PARSIPPANY, N.J., Aug. 3,
2017 /PRNewswire/ -- PBF Energy Inc. (NYSE: PBF) today
reported second quarter 2017 loss from operations of $111.1 million as compared to income from
operations of $234.8 million for the
second quarter of 2016. Excluding special items, second quarter
2017 income from operations was $39.9
million as compared to income from operations of
$77.0 million for the second quarter
of 2016. Special items in the second quarter 2017 results include a
net, non-cash, after-tax loss of $91.6
million, or $0.81 per share,
lower-of-cost-or-market ("LCM") inventory adjustment which
decreased operating income and an after-tax charge of $15.4 million, or $0.14 per share, as a result of debt
extinguishment costs incurred from the retirement of PBF Holding
Company LLC's 8.25% senior secured notes which were redeemed during
the quarter.
The company reported a second quarter 2017 net loss of
$104.2 million, and a net loss
attributable to PBF Energy Inc. of $109.7
million or $1.01 per share.
This compares to net income of $120.6
million, and net income attributable to PBF Energy Inc. of
$103.5 million or $1.06 per share for the second quarter 2016.
Adjusted fully-converted net loss for the second quarter 2017,
excluding special items, was $6.9
million, or $0.06 per share on
a fully-exchanged, fully-diluted basis, as described below,
compared to an adjusted fully-converted net income of $13.9 million, or $0.14 per share, for the second quarter 2016. 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 44.1% of
the limited partner interests as of quarter-end.
Tom Nimbley, PBF Energy's
Chairman and CEO, said, "Our main focus during the second quarter
was to operate our assets safely and reliably and to complete the
extensive turnarounds at our Torrance and Delaware City refineries.
I am pleased to report that both turnarounds are complete and the
refineries are operating well. When combined with the crude unit
turnaround at Chalmette during the first quarter, we have
successfully executed our major maintenance goals for 2017. Our
second quarter results include the impact of this turnaround work
and reflect the ongoing pressures of narrow crude differentials and
headwinds from the flawed Renewable Fuels Standard." Mr. Nimbley
continued, "Going into the second half of the year, we have five
operating refineries, no significant turnaround activity and a
refining environment supported by strong domestic and international
demand. We are looking forward to the second half of 2017 and
demonstrating the capabilities of our refining system."
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 August 31, 2017, to holders
of record as of August 15, 2017.
Outlook
For the third quarter 2017, we expect East
Coast total throughput to average 320,000 to 340,000 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 185,000 to 195,000 barrels per day and West Coast total
throughput is expected to average 150,000 to 160,000 barrels per
day.
For the full-year 2017, we expect East Coast total throughput to
average 315,000 to 335,000 barrels per day; Mid-Continent total
throughput is expected to average 140,000 to 150,000 barrels per
day; Gulf Coast total throughput is expected to average 170,000 to
180,000 barrels per day and West Coast total throughput is expected
to average 130,000 to 140,000 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 (Loss),
Adjusted Fully-Converted Net Income (Loss) excluding special items,
Adjusted Fully-Converted Net Income (Loss) per fully-exchanged,
fully-diluted share, 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,
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 Thursday,
August 3, 2017, at 8:30 a.m.
ET. The webcast is available through 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:
PBFQ217. The audio replay will be available two hours after
the end of the call through August 17,
2017, by dialing (800) 839-2475 or (402) 220-7220.
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 44.1% 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
|
|
Six Months
Ended
|
|
|
|
|
June
30,
|
|
June
30,
|
|
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
Revenues
|
$
|
5,017,225
|
|
|
$
|
3,858,467
|
|
|
$
|
9,771,698
|
|
|
$
|
6,658,652
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs and
expenses:
|
|
|
|
