionally, included in our results were net after-tax
charges totaling approximately $4.2
million, or $0.04 per share,
related to acquisition and other expenses.
The company reported third quarter 2016 net income of
$56.4 million, and net income
attributable to PBF Energy Inc. of $42.1
million or $0.43 per share.
This compares to net income of $55.5
million, and net income attributable to PBF Energy Inc. of
$42.8 million or $0.49 per share for the third quarter 2015.
Adjusted fully-converted net loss for the third quarter 2016,
excluding special items, was $16.5
million, or $0.16 per share on
a fully-exchanged, fully -diluted basis, as described below,
compared to adjusted fully-converted net income of $170.7 million, or $1.87 per share, for the third quarter 2015. 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 44.2% of
the limited partner interests as of quarter-end.
Tom Nimbley, PBF Energy's
Chairman and CEO, said, "It was a challenging refining environment
in the third quarter, with the exception of the Gulf Coast, average
benchmark margins were down in every region and we experienced the
added headwind of a 15 percent increase in the cost of compliance
with the renewable fuels mandate." Mr. Nimbley continued, "We
continue to focus on our strategy to improve profitability and
reliability and are committed to reducing operating expenses across
our system. We believe that we are near a cyclical low in the
refining environment and the ongoing and planned enhancements will
strengthen the company's operating results and increase margin
capture when the market improves."
Torrance Refinery acquisition and sale of Torrance Valley
Pipeline Company LLC interest
On July 1, 2016, PBF announced that
its subsidiary had closed its previously announced acquisition of
the 155,000 barrel per day Torrance refinery, and related logistics
assets, from ExxonMobil.
Subsequent to the purchase of the Torrance refinery,
subsidiaries of PBF Energy sold, through a drop-down transaction
with a subsidiary of PBF Logistics LP, a 50 percent equity stake in
the Torrance Valley Pipeline Company LLC ("TVPC"). Proceeds
from the transaction were $175.0
million.
TVPC owns the 189-mile San Joaquin Valley Pipeline system with a
throughput capacity of approximately 110,000 barrels per day. The
system, segregated into two parts, Northern and Southern portions,
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 tankage and
truck unloading capability at two of the stations. PBF
Logistics LP has entered into a ten-year term transportation
services agreement with a subsidiary of PBF Energy containing
minimum volume throughput commitments ("MVCs") of approximately
50,000 barrels per day for the Northern logistics system and MVCs
of approximately 70,000 barrels per day for the Southern logistics
system and the usage of certain tanks.
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 November 22, 2016, to
holders of record as of November 8,
2016.
Outlook
For the fourth quarter 2016, we expect East Coast total throughput
to average 310,000 to 330,000 barrels per day; Mid-Continent total
throughput is expected to average 130,000 to 140,000 barrels per
day; Gulf Coast total throughput is expected to average 155,000 to
165,000 barrels per day and West Coast total throughput is expected
to average 135,000 to 145,000 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 per
fully-exchanged, fully-diluted share, gross refining margin, gross
refining margin per barrel of throughput, EBITDA (Earnings before
Interest, Income Taxes, Depreciation and Amortization), Adjusted
EBITDA and projected EBITDA related to the refinery acquisitions.
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
Friday, October 28, 2016, 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 heard by dialing (888) 632-3384 or (785) 424-1675,
conference ID: PBFQ316. The audio replay will be available two
hours after the end of the call through November 13, 2016, by dialing (800) 283-8183 or
(402) 220-0867.
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 risk 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 44.2% 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
thousands, except share and per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
|
|
|
|
|
September
30,
|
|
September
30,
|
|
|
|
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
Revenues
|
|
$
|
4,513,204
|
|
|
$
|
3,217,640
|
|
|
$
|
11,171,856
|
|
|
$
|
9,763,440
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs and
expenses:
|
|
|
|
|
|
|
|
|
|
Cost of sales,
excluding depreciation
|
|
3,862,580
|
|
|
2,822,444
|
|
|
9,524,119
|
|
|
8,319,404
|
|
|
Operating expenses,
excluding depreciation
|
|
412,699
|
|
|
203,860
|
|
|
989,296
|
|
|
635,948
|
|
|
General and
administrative expenses
|
|
44,020
|
|
|
51,078
|
|
|
124,975
|
|
|
126,347
|
|
|
Loss (gain) on sale
of assets
|
|
8,159
|
|
|
(142)
|
|
|
11,381
|
|
|
(1,133)
|
|
|
Depreciation and
amortization expense
|
|
56,036
|
|
|
48,133
|
|
|
163,029
|
|
|
144,401
|
|
|
|
|
|
|
|
4,383,494
|
|
|
3,125,373
|
|
|
10,812,800
|
|
|
9,224,967
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from
operations
|
|
129,710
|
|
|
92,267
|
|
|
359,056
|
|
|
538,473
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other (expenses)
income:
|
|
|
|
|
|
|
|
|
|
|
Change in tax
receivable agreement liability
|
|
(3,143)
|
|
|
(2,215)
|
|
|
(3,143)
|
|
|
(2,215)
|
|
|
Change in fair value
of catalyst leases
|
|
77
|
|
|
4,994
|
|
|
(4,556)
|
|
|
8,982
|
|
|
Interest expense,
net
|
|
(38,527)
|
|
|
(28,026)
|
|
|
(111,994)
|
|
|
(77,094)
|
|
|
Income before
income taxes
|
|
88,117
|
|
|
67,020
|
|
|
239,363
|
|
|
468,146
|
|
|
Income tax
expense
|
|
31,673
|
|
|
11,525
|
|
|
85,607
|
|
|
151,072
|
|
|
Net
income
|
|
56,444
|
|
|
55,495
|
|
|
153,756
|
|
|
317,074
|
|
|
Less: net income
attributable to noncontrolling interests
|
|
14,333
|
|
|
12,696
|
|
|
37,503
|
|
|
51,144
|
|
|
Net income
attributable to PBF Energy Inc.
