PARSIPPANY, N.J., Aug. 1, 2019 /PRNewswire/ -- PBF Energy Inc.
(NYSE: PBF) today reported second quarter 2019 income from
operations of $9.5 million as
compared to income from operations of $422.3
million for the second quarter of 2018. Excluding special
items, second quarter 2019 income from operations was $191.5 million as compared to income from
operations of $264.3 million for the
second quarter of 2018. PBF Energy's financial results reflect the
consolidation of PBF Logistics LP (NYSE: PBFX), a master limited
partnership of which PBF indirectly owns the general partner and
approximately 48% of the limited partner interests as of
quarter-end.
The company reported second quarter 2019 net loss of
$21.6 million and net loss
attributable to PBF Energy Inc. of $32.2
million or $(0.27) per share.
This compares to net income of $287.7
million, and net income attributable to PBF Energy Inc. of
$272.1 million or $2.37 per share for the second quarter 2018.
Special items included in the second quarter 2019 results, which
decreased net income by a net, after-tax loss of $133.8 million, or $1.10 per share, consisted of a
lower-of-cost-or-market ("LCM") inventory adjustment. Adjusted
fully-converted net income for the second quarter 2019, excluding
special items, was $101.1 million, or
$0.83 per share on a fully-exchanged,
fully-diluted basis, as described below, compared to adjusted
fully-converted net income of $160.2
million or $1.38 per share,
for the second quarter 2018.
Tom Nimbley, PBF Energy's
Chairman and CEO, said, "PBF delivered a solid financial quarter
and we completed 100% of our planned major maintenance for the
year. While we did have extended turnaround downtime on the East
Coast during the quarter, our refineries are well positioned to
operate unimpeded for the remainder of the year." Mr. Nimbley
continued, "In addition to the work completed on our existing
assets, in June we announced our pending acquisition of the
Martinez refinery. We are looking forward to closing the
transaction by year-end and welcoming the Martinez employees to the
PBF family."
Martinez Refinery Acquisition
On June 11, 2019, PBF announced that its subsidiary
signed a definitive agreement to purchase the 157,000
barrel-per-day Martinez refinery, and related logistics assets,
from Equilon Enterprises LLC d/b/a Shell Oil Products US (the
"Seller" or "Shell"). With the closing of the acquisition, PBF's
total throughput capacity will increase to over one million barrels
per day and its refining system will have a consolidated Nelson
Complexity of 12.8.
Based on timing of close, the upfront acquisition price will be
between $900.0 million and
$1.0 billion. In addition to
the upfront consideration, there are a number of unique transaction
terms that drive incremental value for PBF and reduce our invested
capital. The Martinez transaction is expected to close by the
end of 2019, subject to customary closing conditions and regulatory
approvals.
Drop-down transaction
On May
31, 2019, PBF Logistics LP completed the previously
announced transaction to acquire the remaining fifty percent
interest in Torrance Valley Pipeline Company LLC ("TVPC") from an
affiliate of PBF for total consideration of approximately
$200 million in cash.
TVPC owns the 189-mile San Joaquin Valley Pipeline system with a
throughput capacity of approximately 110,000 barrels per day. The
system is comprised of the M55, M1 and M70 pipelines which are the
primary crude gathering and transportation lines that supply PBF
Energy's Torrance refinery. The assets also include 11 pipeline
stations with approximately one million barrels of combined storage
capacity and truck unloading capability at two of the stations.
PBF Energy Inc. Declares Dividend
The company
announced today that it will pay a quarterly dividend of
$0.30 per share of Class A common
stock on August 30, 2019, to holders
of record as of August 15, 2019.
Outlook
For the third quarter 2019, we expect East
Coast total throughput to average 350,000 to 370,000 barrels per
day; Mid-Continent total throughput is expected to average 155,000
to 165,000 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 170,000 to 180,000 barrels per
day.
For the full-year 2019, we expect East Coast total throughput to
average 330,000 to 350,000 barrels per day; Mid-Continent total
throughput is expected to average 150,000 to 160,000 barrels per
day; Gulf Coast total throughput is expected to average 180,000 to
190,000 barrels per day and West Coast total throughput is expected
to average 150,000 to 160,000 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, Income from operations excluding special
items, gross refining margin, gross refining margin excluding
special items, gross refining margin per barrel of throughput,
EBITDA (Earnings before Interest, Income Taxes, Depreciation and
Amortization), EBITDA excluding special items and Adjusted EBITDA.
PBF believes that Non-GAAP financial measures provide useful
information about its operating performance and financial results.
However, these measures have important limitations as analytical
tools and should not be viewed in isolation or considered as
alternatives for, or superior to, comparable GAAP financial
measures. PBF's Non-GAAP financial measures may also differ from
similarly named measures used by other companies. See the
accompanying tables and footnotes in this release for additional
information on the Non-GAAP measures used in this release and
reconciliations to the most directly comparable GAAP measures.
Conference Call Information
PBF Energy's senior
management will host a conference call and webcast regarding
quarterly results and other business matters on Thursday,
August 1, 2019, at 8:30 a.m. ET.
The call is being webcast and can be accessed at PBF Energy's
website, http://www.pbfenergy.com. The call can also be
accessed by dialing (866) 342-8591 or (203) 518-9713, conference
ID: PBFQ219. The audio replay will be available two hours
after the end of the call through August 15,
2019, by dialing (800) 723-5792 or (402) 220-2664.
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; risks associated with the
Company's ability to consummate the pending Martinez Acquisition,
the timing for the closing of such acquisition, and the Company's
plans for financing such acquisition; and the impact of adverse
market conditions affecting the company, unanticipated
developments, regulatory approvals, changes in laws and other
events that negatively impact the company. All forward-looking
statements speak only as of the date hereof. The company undertakes
no obligation to revise or update any forward-looking statements
except as may be required by applicable law.
About PBF Energy Inc.
PBF Energy Inc. (NYSE:PBF) is
one of the largest independent refiners in North America, operating, through its
subsidiaries, oil refineries and related facilities in California, Delaware, Louisiana, New
Jersey and Ohio. Our
mission is to operate our facilities in a safe, reliable and
environmentally responsible manner, provide employees with a safe
and rewarding workplace, become a positive influence in the
communities where we do business, and provide superior returns to
our investors.
PBF Energy Inc. also currently indirectly owns the general
partner and approximately 48% of the limited partnership interest
of PBF Logistics LP (NYSE: PBFX).
PBF ENERGY INC.
