PARSIPPANY, N.J., Feb. 15, 2018 /PRNewswire/ -- PBF Energy
Inc. (NYSE: PBF) today reported fourth quarter 2017 income from
operations of $253.5 million as
compared to income from operations of $139.8
million for the fourth quarter of 2016. The company reported
fourth quarter 2017 net income of $260.4
million, and net income attributable to PBF Energy Inc. of
$241.9 million or $2.14 per share. This compares to net income of
$71.8 million, and net income
attributable to PBF Energy Inc. of $54.6
million or $0.54 per share for
the fourth quarter 2016. Net income attributable to PBF Energy Inc.
for the year-ended December 31, 2017
was $415.5 million, or $3.73 per share as compared to net income of
$170.8 million, or $1.74 per share, for the year-ended December 31, 2016. Income from operations for the
years ended December 31, 2017 and
2016 was $730.2 million and
$498.9 million, respectively.
Our results for the fourth quarter 2017 were impacted by special
items. These special items include a net, non-cash, after-tax gain
of $119.3 million, or $1.04 per share, lower-of-cost-or-market ("LCM")
inventory adjustment, and an after-tax net expense of $42.3 million, or $0.37 per share, related to a change in the tax
receivable agreement ("TRA") liability and remeasurement of TRA
associated deferred tax assets. The Tax Cuts and Jobs Act (the
"TCJA") provided a net tax benefit of $173.3
million, or $1.51 per share,
primarily related to the reduction in net deferred tax liabilities.
In addition to these special items, our results included net
after-tax charges totaling approximately $3.0 million, or $0.03 per share, related to an inventory layer
decrement and approximately $42.2
million, or $0.37 per share,
related to non-cash, unrealized derivative expense related to basis
exposure for heavy Canadian feedstocks that will be processed in
2018.
Excluding special items, fourth quarter 2017 income from
operations was $55.9 million as
compared to a loss from operations of $60.7
million for the fourth quarter of 2016. Adjusted
fully-converted net loss for the fourth quarter 2017, excluding
special items, was $4.4 million, or
$0.04 per share on a fully-exchanged,
fully-diluted basis, as described below, compared to adjusted
fully-converted net loss of $74.9
million, or $0.71 per share,
for the fourth quarter 2016.
Excluding special items, income from operations was $434.7 million for the year-ended December 31, 2017 as compared to a loss from
operations of $22.5 million for the
year-ended December 31, 2016.
Adjusted fully-converted net income for the year ended December 31, 2017, excluding special items, was
$130.1 million, or $1.14 per share on a fully-exchanged,
fully-diluted basis, as compared to adjusted fully-converted net
loss of $145.7 million, or
$1.41 per share, for the year ended
December 31, 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 December 31,
2017.
"2017 was a year of two halves for PBF Energy. During the
first two quarters of the year, we invested heavily in our assets
and completed the largest turnaround in our company's history at
our Torrance refinery. The improvements and strategic capital
investments we completed were critical to our operational success
in the third and fourth quarters and helped demonstrate the
strength of our fully-operational refining system," said
Tom Nimbley, PBF Energy's Chairman
and CEO, "Looking ahead, we continue to focus on the safe and
reliable operations of our assets. We are beginning 2018 with
a strong and flexible balance sheet and are positioned to benefit
from opportunities in the market."
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 March 14, 2018, to holders
of record as of February 28,
2018.
Outlook
For the first quarter 2018, we expect East
Coast total throughput to average 330,000 to 350,000 barrels per
day; Mid-Continent total throughput is expected to average 125,000
to 135,000 barrels per day; Gulf Coast total throughput is expected
to average 180,000 to 190,000 barrels per day and West Coast total
throughput is expected to average 160,000 to 170,000 barrels per
day. These figures include the impact of the previously
announced planned turnarounds at the Toledo, Delaware City and
Chalmette refineries.
Non-GAAP Measures
This earnings release, and the
discussion during the management conference call, may include
references to non-GAAP (Generally Accepted Accounting Principles)
measures including Adjusted Fully-Converted Net Income, Adjusted
Fully-Converted Net Income excluding special items, Adjusted
Fully-Converted Net Income per fully-exchanged, fully-diluted
share, 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.
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.
Conference Call Information
PBF Energy's senior
management will host a conference call and webcast regarding
quarterly results and other business matters on Thursday,
February 15, 2018, 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 (866) 518-6930 or (203) 518-9797, conference
ID: PBFQ417. The audio replay will be available two hours
after the end of the call through March 1,
2018, by dialing (800) 283-4605 or (402) 220-0874.
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 44.1% of the limited partnership interest
of PBF Logistics LP (NYSE: PBFX).
PBF ENERGY INC.
AND SUBSIDIARIES
|
EARNINGS RELEASE
TABLES
|
CONSOLIDATED
STATEMENTS OF OPERATIONS
|
(Unaudited, in
thousands, except share and per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Year
Ended
|
|
|
|
|
|
|
December
31,
|
|
December
31,
|
|
|
|
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
Revenues
|
|
$
|
6,535,988
|
|
|
$
|
4,748,568
|
|
|
$
|
21,786,637
|
|
|
$
|
15,920,424
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost and expenses
(Note 1):
|
|
|
|
|
|
|
|
|
|
Cost of products and
other
|
|
5,709,100
|
|
|
4,074,222
|
|
|
18,863,621
|
|
|
13,598,341
|
|
|
Operating expenses
(excluding depreciation and amortization expense as reflected
below)
|
|
418,475
|
|
|
433,902
|
|
|
1,685,611
|
|
|
1,423,198
|
|
|
Depreciation and
amortization expense
|
|
80,192
|
|
|
57,729
|
|
|
277,992
|
|
|
216,341
|
|
|
Cost of
sales
|
|
6,207,767
|
|
|
4,565,853