|
|
$
|
42,111
|
|
|
$
|
42,799
|
|
|
$
|
116,253
|
|
|
$
|
265,930
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income available
to Class A common stock per share:
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.43
|
|
|
$
|
0.50
|
|
|
$
|
1.19
|
|
|
$
|
3.11
|
|
|
|
Diluted
|
|
$
|
0.43
|
|
|
$
|
0.49
|
|
|
$
|
1.19
|
|
|
$
|
3.06
|
|
|
|
Weighted-average
shares outstanding-basic
|
|
97,825,357
|
|
|
85,845,583
|
|
|
97,823,708
|
|
|
85,401,028
|
|
|
|
Weighted-average
shares outstanding-diluted
|
|
103,135,799
|
|
|
91,496,283
|
|
|
103,210,917
|
|
|
91,557,371
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends per common
share
|
|
$
|
0.30
|
|
|
$
|
0.30
|
|
|
$
|
0.90
|
|
|
$
|
0.90
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
$
|
44,404
|
|
|
$
|
44,781
|
|
|
$
|
122,749
|
|
|
$
|
280,603
|
|
|
|
Adjusted
fully-converted net income per fully exchanged, fully diluted
share
|
|
$
|
0.43
|
|
|
$
|
0.49
|
|
|
$
|
1.19
|
|
|
$
|
3.06
|
|
|
|
Adjusted
fully-converted shares outstanding - diluted
|
|
103,135,799
|
|
|
91,496,283
|
|
|
103,210,917
|
|
|
91,557,371
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See Footnotes to
Earnings Release Tables
|
|
PBF ENERGY INC.
AND SUBSIDIARIES
|
|
RECONCILIATION OF
AMOUNTS REPORTED UNDER U.S. GAAP
|
|
(Unaudited, in
thousands, except share and per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
RECONCILIATION OF
NET INCOME TO
|
|
September
30,
|
|
September
30,
|
|
ADJUSTED
FULLY-CONVERTED NET INCOME (LOSS)
(Note 1)
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
Net income
attributable to PBF Energy Inc.
|
|
$
|
42,111
|
|
|
$
|
42,799
|
|
|
$
|
116,253
|
|
|
$
|
265,930
|
|
|
Add:
|
Net income
attributable to noncontrolling interest (Note 2)
|
|
3,797
|
|
|
3,315
|
|
|
10,755
|
|
|
24,536
|
|
|
Less:
|
Income tax (expense)
benefit (Note 3)
|
|
(1,504)
|
|
|
(1,333)
|
|
|
(4,259)
|
|
|
(9,863)
|
|
|
Adjusted
fully-converted net income
|
|
$
|
44,404
|
|
|
$
|
44,781
|
|
|
$
|
122,749
|
|
|
$
|
280,603
|
|
|
Special Items (Note
4):
|
|
|
|
|
|
|
|
|
|
Add:
|
Net non-cash LCM
inventory adjustment (Note 5)
|
|
(103,990)
|
|
|
208,313
|
|
|
(320,833)
|
|
|
81,147
|
|
|
Add:
|
Change in tax
receivable agreement liability (Note 18)
|
|
3,143
|
|
|
2,215
|
|
|
3,143
|
|
|
2,215
|
|
|
Add:
|
Recomputed income
taxes on special items (Note 5)
|
|
39,935
|
|
|
(84,632)
|
|
|
125,805
|
|
|
(33,512)
|
|
|
Adjusted
fully-converted net (loss) income excluding special items (Note
4)
|
|
$
|
(16,508)
|
|
|
$
|
170,677
|
|
|
$
|
(69,136)
|
|
|
$
|
330,453
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
weighted-average shares outstanding of PBF Energy Inc. (Note
6)
|
|
103,135,799
|
|
|
91,496,283
|
|
|
103,210,917
|
|
|
91,557,371
|
|
|
Conversion of PBF LLC
Series A Units (Note 7)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Fully-converted
shares outstanding - diluted
|
|
103,135,799
|
|
|
91,496,283
|
|
|
103,210,917
|
|
|
91,557,371
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
fully-converted net income (per fully exchanged, fully diluted
shares outstanding)
|
|
$
|
0.43
|
|
|
$
|
0.49
|
|
|
$
|
1.19
|
|
|
$
|
3.06
|
|
|
|
Adjusted
fully-converted net (loss) income excluding special items (per
fully exchanged, fully diluted shares outstanding) (Note
4)
|
|
$
|
(0.16)
|
|
|
$
|
1.87
|
|
|
$
|
(0.67)
|
|
|
$
|
3.61
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
RECONCILIATION OF
INCOME FROM OPERATIONS
|
|
September
30,
|
|
September
30,
|
|
TO INCOME FROM
OPERATIONS EXCLUDING SPECIAL ITEMS
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
Income from
operations
|
|
$
|
129,710
|
|
|
$
|
92,267
|
|
|
$
|
359,056
|
|
|
$
|
538,473
|
|
|
Special Items (Note
4):
|
|
|
|
|
|
|
|
|
|
Add:
|
Net non-cash LCM
inventory adjustment (Note 5)
|
|
(103,990)
|
|
|
208,313
|
|
|
(320,833)
|
|
|
81,147
|
|
|
Income from
operations excluding special items (Note 4)
|
|
$
|
25,720
|
|
|
$
|
300,580
|
|
|
$
|
38,223
|
|
|
$
|
619,620
|
|
|
|
See Footnotes to
Earnings Release Tables
|
|
PBF ENERGY INC.