AND SUBSIDIARIES
|
EARNINGS RELEASE
TABLES
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
(Unaudited, in
millions, except share and per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
|
|
|
|
|
June
30,
|
|
June
30,
|
|
|
|
|
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
Revenues
|
|
$
|
6,560.0
|
|
|
$
|
7,444.1
|
|
|
$
|
11,776.2
|
|
|
$
|
13,246.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost and
expenses:
|
|
|
|
|
|
|
|
|
|
Cost of products and
other
|
|
5,955.8
|
|
|
6,452.5
|
|
|
10,165.0
|
|
|
11,584.6
|
|
|
Operating expenses
(excluding depreciation and
amortization expense as reflected below)
|
|
433.2
|
|
|
417.7
|
|
|
912.2
|
|
|
843.8
|
|
|
Depreciation and
amortization expense
|
|
104.2
|
|
|
89.7
|
|
|
207.2
|
|
|
173.0
|
|
Cost of
sales
|
|
6,493.2
|
|
|
6,959.9
|
|
|
11,284.4
|
|
|
12,601.4
|
|
|
General and
administrative expenses (excluding
depreciation and amortization expense as reflected
below)
|
|
53.6
|
|
|
58.7
|
|
|
111.2
|
|
|
121.5
|
|
|
Depreciation and
amortization expense
|
|
2.9
|
|
|
2.6
|
|
|
5.7
|
|
|
5.3
|
|
|
Loss on sale of
assets
|
|
0.8
|
|
|
0.6
|
|
|
0.8
|
|
|
0.7
|
|
Total cost and
expenses
|
|
6,550.5
|
|
|
7,021.8
|
|
|
11,402.1
|
|
|
12,728.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from
operations
|
|
9.5
|
|
|
422.3
|
|
|
374.1
|
|
|
518.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income
(expense):
|
|
|
|
|
|
|
|
|
|
|
Change in fair value
of catalyst leases
|
|
0.5
|
|
|
4.1
|
|
|
(2.6)
|
|
|
4.1
|
|
|
Interest expense,
net
|
|
(42.1)
|
|
|
(43.4)
|
|
|
(81.6)
|
|
|
(86.6)
|
|
|
Other non-service
components of net periodic benefit
cost
|
|
|
—
|
|
|
0.2
|
|
|
(0.1)
|
|
|
0.5
|
|
Income (loss)
before income taxes
|
|
(32.1)
|
|
|
383.2
|
|
|
289.8
|
|
|
436.0
|
|
Income tax
(benefit) expense
|
|
(10.5)
|
|
|
95.5
|
|
|
70.0
|
|
|
106.5
|
|
Net income
(loss)
|
|
(21.6)
|
|
|
287.7
|
|
|
219.8
|
|
|
329.5
|
|
|
Less: net income
attributable to noncontrolling interests
|
|
10.6
|
|
|
15.6
|
|
|
22.8
|
|
|
27.0
|
|
Net income (loss)
attributable to PBF Energy Inc.
stockholders
|
|
$
|
(32.2)
|
|
|
$
|
272.1
|
|
|
$
|
197.0
|
|
|
$
|
302.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
available to Class A common stock per
share:
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
(0.27)
|
|
|
$
|
2.41
|
|
|
$
|
1.64
|
|
|
$
|
2.70
|
|
|
|
Diluted
|
|
$
|
(0.27)
|
|
|
$
|
2.37
|
|
|
$
|
1.63
|
|
|
$
|
2.66
|
|
|
|
Weighted-average
shares outstanding-basic
|
|
119,181,845
|
|
|
112,875,813
|
|
|
119,885,386
|
|
|
111,853,774
|
|
|
|
Weighted-average
shares outstanding-diluted
|
|
119,181,845
|
|
|
116,409,273
|
|
|
122,020,444
|
|
|
115,749,927
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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)
|
|
$
|
(32.7)
|
|
|
$
|
276.5
|
|
|
$
|
198.8
|
|
|
$
|
307.6
|
|
|
|
Adjusted
fully-converted net income (loss) per fully
exchanged, fully diluted share
|
|
$
|
(0.27)
|
|
|
$
|
2.37
|
|
|
$
|
1.63
|
|
|
$
|
2.66
|
|
|
|
Adjusted
fully-converted shares outstanding - diluted
(Note 6)
|
|
120,388,170
|
|
|
116,409,273
|
|
|
122,020,444
|
|
|
115,749,927
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See Footnotes to
Earnings Release Tables
|
PBF ENERGY INC.
AND SUBSIDIARIES
|
RECONCILIATION OF
AMOUNTS REPORTED UNDER U.S. GAAP
|
(Unaudited, in
millions, except share and per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RECONCILIATION OF
NET INCOME (LOSS) TO
ADJUSTED FULLY-CONVERTED NET INCOME
(LOSS) AND ADJUSTED FULLY-CONVERTED NET
INCOME (LOSS) EXCLUDING SPECIAL ITEMS
(Note 1)
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
June
30,
|
|
June
30,
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
Net income (loss)
attributable to PBF Energy Inc.
stockholders
|
|
$
|
(32.2)
|
|
|
$
|
272.1
|
|
|
$
|
197.0
|
|
|
$
|
302.5
|
|
|
Less:
|
Income allocated to
participating securities
|
|
0.1
|
|
|
0.2
|
|
|
0.2
|
|
|
0.4
|
|
Income (loss)
available to PBF Energy Inc.
stockholders - basic
|
|
(32.3)
|
|
|
271.9
|
|
|
196.8
|
|
|
302.1
|
|
|
Add:
|
Net income (loss)
attributable to noncontrolling
interest (Note 2)
|
|
(0.5)
|
|
|
6.1
|
|
|
2.7
|
|
|
7.4
|
|
|
Less:
|
Income tax benefit
(expense) (Note 3)
|
|
0.1
|
|
|
(1.5)
|
|
|
(0.7)
|
|
|
(1.9)
|
|
Adjusted
fully-converted net income (loss)
|
|
$
|
(32.7)
|
|
|
$
|
276.5
|
|
|
$
|
198.8
|
|
|
$
|
307.6
|
|
|
Special Items (Note
4):
|
|
|
|
|
|
|
|
|
|
Add:
|
Non-cash LCM
inventory adjustment
|
|
182.0
|
|
|
(158.0)
|
|
|
(324.0)
|
|
|
(245.7)
|
|
|
Less:
|
Recomputed income
taxes on special items (Note
3)
|
|
(48.2)
|
|
|
41.7
|
|
|
85.7
|
|
|
64.9
|
|
Adjusted
fully-converted net income (loss) excluding
special items
|
|
$
|
101.1
|
|
|
$
|
160.2
|
|
|
$
|
(39.5)
|
|
|
$
|
126.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average
shares outstanding of PBF Energy
Inc.
|
|
119,181,845
|
|
|
112,875,813
|
|
|
119,885,386
|
|
|
111,853,774
|
|
Conversion of PBF LLC
Series A Units (Note 5)
|
|
1,206,325
|
|
|
1,838,196
|
|
|
1,206,325
|
|
|
2,681,980
|
|
Common stock
equivalents (Note 6)
|
|
1,501,569
|
|
|
1,695,264
|
|
|
928,733
|
|
|
1,214,173
|
|
Fully-converted
shares outstanding - diluted
|
|
121,889,739
|
|
|
116,409,273
|
|
|
122,020,444
|
|
|
115,749,927
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
fully-converted net income (loss) per fully
exchanged, fully diluted shares outstanding (Note 6)
|
|
$
|
(0.27)
|
|
|
$
|
2.37
|
|
|
$
|
1.63
|
|
|
$
|
2.66
|
|
|
Adjusted
fully-converted net income (loss) excluding
special items per fully exchanged, fully diluted shares
outstanding (Note 4, 6)
|
|
$
|
0.83
|
|
|
$
|
1.38
|
|
|
$
|
(0.33)
|
|
|
$
|
1.10
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
RECONCILIATION OF
INCOME FROM
OPERATIONS TO INCOME FROM OPERATIONS
EXCLUDING SPECIAL ITEMS
|
|
June
30,
|
|
June
30,
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
Income from
operations
|
|
$
|
9.5
|
|
|
$
|
422.3
|
|
|
$
|
374.1
|
|
|
$
|
518.0
|
|
|
Special Items (Note
4):
|
|
|
|
|
|
|
|
|
|
Add:
|
Non-cash LCM
inventory adjustment
|
|
182.0
|
|
|
(158.0)
|
|
|
(324.0)
|
|
|
(245.7)
|
|
Income from
operations excluding special items
|
|
$
|
191.5
|
|
|
$
|
264.3
|
|
|
$
|
50.1
|
|
|
$
|
272.3
|
|
|
See Footnotes to
Earnings Release Tables
|
PBF ENERGY INC.