|
|
|
|
|
Cost of products and
other
|
4,605,693
|
|
|
3,249,444
|
|
|
8,802,460
|
|
|
5,661,539
|
|
|
Operating expenses
(excluding depreciation of $62,683, $49,682, $121,852 and $103,918
for the periods presented, respectively)
|
412,859
|
|
|
276,598
|
|
|
864,226
|
|
|
576,597
|
|
|
General and
administrative expenses
|
41,090
|
|
|
43,373
|
|
|
84,920
|
|
|
80,955
|
|
|
Loss on sale of
assets
|
29
|
|
|
3,222
|
|
|
912
|
|
|
3,222
|
|
|
Depreciation and
amortization expense
|
68,703
|
|
|
51,060
|
|
|
129,635
|
|
|
106,993
|
|
|
|
|
|
5,128,374
|
|
|
3,623,697
|
|
|
9,882,153
|
|
|
6,429,306
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from
operations
|
(111,149)
|
|
|
234,770
|
|
|
(110,455)
|
|
|
229,346
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income
(expenses):
|
|
|
|
|
|
|
|
|
Change in fair value
of catalyst leases
|
1,104
|
|
|
(1,748)
|
|
|
(1,484)
|
|
|
(4,633)
|
|
|
Debt extinguishment
costs
|
(25,451)
|
|
|
—
|
|
|
(25,451)
|
|
|
—
|
|
|
Interest expense,
net
|
(40,698)
|
|
|
(35,940)
|
|
|
(77,881)
|
|
|
(73,467)
|
|
|
Income (loss)
before income taxes
|
(176,194)
|
|
|
197,082
|
|
|
(215,271)
|
|
|
151,246
|
|
|
Income tax
(benefit) expense
|
(72,043)
|
|
|
76,434
|
|
|
(91,090)
|
|
|
53,934
|
|
|
Net income
(loss)
|
(104,151)
|
|
|
120,648
|
|
|
(124,181)
|
|
|
97,312
|
|
|
Less: net income
attributable to noncontrolling interests
|
5,512
|
|
|
17,118
|
|
|
16,559
|
|
|
23,170
|
|
|
Net income (loss)
attributable to PBF Energy Inc. stockholders
|
$
|
(109,663)
|
|
|
$
|
103,530
|
|
|
$
|
(140,740)
|
|
|
$
|
74,142
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
available to Class A common stock per share:
|
|
|
|
|
|
|
|
|
Basic
|
$
|
(1.01)
|
|
|
$
|
1.06
|
|
|
$
|
(1.30)
|
|
|
$
|
0.76
|
|
|
Diluted
|
$
|
(1.01)
|
|
|
$
|
1.06
|
|
|
$
|
(1.30)
|
|
|
$
|
0.76
|
|
|
Weighted-average
shares outstanding-basic
|
108,779,992
|
|
|
97,836,366
|
|
|
108,770,237
|
|
|
97,822,875
|
|
|
Weighted-average
shares outstanding-diluted
|
108,779,992
|
|
|
103,278,622
|
|
|
108,770,237
|
|
|
103,364,478
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends per common
share
|
$
|
0.30
|
|
|
$
|
0.30
|
|
|
$
|
0.60
|
|
|
$
|
0.60
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
fully-converted net income (loss) and adjusted fully-converted net
income (loss) per fully exchanged, fully diluted shares outstanding
(Note 1):
|
|
|
|
|
|
|
|
|
Adjusted
fully-converted net income (loss)
|
$
|
(113,937)
|
|
|
$
|
109,207
|
|
|
$
|
(146,409)
|
|
|
$
|
78,345
|
|
|
Adjusted
fully-converted net income (loss) per fully exchanged, fully
diluted share
|
$
|
(1.01)
|
|
|
$
|
1.06
|
|
|
$
|
(1.30)
|
|
|
$
|
0.76
|
|
|
Adjusted
fully-converted shares outstanding - diluted
|
112,608,863
|
|
|
103,278,622
|
|
|
112,606,236
|
|
|
103,364,478
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
Six Months
Ended
|
|
RECONCILIATION OF
NET INCOME (LOSS) TO
|
June
30,
|
|
June
30,
|
|
ADJUSTED
FULLY-CONVERTED NET INCOME (LOSS) (Note 1)
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
Net income (loss)
attributable to PBF Energy Inc. stockholders
|
$
|
(109,663)
|
|
|
$
|
103,530
|
|
|
$
|
(140,740)
|
|
|
$
|
74,142
|
|
|
Income (loss)
allocated to participating securities
|
(269)
|
|
|
—
|
|
|
(539)
|
|
|
—
|
|
|
Income (loss)
available to PBF Energy Inc. stockholders - basic
|
(109,932)
|
|
|
103,530
|
|
|
(141,279)
|
|
|
74,142
|
|
|
Add:
Net income (loss)
attributable to noncontrolling interest (Note 2)
|
(6,604)
|
|
|
9,399
|
|
|
(8,460)
|
|
|
6,958
|
|
|
Less: Income tax benefit (expense) (Note 3)
|
2,599
|
|
|
(3,722)
|
|
|
3,330
|
|
|
(2,755)
|
|
|
Adjusted
fully-converted net income (loss)
|
$
|
(113,937)
|
|
|
$
|
109,207
|
|
|
$
|
(146,409)
|
|
|
$
|
78,345
|
|
|
Special Items (Note
4):
|
|
|
|
|
|
|
|
|
Add: Non-cash LCM inventory adjustment (Note 5)
|
151,095
|
|
|
(157,780)
|
|
|
167,134
|
|
|
(216,843)
|
|
|
Add: Debt extinguishment costs (Note 5)
|
25,451
|
|
|
—
|
|
|
25,451
|
|
|
—
|
|
|
Add: Recomputed income taxes on special items (Note
5)
|
(69,489)
|
|
|
62,516
|
|
|
(75,801)
|
|
|
85,870
|
|
|
Adjusted
fully-converted net income (loss) excluding special items (Note
4)
|
$
|
(6,880)
|
|
|
$
|
13,943
|
|
|
$
|
(29,625)
|
|
|
$
|
(52,628)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average