AND SUBSIDIARIES
|
|
RECONCILIATION OF
AMOUNTS REPORTED UNDER U.S. GAAP
|
|
EBITDA
RECONCILIATIONS (Note 8)
|
|
(Unaudited, in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
|
September
30,
|
|
September
30,
|
|
RECONCILIATION OF
NET INCOME TO EBITDA
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
Net
income
|
|
$
|
56,444
|
|
|
$
|
55,495
|
|
|
$
|
153,756
|
|
|
$
|
317,074
|
|
|
Add:
|
Depreciation and
amortization expense
|
|
56,036
|
|
|
48,133
|
|
|
163,029
|
|
|
144,401
|
|
|
Add:
|
Interest expense,
net
|
|
38,527
|
|
|
28,026
|
|
|
111,994
|
|
|
77,094
|
|
|
Add:
|
Income tax
expense
|
|
31,673
|
|
|
11,525
|
|
|
85,607
|
|
|
151,072
|
|
|
EBITDA
|
|
|
$
|
182,680
|
|
|
$
|
143,179
|
|
|
$
|
514,386
|
|
|
$
|
689,641
|
|
|
Special Items (Note
4):
|
|
|
|
|
|
|
|
|
|
Add:
|
Net non-cash LCM
inventory adjustment (Note 5)
|
|
(103,990)
|
|
|
208,313
|
|
|
(320,833)
|
|
|
81,147
|
|
|
Add:
|
Change in tax
receivable agreement liability (Note 18)
|
|
3,143
|
|
|
2,215
|
|
|
3,143
|
|
|
2,215
|
|
|
EBITDA excluding
special items (Note 4)
|
|
$
|
81,833
|
|
|
$
|
353,707
|
|
|
$
|
196,696
|
|
|
$
|
773,003
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RECONCILIATION OF
EBITDA TO ADJUSTED EBITDA
|
|
|
|
|
|
|
|
|
|
EBITDA
|
|
$
|
182,680
|
|
|
$
|
143,179
|
|
|
$
|
514,386
|
|
|
$
|
689,641
|
|
|
Add:
|
Stock based
compensation
|
|
3,622
|
|
|
3,363
|
|
|
16,331
|
|
|
8,757
|
|
|
Add:
|
Change in tax
receivable agreement liability (Note 18)
|
|
3,143
|
|
|
2,215
|
|
|
3,143
|
|
|
2,215
|
|
|
Add:
|
Net non-cash change
in fair value of catalyst leases
|
|
(77)
|
|
|
(4,994)
|
|
|
4,556
|
|
|
(8,982)
|
|
|
Add:
|
Non-cash LCM
inventory adjustment (Note 5)
|
|
(103,990)
|
|
|
208,313
|
|
|
(320,833)
|
|
|
81,147
|
|
|
Adjusted
EBITDA
|
|
|
$
|
85,378
|
|
|
$
|
352,076
|
|
|
$
|
217,583
|
|
|
$
|
772,778
|
|
|
|
See Footnotes to
Earnings Release Tables
|
|
PBF ENERGY INC.
AND SUBSIDIARIES
|
|
EARNINGS RELEASE
TABLES
|
|
CONDENSED
CONSOLIDATED BALANCE SHEET DATA
|
|
(Unaudited, in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September
30,
|
|
December
31,
|
|
|
|
|
|
2016
|
|
2015
|
|
Cash, cash
equivalents and marketable securities
|
$
|
685,393
|
|
|
$
|
1,178,578
|
|
|
Inventories
|
1,845,595
|
|
|
1,174,272
|
|
|
Total
assets
|
7,465,714
|
|
|
6,105,124
|
|
|
Total debt
|
2,369,625
|
|
|
1,840,355
|
|
|
|
|
|
|
|
Total
equity
|
$
|
2,279,360
|
|
|
$
|
2,095,857
|
|
|
Total equity
excluding special items (Note 15)
|
$
|
2,754,736
|
|
|
$
|
2,763,118
|
|
|
|
|
|
|
|
|
|
|
Total debt to
capitalization ratio (Note 15)
|
51
|
%
|
|
47
|
%
|
|
Total debt to
capitalization ratio, excluding special items (Note 15)
|
46
|
%
|
|
40
|
%
|
|
Net debt to
capitalization ratio (Note 15)
|
42
|
%
|
|
24
|
%
|
|
Net debt to
capitalization ratio, excluding special items (Note 15)
|
38
|
%
|
|
19
|
%
|
|
|
|
|
|
|
SUMMARIZED
STATEMENT OF CASH FLOW DATA
|
|
(Unaudited, in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended
September 30,
|
|
|
|
|
|
2016
|
|
2015
|
|
Cash flows provided
by operations
|
$
|
388,212
|
|
|
$
|
240,399
|
|
|
Cash flows used in
investing activities
|
(1,246,953)
|
|
|
(166,942)
|
|
|
Cash flows provided
by financing activities
|
539,823
|
|
|
1,499
|
|
|
Net (decrease)
increase in cash and cash equivalents
|
(318,918)
|
|
|
74,956
|
|
|
Cash and cash
equivalents, beginning of period
|
944,320
|
|
|
397,873
|
|
|
Cash and cash
equivalents, end of period
|
$
|
625,402
|
|
|
$
|
472,829
|
|
|
Marketable
securities
|
59,991
|
|
|
234,249
|
|
|
Net cash, cash
equivalents and marketable securities
|
$
|
685,393
|
|
|
$
|
707,078
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See Footnotes to
Earnings Release Tables
|
|
PBF ENERGY INC.
AND SUBSIDIARIES
|
|
EARNINGS RELEASE
TABLES
|
|
CONSOLIDATING
FINANCIAL INFORMATION (Note 9)
|
|
(Unaudited, in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
September 30, 2016
|
|
Refining
|
|
Logistics
|
|
Corporate
|
|
Eliminations
|
|
Consolidated
Total
|
|
Revenues
|
$
|
4,508,613
|
|
|
$
|
48,433
|
|
|
$
|
—
|
|
|
$
|
(43,842)
|
|
|
$
|
4,513,204
|
|
|
Depreciation and
amortization
|
49,554
|
|
|
5,140
|
|
|
1,342
|
|
|
|
|
56,036
|
|
|
Income (loss) from
operations (16)
|
148,985
|
|
|
26,060
|
|
|
(43,714)
|
|
|
(1,621)
|
|
|
129,710
|
|
|
Interest expense,
net
|
713
|
|
|
7,696
|
|
|
30,118
|
|
|
—
|
|
|
38,527
|
|
|
Capital
expenditures (Note 14)
|
$
|
1,086,557
|
|
|
$
|
2,625
|
|
|
$
|
4,337
|
|
|
$
|
—
|
|
|
$
|
1,093,519
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
September 30, 2015