AND SUBSIDIARIES
|
RECONCILIATION OF
AMOUNTS REPORTED UNDER U.S. GAAP
|
EBITDA
RECONCILIATIONS (Note 7)
|
(Unaudited, in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
|
June
30,
|
|
June
30,
|
RECONCILIATION OF
NET INCOME (LOSS) TO
EBITDA AND EBITDA EXCLUDING SPECIAL
ITEMS
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
Net income
(loss)
|
|
$
|
(21.6)
|
|
|
$
|
287.7
|
|
|
$
|
219.8
|
|
|
$
|
329.5
|
|
Add: Depreciation and
amortization expense
|
|
107.1
|
|
|
92.3
|
|
|
212.9
|
|
|
178.3
|
|
Add: Interest
expense, net
|
|
42.1
|
|
|
43.4
|
|
|
81.6
|
|
|
86.6
|
|
Add: Income tax
(benefit) expense
|
|
(10.5)
|
|
|
95.5
|
|
|
70.0
|
|
|
106.5
|
|
EBITDA
|
|
|
$
|
117.1
|
|
|
$
|
518.9
|
|
|
$
|
584.3
|
|
|
$
|
700.9
|
|
Special Items (Note
4):
|
|
|
|
|
|
|
|
|
Add: Non-cash LCM
inventory adjustment
|
|
182.0
|
|
|
(158.0)
|
|
|
(324.0)
|
|
|
(245.7)
|
|
EBITDA excluding
special items
|
|
$
|
299.1
|
|
|
$
|
360.9
|
|
|
$
|
260.3
|
|
|
$
|
455.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
|
|
|
|
|
|
|
June
30,
|
|
June
30,
|
RECONCILIATION OF
EBITDA TO ADJUSTED
EBITDA
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
EBITDA
|
|
$
|
117.1
|
|
|
$
|
518.9
|
|
|
$
|
584.3
|
|
|
$
|
700.9
|
|
Add: Stock-based
compensation
|
|
12.0
|
|
|
7.9
|
|
|
20.0
|
|
|
13.0
|
|
Add: Net non-cash
change in fair value of catalyst
leases
|
|
(0.5)
|
|
|
(4.1)
|
|
|
2.6
|
|
|
(4.1)
|
|
Add: Non-cash LCM
inventory adjustment (Note 4)
|
|
182.0
|
|
|
(158.0)
|
|
|
(324.0)
|
|
|
(245.7)
|
|
Adjusted
EBITDA
|
|
|
$
|
310.6
|
|
|
$
|
364.7
|
|
|
$
|
282.9
|
|
|
$
|
464.1
|
|
|
See Footnotes to
Earnings Release Tables
|
PBF ENERGY INC.
AND SUBSIDIARIES
|
EARNINGS RELEASE
TABLES
|
CONDENSED
CONSOLIDATED BALANCE SHEET DATA
|
(Unaudited, in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June
30,
|
|
December
31,
|
|
|
|
|
|
2019
|
|
2018
|
Balance Sheet
Data:
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
204.1
|
|
|
$
|
597.3
|
|
|
Inventories
|
2,314.4
|
|
|
1,865.8
|
|
|
Total
assets
|
8,809.7
|
|
|
8,005.4
|
|
|
Total debt
|
2,030.7
|
|
|
1,933.7
|
|
|
|
|
|
|
|
Total
equity
|
3,513.1
|
|
|
3,248.5
|
|
|
Total equity
excluding special items (Note 4, 13)
|
$
|
3,578.0
|
|
|
$
|
3,551.7
|
|
|
|
|
|
|
|
|
|
|
Total debt to
capitalization ratio (Note 13)
|
37%
|
|
|
37%
|
|
|
Total debt to
capitalization ratio, excluding special items (Note 13)
|
36%
|
|
|
35%
|
|
|
Net debt to
capitalization ratio (Note 13)
|
34%
|
|
|
29%
|
|
|
Net debt to
capitalization ratio, excluding special items (Note 13)
|
34%
|
|
|
27%
|
|
|
|
|
|
|
SUMMARIZED
STATEMENT OF CASH FLOW DATA
|
(Unaudited, in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended
June 30,
|
|
|
|
|
|
2019
|
|
2018
|
Cash flows (used in)
provided by operating activities
|
$
|
(27.4)
|
|
|
$
|
307.9
|
|
Cash flows used in
investing activities
|
(501.9)
|
|
|
(365.2)
|
|
Cash flows provided
by (used in) financing activities
|
136.1
|
|
|
(37.4)
|
|
Net decrease in cash
and cash equivalents
|
(393.2)
|
|
|
(94.7)
|
|
Cash and cash
equivalents, beginning of period
|
597.3
|
|
|
573.0
|
|
Cash and cash
equivalents, end of period
|
$
|
204.1
|
|
|
$
|
478.3
|
|
|
|
|
|
|
|
|
|
See Footnotes to
Earnings Release Tables
|
PBF ENERGY INC.
AND SUBSIDIARIES
|
EARNINGS RELEASE
TABLES
|
CONSOLIDATING
FINANCIAL INFORMATION (Note 8)
|
(Unaudited, in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
June 30, 2019
|
|
Refining
|
|
Logistics
|
|
Corporate
|
|
Eliminations
|
|
Consolidated
Total
|
Revenues
|
$
|
6,551.9
|
|
|
$
|
82.8
|
|
|
$
|
—
|
|
|
$
|
(74.7)
|
|
|
$
|
6,560.0
|
|
Depreciation and
amortization expense
|
95.3
|
|
|
8.9
|
|
|
2.9
|
|
|
—
|
|
|
107.1
|
|
Income (loss) from
operations (Note 14, 15)
|
23.7
|
|
|
37.8
|
|
|
(48.8)
|
|
|
(3.2)
|
|
|
9.5
|
|
Interest expense,
net
|
0.9
|
|
|
12.5
|
|
|
28.7
|
|
|
—
|
|
|
42.1
|
|
Capital
expenditures
|
235.9
|
|
|
4.0
|
|
|
1.4
|
|
|
—
|
|
|
241.3
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
June 30, 2018
|
|
Refining
|
|
Logistics
|
|
Corporate
|
|
Eliminations
|
|
Consolidated
Total
|
Revenues
|
$
|
7,439.6
|
|
|
$
|
68.1
|
|
|
$
|
—
|
|
|
$
|
(63.6)
|
|
|
$
|
7,444.1
|
|
Depreciation and
amortization expense
|
82.6
|
|
|
7.1
|
|
|
2.6
|
|
|
—
|
|
|
92.3
|
|
Income (loss) from
operations (Note 15)
|
447.6
|
|
|
33.8
|
|
|
(54.7)
|
|
|
(4.4)
|
|
|
422.3
|
|
Interest expense,
net
|
2.5
|
|
|
10.5
|
|
|
30.4
|
|
|
—
|
|
|
43.4
|
|
Capital
expenditures (Note 17)
|
208.7
|
|
|
61.7
|
|
|
1.5
|
|
|
—
|
|
|
271.9
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended
June 30, 2019
|
|
Refining
|
|
Logistics
|
|
Corporate
|
|
Eliminations
|
|
Consolidated
Total
|
Revenues
|
$
|
11,760.6
|
|
|
$
|
161.6
|
|
|
$
|
—
|
|
|
$
|
(146.0)
|
|
|
$
|
11,776.2
|
|
Depreciation and
amortization expense
|
189.6
|
|
|
17.6
|
|
|
5.7
|
|
|
—
|
|
|
212.9
|
|
Income (loss) from
operations (Note 14, 15)
|
413.2
|
|
|
72.0
|
|
|
(103.2)
|
|
|
(7.9)
|
|
|
374.1
|
|
Interest expense,
net
|
1.4
|
|
|
24.6
|
|
|
55.6
|
|
|
—
|
|
|
81.6
|
|
Capital