|
|
|
20,827,224
|
|
|
15,237,880
|
|
|
General and
administrative expenses (excluding depreciation and amortization
expense as reflected below)
|
|
71,578
|
|
|
41,477
|
|
|
214,773
|
|
|
166,452
|
|
|
Depreciation and
amortization expense
|
|
2,609
|
|
|
1,418
|
|
|
12,964
|
|
|
5,835
|
|
|
Loss (gain) on sale
of assets
|
|
518
|
|
|
(7)
|
|
|
1,458
|
|
|
11,374
|
|
Total cost and
expenses
|
|
|
6,282,472
|
|
|
4,608,741
|
|
|
21,056,419
|
|
|
15,421,541
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from
operations
|
|
253,516
|
|
|
139,827
|
|
|
730,218
|
|
|
498,883
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income
(expense):
|
|
|
|
|
|
|
|
|
|
Change in tax
receivable agreement liability
|
|
250,357
|
|
|
16,051
|
|
|
250,922
|
|
|
12,908
|
|
|
Change in fair value
of catalyst leases
|
|
(1,236)
|
|
|
5,978
|
|
|
(2,247)
|
|
|
1,422
|
|
|
Debt extinguishment
costs
|
|
—
|
|
|
—
|
|
|
(25,451)
|
|
|
—
|
|
|
Interest expense,
net
|
|
(39,556)
|
|
|
(38,051)
|
|
|
(154,427)
|
|
|
(150,045)
|
|
Income before
income taxes
|
|
463,081
|
|
|
123,805
|
|
|
799,015
|
|
|
363,168
|
|
Income tax
expense
|
|
202,695
|
|
|
52,043
|
|
|
315,584
|
|
|
137,650
|
|
Net
income
|
|
260,386
|
|
|
71,762
|
|
|
483,431
|
|
|
225,518
|
|
|
Less: net income
attributable to noncontrolling interests
|
|
18,494
|
|
|
17,204
|
|
|
67,914
|
|
|
54,707
|
|
Net income
attributable to PBF Energy Inc. stockholders
|
|
$
|
241,892
|
|
|
$
|
54,558
|
|
|
$
|
415,517
|
|
|
$
|
170,811
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income available
to Class A common stock per share:
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
2.19
|
|
|
$
|
0.55
|
|
|
$
|
3.78
|
|
|
$
|
1.74
|
|
|
|
Diluted
|
|
$
|
2.14
|
|
|
$
|
0.54
|
|
|
$
|
3.73
|
|
|
$
|
1.74
|
|
|
|
Weighted-average
shares outstanding-basic
|
|
110,208,152
|
|
|
99,854,984
|
|
|
109,779,407
|
|
|
98,334,302
|
|
|
|
Weighted-average
shares outstanding-diluted
|
|
114,773,845
|
|
|
104,815,217
|
|
|
113,898,845
|
|
|
103,606,709
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends per
common share
|
|
$
|
0.30
|
|
|
$
|
0.30
|
|
|
$
|
1.20
|
|
|
$
|
1.20
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
fully-converted net income and adjusted fully-
converted net income per fully exchanged, fully diluted shares
outstanding (Note 2):
|
|
|
|
|
|
|
|
|
|
|
Adjusted
fully-converted net income
|
|
$
|
245,929
|
|
|
$
|
57,086
|
|
|
$
|
424,587
|
|
|
$
|
179,893
|
|
|
|
Adjusted
fully-converted net income per fully exchanged, fully diluted
share
|
|
$
|
2.14
|
|
|
$
|
0.54
|
|
|
$
|
3.73
|
|
|
$
|
1.74
|
|
|
|
Adjusted
fully-converted shares outstanding - diluted
|
|
114,773,845
|
|
|
104,815,217
|
|
|
113,898,845
|
|
|
103,606,709
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RECONCILIATION OF
NET INCOME TO ADJUSTED FULLY-CONVERTED
|
Three Months
Ended
|
|
Year
Ended
|
NET
INCOME AND ADJUSTED FULLY-CONVERTED NET INCOME
(LOSS)
|
December
31,
|
|
December
31,
|
EXCLUDING SPECIAL
ITEMS (Note 2)
|
2017
|
|
2016
|
|
2017
|
|
2016
|
Net income
attributable to PBF Energy Inc. stockholders
|
$
|
241,892
|
|
|
$
|
54,558
|
|
|
$
|
415,517
|
|
|
$
|
170,811
|
|
|
Less:
|
Income allocated to
participating securities
|
232
|
|
|
—
|
|
|
1,043
|
|
|
—
|
|
Net income
attributable to PBF Energy Inc. stockholders - basic
|
241,660
|
|
|
54,558
|
|
|
414,474
|
|
|
170,811
|
|
|
Add:
|
Net income
attributable to noncontrolling interest (Note 3)
|
7,069
|
|
|
4,149
|
|
|
16,746
|
|
|
14,903
|
|
|
Less:
|
Income tax expense
(Note 4)
|
(2,800)
|
|
|
(1,621)
|
|
|
(6,633)
|
|
|
(5,821)
|
|
Adjusted
fully-converted net income
|
$
|
245,929
|
|
|
$
|
57,086
|
|
|
$
|
424,587
|
|
|
$
|
179,893
|
|
Special items (Note
5):
|
|
|
|
|
|
|
|
|
Add:
|
Non-cash LCM
inventory adjustment (Note 6)
|
(197,589)
|
|
|
(200,515)
|
|
|
(295,532)
|
|
|
(521,348)
|
|
|
Add:
|
Change in tax
receivable agreement liability (Note 6)
|
(250,357)
|
|
|
(16,051)
|
|
|
(250,922)
|
|
|
(12,908)
|
|
|
Add:
|
Debt extinguishment
costs (Note 6)
|
—
|
|
|
—
|
|
|
25,451
|
|
|
—
|
|
|
Add:
|
Net tax benefit
related to the TCJA (Note 7)
|
(173,346)
|
|
|
—
|
|
|
(173,346)
|
|
|
—
|
|
|
Add:
|
Net tax expense on
remeasurement of TRA associated deferred tax assets (Note
7)
|
193,499
|
|
|
—
|
|
|
193,499
|
|
|
—
|
|
|
Less:
|
Recomputed income
taxes on special items (Note 6)
|
177,427
|
|
|
84,593
|
|
|
206,364
|
|
|
208,686
|
|
Adjusted
fully-converted net (loss) income excluding special items (Note
5)
|
$
|
(4,437)
|
|
|
$
|
(74,887)
|
|
|
$
|
130,101
|
|
|
$
|
(145,677)
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average
shares outstanding of PBF Energy Inc.
|
110,208,152
|
|
|
99,854,984
|
|
|
109,779,407
|
|
|
98,334,302
|
|
|
Conversion of PBF LLC
Series A Units (Note 8)
|
3,798,023
|
|
|
4,591,968
|
|
|
3,823,783
|
|
|
4,865,133
|
|
|
Common stock
equivalents (Note 9)
|
767,670
|
|
|
368,265
|
|
|
295,655
|
|
|
407,274
|
|
Fully-converted
shares outstanding - diluted
|
114,773,845
|
|
|
104,815,217
|
|
|
113,898,845
|
|
|
103,606,709
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
fully-converted net income (per fully exchanged, fully diluted
shares outstanding)
|
$
|
2.14
|
|
|
$
|
0.54
|
|
|
$
|
3.73
|
|
|
$
|
1.74
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
fully-converted net (loss) income excluding special items (per
fully exchanged, fully diluted shares outstanding) (Note
5)
|
$
|
(0.04)
|
|
|
$
|
(0.71)
|
|
|
$
|
1.14
|
|
|
$
|
(1.41)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Year
Ended
|
RECONCILIATION OF
INCOME FROM OPERATIONS TO
|
December
31,
|
|
December
31,
|
INCOME (LOSS) FROM
OPERATIONS EXCLUDING SPECIAL ITEMS
|
2017
|
|
2016
|
|
2017
|
|
2016
|
Income from
operations
|
$
|
253,516
|
|
|
$
|
139,827
|
|
|
$
|
730,218
|
|
|
$
|
498,883
|
|
Special items (Note
5):
|
|
|
|
|
|
|
|
|
Add:
|
Non-cash LCM
inventory adjustment (Note 6)
|
(197,589)
|
|
|
(200,515)
|
|
|
(295,532)
|
|
|
(521,348)
|
|
Income (loss) from
operations excluding special items (Note 5)
|
$
|
55,927
|
|
|
$
|
(60,688)
|
|
|
$
|
434,686
|
|
|
$
|
(22,465)
|
|
|
|
|
|
|
|
|
|
See Footnotes to
Earnings Release Tables
|
PBF ENERGY INC.