|
|
Refining
|
|
Logistics
|
|
Corporate
|
|
Eliminations
|
|
Consolidated
Total
|
|
Revenues
|
$
|
3,217,640
|
|
|
$
|
37,082
|
|
|
$
|
—
|
|
|
$
|
(37,082)
|
|
|
$
|
3,217,640
|
|
|
Depreciation and
amortization
|
44,366
|
|
|
1,649
|
|
|
2,118
|
|
|
—
|
|
|
48,133
|
|
|
Income (loss) from
operations
|
114,925
|
|
|
27,463
|
|
|
(50,121)
|
|
|
—
|
|
|
92,267
|
|
|
Interest expense,
net
|
4,110
|
|
|
7,180
|
|
|
16,736
|
|
|
—
|
|
|
28,026
|
|
|
Capital
expenditures
|
81,969
|
|
|
962
|
|
|
573
|
|
|
—
|
|
|
83,504
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended
September 30, 2016
|
|
Refining
|
|
Logistics
|
|
Corporate
|
|
Eliminations
|
|
Consolidated
Total
|
|
Revenues
|
$
|
11,164,571
|
|
|
$
|
125,641
|
|
|
$
|
—
|
|
|
$
|
(118,356)
|
|
|
$
|
11,171,856
|
|
|
Depreciation and
amortization
|
149,690
|
|
|
8,922
|
|
|
4,417
|
|
|
—
|
|
|
163,029
|
|
|
Income (loss) from
operations (16)
|
402,676
|
|
|
76,271
|
|
|
(118,270)
|
|
|
(1,621)
|
|
|
359,056
|
|
|
Interest expense,
net
|
2,827
|
|
|
22,559
|
|
|
86,608
|
|
|
—
|
|
|
111,994
|
|
|
Capital
expenditures (Note 14)
|
1,314,637
|
|
|
103,027
|
|
|
16,596
|
|
|
—
|
|
|
1,434,260
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended
September 30, 2015
|
|
Refining
|
|
Logistics
|
|
Corporate
|
|
Eliminations
|
|
Consolidated
Total
|
|
Revenues
|
$
|
9,763,440
|
|
|
$
|
104,796
|
|
|
$
|
—
|
|
|
$
|
(104,796)
|
|
|
$
|
9,763,440
|
|
|
Depreciation and
amortization
|
131,817
|
|
|
4,919
|
|
|
7,665
|
|
|
—
|
|
|
144,401
|
|
|
Income (loss) from
operations
|
591,005
|
|
|
71,914
|
|
|
(124,446)
|
|
|
—
|
|
|
538,473
|
|
|
Interest expense,
net
|
13,387
|
|
|
14,065
|
|
|
49,642
|
|
|
—
|
|
|
77,094
|
|
|
Capital
expenditures
|
332,544
|
|
|
1,182
|
|
|
2,183
|
|
|
—
|
|
|
335,909
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at
September 30, 2016
|
|
Refining
|
|
Logistics
|
|
Corporate
|
|
Eliminations
|
|
Consolidated
Total
|
|
Total assets (Note
17)
|
$
|
6,251,323
|
|
|
$
|
735,414
|
|
|
$
|
510,723
|
|
|
$
|
(31,746)
|
|
|
$
|
7,465,714
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at
December 31, 2015
|
|
Refining
|
|
Logistics
|
|
Corporate
|
|
Eliminations
|
|
Consolidated
Total
|
|
Total
assets
|
$
|
5,087,554
|
|
|
$
|
422,902
|
|
|
$
|
618,617
|
|
|
$
|
(23,949)
|
|
|
$
|
6,105,124
|
|
|
|
|
|
|
|
|
|
|
|
|
See Footnotes to
Earnings Release Tables
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PBF ENERGY INC.
AND SUBSIDIARIES
|
|
EARNINGS RELEASE
TABLES
|
|
MARKET INDICATORS
AND KEY OPERATING INFORMATION
|
|
(Unaudited,
amounts in thousands except as indicated)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
|
|
|
|
|
September
30,
|
|
September
30,
|
|
Market Indicators
(dollars per barrel) (Note 10)
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
Dated Brent
Crude
|
$
|
45.90
|
|
|
$
|
50.36
|
|
|
$
|
42.05
|
|
|
$
|
55.54
|
|
|
West Texas
Intermediate (WTI) crude oil
|
$
|
44.88
|
|
|
$
|
46.45
|
|
|
$
|
41.41
|
|
|
$
|
50.93
|
|
|
Light Louisiana Sweet
(LLS) crude oil
|
$
|
46.52
|
|
|
$
|
50.20
|
|
|
$
|
43.20
|
|
|
$
|
55.32
|
|
|
Alaska North Slope
(ANS) crude oil
|
$
|
44.65
|
|
|
$
|
51.52
|
|
|
$
|
41.58
|
|
|
$
|
55.39
|
|
|
Crack
Spreads:
|
|
|
|
|
|
|
|
|
Dated Brent (NYH)
2-1-1
|
$
|
12.94
|
|
|
$
|
17.60
|
|
|
$
|
13.18
|
|
|
$
|
17.75
|
|
|
WTI (Chicago)
4-3-1
|
$
|
13.64
|
|
|
$
|
24.03
|
|
|
$
|
13.07
|
|
|
$
|
20.09
|
|
|
LLS (Gulf Coast)
2-1-1
|
$
|
11.51
|
|
|
$
|
16.55
|
|
|
$
|
10.35
|
|
|
$
|
15.99
|
|
|
ANS (West Coast)
4-3-1
|
$
|
15.61
|
|
|
$
|
32.59
|
|
|
$
|
17.22
|
|
|
$
|
28.06
|
|
|
Crude Oil
Differentials:
|
|
|
|
|
|
|
|
|
Dated Brent (foreign)
less WTI
|
$
|
1.02
|
|
|
$
|
3.91
|
|
|
$
|
0.64
|
|
|
$
|
4.61
|
|
|
Dated Brent less Maya
(heavy, sour)
|
$
|
6.87
|
|
|
$
|
7.60
|
|
|
$
|
7.57
|
|
|
$
|
8.12
|
|
|
Dated Brent less WTS
(sour)
|
$
|
2.50
|
|
|
$
|
2.29
|
|
|
$
|
1.48
|
|
|
$
|
4.14
|
|
|
Dated Brent less ASCI
(sour)
|
$
|
4.14
|
|
|
$
|
5.08
|
|
|
$
|
4.02
|
|
|
$
|
4.43
|
|
|
WTI less WCS (heavy,
sour)
|
$
|
13.28
|
|
|
$
|
14.52
|
|
|
$
|
12.15
|
|
|
$
|
11.58
|
|
|
WTI less Bakken
(light, sweet)
|
$
|
1.41
|
|
|
$
|
3.26
|
|
|
$
|
1.13
|
|
|
$
|
3.49
|
|
|
WTI less Syncrude
(light, sweet)
|
$
|
(0.95)
|
|
|
$
|
1.02
|
|
|
$
|
(2.67)
|
|
|
$
|
(1.19)
|
|
|
WTI less ANS (light,
sweet)
|
$
|
0.23
|
|
|
$
|
(5.07)
|
|
|
$
|
(0.17)
|
|
|
$
|
(4.46)
|
|
|
Natural gas (dollars
per MMBTU)
|
$
|
2.79
|
|
|
$
|
2.73
|
|
|
$
|
2.35
|
|
|
$
|
2.76
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Key Operating
Information
|
|
|
|