shares outstanding of PBF Energy Inc.
|
108,779,992
|
|
|
97,836,366
|
|
|
108,770,237
|
|
|
97,822,875
|
|
|
Conversion of PBF LLC
Series A Units (Note 6)
|
3,828,871
|
|
|
4,947,813
|
|
|
3,835,999
|
|
|
4,952,115
|
|
|
Common stock
equivalents (Note 7)
|
—
|
|
|
494,443
|
|
|
—
|
|
|
589,488
|
|
|
Adjusted
fully-converted shares outstanding - diluted
|
112,608,863
|
|
|
103,278,622
|
|
|
112,606,236
|
|
|
103,364,478
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
fully-converted net income (loss) (per fully exchanged, fully
diluted shares outstanding)
|
$
|
(1.01)
|
|
|
$
|
1.06
|
|
|
$
|
(1.30)
|
|
|
$
|
0.76
|
|
|
|
Adjusted
fully-converted net income (loss) excluding special items (per
fully exchanged, fully diluted shares outstanding) (Note
4)
|
$
|
(0.06)
|
|
|
$
|
0.14
|
|
|
$
|
(0.26)
|
|
|
$
|
(0.51)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
RECONCILIATION OF
INCOME (LOSS) FROM OPERATIONS
|
June
30,
|
|
June
30,
|
|
TO INCOME (LOSS)
FROM OPERATIONS EXCLUDING SPECIAL ITEMS
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
Income (loss) from
operations
|
$
|
(111,149)
|
|
|
$
|
234,770
|
|
|
$
|
(110,455)
|
|
|
$
|
229,346
|
|
|
Special Items (Note
4):
|
|
|
|
|
|
|
|
|
Add: Non-cash LCM inventory adjustment (Note 5)
|
151,095
|
|
|
(157,780)
|
|
|
167,134
|
|
|
(216,843)
|
|
|
Income (loss) from
operations excluding special items (Note 4)
|
$
|
39,946
|
|
|
$
|
76,990
|
|
|
$
|
56,679
|
|
|
$
|
12,503
|
|
|
|
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
|
|
Six Months
Ended
|
|
|
June
30,
|
|
June
30,
|
|
RECONCILIATION OF
NET INCOME (LOSS) TO EBITDA
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
Net income
(loss)
|
|
$
|
(104,151)
|
|
|
$
|
120,648
|
|
|
$
|
(124,181)
|
|
|
$
|
97,312
|
|
|
Add: Depreciation and amortization expense
|
|
68,703
|
|
|
51,060
|
|
|
129,635
|
|
|
106,993
|
|
|
Add: Interest expense, net
|
|
40,698
|
|
|
35,940
|
|
|
77,881
|
|
|
73,467
|
|
|
Add: Income tax (benefit) expense
|
|
(72,043)
|
|
|
76,434
|
|
|
(91,090)
|
|
|
53,934
|
|
|
EBITDA
|
|
|
$
|
(66,793)
|
|
|
$
|
284,082
|
|
|
$
|
(7,755)
|
|
|
$
|
331,706
|
|
|
Special Items (Note
4):
|
|
|
|
|
|
|
|
|
|
Add: Non-cash LCM inventory adjustment (Note 5)
|
|
151,095
|
|
|
(157,780)
|
|
|
167,134
|
|
|
(216,843)
|
|
|
Add: Debt extinguishment costs (Note 5)
|
|
25,451
|
|
|
—
|
|
|
25,451
|
|
|
—
|
|
|
EBITDA excluding
special items (Note 4)
|
|
$
|
109,753
|
|
|
$
|
126,302
|
|
|
$
|
184,830
|
|
|
$
|
114,863
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RECONCILIATION OF
EBITDA TO ADJUSTED EBITDA
|
|
|
|
|
|
|
|
|
|
EBITDA
|
|
$
|
(66,793)
|
|
|
$
|
284,082
|
|
|
$
|
(7,755)
|
|
|
$
|
331,706
|
|
|
Add: Stock based compensation
|
|
7,817
|
|
|
9,359
|
|
|
13,842
|
|
|
12,709
|
|
|
Add: Non-cash change in fair value of catalyst
leases
|
|
(1,104)
|
|
|
1,748
|
|
|
1,484
|
|
|
4,633
|
|
|
Add: Non-cash LCM inventory adjustment (Note 5)
|
|
151,095
|
|
|
(157,780)
|
|
|
167,134
|
|
|
(216,843)
|
|
|
Add: Debt extinguishment costs (Note 5)
|
|
25,451
|
|
|
—
|
|
|
25,451
|
|
|
—
|
|
|
Adjusted
EBITDA
|
|
|
$
|
116,466
|
|
|
$
|
137,409
|
|
|
$
|
200,156
|
|
|
$
|
132,205
|
|
|
|
See Footnotes to
Earnings Release Tables
|
|
PBF ENERGY INC.
AND SUBSIDIARIES
|
|
EARNINGS RELEASE
TABLES
|
|
CONDENSED
CONSOLIDATED BALANCE SHEET DATA
|
|
(Unaudited, in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June
30,
|
|
December
31,
|
|
|
|
|
|
2017
|
|
2016
|
|
Balance Sheet
Data:
|
|
|
|
|
|
Cash, cash
equivalents and marketable securities
|
$
|
173,031
|
|
|
$
|
786,298
|
|
|
Inventories
|
1,875,164
|
|
|
1,863,560
|
|
|
Total
assets
|
7,481,220
|
|
|
7,621,927
|
|
|
Total debt
|
2,159,547
|
|
|
2,148,234
|
|
|
Total
equity
|
2,368,993
|
|
|
2,570,684
|
|
|
|
|
|
|
|
Total equity
excluding special items (Note 4, 16)
|
$
|
2,827,468
|
|
|
$
|
2,912,375
|
|
|
|
|
|
|
|
|
|
|
Total debt to
capitalization ratio (Note 16)
|
48
|
%
|
|
46
|
%
|
|
Total debt to
capitalization ratio, excluding special items (Note 16)
|
43
|
%
|
|
42
|
%
|
|
Net debt to
capitalization ratio (Note 16)
|
46
|
%
|
|
35
|
%
|
|
Net debt to
capitalization ratio, excluding special items (Note 16)
|
41
|
%
|
|
32
|
%
|
|
|
|
|
|
|
SUMMARIZED
STATEMENT OF CASH FLOW DATA
|
|
(Unaudited, in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended
June 30,
|
|
|
|
|
|