AND SUBSIDIARIES
|
RECONCILIATION OF
AMOUNTS REPORTED UNDER U.S. GAAP
|
EBITDA
RECONCILIATIONS (Note 10)
|
(Unaudited, in
thousands, except share and per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Year
Ended
|
RECONCILIATION OF
NET INCOME TO EBITDA AND EBITDA
|
December
31,
|
|
December
31,
|
EXCLUDING SPECIAL
ITEMS:
|
2017
|
|
2016
|
|
2017
|
|
2016
|
Net
income
|
$
|
260,386
|
|
|
$
|
71,762
|
|
|
$
|
483,431
|
|
|
$
|
225,518
|
|
|
Add:
|
Depreciation and
amortization expense
|
82,801
|
|
|
59,147
|
|
|
290,956
|
|
|
222,176
|
|
|
Add:
|
Interest expense,
net
|
39,556
|
|
|
38,051
|
|
|
154,427
|
|
|
150,045
|
|
|
Add:
|
Income tax
expense
|
202,695
|
|
|
52,043
|
|
|
315,584
|
|
|
137,650
|
|
EBITDA
|
$
|
585,438
|
|
|
$
|
221,003
|
|
|
$
|
1,244,398
|
|
|
$
|
735,389
|
|
Special Items (Note
5):
|
|
|
|
|
|
|
|
|
Add:
|
Non-cash LCM
inventory adjustment (Note 6)
|
(197,589)
|
|
|
(200,515)
|
|
|
(295,532)
|
|
|
(521,348)
|
|
|
Add:
|
Change in tax
receivable agreement liability (Note 6)
|
(250,357)
|
|
|
(16,051)
|
|
|
(250,922)
|
|
|
(12,908)
|
|
|
Add:
|
Debt extinguishment
costs (Note 6)
|
—
|
|
|
—
|
|
|
25,451
|
|
|
—
|
|
EBITDA excluding
special items (Note 5)
|
$
|
137,492
|
|
|
$
|
4,437
|
|
|
$
|
723,395
|
|
|
$
|
201,133
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RECONCILIATION OF
EBITDA TO ADJUSTED EBITDA:
|
|
|
|
|
|
|
|
EBITDA
|
$
|
585,438
|
|
|
$
|
221,003
|
|
|
$
|
1,244,398
|
|
|
$
|
735,389
|
|
|
Add:
|
Stock based
compensation
|
8,784
|
|
|
6,325
|
|
|
26,848
|
|
|
22,656
|
|
|
Add:
|
Net non-cash change
in fair value of catalyst leases
|
1,236
|
|
|
(5,978)
|
|
|
2,247
|
|
|
(1,422)
|
|
|
Add:
|
Non-cash LCM
inventory adjustment (Note 6)
|
(197,589)
|
|
|
(200,515)
|
|
|
(295,532)
|
|
|
(521,348)
|
|
|
Add:
|
Change in tax
receivable agreement liability (Note 6)
|
(250,357)
|
|
|
(16,051)
|
|
|
(250,922)
|
|
|
(12,908)
|
|
|
Add:
|
Debt extinguishment
costs (Note 6)
|
—
|
|
|
—
|
|
|
25,451
|
|
|
—
|
|
Adjusted
EBITDA
|
$
|
147,512
|
|
|
$
|
4,784
|
|
|
$
|
752,490
|
|
|
$
|
222,367
|
|
|
See Footnotes to
Earnings Release Tables
|
PBF ENERGY INC.
AND SUBSIDIARIES
|
EARNINGS RELEASE
TABLES
|
CONSOLIDATED
BALANCE SHEET DATA
|
(Unaudited, in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December
31,
|
|
December
31,
|
|
|
|
|
|
2017
|
|
2016
|
Balance Sheet
Data:
|
|
|
|
|
|
Cash, cash
equivalents and marketable securities
|
$
|
573,021
|
|
|
$
|
786,298
|
|
|
Inventories
|
2,213,797
|
|
|
1,863,560
|
|
|
Total
assets
|
8,117,993
|
|
|
7,621,927
|
|
|
Total debt
|
2,191,650
|
|
|
2,148,234
|
|
|
|
|
|
|
|
Total
equity
|
2,902,949
|
|
|
2,570,684
|
|
|
Total equity,
excluding special items (Note 5, 18)
|
$
|
2,950,154
|
|
|
$
|
2,912,375
|
|
|
|
|
|
|
|
Total debt to
capitalization ratio (Note 18)
|
43
|
%
|
|
46
|
%
|
|
Total debt to
capitalization ratio, excluding special items (Note 18)
|
43
|
%
|
|
42
|
%
|
|
Net debt to
capitalization ratio (Note 18)
|
36
|
%
|
|
35
|
%
|
|
Net debt to
capitalization ratio, excluding special items (Note 18)
|
35
|
%
|
|
32
|
%
|
|
|
|
|
|
|
|
|
SUMMARIZED
STATEMENT OF CASH FLOW DATA
|
(Unaudited, in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended
December 31,
|
|
|
|
|
|
2017
|
|
2016
|
Cash flows provided
by operations
|
$
|
685,861
|
|
|
$
|
651,934
|
|
Cash flows used in
investing activities
|
(687,011)
|
|
|
(1,393,935)
|
|
Cash flows (used in)
provided by financing activities
|
(172,103)
|
|
|
543,955
|
|
Net decrease in cash
and cash equivalents
|
(173,253)
|
|
|
(198,046)
|
|
Cash and cash
equivalents, beginning of period
|
746,274
|
|
|
944,320
|
|
Cash and cash
equivalents, end of period
|
$
|
573,021
|
|
|
$
|
746,274
|
|
|
Marketable
securities
|
—
|
|
|
40,024
|
|
Net cash, cash
equivalents and marketable securities
|
$
|
573,021
|
|
|
$
|
786,298
|
|
|
|
|
|
|
|
|
|
See Footnotes to
Earnings Release Tables
|
PBF ENERGY INC.
