PARSIPPANY, N.J., March 30, 2020 /PRNewswire/ -- PBF Energy
Inc. (NYSE: PBF) today announced a number of decisive steps taken
as part of a strategic plan for PBF to navigate current
extraordinary and volatile markets. The company has taken the
following aggressive steps to increase PBF's flexibility and
responsiveness:
- Entered into a letter of intent with Air Products and
Chemicals, Inc. (NYSE: APD) to monetize five hydrogen plants for
cash proceeds of $530 million, with a
targeted transaction close in April. PBF will enter into off-take
arrangements for hydrogen on terms in line with similar
arrangements in place throughout its refining system;
- Reducing Capital Expenditures by $240
million, a 35% reduction to our previous 2020 guidance,
including the Martinez refinery, and a more than 45% reduction of
our projected spend for the remainder of 2020. We intend to satisfy
all required safety, environmental and regulatory capital
commitments;
- Lowering 2020 operating expenses by approximately $125 million, driven by a significant reduction
in discretionary activities and third party services;
- Reducing corporate overhead expenses by over $20 million on an annual basis primarily through
salary reductions. Specifically, the Board and Executive Leadership
have reduced their compensation by 50%, while Chairman and CEO
Thomas Nimbley's salary has been
reduced by 67%. In addition, more than 50% of our corporate and
non-represented employees have also reduced their salaries;
and
- Suspending PBF's quarterly dividend of $0.30 per share, anticipated to preserve
approximately $35 million of cash
each quarter to support the balance sheet.
"The board and management of PBF Energy have acted swiftly and
decisively to secure our business in these unprecedented markets.
We are also taking necessary steps to ensure the safety of our
employees," said PBF's Chairman and Chief Executive Officer
Tom Nimbley. "We are focused on
generating and preserving the liquidity needed for the duration of
the near-term, economic impacts of stay-at-home orders and the
longer-term recovery of demand for our products. Discussions
with suppliers and service providers are actively occurring and
we're grateful for their cooperation. We have not taken any
of these decisions lightly and recognize how our decisions affect
others. We will continue to adjust our operations to the
evolving market conditions and will provide further updates as
appropriate."
Throughput Guidance
As a result of changing markets,
our previously-provided throughput guidance is withdrawn. We are
currently operating our refineries at minimum rates, a throughput
reduction of approximately 30 percent versus our
expectations. As the market conditions develop and the demand
outlook becomes clearer, we will continue to adjust our operations
in response.
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 include, without limitation, the company's plans,
objectives, expectations and intentions with respect to future
earnings and operations. 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. All forward-looking statements
speak only as of the date hereof. The company undertakes no
obligation to revise or update any forward-looking statements
except as may be required by applicable law.
About PBF Energy Inc.
PBF Energy Inc. (NYSE: PBF) is
one of the largest independent refiners in North America, operating, through its
subsidiaries, oil refineries and related facilities in California, Delaware, Louisiana, New
Jersey and Ohio. Our
mission is to operate our facilities in a safe, reliable and
environmentally responsible manner, provide employees with a safe
and rewarding workplace, become a positive influence in the
communities where we do business, and provide superior returns to
our investors.
PBF Energy Inc. also currently indirectly owns the general
partner and approximately 48% of the limited partnership interest
of PBF Logistics LP (NYSE: PBFX).
View original content to download
multimedia:http://www.prnewswire.com/news-releases/pbf-energy-announces-planned-530-million-hydrogen-plant-sales-reduction-in-2020-cash-outlays-by-over-500-million-through-lowered-capital-and-operating-expenses-dividend-suspension-and-other-deferrals-301031415.html
SOURCE PBF Energy Inc.