2017
|
|
2016
|
|
Cash flows (used in)
provided by operations
|
$
|
(34,665)
|
|
|
$
|
216,134
|
|
|
Cash flows used in
investing activities
|
(428,641)
|
|
|
(235,757)
|
|
|
Cash flows (used in)
provided by financing activities
|
(109,937)
|
|
|
488,238
|
|
|
Net (decrease)
increase in cash and cash equivalents
|
(573,243)
|
|
|
468,615
|
|
|
Cash and cash
equivalents, beginning of period
|
746,274
|
|
|
944,320
|
|
|
Cash and cash
equivalents, end of period
|
$
|
173,031
|
|
|
$
|
1,412,935
|
|
|
Marketable
securities
|
—
|
|
|
136,144
|
|
|
Net cash, cash
equivalents and marketable securities
|
$
|
173,031
|
|
|
$
|
1,549,079
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
June 30, 2017
|
|
Refining
|
|
Logistics
|
|
Corporate
|
|
Eliminations
|
|
Consolidated
Total
|
|
Revenues
|
$
|
5,013,251
|
|
|
$
|
62,329
|
|
|
$
|
—
|
|
|
$
|
(58,355)
|
|
|
$
|
5,017,225
|
|
|
Depreciation and
amortization expense
|
56,973
|
|
|
5,710
|
|
|
6,020
|
|
|
—
|
|
|
68,703
|
|
|
Income (loss) from
operations (16)
|
(101,333)
|
|
|
35,017
|
|
|
(41,013)
|
|
|
(3,820)
|
|
|
(111,149)
|
|
|
Interest expense,
net
|
1,335
|
|
|
7,886
|
|
|
31,477
|
|
|
—
|
|
|
40,698
|
|
|
Capital
expenditures (Note 14)
|
242,655
|
|
|
36,918
|
|
|
148
|
|
|
—
|
|
|
279,721
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
June 30, 2016
|
|
Refining
|
|
Logistics
|
|
Corporate
|
|
Eliminations
|
|
Consolidated
Total
|
|
Revenues
|
$
|
3,855,773
|
|
|
$
|
40,659
|
|
|
$
|
—
|
|
|
$
|
(37,965)
|
|
|
$
|
3,858,467
|
|
|
Depreciation and
amortization expense
|
47,333
|
|
|
2,349
|
|
|
1,378
|
|
|
—
|
|
|
51,060
|
|
|
Income (loss) from
operations
|
249,102
|
|
|
23,510
|
|
|
(37,842)
|
|
|
—
|
|
|
234,770
|
|
|
Interest expense,
net
|
1,142
|
|
|
7,634
|
|
|
27,164
|
|
|
—
|
|
|
35,940
|
|
|
Capital
expenditures
|
87,756
|
|
|
100,687
|
|
|
6,559
|
|
|
—
|
|
|
195,002
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended
June 30, 2017
|
|
Refining
|
|
Logistics
|
|
Corporate
|
|
Eliminations
|
|
Consolidated
Total
|
|
Revenues
|
$
|
9,763,449
|
|
|
$
|
122,806
|
|
|
$
|
—
|
|
|
$
|
(114,557)
|
|
|
$
|
9,771,698
|
|
|
Depreciation and
amortization expense
|
110,790
|
|
|
11,062
|
|
|
7,783
|
|
|
—
|
|
|
129,635
|
|
|
Income (loss) from
operations (Note 17)
|
(90,803)
|
|
|
71,058
|
|
|
(83,291)
|
|
|
(7,419)
|
|
|
(110,455)
|
|
|
Interest expense,
net
|
2,253
|
|
|
15,870
|
|
|
59,758
|
|
|
—
|
|
|
77,881
|
|
|
Capital
expenditures (Note 14)
|
409,871
|
|
|
56,385
|
|
|
2,409
|
|
|
—
|
|
|
468,665
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended
June 30, 2016
|
|
Refining
|
|
Logistics
|
|
Corporate
|
|
Eliminations
|
|
Consolidated
Total
|
|
Revenues
|
$
|
6,655,958
|
|
|
$
|
77,208
|
|
|
$
|
—
|
|
|
$
|
(74,514)
|
|
|
$
|
6,658,652
|
|
|
Depreciation and
amortization expense
|
99,722
|
|
|
4,196
|
|
|
3,075
|
|
|
—
|
|
|
106,993
|
|
|
Income (loss) from
operations
|
254,348
|
|
|
49,554
|
|
|
(74,556)
|
|
|
—
|
|
|
229,346
|
|
|
Interest expense,
net
|
2,114
|
|
|
14,863
|
|
|
56,490
|
|
|
—
|
|
|
73,467
|
|
|
Capital
expenditures (Note 15)
|
226,669
|
|
|
101,813
|
|
|
12,259
|
|
|
—
|
|
|
340,741
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at June
30, 2017
|
|
Refining
|
|
Logistics
|
|
Corporate
|
|
Eliminations
|
|
Consolidated
Total
|
|
Total Assets (Note
18)
|
$
|
6,232,343
|
|
|
$
|
751,155
|
|
|
$
|
529,131
|
|
|
$
|
(31,409)
|
|
|
$
|
7,481,220
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at
December 31, 2016
|
|
Refining
|
|
Logistics
|
|
Corporate
|
|
Eliminations
|
|
Consolidated
Total
|
|
Total Assets (Note
18)
|
$
|
6,419,950
|
|
|
$
|
756,861
|
|
|
$
|
482,979
|
|
|
$
|
(37,863)
|
|
|
$
|
7,621,927
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
Six Months
Ended
|
|
|
|
|
|
|
June
30,
|
|
June
30,
|
|
Market Indicators
(dollars per barrel) (Note 10)
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
Dated Brent
Crude
|
$
|
49.69
|
|
|
$
|
45.65
|
|
|
$
|
51.61
|
|
|
$
|
40.08
|
|
|
West Texas
Intermediate (WTI) crude oil
|
$
|
48.11
|
|
|
$
|
45.53
|
|
|
$
|
49.89
|
|
|
$
|
39.64
|
|
|
Light Louisiana Sweet
(LLS) crude oil
|
$
|
50.17
|
|
|
$
|
47.39
|
|
|
$
|
51.77
|
|
|
$
|
41.51
|
|
|
Alaska North Slope
(ANS) crude oil
|
$
|
50.61
|
|
|
$
|
45.74
|
|
|
$
|
52.20
|
|
|
$
|
40.00
|
|
|
Crack
Spreads:
|
|
|
|
|
|
|
|
|