AND SUBSIDIARIES
|
EARNINGS RELEASE
TABLES
|
SEGMENT FINANCIAL
INFORMATION (Note 11)
|
(Unaudited, in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
December 31, 2017
|
|
Refining
|
|
Logistics
|
|
Corporate
|
|
Eliminations
|
|
Consolidated
Total
|
Revenues
|
$
|
6,533,213
|
|
|
$
|
66,513
|
|
|
$
|
—
|
|
|
$
|
(63,738)
|
|
|
$
|
6,535,988
|
|
Depreciation and
amortization expense
|
73,033
|
|
|
7,159
|
|
|
2,609
|
|
|
—
|
|
|
82,801
|
|
Income (loss) from
operations (Note 19)
|
290,976
|
|
|
36,737
|
|
|
(70,850)
|
|
|
(3,347)
|
|
|
253,516
|
|
Interest expense,
net
|
1,262
|
|
|
9,745
|
|
|
28,549
|
|
|
—
|
|
|
39,556
|
|
Capital
expenditures
|
58,483
|
|
|
18,098
|
|
|
512
|
|
|
—
|
|
|
77,093
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
December 31, 2016
|
|
Refining
|
|
Logistics
|
|
Corporate
|
|
Eliminations
|
|
Consolidated
Total
|
Revenues
|
$
|
4,743,966
|
|
|
$
|
61,694
|
|
|
$
|
—
|
|
|
$
|
(57,092)
|
|
|
$
|
4,748,568
|
|
Depreciation and
amortization expense
|
52,289
|
|
|
5,440
|
|
|
1,418
|
|
|
—
|
|
|
59,147
|
|
Income (loss) from
operations (Note 19)
|
148,180
|
|
|
35,505
|
|
|
(39,800)
|
|
|
(4,058)
|
|
|
139,827
|
|
Interest expense,
net
|
111
|
|
|
7,874
|
|
|
30,066
|
|
|
—
|
|
|
38,051
|
|
Capital
expenditures
|
160,043
|
|
|
14,935
|
|
|
3,633
|
|
|
—
|
|
|
178,611
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended
December 31, 2017
|
|
Refining
|
|
Logistics
|
|
Corporate
|
|
Eliminations
|
|
Consolidated
Total
|
Revenues
|
$
|
21,772,478
|
|
|
$
|
254,813
|
|
|
$
|
—
|
|
|
$
|
(240,654)
|
|
|
$
|
21,786,637
|
|
Depreciation and
amortization expense
|
254,161
|
|
|
23,831
|
|
|
12,964
|
|
|
—
|
|
|
290,956
|
|
Income (loss) from
operations (Note 19)
|
808,021
|
|
|
148,215
|
|
|
(211,453)
|
|
|
(14,565)
|
|
|
730,218
|
|
Interest expense,
net
|
4,695
|
|
|
33,363
|
|
|
116,369
|
|
|
—
|
|
|
154,427
|
|
Capital
expenditures (Note 17)
|
634,013
|
|
|
89,539
|
|
|
3,483
|
|
|
—
|
|
|
727,035
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended
December 31, 2016
|
|
Refining
|
|
Logistics
|
|
Corporate
|
|
Eliminations
|
|
Consolidated
Total
|
Revenues
|
$
|
15,908,537
|
|
|
$
|
187,335
|
|
|
$
|
—
|
|
|
$
|
(175,448)
|
|
|
$
|
15,920,424
|
|
Depreciation and
amortization expense
|
201,358
|
|
|
14,983
|
|
|
5,835
|
|
|
—
|
|
|
222,176
|
|
Income (loss) from
operations (Note 19)
|
551,810
|
|
|
110,822
|
|
|
(158,070)
|
|
|
(5,679)
|
|
|
498,883
|
|
Interest expense,
net
|
2,938
|
|
|
30,433
|
|
|
116,674
|
|
|
—
|
|
|
150,045
|
|
Capital
expenditures (Note 16)
|
1,471,291
|
|
|
121,351
|
|
|
20,229
|
|
|
—
|
|
|
1,612,871
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at
December 31, 2017
|
|
Refining
|
|
Logistics
|
|
Corporate
|
|
Eliminations
|
|
Consolidated
Total
|
Total Assets (Note
20)
|
$
|
7,298,049
|
|
|
$
|
737,550
|
|
|
$
|
123,211
|
|
|
$
|
(40,817)
|
|
|
$
|
8,117,993
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at
December 31, 2016
|
|
Refining
|
|
Logistics
|
|
Corporate
|
|
Eliminations
|
|
Consolidated
Total
|
Total Assets (Note
20)
|
$
|
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
|
|
Year
Ended
|
|
|
|
|
|
|
December
31,
|
|
December
31,
|
Market Indicators
(dollars per barrel, except as noted) (Note 12)
|
2017
|
|
2016
|
|
2017
|
|
2016
|
Dated Brent
Crude
|
$
|
61.39
|
|
|
$
|
49.56
|
|
|
$
|
54.18
|
|
|
$
|
43.91
|
|
West Texas
Intermediate (WTI) crude oil
|
$
|
55.23
|
|
|
$
|
49.23
|
|
|
$
|
50.79
|
|
|
$
|
43.34
|
|
Light Louisiana Sweet
(LLS) crude oil
|
$
|
60.94
|
|
|
$
|
50.60
|
|
|
$
|
54.02
|
|
|
$
|
45.03
|
|
Alaska North Slope
(ANS) crude oil
|
$
|
61.31
|
|
|
$
|
50.06
|
|
|
$
|
54.43
|
|
|
$
|
43.67
|
|
Crack
Spreads
|
|
|
|
|
|
|
|
|
Dated Brent (NYH)
2-1-1
|
$
|
14.44
|
|
|
$
|
14.43
|
|
|
$
|
14.74
|
|
|
$
|
13.49
|
|
|
WTI (Chicago)
4-3-1
|
$
|
19.44
|
|
|
$
|
10.30
|
|
|
$
|
15.88
|
|
|
$
|
12.38
|
|
|
LLS (Gulf Coast)
2-1-1
|
$
|
13.00
|
|
|
$
|
11.98
|
|
|
$
|
13.57
|
|
|
$
|
10.75
|
|
|
ANS (West Coast)
4-3-1
|
$
|
13.34
|
|
|
$
|
14.16
|
|
|
$
|
17.43
|
|
|
$
|
16.46
|
|
Crude Oil
Differentials
|
|
|
|
|
|
|
|
|
Dated Brent (foreign)
less WTI
|
$
|
6.16
|
|
|
$
|
0.33
|
|
|
$
|
3.39
|
|
|
$
|
0.56
|
|
|
Dated Brent less Maya
(heavy, sour)
|
$
|
10.52
|
|
|
$
|
6.70
|
|
|
$
|
7.16
|
|
|
$
|
7.36
|
|
|
Dated Brent less WTS
(sour)
|
$
|