expenditures
|
483.0
|
|
|
15.2
|
|
|
3.7
|
|
|
—
|
|
|
501.9
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended
June 30, 2018
|
|
Refining
|
|
Logistics
|
|
Corporate
|
|
Eliminations
|
|
Consolidated
Total
|
Revenues
|
$
|
13,238.7
|
|
|
$
|
132.8
|
|
|
$
|
—
|
|
|
$
|
(124.6)
|
|
|
$
|
13,246.9
|
|
Depreciation and
amortization expense
|
159.3
|
|
|
13.7
|
|
|
5.3
|
|
|
—
|
|
|
178.3
|
|
Income (loss) from
operations (Note 15)
|
574.6
|
|
|
67.7
|
|
|
(115.9)
|
|
|
(8.4)
|
|
|
518.0
|
|
Interest expense,
net
|
4.4
|
|
|
20.4
|
|
|
61.8
|
|
|
—
|
|
|
86.6
|
|
Capital
expenditures (Note 17)
|
297.0
|
|
|
65.7
|
|
|
2.5
|
|
|
—
|
|
|
365.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at June
30, 2019
|
|
Refining
|
|
Logistics
|
|
Corporate
|
|
Eliminations
|
|
Consolidated
Total
|
Total Assets (Note
14)
|
$
|
7,834.5
|
|
|
$
|
959.6
|
|
|
$
|
62.9
|
|
|
$
|
(47.3)
|
|
|
$
|
8,809.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at
December 31, 2018
|
|
Refining
|
|
Logistics
|
|
Corporate
|
|
Eliminations
|
|
Consolidated
Total
|
Total Assets (Note
16)
|
$
|
6,988.0
|
|
|
$
|
956.4
|
|
|
$
|
98.1
|
|
|
$
|
(37.1)
|
|
|
$
|
8,005.4
|
|
|
|
|
|
|
|
|
|
|
|
See Footnotes to
Earnings Release Tables
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PBF ENERGY INC.
AND SUBSIDIARIES
|
EARNINGS RELEASE
TABLES
|
MARKET INDICATORS
AND KEY OPERATING INFORMATION
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
|
|
|
|
|
June
30,
|
|
June
30,
|
Market Indicators
(dollars per barrel) (Note 9)
|
2019
|
|
2018
|
|
2019
|
|
2018
|
Dated Brent crude
oil
|
$
|
68.96
|
|
|
$
|
74.42
|
|
|
$
|
66.16
|
|
|
$
|
70.75
|
|
|
West Texas
Intermediate (WTI) crude oil
|
$
|
59.90
|
|
|
$
|
68.02
|
|
|
$
|
57.42
|
|
|
$
|
65.52
|
|
|
Light Louisiana Sweet
(LLS) crude oil
|
$
|
67.04
|
|
|
$
|
73.14
|
|
|
$
|
64.75
|
|
|
$
|
69.58
|
|
|
Alaska North Slope
(ANS) crude oil
|
$
|
68.29
|
|
|
$
|
73.93
|
|
|
$
|
66.37
|
|
|
$
|
70.64
|
|
|
Crack
Spreads:
|
|
|
|
|
|
|
|
|
Dated Brent (NYH)
2-1-1
|
$
|
13.54
|
|
|
$
|
14.96
|
|
|
$
|
11.72
|
|
|
$
|
13.90
|
|
|
|
WTI (Chicago)
4-3-1
|
$
|
21.10
|
|
|
$
|
17.56
|
|
|
$
|
16.79
|
|
|
$
|
14.74
|
|
|
|
LLS (Gulf Coast)
2-1-1
|
$
|
12.65
|
|
|
$
|
13.52
|
|
|
$
|
11.29
|
|
|
$
|
13.19
|
|
|
|
ANS (West Coast)
4-3-1
|
$
|
22.96
|
|
|
$
|
18.70
|
|
|
$
|
18.33
|
|
|
$
|
17.59
|
|
|
Crude Oil
Differentials:
|
|
|
|
|
|
|
|
|
Dated Brent (foreign)
less WTI
|
$
|
9.06
|
|
|
$
|
6.40
|
|
|
$
|
8.74
|
|
|
$
|
5.23
|
|
|
|
Dated Brent less Maya
(heavy, sour)
|
$
|
7.27
|
|
|
$
|
12.40
|
|
|
$
|
5.69
|
|
|
$
|
10.78
|
|
|
|
Dated Brent less WTS
(sour)
|
$
|
10.73
|
|
|
$
|
14.78
|
|
|
$
|
10.15
|
|
|
$
|
10.20
|
|
|
|
Dated Brent less ASCI
(sour)
|
$
|
3.96
|
|
|
$
|
5.09
|
|
|
$
|
3.17
|
|
|
$
|
4.84
|
|
|
|
WTI less WCS (heavy,
sour)
|
$
|
12.53
|
|
|
$
|
18.26
|
|
|
$
|
11.28
|
|
|
$
|
22.17
|
|
|
|
WTI less Bakken
(light, sweet)
|
$
|
1.06
|
|
|
$
|
0.39
|
|
|
$
|
0.41
|
|
|
$
|
0.70
|
|
|
|
WTI less Syncrude
(light, sweet)
|
$
|
(0.05)
|
|
|
$
|
2.98
|
|
|
$
|
(0.01)
|
|
|
$
|
1.69
|
|
|
|
WTI less LLS (light,
sweet)
|
$
|
(7.14)
|
|
|
$
|
(5.12)
|
|
|
$
|
(7.33)
|
|
|
$
|
(4.06)
|
|
|
|
WTI less ANS (light,
sweet)
|
$
|
(8.39)
|
|
|
$
|
(5.91)
|
|
|
$
|
(8.95)
|
|
|
$
|
(5.12)
|
|
|
Natural gas (dollars
per MMBTU)
|
$
|
2.51
|
|
|
$
|
2.85
|
|
|
$
|
2.69
|
|
|
$
|
2.82
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Key Operating
Information
|
|
|
|
|
|
|
|
Production (barrels
per day ("bpd") in thousands)
|
854.2
|
|
|
866.1
|
|
|
796.7
|
|
|
831.2
|
|
Crude oil and
feedstocks throughput (bpd in thousands)
|
854.1
|
|
|
866.6
|
|
|
798.9
|
|
|
833.3
|
|
Total crude oil and
feedstocks throughput (millions of barrels)
|
77.7
|
|
|
78.8
|
|
|
144.6
|
|
|
150.8
|
|
Consolidated gross
margin per barrel of throughput
|
$
|
0.85
|
|
|
$
|
6.14
|
|
|
$
|
3.40
|
|
|
$
|
4.28
|
|
|
Gross refining
margin, excluding special items, per barrel of
throughput (Note 4, Note 10)
|
$
|
9.10
|
|
|
$
|
9.77
|
|
|
$
|
7.85
|
|
|
$
|
8.57
|
|
|
Refinery operating
expense, per barrel of throughput (Note 11)
|
$
|
5.27
|
|
|
$
|
5.11
|
|
|
$
|
5.97
|
|
|
$
|
5.40
|
|
|
Crude and feedstocks
(% of total throughput) (Note 12)
|
|
|
|
|
|
|
|
|
Heavy
|
30%
|
|
|
38%
|
|
|
31%
|
|
|
37%
|
|
|
|
Medium
|
28%
|
|
|
28%
|
|
|
30%
|
|
|
31%
|
|
|
|
Light
|
26%
|
|
|
21%
|
|
|
25%
|
|
|
20%
|
|
|
|
Other feedstocks and
blends
|
16%
|
|
|
13%
|
|
|
14%
|
|
|
12%
|
|
|
|
|
Total
throughput
|
100%
|
|
|
100%
|
|
|
100%
|
|
|
100%
|
|
|
Yield (% of total
throughput)
|
|
|
|
|
|
|
|
|
Gasoline and gasoline
blendstocks
|
49%
|
|
|
48%
|
|
|
48%
|
|
|
49%
|
|
|
|
Distillates and
distillate blendstocks
|
31%
|
|
|
32%
|
|
|
32%
|
|
|
32%
|
|
|
|
Lubes
|
1%
|
|
|
1%
|
|
|
1%
|
|
|
1%
|
|
|
|
Chemicals
|
2%
|
|
|
2%
|
|
|
2%
|
|
|
2%
|
|
|
|
Other
|
17%
|
|
|
17%
|
|
|
17%
|
|
|
16%
|
|
|
|
|
Total
yield
|
100%
|
|
|
100%
|
|
|
100%
|
|
|
100%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See Footnotes to
Earnings Release Tables
|
PBF ENERGY INC.