Dated Brent (NYH)
2-1-1
|
$
|
14.81
|
|
|
$
|
15.32
|
|
|
$
|
13.21
|
|
|
$
|
13.30
|
|
|
WTI (Chicago)
4-3-1
|
$
|
14.09
|
|
|
$
|
16.51
|
|
|
$
|
12.65
|
|
|
$
|
12.77
|
|
|
LLS (Gulf Coast)
2-1-1
|
$
|
12.56
|
|
|
$
|
10.76
|
|
|
$
|
12.30
|
|
|
$
|
9.76
|
|
|
ANS (West Coast)
4-3-1
|
$
|
19.16
|
|
|
$
|
18.58
|
|
|
$
|
17.85
|
|
|
$
|
18.04
|
|
|
Crude Oil
Differentials:
|
|
|
|
|
|
|
|
|
Dated Brent (foreign)
less WTI
|
$
|
1.58
|
|
|
$
|
0.11
|
|
|
$
|
1.73
|
|
|
$
|
0.44
|
|
|
Dated Brent less Maya
(heavy, sour)
|
$
|
8.00
|
|
|
$
|
7.83
|
|
|
$
|
7.34
|
|
|
$
|
7.94
|
|
|
Dated Brent less WTS
(sour)
|
$
|
2.65
|
|
|
$
|
0.96
|
|
|
$
|
2.98
|
|
|
$
|
0.95
|
|
|
Dated Brent less ASCI
(sour)
|
$
|
2.85
|
|
|
$
|
3.67
|
|
|
$
|
3.46
|
|
|
$
|
3.96
|
|
|
WTI less WCS (heavy,
sour)
|
$
|
9.56
|
|
|
$
|
11.75
|
|
|
$
|
11.23
|
|
|
$
|
11.55
|
|
|
WTI less Bakken
(light, sweet)
|
$
|
0.30
|
|
|
$
|
0.43
|
|
|
$
|
0.61
|
|
|
$
|
0.98
|
|
|
WTI less Syncrude
(light, sweet)
|
$
|
(1.35)
|
|
|
$
|
(2.72)
|
|
|
$
|
(1.81)
|
|
|
$
|
(3.56)
|
|
|
WTI less LLS (light,
sweet)
|
$
|
(2.06)
|
|
|
$
|
(1.85)
|
|
|
$
|
(1.88)
|
|
|
$
|
(1.87)
|
|
|
WTI less ANS (light,
sweet)
|
$
|
(2.50)
|
|
|
$
|
(0.21)
|
|
|
$
|
(2.31)
|
|
|
$
|
(0.37)
|
|
|
Natural gas (dollars
per MMBTU)
|
$
|
3.14
|
|
|
$
|
2.25
|
|
|
$
|
3.10
|
|
|
$
|
2.11
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Key Operating
Information
|
|
|
|
|
|
|
|
|
Production (barrels
per day ("bpd") in thousands)
|
764.2
|
|
|
702.7
|
|
|
748.8
|
|
|
678.0
|
|
|
Crude oil and
feedstocks throughput (bpd in thousands)
|
769.2
|
|
|
698.1
|
|
|
753.7
|
|
|
674.0
|
|
|
Total crude oil and
feedstocks throughput (millions of barrels)
|
70.0
|
|
|
63.5
|
|
|
136.4
|
|
|
122.7
|
|
|
Gross margin per
barrel of throughput
|
$
|
(0.62)
|
|
|
$
|
4.56
|
|
|
$
|
0.17
|
|
|
$
|
2.68
|
|
|
Gross refining
margin, excluding special items, per barrel of throughput (Note 4,
Note 11)
|
$
|
7.17
|
|
|
$
|
6.50
|
|
|
$
|
7.45
|
|
|
$
|
5.77
|
|
|
Refinery operating
expenses, excluding depreciation, per barrel of throughput (Note
12)
|
$
|
5.69
|
|
|
$
|
4.27
|
|
|
$
|
6.12
|
|
|
$
|
4.63
|
|
|
Crude and feedstocks
(% of total throughput) (Note 13)
|
|
|
|
|
|
|
|
|
Heavy
crude
|
30
|
%
|
|
18
|
%
|
|
35
|
%
|
|
16
|
%
|
|
Medium
crude
|
31
|
%
|
|
44
|
%
|
|
30
|
%
|
|
47
|
%
|
|
Light
crude
|
23
|
%
|
|
27
|
%
|
|
20
|
%
|
|
25
|
%
|
|
Other feedstocks and
blends
|
16
|
%
|
|
11
|
%
|
|
15
|
%
|
|
12
|
%
|
|
|
Total
throughput
|
100
|
%
|
|
100
|
%
|
|
100
|
%
|
|
100
|
%
|
|
Yield (% of total
throughput):
|
|
|
|
|
|
|
|
|
Gasoline and gasoline
blendstocks
|
50
|
%
|
|
47
|
%
|
|
51
|
%
|
|
48
|
%
|
|
Distillates and
distillate blendstocks
|
30
|
%
|
|
32
|
%
|
|
30
|
%
|
|
31
|
%
|
|
Lubes
|
1
|
%
|
|
1
|
%
|
|
1
|
%
|
|
1
|
%
|
|
Chemicals
|
2
|
%
|
|
4
|
%
|
|
2
|
%
|
|
4
|
%
|
|
Other
|
16
|
%
|
|
16
|
%
|
|
16
|
%
|
|
16
|
%
|
|
|
Total
yield
|
99
|
%
|
|
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
|
|
Six Months
Ended
|
|
|
|
|
|
|
June
30,
|
|
June
30,
|
|
|
|
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
Supplemental
Operating Information - East Coast (Delaware City and
Paulsboro)
|
|
|
|
|
|
|
|
|
Production (bpd in
thousands)
|
321.4
|
|
|
347.3
|
|
|
318.6
|
|
|
328.5
|
|
|
Crude oil and
feedstocks throughput (bpd in thousands)
|
326.1
|
|
|
351.7
|
|
|
323.2
|
|
|
333.9
|
|
|
Total crude oil and
feedstocks throughput (millions of barrels)
|
29.7
|
|
|
32.0
|
|
|
58.5
|
|
|
60.8
|
|
|
Gross margin per
barrel of throughput
|
$
|
(2.60)
|
|
|
$
|
3.95
|
|
|
$
|
(1.36)
|
|
|
$
|
1.14
|
|
|
Gross refining
margin, excluding special items, per barrel of throughput (Note 4,
Note 11)
|
$
|
4.98
|
|
|
$
|
6.68
|
|
|
$
|
5.46
|
|
|
$
|
5.54
|
|
|
Refinery operating
expense, excluding depreciation, per barrel of throughput (Note
12)
|
$
|
4.54
|
|
|
$
|
3.90
|
|
|
$
|
4.85
|
|
|
$
|
4.50
|
|
|
Crude and feedstocks
(% of total throughput) (Note 13):
|
|
|
|
|
|
|
|
|
Heavy
crude
|
31
|
%
|
|
17
|
%
|
|
34
|
%
|
|
13
|
%
|
|
Medium
crude
|
40
|
%
|
|
56
|
%
|
|
38
|
%
|
|
61
|
%
|
|
Light
crude
|
12
|
%
|
|
12
|
%
|
|
11
|
%
|
|
11
|
%
|
|
Other feedstocks and
blends
|
17
|
%
|
|
15
|
%
|
|
17
|
%
|
|
15
|
%
|
|
|
Total
throughput
|
100
|
%
|
|
100
|
%
|
|
100
|
%
|
|
100
|
%
|
|
Yield (% of total