6.59
|
|
|
$
|
1.24
|
|
|
$
|
4.37
|
|
|
$
|
1.42
|
|
|
Dated Brent less ASCI
(sour)
|
$
|
3.88
|
|
|
$
|
3.59
|
|
|
$
|
3.66
|
|
|
$
|
3.92
|
|
|
WTI less WCS (heavy,
sour)
|
$
|
16.48
|
|
|
$
|
13.79
|
|
|
$
|
12.24
|
|
|
$
|
12.57
|
|
|
WTI less Bakken
(light, sweet)
|
$
|
(1.54)
|
|
|
$
|
1.98
|
|
|
$
|
(0.26)
|
|
|
$
|
1.32
|
|
|
WTI less Syncrude
(light, sweet)
|
$
|
(1.53)
|
|
|
$
|
(0.04)
|
|
|
$
|
(1.74)
|
|
|
$
|
(2.01)
|
|
|
WTI less LLS (light,
sweet)
|
$
|
(5.71)
|
|
|
$
|
(1.37)
|
|
|
$
|
(3.23)
|
|
|
$
|
(1.69)
|
|
|
WTI less ANS (light,
sweet)
|
$
|
(6.08)
|
|
|
$
|
(0.83)
|
|
|
$
|
(3.63)
|
|
|
$
|
(0.33)
|
|
Natural gas (dollars
per MMBTU)
|
$
|
2.92
|
|
|
$
|
3.18
|
|
|
$
|
3.02
|
|
|
$
|
2.55
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Key Operating
Information
|
|
|
|
|
|
|
|
Production (barrels
per day ("bpd") in thousands)
|
872.3
|
|
|
786.1
|
|
|
802.9
|
|
|
734.3
|
|
Crude oil and
feedstocks throughput (bpd in thousands)
|
870.9
|
|
|
775.5
|
|
|
807.4
|
|
|
727.7
|
|
Total crude oil and
feedstocks throughput (millions of barrels)
|
80.1
|
|
|
71.3
|
|
|
294.7
|
|
|
266.4
|
|
Gross margin per
barrel of throughput
|
$
|
4.39
|
|
|
$
|
2.85
|
|
|
$
|
3.53
|
|
|
$
|
2.73
|
|
Gross refining
margin, excluding special items, per barrel of throughput (Note 5,
Note 13)
|
$
|
7.06
|
|
|
$
|
5.80
|
|
|
$
|
8.08
|
|
|
$
|
6.09
|
|
Refinery operating
expense per barrel of throughput (Note 14)
|
$
|
5.02
|
|
|
$
|
5.86
|
|
|
$
|
5.52
|
|
|
$
|
5.22
|
|
Crude and
feedstocks (% of total throughput) (Note 15)
|
|
|
|
|
|
|
|
|
Heavy
|
33
|
%
|
|
36
|
%
|
|
34
|
%
|
|
26
|
%
|
|
Medium
|
30
|
%
|
|
32
|
%
|
|
30
|
%
|
|
37
|
%
|
|
Light
|
23
|
%
|
|
18
|
%
|
|
21
|
%
|
|
25
|
%
|
|
Other feedstocks and
blends
|
14
|
%
|
|
14
|
%
|
|
15
|
%
|
|
12
|
%
|
|
|
Total
throughput
|
100
|
%
|
|
100
|
%
|
|
100
|
%
|
|
100
|
%
|
Yield (% of total
throughput):
|
|
|
|
|
|
|
|
|
Gasoline and gasoline
blendstocks
|
51
|
%
|
|
52
|
%
|
|
50
|
%
|
|
50
|
%
|
|
Distillates and
distillate blendstocks
|
31
|
%
|
|
32
|
%
|
|
30
|
%
|
|
31
|
%
|
|
Lubes
|
1
|
%
|
|
1
|
%
|
|
1
|
%
|
|
1
|
%
|
|
Chemicals
|
2
|
%
|
|
3
|
%
|
|
2
|
%
|
|
3
|
%
|
|
Other
|
15
|
%
|
|
13
|
%
|
|
16
|
%
|
|
15
|
%
|
|
|
Total
yield
|
100
|
%
|
|
101
|
%
|
|
99
|
%
|
|
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
|
|
Year
Ended
|
|
|
|
|
|
|
December
31,
|
|
December
31,
|
|
|
|
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
Supplemental
Operating Information - East Coast (Delaware City and
Paulsboro)
|
|
|
|
|
|
|
|
Production (bpd in
thousands)
|
359.3
|
|
|
323.6
|
|
|
332.5
|
|
|
322.9
|
|
Crude oil and
feedstocks throughput (bpd in thousands)
|
362.4
|
|
|
324.5
|
|
|
338.2
|
|
|
327.0
|
|
Total crude oil and
feedstocks throughput (millions of barrels)
|
33.3
|
|
|
29.9
|
|
|
123.4
|
|
|
119.7
|
|
Gross margin per
barrel of throughput
|
$
|
1.46
|
|
|
$
|
2.01
|
|
|
$
|
0.89
|
|
|
$
|
1.28
|
|
Gross refining
margin, excluding special items, per barrel of throughput (Note 5,
Note 13)
|
$
|
4.02
|
|
|
$
|
4.66
|
|
|
$
|
5.46
|
|
|
$
|
5.07
|
|
Refinery operating
expense per barrel of throughput (Note 14)
|
$
|
4.28
|
|
|
$
|
4.40
|
|
|
$
|
4.44
|
|
|
$
|
4.42
|
|
Crude and
feedstocks (% of total throughput) (Note 15):
|
|
|
|
|
|
|
|
|
Heavy
|
26
|
%
|
|
35
|
%
|
|
31
|
%
|
|
22
|
%
|
|
Medium
|
44
|
%
|
|
38
|
%
|
|
40
|
%
|
|
52
|
%
|
|
Light
|
12
|
%
|
|
10
|
%
|
|
11
|
%
|
|
11
|
%
|
|
Other feedstocks and
blends
|
18
|
%
|
|
17
|
%
|
|
18
|
%
|
|
15
|
%
|
|
|
Total
throughput
|
100
|
%
|
|
100
|
%
|
|
100
|
%
|
|
100
|
%
|
Yield (% of total
throughput):
|
|
|
|
|
|
|
|
|
Gasoline and gasoline
blendstocks
|
48
|
%
|
|
47
|
%
|
|
46
|
%
|
|
47
|
%
|
|
Distillates and
distillate blendstocks
|
33
|
%
|
|
35
|
%
|
|
31
|
%
|
|
31
|
%
|
|
Lubes
|
2
|
%
|
|
2
|
%
|
|
2
|
%
|
|
2
|
%
|
|
Chemicals
|
1
|
%
|
|
2
|
%
|
|
1
|
%
|
|
2
|
%
|
|
Other
|
15
|
%
|
|
14
|
%
|
|
18
|
%
|
|
17
|
%
|
|
|
Total
yield
|
99
|
%
|
|
100
|
%
|
|
98
|
%
|
|
99
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental
Operating Information - Mid-Continent (Toledo)
|
|
|
|
|
|
|
|
Production (bpd in
thousands)
|
143.8
|
|
|
143.1
|
|
|
148.2
|
|
|
161.8
|
|
Crude oil and
feedstocks throughput (bpd in thousands)
|
141.5
|
|
|
139.3
|
|
|
145.2
|
|
|
159.1
|
|
Total crude oil and