|
|
|
|
|
Production (barrels
per day (bpd) in thousands)
|
799.1
|
|
|
473.2
|
|
|
717.6
|
|
|
473.4
|
|
|
Crude oil and
feedstocks throughput (bpd in thousands)
|
786.3
|
|
|
475.4
|
|
|
711.8
|
|
|
478.1
|
|
|
Total crude oil and
feedstocks throughput (millions of barrels)
|
72.3
|
|
|
43.7
|
|
|
195.1
|
|
|
130.5
|
|
|
Gross margin per
barrel of throughput
|
$
|
2.70
|
|
|
$
|
3.45
|
|
|
$
|
2.69
|
|
|
$
|
5.26
|
|
|
Gross refining
margin, excluding special items, per barrel of throughput (Note 4,
Note 11)
|
$
|
6.92
|
|
|
$
|
12.97
|
|
|
$
|
6.20
|
|
|
$
|
10.95
|
|
|
Refinery operating
expense per barrel of throughput (Note 12)
|
$
|
5.59
|
|
|
$
|
4.57
|
|
|
$
|
4.97
|
|
|
$
|
4.79
|
|
|
Crude and feedstocks
(% of total throughput) (Note 13)
|
|
|
|
|
|
|
|
|
Heavy
|
34
|
%
|
|
9
|
%
|
|
23
|
%
|
|
12
|
%
|
|
Medium
|
32
|
%
|
|
54
|
%
|
|
38
|
%
|
|
50
|
%
|
|
Light
|
23
|
%
|
|
26
|
%
|
|
28
|
%
|
|
27
|
%
|
|
Other feedstocks and
blends
|
11
|
%
|
|
11
|
%
|
|
11
|
%
|
|
11
|
%
|
|
|
Total
throughput
|
100
|
%
|
|
100
|
%
|
|
100
|
%
|
|
100
|
%
|
|
Yield (% of total
throughput):
|
|
|
|
|
|
|
|
|
Gasoline and gasoline
blendstocks
|
51
|
%
|
|
48
|
%
|
|
49
|
%
|
|
47
|
%
|
|
Distillates and
distillate blendstocks
|
31
|
%
|
|
34
|
%
|
|
31
|
%
|
|
35
|
%
|
|
Lubes
|
1
|
%
|
|
1
|
%
|
|
1
|
%
|
|
2
|
%
|
|
Chemicals
|
3
|
%
|
|
3
|
%
|
|
4
|
%
|
|
3
|
%
|
|
Other
|
14
|
%
|
|
14
|
%
|
|
15
|
%
|
|
13
|
%
|
|
|
Total
yield
|
100
|
%
|
|
100
|
%
|
|
100
|
%
|
|
100
|
%
|
|
|
|
|
See Footnotes to
Earnings Release Tables
|
|
PBF ENERGY INC.
AND SUBSIDIARIES
|
|
EARNINGS RELEASE
TABLES
|
|
SUPPLEMENTAL
OPERATING INFORMATION
|
|
(Unaudited,
amounts in thousands except as indicated)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
|
|
|
|
|
September
30,
|
|
September
30,
|
|
|
|
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
Supplemental
Operating Information - East Coast
(Delaware City and Paulsboro)
|
|
|
|
|
|
|
|
|
Production (bpd in
thousands)
|
313.1
|
|
|
297.5
|
|
|
322.9
|
|
|
318.5
|
|
|
Crude oil and
feedstocks throughput (bpd in thousands)
|
315.9
|
|
|
301.8
|
|
|
327.9
|
|
|
325.4
|
|
|
Total crude oil and
feedstocks throughput (millions of barrels)
|
29.1
|
|
|
27.8
|
|
|
89.8
|
|
|
88.8
|
|
|
Gross margin per
barrel of throughput
|
$
|
0.84
|
|
|
$
|
0.06
|
|
|
$
|
0.98
|
|
|
$
|
2.20
|
|
|
Gross refining
margin, excluding special items, per barrel of throughput (Note 4,
Note 11)
|
$
|
4.52
|
|
|
$
|
10.98
|
|
|
$
|
5.21
|
|
|
$
|
9.33
|
|
|
Refinery operating
expense per barrel of throughput (Note 12)
|
$
|
4.26
|
|
|
$
|
4.79
|
|
|
$
|
4.42
|
|
|
$
|
4.77
|
|
|
Crude and feedstocks
(% of total throughput) (Note 13):
|
|
|
|
|
|
|
|
|
Heavy
|
27
|
%
|
|
14
|
%
|
|
17
|
%
|
|
18
|
%
|
|
Medium
|
48
|
%
|
|
64
|
%
|
|
57
|
%
|
|
56
|
%
|
|
Light
|
12
|
%
|
|
6
|
%
|
|
12
|
%
|
|
11
|
%
|
|
Other feedstocks and
blends
|
13
|
%
|
|
16
|
%
|
|
14
|
%
|
|
15
|
%
|
|
|
Total
throughput
|
100
|
%
|
|
100
|
%
|
|
100
|
%
|
|
100
|
%
|
|
Yield (% of total
throughput):
|
|
|
|
|
|
|
|
|
Gasoline and gasoline
blendstocks
|
46
|
%
|
|
45
|
%
|
|
47
|
%
|
|
46
|
%
|
|
Distillates and
distillate blendstocks
|
33
|
%
|
|
33
|
%
|
|
30
|
%
|
|
34
|
%
|
|
Lubes
|
2
|
%
|
|
2
|
%
|
|
2
|
%
|
|
2
|
%
|
|
Chemicals
|
2
|
%
|
|
2
|
%
|
|
2
|
%
|
|
2
|
%
|
|
Other
|
16
|
%
|
|
17
|
%
|
|
18
|
%
|
|
15
|
%
|
|
|
Total
yield
|
99
|
%
|
|
99
|
%
|
|
99
|
%
|
|
99
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental
Operating Information - Mid-Continent
(Toledo)
|
|
|
|
|
|
|
|
|
Production (bpd in
thousands)
|
168.2
|
|
|
175.7
|
|
|
168.0
|
|
|
154.9
|
|
|
Crude oil and
feedstocks throughput (bpd in thousands)
|
165.3
|
|
|
173.6
|
|
|
165.7
|
|
|
152.7
|
|
|
Total crude oil and
feedstocks throughput (millions of barrels)
|
15.2
|
|
|
15.9
|
|
|
45.5
|
|
|
41.7
|
|
|
Gross margin per
barrel of throughput
|
$
|
3.69
|
|
|
$
|
7.09
|
|
|
$
|
2.84
|
|
|
$
|
9.50
|
|
|
Gross refining
margin, excluding special items, per barrel of throughput (Note 4,
Note 11)
|
$
|
6.67
|
|
|
$
|
16.44
|
|
|
$
|
5.85
|
|
|
$
|
14.43
|
|
|
Refinery operating
expense per barrel of throughput (Note 12)
|
$
|
4.29
|
|
|
$
|
4.19
|
|
|
$
|
4.39
|
|
|
$
|
4.85
|
|
|
Crude and feedstocks
(% of total throughput) (Note 13):
|
|
|
|
|
|
|
|
|
Medium
|
30
|
%
|
|
35
|
%
|
|
33
|
%
|
|
36
|
%
|
|
Light
|
67
|
%
|
|
63
|
%
|
|
64
|
%
|
|
62
|
%
|
|
Other feedstocks and
blends
|
3
|
%
|
|
2
|
%
|
|
3
|
%
|
|
2
|
%
|
|
|
Total
throughput
|
100
|
%
|
|
100
|
%
|
|
100
|
%
|
|
100
|
%
|
|
Yield (% of total