AND SUBSIDIARIES
|
EARNINGS RELEASE
TABLES
|
SUPPLEMENTAL
OPERATING INFORMATION
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
|
|
|
|
|
June
30,
|
|
June
30,
|
|
|
|
|
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
Supplemental
Operating Information - East Coast
(Delaware City and Paulsboro)
|
|
|
|
|
|
|
|
Production (bpd in
thousands)
|
321.1
|
|
|
357.1
|
|
|
309.5
|
|
|
342.5
|
|
Crude oil and
feedstocks throughput (bpd in thousands)
|
325.8
|
|
|
359.9
|
|
|
315.5
|
|
|
346.5
|
|
Total crude oil and
feedstocks throughput (millions of barrels)
|
29.6
|
|
|
32.7
|
|
|
57.1
|
|
|
62.7
|
|
Gross margin per
barrel of throughput
|
$
|
(3.56)
|
|
|
$
|
3.39
|
|
|
$
|
(1.29)
|
|
|
$
|
2.36
|
|
Gross refining
margin, excluding special items, per barrel of
throughput (Note 4, Note 10)
|
$
|
4.18
|
|
|
$
|
7.17
|
|
|
$
|
3.78
|
|
|
$
|
6.84
|
|
Refinery operating
expense, per barrel of throughput (Note 11)
|
$
|
4.91
|
|
|
$
|
4.34
|
|
|
$
|
5.61
|
|
|
$
|
4.73
|
|
Crude and feedstocks
(% of total throughput) (Note 12):
|
|
|
|
|
|
|
|
|
Heavy
|
18%
|
|
|
30%
|
|
|
22%
|
|
|
27%
|
|
|
Medium
|
42%
|
|
|
47%
|
|
|
46%
|
|
|
49%
|
|
|
Light
|
17%
|
|
|
4%
|
|
|
11%
|
|
|
7%
|
|
|
Other feedstocks and
blends
|
23%
|
|
|
19%
|
|
|
21%
|
|
|
17%
|
|
|
|
Total
throughput
|
100%
|
|
|
100%
|
|
|
100%
|
|
|
100%
|
|
Yield (% of total
throughput):
|
|
|
|
|
|
|
|
|
Gasoline and gasoline
blendstocks
|
44%
|
|
|
45%
|
|
|
44%
|
|
|
46%
|
|
|
Distillates and
distillate blendstocks
|
29%
|
|
|
33%
|
|
|
30%
|
|
|
33%
|
|
|
Lubes
|
2%
|
|
|
2%
|
|
|
2%
|
|
|
2%
|
|
|
Chemicals
|
1%
|
|
|
1%
|
|
|
1%
|
|
|
1%
|
|
|
Other
|
23%
|
|
|
18%
|
|
|
21%
|
|
|
17%
|
|
|
|
Total
yield
|
99%
|
|
|
99%
|
|
|
98%
|
|
|
99%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental
Operating Information - Mid-Continent
(Toledo)
|
|
|
|
|
|
|
|
Production (bpd in
thousands)
|
166.0
|
|
|
154.7
|
|
|
158.1
|
|
|
139.1
|
|
Crude oil and
feedstocks throughput (bpd in thousands)
|
163.2
|
|
|
152.9
|
|
|
155.6
|
|
|
138.0
|
|
Total crude oil and
feedstocks throughput (millions of barrels)
|
14.9
|
|
|
13.9
|
|
|
28.2
|
|
|
25.0
|
|
Gross margin per
barrel of throughput
|
$
|
5.82
|
|
|
$
|
9.61
|
|
|
$
|
10.26
|
|
|
$
|
5.41
|
|
Gross refining
margin, excluding special items, per barrel of
throughput (Note 4, Note 10)
|
$
|
14.87
|
|
|
$
|
12.63
|
|
|
$
|
13.65
|
|
|
$
|
10.68
|
|
Refinery operating
expense, per barrel of throughput (Note 11)
|
$
|
4.80
|
|
|
$
|
4.93
|
|
|
$
|
5.16
|
|
|
$
|
5.49
|
|
Crude and feedstocks
(% of total throughput) (Note 12):
|
|
|
|
|
|
|
|
|
Medium
|
30%
|
|
|
34%
|
|
|
29%
|
|
|
36%
|
|
|
Light
|
69%
|
|
|
64%
|
|
|
70%
|
|
|
63%
|
|
|
Other feedstocks and
blends
|
1%
|
|
|
2%
|
|
|
1%
|
|
|
1%
|
|
|
|
Total
throughput
|
100%
|
|
|
100%
|
|
|
100%
|
|
|
100%
|
|
Yield (% of total
throughput):
|
|
|
|
|
|
|
|
|
Gasoline and gasoline
blendstocks
|
50%
|
|
|
50%
|
|
|
51%
|
|
|
55%
|
|
|
Distillates and
distillate blendstocks
|
36%
|
|
|
36%
|
|
|
36%
|
|
|
33%
|
|
|
Chemicals
|
5%
|
|
|
5%
|
|
|
6%
|
|
|
5%
|
|
|
Other
|
11%
|
|
|
10%
|
|
|
9%
|
|
|
8%
|
|
|
|
Total
yield
|
102%
|
|
|
101%
|
|
|
102%
|
|
|
101%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See Footnotes to
Earnings Release Tables
|
PBF ENERGY INC.