feedstocks throughput (millions of barrels)
|
13.0
|
|
|
12.8
|
|
|
53.0
|
|
|
58.3
|
|
Gross margin per
barrel of throughput
|
$
|
9.17
|
|
|
$
|
1.59
|
|
|
$
|
5.52
|
|
|
$
|
2.57
|
|
Gross refining
margin, excluding special items, per barrel of throughput (Note 5,
Note 13)
|
$
|
12.17
|
|
|
$
|
3.22
|
|
|
$
|
10.28
|
|
|
$
|
5.28
|
|
Refinery operating
expense per barrel of throughput (Note 14)
|
$
|
5.33
|
|
|
$
|
5.29
|
|
|
$
|
5.24
|
|
|
$
|
4.59
|
|
Crude and
feedstocks (% of total throughput) (Note 15):
|
|
|
|
|
|
|
|
|
Medium
|
36
|
%
|
|
43
|
%
|
|
37
|
%
|
|
36
|
%
|
|
Light
|
63
|
%
|
|
56
|
%
|
|
61
|
%
|
|
62
|
%
|
|
Other feedstocks and
blends
|
1
|
%
|
|
1
|
%
|
|
2
|
%
|
|
2
|
%
|
|
|
Total
throughput
|
100
|
%
|
|
100
|
%
|
|
100
|
%
|
|
100
|
%
|
Yield (% of total
throughput):
|
|
|
|
|
|
|
|
|
Gasoline and gasoline
blendstocks
|
55
|
%
|
|
55
|
%
|
|
54
|
%
|
|
53
|
%
|
|
Distillates and
distillate blendstocks
|
33
|
%
|
|
36
|
%
|
|
33
|
%
|
|
35
|
%
|
|
Chemicals
|
6
|
%
|
|
6
|
%
|
|
6
|
%
|
|
5
|
%
|
|
Other
|
8
|
%
|
|
6
|
%
|
|
9
|
%
|
|
9
|
%
|
|
|
Total
yield
|
102
|
%
|
|
103
|
%
|
|
102
|
%
|
|
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
|
|
Year
Ended
|
|
|
|
|
|
|
December
31,
|
|
December
31,
|
|
|
|
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
Supplemental
Operating Information - Gulf Coast (Chalmette)
|
|
|
|
|
|
|
|
Production (bpd in
thousands)
|
187.7
|
|
|
168.8
|
|
|
182.3
|
|
|
175.6
|
|
Crude oil and
feedstocks throughput (bpd in thousands)
|
190.1
|
|
|
163.5
|
|
|
184.5
|
|
|
169.3
|
|
Total crude oil and
feedstocks throughput (millions of barrels)
|
17.5
|
|
|
15.0
|
|
|
67.4
|
|
|
61.9
|
|
Gross margin per
barrel of throughput
|
$
|
2.92
|
|
|
$
|
2.18
|
|
|
$
|
3.68
|
|
|
$
|
2.69
|
|
Gross refining
margin, excluding special items, per barrel of throughput (Note 5,
Note 13)
|
$
|
6.12
|
|
|
$
|
6.10
|
|
|
$
|
8.34
|
|
|
$
|
6.67
|
|
Refinery operating
expense per barrel of throughput (Note 14)
|
$
|
4.51
|
|
|
$
|
6.37
|
|
|
$
|
4.84
|
|
|
$
|
5.55
|
|
Crude and
feedstocks (% of total throughput) (Note 15):
|
|
|
|
|
|
|
|
|
Heavy
|
36
|
%
|
|
35
|
%
|
|
38
|
%
|
|
38
|
%
|
|
Medium
|
16
|
%
|
|
29
|
%
|
|
22
|
%
|
|
20
|
%
|
|
Light
|
35
|
%
|
|
17
|
%
|
|
25
|
%
|
|
26
|
%
|
|
Other feedstocks and
blends
|
13
|
%
|
|
19
|
%
|
|
15
|
%
|
|
16
|
%
|
|
|
Total
throughput
|
100
|
%
|
|
100
|
%
|
|
100
|
%
|
|
100
|
%
|
Yield (% of total
throughput):
|
|
|
|
|
|
|
|
|
Gasoline and gasoline
blendstocks
|
44
|
%
|
|
48
|
%
|
|
45
|
%
|
|
47
|
%
|
|
Distillates and
distillate blendstocks
|
32
|
%
|
|
31
|
%
|
|
32
|
%
|
|
31
|
%
|
|
Chemicals
|
2
|
%
|
|
6
|
%
|
|
2
|
%
|
|
6
|
%
|
|
Other
|
21
|
%
|
|
15
|
%
|
|
20
|
%
|
|
16
|
%
|
|
|
Total
yield
|
99
|
%
|
|
100
|
%
|
|
99
|
%
|
|
100
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental
Operating Information - West Coast (Torrance)
|
|
|
|
|
|
|
|
Production (bpd in
thousands)
|
181.5
|
|
|
150.6
|
|
|
139.9
|
|
|
147.1
|
|
Crude oil and
feedstocks throughput (bpd in thousands)
|
176.9
|
|
|
148.2
|
|
|
139.5
|
|
|
143.9
|
|
Total crude oil and
feedstocks throughput (millions of barrels)
|
16.3
|
|
|
13.6
|
|
|
50.9
|
|
|
26.5
|
|
Gross margin per
barrel of throughput
|
$
|
4.24
|
|
|
$
|
2.18
|
|
|
$
|
2.84
|
|
|
$
|
3.00
|
|
Gross refining
margin, excluding special items, per barrel of throughput (Note 5,
Note 13)
|
$
|
10.24
|
|
|
$
|
10.36
|
|
|
$
|
11.80
|
|
|
$
|
11.14
|
|
Refinery operating
expense per barrel of throughput (Note 14)
|
$
|
6.85
|
|
|
$
|
9.04
|
|
|
$
|
9.35
|
|
|
$
|
9.46
|
|
Crude and
feedstocks (% of total throughput) (Note 15):
|
|
|
|
|
|
|
|
|
Heavy
|
77
|
%
|
|
74
|
%
|
|
74
|
%
|
|
77
|
%
|
|
Medium
|
7
|
%
|
|
11
|
%
|
|
8
|
%
|
|
9
|
%
|
|
Other feedstocks and
blends
|
16
|
%
|
|
15
|
%
|
|
18
|
%
|
|
14
|
%
|
|
|
Total
throughput
|
100
|
%
|
|
100
|
%
|
|
100
|
%
|
|
100
|
%
|
Yield (% of total
throughput):
|
|
|
|
|
|
|
|
|
Gasoline and gasoline
blendstocks
|
62
|
%
|
|
63
|
%
|
|
64
|
%
|
|
62
|
%
|
|
Distillates and
distillate blendstocks
|
27
|
%
|
|
25
|
%
|
|
22
|
%
|
|
25
|
%
|
|
Other
|
14
|
%
|
|
14
|
%
|
|
14
|
%
|
|
16
|
%
|
|
|
Total
yield
|
103
|
%
|
|
102
|
%
|
|
100
|
%
|
|
103
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See Footnotes to
Earnings Release Tables
|
PBF ENERGY INC.