throughput):
|
|
|
|
|
|
|
|
|
Gasoline and gasoline
blendstocks
|
43
|
%
|
|
45
|
%
|
|
45
|
%
|
|
46
|
%
|
|
Distillates and
distillate blendstocks
|
33
|
%
|
|
31
|
%
|
|
31
|
%
|
|
29
|
%
|
|
Lubes
|
2
|
%
|
|
2
|
%
|
|
2
|
%
|
|
2
|
%
|
|
Chemicals
|
1
|
%
|
|
2
|
%
|
|
1
|
%
|
|
2
|
%
|
|
Other
|
20
|
%
|
|
18
|
%
|
|
20
|
%
|
|
19
|
%
|
|
|
Total
yield
|
99
|
%
|
|
98
|
%
|
|
99
|
%
|
|
98
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental
Operating Information - Mid-Continent (Toledo)
|
|
|
|
|
|
|
|
|
Production (bpd in
thousands)
|
158.2
|
|
|
176.0
|
|
|
142.2
|
|
|
168.0
|
|
|
Crude oil and
feedstocks throughput (bpd in thousands)
|
154.6
|
|
|
174.2
|
|
|
139.3
|
|
|
165.9
|
|
|
Total crude oil and
feedstocks throughput (millions of barrels)
|
14.1
|
|
|
15.8
|
|
|
25.2
|
|
|
30.2
|
|
|
Gross margin per
barrel of throughput
|
$
|
(0.19)
|
|
|
$
|
4.31
|
|
|
$
|
(0.85)
|
|
|
$
|
2.41
|
|
|
Gross refining
margin, excluding special items, per barrel of throughput (Note 4,
Note 11)
|
$
|
7.90
|
|
|
$
|
6.65
|
|
|
$
|
7.79
|
|
|
$
|
5.45
|
|
|
Refinery operating
expense, excluding depreciation, per barrel of throughput (Note
12)
|
$
|
4.82
|
|
|
$
|
4.02
|
|
|
$
|
5.58
|
|
|
$
|
4.45
|
|
|
Crude and feedstocks
(% of total throughput) (Note 13):
|
|
|
|
|
|
|
|
|
Medium
crude
|
35
|
%
|
|
32
|
%
|
|
39
|
%
|
|
36
|
%
|
|
Light
crude
|
64
|
%
|
|
66
|
%
|
|
60
|
%
|
|
62
|
%
|
|
Other feedstocks and
blends
|
1
|
%
|
|
2
|
%
|
|
1
|
%
|
|
2
|
%
|
|
|
Total
throughput
|
100
|
%
|
|
100
|
%
|
|
100
|
%
|
|
100
|
%
|
|
Yield (% of total
throughput):
|
|
|
|
|
|
|
|
|
Gasoline and gasoline
blendstocks
|
55
|
%
|
|
52
|
%
|
|
55
|
%
|
|
52
|
%
|
|
Distillates and
distillate blendstocks
|
31
|
%
|
|
33
|
%
|
|
33
|
%
|
|
35
|
%
|
|
Chemicals
|
6
|
%
|
|
5
|
%
|
|
6
|
%
|
|
5
|
%
|
|
Other
|
10
|
%
|
|
11
|
%
|
|
8
|
%
|
|
9
|
%
|
|
|
Total
yield
|
102
|
%
|
|
101
|
%
|
|
102
|
%
|
|
101
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
Six Months
Ended
|
|
|
|
|
|
|
June
30,
|
|
June
30,
|
|
|
|
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
Supplemental
Operating Information - Gulf Coast (Chalmette)
|
|
|
|
|
|
|
|
|
Production (bpd in
thousands)
|
191.8
|
|
|
179.4
|
|
|
173.6
|
|
|
181.5
|
|
|
Crude oil and
feedstocks throughput (bpd in thousands)
|
191.3
|
|
|
172.2
|
|
|
173.6
|
|
|
174.2
|
|
|
Total crude oil and
feedstocks throughput (millions of barrels)
|
17.4
|
|
|
15.7
|
|
|
31.4
|
|
|
31.7
|
|
|
Gross margin per
barrel of throughput
|
$
|
0.85
|
|
|
$
|
3.65
|
|
|
$
|
1.24
|
|
|
$
|
3.63
|
|
|
Gross refining
margin, excluding special items, per barrel of throughput (Note 4,
Note 11)
|
$
|
7.76
|
|
|
$
|
6.00
|
|
|
$
|
8.40
|
|
|
$
|
6.54
|
|
|
Refinery operating
expense, excluding depreciation, per barrel of throughput (Note
12)
|
$
|
4.65
|
|
|
$
|
5.30
|
|
|
$
|
5.35
|
|
|
$
|
5.05
|
|
|
Crude and feedstocks
(% of total throughput) (Note 13):
|
|
|
|
|
|
|
|
|
Heavy
crude
|
42
|
%
|
|
39
|
%
|
|
42
|
%
|
|
38
|
%
|
|
Medium
crude
|
25
|
%
|
|
31
|
%
|
|
25
|
%
|
|
30
|
%
|
|
Light
crude
|
20
|
%
|
|
17
|
%
|
|
16
|
%
|
|
17
|
%
|
|
Other feedstocks and
blends
|
13
|
%
|
|
13
|
%
|
|
17
|
%
|
|
15
|
%
|
|
|
Total
throughput
|
100
|
%
|
|
100
|
%
|
|
100
|
%
|
|
100
|
%
|
|
Yield (% of total
throughput):
|
|
|
|
|
|
|
|
|
Gasoline and gasoline
blendstocks
|
45
|
%
|
|
47
|
%
|
|
47
|
%
|
|
47
|
%
|
|
Distillates and
distillate blendstocks
|
33
|
%
|
|
32
|
%
|
|
31
|
%
|
|
32
|
%
|
|
Chemicals
|
2
|
%
|
|
6
|
%
|
|
2
|
%
|
|
6
|
%
|
|
Other
|
20
|
%
|
|
15
|
%
|
|
20
|
%
|
|
15
|
%
|
|
|
Total
yield
|
100
|
%
|
|
100
|
%
|
|
100
|
%
|
|
100
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental
Operating Information - West Coast (Torrance) (Note
14)
|
|
|
|
|
|
|
|
|
Production (bpd in
thousands)
|
92.8
|
|
|
N/A
|
|
114.4
|
|
|
N/A
|
|
Crude oil and
feedstocks throughput (bpd in thousands)
|
97.2
|
|
|
N/A
|
|
117.6
|
|
|
N/A
|
|
Total crude oil and
feedstocks throughput (millions of barrels)
|
8.8
|
|
|
N/A
|
|
21.3
|
|
|
N/A
|
|
Gross margin per
barrel of throughput
|
$
|
(4.55)
|
|
|
N/A
|
|
$
|
(1.66)
|
|
|
N/A
|
|
Gross refining
margin, excluding special items, per barrel of throughput (Note 4,
Note 11)
|
$
|
12.18
|
|
|
N/A
|
|
$
|
11.10
|
|
|
N/A
|
|
Refinery operating
expense, excluding depreciation, per barrel of throughput (Note