throughput):
|
|
|
|
|
|
|
|
|
Gasoline and gasoline
blendstocks
|
54
|
%
|
|
52
|
%
|
|
52
|
%
|
|
51
|
%
|
|
Distillates and
distillate blendstocks
|
34
|
%
|
|
36
|
%
|
|
35
|
%
|
|
36
|
%
|
|
Chemicals
|
5
|
%
|
|
5
|
%
|
|
5
|
%
|
|
5
|
%
|
|
Other
|
9
|
%
|
|
8
|
%
|
|
9
|
%
|
|
10
|
%
|
|
|
Total
yield
|
102
|
%
|
|
101
|
%
|
|
101
|
%
|
|
102
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See Footnotes to
Earnings Release Tables
|
|
PBF ENERGY INC.
AND SUBSIDIARIES
|
|
EARNINGS RELEASE
TABLES
|
|
SUPPLEMENTAL
OPERATING INFORMATION
|
|
(Unaudited,
amounts in thousands except as indicated)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
|
|
|
|
|
September
30,
|
|
September
30,
|
|
|
|
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
Supplemental
Operating Information - Gulf Coast
(Chalmette)
|
|
|
|
|
|
|
|
|
Production (bpd in
thousands)
|
172.9
|
|
|
N/A
|
|
178.0
|
|
|
N/A
|
|
Crude oil and
feedstocks throughput (bpd in thousands)
|
165.6
|
|
|
N/A
|
|
171.3
|
|
|
N/A
|
|
Total crude oil and
feedstocks throughput (millions of barrels)
|
15.2
|
|
|
N/A
|
|
46.9
|
|
|
N/A
|
|
Gross margin per
barrel of throughput
|
$
|
1.24
|
|
|
N/A
|
|
$
|
2.97
|
|
|
N/A
|
|
Gross refining
margin, excluding special items, per barrel of throughput (Note 4,
Note 11)
|
$
|
7.48
|
|
|
N/A
|
|
$
|
6.85
|
|
|
N/A
|
|
Refinery operating
expense per barrel of throughput (Note 12)
|
$
|
5.78
|
|
|
N/A
|
|
$
|
5.28
|
|
|
N/A
|
|
Crude and feedstocks
(% of total throughput) (Note 13):
|
|
|
|
|
|
|
|
|
Heavy
|
40
|
%
|
|
N/A
|
|
39
|
%
|
|
N/A
|
|
Medium
|
28
|
%
|
|
N/A
|
|
17
|
%
|
|
N/A
|
|
Light
|
16
|
%
|
|
N/A
|
|
29
|
%
|
|
N/A
|
|
Other feedstocks and
blends
|
16
|
%
|
|
N/A
|
|
15
|
%
|
|
N/A
|
|
|
Total
throughput
|
100
|
%
|
|
N/A
|
|
100
|
%
|
|
N/A
|
|
Yield (% of total
throughput):
|
|
|
|
|
|
|
|
|
Gasoline and gasoline
blendstocks
|
47
|
%
|
|
N/A
|
|
47
|
%
|
|
N/A
|
|
Distillates and
distillate blendstocks
|
29
|
%
|
|
N/A
|
|
31
|
%
|
|
N/A
|
|
Chemicals
|
6
|
%
|
|
N/A
|
|
6
|
%
|
|
N/A
|
|
Other
|
18
|
%
|
|
N/A
|
|
16
|
%
|
|
N/A
|
|
|
Total
yield
|
100
|
%
|
|
N/A
|
|
100
|
%
|
|
N/A
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental
Operating Information - West Coast
(Torrance)
|
|
|
|
|
|
|
|
|
Production (bpd in
thousands)
|
144.9
|
|
|
N/A
|
|
144.9
|
|
|
N/A
|
|
Crude oil and
feedstocks throughput (bpd in thousands)
|
139.5
|
|
|
N/A
|
|
139.6
|
|
|
N/A
|
|
Total crude oil and
feedstocks throughput (millions of barrels)
|
12.8
|
|
|
N/A
|
|
12.8
|
|
|
N/A
|
|
Gross margin per
barrel of throughput
|
$
|
3.86
|
|
|
N/A
|
|
$
|
3.86
|
|
|
N/A
|
|
Gross refining
margin, excluding special items, per barrel of throughput (Note 4,
Note 11)
|
$
|
11.96
|
|
|
N/A
|
|
$
|
11.96
|
|
|
N/A
|
|
Refinery operating
expense per barrel of throughput (Note 12)
|
$
|
8.68
|
|
|
N/A
|
|
$
|
8.68
|
|
|
N/A
|
|
Crude and feedstocks
(% of total throughput) (Note 13):
|
|
|
|
|
|
|
|
|
Heavy
|
85
|
%
|
|
N/A
|
|
85
|
%
|
|
N/A
|
|
Medium
|
2
|
%
|
|
N/A
|
|
2
|
%
|
|
N/A
|
|
Other feedstocks and
blends
|
13
|
%
|
|
N/A
|
|
13
|
%
|
|
N/A
|
|
|
Total
throughput
|
100
|
%
|
|
N/A
|
|
100
|
%
|
|
N/A
|
|
Yield (% of total
throughput):
|
|
|
|
|
|
|
|
|
Gasoline and gasoline
blendstocks
|
61
|
%
|
|
N/A
|
|
61
|
%
|
|
N/A
|
|
Distillates and
distillate blendstocks
|
25
|
%
|
|
N/A
|
|
25
|
%
|
|
N/A
|
|
Other
|
18
|
%
|
|
N/A
|
|
18
|
%
|
|
N/A
|
|
|
Total
yield
|
104
|
%
|
|
N/A
|
|
104
|
%
|
|
N/A
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
11)
|
|
(Unaudited, in
thousands, except per barrel amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
|
|
|
|
|
|
|
September 30,
2016
|
|
September 30,
2015
|
|
|
RECONCILIATION OF
GROSS MARGIN TO GROSS REFINING MARGIN
|
$
|
|
per barrel
of
throughput
|
|
$
|
|
per barrel of
throughput
|
|
|
Gross
margin
|
$
|
195,242
|
|
|
$
|
2.70
|
|
|
$
|
150,815
|
|
|
$
|
3.45
|
|
|
|
Less: Revenues of
PBFX
|
(48,433)
|
|
|
(0.67)
|
|
|
(37,082)
|
|
|
(0.85)
|
|
|
|
Add: Affiliate cost
of sales of PBFX
|
2,164
|
|
|
0.03
|
|
|
1,118
|
|
|
0.03
|
|
|
|
Add: Refinery
operating expenses
|
404,045
|
|
|
5.59
|
|
|
200,014
|
|
|
4.57
|
|
|
|
Add: Refinery
depreciation
|
51,337
|
|
|
0.71
|
|
|
44,366
|
|
|
1.01
|
|
|
|
Gross refining
margin
|
$
|
604,355
|
|
|
$
|
8.36
|
|
|
$
|
359,231
|
|
|
$
|
8.21
|
|
|
|
Special
Items (Note 4):
|
|
|
|
|
|
|
|
|
|
Add: Non-cash LCM
inventory adjustment (Note 5)
|
(103,990)
|
|
|
(1.44)
|
|
|
208,313
|
|
|
4.76
|
|
|
|
Gross refining
margin excluding special items (Note 4)
|
$
|
500,365
|
|
|
$
|
6.92