AND SUBSIDIARIES
|
RECONCILIATION OF
AMOUNTS REPORTED UNDER U.S. GAAP
|
GROSS REFINING
MARGIN / GROSS REFINING MARGIN PER BARREL OF THROUGHPUT (Note
13)
|
(Unaudited, in
thousands, except per barrel amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
December 31,
2017
|
|
December 31,
2016
|
RECONCILIATION OF
GROSS MARGIN TO GROSS REFINING MARGIN
AND GROSS REFINING MARGIN EXCLUDING SPECIAL ITEMS
|
$
|
|
per barrel of
throughput
|
|
$
|
|
per barrel of
throughput
|
Calculation of
gross margin:
|
|
|
|
|
|
|
|
Revenues
|
$
|
6,535,988
|
|
|
$
|
81.58
|
|
|
$
|
4,748,568
|
|
|
$
|
66.56
|
|
|
Less: Cost of
products and other
|
5,709,100
|
|
|
71.26
|
|
|
4,074,222
|
|
|
57.11
|
|
|
Less: Refinery
operating expense
|
402,602
|
|
|
5.02
|
|
|
418,359
|
|
|
5.86
|
|
|
Less: Refinery
depreciation expense
|
73,033
|
|
|
0.91
|
|
|
52,532
|
|
|
0.74
|
|
Gross
margin
|
$
|
351,253
|
|
|
$
|
4.39
|
|
|
$
|
203,455
|
|
|
$
|
2.85
|
|
|
Less: Revenues of
PBFX
|
(66,513)
|
|
|
(0.83)
|
|
|
(61,694)
|
|
|
(0.86)
|
|
|
Add: Affiliate Cost
of sales of PBFX
|
3,407
|
|
|
0.04
|
|
|
1,215
|
|
|
0.02
|
|
|
Add: Refinery
operating expense
|
402,602
|
|
|
5.02
|
|
|
418,359
|
|
|
5.86
|
|
|
Add: Refinery
depreciation expense
|
73,033
|
|
|
0.91
|
|
|
52,532
|
|
|
0.74
|
|
Gross refining
margin
|
$
|
763,782
|
|
|
$
|
9.53
|
|
|
$
|
613,867
|
|
|
$
|
8.61
|
|
Special Items (Note
5):
|
|
|
|
|
|
|
|
|
Add: Non-cash LCM
inventory adjustment (Note 6)
|
(197,589)
|
|
|
(2.47)
|
|
|
(200,515)
|
|
|
(2.81)
|
|
Gross refining
margin excluding special items (Note 5)
|
$
|
566,193
|
|
|
$
|
7.06
|
|
|
$
|
413,352
|
|
|
$
|
5.80
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year
Ended
|
|
Year
Ended
|
|
December 31,
2017
|
|
December 31,
2016
|
RECONCILIATION OF
GROSS MARGIN TO GROSS REFINING MARGIN
AND GROSS REFINING MARGIN EXCLUDING SPECIAL ITEMS
|
$
|
|
per barrel of
throughput
|
|
$
|
|
per barrel of
throughput
|
Calculation of
gross margin:
|
|
|
|
|
|
|
|
Revenues
|
$
|
21,786,637
|
|
|
$
|
73.92
|
|
|
$
|
15,920,424
|
|
|
$
|
59.77
|
|
|
Less: Cost of
products and other
|
18,863,621
|
|
|
64.01
|
|
|
13,598,341
|
|
|
51.05
|
|
|
Less: Refinery
operating expense
|
1,627,616
|
|
|
5.52
|
|
|
1,390,582
|
|
|
5.22
|
|
|
Less: Refinery
depreciation expense
|
254,271
|
|
|
0.86
|
|
|
204,005
|
|
|
0.77
|
|
Gross
margin
|
1,041,129
|
|
|
3.53
|
|
|
727,496
|
|
|
2.73
|
|
|
Less: Revenues of
PBFX
|
(254,813)
|
|
|
(0.86)
|
|
|
(187,335)
|
|
|
(0.70)
|
|
|
Add: Affiliate Cost
of sales of PBFX
|
8,448
|
|
|
0.03
|
|
|
8,701
|
|
|
0.03
|
|
|
Add: Refinery
operating expense
|
1,627,616
|
|
|
5.52
|
|
|
1,390,582
|
|
|
5.22
|
|
|
Add: Refinery
depreciation expense
|
254,271
|
|
|
0.86
|
|
|
204,005
|
|
|
0.77
|
|
Gross refining
margin
|
$
|
2,676,651
|
|
|
$
|
9.08
|
|
|
$
|
2,143,449
|
|
|
$
|
8.05
|
|
Special Items (Note
5):
|
|
|
|
|
|
|
|
|
Add: Non-cash LCM
inventory adjustment (Note 6)
|
(295,532)
|
|
|
(1.00)
|
|
|
(521,348)
|
|
|
(1.96)
|
|
Gross refining
margin excluding special items (Note 5)
|
$
|
2,381,119
|
|
|
$
|
8.08
|
|
|
$
|
1,622,101
|
|
|
$
|
6.09
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See Footnotes to
Earnings Release Tables
|
PBF ENERGY INC.
AND SUBSIDIARIES
|
EARNINGS RELEASE
TABLES
|
FOOTNOTES TO
EARNINGS RELEASE TABLES
|
|
(1) During the third
quarter of 2017, we determined that we would revise the
presentation of certain line items on our consolidated statements
of operations to enhance our disclosure under the requirements of
Rule 5-03 of Regulation S-X. The revised presentation is comprised
of the inclusion of a subtotal within costs and expenses referred
to as "Cost of sales" and the reclassification of total
depreciation and amortization expense between such amounts
attributable to cost of sales and other operating costs and
expenses. The amount of depreciation and amortization expense that
is presented separately within the "Cost of sales" subtotal
represents depreciation and amortization of refining and logistics
assets that are integral to the refinery production process. The
historical comparative information has been revised to conform to
the current presentation. This revised presentation does not have
an effect on our historical consolidated income from operations or
net income, nor does it have any impact on our consolidated balance
sheets, statements of comprehensive income or statements of cash
flows.
|
|
(2) Adjusted
fully-converted information is presented in this table as
management believes that these Non-GAAP measures, when presented in
conjunction with comparable GAAP measures, are useful to investors
to compare our results across the periods presented and facilitates
an understanding of our operating results. We also use these
measures to evaluate our operating performance. These measures
should not be considered a substitute for, or superior to, measures
of financial performance prepared in accordance with GAAP. The
differences between adjusted fully-converted and GAAP results are
explained in footnotes 3 through 9.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(3) 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.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(4) Represents an
adjustment to reflect our statutory corporate tax rate of
approximately 39.6% and 39.1% for the 2017 and 2016 periods,
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 3. Our statutory tax
rates will be reduced in future periods as a result of the TCJA
enactment (as defined below).