12)
|
$
|
13.01
|
|
|
N/A
|
|
$
|
11.39
|
|
|
N/A
|
|
Crude and feedstocks
(% of total throughput) (Note 13):
|
|
|
|
|
|
|
|
|
Heavy
crude
|
57
|
%
|
|
N/A
|
|
73
|
%
|
|
N/A
|
|
Medium
crude
|
3
|
%
|
|
N/A
|
|
2
|
%
|
|
N/A
|
|
Other feedstocks and
blends
|
40
|
%
|
|
N/A
|
|
25
|
%
|
|
N/A
|
|
|
Total
throughput
|
100
|
%
|
|
N/A
|
|
100
|
%
|
|
N/A
|
|
Yield (% of total
throughput):
|
|
|
|
|
|
|
|
|
Gasoline and gasoline
blendstocks
|
69
|
%
|
|
N/A
|
|
66
|
%
|
|
N/A
|
|
Distillates and
distillate blendstocks
|
12
|
%
|
|
N/A
|
|
17
|
%
|
|
N/A
|
|
Other
|
14
|
%
|
|
N/A
|
|
14
|
%
|
|
N/A
|
|
|
Total
yield
|
95
|
%
|
|
N/A
|
|
97
|
%
|
|
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
|
|
|
|
|
|
|
|
June 30,
2017
|
|
June 30,
2016
|
|
$
|
|
per barrel
of
throughput
|
|
$
|
|
per barrel of
throughput
|
|
Calculation of
gross margin:
|
|
|
|
|
|
|
|
|
Revenues
|
$
|
5,017,225
|
|
|
$
|
71.68
|
|
|
$
|
3,858,467
|
|
|
$
|
60.74
|
|
|
Less: Cost of
products and other
|
4,605,693
|
|
|
65.80
|
|
|
3,249,444
|
|
|
51.16
|
|
|
Less: Refinery
operating expenses
|
398,570
|
|
|
5.69
|
|
|
271,539
|
|
|
4.27
|
|
|
Less: Refinery
depreciation expenses
|
56,973
|
|
|
0.81
|
|
|
47,540
|
|
|
0.75
|
|
|
Gross
margin
|
$
|
(44,011)
|
|
|
$
|
(0.62)
|
|
|
$
|
289,944
|
|
|
$
|
4.56
|
|
|
Reconciliation of
gross margin to gross refining margin:
|
|
|
|
|
|
|
|
|
Gross
margin
|
$
|
(44,011)
|
|
|
$
|
(0.62)
|
|
|
$
|
289,944
|
|
|
$
|
4.56
|
|
|
Less: Revenues of
PBFX
|
(62,329)
|
|
|
(0.89)
|
|
|
(40,659)
|
|
|
(0.64)
|
|
|
Add: Affiliate cost
of sales of PBFX
|
1,215
|
|
|
0.02
|
|
|
2,661
|
|
|
0.04
|
|
|
Add: Refinery
operating expenses
|
398,570
|
|
|
5.69
|
|
|
271,539
|
|
|
4.27
|
|
|
Add: Refinery
depreciation expense
|
56,973
|
|
|
0.81
|
|
|
47,540
|
|
|
0.75
|
|
|
Gross refining
margin
|
$
|
350,418
|
|
|
$
|
5.01
|
|
|
$
|
571,025
|
|
|
$
|
8.98
|
|
|
Special
Items (Note 4):
|
|
|
|
|
|
|
|
|
Add: Non-cash LCM
inventory adjustment (Note 5)
|
151,095
|
|
|
2.16
|
|
|
(157,780)
|
|
|
(2.48)
|
|
|
Gross refining
margin excluding special items (Note 4)
|
$
|
501,513
|
|
|
$
|
7.17
|
|
|
$
|
413,245
|
|
|
$
|
6.50
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months
Ended
|
|
Six Months
Ended
|
|
|
|
|
|
|
|
June 30,
2017
|
|
June 30,
2016
|
|
$
|
|
per barrel of
throughput
|
|
$
|
|
per barrel of
throughput
|
|
Calculation of
gross margin:
|
|
|
|
|
|
|
|
|
Revenues
|
$
|
9,771,698
|
|
|
$
|
71.63
|
|
|
$
|
6,658,652
|
|
|
$
|
54.28
|
|
|
Less: Cost of
products and other
|
8,802,460
|
|
|
64.53
|
|
|
5,661,539
|
|
|
46.15
|
|
|
Less: Refinery
operating expenses
|
835,423
|
|
|
6.12
|
|
|
568,178
|
|
|
4.63
|
|
|
Less: Refinery
depreciation expenses
|
110,900
|
|
|
0.81
|
|
|
100,136
|
|
|
0.82
|
|
|
Gross
margin
|
$
|
22,915
|
|
|
$
|
0.17
|
|
|
$
|
328,799
|
|
|
$
|
2.68
|
|
|
Reconciliation of
gross margin to gross refining margin:
|
|
|
|
|
|
|
|
|
Gross
margin
|
$
|
22,915
|
|
|
$
|
0.17
|
|
|
$
|
328,799
|
|
|
$
|
2.68
|
|
|
Less: Revenues
of PBFX
|
(122,806)
|
|
|
(0.90)
|
|
|
(77,208)
|
|
|
(0.63)
|
|
|
Add: Affiliate
cost of sales of PBFX
|
2,430
|
|
|
0.02
|
|
|
5,322
|
|
|
0.04
|
|
|
Add: Refinery
operating expenses
|
835,423
|
|
|
6.12
|
|
|
568,178
|
|
|
4.63
|
|
|
Add: Refinery
depreciation expense
|
110,900
|
|
|
0.81
|
|
|
100,136
|
|
|
0.82
|
|
|
Gross refining
margin
|
$
|
848,862
|
|
|
$
|
6.22
|
|
|
$
|
925,227
|
|
|
$
|
7.54
|
|
|
Special
Items (Note 4):
|
|
|
|
|
|
|
|
|
Add: Non-cash LCM
inventory adjustment (Note 5)
|
167,134
|
|
|
1.23
|
|
|
(216,843)
|
|
|
(1.77)
|
|
|
Gross refining
margin excluding special items (Note 4)
|
$
|
1,015,996
|
|
|
$
|
7.45
|
|
|
$
|
708,384
|
|
|
$
|
5.77
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(3) Represents an
adjustment to reflect the company's expected full-year statutory
corporate tax rate of approximately 39.4% and 39.6% for the 2017
and 2016 periods, respectively, applied to the net income (loss)
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.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 ("LCM")
adjustment and debt extinguishment costs. 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 inventory
adjustment is recorded to reflect the net change in the LCM
inventory reserve between the prior period and the current period.