|
|
|
$
|
567,544
|
|
|
$
|
12.97
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months
Ended
|
|
Nine Months
Ended
|
|
|
|
|
|
|
|
|
September 30,
2016
|
|
September 30,
2015
|
|
|
RECONCILIATION OF
GROSS MARGIN TO GROSS REFINING MARGIN
|
$
|
|
per barrel of
throughput
|
|
$
|
|
per barrel of
throughput
|
|
|
Gross
margin
|
$
|
524,041
|
|
|
$
|
2.69
|
|
|
$
|
686,401
|
|
|
$
|
5.26
|
|
|
|
Less: Revenues
of PBFX
|
(125,641)
|
|
|
(0.64)
|
|
|
(101,413)
|
|
|
(0.78)
|
|
|
|
Add: Affiliate
cost of sales of PBFX
|
7,486
|
|
|
0.04
|
|
|
6,394
|
|
|
0.05
|
|
|
|
Add: Refinery
operating expenses
|
972,223
|
|
|
4.98
|
|
|
625,542
|
|
|
4.79
|
|
|
|
Add: Refinery
depreciation
|
151,473
|
|
|
0.78
|
|
|
132,093
|
|
|
1.01
|
|
|
|
Gross refining
margin
|
$
|
1,529,582
|
|
|
$
|
7.85
|
|
|
$
|
1,349,017
|
|
|
$
|
10.33
|
|
|
|
Special
Items (Note 4):
|
|
|
|
|
|
|
|
|
|
Add: Non-cash LCM
inventory adjustment (Note 5)
|
(320,833)
|
|
|
(1.65)
|
|
|
81,147
|
|
|
0.62
|
|
|
|
Gross refining
margin excluding special items (Note 4)
|
$
|
1,208,749
|
|
|
$
|
6.20
|
|
|
$
|
1,430,164
|
|
|
$
|
10.95
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 the company's results across the periods presented and
facilitates an understanding of the company's operating results.
The company also uses these measures to evaluate its 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 7 and 18.
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(2) Represents
the elimination of the noncontrolling interest associated with the
ownership by the members of PBF Energy Company LLC other than PBF
Energy Inc., as if such members had fully exchanged their Series A
Units for shares of PBF Energy's Class A common stock.
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(3) Represents an
adjustment to reflect the company's statutory corporate tax rate of
approximately 39.6% for the 2016 period and 40.2% for the 2015
period, respectively, applied to the net income attributable to the
noncontrolling interest for all periods presented. The
adjustment assumes the full exchange of existing PBF Energy Company
LLC Series A Units as described in footnote 2.
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(4) The Non-GAAP
measures presented include adjusted fully-converted net income
excluding special items, income from continuing operations
excluding special items, EBITDA excluding special items, and gross
refining margin excluding special items. The special items
for the periods presented relate to a lower of cost or market
adjustment (LCM) and changes in the tax receivable agreement
liability (TRA). LCM is a GAAP guideline related to inventory
valuation that requires 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 adjustment is recorded to
reflect the net change in the LCM inventory reserve between the
prior period and the current period. Changes in the TRA 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. 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 more 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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(5) During the
three months ended September 30, 2016, the Company recorded an
adjustment to value its inventories to the lower of cost or market
which resulted in a net pre-tax benefit of approximately $104.0
million reflecting the change in the lower of cost or market
inventory reserve from $900.5 million at June 30, 2016 to $796.5
million at September 30, 2016. During the nine months ended
September 30, 2016, the Company recorded an adjustment to value its
inventories to the lower of cost or market which resulted in a net
pre-tax benefit of approximately $320.8 million reflecting the
change in the lower of cost or market inventory reserve from
$1,117.3 million at December 31, 2015 to $796.5 million at
September 30, 2016.
During the three
months ended September 30, 2015, the Company recorded an adjustment
to value its inventories to the lower of cost or market which
resulted in a net pre-tax charge of approximately $208.3 million
reflecting the change in the lower of cost or market inventory
reserve from $562.9 million at June 30, 2015 to $771.3 million at
September 30, 2015. During the nine months ended September 30,
2015, the Company recorded an adjustment to value its inventories
to the lower of cost or market which resulted in a net pre-tax
charge of approximately $81.1 million reflecting the change in the
lower of cost or market inventory reserve from $690.1 million at
December 31, 2014 to $771.3 million at September 30,
2015.