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(5) 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, changes in the tax receivable agreement liability
("TRA"), debt extinguishment costs, a net tax benefit related to
the Tax Cuts and Jobs Act (the "TCJA") and a net tax expense
associated with the remeasurement of TRA associated deferred tax
assets as further described below:
(a) 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.
(b) Changes in the TRA
reflect charges or benefits attributable to changes in our
obligation under the TRA due to factors out of our control such as
changes in tax rates.
(c) 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.
(d) On December 22, 2017, the U.S. government enacted the TCJA. The
TCJA makes broad and complex changes to the U.S. tax code,
including, but not limited to reducing the U.S. federal corporate
tax rate from 35 percent to 21 percent. Under GAAP, we are required
to recognize the effect of the TCJA in the period of enactment.
These effects resulted in a net tax expense associated with the
remeasurement of TRA associated deferred tax assets and a net tax
benefit for the reduction of our deferred tax liabilities as a
result of the TCJA.
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.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(6) The following
table includes the lower of cost or market inventory reserve as of
each date presented (in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2017
|
|
2016
|
January 1,
|
$
|
595,988
|
|
|
$
|
1,117,336
|
|
September
30,
|
498,045
|
|
|
796,503
|
|
December
31,
|
300,456
|
|
|
595,988
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 (in thousands):
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Year
Ended
|
|
|
|
|
|
|
|
|
December
31,
|
|
December
31,
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
Net LCM inventory
adjustment
benefit in operating income
|
$
|
197,589
|
|
|
$
|
200,515
|
|
|
$
|
295,532
|
|
|
$
|
521,348
|
|
Net LCM inventory
adjustment benefit in net income
|
119,326
|
|
|
122,192
|
|
|
178,475
|
|
|
317,704
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Additionally, during
both the three months and year ended December 31, 2017 we recorded
a change in TRA that increased operating income by $250.4 million
and 250.9 million ($151.2 million and 151.5 million, net of tax),
respectively.
During the three
months and year ended December 31, 2016 we recorded a change in TRA
that increased operating income by $16.1 million and $12.9 million
($9.8 million and $7.8 million, net of tax),
respectively.
|
|
Furthermore, during
the year ended December 31, 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 year ended December 31, 2017.
There were no such costs in the year ended December 31, 2016 nor in
the three months ended December 31, 2017 and 2016.
|
|
The income tax impact
of the special items, other than TCJA related items discussed in
footnote 7 below, were calculated using the tax rates shown in
footnote 4 above.
|
|
(7) The Company made
a one-time adjustment to deferred tax assets and liabilities in
relation to the TCJA. The net income tax expense impact of $20.2
million consists of a net tax expense of $193.5 million associated
with the remeasurement of TRA associated deferred tax assets and a
net tax benefit of $173.3 million for the reduction of our deferred
tax liabilities as a result of the TCJA.
|
|
(8) 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 3 above.
|
|
(9) 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 (to the
extent the impact of such exchange would not be anti-dilutive) for
the three months and years ended December 31, 2017 and 2016,
respectively. Common stock equivalents exclude the effects of
options and warrants to purchase 3,537,500 and 6,820,275 shares of
PBF Energy Class A common stock and PBF LLC Series A Units because
they are anti-dilutive for the three months and year ended December
31, 2017, respectively. Common stock equivalents exclude the
effects of options and warrants to purchase 5,923,625 and 5,701,750
shares of PBF Energy Class A common stock and PBF LLC Series A
Units because they are anti-dilutive for the three months and year
ended December 31, 2016, respectively.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(10) 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.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(11) 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 December 31, 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
Paulsboro Natural Gas Pipeline Company LLC ("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.
|
|
(12) As
reported by Platts.
|
|
(13) 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.
|
|
(14) Represents
refinery operating expenses, including corporate-owned logistics
assets, excluding depreciation and amortization, divided by total
crude oil and feedstocks throughput.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(15) 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.
|
|
(16) The Refining
segment includes capital expenditures of $971.9 million related to
the acquisition of the Torrance refinery and related logistic
assets that was completed in the third quarter of 2016.
Additionally, 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.The Logistics segment includes capital
expenditures of $98.4 million for the PBFX Plains Asset Purchase in
the second quarter of 2016.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(17) The Logistics
segment includes capital expenditures of $10.1 million for the
acquisition of the Toledo Terminal by PBFX on April 17,
2017.
|
|
(18) The total debt
to capitalization ratio is calculated by dividing total debt by the
sum of total debt and total equity. This ratio is a measurement
that management believes is useful to investors in analyzing our
leverage. Net debt and the net debt to capitalization ratio are
Non-GAAP measures. Net debt is calculated by subtracting cash and
cash equivalents 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
5 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.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December
31,
|
|
December
31,
|
(In
thousands)
|
2017
|
|
2016
|
Total debt
|
$
|
2,191,650
|
|
|
$
|
2,148,234
|
|
Total
equity
|
2,902,949
|
|
|
2,570,684
|
|
Total
capitalization
|
$
|
5,094,599
|
|
|
$
|
4,718,918
|
|
|
|
|
|
Total debt
|
$
|
2,191,650
|
|
|
$
|
2,148,234
|
|
Total equity,
excluding special items
|
2,950,154
|
|
|
2,912,375
|
|
Total capitalization,
excluding special items
|
$
|
5,141,804
|
|
|
$
|
5,060,609
|
|
|
|
|
|
Total
equity
|
$
|
2,902,949
|
|
|
$
|
2,570,684
|
|
Special items (Note
5):
|
|
|
|
Add: Non-cash
LCM inventory adjustment (Note 6)
|
300,456
|
|
|
595,988
|
|
Add: Change in
tax receivable agreement liability (Note 6)
|
(276,430)
|
|
|
(25,508)
|
|
Add: Debt
extinguishment costs (Note 6)
|
25,451
|
|
|
—
|
|
Add:
Recomputed income taxes on special items (Note 6)
|
(22,425)
|
|
|
(228,789)
|
|
Add: Net tax
expense on TCJA related special items (Note 7)
|
20,153
|
|
|
—
|
|
Net impact of
special items to equity
|
$
|
47,205
|
|
|
$
|
341,691
|
|
Total equity,
excluding special items (Note 5)
|
$
|
2,950,154
|
|
|
$
|
2,912,375
|
|
|
|
|
|
Total debt
|
$
|
2,191,650
|
|
|
$
|
2,148,234
|
|
Less: Cash,
cash equivalents and marketable securities
|
573,021
|
|
|
786,298
|
|
Net debt
|
$
|
1,618,629
|
|
|
$
|
1,361,936
|
|
|
|
|
|
Total debt to
capitalization ratio
|
43
|
%
|
|
46
|
%
|
Total debt to
capitalization ratio, excluding special items
|
43
|
%
|
|
42
|
%
|
Net debt to
capitalization ratio
|
36
|
%
|
|
35
|
%
|
Net debt to
capitalization ratio, excluding special items
|
35
|
%
|
|
32
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(19) 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.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(20) 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.