Debt extinguishment costs reflect the difference between the
carrying value of our 2020 Senior Secured Notes on the date that
they were reacquired and the amount for which they were reacquired.
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.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(5) The following
table includes the lower of cost or market inventory reserve as of
each date presented:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2017
|
|
2016
|
|
January 1,
|
|
|
$
|
595,988
|
|
|
$
|
1,117,336
|
|
|
March 31,
|
|
|
612,027
|
|
|
1,058,273
|
|
|
June 30,
|
|
|
763,122
|
|
|
900,493
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The following table
includes the corresponding impact of changes in the lower of cost
or market inventory reserve on operating income and net income for
the periods presented:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
June 30,
|
|
Six Months
Ended
June 30,
|
|
|
|
|
|
|
|
|
|
2017
|
|
2016
|
|
2017
|
|
|
2016
|
|
Net LCM inventory
adjustment benefit (charge)
in operating income
|
$
|
(151,095)
|
|
|
$
|
157,780
|
|
|
$
|
(167,134)
|
|
|
|
$
|
216,843
|
|
|
Net LCM inventory
adjustment benefit (charge) in net income
|
(91,624)
|
|
|
95,264
|
|
|
(101,350)
|
|
|
|
130,973
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Additionally, during
the three and six months ended June, 30, 2017, we recorded pre-tax
debt extinguishment costs of $25.5 million related to the
redemption of the 2020 Senior Secured Notes. These nonrecurring
charges decreased net income by $15.4 million for the three and six
months ended June 30, 2017. There were no such costs in the same
periods of 2016.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(6) 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.
|
|
|
(7) 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 options for shares of PBF Energy Class A
common stock as calculated under the treasury stock method for the
three and six months ended June 30, 2017 and June 30, 2016,
respectively. Common stock equivalents exclude the effects of
options and warrants to purchase 7,278,142 and 7,278,142 shares of
PBF Energy Class A common stock and PBF LLC Series A Units
because they are anti-dilutive for the three and six months ended
June 30, 2017, respectively. Common stock equivalents exclude the
effects of options and warrants to purchase 3,467,125 and 2,919,125
shares of PBF Energy Class A common stock and PBF LLC Series A
Units because they are anti-dilutive for the three and six months
ended June 30, 2016, respectively.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 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.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 June 30, 2017, 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 consist of rail and truck terminals and unloading racks,
tank farms and pipelines, a substantial portion of which were
acquired from or contributed by PBF LLC and are located at, or
nearby, the company's 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. In
connection with the contribution by PBF LLC of the limited
liability interests in PNGPC to PBFX, the accompanying segment
information has been retrospectively adjusted to include the
historical results of PNGPC in the Logistics segment for all
periods presented prior to such contribution.
PBFX currently does
not generate significant third party revenue and intersegment
related-party revenues are eliminated in consolidation. Prior to
the PBFX initial public offering, PBFX was not considered to be a
separate reportable segment. From a PBF Energy perspective, the
company's chief operating decision maker evaluates the Logistics
segment as a whole without regard to any of PBFX's individual
segments.
|
|
|
(10) As
reported by Platts.
|
|
|
(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 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.
|
|
|
(12) Represents
refinery operating expenses, excluding depreciation and
amortization, divided by total crude oil and feedstocks
throughput.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(14) The Logistics
segment includes capital expenditures of $10.1 million for the
acquisition of the Toledo Terminal by PBFX on April 17,
2017.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(15) 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.
|
|
|
(16) 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 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 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 collateralized PBFX's Term
Loan prior to its repayment. 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.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June
30,
|
|
December
31,
|
|
|
|
|
2017
|
|
2016
|
|
Total debt
|
$
|
2,159,547
|
|
|
$
|
2,148,234
|
|
|
Total
equity
|
2,368,993
|
|
|
2,570,684
|
|
|
Total
capitalization
|
$
|
4,528,540
|
|
|
$
|
4,718,918
|
|
|
|
|
|
|
Total debt
|
$
|
2,159,547
|
|
|
$
|
2,148,234
|
|
|
Total equity
excluding special items
|
2,827,468
|
|
|
2,912,375
|
|
|
Total capitalization
excluding special items
|
$
|
4,987,015
|
|
|
$
|
5,060,609
|
|
|
|
|
|
|
Total
equity
|
$
|
2,368,993
|
|
|
$
|
2,570,684
|
|
|
Special Items
(Note 4)
|
|
|
|
|
Add: Non-cash LCM inventory adjustment (Note 5)
|
763,122
|
|
|
595,988
|
|
|
Add: Change in tax receivable agreement liability
|
(25,508)
|
|
|
(25,508)
|
|
|
Add: Debt extinguishment costs (Note 5)
|
25,451
|
|
|
—
|
|
|
Less: Recomputed income taxes on special items (Note 5)
|
(304,590)
|
|
|
(228,789)
|
|
|
Net impact of
special items to equity
|
458,475
|
|
|
341,691
|
|
|
Total equity
excluding special items (Note 4)
|
$
|
2,827,468
|
|
|
$
|
2,912,375
|
|
|
|
|
|
|
|
|
|
Total debt
|
$
|
2,159,547
|
|
|
$
|
2,148,234
|
|
|
Less: Cash, cash equivalents and marketable securities
|
173,031
|
|
|
786,298
|
|
|
Net Debt
|
|
|
|
$
|
1,986,516
|
|
|
$
|
1,361,936
|
|
|
|
|
|
|
|
|
|
Total debt to
capitalization ratio
|
48
|
%
|
|
46
|
%
|
|
Total debt to
capitalization ratio, excluding special items
|
43
|
%
|
|
42
|
%
|
|
Net debt to
capitalization ratio
|
46
|
%
|
|
35
|
%
|
|
Net debt to
capitalization ratio, excluding special items
|
41
|
%
|
|
32
|
%
|
|
(17) 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 the acquisition of PBFX's 50% interest in TVPC
was completed in the third quarter of 2016, there was no impact on
comparative June 30, 2016 disclosures.
|
|
|
(18) 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.