AND SUBSIDIARIES
|
EARNINGS RELEASE
TABLES
|
SUPPLEMENTAL
OPERATING INFORMATION
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
|
|
|
|
|
June
30,
|
|
June
30,
|
|
|
|
|
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
Supplemental
Operating Information - Gulf Coast
(Chalmette)
|
|
|
|
|
|
|
|
Production (bpd in
thousands)
|
197.5
|
|
|
190.0
|
|
|
181.2
|
|
|
176.9
|
|
Crude oil and
feedstocks throughput (bpd in thousands)
|
201.4
|
|
|
188.5
|
|
|
183.1
|
|
|
178.9
|
|
Total crude oil and
feedstocks throughput (millions of barrels)
|
18.3
|
|
|
17.2
|
|
|
33.1
|
|
|
32.4
|
|
Gross margin per
barrel of throughput
|
$
|
(1.60)
|
|
|
$
|
5.30
|
|
|
$
|
1.12
|
|
|
$
|
2.83
|
|
Gross refining
margin, excluding special items, per barrel of
throughput (Note 4, Note 10)
|
$
|
5.61
|
|
|
$
|
7.92
|
|
|
$
|
4.59
|
|
|
$
|
6.29
|
|
Refinery operating
expense, per barrel of throughput (Note 11)
|
$
|
4.15
|
|
|
$
|
4.65
|
|
|
$
|
4.93
|
|
|
$
|
4.82
|
|
Crude and feedstocks
(% of total throughput) (Note 12):
|
|
|
|
|
|
|
|
|
Heavy
|
32%
|
|
|
42%
|
|
|
33%
|
|
|
42%
|
|
|
Medium
|
23%
|
|
|
13%
|
|
|
20%
|
|
|
16%
|
|
|
Light
|
26%
|
|
|
30%
|
|
|
31%
|
|
|
31%
|
|
|
Other feedstocks and
blends
|
19%
|
|
|
15%
|
|
|
16%
|
|
|
11%
|
|
|
|
Total
throughput
|
100%
|
|
|
100%
|
|
|
100%
|
|
|
100%
|
|
Yield (% of total
throughput):
|
|
|
|
|
|
|
|
|
Gasoline and gasoline
blendstocks
|
46%
|
|
|
43%
|
|
|
43%
|
|
|
42%
|
|
|
Distillates and
distillate blendstocks
|
32%
|
|
|
32%
|
|
|
33%
|
|
|
32%
|
|
|
Chemicals
|
2%
|
|
|
2%
|
|
|
2%
|
|
|
1%
|
|
|
Other
|
18%
|
|
|
24%
|
|
|
21%
|
|
|
24%
|
|
|
|
Total
yield
|
98%
|
|
|
101%
|
|
|
99%
|
|
|
99%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental
Operating Information - West Coast
(Torrance)
|
|
|
|
|
|
|
|
Production (bpd in
thousands)
|
169.6
|
|
|
164.3
|
|
|
147.9
|
|
|
172.7
|
|
Crude oil and
feedstocks throughput (bpd in thousands)
|
163.7
|
|
|
165.3
|
|
|
144.7
|
|
|
169.9
|
|
Total crude oil and
feedstocks throughput (millions of barrels)
|
14.9
|
|
|
15.0
|
|
|
26.2
|
|
|
30.7
|
|
Gross margin per
barrel of throughput
|
$
|
4.69
|
|
|
$
|
7.12
|
|
|
$
|
5.87
|
|
|
$
|
6.17
|
|
Gross refining
margin, excluding special items, per barrel of
throughput (Note 4, Note 10)
|
$
|
17.51
|
|
|
$
|
14.88
|
|
|
$
|
14.60
|
|
|
$
|
12.80
|
|
Refinery operating
expense, per barrel of throughput (Note 11)
|
$
|
7.84
|
|
|
$
|
7.46
|
|
|
$
|
8.94
|
|
|
$
|
7.29
|
|
Crude and feedstocks
(% of total throughput) (Note 12):
|
|
|
|
|
|
|
|
|
Heavy
|
79%
|
|
|
82%
|
|
|
81%
|
|
|
81%
|
|
|
Medium
|
8%
|
|
|
7%
|
|
|
8%
|
|
|
6%
|
|
|
Other feedstocks and
blends
|
13%
|
|
|
11%
|
|
|
11%
|
|
|
13%
|
|
|
|
Total
throughput
|
100%
|
|
|
100%
|
|
|
100%
|
|
|
100%
|
|
Yield (% of total
throughput):
|
|
|
|
|
|
|
|
|
Gasoline and gasoline
blendstocks
|
60%
|
|
|
57%
|
|
|
57%
|
|
|
59%
|
|
|
Distillates and
distillate blendstocks
|
27%
|
|
|
27%
|
|
|
26%
|
|
|
27%
|
|
|
Other
|
17%
|
|
|
15%
|
|
|
19%
|
|
|
16%
|
|
|
|
Total
yield
|
104%
|
|
|
99%
|
|
|
102%
|
|
|
102%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See Footnotes to
Earnings Release Tables
|
PBF ENERGY INC.
AND SUBSIDIARIES
|
RECONCILIATION OF
AMOUNTS REPORTED UNDER U.S. GAAP
|
GROSS REFINING
MARGIN / GROSS REFINING MARGIN PER BARREL OF THROUGHPUT (Note
10)
|
(Unaudited, in
millions, except per barrel amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
|
|
|
|
|
|
June 30,
2019
|
|
June 30,
2018
|
RECONCILIATION OF
CONSOLIDATED GROSS
MARGIN TO GROSS REFINING MARGIN AND GROSS
REFINING MARGIN EXCLUDING SPECIAL ITEMS
|
$
|
|
per barrel of
throughput
|
|
$
|
|
per barrel of
throughput
|
Calculation of
consolidated gross margin:
|
|
|
|
|
|
|
|
Revenues
|
$
|
6,560.0
|
|
|
$
|
84.40
|
|
|
$
|
7,444.1
|
|
|
$
|
94.40
|
|
Less: Cost of
products and other
|
6,493.2
|
|
|
83.55
|
|
|
6,959.9
|
|
|
88.26
|
|
Consolidated gross
margin
|
$
|
66.8
|
|
|
$
|
0.85
|
|
|
$
|
484.2
|
|
|
$
|
6.14
|
|
Reconciliation of
consolidated gross margin to gross refining
margin:
|
|
|
|
|
|
|
|
Consolidated gross
margin
|
$
|
66.8
|
|
|
$
|
0.85
|
|
|
$
|
484.2
|
|
|
$
|
6.14
|
|
|
Add: PBFX operating
expense
|
28.6
|
|
|
0.37
|
|
|
19.1
|
|
|
0.24
|
|
|
Add: PBFX
depreciation expense
|
8.9
|
|
|
0.11
|
|
|
6.9
|
|
|
0.08
|
|
|
Less: Revenues of
PBFX
|
(82.8)
|
|
|
(1.07)
|
|
|
(67.4)
|
|
|
(0.85)
|
|
|
Add: Refinery
operating expense
|
409.7
|
|
|
5.27
|
|
|
402.7
|
|
|
5.11
|
|
|
Add: Refinery
depreciation expense
|
95.3
|
|
|
1.23
|
|
|
82.8
|
|
|
1.05
|
|
Gross refining
margin
|
$
|
526.5
|
|
|
$
|
6.76
|
|
|
$
|
928.3
|
|
|
$
|
11.77
|
|
Special
Items (Note 4):
|
|
|
|
|
|
|
|
|
Add: Non-cash LCM
inventory adjustment
|
182.0
|
|
|
2.34
|
|
|
(158.0)
|
|
|
(2.00)
|
|
Gross refining
margin excluding special items
|
$
|
708.5
|
|
|
$
|
9.10
|
|
|
$
|
770.3
|
|
|
$
|
9.77
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months
Ended
|
|
Six Months
Ended
|
|
|
|
|
|
|
|
June 30,
2019
|
|
June 30,
2018
|
RECONCILIATION OF
CONSOLIDATED GROSS
MARGIN TO GROSS REFINING MARGIN AND GROSS
REFINING MARGIN EXCLUDING SPECIAL ITEMS
|
$
|
|
per barrel of
throughput
|
|
$
|
|
per barrel of
throughput
|
Calculation of
consolidated gross margin:
|
|
|
|
|
|
|
|
Revenues
|
$
|
11,776.2
|
|
|
$
|
81.44
|
|
|
$
|
13,246.9
|
|
|
$
|
87.83
|
|
Less: Cost of
products and other
|
11,284.4
|
|
|
78.04
|
|
|
12,601.4
|
|
|
83.55
|
|
Consolidated gross
margin
|
$
|
491.8
|
|
|
$
|
3.40
|
|
|
$
|
645.5
|
|
|
$
|
4.28
|
|
Reconciliation of
consolidated gross margin to gross refining
margin:
|
|
|
|
|
|
|
|
Consolidated gross
margin
|
$
|
491.8
|
|
|
$
|
3.40
|
|
|
$
|
645.5
|
|
|
$
|
4.28
|
|
|
Add: PBFX operating
expense
|
58.5
|
|
|
0.40
|
|
|
37.1
|
|
|
0.25
|
|
|
Add: PBFX
depreciation expense
|
17.6
|
|
|
0.12
|
|
|
13.4
|
|
|
0.09
|
|
|
Less: Revenues of
PBFX
|
(161.6)
|
|
|
(1.12)
|
)
|
|
(131.4)
|
|
|
(0.87)
|
|
|
Add: Refinery
operating expense
|
863.1
|
|
|
5.97
|
|
|
814.1
|
|
|
5.40
|
|
|
Add: Refinery
depreciation expense
|
189.6
|
|
|
1.31
|
|
|
159.6
|
|
|
1.05
|
|
Gross refining
margin
|
$
|
1,459.0
|
|
|
$
|
10.08
|
|
|
$
|
1,538.3
|
|
|
$
|
10.20
|
|
Special
Items (Note 4):
|
|
|
|
|
|
|
|
|
Add: Non-cash LCM
inventory adjustment
|
(324.0)
|
|
|
(2.23)
|
|
|
(245.7)
|
|
|
(1.63)
|
|
Gross refining
margin excluding special items
|
$
|
1,135.0
|
|
|
$
|
7.85
|
|
|
$
|
1,292.6
|
|
|
$
|
8.57
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See Footnotes to
Earnings Release Tables
|
PBF ENERGY INC.