The impact of these
LCM inventory adjustments are included in the Refining segment's
operating income, but are excluded from the operating results
presented in the table in order to make such information comparable
between periods. Income taxes related to the net LCM adjustment
were recalculated using the Company's statutory corporate tax rate
of approximately 39.6% for both the three and nine months ended
September 30, 2016 and 40.2% for both the three and nine months
ended September 30, 2015.
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(6) Represents
weighted-average diluted shares outstanding assuming the full
exchange of common stock equivalents, including options and
warrants for PBF LLC Series A 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). Common stock equivalents excludes the effects of
warrants and options to purchase 5,161,125 and 4,364,250 shares of
PBF Energy Class A common stock because they are anti-dilutive
for the three and nine months ended September 30, 2016,
respectively. Common stock equivalents excludes the effects of
warrants and options to purchase 1,789,500 and 2,867,000 shares of
PBF Energy Class A common stock because they are anti-dilutive
for the three and nine months ended September 30, 2015,
respectively.
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(7) Represents an
adjustment to weighted-average diluted shares to assume the full
exchange of existing PBF LLC Series A Units as described in
footnote 2 above if not included in the diluted weighted-average
shares outstanding as described in footnote 6 above.
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(8) 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. We
use these Non-GAAP financial measures as a supplement to our GAAP
results in order to provide a more complete understanding of the
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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(9) 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 September 30, 2016, 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 and operates logistics assets, currently
consisting of the Delaware City Rail Terminal, the Toledo Truck
Terminal, the DCR West Rack, the Toledo Storage Facility, the
Delaware City Products Pipeline and Truck Rack, the East Coast
Terminals, which were acquired in connection with PBFX's purchase
of 4 refined product terminals located in the greater Philadelphia
region from an affiliate of Plains All American Pipeline, L.P. for
total cash consideration of $100.0 million (the "PBFX Plains
Asset Purchase") completed in the second quarter of 2016, and the
Torrance Valley Pipeline, in which PBFX acquired a 50% equity
interest on August 31, 2016. Prior to PBFX's initial public
offering and subsequent acquisitions, PBFX's assets were operated
within the refining operations of PBF Energy's Delaware City,
Toledo, and Torrance refineries. Apart from the East Coast
Terminals, the assets did not generate third party or intra-entity
revenue, other than certain intra-entity revenue recognized by the
Delaware City Products Pipeline and Truck Rack, and were not
considered to be a separate reportable segment. All intercompany
transactions are eliminated in our consolidated financial
statements and are included in Eliminations, as
applicable.
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(10) As
reported by Platts.
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(11) Gross
refining margin and gross refining margin per barrel of throughput
are Non-GAAP measures because they exclude refinery operating
expenses, refinery 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
they provide useful information to investors because gross refining
margin per barrel is a better 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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(12) Represents
refinery operating expenses, excluding depreciation and
amortization, divided by total crude oil and feedstocks
throughput.
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(13) 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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(14) The
Refining segment includes capital expenditures of $2.7 million for
the working capital settlement related to the acquisition of the
Chalmette refinery that was finalized in the first quarter of 2016
and $971.9 million for the acquisition of the Torrance refinery in
the third quarter of 2016. The Logistics segment includes capital
expenditures of $98.3 million for the PBFX Plains Asset Purchase in
the second quarter of 2016.
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(15) The total debt
to capitalization ratio is calculated by dividing total debt by the
sum of total debt and total equity. This ratio is a measurement
which is presented in our annual and interim filings and management
believes this ratio is useful to investors in determining our
leverage. Net debt and the net debt to capitalization ratio are
Non-GAAP measures. Net debt is calculated by subtracting cash and
cash equivalents and marketable securities from total debt. We
believe these measurements are also useful to investors since we
have the ability to and may decide to use a portion of our cash and
cash equivalents to retire or pay down our debt. Marketable
securities included in net debt fully collateralize PBFX's Term
Loan. Additionally, as described in footnote 4 above, we have also
presented the total debt to capitalization and net debt to
capitalization ratios excluding the cumulative effects of special
items on equity.
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September
30,
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December
31,
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2016
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2015
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Total debt
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$
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2,369,625
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$
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1,840,355
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Total
equity
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2,279,360
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2,095,857
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Total
capitalization
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$
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4,648,985
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$
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3,936,212
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Total debt
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$
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2,369,625
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$
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1,840,355
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Total equity
excluding special items
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2,754,736
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2,763,118
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Total capitalization
excluding special items
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$
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5,124,361
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$
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4,603,473
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Total
equity
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$
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2,279,360
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$
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2,095,857
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Special Items
(Note 4)
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Add: Non-cash LCM inventory adjustment (Note 5)
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796,503
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1,117,336
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Add: Change in tax receivable agreement liability (Note
4)
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(9,457)
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(12,600)
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Less: Recomputed income taxes on special items (Note 5)
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(311,670)
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(437,475)
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Net impact of
special items to equity
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475,376
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667,261
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Total equity
excluding special items (Note 4)
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$
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2,754,736
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$
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2,763,118
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Total debt
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$
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2,369,625
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$
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1,840,355
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Less: Cash, cash equivalents and marketable securities
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685,393
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1,178,578
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Net Debt
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$
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1,684,232
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$
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661,777
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Total debt to
capitalization ratio
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51
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%
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47
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%
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Total debt to
capitalization ratio, excluding special items
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46
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%
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40
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%
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Net debt to
capitalization ratio
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42
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%
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24
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%
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Net debt to
capitalization ratio, excluding special items
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38
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%
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19
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%
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(16) 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. As TVPC was acquired by PBF
Holding in connection with the Torrance Acquisition on July 1,
2016, there was no impact on comparative 2015
disclosures.
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(17) 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. As the acquisition
of PBFX's 50% interest in TVPC was completed in the third quarter
of 2016, there was no impact on comparative 2015
disclosures.
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(18) The Company
recorded pre-tax adjustments related to the change in the tax
receivable agreement liability of $3.1 million for the three and
nine months ended September 30, 2016, respectively. The Company
recorded pre-tax adjustments related to the change in the tax
receivable agreement liability of $2.2 million for the three and
nine months ended September 30, 2015, respectively. Income taxes
related to the change in the tax receivable agreement liability
were recalculated using the Company's statutory corporate tax rate
of approximately 39.6% and 40.2%, respectively, for the 2016 and
2015 periods presented.
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SOURCE PBF Energy Inc.