AND SUBSIDIARIES
|
EARNINGS RELEASE
TABLES
|
FOOTNOTES TO
EARNINGS RELEASE TABLES
|
|
(1) Adjusted
fully-converted information is presented in this table as
management believes that these Non-GAAP measures, when presented in
conjunction with comparable GAAP measures, are useful to investors
to compare our results across the periods presented and facilitates
an understanding of our operating results. We also use these
measures to evaluate our operating performance. These measures
should not be considered a substitute for, or superior to, measures
of financial performance prepared in accordance with GAAP. The
differences between adjusted fully-converted and GAAP results are
explained in footnotes 2 through 6.
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|
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|
|
|
|
|
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|
|
|
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|
|
|
|
(2) Represents the
elimination of the noncontrolling interest associated with the
ownership by the members of PBF Energy Company LLC ("PBF LLC")
other than PBF Energy Inc., as if such members had fully exchanged
their PBF LLC Series A Units for shares of PBF Energy's Class A
common stock.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(3) Represents an
adjustment to reflect our estimated annualized statutory corporate
tax rate of approximately 26.5% and 26.4% for the 2019 and 2018
periods, respectively, applied to net income attributable to
noncontrolling interests for all periods presented. The adjustment
assumes the full exchange of existing PBF LLC Series A Units as
described in footnote 2.
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|
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|
|
|
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|
|
(4) The Non-GAAP
measures presented include adjusted fully-converted net income
(loss) excluding special items, income (loss) from operations
excluding special items, EBITDA excluding special items and gross
refining margin excluding special items. Special items presented
for the three and six months ended June 30, 2019 and 2018 relate to
a lower of cost or market ("LCM") inventory adjustment, as
discussed further below. Additionally, the cumulative effects of
all prior period special items on equity are shown in footnote
13.
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.
Special Items:
LCM inventory adjustment - LCM is a GAAP requirement
related to inventory valuation that mandates inventory to be stated
at the lower of cost or market. Our inventories are stated at the
lower of cost or market. Cost is determined using last-in,
first-out ("LIFO") inventory valuation methodology, in which the
most recently incurred costs are charged to cost of sales and
inventories are valued at base layer acquisition costs. Market is
determined based on an assessment of the current estimated
replacement cost and net realizable selling price of the inventory.
In periods where the market price of our inventory declines
substantially, cost values of inventory may exceed market values.
In such instances, we record an adjustment to write down the value
of inventory to market value in accordance with GAAP. In subsequent
periods, the value of inventory is reassessed and an LCM inventory
adjustment is recorded to reflect the net change in the LCM
inventory reserve between the prior period and the current
period.
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|
|
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|
|
|
|
|
|
|
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|
|
The following table
includes the LCM inventory reserve as of each date presented (in
millions):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2019
|
|
2018
|
January 1,
|
|
|
|
|
$
|
651.8
|
|
|
$
|
300.5
|
|
March 31,
|
|
|
|
|
145.8
|
|
|
212.8
|
|
June 30,
|
|
|
|
|
327.8
|
|
|
54.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The following table
includes the corresponding impact of changes in the LCM inventory
reserve on income from operations and net income (loss) for the
periods presented (in millions):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
June 30,
|
|
Six Months
Ended
June 30,
|
|
|
|
|
|
|
|
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
Net LCM inventory
adjustment (charge)
benefit in income from operations
|
$
|
(182.0)
|
|
|
$
|
158.0
|
|
|
$
|
324.0
|
|
|
$
|
245.7
|
|
Net LCM inventory
adjustment (charge)
benefit in net income (loss)
|
(133.8)
|
|
|
116.3
|
|
|
238.3
|
|
|
180.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(5) Represents an
adjustment to weighted-average diluted shares outstanding to assume
the full exchange of existing PBF LLC Series A Units as described
in footnote 2 above.
|
|
(6) Represents
weighted-average diluted shares outstanding assuming the conversion
of all common stock equivalents, including options and warrants for
PBF LLC Series A Units and performance share units and options for
shares of PBF Energy Class A common stock as calculated under the
treasury stock method (to the extent the impact of such exchange
would not be anti-dilutive) for the three and six months ended
June 30, 2019 and 2018, respectively. Common stock equivalents
exclude the effects of options, warrants and performance share
units to purchase 6,833,973 and 6,012,867 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,
2019, respectively. Common stock equivalents exclude the effects of
options and warrants to purchase 12,500 and 233,250 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, 2018, respectively. For periods showing a net loss,
all common stock equivalents and unvested restricted stock are
considered anti-dilutive.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(7) EBITDA (Earnings
before Interest, Income Taxes, Depreciation and Amortization) and
Adjusted EBITDA are supplemental measures of performance that are
not required by, or presented in accordance with GAAP. Adjusted
EBITDA is defined as EBITDA before adjustments for items such as
stock-based compensation expense, the non-cash change in the fair
value of catalyst leases, the write down of inventory to the LCM,
changes in the liability for Tax Receivable Agreement due to
factors out of our control such as changes in tax rates, debt
extinguishment costs related to refinancing activities, and certain
other non-cash items. We use these Non-GAAP financial measures as a
supplement to our GAAP results in order to provide additional
metrics on factors and trends affecting our business. EBITDA and
Adjusted EBITDA are measures of operating performance that are not
defined by GAAP and should not be considered substitutes for net
income as determined in accordance with GAAP. In addition, because
EBITDA and Adjusted EBITDA are not calculated in the same manner by
all companies, they are not necessarily comparable to other
similarly titled measures used by other companies. EBITDA and
Adjusted EBITDA have their limitations as an analytical tool, and
you should not consider them in isolation or as substitutes for
analysis of our results as reported under GAAP.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(8) We operate in two
reportable segments: Refining and Logistics. Our operations that
are not included in the Refining and Logistics segments are
included in Corporate. As of June 30, 2019, the Refining segment
includes the operations of our oil refineries and related
facilities in Delaware City, Delaware, Paulsboro, New Jersey,
Toledo, Ohio, New Orleans, Louisiana and Torrance, California. The
Logistics segment includes the operations of PBF Logistics LP
("PBFX"), a growth-oriented master limited partnership which owns
or leases, operates, develops and acquires crude oil and refined
petroleum products terminals, pipelines, storage facilities and
similar logistics assets. PBFX's assets primarily consist of rail
and truck terminals and unloading racks, storage facilities and
pipelines, a substantial portion of which were acquired from or
contributed by PBF LLC and are located at, or nearby, our
refineries. PBFX provides various rail, truck and marine
terminaling services, pipeline transportation services and storage
services to PBF Holding and/or its subsidiaries and third party
customers through fee-based commercial agreements.
PBFX currently does
not generate significant third party revenue and intersegment
related-party revenues are eliminated in consolidation. From a PBF
Energy perspective, our chief operating decision maker evaluates
the Logistics segment as a whole without regard to any of PBFX's
individual operating segments.
|
|
(9) As reported by
Platts.
|
|
(10)
Gross refining margin and gross refining margin per barrel of
throughput are Non-GAAP measures because they exclude refinery
operating expenses, depreciation and amortization and gross margin
of PBFX. Gross refining margin per barrel is gross refining margin,
divided by total crude and feedstocks throughput. We believe they
are important measures of operating performance and provide useful
information to investors because gross refining margin per barrel
is a helpful metric comparison to the industry refining margin
benchmarks shown in the Market Indicators Tables, as the industry
benchmarks do not include a charge for refinery operating expenses
and depreciation. Other companies in our industry may not calculate
gross refining margin and gross refining margin per barrel in the
same manner. Gross refining margin and gross refining margin per
barrel of throughput have their limitations as an analytical tool,
and you should not consider them in isolation or as substitutes for
analysis of our results as reported under GAAP.
|
|
(11) Represents
refinery operating expenses, including corporate-owned logistics
assets, excluding depreciation and amortization, divided by total
crude oil and feedstocks throughput.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(12) We define heavy
crude oil as crude oil with American Petroleum Institute (API)
gravity less than 24 degrees. We define medium crude oil as crude
oil with API gravity between 24 and 35 degrees. We define light
crude oil as crude oil with API gravity higher than 35
degrees.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(13) The total debt
to capitalization ratio is calculated by dividing total debt by the
sum of total debt and total equity. This ratio is a measurement
that management believes is useful to investors in analyzing our
leverage. Net debt and the net debt to capitalization ratio are
Non-GAAP measures. Net debt is calculated by subtracting cash and
cash equivalents from total debt. We believe these measurements are
also useful to investors since we have the ability to and may
decide to use a portion of our cash and cash equivalents to retire
or pay down our debt. Additionally, we have also presented the
total debt to capitalization and net debt to capitalization ratios
excluding the cumulative effects of special items on
equity.
|
|
|
|
|
|
|
|
|
|
|
|
June
30,
|
|
December
31,
|
|
|
|
|
2019
|
|
2018
|
|
|
(in
millions)
|
Total debt
|
$
|
2,030.7
|
|
|
$
|
1,933.7
|
|
Total
equity
|
3,513.1
|
|
|
3,248.5
|
|
Total
capitalization
|
$
|
5,543.8
|
|
|
$
|
5,182.2
|
|
|
|
|
|
Total debt
|
$
|
2,030.7
|
|
|
$
|
1,933.7
|
|
Total equity
excluding special items
|
3,578.0
|
|
|
3,551.7
|
|
Total capitalization
excluding special items
|
$
|
5,608.7
|
|
|
$
|
5,485.4
|
|
|
|
|
|
Total
equity
|
$
|
3,513.1
|
|
|
$
|
3,248.5
|
|
Special Items
(Note 4)
|
|
|
|
Add: Non-cash LCM inventory adjustment
|
327.8
|
|
|
651.8
|
|
Add: Change in Tax Receivable Agreement liability
|
(290.4)
|
|
|
(290.4)
|
|
Add: Debt extinguishment costs
|
25.5
|
|
|
25.5
|
|
Add: Gain on Torrance land sale
|
(43.8)
|
|
|
(43.8)
|
|
Add: Early railcar return expense
|
52.3
|
|
|
52.3
|
|
Less: Recomputed income taxes on special items
|
(26.7)
|
|
|
(112.4)
|
|
Add: Net tax expense on TCJA related special items
|
20.2
|
|
|
20.2
|
|
Net impact of
special items to equity
|
64.9
|
|
|
303.2
|
|
Total equity
excluding special items
|
$
|
3,578.0
|
|
|
$
|
3,551.7
|
|
|
|
|
|
|
|
|
Total debt
|
$
|
2,030.7
|
|
|
$
|
1,933.7
|
|
Less: Cash and cash equivalents
|
204.1
|
|
|
597.3
|
|
Net Debt
|
|
|
|
$
|
1,826.6
|
|
|
$
|
1,336.4
|
|
|
|
|
|
|
|
|
Total debt to
capitalization ratio
|
37%
|
|
|
37%
|
|
Total debt to
capitalization ratio, excluding special items
|
36%
|
|
|
35%
|
|
Net debt to
capitalization ratio
|
34%
|
|
|
29%
|
|
Net debt to
capitalization ratio, excluding special items
|
34%
|
|
|
27%
|
|
|
|
(14) On April 24,
2019, PBFX entered into the TVPC Contribution Agreement, pursuant
to which PBF LLC contributed to PBFX all of the issued and
outstanding limited liability company interests of TVP Holding
Company LLC ("TVP Holding"). Prior to the TVPC Acquisition, TVP
Holding owned a 50% membership interest in TVPC. Subsequent to the
closing of the TVPC Acquisition on May 31, 2019, PBFX owns 100% of
the membership interest in TVPC.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(15) Prior to the
TVPC Contribution Agreement, the Logistics segment included 100% of
the income from operations of TVPC, as TVPC was consolidated by
PBFX. PBFX recorded net income attributable to noncontrolling
interest for the 50% equity interest in TVPC held by PBF Holding.
PBF Holding (included in the Refining segment) recorded equity
income in investee related to its 50% noncontrolling ownership
interest in TVPC. For purposes of our Condensed Consolidated
Financial Statements, PBF Holding's equity income in investee and
PBFX's net income attributable to noncontrolling interests
eliminated in consolidation.
|
|
(16) Prior to the
TVPC Contribution Agreement, the Logistics segment included 100% of
the assets of TVPC, as TVPC was consolidated by PBFX. PBFX recorded
a noncontrolling interest for the 50% equity interest in TVPC held
by PBF Holding. PBF Holding (included in the Refining segment)
recorded an equity investment in TVPC reflecting its noncontrolling
ownership interest. For purposes of our Condensed Consolidated
Financial Statements, PBFX's noncontrolling interest in TVPC and
PBF Holding's equity investment in TVPC eliminated in
consolidation.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(17) The Logistics
segment includes capital expenditures of $58.0
million for the acquisition of the Knoxville Terminals by PBFX
on April 16, 2018.
|
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SOURCE PBF Energy Inc.